Item 8.01 Other Events.
On May 17, 2017, Astellas Pharma Inc. issued a press release announcing its joint decision with Pfizer Inc. to discontinue the planned ENDEAR trial which is the subject of a collaboration with NanoString Technologies, Inc. (the “Company”). On the same date, the Company received informal notice from Astellas Pharma and Medivation, Inc., now owned by Pfizer Inc., regarding the termination. The Company was informed that the decision resulted from a portfolio review by Astellas Pharma and Pfizer, and was unrelated to the work performed by the Company in the development program. The Company expects to receive formal notice of termination of its collaboration agreement (the “Agreement”) with Astellas and Medivation imminently.
Item 2.02 Results of Operations and Financial Condition.
Through March 31, 2017, the Company had received a $6.0 million technology access fee, $6.0 million of preclinical milestone payments, and approximately $3.0 million of development funding pursuant to the terms of the Agreement. At March 31, 2017, $10.6 million was recorded as deferred revenue, which, upon termination of the Agreement, will be recorded as collaboration revenue.
Taking the impact of the termination of the Agreement into account, the Company now expects to record collaboration revenue for the year ending December 31, 2017 of $25.0 million to $26.0 million and total revenue for the year of $106.0 million to $111.0 million. For the second quarter ending June 30, 2017, the Company now expects collaboration revenue of approximately $14.0 million and total revenue of $32.5 million to $33.5 million. Pursuant to the rules and regulations of the Securities and Exchange Commission, the foregoing disclosure under Item 2.02 is deemed to have been furnished to, but not filed with, the Securities and Exchange Commission.
This Current Report on Form 8-K contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are identified by such words as “believe,” “expect,” “anticipate,” “estimate,” “plan,” “may” and words of similar import and are based on current expectations that involve risks and uncertainties, such as the Company’s plans, objectives, expectations and intentions. All statements other than historical or current facts, including, without limitation, statements about the anticipated termination of the Company’s collaboration agreement with Astellas Pharma and Medivation; the receipt of future payments pursuant to the Company’s collaboration agreement with Astellas Pharma and Medivation, if any; the anticipated amount of deferred revenue to be recorded as collaboration revenue; and expectations regarding the Company’s collaboration revenues and total revenues for 2017 and the second quarter ending June 30, 2017, are forward-looking statements. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated in the forward-looking statements. These statements, like all statements in this report, speak only as of their date.