|ARRAY BIOPHARMA INC filed this Form 10-Q on 05/10/2017|
Collaboration and Other Revenue
Collaboration and other revenue consists of revenue for our performance of drug discovery and development activities in collaboration with partners, which includes development of proprietary drug candidates we out-license, as well as screening, lead generation, and lead optimization research.
Collaboration and other revenue was relatively consistent for the periods presented above, with approximately $5.5 million and $5.2 million for the three months ended March 31, 2017 and 2016, respectively, and approximately $17.8 million and $18.8 million for the nine months ended March 31, 2017 and 2016, respectively. Collaboration and other revenue was down slightly in the nine months ended March 31, 2017 compared with the prior year period mainly due to the conclusion of our collaborations with Biogen and Celgene during fiscal 2016 as well as decreased FTE revenue from our collaboration with Loxo, offset by new revenue under our collaborations with Pierre Fabre and Asahi Kasei.
Collaboration and other revenue also includes $450 thousand and $900 thousand for the three months ended March 31, 2017 and 2016, respectively, and $1.4 million and $2.7 million for the nine months ended March 31, 2017 and 2016, respectively, for recognition of the amortized portion of the upfront payment received from Novartis upon the effective date of the Binimetinib Agreement in March 2015 that was deferred. We are recording this revenue over a 28-month deferral period, which is the estimated number of months we expect will be required to materially complete our performance with respect to the applicable clinical trials under the Novartis Agreements. The remaining balance of this deferred revenue was $450 thousand at March 31, 2017.
License and Milestone Revenue
License and milestone revenue consists of upfront license fees and ongoing milestone payments from partners and collaborators.
License and milestone revenue was $1.7 million and $0.9 million for the three months ended March 31, 2017 and 2016, respectively, and $13.9 million and $2.0 million, for the nine months ended March 31, 2017 and 2016, respectively.
The increase in license and milestone revenue during the nine-month period was largely attributable to two milestone payments that were earned in the second quarter of fiscal 2017. We earned and recognized a $6.0 million milestone from Loxo for the advancement of LOXO-101, a PanTrk inhibitor for cancer, and as well as a $2.5 million milestone from Roche for the advancement of danoprevir, the NS3/4A protease inhibitor for Hepatitis C, during the quarter ended December 31, 2016. Additionally, we recognized license and milestone revenue for the three and nine months ended March 31, 2017 related to license payments which were previously received from Pierre Fabre and Asahi Kasei. We recognized approximately $0.8 million and $2.3 million from Pierre Fabre during the three- and nine- month periods ended March 31, 2017, respectively . We recognized approximately $0.6 million and $1.8 million in revenue from Asahi Kasei during the three- and nine-month periods ended March 31, 2017, respectively.
Below is a summary of our total operating expenses (dollars in thousands):