☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 75-2402409 | |||||||
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) |
4400 Biscayne Blvd. | ||||||||||||||
Miami | FL | 33137 | ||||||||||||
(Address of Principal Executive Offices) (Zip Code) | ||||||||||||||
(305) | 575-4100 | |||||||||||||
(Registrant’s Telephone Number, Including Area Code) | ||||||||||||||
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||
Common Stock, par value $0.01 per share | OPK | NASDAQ Global Select Market |
Large accelerated filer | x | Accelerated filer | ☐ | ||||||||
Non-accelerated filer | ¨ | Smaller reporting company | ☐ | ||||||||
Emerging growth company | ☐ |
Page | |||||||||||||||||
•that we may fail to obtain regulatory approval for hGH-CTP or successfully commercialize Rayaldee and hGH-CTP; •that we may not generate profits or cash flow from our laboratory operations or substantial revenue from Rayaldee and our other pharmaceutical and diagnostic products; • |
•our ability to maintain reimbursement coverage for our products and services, including the 4Kscore test; • |
September 30, 2019 | December 31, 2018 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 64,667 | $ | 96,473 | |||
Accounts receivable, net | 140,765 | 143,907 | |||||
Inventory, net | 50,109 | 42,299 | |||||
Other current assets and prepaid expenses | 37,301 | 35,052 | |||||
Total current assets | 292,842 | 317,731 | |||||
Property, plant and equipment, net | 128,519 | 144,674 | |||||
Intangible assets, net | 564,310 | 614,452 | |||||
In-process research and development | 635,000 | 635,572 | |||||
Goodwill | 695,798 | 700,193 | |||||
Investments | 11,695 | 31,228 | |||||
Operating lease right-of-use assets | 35,826 | — | |||||
Other assets | 5,528 | 7,222 | |||||
Total assets | $ | 2,369,518 | $ | 2,451,072 | |||
LIABILITIES AND EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 77,296 | $ | 47,395 | |||
Accrued expenses | 172,734 | 203,513 | |||||
Current maturities of operating leases | 12,921 | — | |||||
Current portion of convertible notes | — | 31,562 | |||||
Current portion of lines of credit and notes payable | 7,187 | 5,851 | |||||
Total current liabilities | 270,138 | 288,321 | |||||
Operating lease liabilities | 23,318 | — | |||||
Convertible notes | 208,695 | 57,299 | |||||
Deferred tax liabilities, net | 113,479 | 115,193 | |||||
Other long-term liabilities, principally contract liabilities, contingent consideration and line of credit | 111,959 | 198,968 | |||||
Total long-term liabilities | 457,451 | 371,460 | |||||
Total liabilities | 727,589 | 659,781 | |||||
Equity: | |||||||
Common Stock - $0.01 par value, 1,000,000,000 and 750,000,000 shares authorized at September 30, 2019 and December 31, 2018, respectively; 616,150,952 and 586,881,720 shares issued at September 30, 2019 and December 31, 2018, respectively | 6,162 | 5,869 | |||||
Treasury Stock - 549,907 and 549,907 shares at September 30, 2019 and December 31, 2018, respectively | (1,791 | ) | (1,791 | ) | |||
Additional paid-in capital | 3,065,059 | 3,004,422 | |||||
Accumulated other comprehensive loss | (28,774 | ) | (20,131 | ) | |||
Accumulated deficit | (1,398,727 | ) | (1,197,078 | ) | |||
Total shareholders’ equity | 1,641,929 | 1,791,291 | |||||
Total liabilities and equity | $ | 2,369,518 | $ | 2,451,072 |
June 30, 2020 | December 31, 2019 | ||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 21,612 | $ | 85,452 | |||||||
Accounts receivable, net | 214,352 | 134,617 | |||||||||
Inventory, net | 72,965 | 53,434 | |||||||||
Other current assets and prepaid expenses | 51,125 | 50,542 | |||||||||
Total current assets | 360,054 | 324,045 | |||||||||
Property, plant and equipment, net | 130,540 | 127,111 | |||||||||
Intangible assets, net | 499,125 | 528,962 | |||||||||
In-process research and development | 590,200 | 590,200 | |||||||||
Goodwill | 671,599 | 671,940 | |||||||||
Investments | 26,260 | 20,746 | |||||||||
Operating lease right-of-use assets | 38,469 | 39,380 | |||||||||
Other assets | 7,487 | 6,888 | |||||||||
Total assets | $ | 2,323,734 | $ | 2,309,272 | |||||||
LIABILITIES AND EQUITY | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | 44,671 | $ | 62,537 | |||||||
Accrued expenses | 210,111 | 164,925 | |||||||||
Current maturities of operating leases | 10,298 | 12,038 | |||||||||
Current portion of lines of credit and notes payable | 14,463 | 9,619 | |||||||||
Total current liabilities | 279,543 | 249,119 | |||||||||
Operating lease liabilities | 28,759 | 27,665 | |||||||||
Convertible notes | 216,457 | 211,208 | |||||||||
Deferred tax liabilities, net | 118,979 | 118,717 | |||||||||
Other long-term liabilities, principally contract liabilities, contingent consideration and line of credit | 91,653 | 87,804 | |||||||||
Total long-term liabilities | 455,848 | 445,394 | |||||||||
Total liabilities | 735,391 | 694,513 | |||||||||
Equity: | |||||||||||
Common Stock - $0.01 par value, 1,000,000,000 shares authorized; 670,378,701 and 670,378,701 shares issued at June 30, 2020 and December 31, 2019, respectively | 6,704 | 6,704 | |||||||||
Treasury Stock - 549,907 shares at June 30, 2020 and December 31, 2019, respectively | (1,791) | (1,791) | |||||||||
Additional paid-in capital | 3,147,030 | 3,142,993 | |||||||||
Accumulated other comprehensive loss | (25,752) | (22,070) | |||||||||
Accumulated deficit | (1,537,848) | (1,511,077) | |||||||||
Total shareholders’ equity | 1,588,343 | 1,614,759 | |||||||||
Total liabilities and equity | $ | 2,323,734 | $ | 2,309,272 |
For the three months ended June 30, | For the six months ended June 30, | ||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||
Revenue from services | $ | 250,971 | $ | 178,458 | $ | 421,811 | $ | 357,349 | |||||||||||||||||||||||||||
Revenue from products | 29,356 | 28,680 | 60,430 | 53,981 | |||||||||||||||||||||||||||||||
Revenue from transfer of intellectual property and other | 20,880 | 19,230 | 30,433 | 37,490 | |||||||||||||||||||||||||||||||
Total revenues | 301,207 | 226,368 | 512,674 | 448,820 | |||||||||||||||||||||||||||||||
Costs and expenses: | |||||||||||||||||||||||||||||||||||
Cost of service revenue | 144,794 | 130,078 | 267,680 | 259,981 | |||||||||||||||||||||||||||||||
Cost of product revenue | 17,857 | 14,145 | 35,229 | 28,300 | |||||||||||||||||||||||||||||||
Selling, general and administrative | 77,721 | 88,475 | 153,852 | 183,633 | |||||||||||||||||||||||||||||||
Research and development | 17,608 | 28,286 | 39,369 | 64,816 | |||||||||||||||||||||||||||||||
Contingent consideration | 1,111 | (3,775) | 251 | 1,031 | |||||||||||||||||||||||||||||||
Amortization of intangible assets | 14,937 | 16,419 | 29,874 | 32,981 | |||||||||||||||||||||||||||||||
Asset impairment charges | — | — | — | 655 | |||||||||||||||||||||||||||||||
Total costs and expenses | 274,028 | 273,628 | 526,255 | 571,397 | |||||||||||||||||||||||||||||||
Operating income (loss) | 27,179 | (47,260) | (13,581) | (122,577) | |||||||||||||||||||||||||||||||
Other income and (expense), net: | |||||||||||||||||||||||||||||||||||
Interest income | 5 | 572 | 147 | 1,127 | |||||||||||||||||||||||||||||||
Interest expense | (5,474) | (5,501) | (10,970) | (10,257) | |||||||||||||||||||||||||||||||
Fair value changes of derivative instruments, net | (13) | (388) | 608 | 27 | |||||||||||||||||||||||||||||||
Other income (expense), net | 18,223 | (5,874) | 5,890 | (4,897) | |||||||||||||||||||||||||||||||
Other income and (expense), net | 12,741 | (11,191) | (4,325) | (14,000) | |||||||||||||||||||||||||||||||
Income (loss) before income taxes and investment losses | 39,920 | (58,451) | (17,906) | (136,577) | |||||||||||||||||||||||||||||||
Income tax provision | (6,028) | (1,084) | (7,200) | (1,866) | |||||||||||||||||||||||||||||||
Net income (loss) before investment losses | 33,892 | (59,535) | (25,106) | (138,443) | |||||||||||||||||||||||||||||||
Loss from investments in investees | (189) | (271) | (323) | (2,125) | |||||||||||||||||||||||||||||||
Net Income (loss) | $ | 33,703 | $ | (59,806) | $ | (25,429) | $ | (140,568) | |||||||||||||||||||||||||||
Income (loss) per share, basic and diluted: | |||||||||||||||||||||||||||||||||||
Income (loss) per share | $ | 0.05 | $ | (0.10) | $ | (0.04) | $ | (0.24) | |||||||||||||||||||||||||||
Weighted average common shares outstanding, basic and diluted | 640,578,794 | 586,351,045 | 640,578,794 | 586,347,645 | |||||||||||||||||||||||||||||||
For the three months ended September 30, | For the nine months ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Revenues: | |||||||||||||||
Revenue from services | $ | 181,139 | $ | 202,811 | $ | 538,488 | $ | 630,180 | |||||||
Revenue from products | 26,161 | 25,395 | 80,143 | 81,769 | |||||||||||
Revenue from transfer of intellectual property and other | 21,472 | 21,609 | 58,961 | 56,463 | |||||||||||
Total revenues | 228,772 | 249,815 | 677,592 | 768,412 | |||||||||||
Costs and expenses: | |||||||||||||||
Cost of service revenue | 126,348 | 137,347 | 386,329 | 411,196 | |||||||||||
Cost of product revenue | 15,573 | 13,609 | 43,874 | 43,909 | |||||||||||
Selling, general and administrative | 80,542 | 84,071 | 264,175 | 263,242 | |||||||||||
Research and development | 30,017 | 30,160 | 94,832 | 92,258 | |||||||||||
Contingent consideration | (1,109 | ) | 1,193 | (78 | ) | (12,406 | ) | ||||||||
Amortization of intangible assets | 16,412 | 16,899 | 49,393 | 51,397 | |||||||||||
Asset impairment charges | — | — | 655 | — | |||||||||||
Total costs and expenses | 267,783 | 283,279 | 839,180 | 849,596 | |||||||||||
Operating loss | (39,011 | ) | (33,464 | ) | (161,588 | ) | (81,184 | ) | |||||||
Other income and (expense), net: | |||||||||||||||
Interest income | 350 | 43 | 1,477 | 111 | |||||||||||
Interest expense | (5,792 | ) | (2,944 | ) | (16,048 | ) | (7,933 | ) | |||||||
Fair value changes of derivative instruments, net | (21 | ) | (155 | ) | 6 | 3,489 | |||||||||
Other income (expense), net | (15,470 | ) | (824 | ) | (20,367 | ) | 9,653 | ||||||||
Other income and (expense), net | (20,933 | ) | (3,880 | ) | (34,932 | ) | 5,320 | ||||||||
Loss before income taxes and investment losses | (59,944 | ) | (37,344 | ) | (196,520 | ) | (75,864 | ) | |||||||
Income tax benefit (provision) | (1,769 | ) | 11,563 | (3,636 | ) | 10,437 | |||||||||
Net loss before investment losses | (61,713 | ) | (25,781 | ) | (200,156 | ) | (65,427 | ) | |||||||
Loss from investments in investees | (294 | ) | (1,874 | ) | (2,419 | ) | (11,542 | ) | |||||||
Net loss | $ | (62,007 | ) | $ | (27,655 | ) | $ | (202,575 | ) | $ | (76,969 | ) | |||
Loss per share, basic and diluted: | |||||||||||||||
Loss per share | $ | (0.11 | ) | $ | (0.05 | ) | $ | (0.35 | ) | $ | (0.14 | ) | |||
Weighted average common shares outstanding, basic and diluted | 586,351,045 | 559,786,382 | 586,348,791 | 559,601,097 |
For the three months ended June 30, | For the six months ended June 30, | ||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||||
Net income (loss) | $ | 33,703 | $ | (59,806) | $ | (25,429) | $ | (140,568) | |||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||||||||||||||||||||
Change in foreign currency translation and other comprehensive income (loss) | 4,435 | 2,878 | (3,682) | (220) | |||||||||||||||||||||||||||||||
Comprehensive income (loss) | $ | 38,138 | $ | (56,928) | $ | (29,111) | $ | (140,788) | |||||||||||||||||||||||||||
For the three months ended September 30, | For the nine months ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Net loss | $ | (62,007 | ) | $ | (27,655 | ) | $ | (202,575 | ) | $ | (76,969 | ) | |||
Other comprehensive income (loss), net of tax: | |||||||||||||||
Change in foreign currency translation and other comprehensive income (loss) | (8,423 | ) | (134 | ) | (8,643 | ) | (7,734 | ) | |||||||
Investments: | |||||||||||||||
Reclassification adjustment due to adoption of ASU 2016-01 | — | — | — | (4,876 | ) | ||||||||||
Comprehensive loss | $ | (70,430 | ) | $ | (27,789 | ) | $ | (211,218 | ) | $ | (89,579 | ) |
Common Stock | Treasury | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Accumulated Deficit | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Dollars | Shares | Dollars | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2020 | 670,378,701 | $ | 6,704 | $ | (549,907) | $ | (1,791) | $ | 3,145,444 | $ | (30,187) | $ | (1,571,551) | $ | 1,548,619 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity-based compensation expense | — | — | — | — | 1,586 | — | — | 1,586 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | 33,703 | 33,703 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | 4,435 | — | 4,435 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2020 | 670,378,701 | $ | 6,704 | $ | (549,907) | $ | (1,791) | $ | 3,147,030 | $ | (25,752) | $ | (1,537,848) | $ | 1,588,343 |
Common Stock | Treasury | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Accumulated Deficit | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Dollars | Shares | Dollars | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2019 | 670,378,701 | $ | 6,704 | (549,907) | $ | (1,791) | $ | 3,142,993 | $ | (22,070) | $ | (1,511,077) | $ | 1,614,759 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity-based compensation expense | — | — | — | — | 4,037 | — | — | 4,037 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adoption of ASC 326 | — | — | — | — | — | — | (1,342) | (1,342) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | (25,429) | (25,429) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | (3,682) | — | (3,682) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2020 | 670,378,701 | $ | 6,704 | (549,907) | $ | (1,791) | $ | 3,147,030 | $ | (25,752) | $ | (1,537,848) | $ | 1,588,343 |
Common Stock | Treasury | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Accumulated Deficit | Total | ||||||||||||||||||||||||
Shares | Dollars | Shares | Dollars | ||||||||||||||||||||||||||
Balance at June 30, 2019 | 616,150,952 | $ | 6,162 | (549,907 | ) | $ | (1,791 | ) | $ | 3,061,631 | $ | (20,351 | ) | $ | (1,336,720 | ) | $ | 1,708,931 | |||||||||||
Equity-based compensation expense | — | — | — | — | 3,428 | — | — | 3,428 | |||||||||||||||||||||
Exercise of Common Stock options and warrants | — | — | — | — | — | — | — | — | |||||||||||||||||||||
Adoption of ASU 2018-07 | — | — | — | — | — | — | — | — | |||||||||||||||||||||
2025 convertible notes including share lending arrangement | — | — | — | — | — | — | — | — | |||||||||||||||||||||
Net loss | — | — | — | — | — | — | (62,007 | ) | (62,007 | ) | |||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | (8,423 | ) | — | (8,423 | ) | |||||||||||||||||||
Balance at September 30, 2019 | 616,150,952 | $ | 6,162 | (549,907 | ) | $ | (1,791 | ) | $ | 3,065,059 | $ | (28,774 | ) | $ | (1,398,727 | ) | $ | 1,641,929 |
Common Stock | Treasury | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Accumulated Deficit | Total | ||||||||||||||||||||||||
Shares | Dollars | Shares | Dollars | ||||||||||||||||||||||||||
Balance at December 31, 2018 | 586,881,720 | $ | 5,869 | (549,907 | ) | $ | (1,791 | ) | $ | 3,004,422 | $ | (20,131 | ) | $ | (1,197,078 | ) | $ | 1,791,291 | |||||||||||
Equity-based compensation expense | — | — | — | — | 11,007 | — | — | 11,007 | |||||||||||||||||||||
Exercise of Common Stock options and warrants | 19,232 | — | — | — | (3 | ) | — | — | (3 | ) | |||||||||||||||||||
Adoption of ASU 2018-07 | — | — | — | — | (926 | ) | — | 926 | — | ||||||||||||||||||||
2025 convertible notes including share lending arrangement | 29,250,000 | 293 | — | — | 50,559 | — | — | 50,852 | |||||||||||||||||||||
Net loss | — | — | — | — | — | — | (202,575 | ) | (202,575 | ) | |||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | (8,643 | ) | — | (8,643 | ) | |||||||||||||||||||
Balance at September 30, 2019 | 616,150,952 | $ | 6,162 | (549,907 | ) | $ | (1,791 | ) | $ | 3,065,059 | $ | (28,774 | ) | $ | (1,398,727 | ) | $ | 1,641,929 |
Common Stock | Treasury | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Accumulated Deficit | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Dollars | Shares | Dollars | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2019 | 616,150,952 | $ | 6,162 | (549,907) | $ | (1,791) | $ | 3,058,509 | $ | (23,229) | $ | (1,276,914) | $ | 1,762,737 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity-based compensation expense | — | — | — | — | 3,122 | — | — | 3,122 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | (59,806) | (59,806) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | 2,878 | — | 2,878 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2019 | 616,150,952 | $ | 6,162 | (549,907) | $ | (1,791) | $ | 3,061,631 | $ | (20,351) | $ | (1,336,720) | $ | 1,708,931 |
Common Stock | Treasury | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Accumulated Deficit | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Dollars | Shares | Dollars | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2018 | 586,881,720 | $ | 5,869 | (549,907) | $ | (1,791) | $ | 3,004,422 | $ | (20,131) | $ | (1,197,078) | $ | 1,791,291 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity-based compensation expense | — | — | — | — | 7,579 | — | — | 7,579 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Exercise of Common Stock options and warrants | 19,232 | — | — | — | (3) | — | — | (3) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adoption of ASU 2018-07 | — | — | — | — | (926) | — | 926 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2025 convertible notes including share lending arrangement | 29,250,000 | 293 | — | — | 50,559 | — | — | 50,852 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | (140,568) | (140,568) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | (220) | — | (220) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2019 | 616,150,952 | $ | 6,162 | (549,907) | $ | (1,791) | $ | 3,061,631 | $ | (20,351) | $ | (1,336,720) | $ | 1,708,931 |
Common Stock | Treasury | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Accumulated Deficit | Total | ||||||||||||||||||||||||
Shares | Dollars | Shares | Dollars | ||||||||||||||||||||||||||
Balance at June 30, 2018 | 560,169,422 | $ | 5,602 | (549,907 | ) | $ | (1,791 | ) | $ | 2,901,086 | $ | (13,004 | ) | $ | (1,093,353 | ) | $ | 1,798,540 | |||||||||||
Equity-based compensation expense | — | — | — | — | 5,077 | — | — | 5,077 | |||||||||||||||||||||
Exercise of Common Stock options and warrants | 208,000 | 2 | — | — | 854 | — | — | 856 | |||||||||||||||||||||
Adoption of ASU 2016-01 | — | — | — | — | — | — | — | — | |||||||||||||||||||||
Net loss | — | — | — | — | — | — | (27,655 | ) | (27,655 | ) | |||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | (134 | ) | — | (134 | ) | |||||||||||||||||||
Balance at September 30, 2018 | 560,377,422 | $ | 5,604 | (549,907 | ) | $ | (1,791 | ) | $ | 2,907,017 | $ | (13,138 | ) | $ | (1,121,008 | ) | $ | 1,776,684 |
Common Stock | Treasury | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Accumulated Deficit | Total | ||||||||||||||||||||||||
Shares | Dollars | Shares | Dollars | ||||||||||||||||||||||||||
Balance at December 31, 2017 | 560,023,745 | $ | 5,600 | (549,907 | ) | $ | (1,791 | ) | $ | 2,889,256 | $ | (528 | ) | $ | (1,048,914 | ) | $ | 1,843,623 | |||||||||||
Equity-based compensation expense | — | — | — | — | 16,591 | — | — | 16,591 | |||||||||||||||||||||
Exercise of Common Stock options and warrants | 353,677 | 4 | — | — | 1,170 | — | — | 1,174 | |||||||||||||||||||||
Adoption of ASU 2016-01 | — | — | — | — | — | (4,876 | ) | 4,876 | — | ||||||||||||||||||||
Net loss | — | — | — | — | — | — | (76,969 | ) | (76,969 | ) | |||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | (7,734 | ) | — | (7,734 | ) | |||||||||||||||||||
Balance at September 30, 2018 | 560,377,422 | $ | 5,604 | (549,907 | ) | $ | (1,791 | ) | $ | 2,907,017 | $ | (13,138 | ) | $ | (1,121,007 | ) | $ | 1,776,685 |
For the six months ended June 30, | |||||||||||||||||
2020 | 2019 | ||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||
Net loss | $ | (25,429) | $ | (140,568) | |||||||||||||
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||||||||||||
Depreciation and amortization | 44,318 | 47,477 | |||||||||||||||
Non-cash interest | 5,022 | 2,868 | |||||||||||||||
Amortization of deferred financing costs | 411 | 308 | |||||||||||||||
Losses from investments in investees | 323 | 2,125 | |||||||||||||||
Equity-based compensation – employees and non-employees | 4,037 | 7,579 | |||||||||||||||
Realized loss on disposal of fixed assets and sales of equity securities | 156 | 220 | |||||||||||||||
Change in fair value of equity securities and derivative instruments | (6,515) | 5,431 | |||||||||||||||
Change in fair value of contingent consideration | 251 | 1,031 | |||||||||||||||
Impairment of assets | — | 655 | |||||||||||||||
Deferred income tax provision | 1,028 | 168 | |||||||||||||||
Changes in assets and liabilities: | |||||||||||||||||
Accounts receivable, net | (81,539) | (4,398) | |||||||||||||||
Inventory, net | (21,905) | (6,225) | |||||||||||||||
Other current assets and prepaid expenses | (2,619) | 2,476 | |||||||||||||||
Other assets | (61) | 136 | |||||||||||||||
Accounts payable | (16,753) | 12,887 | |||||||||||||||
Foreign currency measurement | (2,077) | 131 | |||||||||||||||
Contract liabilities | (4,026) | (37,015) | |||||||||||||||
Accrued expenses and other liabilities | 47,585 | 2,095 | |||||||||||||||
Net cash used in operating activities | (57,793) | (102,619) | |||||||||||||||
Cash flows from investing activities: | |||||||||||||||||
Investments in investees | — | (1,200) | |||||||||||||||
Proceeds from the sale of property, plant and equipment | 65 | 309 | |||||||||||||||
Capital expenditures | (17,149) | (6,432) | |||||||||||||||
Net cash used in investing activities | (17,084) | (7,323) | |||||||||||||||
Cash flows from financing activities: | |||||||||||||||||
Issuance of convertible notes, including to related parties | — | 200,293 | |||||||||||||||
Debt issuance costs | — | (7,762) | |||||||||||||||
Proceeds from the exercise of Common Stock options and warrants | — | (3) | |||||||||||||||
Borrowings on lines of credit | 393,651 | 39,695 | |||||||||||||||
Repayments of lines of credit | (382,374) | (78,824) | |||||||||||||||
Redemption of 2033 Senior Notes | — | (28,800) | |||||||||||||||
Net cash provided by financing activities | 11,277 | 124,599 | |||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | (240) | (15) | |||||||||||||||
Net increase (decrease) in cash and cash equivalents | (63,840) | 14,642 | |||||||||||||||
Cash and cash equivalents at beginning of period | 85,452 | 96,473 | |||||||||||||||
Cash and cash equivalents at end of period | $ | 21,612 | $ | 111,115 | |||||||||||||
SUPPLEMENTAL INFORMATION: | |||||||||||||||||
Interest paid | $ | 5,578 | $ | 5,411 | |||||||||||||
Income taxes paid (received), net of refunds | $ | (208) | $ | 2,132 | |||||||||||||
Operating lease right-of-use assets due to adoption of ASU No. 2016-02 | $ | — | $ | 29,640 | |||||||||||||
Operating lease liabilities due to adoption of ASU No. 2016-02 | $ | — | $ | 30,049 | |||||||||||||
Non-cash financing: | |||||||||||||||||
Shares issued upon the conversion of: | |||||||||||||||||
Common Stock options and warrants, surrendered in net exercise | $ | — | $ | 20 | |||||||||||||
For the nine months ended September 30, | |||||||
2019 | 2018 | ||||||
Cash flows from operating activities: | |||||||
Net loss | $ | (202,575 | ) | $ | (76,969 | ) | |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||||||
Depreciation and amortization | 71,281 | 73,440 | |||||
Non-cash interest | 4,558 | 3,559 | |||||
Amortization of deferred financing costs | 506 | 155 | |||||
Losses from investments in investees | 2,419 | 11,542 | |||||
Equity-based compensation – employees and non-employees | 11,007 | 16,591 | |||||
Realized loss (gain) on disposal of fixed assets and sales of equity securities | 1,455 | 34 | |||||
Change in fair value of equity securities and derivative instruments | 17,178 | (14,346 | ) | ||||
Change in fair value of contingent consideration | (78 | ) | (12,406 | ) | |||
Impairment of assets | 655 | — | |||||
Deferred income tax (benefit) provision | 2,065 | (14,541 | ) | ||||
Changes in assets and liabilities, net of the effects of acquisitions: | |||||||
Accounts receivable, net | 3,257 | 7,701 | |||||
Inventory, net | (9,543 | ) | 4,057 | ||||
Other current assets and prepaid expenses | (2,556 | ) | (4,304 | ) | |||
Other assets | 240 | (4,633 | ) | ||||
Accounts payable | 30,597 | (9,329 | ) | ||||
Foreign currency measurement | 147 | 57 | |||||
Contract liabilities | (56,860 | ) | (50,531 | ) | |||
Accrued expenses and other liabilities | (238 | ) | (4,559 | ) | |||
Net cash used in operating activities | (126,485 | ) | (74,482 | ) | |||
Cash flows from investing activities: | |||||||
Investments in investees | (1,200 | ) | (1,000 | ) | |||
Proceeds from sale of equity securities | — | 1,516 | |||||
Proceeds from the sale of property, plant and equipment | 552 | 1,070 | |||||
Capital expenditures | (8,866 | ) | (24,823 | ) | |||
Net cash used in investing activities | (9,514 | ) | (23,237 | ) | |||
Cash flows from financing activities: | |||||||
Issuance of convertible notes, including to related parties | 200,293 | 55,000 | |||||
Debt issuance costs | (7,762 | ) | — | ||||
Proceeds from the exercise of Common Stock options and warrants | (3 | ) | 1,173 | ||||
Borrowings on lines of credit | 99,353 | 22,468 | |||||
Repayments of lines of credit | (158,477 | ) | (28,435 | ) | |||
Redemption of 2033 Senior Notes | (28,800 | ) | — | ||||
Net cash provided by financing activities | 104,604 | 50,206 | |||||
Effect of exchange rate changes on cash and cash equivalents | (411 | ) | (268 | ) | |||
Net increase (decrease) in cash and cash equivalents | (31,806 | ) | (47,781 | ) | |||
Cash and cash equivalents at beginning of period | 96,473 | 91,499 | |||||
Cash and cash equivalents at end of period | $ | 64,667 | $ | 43,718 | |||
SUPPLEMENTAL INFORMATION: | |||||||
Interest paid | $ | 11,084 | $ | 1,631 | |||
Income taxes paid, net of refunds | $ | 3,103 | $ | 3,883 | |||
Operating lease right-of-use assets due to adoption of ASU No. 2016-02 | $ | 35,826 | $ | — | |||
Operating lease liabilities due to adoption of ASU No. 2016-02 | $ | 36,239 | $ | — | |||
Non-cash financing: | |||||||
Shares issued upon the conversion of: | |||||||
Common Stock options and warrants, surrendered in net exercise | $ | 20 | $ | 806 |
(In thousands) | September 30, 2019 | December 31, 2018 | (In thousands) | June 30, 2020 | December 31, 2019 | |||||||||||||
Accounts receivable, net: | Accounts receivable, net: | |||||||||||||||||
Accounts receivable | $ | 142,605 | $ | 145,665 | Accounts receivable | $ | 215,925 | $ | 136,551 | |||||||||
Less: allowance for doubtful accounts | (1,840 | ) | (1,758 | ) | ||||||||||||||
Less: allowance for credit losses | Less: allowance for credit losses | (1,573) | (1,934) | |||||||||||||||
$ | 140,765 | $ | 143,907 | $ | 214,352 | $ | 134,617 | |||||||||||
Inventories, net: | Inventories, net: | |||||||||||||||||
Consumable supplies | $ | 23,022 | $ | 23,264 | Consumable supplies | $ | 41,298 | $ | 23,005 | |||||||||
Finished products | 22,137 | 15,259 | Finished products | 24,259 | 25,142 | |||||||||||||
Work in-process | 3,239 | 2,473 | Work in-process | 4,711 | 3,238 | |||||||||||||
Raw materials | 4,264 | 4,259 | Raw materials | 5,826 | 4,586 | |||||||||||||
Less: inventory reserve | (2,553 | ) | (2,956 | ) | Less: inventory reserve | (3,129) | (2,537) | |||||||||||
$ | 50,109 | $ | 42,299 | $ | 72,965 | $ | 53,434 | |||||||||||
Other current assets and prepaid expenses: | Other current assets and prepaid expenses: | |||||||||||||||||
Taxes recoverable | 19,705 | 15,708 | Taxes recoverable | $ | 12,135 | $ | 19,808 | |||||||||||
Prepaid expenses | Prepaid expenses | 12,999 | 8,147 | |||||||||||||||
Prepaid insurance | Prepaid insurance | 6,274 | 3,486 | |||||||||||||||
Other receivables | 194 | 2,368 | Other receivables | 661 | 3,262 | |||||||||||||
Prepaid supplies | 8,915 | 9,693 | ||||||||||||||||
Prepaid insurance | 5,160 | 3,436 | ||||||||||||||||
Other | 3,327 | 3,847 | Other | 19,056 | 15,839 | |||||||||||||
$ | 37,301 | $ | 35,052 | $ | 51,125 | $ | 50,542 | |||||||||||
Intangible assets, net: | Intangible assets, net: | |||||||||||||||||
Customer relationships | $ | 444,524 | $ | 446,296 | Customer relationships | $ | 445,144 | $ | 445,408 | |||||||||
Technologies | 340,539 | 340,729 | Technologies | 296,251 | 296,246 | |||||||||||||
Trade names | 49,779 | 50,404 | Trade names | 49,771 | 49,786 | |||||||||||||
Covenants not to compete | Covenants not to compete | 16,318 | 16,318 | |||||||||||||||
Licenses | 5,766 | 5,766 | Licenses | 5,766 | 5,766 | |||||||||||||
Covenants not to compete | 16,314 | 16,322 | ||||||||||||||||
Product registrations | 7,554 | 7,861 | Product registrations | 7,109 | 7,578 | |||||||||||||
Other | 5,974 | 5,613 | Other | 6,100 | 6,094 | |||||||||||||
Less: accumulated amortization | (306,140 | ) | (258,539 | ) | Less: accumulated amortization | (327,334) | (298,234) | |||||||||||
$ | 564,310 | $ | 614,452 | $ | 499,125 | $ | 528,962 | |||||||||||
Accrued expenses: | Accrued expenses: | |||||||||||||||||
Inventory received but not invoiced | Inventory received but not invoiced | $ | 49,005 | $ | 13,751 | |||||||||||||
Commitments and Contingencies | Commitments and Contingencies | 38,668 | 38,635 | |||||||||||||||
Employee benefits | Employee benefits | 34,086 | 33,671 | |||||||||||||||
Contract liabilities | $ | 30,951 | $ | 63,503 | Contract liabilities | 16,570 | 19,196 | |||||||||||
Employee benefits | 34,138 | 45,621 | ||||||||||||||||
Clinical trials | 9,975 | 10,401 | Clinical trials | 6,079 | 8,122 | |||||||||||||
Contingent consideration | 2,375 | 2,375 | Contingent consideration | 2,375 | 2,375 | |||||||||||||
Finance leases short-term | 2,983 | 3,280 | Finance leases short-term | 2,435 | 2,743 | |||||||||||||
Milestone payment | 5,000 | 4,871 | ||||||||||||||||
Professional fees | 2,877 | 7,935 | Professional fees | 4,009 | 1,333 | |||||||||||||
Other | 84,435 | 65,527 | Other | 56,884 | 45,099 | |||||||||||||
$ | 172,734 | $ | 203,513 | $ | 210,111 | $ | 164,925 | |||||||||||
(In thousands) | June 30, 2020 | December 31, 2019 | |||||||||
Other long-term liabilities: | |||||||||||
Line of credit | $ | 51,489 | $ | 44,749 | |||||||
Contingent consideration | 7,559 | 7,308 | |||||||||
Mortgages and other debts payable | 4,201 | 3,906 | |||||||||
Finance leases long-term | 2,960 | 4,046 | |||||||||
Contract liabilities | 1,170 | 2,571 | |||||||||
Other | 24,274 | 25,224 | |||||||||
$ | 91,653 | $ | 87,804 |
(In thousands) | September 30, 2019 | December 31, 2018 | |||||
Other long-term liabilities: | |||||||
Contract liabilities | $ | 3,257 | $ | 27,566 | |||
Line of credit | 50,644 | 105,198 | |||||
Contingent consideration | 22,084 | 22,162 | |||||
Mortgages and other debts payable | 4,091 | 4,654 | |||||
Finance leases long-term | 4,325 | 5,620 | |||||
Other | 27,558 | 33,768 | |||||
$ | 111,959 | $ | 198,968 |
2020 | |||||||||||||||||||||||||||||||||||
(In thousands) | Balance at January 1 | Foreign exchange and other | Balance at June 30th | ||||||||||||||||||||||||||||||||
Pharmaceuticals | |||||||||||||||||||||||||||||||||||
Rayaldee | $ | 85,605 | $ | 100 | $ | 85,705 | |||||||||||||||||||||||||||||
OPKO Chile | 4,348 | (450) | 3,898 | ||||||||||||||||||||||||||||||||
OPKO Biologics | 139,784 | — | 139,784 | ||||||||||||||||||||||||||||||||
OPKO Health Europe | 7,394 | 9 | 7,403 | ||||||||||||||||||||||||||||||||
Diagnostics | |||||||||||||||||||||||||||||||||||
BioReference | 434,809 | — | 434,809 | ||||||||||||||||||||||||||||||||
$ | 671,940 | $ | (341) | $ | 671,599 |
2019 | |||||||||||
(In thousands) | Balance at January 1 | Foreign exchange and other | Balance at September 30th | ||||||||
Pharmaceuticals | |||||||||||
CURNA | $ | 4,827 | $ | — | $ | 4,827 | |||||
EirGen | 85,245 | (3,933 | ) | 81,312 | |||||||
FineTech | — | — | — | ||||||||
OPKO Chile | 4,614 | (212 | ) | 4,402 | |||||||
OPKO Biologics | 139,784 | — | 139,784 | ||||||||
OPKO Health Europe | 7,546 | (348 | ) | 7,198 | |||||||
OPKO Renal | 2,069 | — | 2,069 | ||||||||
Transition Therapeutics | 3,322 | 98 | 3,420 | ||||||||
Diagnostics | |||||||||||
BioReference | 401,821 | — | 401,821 | ||||||||
OPKO Diagnostics | 17,977 | — | 17,977 | ||||||||
OPKO Lab | 32,988 | — | 32,988 | ||||||||
$ | 700,193 | $ | (4,395 | ) | $ | 695,798 |
(in thousands) | (in thousands) | |||||||||||||||||||||
Investment type | Investment Carrying Value | Underlying Equity in Net Assets | Investment type | Investment Carrying Value | Underlying Equity in Net Assets | |||||||||||||||||
Equity method investments | $ | 1,448 | $ | 10,268 | Equity method investments | $ | 561 | $ | 2,370 | |||||||||||||
Variable interest entity, equity method | 963 | — | Variable interest entity, equity method | 836 | — | |||||||||||||||||
Equity securities | 9,129 | Equity securities | 24,777 | |||||||||||||||||||
Equity securities with no readily determinable fair value | 35 | Equity securities with no readily determinable fair value | 35 | |||||||||||||||||||
Warrants and options | 120 | Warrants and options | 51 | |||||||||||||||||||
Total carrying value of investments | $ | 11,695 | Total carrying value of investments | $ | 26,260 |
(in thousands) | ||||
Equity Securities | For the nine months ended September 30, 2019 | |||
Net gains and losses recognized during the period on equity securities | $ | (17,184 | ) | |
Less: Net gains and losses realized during the period on equity securities | — | |||
Unrealized net gains recognized during the period on equity securities still held at the reporting date | $ | (17,184 | ) |
(in thousands) | ||||||||
Equity Securities | For the six months ended June 30, 2020 | |||||||
Net gains and losses recognized during the period on equity securities | $ | 5,907 | ||||||
Less: Net gains and losses realized during the period on equity securities | — | |||||||
Unrealized net gains recognized during the period on equity securities still held at the reporting date | $ | 5,907 | ||||||
(In thousands) | 2025 Senior Notes | Discount | Debt Issuance Cost | Total | |||||||||||
Balance at December 31, 2018 | $ | — | $ | — | $ | — | $ | — | |||||||
Issuance of 4.50% convertible notes | 200,000 | (52,600 | ) | (5,720 | ) | 141,680 | |||||||||
Amortization of debt discount and debt issuance costs | — | 4,131 | 449 | 4,580 | |||||||||||
Balance at September 30, 2019 | $ | 200,000 | $ | (48,469 | ) | $ | (5,271 | ) | $ | 146,260 |
(In thousands) | 2025 Senior Notes | Discount | Debt Issuance Cost | Total | |||||||||||||||||||
Balance at December 31, 2019 | $ | 200,000 | $ | (46,774) | $ | (5,086) | $ | 148,140 | |||||||||||||||
Amortization of debt discount and debt issuance costs | — | 3,497 | 381 | 3,878 | |||||||||||||||||||
Balance at June 30, 2020 | $ | 200,000 | $ | (43,277) | $ | (4,705) | $ | 152,018 |
(Dollars in thousands) | Balance Outstanding | |||||||||||||
Lender | Interest rate on borrowings at September 30, 2019 | Credit line capacity | September 30, 2019 | December 31, 2018 | ||||||||||
JPMorgan Chase | 4.20% | $ | 100,000 | $ | 50,644 | $ | 105,198 | |||||||
Itau Bank | 5.50% | 1,810 | 1,027 | 232 | ||||||||||
Bank of Chile | 6.60% | 3,800 | 1,059 | 432 | ||||||||||
BICE Bank | 5.50% | 2,500 | 854 | 818 | ||||||||||
BBVA Bank | 5.50% | 3,250 | 11 | 858 | ||||||||||
Security Bank | 5.50% | 294 | 294 | — | ||||||||||
Estado Bank | 5.50% | 3,500 | 888 | 308 | ||||||||||
Santander Bank | 5.50% | 4,500 | 1,044 | 852 | ||||||||||
Scotiabank | 5.00% | 1,800 | 307 | 2 | ||||||||||
Banco De Sabadell | 1.45% | 327 | — | — | ||||||||||
Banco Bilbao Vizcaya | 2.75% | 327 | — | — | ||||||||||
Banco Santander | 1.40% | 327 | — | 10 | ||||||||||
Total | $ | 122,435 | $ | 56,128 | $ | 108,710 |
(Dollars in thousands) | Balance Outstanding | |||||||||||||||||||||||||||||||
Lender | Interest rate on borrowings at June 30, 2020 | Credit line capacity | June 30, 2020 | December 31, 2019 | ||||||||||||||||||||||||||||
JPMorgan Chase | 3.67% | $ | 75,000 | $ | 51,489 | $ | 44,750 | |||||||||||||||||||||||||
Itau Bank | 5.50% | 1,810 | 530 | 472 | ||||||||||||||||||||||||||||
Bank of Chile | 6.60% | 3,800 | 865 | 851 | ||||||||||||||||||||||||||||
BICE Bank | 5.50% | 2,500 | 1,019 | 1,429 | ||||||||||||||||||||||||||||
BBVA Bank | 5.50% | 3,250 | — | 11 | ||||||||||||||||||||||||||||
Security Bank | 5.50% | — | — | 588 | ||||||||||||||||||||||||||||
Estado Bank | 5.50% | 3,500 | 1,974 | 1,365 | ||||||||||||||||||||||||||||
Santander Bank | 5.50% | 4,500 | 2,648 | 1,943 | ||||||||||||||||||||||||||||
Scotiabank | 5.00% | 1,800 | 1,095 | 668 | ||||||||||||||||||||||||||||
Corpbanca | 5.00% | 3,917 | 3,917 | — | ||||||||||||||||||||||||||||
Banco De Sabadell | 1.30% | 337 | — | — | ||||||||||||||||||||||||||||
Banco Bilbao Vizcaya | 1.70% | 337 | — | — | ||||||||||||||||||||||||||||
Banco Santander | 1.82% | 561 | — | — | ||||||||||||||||||||||||||||
Total | $ | 101,312 | $ | 63,537 | $ | 52,077 |
(In thousands) | September 30, 2019 | December 31, 2018 | |||||
Current portion of notes payable | $ | 1,903 | $ | 2,560 | |||
Other long-term liabilities | 4,932 | 5,693 | |||||
Total | $ | 6,835 | $ | 8,253 |
(In thousands) | June 30, 2020 | December 31, 2019 | |||||||||
Current portion of notes payable | $ | 2,415 | $ | 2,494 | |||||||
Other long-term liabilities | 4,936 | 4,723 | |||||||||
Total | $ | 7,351 | $ | 7,217 |
(In thousands) | Foreign currency translation | ||||||||||||||||
Balance at December 31, 2019 | $ | (22,070) | |||||||||||||||
Other comprehensive loss | (3,682) | ||||||||||||||||
Balance at June 30, 2020 | $ | (25,752) |
(In thousands) | Foreign currency translation | ||
Balance at December 31, 2018 | $ | (20,131 | ) |
Other comprehensive loss before reclassifications | (8,643 | ) | |
Net other comprehensive loss | (8,643 | ) | |
Balance at September 30, 2019 | $ | (28,774 | ) |
Fair value measurements as of June 30, 2020 | |||||||||||||||||||||||||||||||||||||||||
(In thousands) | Quoted prices in active markets for identical assets (Level 1) | Significant other observable inputs (Level 2) | Significant unobservable inputs (Level 3) | Total | |||||||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||||||||
Equity securities | $ | 24,777 | $ | — | $ | — | $ | 24,777 | |||||||||||||||||||||||||||||||||
Common stock options/warrants | — | 51 | — | 51 | |||||||||||||||||||||||||||||||||||||
Forward contracts | — | 215 | — | 215 | |||||||||||||||||||||||||||||||||||||
Total assets | $ | 24,777 | $ | 266 | $ | — | $ | 25,043 | |||||||||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||||||||||
Contingent consideration | — | — | 9,934 | 9,934 | |||||||||||||||||||||||||||||||||||||
Total liabilities | $ | — | $ | — | $ | 9,934 | $ | 9,934 |
Fair value measurements as of September 30, 2019 | Fair value measurements as of December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In thousands) | Quoted prices in active markets for identical assets (Level 1) | Significant other observable inputs (Level 2) | Significant unobservable inputs (Level 3) | Total | (In thousands) | Quoted prices in active markets for identical assets (Level 1) | Significant other observable inputs (Level 2) | Significant unobservable inputs (Level 3) | Total | |||||||||||||||||||||||||||||||||||||||||||||||
Assets: | Assets: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity securities | 9,129 | — | — | 9,129 | Equity securities | $ | 18,870 | $ | — | $ | — | $ | 18,870 | |||||||||||||||||||||||||||||||||||||||||||
Common stock options/warrants | — | 120 | — | 120 | Common stock options/warrants | — | 120 | — | 120 | |||||||||||||||||||||||||||||||||||||||||||||||
Forward contracts | — | 146 | — | 146 | Forward contracts | — | 133 | — | 133 | |||||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 9,129 | $ | 266 | $ | — | $ | 9,395 | Total assets | $ | 18,870 | $ | 253 | $ | — | $ | 19,123 | |||||||||||||||||||||||||||||||||||||||
Liabilities: | Liabilities: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contingent consideration | — | — | 24,459 | 24,459 | Contingent consideration | — | — | 9,683 | 9,683 | |||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities | $ | — | $ | — | $ | 24,459 | $ | 24,459 | Total liabilities | $ | — | $ | — | $ | 9,683 | $ | 9,683 |
Fair value measurements as of December 31, 2018 | |||||||||||||||
(In thousands) | Quoted prices in active markets for identical assets (Level 1) | Significant other observable inputs (Level 2) | Significant unobservable inputs (Level 3) | Total | |||||||||||
Assets: | |||||||||||||||
Equity securities | 26,313 | — | — | 26,313 | |||||||||||
Common stock options/warrants | — | 855 | — | 855 | |||||||||||
Forward contracts | — | 21 | — | 21 | |||||||||||
Total assets | $ | 26,313 | $ | 876 | $ | — | $ | 27,189 | |||||||
Liabilities: | |||||||||||||||
Contingent consideration | — | — | 24,537 | 24,537 | |||||||||||
Total liabilities | $ | — | $ | — | $ | 24,537 | $ | 24,537 |
September 30, 2019 | |||
(In thousands) | Contingent consideration | ||
Balance at December 31, 2018 | $ | 24,537 | |
Change in fair value: | |||
Included in results of operations | (78 | ) | |
Balance at September 30, 2019 | $ | 24,459 |
June 30, 2020 | |||||||||||||||||
(In thousands) | Contingent consideration | ||||||||||||||||
Balance at December 31, 2019 | $ | 9,683 | |||||||||||||||
Change in fair value: | |||||||||||||||||
Included in results of operations | 251 | ||||||||||||||||
Balance at June 30, 2020 | $ | 9,934 |
(In thousands) | Balance Sheet Component | September 30, 2019 | December 31, 2018 | ||||||
Derivative financial instruments: | |||||||||
Common Stock options/warrants | Investments, net | $ | 120 | $ | 855 | ||||
Forward contracts | Unrealized gains on forward contracts are recorded in Other current assets and prepaid expenses. Unrealized (losses) on forward contracts are recorded in Accrued expenses. | $ | 146 | $ | 21 |
(In thousands) | Balance Sheet Component | June 30, 2020 | December 31, 2019 | ||||||||||||||
Derivative financial instruments: | |||||||||||||||||
Common Stock options/warrants | Investments, net | $ | 51 | $ | 120 | ||||||||||||
Forward contracts | Unrealized gains on forward contracts are recorded in Other current assets and prepaid expenses. Unrealized (losses) on forward contracts are recorded in Accrued expenses. | $ | 215 | $ | 133 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||||||||||||||
(In thousands) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||||||
Derivative gain (loss): | |||||||||||||||||||||||||||||||||||
Common Stock options/warrants | $ | (7) | $ | (392) | $ | (69) | $ | (24) | |||||||||||||||||||||||||||
Forward contracts | (6) | 4 | 677 | 51 | |||||||||||||||||||||||||||||||
Total | $ | (13) | $ | (388) | $ | 608 | $ | 27 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
(In thousands) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Derivative gain (loss): | |||||||||||||||
Common Stock options/warrants | $ | (368 | ) | $ | (288 | ) | $ | (392 | ) | $ | 3,299 | ||||
Forward contracts | 347 | 133 | 398 | 190 | |||||||||||
Total | $ | (21 | ) | $ | (155 | ) | $ | 6 | $ | 3,489 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||||||||||||||
(In thousands) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||||||
Healthcare insurers | $ | 84,082 | $ | 106,278 | $ | 183,232 | $ | 211,207 | |||||||||||||||||||||||||||
Government payers | 15,886 | 28,634 | 42,784 | 59,037 | |||||||||||||||||||||||||||||||
Client payers | 141,090 | 38,101 | 180,191 | 76,559 | |||||||||||||||||||||||||||||||
Patients | 9,913 | 5,445 | 15,604 | 10,546 | |||||||||||||||||||||||||||||||
Total | $ | 250,971 | $ | 178,458 | $ | 421,811 | $ | 357,349 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
(In thousands) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Healthcare insurers | $ | 104,020 | $ | 123,087 | $ | 315,227 | $ | 382,778 | |||||||
Government payers | 28,206 | 37,710 | 87,243 | 115,881 | |||||||||||
Client payers | 43,750 | 36,837 | 120,309 | 114,666 | |||||||||||
Patients | 5,163 | 5,177 | 15,709 | 16,855 | |||||||||||
Total | $ | 181,139 | $ | 202,811 | $ | 538,488 | $ | 630,180 |
(In thousands) | Chargebacks, discounts, rebates and fees | Governmental | Returns | Total | ||||||||||||||||||||||
Balance at March 31, 2020 | $ | 2,863 | $ | 6,199 | $ | 3,332 | $ | 12,394 | ||||||||||||||||||
Provision related to current period sales | 4,468 | 9,073 | 686 | 14,227 | ||||||||||||||||||||||
Credits or payments made | (4,441) | (8,273) | (188) | (12,902) | ||||||||||||||||||||||
Balance at June 30, 2020 | $ | 2,890 | $ | 6,999 | $ | 3,830 | $ | 13,719 | ||||||||||||||||||
Total gross Rayaldee sales | $ | 22,876 | ||||||||||||||||||||||||
Provision for Rayaldee sales allowances and accruals as a percentage of gross Rayaldee sales | 62 | % | ||||||||||||||||||||||||
(In thousands) | Chargebacks, discounts, rebates and fees | Governmental | Returns | Total | ||||||||||||
Balance at June 30, 2019 | $ | 1,412 | $ | 3,828 | $ | 848 | $ | 6,088 | ||||||||
Provision related to current period sales | 3,902 | 7,110 | 983 | 11,995 | ||||||||||||
Adjustment related to prior period sales | 313 | (3 | ) | — | 310 | |||||||||||
Credits or payments made | (3,335 | ) | (4,622 | ) | (277 | ) | (8,234 | ) | ||||||||
Balance at September 30, 2019 | $ | 2,292 | $ | 6,313 | $ | 1,554 | $ | 10,159 | ||||||||
Total gross Rayaldee sales | $ | 19,661 | ||||||||||||||
Provision for Rayaldee sales allowances and accruals as a percentage of gross Rayaldee sales | 63 | % |
(In thousands) | Chargebacks, discounts, rebates and fees | Governmental | Returns | Total | ||||||||||||
Balance at December 31, 2018 | $ | 1,316 | $ | 2,090 | $ | 637 | $ | 4,043 | ||||||||
Provision related to current period sales | 8,922 | 17,009 | 2,363 | 28,294 | ||||||||||||
Adjustment related to prior period sales | — | 99 | — | 99 | ||||||||||||
Credits or payments made | (7,946 | ) | (12,885 | ) | (1,446 | ) | (22,277 | ) | ||||||||
Balance at September 30, 2019 | $ | 2,292 | $ | 6,313 | $ | 1,554 | $ | 10,159 | ||||||||
Total gross Rayaldee sales | $ | 47,241 | ||||||||||||||
Provision for Rayaldee sales allowances and accruals as a percentage of gross Rayaldee sales | 60 | % |
(In thousands) | Chargebacks, discounts, rebates and fees | Governmental | Returns | Total | ||||||||||||||||||||||
Balance at December 31, 2019 | $ | 3,194 | $ | 5,841 | $ | 2,751 | $ | 11,786 | ||||||||||||||||||
Provision related to current period sales | 9,293 | 16,281 | 1,389 | 26,963 | ||||||||||||||||||||||
Credits or payments made | (9,597) | (15,123) | (310) | (25,030) | ||||||||||||||||||||||
Balance at June 30, 2020 | $ | 2,890 | $ | 6,999 | $ | 3,830 | $ | 13,719 | ||||||||||||||||||
Total gross Rayaldee sales | $ | 45,559 | ||||||||||||||||||||||||
Provision for Rayaldee sales allowances and accruals as a percentage of gross Rayaldee sales | 59 | % | ||||||||||||||||||||||||
For the three months ended September 30, | For the nine months ended September 30, | ||||||||||||||
(In thousands) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Revenue from services: | |||||||||||||||
Pharmaceutical | $ | — | $ | — | $ | — | $ | — | |||||||
Diagnostics | 181,139 | 202,811 | 538,488 | 630,180 | |||||||||||
Corporate | — | — | — | — | |||||||||||
$ | 181,139 | $ | 202,811 | $ | 538,488 | $ | 630,180 | ||||||||
Revenue from products: | |||||||||||||||
Pharmaceutical | $ | 26,161 | $ | 25,395 | $ | 80,143 | $ | 81,769 | |||||||
Diagnostics | — | — | — | — | |||||||||||
Corporate | — | — | — | — | |||||||||||
$ | 26,161 | $ | 25,395 | $ | 80,143 | $ | 81,769 | ||||||||
Revenue from transfer of intellectual property and other: | |||||||||||||||
Pharmaceutical | $ | 21,472 | $ | 21,609 | $ | 58,961 | $ | 56,463 | |||||||
Diagnostics | — | — | — | — | |||||||||||
Corporate | — | — | — | — | |||||||||||
$ | 21,472 | $ | 21,609 | $ | 58,961 | $ | 56,463 | ||||||||
Operating loss: | |||||||||||||||
Pharmaceutical | $ | (14,232 | ) | $ | (16,937 | ) | $ | (52,265 | ) | $ | (37,721 | ) | |||
Diagnostics | (16,363 | ) | (11,082 | ) | (77,945 | ) | (17,624 | ) | |||||||
Corporate | (8,416 | ) | (5,445 | ) | (31,378 | ) | (25,839 | ) | |||||||
$ | (39,011 | ) | $ | (33,464 | ) | $ | (161,588 | ) | $ | (81,184 | ) | ||||
Depreciation and amortization: | |||||||||||||||
Pharmaceutical | $ | 7,673 | $ | 7,021 | $ | 22,580 | $ | 20,514 | |||||||
Diagnostics | 16,116 | 16,880 | 48,647 | 52,855 | |||||||||||
Corporate | 16 | 20 | 54 | 71 | |||||||||||
$ | 23,805 | $ | 23,921 | $ | 71,281 | $ | 73,440 | ||||||||
Loss from investment in investees: | |||||||||||||||
Pharmaceutical | $ | (294 | ) | $ | (1,603 | ) | $ | (2,419 | ) | $ | (10,715 | ) | |||
Diagnostics | — | (271 | ) | — | (827 | ) | |||||||||
Corporate | — | — | — | — | |||||||||||
$ | (294 | ) | $ | (1,874 | ) | $ | (2,419 | ) | $ | (11,542 | ) | ||||
Revenues: | |||||||||||||||
United States | $ | 189,485 | $ | 208,646 | $ | 558,688 | $ | 646,492 | |||||||
Ireland | 22,968 | 24,407 | 65,675 | 62,468 | |||||||||||
Chile | 8,436 | 8,926 | 25,352 | 32,596 | |||||||||||
Spain | 4,172 | 4,144 | 13,466 | 14,269 | |||||||||||
Israel | 1,938 | 2,283 | 8,822 | 8,424 | |||||||||||
Mexico | 1,642 | 1,382 | 5,231 | 4,105 | |||||||||||
Other | 131 | 27 | 358 | 58 | |||||||||||
$ | 228,772 | $ | 249,815 | $ | 677,592 | $ | 768,412 |
For the three months ended June 30, | For the six months ended June 30, | ||||||||||||||||||||||||||||||||||
(In thousands) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||||||
Revenue from services: | |||||||||||||||||||||||||||||||||||
Pharmaceutical | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||||||
Diagnostics | 250,971 | 178,458 | 421,811 | 357,349 | |||||||||||||||||||||||||||||||
Corporate | — | — | — | — | |||||||||||||||||||||||||||||||
$ | 250,971 | $ | 178,458 | $ | 421,811 | $ | 357,349 | ||||||||||||||||||||||||||||
Revenue from products: | |||||||||||||||||||||||||||||||||||
Pharmaceutical | $ | 29,356 | $ | 28,680 | $ | 60,430 | $ | 53,981 | |||||||||||||||||||||||||||
Diagnostics | — | — | — | — | |||||||||||||||||||||||||||||||
Corporate | — | — | — | — | |||||||||||||||||||||||||||||||
$ | 29,356 | $ | 28,680 | $ | 60,430 | $ | 53,981 | ||||||||||||||||||||||||||||
Revenue from transfer of intellectual property and other: | |||||||||||||||||||||||||||||||||||
Pharmaceutical | $ | 14,686 | $ | 19,230 | $ | 24,239 | $ | 37,490 | |||||||||||||||||||||||||||
Diagnostics | 6,194 | — | 6,194 | — | |||||||||||||||||||||||||||||||
Corporate | — | — | — | — | |||||||||||||||||||||||||||||||
$ | 20,880 | $ | 19,230 | $ | 30,433 | $ | 37,490 | ||||||||||||||||||||||||||||
Operating loss: | |||||||||||||||||||||||||||||||||||
Pharmaceutical | $ | (5,996) | $ | (8,556) | $ | (20,121) | $ | (38,033) | |||||||||||||||||||||||||||
Diagnostics | 40,935 | (28,013) | 22,803 | (61,582) | |||||||||||||||||||||||||||||||
Corporate | (7,760) | (10,691) | (16,263) | (22,962) | |||||||||||||||||||||||||||||||
$ | 27,179 | $ | (47,260) | $ | (13,581) | $ | (122,577) | ||||||||||||||||||||||||||||
Depreciation and amortization: | |||||||||||||||||||||||||||||||||||
Pharmaceutical | $ | 7,119 | $ | 7,382 | $ | 14,240 | $ | 14,908 | |||||||||||||||||||||||||||
Diagnostics | 15,147 | 16,260 | 30,019 | 32,530 | |||||||||||||||||||||||||||||||
Corporate | — | 19 | 59 | 39 | |||||||||||||||||||||||||||||||
$ | 22,266 | $ | 23,661 | $ | 44,318 | $ | 47,477 | ||||||||||||||||||||||||||||
Loss from investment in investees: | |||||||||||||||||||||||||||||||||||
Pharmaceutical | $ | (189) | $ | (271) | $ | (323) | $ | (2,125) | |||||||||||||||||||||||||||
Diagnostics | — | — | — | — | |||||||||||||||||||||||||||||||
Corporate | — | — | — | — | |||||||||||||||||||||||||||||||
$ | (189) | $ | (271) | $ | (323) | $ | (2,125) | ||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||
United States | $ | 265,890 | $ | 184,310 | $ | 446,761 | $ | 369,203 | |||||||||||||||||||||||||||
Ireland | 16,847 | 22,174 | 28,749 | 42,707 | |||||||||||||||||||||||||||||||
Chile | 11,152 | 9,051 | 22,002 | 16,915 | |||||||||||||||||||||||||||||||
Spain | 4,136 | 4,876 | 8,292 | 9,294 | |||||||||||||||||||||||||||||||
Israel | 1,183 | 3,768 | 2,890 | 6,884 | |||||||||||||||||||||||||||||||
Mexico | 1,866 | 2,058 | 3,708 | 3,589 | |||||||||||||||||||||||||||||||
Other | 133 | 131 | 272 | 228 | |||||||||||||||||||||||||||||||
$ | 301,207 | $ | 226,368 | $ | 512,674 | $ | 448,820 |
(In thousands) | June 30, 2020 | December 31, 2019 | |||||||||
Assets: | |||||||||||
Pharmaceutical | $ | 1,148,151 | $ | 1,174,639 | |||||||
Diagnostics | 1,121,202 | 1,035,112 | |||||||||
Corporate | 54,381 | 99,521 | |||||||||
$ | 2,323,734 | $ | 2,309,272 | ||||||||
Goodwill: | |||||||||||
Pharmaceutical | $ | 236,790 | $ | 237,131 | |||||||
Diagnostics | 434,809 | 434,809 | |||||||||
Corporate | — | — | |||||||||
$ | 671,599 | $ | 671,940 |
(In thousands) | September 30, 2019 | December 31, 2018 | |||||
Assets: | |||||||
Pharmaceutical | $ | 1,235,513 | $ | 1,236,499 | |||
Diagnostics | 1,114,485 | 1,162,160 | |||||
Corporate | 19,520 | 52,413 | |||||
$ | 2,369,518 | $ | 2,451,072 | ||||
Goodwill: | |||||||
Pharmaceutical | $ | 243,011 | $ | 247,407 | |||
Diagnostics | 452,787 | 452,786 | |||||
Corporate | — | — | |||||
$ | 695,798 | $ | 700,193 |
(in thousands) | Classification on the Balance Sheet | June 30, 2020 | December 31, 2019 | |||||||||||||||||
Assets | ||||||||||||||||||||
Operating lease assets | Operating lease right-of-use assets | $ | 38,469 | $ | 39,380 | |||||||||||||||
Finance lease assets | Property, plant and equipment, net | 5,395 | 6,789 | |||||||||||||||||
Liabilities | ||||||||||||||||||||
Current | ||||||||||||||||||||
Operating lease liabilities | Current maturities of operating leases | 10,298 | 12,038 | |||||||||||||||||
Accrued expenses | Current maturities of finance leases | 2,435 | 2,743 | |||||||||||||||||
Long-term | ||||||||||||||||||||
Operating lease liabilities | Operating lease liabilities | 28,759 | 27,665 | |||||||||||||||||
Other long-term liabilities | Finance lease liabilities | $ | 2,960 | $ | 4,046 | |||||||||||||||
Weighted average remaining lease term | ||||||||||||||||||||
Operating leases | 5.7 years | 5.6 years | ||||||||||||||||||
Finance leases | 2.5 years | 2.6 years | ||||||||||||||||||
Weighted average discount rate | ||||||||||||||||||||
Operating leases | 6.4 | % | 6.3 | % | ||||||||||||||||
Finance leases | 3.9 | % | 3.0 | % |
(in thousands) | Classification on the Balance Sheet | September 30, 2019 | ||||
Assets | ||||||
Operating lease assets | Operating lease right-of-use assets | $ | 35,826 | |||
Finance lease assets | Property, plant and equipment, net | 7,308 | ||||
Liabilities | ||||||
Current | ||||||
Operating lease liabilities | Current maturities of operating leases | 12,921 | ||||
Accrued expenses | Current maturities of finance leases | 2,983 | ||||
Long-term | ||||||
Operating lease liabilities | Operating lease liabilities | 23,318 | ||||
Other long-term liabilities | Finance lease liabilities | $ | 4,325 | |||
Weighted average remaining lease term | ||||||
Operating leases | 2.6 years | |||||
Finance leases | 2.4 years | |||||
Weighted average discount rate | ||||||
Operating leases | 5.7 | % | ||||
Finance leases | 4.9 | % |
(in thousands) | Operating | Finance | |||||
October 1, 2019 through December 31, 2019 | $ | 3,938 | $ | 923 | |||
2020 | 11,929 | 2,845 | |||||
2021 | 8,471 | 2,133 | |||||
2022 | 5,700 | 1,077 | |||||
2023 | 4,294 | 486 | |||||
Thereafter | 7,215 | 203 | |||||
Total undiscounted future minimum lease payments | 41,547 | 7,667 | |||||
Less: Difference between lease payments and discounted lease liabilities | 5,308 | 360 | |||||
Total lease liabilities | $ | 36,239 | $ | 7,307 |
(in thousands) | Operating | Finance | |||||||||
July 1, 2020 through December 31, 2020 | $ | 6,604 | $ | 1,404 | |||||||
2021 | 7,479 | 2,186 | |||||||||
2022 | 6,506 | 1,175 | |||||||||
2023 | 5,845 | 590 | |||||||||
2024 | 4,671 | 249 | |||||||||
Thereafter | 17,374 | — | |||||||||
Total undiscounted future minimum lease payments | 48,479 | 5,604 | |||||||||
Less: Difference between lease payments and discounted lease liabilities | 9,422 | 209 | |||||||||
Total lease liabilities | $ | 39,057 | $ | 5,395 |
(in thousands) | For the six months ended June 30, | ||||||||||||||||
2020 | 2019 | ||||||||||||||||
Operating cash out flows from operating leases | $ | 9,804 | $ | 10,804 | |||||||||||||
Operating cash out flows from finance leases | 86 | 234 | |||||||||||||||
Financing cash out flows from finance leases | 1,026 | 1,590 | |||||||||||||||
Total | $ | 10,916 | $ | 12,628 | |||||||||||||
(in thousands) | Nine months ended September 30, 2019 | |||
Operating cash out flows from operating leases | $ | 15,664 | ||
Operating cash out flows from finance leases | 306 | |||
Financing cash out flows from finance leases | 2,165 | |||
Total | $ | 18,135 |
For the three months ended June 30, | |||||||||||||||||
(In thousands) | 2020 | 2019 | Change | ||||||||||||||
Revenues: | |||||||||||||||||
Revenue from services | $ | 250,971 | $ | 178,458 | $ | 72,513 | |||||||||||
Revenue from products | 29,356 | 28,680 | 676 | ||||||||||||||
Revenue from transfer of intellectual property and other | 20,880 | 19,230 | 1,650 | ||||||||||||||
Total revenues | 301,207 | 226,368 | 74,839 | ||||||||||||||
Costs and expenses: | |||||||||||||||||
Cost of revenue | 162,651 | 144,223 | 18,428 | ||||||||||||||
Selling, general and administrative | 77,721 | 88,475 | (10,754) | ||||||||||||||
Research and development | 17,608 | 28,286 | (10,678) | ||||||||||||||
Contingent Consideration | 1,111 | (3,775) | 4,886 | ||||||||||||||
Amortization of intangible assets | 14,937 | 16,419 | (1,482) | ||||||||||||||
Total costs and expenses | 274,028 | 273,628 | 400 | ||||||||||||||
Income (loss) from operations | 27,179 | (47,260) | 74,439 |
Revenues | For the three months ended September 30, | ||||||||||
(In thousands) | 2019 | 2018 | Change | ||||||||
Revenue from services | $ | 181,139 | $ | 202,811 | $ | (21,672 | ) | ||||
Revenue from products | 26,161 | 25,395 | 766 | ||||||||
Revenue from transfer of intellectual property and other | 21,472 | 21,609 | (137 | ) | |||||||
Total revenues | $ | 228,772 | $ | 249,815 | $ | (21,043 | ) |
For the three months ended June 30, | |||||||||||||||||
(In thousands) | 2020 | 2019 | Change | ||||||||||||||
Revenues | |||||||||||||||||
Revenue from services | $ | 250,971 | $ | 178,458 | $ | 72,513 | |||||||||||
Revenue from transfer of intellectual property and other | 6,194 | — | 6,194 | ||||||||||||||
Total revenues | 257,165 | 178,458 | 78,707 | ||||||||||||||
Costs and expenses: | |||||||||||||||||
Cost of revenue | 144,783 | 129,802 | 14,981 | ||||||||||||||
Selling, general and administrative | 57,712 | 62,322 | (4,610) | ||||||||||||||
Research and development | 3,785 | 3,458 | 327 | ||||||||||||||
Contingent Consideration | 35 | 91 | (56) | ||||||||||||||
Amortization of intangible assets | 9,915 | 10,798 | (883) | ||||||||||||||
Total costs and expenses | 216,230 | 206,471 | 9,759 | ||||||||||||||
Income (loss) from operations | 40,935 | (28,013) | 68,948 |
Three months ended June 30, | |||||||||||||||||||||||||||||
(In thousands) | 2020 | 2019 | |||||||||||||||||||||||||||
Healthcare insurers | $ | 84,082 | $ | 106,278 | |||||||||||||||||||||||||
Government payers | 15,886 | 28,634 | |||||||||||||||||||||||||||
Client payers | 141,090 | 38,101 | |||||||||||||||||||||||||||
Patients | 9,913 | 5,445 | |||||||||||||||||||||||||||
Total | $ | 250,971 | $ | 178,458 | |||||||||||||||||||||||||
Three months ended September 30, | |||||||
(In thousands) | 2019 | 2018 | |||||
Healthcare insurers | $ | 104,020 | $ | 123,087 | |||
Government payers | 28,206 | 37,710 | |||||
Client payers | 43,750 | 36,837 | |||||
Patients | 5,163 | 5,177 | |||||
Total | $ | 181,139 | $ | 202,811 |
Research and Development Expenses | For the three months ended June 30, | ||||||||||||||||
2020 | 2019 | ||||||||||||||||
External expenses: | |||||||||||||||||
PMA studies | $ | 57 | $ | 110 | |||||||||||||
Research and development employee-related expenses | 2,163 | 2,098 | |||||||||||||||
Other internal research and development expenses | 1,565 | 1,250 | |||||||||||||||
Total research and development expenses | $ | 3,785 | $ | 3,458 |
For the three months ended June 30, | |||||||||||||||||
(In thousands) | 2020 | 2019 | Change | ||||||||||||||
Revenues: | |||||||||||||||||
Revenue from products | $ | 29,356 | $ | 28,680 | $ | 676 | |||||||||||
Revenue from transfer of intellectual property and other | 14,686 | 19,230 | (4,544) | ||||||||||||||
Total revenues | 44,042 | 47,910 | (3,868) | ||||||||||||||
Costs and expenses: | |||||||||||||||||
Cost of revenue | 17,881 | 14,475 | 3,406 | ||||||||||||||
Selling, general and administrative | 12,008 | 15,207 | (3,199) | ||||||||||||||
Research and development | 14,051 | 25,029 | (10,978) | ||||||||||||||
Contingent Consideration | 1,076 | (3,866) | 4,942 | ||||||||||||||
Amortization of intangible assets | 5,022 | 5,621 | (599) | ||||||||||||||
Total costs and expenses | 50,038 | 56,466 | (6,428) | ||||||||||||||
Loss from operations | (5,996) | (8,556) | 2,560 |
Cost of Revenue | For the three months ended September 30, | |||||||||
(In thousands) | 2019 | 2018 | Change | |||||||
Cost of service revenue | $ | 126,348 | $ | 137,347 | $ | (10,999 | ) | |||
Cost of product revenue | 15,573 | 13,609 | 1,964 | |||||||
Total cost of revenue | $ | 141,921 | $ | 150,956 | $ | (9,035 | ) |
Research and Development Expenses | For the three months ended June 30, | ||||||||||||||||
2020 | 2019 | ||||||||||||||||
External expenses: | |||||||||||||||||
Manufacturing expense for biological products | $ | (309) | $ | 10,426 | |||||||||||||
Phase III studies | 2,297 | 4,155 | |||||||||||||||
Post-marketing studies | 282 | 239 | |||||||||||||||
Earlier-stage programs | 3,964 | 3,066 | |||||||||||||||
Research and development employee-related expenses | 4,886 | 4,753 | |||||||||||||||
Other internal research and development expenses | 2,931 | 2,348 | |||||||||||||||
Third-party grants and funding from collaboration agreements | — | 42 | |||||||||||||||
Total research and development expenses | $ | 14,051 | $ | 25,029 |
Research and Development Expenses | For the three months ended September 30, | ||||||
2019 | 2018 | ||||||
External expenses: | |||||||
Manufacturing expense for biological products | $ | 12,708 | $ | 9,087 | |||
Phase III studies | 6,862 | 9,889 | |||||
Earlier-stage programs | 1,635 | 6,848 | |||||
Research and development employee-related expenses | 3,745 | 3,027 | |||||
Other internal research and development expenses | 5,067 | 2,149 | |||||
Third-party grants and funding from collaboration agreements | — | (840 | ) | ||||
Total research and development expenses | $ | 30,017 | $ | 30,160 |
For the three months ended June 30, | |||||||||||||||||
(In thousands) | 2020 | 2019 | Change | ||||||||||||||
Cost of revenue | $ | (14) | $ | (56) | 42 | ||||||||||||
Selling, general and administrative | 8,002 | 10,947 | (2,945) | ||||||||||||||
Research and development | (228) | (200) | (28) | ||||||||||||||
Total costs and expenses | 7,760 | 10,691 | (2,931) | ||||||||||||||
Loss from operations | (7,760) | (10,691) | 2,931 |
For the six months ended June 30, | |||||||||||||||||
(In thousands) | 2020 | 2019 | Change | ||||||||||||||
Revenues: | |||||||||||||||||
Revenue from services | $ | 421,811 | $ | 357,349 | $ | 64,462 | |||||||||||
Revenue from products | 60,430 | 53,981 | 6,449 | ||||||||||||||
Revenue from transfer of intellectual property and other | 30,433 | 37,490 | (7,057) | ||||||||||||||
Total revenues | 512,674 | 448,820 | 63,854 | ||||||||||||||
Costs and expenses: | |||||||||||||||||
Cost of revenue | 302,909 | 288,281 | 14,628 | ||||||||||||||
Selling, general and administrative | 153,852 | 183,633 | (29,781) | ||||||||||||||
Research and development | 39,369 | 64,816 | (25,447) | ||||||||||||||
Contingent Consideration | 251 | 1,031 | (780) | ||||||||||||||
Amortization of intangible assets | 29,874 | 32,981 | (3,107) | ||||||||||||||
Asset impairment charges | — | 655 | (655) | ||||||||||||||
Total costs and expenses | 526,255 | 571,397 | (45,142) | ||||||||||||||
Income (loss) from operations | (13,581) | (122,577) | 108,996 |
For the six months ended June 30, | |||||||||||||||||
(In thousands) | 2020 | 2019 | Change | ||||||||||||||
Revenues | |||||||||||||||||
Revenue from services | $ | 421,811 | $ | 357,349 | $ | 64,462 | |||||||||||
Revenue from transfer of intellectual property and other | 6,194 | — | 6,194 | ||||||||||||||
Total revenues | 428,005 | 357,349 | 70,656 | ||||||||||||||
Costs and expenses: | |||||||||||||||||
Cost of revenue | 267,689 | 259,715 | 7,974 | ||||||||||||||
Selling, general and administrative | 110,436 | 129,787 | (19,351) | ||||||||||||||
Research and development | 7,178 | 7,251 | (73) | ||||||||||||||
Contingent Consideration | 68 | 583 | (515) | ||||||||||||||
Amortization of intangible assets | 19,831 | 21,595 | (1,764) | ||||||||||||||
Total costs and expenses | 405,202 | 418,931 | (13,729) | ||||||||||||||
Income (loss) from operations | 22,803 | (61,582) | 84,385 |
Six months ended June 30, | |||||||||||||||||||||||||||||
(In thousands) | 2020 | 2019 | |||||||||||||||||||||||||||
Healthcare insurers | $ | 183,232 | $ | 211,207 | |||||||||||||||||||||||||
Government payers | 42,784 | 59,037 | |||||||||||||||||||||||||||
Client payers | 180,191 | 76,559 | |||||||||||||||||||||||||||
Patients | 15,604 | 10,546 | |||||||||||||||||||||||||||
Total | $ | 421,811 | $ | 357,349 | |||||||||||||||||||||||||
Research and Development Expenses | Six months ended June 30, | ||||||||||||||||
2020 | 2019 | ||||||||||||||||
External expenses: | |||||||||||||||||
PMA studies | $ | 111 | $ | 171 | |||||||||||||
Research and development employee-related expenses | 4,373 | 3,533 | |||||||||||||||
Other internal research and development expenses | 2,694 | 3,547 | |||||||||||||||
Total research and development expenses | $ | 7,178 | $ | 7,251 | |||||||||||||
For the six months ended June 30, | |||||||||||||||||
(In thousands) | 2020 | 2019 | Change | ||||||||||||||
Revenues: | |||||||||||||||||
Revenue from products | $ | 60,430 | $ | 53,981 | $ | 6,449 | |||||||||||
Revenue from transfer of intellectual property and other | 24,239 | 37,490 | (13,251) | ||||||||||||||
Total revenues | 84,669 | 91,471 | (6,802) | ||||||||||||||
Costs and expenses: | |||||||||||||||||
Cost of revenue | 35,292 | 28,713 | 6,579 | ||||||||||||||
Selling, general and administrative | 26,670 | 30,233 | (3,563) | ||||||||||||||
Research and development | 32,602 | 58,069 | (25,467) | ||||||||||||||
Contingent Consideration | 183 | 448 | (265) | ||||||||||||||
Amortization of intangible assets | 10,043 | 11,386 | (1,343) | ||||||||||||||
Asset impairment charges | — | 655 | (655) | ||||||||||||||
Total costs and expenses | 104,790 | 129,504 | (24,714) | ||||||||||||||
Loss from operations | (20,121) | (38,033) | 17,912 |
Research and Development Expenses | For the six months ended June 30, | ||||||||||||||||
2020 | 2019 | ||||||||||||||||
External expenses: | |||||||||||||||||
Manufacturing expense for biological products | $ | 2,728 | $ | 20,111 | |||||||||||||
Phase III studies | 5,339 | 9,580 | |||||||||||||||
Post-marketing studies | 1,122 | 603 | |||||||||||||||
Earlier-stage programs | 7,568 | 13,159 | |||||||||||||||
Research and development employee-related expenses | 11,268 | 11,021 | |||||||||||||||
Other internal research and development expenses | 4,577 | 3,972 | |||||||||||||||
Third-party grants and funding from collaboration agreements | — | (377) | |||||||||||||||
Total research and development expenses | $ | 32,602 | $ | 58,069 |
For the six months ended June 30, | |||||||||||||||||
(In thousands) | 2020 | 2019 | Change | ||||||||||||||
Cost of revenue | $ | (72) | $ | (148) | 76 | ||||||||||||
Selling, general and administrative | 16,746 | 23,614 | (6,868) | ||||||||||||||
Research and development | (411) | (504) | 93 | ||||||||||||||
Total costs and expenses | 16,263 | 22,962 | (6,699) | ||||||||||||||
Loss from operations | (16,263) | (22,962) | 6,699 |
Revenues | For the nine months ended September 30, | ||||||||||
(In thousands) | 2019 | 2018 | Change | ||||||||
Revenue from services | $ | 538,488 | $ | 630,180 | $ | (91,692 | ) | ||||
Revenue from products | 80,143 | 81,769 | (1,626 | ) | |||||||
Revenue from transfer of intellectual property and other | 58,961 | 56,463 | 2,498 | ||||||||
Total revenues | $ | 677,592 | $ | 768,412 | $ | (90,820 | ) |
For the nine months ended September 30, | |||||||
(In thousands) | 2019 | 2018 | |||||
Healthcare insurers | $ | 315,227 | $ | 382,778 | |||
Government payers | 87,243 | 115,881 | |||||
Client payers | 120,309 | 114,666 | |||||
Patients | 15,709 | 16,855 | |||||
Total | $ | 538,488 | $ | 630,180 |
Cost of Revenue | For the nine months ended September 30, | |||||||||
(In thousands) | 2019 | 2018 | Change | |||||||
Cost of service revenue | $ | 386,329 | $ | 411,196 | $ | (24,867 | ) | |||
Cost of product revenue | 43,874 | 43,909 | (35 | ) | ||||||
Total cost of revenue | $ | 430,203 | $ | 455,105 | $ | (24,902 | ) |
Research and Development Expenses | For the nine months ended September 30, | ||||||
2019 | 2018 | ||||||
External expenses: | |||||||
Manufacturing expense for biological products | $ | 32,819 | $ | 21,028 | |||
Phase III studies | 17,256 | 22,149 | |||||
Earlier-stage programs | 5,074 | 14,245 | |||||
Research and development employee-related expenses | 18,299 | 19,683 | |||||
Other internal research and development expenses | 21,761 | 15,993 | |||||
Third-party grants and funding from collaboration agreements | (377 | ) | (840 | ) | |||
Total research and development expenses | $ | 94,832 | $ | 92,258 |
Contractual obligations (In thousands) | Remaining three months ending December 31, 2019 | 2020 | 2021 | 2022 | 2023 | Thereafter | Total | Contractual obligations (In thousands) | Remaining six months ending December 31, 2020 | 2021 | 2022 | 2023 | 2024 | Thereafter | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Open purchase orders | $ | 74,836 | $ | 2,589 | $ | 34 | $ | 9 | $ | — | $ | — | $ | 77,468 | Open purchase orders | $ | 153,623 | $ | 506 | $ | 35 | $ | — | $ | — | $ | — | $ | 154,164 | |||||||||||||||||||||||||||||||||||||||||||
Operating leases | 3,915 | 11,491 | 7,698 | 4,858 | 3,447 | 4,829 | 36,238 | Operating leases | 6,392 | 7,137 | 5,938 | 5,001 | 3,735 | 10,856 | 39,059 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Finance leases | 762 | 2,729 | 2,077 | 1,056 | 481 | 203 | 7,308 | Finance leases | 1,298 | 2,121 | 1,147 | 581 | 247 | — | 5,394 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2033 Senior Notes, 2025 and 2023 Convertible Notes | — | — | — | — | 3,050 | 201,260 | 204,310 | 2033 Senior Notes, 2025 and 2023 Convertible Notes | — | — | — | — | 3,050 | 207,017 | 210,067 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred payments | 8,750 | 7,500 | 7,500 | 3,575 | — | — | 27,325 | Deferred payments | 5,625 | 7,500 | 2,994 | — | — | — | 16,119 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgages and other debts payable | 747 | 723 | 692 | 490 | 300 | 238 | 3,190 | Mortgages and other debts payable | 1,209 | 944 | 739 | 547 | 458 | 86 | 3,983 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lines of credit | 5,484 | 50,644 | — | — | — | — | 56,128 | Lines of credit | 12,048 | 51,489 | — | — | — | — | 63,537 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest commitments | 19 | 662 | 34 | 20 | 317 | 61,807 | 62,859 | Interest commitments | 340 | 300 | 283 | 14,016 | 259 | 41,389 | 56,587 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 94,513 | $ | 76,338 | $ | 18,035 | $ | 10,008 | $ | 7,595 | $ | 268,337 | $ | 474,826 | Total | $ | 180,535 | $ | 69,997 | $ | 11,136 | $ | 20,145 | $ | 7,749 | $ | 259,348 | $ | 548,910 |
Exhibit 101.INS | Inline XBRL Instance Document | ||||
Exhibit 101.SCH | Inline XBRL Taxonomy Extension Schema Document | ||||
Exhibit 101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | ||||
Exhibit 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | ||||
Exhibit 101.LAB | inline XBRL Taxonomy Extension Label Linkbase Document | ||||
Exhibit 101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | ||||
Exhibit 104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
* Pursuant to Item 601(b)(10)(iv) of Regulation S-K, portions of this exhibit have been omitted because such portions are both not material and would likely cause competitive harm to the Company if publicly disclosed.The Company will supplementally provide a copy of an unredacted copy of this exhibit to the U.S. Securities and Exchange Commission or its staff upon request. ** Furnished herewith. |
Date: July 31, 2020 | OPKO Health, Inc. | |||||||
/s/ Adam Logal | ||||||||
Adam Logal | ||||||||
Senior Vice President and Chief Financial | ||||||||