8. Commitments and Contingencies External Services The Company has entered into agreements with contract research organizations and other external service providers primarily for services in connection with the development and planned commercialization of its product candidates. The Company was contractually obligated for up to approximately $30.4 million of future services under these agreements as of September 30, 2015. The nature of the work being conducted under the Company s agreements with external service providers is such that, in most cases, the services may be stopped with short notice. In such event, the Company would not be liable for the full amount of the contract. The Company s actual contractual obligations may vary depending upon several factors, including the progress and results of the underlying studies. Contingent Regulatory Milestone Payments In connection with the Company s 2006 license agreement with the Ipsen Group, pursuant to which the Company licensed certain intellectual property rights that complement its patent portfolio for its serotonin platform, including NUPLAZID" (pimavanserin), the Company may be obligated in future periods to make certain regulatory milestone payments. These milestone payments are contingent on the achievement of certain regulatory events. These one-time payments include $2.5 million payable upon the successful filing of the first regulatory application with the U.S. Food and Drug Administration ( FDA ) and $8.0 million payable upon obtaining the first regulatory approval from the FDA. If NUPLAZID is approved, then the Company would make royalty payments to Ipsen of up to two percent on net product sales, if any. Legal Proceedings In March 2015, following the Company s announcement of the update to the timing of its planned New Drug Application ( NDA ) submission to the FDA for NUPLAZID for the treatment of Parkinson s disease psychosis and the subsequent decline of the price of its common stock, two putative securities class action complaints (captioned Rihn