ACHN 2017 Annual Report

Achillion Pharmaceuticals, Inc. Notes to Financial Statements—(Continued) (in thousands, except per share amounts) an aggregate purchase price of $225,000. The Company recorded revenue of $66,122 during the year ended December 31, 2015 associated with this transaction. The Company also recorded revenue of $15,000 during the year ended December 31, 2016 related to the achievement of a clinical enrollment milestone under the Janssen Agreement. On September 9, 2017, the Company received notice from Janssen of Janssen’s termination of the Janssen Agreement effective November 8, 2017. As a result of the termination of the Janssen Agreement, the Company will not receive any future milestone-based or royalty payments under the agreement. Also refer to footnote 5. 17. Subsequent Events In February 2018, the Company implemented a restructuring plan that will reduce employee headcount by approximately 20% to approximately 70 employees in March 2018. The restructuring plan was implemented following a strategic assessment of the Company’s portfolio. During the assessment, the Company’s management team and board of directors concluded that the Company’s strategic focus would be on the development of its existing clinical candidates and late-stage preclinical compounds. The Company assessed the staffing levels required to accomplish its revised strategic goals and determined to reduce its staff across several functional areas. In connection with this reduction, the Company offered individuals whose employment was terminated a severance package that included severance pay, continuation of benefits and outplacement services. The Company will recognize expense relating to the restructuring in the first quarter of 2018 and estimates that the costs will be approximately $1,500. F-29