NOTE 14 – SUBSEQUENT EVENTS

On April 1, 2021, the Company received notice from Millennium Pharmaceuticals, Inc., a wholly owned subsidiary of Takeda Pharmaceutical Company Limited (“Takeda”), that Takeda had decided to terminate the Takeda Development and License Agreement.  The termination of the Collaboration Agreement will be effective 90 days following the notice of termination. Following receipt of the termination notice from Takeda, the Company notified Takeda of its intent to assume full rights to TAK-169, including clinical development, pursuant to the termination provisions of the Takeda Development and License Agreement. Upon transfer of the full TAK-169 rights to the Company, per the terms of the Takeda Development and License Agreement, the Company will owe Takeda low-single digit royalties on future net sales of TAK-169. The Company will adjust for the co-share payment which was originally expected to be $10.2 million during the final true-up of expenses with Takeda.

On April 5, 2021, the Company announced its decision to discontinue the development of MT-3724. The Company has agreements with CROs and other external service providers for services in connection with the clinical trials and development of MT-3724. The Company will continue to accrue expenses related to these services as the Company closes the program, based upon invoicing from these third parties and the status of each agreement. The Company does not anticipate any material costs relating to the wrap up of development of MT-3724.

Pursuant to the terms of the K2 Loan and Security Agreement, the Company provided notice to K2 HealthVentures LLC of its intent to draw the second tranche of $20.0 million, with such amount anticipated to be funded on or about May 15, 2021.