Collaboration Revenue Recognition
Collaboration revenue for the year ended December 31, 2011 consisted of non-refundable upfront payments and license fees associated with the Company’s former collaboration and license agreement with Ipsen Biopharm Limited. Revenues from the prior collaboration and license agreement were recognized based on the performance requirements of the agreement. The Company analyzed the agreement, which included multiple element arrangements, to determine whether the deliverables under the agreement, including license and performance obligations such as joint steering committee participation and research and development activities, could have been separated or whether all of the deliverables must have been accounted for as a single unit of accounting. See Note 7, Collaboration and License Agreements, for further discussion.