Subsequent Events |
6 Months Ended |
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Jun. 30, 2022 | |
| Subsequent Events [Abstract] | |
| Subsequent Events | Subsequent Events On July 29, 2022, the Company entered into a license agreement with Apollo pursuant to which the Company: (i) granted to Apollo a worldwide, exclusive license granting rights to Apollo to research, develop, manufacture and commercialize AVTX-007 (the “Apollo License Agreement”) and (ii) entered into a novation agreement, dated July 29, 2022, pursuant to which the MedImmune license, dated August 6, 2019, between the Company and MedImmune, was replaced by a substantially similar novated license agreement between Apollo and MedImmune.
In August 2022, the Company received $5 million as an upfront fee and an additional approximate $10 million as partial consideration for transition, consulting and transfer activities. The Company is also eligible to receive up to $6.25 million in regulatory or development milestones and up to $67.5 million in milestones based on annual global net sales of products licensed under the Apollo License Agreement. Additionally, the Company is entitled to a royalty payment of a low single digit percentage of annual net sales,
which percentage increases to another low single digit percentage if annual net sales exceed a specified amount, subject to certain adjustments.
Pursuant to the terms of the Apollo License Agreement, Apollo will assume responsibility for future development of AVTX-007, including the ongoing clinical trial of AVTX-007 for the treatment of adult-onset Still’s disease. The Company will also assign certain AVTX-007 related contracts and other assets to Apollo. The Company will evaluate the accounting impact of the transaction in the third quarter of 2022.
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