6. Commitments and Contingencies

Legal proceedings

From time to time, the Company may be involved in litigation relating to claims arising out of its operations. The Company is not currently involved in any material legal proceedings. In July 2012, the Company received notifications that each of Actavis Elizabeth LLC (Actavis), Watson Laboratories, Inc. – Florida (Watson), and Novel Laboratories, Inc. (Novel) has filed with the FDA an abbreviated new drug application, or ANDA, including Paragraph IV certifications, for generic versions of Intermezzo. In order to maintain patent-based exclusivity under the Hatch-Waxman Act, Purdue Pharma may choose to file patent infringement claims against Actavis, Watson, and Novel and their affiliates in federal district court within 45 days of Purdue Pharma’s receipt of each respective Paragraph IV certification. If Purdue Pharma chooses to file claims, the Company will need to decide whether to join Purdue Pharma as a named party in any such resulting lawsuit. If Purdue Pharma chooses not to file patent infringement claims against Actavis, Watson, and Novel within the required 45 days, it is possible that the Company may choose to do so on its own behalf.