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VITAE PHARMACEUTICALS, INC filed this Form S-1 on 08/12/2014
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amendment for the year ended December 31, 2013 and $2.0 million in revenues for the six-months ended June 30, 2014.

        For the years ended December 31, 2013 and 2012, we earned $18.0 million and $9.0 million, respectively, for achieving substantive development milestones related to BACE inhibitors under the BACE Agreement. Milestone revenue for the year ended December 31, 2013 include $14.0 million related to the advancement of our most advanced compound in the BACE program, VTP-37948, into Phase 1 clinical studies. As of June 30, 2014, we have earned $29.0 million in development milestone payments since the inception of the BACE Agreement, and we are eligible to receive up to $326.0 million in additional milestone payments based on the achievement of pre-specified events, including up to $176.0 million in development and regulatory milestone payments and up to $150.0 million in commercialization milestone payments.

        The additional development, regulatory and commercialization milestone payments are payable upon the first occurrence of any product to meet the requirements specified in the BACE Agreement. Any subsequent product to achieve the same milestone will earn 50% of the initial milestone payment, unless otherwise agreed to by the parties. In addition, second indications for a product covered by the BACE Agreement to achieve the regulatory milestones will earn us 50% of the applicable milestone amount at 50%. We are also eligible to receive tiered royalties from the high-single digits to the low-double digits. We have the option to participate in funding the Phase 3 clinical trials in exchange for increased royalties. BI's obligations to pay the royalties continues on a country-by-country basis for the later of ten (10) years following the first commercial sale of each product in such country or as long as the product is covered by patents licensed to BI under the BACE Agreement.

Financial Operations Overview


        To date, we have not generated any revenue from product sales. Primarily all of our revenue to date has been derived from license fees, milestone payments and collaborative research and development payments received from our strategic partners. Below is a summary of our revenue for the six months ended June 30, 2014 and 2013 and the years ended December 31, 2013 and 2012.

  Six Months
June 30,
  2014   2013  
  (in thousands)

Amortization of upfront license fees

  $ 150   $ 204   $ (54 )

Collaborative research payments:


FTE Funding

    1,850     1,258     592  

Intellectual property costs

    329     500     (171 )

Total collaborative research payments

    2,179     1,758     421  

Total collaborative revenues

  $ 2,329   $ 1,962   $ 367