On January 8, 2017, AMAG Pharmaceuticals, Inc. entered into a license agreement with Palatin Technologies, Inc. Under the terms of the License Agreement, subject to the conditions set therein, Palatin will grant to the AMAG Pharmaceuticals, Inc. (i) an exclusive license in all countries of North America, with the right to grant sub-licenses, to research, develop and commercialize products containing bremelanotide, an investigational product designed to be an on-demand treatment for hypoactive sexual desire disorder (HSDD) in pre-menopausal women, (ii) a non-exclusive license in the Territory, with the right to grant sub-licenses, to manufacture Products, and (iii) a non-exclusive license in all countries outside the Territory, with the right to grant sub-licenses, to research, develop and manufacture (but not commercialize) the Products. Pursuant to the terms of the License Agreement, and subject to the conditions set therein, the Company is required to make the following payments to Palatin: (i) $60 million as a one-time initial research payment within five days following the date of the closing of the transactions contemplated by the License Agreement (the Effective Date), and (ii) up to an aggregate amount of $25 million to reimburse Palatin for all reasonable, documented, out-of-pocket expenses incurred by Palatin, following the Effective Date, in connection with the development and regulatory activities necessary to file a new drug application (NDA) for a Product for HSDD in the United States. In addition, pursuant to the terms of the License Agreement, Palatin will be eligible to receive from the Company: (i) up to $80 million in specified regulatory payments upon achievement of certain regulatory milestones, and (ii) up to $300 million in sales milestone payments based on achievement of annual net sales amounts for all Products in the Territory.