Annual report pursuant to Section 13 and 15(d)

Deferred Research And Development Arrangement

Deferred Research And Development Arrangement
12 Months Ended
Dec. 31, 2017
Deferred Research And Development Arrangement [Abstract]  
Deferred Research And Development Arrangement

7.  Deferred Research and Development Arrangements

Rexgene Biotech Co., Ltd.

In 2003, the Company entered into a collaborative research agreement with Rexgene Biotech Co., Ltd. (“Rexgene”), a stockholder, pursuant to which Rexgene agreed to assist the Company with the research, development and clinical trials necessary for registration of the Company’s drug candidate RX-0201 (Archexin®) in Asia. In accordance with the agreement, Rexgene paid the Company a one-time fee of $1,500,000 in 2003.  The agreement provided that it would expire upon the later of (i) 20 years after the date of the agreement or (ii) the expiration of the patents relating to RX-0201.  The amortization reduces research and development expenses for the periods presented. 

The Company is using 20 years as its basis for recognition and accordingly research and development expenses were reduced by $75,000 for each of the years ended December 31, 2017, 2016 and 2015.  The remaining $375,000 and $450,000 to be amortized at December 31, 2017 and 2016, respectively, are reflected as a deferred research and development arrangement on the balance sheet.  The payment from Rexgene is being used in the cooperative funding of the costs of development of RX-0201. 

On February 5, 2018, the Company and NEXT BT Co. Ltd., the successor in interest to Rexgene, terminated the agreement.