Intangible Asset Licenses
|3 Months Ended|
Mar. 31, 2016
|Goodwill and Intangible Assets Disclosure [Abstract]|
|Intangible Asset License||
7. Intangible Asset Licenses
Journey Medical Corporation
In January 2016, JMC entered into a licensing agreement with a third party to distribute a prescription wound cream. JMC intends to commercialize this product in mid-2016. There was no upfront payment for this license.
In January 2016, JMC entered into a licensing agreement with a third party to distribute an emollient for the treatment of various types of dermatitis. JMC paid an upfront fee of $0.2 million. JMC intends to commercialize this product in Q2 2016.
In March 2015, JMC entered into a license and supply agreement to acquire the rights to distribute a dermatological product for the treatment of acne. JMC made an upfront payment of $1.3 million and may incur another fee of $0.7 million upon receipt of the product. Further payments will be made based on a revenue sharing arrangement. The product is fully developed and FDA approved but sales cannot commence until final manufacturing regulatory clearance is obtained.
The Company recorded the upfront payments as an intangible asset on the Condensed Consolidated Balance Sheets and will amortize them over the deemed life of the products or agreements (whichever is shorter) upon the commencement of sales, which the Company expects in mid-2016.
The entire disclosure for all or part of the information related to intangible assets.
Reference 1: http://www.xbrl.org/2003/role/presentationRef