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SEC Filings

VITAE PHARMACEUTICALS, INC filed this Form S-1 on 08/12/2014
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Table of Contents

  Years Ended
December 31,
  2013   2012  
  (in thousands)

Amortization of upfront license fees

  $ 354   $ 1,921   $ (1,567 )

Collaborative research payments:


FTE Funding

    3,108     3,436     (328 )

Research and development costs

        20     (20 )

Intellectual property costs

    1,051     971     80  

Total collaborative research payments

    4,159     4,427     (268 )

Milestone revenue

    18,000     16,000     2,000  

Total collaborative revenues

  $ 22,513   $ 22,348   $ 165  

    Milestone Revenue

        Revenue for the year ended December 31, 2013 included $18.0 million in milestone payments from BI related to the BACE Agreement. In 2012, we earned $7.0 million in milestone revenue from BI related to the 11b Agreement and $9.0 million related to the BACE Agreement.

    Upfront and License Fee Revenue

        For the six months ended June 30, 2014 and 2013 and the years ended December 31, 2013 and 2012, all upfront and license fee revenue was associated with the BACE Agreement. Such revenue for the year ended December 31, 2013 was $0.3 million compared to $1.9 million for the year ended December 31, 2012. The $1.6 million decrease was primarily attributable to a decrease of $1.7 million in amortization of deferred revenue for the BACE Agreement, due to the initial collaborative research period ending as of June 3, 2013; slightly offset by the $0.1 million amortization of the upfront fee received upon execution of the second amendment to the BACE Agreement in December 2012 to expand the core BACE indication to include diabetes and metabolic disease.

        In the future, we may generate revenue from a combination of product sales, license fees, milestone payments and research and development payments in connection with strategic partnerships, and royalties resulting from the sales of products developed under licenses of our intellectual property. We expect that any revenue we generate will fluctuate from quarter to quarter as a result of the timing and amount of license fees, research and development reimbursements, milestone and other payments received under our strategic partnerships, and the amount and timing of payments that we receive upon the sale of our products, to the extent any of our products are successfully commercialized. We do not expect to generate revenue from product sales for many years, if ever. If we or our strategic partners fail to complete the development of our product candidates in a timely manner or obtain regulatory approval for them, our ability to generate future revenue, and our results of operations and financial position, would be materially adversely affected.

Research and Development Expenses

        Research and development expense consists of expenses incurred in connection with the discovery and development of our product candidates. We expense research and development costs as incurred.

        These expenses include, but are not limited to:

    employee-related expenses, which include salaries, benefits and stock-based compensation;
    expenses incurred under agreements with contract research organizations, investigative sites and consultants that conduct our clinical trials and a substantial portion of our preclinical studies;
    the cost of acquiring and manufacturing preclinical and clinical trial materials;