Contract Revenue - Related Party (Notes)

12 Months Ended

Dec. 31, 2017

Related Party Transactions [Abstract]

Contract Revenue - Related Party

Contract Revenue - Related Party

During the year ended December 31, 2015, the Company entered into a services agreement with a related party. Pursuant to the services agreement, the Company provides certain services to this related party, including, but not limited to, research and development and clinical study design and management for projects undertaken. In exchange for providing such services, the Company receives payments at a negotiated, arms-length rate. As a result, the consideration received by the Company for its services is considered to be no less favorable to the Company than comparable terms that the Company could

obtain from an unaffiliated third party in an arms-length transaction. The services agreement may be canceled by either party upon 60-days’ written notice to the other party.

The Company had no contract revenue during the year ended December 31, 2017. During the years ended December 31, 2016 and 2015, the Company recognized approximately $0.6 million and $1.1 million of contract revenue for services and costs provided under the services agreement, respectively.

In addition, the Company has a non-voting profit interest in the related party, which provides the Company with the potential to receive a portion of the future distributions of profits, if any. Investment funds affiliated with the Chairman of the Company’s board of directors have a controlling interest in, and the Company’s Chief Executive Officer (CEO) has a non-voting profit interest in, the related party.