Collaborative Agreements

3 Months Ended

Mar. 31, 2017

Collaborative Agreements [Abstract]

Collaborative Agreements

10. Collaborative Agreements

In June 2013, the Company entered into a Collaborative Research and Development Agreement with the United States Army Medical Research and Materiel Command and the Walter Reed Army Institute of Research. The Collaborative Research and Development Agreement is focused on developing and commercializing bacteriophage therapeutics to treat S. aureus infections. During the three months ended March 31, 2017 and 2016, the Company incurred no expense related to the Walter Reed Army Institute of Research under the Collaborative Research and Development Agreement.

In 2013, the Company entered into collaboration agreements with the University of Leicester and the University of Glasgow. Under these agreements, which are referred to collectively as the Leicester Development Agreements, the Company provided payments to carry out research on the University of Leicester’s development of a bacteriophage therapeutic to resolve C. difficile infections.  During the three months ended March 31, 2017 and 2016, the Company recorded $97,000 and $43,000 respectively, in research and development expenses related to the University of Leicester under the Leicester Development Agreements. During the three months ended March 31, 2017 and 2016, the Company recognized no expense related to the University of Glasgow under the Leicester Development Agreements.

In March 2017, the Company provided the required 180 days’ notice to terminate the Leicester Development Agreement.In April 2017, the University of Leicester provided the Company with notice that it intends to terminate the license agreement as a result of its determination that the Company has not continued to make substantial commercial progress in relation to the technology licensed to the Company under the agreement.  Under the license agreement, the Company has the right to enter in good faith discussion with the University of Leicester to identify feasible next steps to remedy the perceived lack of commercial progress prior to a termination of the license agreement on such basis.  The licensed rights relate to bacteriophage therapeutic products for the treatment of C. difficile.