Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Oct. 31, 2014 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Trading Symbol | 'MDVN | ' |
Entity Registrant Name | 'MEDIVATION, INC. | ' |
Entity Central Index Key | '0001011835 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 77,624,659 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $321,053 | $228,788 |
Receivable from collaboration partner | 208,090 | 107,210 |
Prepaid expenses and other current assets | 20,918 | 17,981 |
Restricted cash | 410 | ' |
Total current assets | 550,471 | 353,979 |
Property and equipment, net | 41,075 | 17,035 |
Restricted cash | 11,562 | 9,899 |
Other non-current assets | 15,076 | 11,737 |
Total assets | 618,184 | 392,650 |
Current liabilities: | ' | ' |
Accounts payable, accrued expenses and other current liabilities | 109,060 | 78,758 |
Deferred revenue | 4,233 | 16,931 |
Current portion of build-to-suit lease obligation | 781 | ' |
Total current liabilities | 114,074 | 95,689 |
Convertible Notes, net of unamortized discount of $40,187 and $50,336 at September 30, 2014, and December 31, 2013, respectively | 218,555 | 208,414 |
Build-to-suit lease obligation, excluding current portion | 18,249 | ' |
Other non-current liabilities | 18,060 | 11,600 |
Total liabilities | 368,938 | 315,703 |
Commitments and contingencies (Note 12) | ' | ' |
Stockholders' equity: | ' | ' |
Preferred stock, $0.01 par value per share; 1,000,000 shares authorized; no shares issued and outstanding | ' | ' |
Common stock, $0.01 par value per share; 170,000,000 shares authorized; 77,567,195 and 75,803,020 shares issued and outstanding at September 30, 2014, and December 31, 2013, respectively | 776 | 758 |
Additional paid-in capital | 470,384 | 410,350 |
Accumulated deficit | -221,914 | -334,161 |
Total stockholders' equity | 249,246 | 76,947 |
Total liabilities and stockholders' equity | $618,184 | $392,650 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Convertible Notes, discount | $40,187 | $50,336 |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 170,000,000 | 170,000,000 |
Common stock, shares issued | 77,567,195 | 75,803,020 |
Common stock, shares outstanding | 77,567,195 | 75,803,020 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Income Statement [Abstract] | ' | ' | ' | ' |
Collaboration revenue | $200,478 | $60,027 | $435,757 | $176,330 |
Operating expenses: | ' | ' | ' | ' |
Research and development expenses | 45,430 | 28,737 | 131,693 | 81,850 |
Selling, general and administrative expenses | 63,165 | 39,288 | 165,695 | 124,746 |
Total operating expenses | 108,595 | 68,025 | 297,388 | 206,596 |
Income (loss) from operations | 91,883 | -7,998 | 138,369 | -30,266 |
Other income (expense), net: | ' | ' | ' | ' |
Interest expense | -5,535 | -5,165 | -16,101 | -15,035 |
Interest income | 9 | 40 | 26 | 166 |
Other income (expense), net | 55 | -132 | -76 | -123 |
Total other income (expense), net | -5,471 | -5,257 | -16,151 | -14,992 |
Income (loss) before income tax expense | 86,412 | -13,255 | 122,218 | -45,258 |
Income tax expense | -8,419 | -58 | -9,971 | -123 |
Net income (loss) | $77,993 | ($13,313) | $112,247 | ($45,381) |
Basic net income (loss) per common share | $1.01 | ($0.18) | $1.46 | ($0.60) |
Diluted net income (loss) per common share | $0.96 | ($0.18) | $1.39 | ($0.60) |
Weighted average common shares used in the calculation of basic net income (loss) per common share | 77,056 | 75,255 | 76,629 | 75,032 |
Weighted average common shares used in the calculation of diluted net income (loss) per common share | 81,223 | 75,255 | 80,724 | 75,032 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net income (loss) | $77,993 | ($13,313) | $112,247 | ($45,381) |
Other comprehensive income (loss): | ' | ' | ' | ' |
Change in unrealized gain on available-for-sale securities, net | ' | 6 | ' | -15 |
Other comprehensive income (loss), net | ' | 6 | ' | -15 |
Comprehensive income (loss) | $77,993 | ($13,307) | $112,247 | ($45,396) |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Cash flows from operating activities: | ' | ' |
Net income (loss) | $112,247 | ($45,381) |
Adjustments for non-cash operating items: | ' | ' |
Stock-based compensation | 32,799 | 25,628 |
Amortization of deferred revenue | -12,698 | -21,163 |
Amortization of debt discount and debt issuance costs | 11,007 | 9,941 |
Depreciation on property and equipment | 3,603 | 2,474 |
Asset impairment and other charges | 1,112 | 35 |
Excess tax benefits from stock-based compensation | -362 | ' |
Accretion of discount on securities | ' | -148 |
Changes in operating assets and liabilities: | ' | ' |
Receivable from collaboration partner | -100,880 | -32,126 |
Prepaid expenses and other current assets | 3,599 | -6,567 |
Other non-current assets | -4,289 | -1,468 |
Accounts payable, accrued expenses and other current liabilities | 28,460 | 14,484 |
Interest payable | 1,698 | 1,698 |
Other non-current liabilities | 16 | -239 |
Net cash provided by (used in) operating activities | 76,312 | -52,832 |
Cash flows from investing activities: | ' | ' |
Purchases of property and equipment | -9,223 | -6,321 |
Change in restricted cash | -2,073 | -713 |
Purchases of short-term investments | ' | -144,926 |
Maturities of short-term investments | ' | 285,000 |
Net cash (used in) provided by investing activities | -11,296 | 133,040 |
Cash flows from financing activities: | ' | ' |
Proceeds from issuance of common stock under equity incentive and stock purchase plans | 26,891 | 6,459 |
Excess tax benefits from stock-based compensation | 362 | ' |
Repayment of Convertible Notes | -4 | ' |
Net cash provided by financing activities | 27,249 | 6,459 |
Net increase in cash and cash equivalents | 92,265 | 86,667 |
Cash and cash equivalents at beginning of period | 228,788 | 71,301 |
Cash and cash equivalents at end of period | 321,053 | 157,968 |
Non-cash investing and financing activities: | ' | ' |
Amounts capitalized under build-to-suit lease transactions | 18,085 | ' |
Interest capitalized during construction period for build-to-suit lease transactions | 945 | ' |
Property and equipment expenditures incurred but not yet paid | $355 | $23 |
Description_of_Business
Description of Business | 9 Months Ended |
Sep. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Description of Business | ' |
NOTE 1 — DESCRIPTION OF BUSINESS | |
Medivation, Inc. (the “Company” or “Medivation”) is a biopharmaceutical company focused on the rapid development and commercialization of medically innovative therapies to treat serious diseases for which there are limited treatment options. | |
The Company’s most advanced program is XTANDI® (enzalutamide) capsules, or XTANDI, which is partnered with Astellas Pharma Inc., or Astellas. On August 31, 2012, XTANDI received marketing approval from the U.S. Food and Drug Administration, or FDA, for the treatment of metastatic castration-resistant prostate cancer, or mCRPC, patients who previously received docetaxel, or post-chemotherapy mCRPC patients. The Company and Astellas began co-promoting XTANDI for that indication in the United States on September 13, 2012. On June 24, 2013, the Company and Astellas announced that XTANDI was granted marketing authorization in the European Union, or EU, for the treatment of adult men with mCRPC whose disease has progressed on or after docetaxel therapy. On March 24, 2014, the Company’s partner, Astellas, announced that it received approval to market XTANDI in Japan for the treatment of patients with castration-resistant prostate cancer, or CRPC, with the precaution that the efficacy and safety of the drug have not been established in patients with prostate cancer who have not received chemotherapy. XTANDI is approved in more than 45 countries for the post-docetaxel indication and marketing applications for this indication are under review in multiple countries worldwide. | |
On September 10, 2014, the FDA approved a new indication for the use of XTANDI to treat patients with mCRPC who have not received chemotherapy. This new approved use follows a priority review of the supplemental New Drug Application, or sNDA, submission to the FDA that was based on the results of the Company’s Phase 3 PREVAIL trial. In October 2014, in Japan, the item “Precautions relating to indications” of the package insert has been revised based on the results of the PREVAIL trial, which means the sentence, “The efficacy and safety of the drug have not been established in patients with prostate cancer who have not received chemotherapy,” has been deleted. The revision of this item of the XTANDI package insert in Japan triggers a $45.0 million milestone payment to the Company, which will be recognized as collaboration revenue in the fourth quarter of 2014. Then, on October 24, 2014, the Committee for Medicinal Products for Human Use of the European Medicines Agency adopted a positive opinion recommending a variation to amend the European Marketing Authorisation for XTANDI. The positive opinion relates to the use of enzalutamide for the treatment of adult men with mCRPC who are asymptomatic or mildly symptomatic after failure of androgen deprivation therapy and in whom chemotherapy is not yet clinically indicated. If the European Medicines Agency amends the European Marketing Authorisation for XTANDI, the Company will earn the final development milestone payment from Astellas under the Astellas Collaboration Agreement, totaling $45.0 million. | |
Together with Astellas, the Company is also conducting multiple trials of enzalutamide to further develop enzalutamide in the prostate cancer disease continuum, and also in breast cancer. | |
In addition, the Company is investing in programs where there is an unmet medical need. The Company’s research and drug discovery projects focus on diseases, including cancer for which it believes new therapies can substantially improve the current standard of care. | |
On October 23, 2014, the Company announced that it licensed exclusive worldwide rights to CureTech, Ltd.’s late-stage clinical molecule pidilizumab (CT-011), an immune modulatory anti PD-1 monoclonal antibody, for potential applications, including in oncology. Additional information regarding the agreement with CureTech, Ltd. is included in Note 13, “Subsequent Event.” |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Summary of Significant Accounting Policies | ' |
NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
(a) Basis of Presentation and Principles of Consolidation | |
The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States, or U.S. GAAP, for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The unaudited consolidated financial statements have been prepared on the same basis as the annual audited consolidated financial statements. In the opinion of management, all adjustments, consisting of normal recurring adjustments necessary for the fair statement of the Company’s financial condition, results of operations and cash flows for the periods presented, have been included. The results of operations of any interim period are not necessarily indicative of the results of operations for the full year or any other interim period. | |
The unaudited consolidated financial statements and related disclosures have been prepared with the presumption that users of the interim unaudited consolidated financial statements have read or have access to the audited consolidated financial statements for the preceding year. Accordingly, these unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2013, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013, or the Annual Report, filed with the U.S. Securities and Exchange Commission, or SEC, on February 27, 2014. The consolidated balance sheet at December 31, 2013, has been derived from the audited consolidated financial statements at that date. | |
The unaudited consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. The Company operates in one business segment. | |
All tabular disclosures of dollar and share amounts are presented in thousands unless otherwise indicated. All per share amounts are presented at their actual amounts. The number of shares issuable under the Amended and Restated 2004 Equity Incentive Award Plan, or the Medivation Equity Incentive Plan, and the Medivation, Inc. 2013 Employee Stock Purchase Plan, or ESPP, disclosed in Note 9, “Stockholders’ Equity,” are presented at their actual amounts. Amounts presented herein may not calculate or sum precisely due to rounding. | |
(b) Use of Estimates | |
The preparation of unaudited consolidated financial statements in accordance with U.S. GAAP requires that management make estimates and assumptions in certain circumstances that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Management bases its estimates on historical experience and on assumptions believed to be reasonable under the circumstances. Although management believes that these estimates are reasonable, actual future results could differ materially from those estimates. In addition, had different estimates and assumptions been used, the consolidated financial statements could have differed materially from what is presented. | |
Estimates and assumptions used by management principally relate to: revenue recognition, reliance on third-party information, including estimates of the various deductions from gross sales used to calculate net sales of XTANDI, and the estimated performance periods of the Company’s deliverables under its agreements with current and former collaboration partners; services performed by third parties but not yet invoiced; the fair value and forfeiture rates of equity awards under the Medivation Equity Incentive Plan and the ESPP; the probability and potential magnitude of contingent liabilities; the 2.625% convertible senior notes due April 1, 2017, or the Convertible Notes, including the Company’s estimate of how the net proceeds thereof should be bifurcated between the debt component and the equity component; determination of whether the Company is the primary beneficiary of any variable interest entities; determination of whether leases are operating, capital, or build-to-suit; and deferred income taxes, income tax provisions and accruals for uncertain income tax positions. | |
(c) Significant Accounting Policies | |
Reference is made to Note 2, “Summary of Significant Accounting Policies,” included in the notes to the Company’s audited consolidated financial statements included in its Annual Report. As of the date of the filing of this Quarterly Report on Form 10-Q, or the Quarterly Report, there were no significant changes to the significant accounting policies described in the Company’s Annual Report, except those related to build-to-suit lease accounting described in the following section. | |
Build-To-Suit Lease Accounting | |
In certain lease arrangements, the Company is involved in the construction of the building. To the extent the Company is involved with the structural improvements of the construction project or takes construction risk prior to the commencement of a lease, Accounting Standards Codification, or ASC, 840-40, Leases – Sale-Leaseback Transactions (Subsection 05-5), requires the Company to be considered the owner for accounting purposes of these types of projects during the construction period. Therefore, the Company records an asset in property and equipment, net on the consolidated balance sheets, including capitalized interest costs, for the replacement cost of the Company’s portion of the pre-existing building plus the amount of estimated structural construction costs incurred by the landlord and the Company as of the balance sheet date. The Company records a corresponding build-to-suit lease obligation on its consolidated balance sheets representing the amounts paid by the lessor. | |
Once construction is complete, the Company considers the requirements for sale-leaseback accounting treatment, including evaluating whether all risks of ownership have been transferred back to the landlord, as evidenced by a lack of continuing involvement in the leased property. If the arrangement does not qualify for sale-leaseback accounting treatment, the building asset remains on the Company’s consolidated balance sheets at its historical cost, and such asset is depreciated over its estimated useful life. The Company bifurcates its lease payments into a portion allocated to the building and a portion allocated to the parcel of land on which the building has been built. The portion of the lease payments allocated to the land is treated for accounting purposes as operating lease payments, and therefore is recorded as rent expense in the consolidated statements of operations. The portion of the lease payments allocated to the building is further bifurcated into a portion allocated to interest expense and a portion allocated to reduce the build-to-suit lease obligation. The interest rate used for the build-to-suit lease obligation represents the Company’s estimated incremental borrowing rate, adjusted to reduce any built in loss. | |
The initial recording of these assets and liabilities is classified as non-cash investing and financing items, respectively, for purposes of the consolidated statements of cash flows. | |
(d) Recently Issued Accounting Pronouncements | |
In May 2014, the Financial Accounting Standards Board, or FASB, issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), a comprehensive new revenue recognition standard that will supersede the existing revenue recognition guidance. The new accounting guidance creates a framework by which an entity will allocate the transaction price to separate performance obligations and recognize revenue when (or as) each performance obligation is satisfied. Under the new standard, entities will be required to use judgment and make estimates, including identifying performance obligations in a contract, estimating the amount of variable consideration to include in the transaction price, allocating the transaction price to each separate performance obligation and determining when an entity satisfies its performance obligations. The standard allows for either “full retrospective” adoption, meaning that the standard is applied to all of the periods presented with a cumulative catch-up as of the earliest period presented, or “modified retrospective” adoption, meaning the standard is applied only to the most current period presented in the financial statements with a cumulative catch-up as of the current period. The accounting standard will be effective for reporting periods beginning after December 15, 2016. The Company is currently assessing the method of adoption and the impact the new standard will have on its consolidated financial statements. | |
(e) Out-of-Period Adjustment | |
In the first quarter of 2013, the Company recorded an out-of-period correcting adjustment that increased operating expenses and net loss by $3.6 million for the three months ended March 31, 2013. Management concluded that the adjustment was not material to the full year 2013 results or any previously reported financial statements. |
Collaboration_Agreement
Collaboration Agreement | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ||||||||||||||||
Collaboration Agreement | ' | ||||||||||||||||
NOTE 3 — COLLABORATION AGREEMENT | |||||||||||||||||
(a) Collaboration Agreement with Astellas | |||||||||||||||||
In October 2009, the Company entered into a collaboration agreement with Astellas, or the Astellas Collaboration Agreement. Under the agreement, decision making and economic participation differs between the U.S. market and the ex-U.S. market. In the United States, decisions are generally made by consensus, pre-tax profits and losses are shared equally and subject to certain exceptions, development and commercialization costs (including cost of goods sold and the royalty on net sales payable to The Regents of the University of California (“UCLA” or “the Regents”) under the Company’s license agreement with UCLA) are also shared equally. The primary exceptions to equal cost sharing in the U.S. market are that each party is responsible for its own commercial full-time equivalent, or FTE, costs, and that development costs supporting marketing approvals in both the United States and either Europe or Japan are borne one-third by the Company and two-thirds by Astellas. The Company and Astellas are co-promoting XTANDI in the U.S. market, with each company providing half of the sales and medical affairs effort in support of the product. Both the Company and Astellas are entitled to receive a fee for each qualifying detail made by its respective sales representatives. Outside the United States, decisions are generally made by Astellas and all development and commercialization costs (including cost of goods sold and the royalty on net sales payable to UCLA) are borne by Astellas. Astellas retains all ex-U.S. profits and losses, and pays the Company a tiered royalty ranging from the low teens to the low twenties on any aggregate net sales of XTANDI outside the United States, or ex-U.S. XTANDI sales. Astellas has sole responsibility for promoting XTANDI outside the United States and for recording all XTANDI sales both inside and outside the United States. Both the Company and Astellas have agreed not to commercialize certain other products having a similar mechanism of action (as defined by the Astellas Collaboration Agreement) as XTANDI for the treatment of prostate cancer for a specified time period, subject to certain exceptions. | |||||||||||||||||
Under the Astellas Collaboration Agreement, Astellas paid the Company a non-refundable, upfront cash payment of $110.0 million in the fourth quarter of 2009. The Company is also eligible to receive up to $335.0 million in development milestone payments and up to $320.0 million in sales milestone payments. As of September 30, 2014, the Company has earned an aggregate of $245.0 million in development milestone payments and $25.0 million in sales milestone payments under the Astellas Collaboration Agreement. The Company expects that any of the remaining $90.0 million in development milestone payments and the remaining $295.0 million in sales milestone payments that the Company may earn in future periods will be recognized as revenue in their entirety in the period in which the underlying milestone event is achieved. The Company earned $45.0 million of the remaining development milestone payments in October 2014 which will be recognized as collaboration revenue during the fourth quarter of 2014 as described in the following table. | |||||||||||||||||
The triggering events for the remaining development milestone payments the Company is eligible to receive under the Astellas Collaboration Agreement as of September 30, 2014 are as follows: | |||||||||||||||||
Milestone Event | 4th line prostate cancer | 3rd line prostate cancer | 2nd line prostate cancer | ||||||||||||||
patients(1) | patients(2) | patients(3) (4) | |||||||||||||||
First acceptance for filing of a marketing application in: | |||||||||||||||||
The U.S. | (5 | ) | (7 | ) | (7 | ) | |||||||||||
The first major country in Europe | (5 | ) | (7 | ) | (7 | ) | |||||||||||
Japan | (5 | ) | (7 | ) | (7 | ) | |||||||||||
First approval of a marketing application in: | |||||||||||||||||
The U.S. | (5 | ) | (8 | ) | (8 | ) | |||||||||||
The first major country in Europe | (5 | ) | $ | 15 million | $ | 30 million | |||||||||||
Japan | (6 | ) | $ | 15 million | (9) | $ | 30 million | (9) | |||||||||
-1 | Defined as prostate cancer patients who meet each of the following three criteria: (a) prior treatment failure on either (i) one or more luteinizing hormone-releasing hormone, or LHRH, analog drugs or (ii) surgical castration; (b) prior treatment failure on one or more androgen receptor antagonist drugs; and (c) prior treatment failure on chemotherapy. | ||||||||||||||||
-2 | Defined as prostate cancer patients who meet each of the following three criteria: (a) prior treatment failure on either (i) one or more LHRH analog drugs or (ii) surgical castration; (b) prior treatment failure on one or more androgen receptor antagonist drugs; and (c) no prior exposure to chemotherapy for prostate cancer. | ||||||||||||||||
-3 | Defined as prostate cancer patients who meet each of the following two criteria: (a) prior treatment failure on either (i) one or more LHRH analog drugs or (ii) surgical castration; and (b) no prior treatment failure on one or more androgen receptor antagonist drugs. | ||||||||||||||||
-4 | An additional milestone payment of $7.0 million is payable upon the first to occur of: (a) first approval of a marketing application in the United States with a label encompassing 2nd line prostate cancer patients; (b) first approval of a marketing application in the first major country in Europe with a label encompassing 2nd line prostate cancer patients; (c) first approval of a marketing application in Japan with a label encompassing 2nd line prostate cancer patients; or (d) first patient dosed in a Phase 3 clinical trial other than the PREVAIL trial that is designed specifically to support receipt of marketing approval in 2nd line patients. This milestone payment was earned and recognized as collaboration revenue during the second quarter of 2014 and payment has been received. | ||||||||||||||||
-5 | These milestones totaling $78.0 million were earned and recognized as collaboration revenue prior to 2014 and payments have been received. | ||||||||||||||||
-6 | This milestone of $15.0 million was earned and recognized as collaboration revenue during the first quarter of 2014 and payment has been received. | ||||||||||||||||
-7 | These milestones totaling $55.0 million were earned and recognized as collaboration revenue during the second quarter of 2014 and payments have been received. | ||||||||||||||||
-8 | These milestones totaling $90.0 million were earned and recognized as collaboration revenue during the third quarter of 2014 and are included in receivable from collaboration partner on the consolidated balance sheet at September 30, 2014. | ||||||||||||||||
-9 | These milestones totaling $45.0 million were earned in October 2014 and will be recognized as collaboration revenue during the fourth quarter of 2014. | ||||||||||||||||
The triggering events for the remaining sales milestone payments the Company is eligible to receive are as follows: | |||||||||||||||||
Annual Global Net Sales in a Calendar Year | Milestone Payment(1) | ||||||||||||||||
$800 million | $ | 50 million | |||||||||||||||
$1.2 billion | $ | 70 million | |||||||||||||||
$1.6 billion | $ | 175 million | |||||||||||||||
-1 | Each milestone shall only be paid once during the term of the Astellas Collaboration Agreement. | ||||||||||||||||
The Company and Astellas are each permitted to terminate the Astellas Collaboration Agreement for an uncured material breach by the other party or for the insolvency of the other party. Astellas has a right to terminate the Astellas Collaboration Agreement unilaterally by advance written notice to the Company. Following any termination of the Astellas Collaboration Agreement in its entirety, all rights to develop and commercialize XTANDI will revert to the Company, and Astellas will grant a license to the Company to enable it to continue such development and commercialization. In addition, except in the case of a termination by Astellas for the Company’s material breach, Astellas will supply XTANDI to the Company during a specified transition period. | |||||||||||||||||
Unless terminated earlier by the Company or Astellas pursuant to the terms thereof, the Astellas Collaboration Agreement will remain in effect: (a) in the United States, until such time as Astellas notifies the Company that Astellas has permanently stopped selling products covered by the Astellas Collaboration Agreement in the United States; and (b) in each other country of the world, on a country-by-country basis, until such time as (i) products covered by the Astellas Collaboration Agreement cease to be protected by patents or regulatory exclusivity in such country and (ii) commercial sales of generic equivalent products have commenced in such country. | |||||||||||||||||
(b) Collaboration Revenue | |||||||||||||||||
Collaboration revenue consists of three components: (a) collaboration revenue related to U.S. XTANDI sales; (b) collaboration revenue related to ex-U.S. XTANDI sales; and (c) collaboration revenue related to upfront and milestone payments. | |||||||||||||||||
Collaboration revenue was as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Collaboration revenue: | |||||||||||||||||
Related to U.S. XTANDI sales | $ | 90,723 | $ | 54,244 | $ | 224,814 | $ | 133,134 | |||||||||
Related to ex-U.S. XTANDI sales | 15,522 | 1,551 | 31,245 | 2,033 | |||||||||||||
Related to upfront and milestone payments | 94,233 | 4,232 | 179,698 | 41,163 | |||||||||||||
Total | $ | 200,478 | $ | 60,027 | $ | 435,757 | $ | 176,330 | |||||||||
The Company is required to pay UCLA ten percent of all Sublicensing Income, as defined in the Company’s license agreement with UCLA. The Company is currently involved in certain litigation matters with UCLA regarding certain terms of the license agreement and other matters, which are discussed in Note 12, “Commitments and Contingencies.” | |||||||||||||||||
Collaboration Revenue Related to U.S. XTANDI Sales | |||||||||||||||||
Under the Astellas Collaboration Agreement, Astellas records all U.S. XTANDI sales. The Company and Astellas share equally all pre-tax profits and losses from U.S. XTANDI sales. Subject to certain exceptions, the Company and Astellas also share equally all XTANDI development and commercialization costs related to the U.S. market, including cost of goods sold and the royalty on net sales payable to UCLA under the Company’s license agreement with UCLA. The primary exceptions to 50/50 cost sharing are that each party is responsible for its own commercial FTE costs and that development costs supporting marketing approvals in both the United States and either Europe or Japan are borne one-third by the Company and two-thirds by Astellas. The Company recognizes collaboration revenue related to U.S. XTANDI sales in the period in which such sales occur. Collaboration revenue related to U.S. XTANDI sales consists of the Company’s share of pre-tax profits and losses from U.S. sales, plus reimbursement of the Company’s share of reimbursable U.S. development and commercialization costs. The Company’s collaboration revenue related to U.S. XTANDI sales in any given period is equal to 50% of U.S. XTANDI net sales as reported by Astellas for the applicable period. | |||||||||||||||||
Collaboration revenue related to U.S. XTANDI sales was as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
U.S. XTANDI sales (as reported by Astellas) | $ | 181,446 | $ | 108,487 | $ | 449,629 | $ | 266,267 | |||||||||
Shared U.S. development and commercialization costs | (69,616 | ) | (58,901 | ) | (217,866 | ) | (178,002 | ) | |||||||||
Pre-tax U.S. profit | $ | 111,830 | $ | 49,586 | $ | 231,763 | $ | 88,265 | |||||||||
Medivation’s share of pre-tax U.S. profit | $ | 55,915 | $ | 24,793 | $ | 115,881 | $ | 44,133 | |||||||||
Reimbursement of Medivation’s share of shared U.S. costs | 34,808 | 29,451 | 108,933 | 89,001 | |||||||||||||
Collaboration revenue related to U.S. XTANDI sales | $ | 90,723 | $ | 54,244 | $ | 224,814 | $ | 133,134 | |||||||||
Collaboration Revenue Related to Ex-U.S. XTANDI Sales | |||||||||||||||||
Under the Astellas Collaboration Agreement, Astellas records all ex-U.S. XTANDI sales. Astellas is responsible for all development and commercialization costs for XTANDI outside the United States, including cost of goods sold and the royalty on net sales payable to UCLA under the Company’s license agreement with UCLA, and pays the Company a tiered royalty ranging from the low teens to the low twenties on net ex-U.S. XTANDI sales. The Company recognizes collaboration revenue related to ex-U.S. XTANDI sales in the period in which such sales occur. Collaboration revenue related to ex-U.S. XTANDI sales consists of royalties from Astellas on those sales. | |||||||||||||||||
Collaboration revenue related to ex-U.S. XTANDI sales was $15.5 million and $31.2 million for the three and nine months ended September 30, 2014, respectively. Collaboration revenue related to ex-U.S. XTANDI sales was $1.6 million and $2.0 million for the three and nine months ended September 30, 2013, respectively. | |||||||||||||||||
Collaboration Revenue Related to Upfront and Milestone Payments | |||||||||||||||||
Collaboration revenue related to upfront and milestone payments from Astellas was as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Development milestones earned | $ | 90,000 | $ | — | $ | 167,000 | $ | 20,000 | |||||||||
Amortization of deferred upfront and development milestones | 4,233 | 4,232 | 12,698 | 21,163 | |||||||||||||
Total | $ | 94,233 | $ | 4,232 | $ | 179,698 | $ | 41,163 | |||||||||
Deferred revenue under the Astellas Collaboration Agreement was $4.2 million and $16.9 million at September 30, 2014, and December 31, 2013, respectively. | |||||||||||||||||
(c) Cost-Sharing Payments | |||||||||||||||||
Under the Astellas Collaboration Agreement, the Company and Astellas share certain development and commercialization costs (including cost of goods sold and the royalty on net sales payable to UCLA under the Company’s license agreement with UCLA) in the United States. For the three and nine months ended September 30, 2014, development cost sharing payments from Astellas were $15.1 million and $48.5 million, respectively. For the three and nine months ended September 30, 2013, development cost sharing payments from Astellas were $13.1 million and $31.6 million, respectively. For the three and nine months ended September 30, 2014, commercialization cost-sharing payments to Astellas were $7.6 million and $17.8 million, respectively. For the three and nine months ended September 30, 2013, commercialization cost-sharing payments to Astellas were $1.8 million and $10.4 million, respectively. Development cost sharing payments from Astellas are recorded as reductions in research and development, or R&D, expenses. Commercialization cost sharing payments to Astellas are recorded as increases in selling, general, and administrative, or SG&A, expenses. |
Net_Income_Loss_Per_Common_Sha
Net Income (Loss) Per Common Share | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Net Income (Loss) Per Common Share | ' | ||||||||||||||||
NOTE 4 — NET INCOME (LOSS) PER COMMON SHARE | |||||||||||||||||
The computation of basic net income (loss) per common share is based on the weighted-average number of common shares outstanding during each period. The computation of diluted net income (loss) per common share is based on the weighted-average number of common shares outstanding during the period plus, when their effect is dilutive, incremental shares consisting of shares subject to stock options, restricted stock units, stock appreciation rights, ESPP shares, warrants, and shares issuable upon conversion of convertible debt. | |||||||||||||||||
In periods in which the Company reports net income, the Company uses the “if-converted” method in calculating the diluted net income per common share effect of the assumed conversion of the Convertible Notes. Under the “if-converted” method, interest expense related to the Convertible Notes is added back to net income, and the Convertible Notes (see Note 5, “Convertible Senior Notes Due 2017”) are assumed to have been converted into common shares at the beginning of the period (or issuance date) in periods in which there would have been a dilutive effect. The Convertible Notes can be settled in common stock, cash, or a combination thereof, at the Company’s election. During periods of net income, the Company’s intent and ability to settle the Convertible Notes in cash could impact the computation of diluted net income per common share. For the three and nine months ended September 30, 2014, the impact of the Convertible Notes has been excluded from the calculation of diluted net income per common share because the effect of their inclusion would have been anti-dilutive (approximately 5.1 million potentially dilutive common shares have been excluded). | |||||||||||||||||
In periods in which the Company reports a net loss, all common stock equivalents are deemed anti-dilutive such that basic net loss per common share and diluted net loss per common share are equal. | |||||||||||||||||
The following table reconciles the numerator and denominator used to calculate diluted net income (loss) per common share: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Numerator: | |||||||||||||||||
Net income (loss) | $ | 77,993 | $ | (13,313 | ) | $ | 112,247 | $ | (45,381 | ) | |||||||
Denominator: | |||||||||||||||||
Weighted-average common shares, basic | 77,056 | 75, 255 | 76,629 | 75,032 | |||||||||||||
Dilutive effect of common stock equivalents | 4,167 | — | 4,095 | — | |||||||||||||
Weighted-average common shares, diluted | 81,223 | 75,255 | 80,724 | 75,032 | |||||||||||||
Net income (loss) per common share: | |||||||||||||||||
Basic net income (loss) per common share | $ | 1.01 | $ | (0.18 | ) | $ | 1.46 | $ | (0.60 | ) | |||||||
Diluted net income (loss) per common share | $ | 0.96 | $ | (0.18 | ) | $ | 1.39 | $ | (0.60 | ) | |||||||
Approximately 12.8 million potentially dilutive common shares have been excluded from the diluted net loss per common share computations for the three and nine months ended September 30, 2013, because such securities have an anti-dilutive effect on net loss per common share due to the Company’s net loss in each of these periods. |
Convertible_Senior_Notes_Due_2
Convertible Senior Notes Due 2017 | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||||||||
Convertible Senior Notes Due 2017 | ' | ||||||||||||||||
NOTE 5 — CONVERTIBLE SENIOR NOTES DUE 2017 | |||||||||||||||||
On March 19, 2012, the Company issued $258.8 million aggregate principal amount of the Convertible Notes. The Company pays interest semi-annually in arrears on April 1 and October 1 of each year. The Convertible Notes mature on April 1, 2017, unless earlier converted, redeemed, or repurchased in accordance with their terms. The Convertible Notes are general senior unsecured obligations and rank (1) senior in right of payment to any of the Company’s future indebtedness that is expressly subordinated in right of payment to the Convertible Notes, (2) equal in right of payment to any of the Company’s future indebtedness and other liabilities of the Company that are not so subordinated, (3) junior in right of payment to any of the Company’s secured indebtedness to the extent of the value of the assets securing such indebtedness and (4) structurally junior to all future indebtedness incurred by the Company’s subsidiaries and their other liabilities (including trade payables). | |||||||||||||||||
Prior to April 6, 2015, the Convertible Notes are not redeemable. On or after April 6, 2015, the Company may redeem for cash all or a part of the Convertible Notes if the closing sale price of its common stock for 20 or more trading days in a period of 30 consecutive trading days ending on the trading day preceding the date it provides notice of the redemption exceeds 130% of the conversion price in effect on each such trading day, subject to certain conditions. The redemption price will equal 100% of the principal amount of the Convertible Notes to be redeemed plus accrued and unpaid interest, if any, to, but excluding the redemption date. If a fundamental change (as defined in the Indenture) occurs prior to the maturity date, holders may require the Company to purchase for cash all or any portion of the Convertible Notes at a purchase price equal to 100% of the principal amount of the Convertible Notes to be purchased plus accrued and unpaid interest, if any, to, but excluding, the fundamental change purchase date. | |||||||||||||||||
Holders may convert their Convertible Notes prior to the close of business on the business day immediately preceding January 1, 2017, only upon the occurrence of the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending on June 30, 2012, if the closing sale price of the Company’s common stock, for at least 20 trading days (whether or not consecutive) in the period of 30 consecutive trading days ending on the last trading day of the calendar quarter immediately preceding the calendar quarter in which the conversion occurs, is more than 130% of the conversion price of the Convertible Notes in effect on each applicable trading day; (2) during the five consecutive trading-day period following any five consecutive trading-day period in which the trading price for the Convertible Notes for each such trading day is less than 98% of the closing sale price of the Company’s common stock on such date multiplied by the then-current conversion rate; (3) upon the occurrence of specified corporate events; or (4) if the Company calls any Convertible Notes for redemption, at any time until the close of business on the second business day preceding the redemption date. On or after January 1, 2017 until the close of business on the second business day immediately preceding the stated maturity date, holders may surrender their Convertible Notes for conversion at any time, regardless of the foregoing circumstances. | |||||||||||||||||
At September 30, 2014, the Convertible Notes met a requirement of convertibility because the Company’s common stock price was in excess of the stated conversion premium for at least 20 trading days in the period of 30 consecutive trading days ending on September 30, 2014. The Convertible Notes remain convertible through December 31, 2014. Convertibility of the Convertible Notes based on the trading price of the Company’s common stock is assessed on a calendar-quarter basis. Upon a conversion of the Convertible Notes, the Company is required to pay or deliver, as the case may be, cash, shares of the Company’s common stock, or a combination of both, at the Company’s election. As of September 30, 2014, the conversion rate was 19.5172 shares of common stock per $1,000 principal amount of the Convertible Notes, equivalent to a conversion price of approximately $51.24 per share of common stock. The conversion rate is subject to adjustment in certain events, such as distribution of dividends and stock splits. In addition, upon a Make-Whole Adjustment Event (as defined in the Indenture), the Company will, under certain circumstances, increase the applicable conversion rate for a holder that elects to convert its Convertible Notes in connection with such Make-Whole Adjustment Event. | |||||||||||||||||
Interest expense on the Convertible Notes consisted of the following: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Coupon interest expense | $ | 1,698 | $ | 1,698 | $ | 5,094 | $ | 5,094 | |||||||||
Non-cash amortization of debt discount | 3,538 | 3,197 | 10,149 | 9,166 | |||||||||||||
Non-cash amortization of debt issuance costs | 299 | 270 | 858 | 775 | |||||||||||||
Total | $ | 5,535 | $ | 5,165 | $ | 16,101 | $ | 15,035 | |||||||||
BuildtoSuit_Lease_Obligation
Build-to-Suit Lease Obligation | 9 Months Ended | ||||
Sep. 30, 2014 | |||||
Leases [Abstract] | ' | ||||
Build-to-Suit Lease Obligation | ' | ||||
NOTE 6 — BUILD-TO-SUIT LEASE OBLIGATION | |||||
In the fourth quarter of 2013, the Company entered into a long-term property lease for approximately 52,000 square feet of laboratory space located in San Francisco, California. The lease agreement expires in July 2024, and the Company has an option to extend the lease term for up to an additional five years. | |||||
The Company is deemed, for accounting purposes only, to be the owner of the entire project including the building shell, even though it is not the legal owner. In connection with the Company’s accounting for this transaction, the Company capitalized $14.5 million as a build-to-suit property within property and equipment, net, and recognized a corresponding build-to-suit lease obligation for the same amount. The Company also recognized, as an additional build-to-suit lease obligation, structural tenant improvements totaling $3.6 million for amounts paid by the landlord and $0.9 million for capitalized interest during the construction period. | |||||
A portion of the monthly lease payment will be allocated to land rent and recorded as an operating lease expense and the non-interest portion of the amortized lease payments to the landlord related to the rent of the building will be applied to reduce the build-to-suit lease obligation. At September 30, 2014, $0.8 million of the build-to-suit lease obligation representing the expected reduction in the liability over the next twelve months is classified as a current liability and the remaining $18.2 million is classified as a non-current liability on the consolidated balance sheet. Expected reductions (increases) in the build-to-suit lease obligation at September 30, 2014 were as follows: | |||||
Build-To-Suit Lease | |||||
Obligation | |||||
Years Ending December 31, | |||||
Remainder of 2014 | $ | 135 | |||
2015 | 632 | ||||
2016 | (14 | ) | |||
2017 | 64 | ||||
2018 | 148 | ||||
2019 and thereafter | 18,065 | ||||
Total | $ | 19,030 | |||
The amounts included in the table above represent the reductions (increases) in the build-to-suit lease obligation on the Company’s consolidated balance sheet in each of the periods presented. The amount in the terminal period includes the amount to derecognize the build-to-suit lease obligation at the end of the lease term. Actual expected lease payments under the build-to-suit lease obligation are included in Note 12, “Commitments and Contingencies.” |
Property_and_Equipment_Net
Property and Equipment, Net | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Property and Equipment, Net | ' | ||||||||
NOTE 7 — PROPERTY AND EQUIPMENT, NET | |||||||||
Property and equipment, net, consisted of the following: | |||||||||
September 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
Build-to-suit property | $ | 19,030 | $ | — | |||||
Leasehold improvements | 14,849 | 12,034 | |||||||
Computer equipment and software | 7,624 | 4,503 | |||||||
Furniture and fixtures | 4,660 | 3,981 | |||||||
Construction in progress | 2,631 | 1,177 | |||||||
Laboratory equipment | 714 | 703 | |||||||
49,508 | 22,398 | ||||||||
Less: Accumulated depreciation | (8,433 | ) | (5,363 | ) | |||||
Total | $ | 41,075 | $ | 17,035 | |||||
Accounts_Payable_Accrued_Expen
Accounts Payable, Accrued Expenses and Other Current Liabilities | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Payables and Accruals [Abstract] | ' | ||||||||
Accounts Payable, Accrued Expenses and Other Current Liabilities | ' | ||||||||
NOTE 8 — ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | |||||||||
Accounts payable, accrued expenses and other current liabilities consisted of the following: | |||||||||
September 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
Clinical and preclinical activities | $ | 30,041 | $ | 34,182 | |||||
Royalties and milestones payable | 24,773 | 6,377 | |||||||
Payroll and payroll-related | 19,779 | 23,832 | |||||||
Accounts payable | 12,356 | 3,290 | |||||||
Accrued professional services and other current liabilities | 9,405 | 9,379 | |||||||
Taxes payable | 9,310 | — | |||||||
Interest payable | 3,396 | 1,698 | |||||||
Total | $ | 109,060 | $ | 78,758 | |||||
Accounts payable represents short-term liabilities for which the Company has received and processed a vendor invoice prior to the end of the reporting period. Accrued expenses and other current liabilities represent, among other things, compensation and related benefits to employees; royalties and milestone payments that are due to licensors of technologies; cash interest payable related to the Company’s Convertible Notes; estimated amounts due to third party vendors for services rendered prior to the end of the reporting period; invoices received from third party vendors that have not yet been processed; and taxes payable. |
Stockholders_Equity
Stockholders' Equity | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||
Stockholders' Equity | ' | ||||||||||||||||
NOTE 9 — STOCKHOLDERS’ EQUITY | |||||||||||||||||
(a) Stock Purchase Rights | |||||||||||||||||
All shares of the Company’s common stock, if issued prior to the termination by the Company of its rights agreement, dated as of December 4, 2006, include stock purchase rights. The rights are exercisable only if a person or group acquires twenty percent or more of the Company’s common stock or announces a tender or exchange offer which would result in ownership of twenty percent or more of the Company’s common stock. Following the acquisition of twenty percent or more of the Company’s common stock, the holders of the rights, other than the acquiring person or group, may purchase Medivation common stock at half of its fair market value. In the event of a merger or other acquisition of the Company, the holders of the rights, other than the acquiring person or group, may purchase shares of the acquiring entity at half of their fair market value. The rights were not exercisable at September 30, 2014. | |||||||||||||||||
(b) Medivation Equity Incentive Plan | |||||||||||||||||
The Medivation Equity Incentive Plan provides for the issuance of options and other stock-based awards, including restricted stock units, performance share awards and stock appreciation rights. The vesting of all outstanding awards under the Medivation Equity Incentive Plan will accelerate, and all such share awards will become immediately exercisable, upon a “change of control” of Medivation, as defined in the Medivation Equity Incentive Plan. On June 27, 2014, the Company’s stockholders approved an amendment and restatement of the Medivation Equity Incentive Plan to increase the aggregate number of shares of common stock authorized for issuance under the Medivation Equity Incentive Plan from 19,150,000 to 21,150,000. As of September 30, 2014, approximately 2.8 million shares were available for issuance under the Medivation Equity Incentive Plan. | |||||||||||||||||
Stock Options | |||||||||||||||||
The following table summarizes stock option activity for the nine months ended September 30, 2014: | |||||||||||||||||
Number of | Weighted | Weighted | Aggregate Intrinsic | ||||||||||||||
Options | Average | Average | Value (1) | ||||||||||||||
Exercise Price | Remaining | ||||||||||||||||
Contractual Term | |||||||||||||||||
(in years) | |||||||||||||||||
Outstanding at December 31, 2013 | 6,614,534 | $ | 22.12 | ||||||||||||||
Granted | 851,213 | $ | 75.57 | ||||||||||||||
Exercised | (1,593,563 | ) | $ | 13.87 | |||||||||||||
Forfeited | (427,701 | ) | $ | 45.89 | |||||||||||||
Expired | (243 | ) | $ | 48.18 | |||||||||||||
Outstanding at September 30, 2014 | 5,444,240 | $ | 31.02 | 6.49 | $ | 369.4 | |||||||||||
Vested and exercisable at September 30, 2014 | 3,613,023 | $ | 18.42 | 5.43 | $ | 290.7 | |||||||||||
(1) | The aggregate intrinsic value is calculated as the pre-tax difference between the weighted average exercise price of the underlying awards and the closing price per share of $98.87 of the Company’s common stock on September 30, 2014. The calculation excludes any awards with an exercise price higher than the closing price of the Company’s common stock on September 30, 2014. The amounts are presented in millions. | ||||||||||||||||
The weighted-average grant-date fair value per share of options granted during the nine months ended September 30, 2014 was $41.54. | |||||||||||||||||
Restricted Stock Units | |||||||||||||||||
The following table summarizes restricted stock unit activity for the nine months ended September 30, 2014: | |||||||||||||||||
Number of | Weighted- | ||||||||||||||||
Shares | Average | ||||||||||||||||
Grant-Date | |||||||||||||||||
Fair Value | |||||||||||||||||
Unvested at December 31, 2013 | 311,347 | $ | 52.57 | ||||||||||||||
Granted | 345,034 | $ | 79.85 | ||||||||||||||
Vested | (37,952 | ) | $ | 53.11 | |||||||||||||
Forfeited | (74,254 | ) | $ | 62.73 | |||||||||||||
Unvested at September 30, 2014 | 544,175 | $ | 68.64 | ||||||||||||||
Stock Appreciation Rights | |||||||||||||||||
The following table summarizes stock appreciation rights activity for the nine months ended September 30, 2014: | |||||||||||||||||
Number of | Weighted | Weighted | Aggregate Intrinsic | ||||||||||||||
Rights | Average | Average | Value (1) | ||||||||||||||
Exercise Price | Remaining | ||||||||||||||||
Contractual Term | |||||||||||||||||
(in years) | |||||||||||||||||
Outstanding at December 31, 2013 | 806,116 | $ | 23.98 | ||||||||||||||
Granted | — | $ | — | ||||||||||||||
Exercised | (58,850 | ) | $ | 23.71 | |||||||||||||
Forfeited | (10,384 | ) | $ | 24.4 | |||||||||||||
Outstanding at September 30, 2014 | 736,882 | $ | 23.99 | 7.03 | $ | 55.2 | |||||||||||
Vested and exercisable at September 30, 2014 | 494,136 | $ | 24.01 | 6.94 | $ | 37 | |||||||||||
(1) | The aggregate intrinsic value is calculated as the pre-tax difference between the weighted average exercise price of the underlying awards and the closing price per share of $98.87 of the Company’s common stock on September 30, 2014. The calculation excludes any awards with an exercise price higher than the closing price of the Company’s common stock on September 30, 2014. The amounts are presented in millions. | ||||||||||||||||
(c) ESPP | |||||||||||||||||
The ESPP, which was approved by the Company’s stockholders on June 28, 2013, permits eligible employees to purchase shares of the Company’s common stock through payroll deductions at the lower of 85% of the fair market value of the common stock at the beginning or end of a purchase period. Eligible employee purchases are limited on an annual basis to $25,000 in accordance with Section 423 of the Internal Revenue Code. As of September 30, 2014, a total of 3,000,000 shares of the Company’s common stock were authorized for issuance under the ESPP, and 90,067 shares have been issued. | |||||||||||||||||
(d) Stock-Based Compensation | |||||||||||||||||
The Company estimates the fair value of stock options, stock appreciation rights, and ESPP shares using the Black-Scholes valuation model. The Black-Scholes assumptions used to estimate the fair value of stock options granted during the periods were as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Risk-free interest rate | 1.56-1.79 | % | 1.45 | % | 1.56-1.79 | % | 0.73-1.55 | % | |||||||||
Estimated term (in years) | 5.06 | 5.25 | 5.06-5.50 | 5.24-5.50 | |||||||||||||
Estimated volatility | 63 | % | 68 | % | 60-64 | % | 68-75 | % | |||||||||
Estimated dividend yield | — | — | — | — | |||||||||||||
The Black-Scholes assumptions used to estimate the fair value of shares issued under the ESPP on the commencement date of the offering period were as follows. No offering periods commenced during the third quarter of 2014. | |||||||||||||||||
Nine Months Ended | |||||||||||||||||
September 30, 2014 | |||||||||||||||||
Risk-free interest rate | 0.06 | % | |||||||||||||||
Estimated term (in years) | 0.5 | ||||||||||||||||
Estimated volatility | 53 | % | |||||||||||||||
Estimated dividend yield | — | ||||||||||||||||
Stock-based compensation expense was as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Stock-based compensation expense recognized as: | |||||||||||||||||
R&D expense | $ | 4,611 | $ | 3,765 | $ | 13,236 | $ | 11,202 | |||||||||
SG&A expense | 7,346 | 5,436 | 19,563 | 14,426 | |||||||||||||
Total | $ | 11,957 | $ | 9,201 | $ | 32,799 | $ | 25,628 | |||||||||
Unrecognized stock-based compensation expense totaled $80.5 million at September 30, 2014, and is expected to be recognized over a weighted-average period of 2.40 years. |
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
NOTE 10 — INCOME TAXES | |
The Company calculates its quarterly income tax provision in accordance with the guidance provided by ASC 740-270, Interim Income Tax Accounting, whereby the Company forecasts its estimated annual effective tax rate and then applies that rate to its year-to-date pre-tax book income (loss). The Company recorded an income tax provision of $8.4 million and $10.0 million for the three and nine months ended September 30, 2014, respectively. The provision for income taxes was lower than the tax computed at the U.S. federal statutory rate due primarily to utilization of net operating loss and tax credit carryforwards. | |
The effective tax rate was 9.7% and 8.2% for the three and nine months ended September 30, 2014, respectively. The effective tax rate for the three and nine months ended September 30, 2013 was not significant. The increase in the effective tax rate for the three and nine months ended September 30, 2014 as compared to prior year periods was due to forecasted taxable income for 2014. | |
During the quarter ended September 30, 2014, the Company reduced its current state taxes payable by $0.4 million related to excess tax benefits from stock-based compensation, offsetting additional paid-in capital. | |
The Company records a valuation allowance to reduce deferred tax assets to the amount that is more likely than not to be realized. The Company considers all available positive and negative evidence in determining the need for a valuation allowance, including historical operating results, losses in recent periods, forecasted earnings, future taxable income, and feasible tax planning strategies. Based upon the weight of available evidence at September 30, 2014, the Company has established and continues to maintain a full valuation allowance against its deferred tax assets as the Company does not currently believe that realization of those assets is more likely than not. Considering the Company’s current assessment of potential future earnings, including the probability of increased revenue and earnings resulting from FDA approval to extend the indication of XTANDI and earning future contingent milestones under its collaboration agreement, there is a reasonable possibility that, within twelve months, sufficient positive evidence may become available to reach a conclusion that a significant portion of the valuation allowance will no longer be needed. A release of the valuation allowance would result in the recognition of certain deferred tax assets and a decrease to income tax expense in the period such release is recorded and would have a material effect to the Company’s financial results. | |
The future effective tax rate is subject to volatility and may be materially impacted by various internal and external factors. These factors may include, but are not limited to, the amount of income tax benefits and charges from: interpretations of existing tax laws; changes in tax laws and rates; future levels of research and development expenditures; changes in the mix of earnings in countries with differing statutory tax rates in which the Company may conduct business; changes in the valuation of deferred tax assets and liabilities; state income taxes; the tax impact of stock-based compensation; accounting for uncertain tax positions; closure of statute of limitations or settlement of tax audits; changes in estimates of prior years’ items; tax costs for acquisition-related items; changes in accounting standards; and overall levels of income before taxes. |
Fair_Value_Disclosures
Fair Value Disclosures | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Fair Value Disclosures | ' | ||||||||||||||||
NOTE 11 — FAIR VALUE DISCLOSURES | |||||||||||||||||
The following table presents the Company’s cash equivalents as well as the hierarchy for its financial instruments measured at fair value on a recurring basis: | |||||||||||||||||
Fair value measurements using: | |||||||||||||||||
Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||||
September 30, 2014: | |||||||||||||||||
Cash equivalents: | |||||||||||||||||
Money market funds | $ | 209,245 | $ | 209,245 | — | — | |||||||||||
December 31, 2013: | |||||||||||||||||
Cash equivalents: | |||||||||||||||||
Money market funds | $ | 189,092 | $ | 189,092 | — | — | |||||||||||
The following table presents the total balance of the Company’s other financial instruments that are not measured at fair value on a recurring basis: | |||||||||||||||||
Fair value measurements using: | |||||||||||||||||
Total Balance | Level 1 | Level 2 | Level 3 | ||||||||||||||
September 30, 2014: | |||||||||||||||||
Assets: | |||||||||||||||||
Bank deposits (included in “Cash and cash equivalents”) | $ | 111,808 | $ | 111,808 | — | — | |||||||||||
Liabilities: | |||||||||||||||||
Convertible Notes | $ | 363,902 | — | $ | 363,902 | — | |||||||||||
December 31, 2013: | |||||||||||||||||
Assets: | |||||||||||||||||
Bank deposits (included in “Cash and cash equivalents”) | $ | 39,696 | $ | 39,696 | — | — | |||||||||||
Liabilities: | |||||||||||||||||
Convertible Notes | $ | 277,145 | — | $ | 277,145 | — | |||||||||||
Due to their short-term maturities, the Company believes that the fair value of its bank deposits, receivable from collaboration partner, accounts payable and accrued expenses and other current liabilities approximate their carrying value. The estimated fair value of the Company’s Convertible Notes, including the equity component, was $503.3 million and $383.3 million at September 30, 2014, and December 31, 2013, respectively, and was determined using recent trading prices of the Convertible Notes. The fair value of the Convertible Notes included in the table above represents only the liability component of the Convertible Notes, because the equity component is included in stockholders’ equity on the consolidated balance sheets. For the purposes of the table above, the fair value of the Convertible Notes was bifurcated between the debt and equity components in a ratio similar to the principal amounts of the Convertible Notes. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended | ||||
Sep. 30, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||
Commitments and Contingencies | ' | ||||
NOTE 12 — COMMITMENTS AND CONTINGENCIES | |||||
(a) Lease Obligations | |||||
In the first quarter of 2014, the Company entered into the Fifth Amendment to its headquarters lease agreement in San Francisco, California, pursuant to which it leased approximately 29,000 additional square feet of office space. The Company is entitled to approximately $0.9 million of tenant improvement allowances pursuant to the Fifth Amendment. In connection with the execution of the Fifth Amendment, the Company delivered to the lessor a letter of credit collateralized by restricted cash totaling $2.1 million. In total, at September 30, 2014, the Company leased approximately 127,000 square feet of office space pursuant to the agreement, as amended, which expires in June 2019. Lease commitments pursuant to the Fifth Amendment total approximately $9.6 million over the term of the lease. There were no other changes to the Company’s lease obligations from that disclosed in the Company’s Annual Report other than a reduction of 2014 lease obligations due to the payment of current year lease payments. | |||||
Future operating lease obligations as of September 30, 2014 are as follows: | |||||
Operating | |||||
Leases | |||||
Years Ending December 31, | |||||
Remainder of 2014 | $ | 1,975 | |||
2015 | 8,008 | ||||
2016 | 8,170 | ||||
2017 | 8,334 | ||||
2018 | 8,499 | ||||
2019 and thereafter | 4,405 | ||||
Total minimum lease payments | $ | 39,391 | |||
The Company is considered the “accounting owner” for a build-to-suit property and has recorded a build-to-suit lease obligation on its September 30, 2014 consolidated balance sheet. Additional information regarding the build-to-suit lease obligation is included in Note 6, “Build-To-Suit Lease Obligation.” | |||||
Expected future lease payments under the build-to-suit lease as of September 30, 2014 are as follows: | |||||
Expected Cash | |||||
Payments Under Build- | |||||
To-Suit Lease | |||||
Obligation | |||||
Years Ending December 31, | |||||
Remainder of 2014 | $ | 349 | |||
2015 | 2,435 | ||||
2016 | 2,537 | ||||
2017 | 2,614 | ||||
2018 | 2,692 | ||||
2019 and thereafter | 16,935 | ||||
Total minimum lease payments | $ | 27,562 | |||
(b) Restricted Cash | |||||
At September 30, 2014, the Company had outstanding letters of credit collateralized by restricted cash totaling $12.0 million to secure various operating leases, of which $0.4 million and $11.6 million were classified as current and long-term assets, respectively, on the consolidated balance sheets. At December 31, 2013, the Company had outstanding letters of credit collateralized by restricted cash totaling $9.9 million to secure various operating leases, which was classified as long-term assets on the consolidated balance sheets. | |||||
(c) License Agreement with UCLA | |||||
Under an August 2005 license agreement with UCLA, the Company’s subsidiary Medivation Prostate Therapeutics, Inc., or MPT, holds an exclusive worldwide license under several UCLA patents and patent applications covering XTANDI and related compounds. Under the Astellas Collaboration Agreement, the Company granted Astellas a sublicense under the patent rights licensed to it by UCLA. | |||||
The Company is required to pay UCLA (a) an annual maintenance fee, (b) $2.8 million in aggregate milestone payments upon achievement of certain development and regulatory milestone events with respect to XTANDI (all of which has been paid as of September 30, 2014), (c) ten percent of all Sublicensing Income, as defined in the agreement, which the Company earns under the Astellas Collaboration Agreement, and (d) a four percent royalty on global net sales of XTANDI, as defined. Under the terms of the Astellas Collaboration Agreement, the Company shares this royalty obligation equally with Astellas with respect to sales in the United States, and Astellas is responsible for this entire royalty obligation with respect to sales outside of the United States. The Company is currently involved in certain litigation matters with UCLA, which are discussed below. | |||||
UCLA may terminate the agreement if the Company does not meet a general obligation to diligently proceed with the development, manufacturing and sale of licensed products, or if it commits any other uncured material breach of the agreement. The Company may terminate the agreement at any time upon advance written notice to UCLA. If neither party terminates the agreement early, the agreement will continue in force until the expiration of the last-to-expire patent on a country by country basis. | |||||
(d) Research and License Agreement | |||||
In March 2014, the Company entered into a Research and License Agreement with OncoFusion Therapeutics, Inc., or OncoFusion. Under the terms of the agreement, the Company paid OncoFusion a $12.0 million license and research agreement fee during the second quarter of 2014, which was accrued at March 31, 2014. The Company could also be required to pay OncoFusion potential future development and sales milestone payments, subject to the achievement of defined clinical and commercial events, and royalties based on sales. Such future milestone and royalty payments are contingent upon future events that may or may not materialize. | |||||
(e) Litigation | |||||
The Company is party to legal proceedings, investigations, and claims in the ordinary course of its business, including the matters described below. The Company records accruals for outstanding legal matters when it believes that it is both probable that a liability has been incurred and the amount of such liability can be reasonably estimated. The Company evaluates, on a quarterly basis, developments in legal matters that could affect the amount of any accrual and developments that would make a loss contingency both probable and reasonably estimable. To the extent new information is obtained and the Company’s views on the probable outcomes of claims, suits, assessments, investigations or legal proceedings change, changes in the Company’s accrued liabilities would be recorded in the period in which such determination is made. In addition, in accordance with the relevant authoritative guidance, for matters for which the likelihood of material loss is at least reasonably possible, the Company provides disclosure of the possible loss or range of loss; however, if a reasonable estimate cannot be made, the Company will provide disclosure to that effect. Gain contingencies, if any, are recorded as a reduction of expense when they are realized. | |||||
In May 2011, the Company filed a lawsuit in San Francisco Superior Court against the Regents of the University of California, or the Regents, and one of its professors, alleging breach of contract and fraud claims, among others. The Company’s allegations in this lawsuit include that it has exclusive commercial rights to an investigational drug known as ARN-509, which is currently being developed by Aragon Pharmaceuticals, or Aragon. In August 2013, Johnson & Johnson and Aragon completed a transaction in which Johnson & Johnson acquired all ARN-509 assets owned by Aragon. ARN-509 is an investigational drug currently in development to treat the non-metastatic CRPC population. ARN-509 is a close structural analog of XTANDI, was developed contemporaneously with XTANDI in the same academic laboratories in which XTANDI was developed, and was purportedly licensed by the Regents to Aragon, a company co-founded by the heads of the academic laboratories in which XTANDI was developed. On February 9, 2012, the Company filed a Second Amended Complaint, adding as additional defendants a former Regents professor and Aragon. The Company seeks remedies including a declaration that it is the proper licensee of ARN-509, contractual remedies conferring to it exclusive patent license rights regarding ARN-509, and other equitable and monetary relief. On August 7, 2012, the Regents filed a cross-complaint against the Company seeking declaratory relief which, if granted, would require the Company to share with the Regents ten percent of any sales milestone payments it may receive under the Astellas Collaboration Agreement because such milestones constitute Sublicensing Income under the license agreement with UCLA. Under the Astellas Collaboration Agreement, the Company is eligible to receive up to $320.0 million in sales milestone payments. As of September 30, 2014, the Company has earned $25.0 million in sales milestones under the Astellas Collaboration Agreement. The Company recorded a $2.5 million accrued payment to UCLA at December 31, 2013, representing ten percent of the $25.0 million sales milestone payment, which was paid to UCLA during the first quarter of 2014. On September 18, 2012, the trial court approved a settlement agreement dismissing the former Regents professor who was added to the case on February 9, 2012. On December 20, 2012, and January 25, 2013, the Court granted summary judgment motions filed by defendants Regents and Aragon, resulting in dismissal of all claims against Regents and Aragon, but denied such motions filed by the remaining Regents professor. On April 15, 2013, the Company filed a Notice of Appeal seeking appeal of the judgment in favor of Aragon, which is now wholly-owned by Johnson & Johnson, and the briefing of that matter has been concluded. The bench trial of the Regent’s cross-complaint against the Company was conducted in July 2013, and on January 15, 2014, the Court entered a judgment in the cross-complaint in favor of Regents, which the Company appealed on February 13, 2014 along with the December 2012 summary judgment order in favor of Regents. The jury trial of the Company’s breach of contract and fraud claims against the remaining Regents professor was conducted in October and November 2013. On November 15, 2013, the jury rendered a verdict in the case, finding in favor of Medivation on the breach of contract claim, and in favor of the Regents professor on the fraud claims. On November 22, 2013, the Court entered judgment for the prevailing party Medivation on the contract claim, and entering judgment in favor of the Regents professor on the fraud claims. The Company’s notice of appeal of the judgment on the fraud claims was filed on February 13, 2014. On October 17, 2014, the briefing in Medivation’s appeal of the summary judgment order and cross-complaint order in favor of Regents, as well as its appeal of the judgment on the fraud claims against the Regents professor commenced. On October 24, 2014, the court of appeals issued an order consolidating all of these appeals for hearing and consideration purposes, so the appeals will be heard and considered together once the briefing is completed. | |||||
On April 11, 2014, UCLA filed a complaint against the Company in which UCLA alleges that Medivation and MPT have failed to pay UCLA ten percent of “Operating Profits” Medivation has received (and will continue to receive) from Astellas, as a result of the Astellas Collaboration Agreement, and that Medivation has breached its fiduciary duties to UCLA, as minority shareholder of MPT. On July 16, 2014, UCLA dismissed without prejudice its claim that Medivation breached its fiduciary duties to UCLA, as a minority shareholder of MPT. The Company denies UCLA’s allegations and intends to vigorously defend the litigation. | |||||
While the Company believes it has meritorious positions with respect to the claims asserted against it and intends to advance its positions in these lawsuits vigorously, including on appeal, the process of resolving matters through litigation or other means is inherently uncertain, and it is not possible to predict the ultimate resolution of any such proceeding. The actual costs of defending the Company’s position may be significant, and the Company may not prevail. |
Subsequent_Event
Subsequent Event | 9 Months Ended |
Sep. 30, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Event | ' |
NOTE 13 — SUBSEQUENT EVENT | |
In October 2014, the Company entered into license agreement with CureTech, Ltd. in which it has licensed exclusive worldwide rights to CureTech’s late-stage clinical molecule pidilizumab (CT-011), an immune modulatory anti-PD-1 monoclonal antibody. Under the license agreement, the Company will be responsible for all development, regulatory, and commercialization activities for pidilizumab for all indications, including in oncology. | |
The Company also entered into a manufacturing and supply agreement with CureTech in October, 2014 under which CureTech will manufacture and supply the antibody to the Company over the next three years for clinical development purposes. In addition, the agreement contemplates a guaranty agreement between the Company and CureTech’s largest (53%) shareholder, Clal Biotechnology Industries Ltd. (CBI), with respect to certain obligations of CureTech. The guaranty is subject to approval by CBI shareholders. If approval for the guaranty is not obtained, the Company has the option to terminate both the license agreement and the manufacturing and supply agreement or proceed with such agreements on reduced economic terms (i.e., a reduction of $2.0 million in the upfront payment and 1% from each tier of royalties). The shareholder vote on the guaranty and, thereafter, the Company’s decision to exercise its option to continue to maintain the license are expected in December 2014. | |
Under the terms of the license agreement, and depending on whether the guaranty from CBI is obtained, CureTech would receive an upfront payment of up to $5.0 million from the Company and would also be entitled to payments upon attainment of certain development and regulatory milestones totaling $85.0 million. In addition, CureTech would be eligible to receive sales based milestone payments totaling up to $245.0 million, upon the achievement of certain annual worldwide net sales thresholds, and tiered royalties ranging from 4% to 11% on annual worldwide net sales. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Basis of Presentation and Principles of Consolidation | ' |
(a) Basis of Presentation and Principles of Consolidation | |
The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States, or U.S. GAAP, for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The unaudited consolidated financial statements have been prepared on the same basis as the annual audited consolidated financial statements. In the opinion of management, all adjustments, consisting of normal recurring adjustments necessary for the fair statement of the Company’s financial condition, results of operations and cash flows for the periods presented, have been included. The results of operations of any interim period are not necessarily indicative of the results of operations for the full year or any other interim period. | |
The unaudited consolidated financial statements and related disclosures have been prepared with the presumption that users of the interim unaudited consolidated financial statements have read or have access to the audited consolidated financial statements for the preceding year. Accordingly, these unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2013, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013, or the Annual Report, filed with the U.S. Securities and Exchange Commission, or SEC, on February 27, 2014. The consolidated balance sheet at December 31, 2013, has been derived from the audited consolidated financial statements at that date. | |
The unaudited consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. The Company operates in one business segment. | |
All tabular disclosures of dollar and share amounts are presented in thousands unless otherwise indicated. All per share amounts are presented at their actual amounts. The number of shares issuable under the Amended and Restated 2004 Equity Incentive Award Plan, or the Medivation Equity Incentive Plan, and the Medivation, Inc. 2013 Employee Stock Purchase Plan, or ESPP, disclosed in Note 9, “Stockholders’ Equity,” are presented at their actual amounts. Amounts presented herein may not calculate or sum precisely due to rounding. | |
Use of Estimates | ' |
(b) Use of Estimates | |
The preparation of unaudited consolidated financial statements in accordance with U.S. GAAP requires that management make estimates and assumptions in certain circumstances that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Management bases its estimates on historical experience and on assumptions believed to be reasonable under the circumstances. Although management believes that these estimates are reasonable, actual future results could differ materially from those estimates. In addition, had different estimates and assumptions been used, the consolidated financial statements could have differed materially from what is presented. | |
Estimates and assumptions used by management principally relate to: revenue recognition, reliance on third-party information, including estimates of the various deductions from gross sales used to calculate net sales of XTANDI, and the estimated performance periods of the Company’s deliverables under its agreements with current and former collaboration partners; services performed by third parties but not yet invoiced; the fair value and forfeiture rates of equity awards under the Medivation Equity Incentive Plan and the ESPP; the probability and potential magnitude of contingent liabilities; the 2.625% convertible senior notes due April 1, 2017, or the Convertible Notes, including the Company’s estimate of how the net proceeds thereof should be bifurcated between the debt component and the equity component; determination of whether the Company is the primary beneficiary of any variable interest entities; determination of whether leases are operating, capital, or build-to-suit; and deferred income taxes, income tax provisions and accruals for uncertain income tax positions. | |
Significant Accounting Policies | ' |
(c) Significant Accounting Policies | |
Reference is made to Note 2, “Summary of Significant Accounting Policies,” included in the notes to the Company’s audited consolidated financial statements included in its Annual Report. As of the date of the filing of this Quarterly Report on Form 10-Q, or the Quarterly Report, there were no significant changes to the significant accounting policies described in the Company’s Annual Report, except those related to build-to-suit lease accounting described in the following section. | |
Build-To-Suit Lease Accounting | ' |
Build-To-Suit Lease Accounting | |
In certain lease arrangements, the Company is involved in the construction of the building. To the extent the Company is involved with the structural improvements of the construction project or takes construction risk prior to the commencement of a lease, Accounting Standards Codification, or ASC, 840-40, Leases – Sale-Leaseback Transactions (Subsection 05-5), requires the Company to be considered the owner for accounting purposes of these types of projects during the construction period. Therefore, the Company records an asset in property and equipment, net on the consolidated balance sheets, including capitalized interest costs, for the replacement cost of the Company’s portion of the pre-existing building plus the amount of estimated structural construction costs incurred by the landlord and the Company as of the balance sheet date. The Company records a corresponding build-to-suit lease obligation on its consolidated balance sheets representing the amounts paid by the lessor. | |
Once construction is complete, the Company considers the requirements for sale-leaseback accounting treatment, including evaluating whether all risks of ownership have been transferred back to the landlord, as evidenced by a lack of continuing involvement in the leased property. If the arrangement does not qualify for sale-leaseback accounting treatment, the building asset remains on the Company’s consolidated balance sheets at its historical cost, and such asset is depreciated over its estimated useful life. The Company bifurcates its lease payments into a portion allocated to the building and a portion allocated to the parcel of land on which the building has been built. The portion of the lease payments allocated to the land is treated for accounting purposes as operating lease payments, and therefore is recorded as rent expense in the consolidated statements of operations. The portion of the lease payments allocated to the building is further bifurcated into a portion allocated to interest expense and a portion allocated to reduce the build-to-suit lease obligation. The interest rate used for the build-to-suit lease obligation represents the Company’s estimated incremental borrowing rate, adjusted to reduce any built in loss. | |
The initial recording of these assets and liabilities is classified as non-cash investing and financing items, respectively, for purposes of the consolidated statements of cash flows. | |
Recently Issued Accounting Pronouncements | ' |
(d) Recently Issued Accounting Pronouncements | |
In May 2014, the Financial Accounting Standards Board, or FASB, issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), a comprehensive new revenue recognition standard that will supersede the existing revenue recognition guidance. The new accounting guidance creates a framework by which an entity will allocate the transaction price to separate performance obligations and recognize revenue when (or as) each performance obligation is satisfied. Under the new standard, entities will be required to use judgment and make estimates, including identifying performance obligations in a contract, estimating the amount of variable consideration to include in the transaction price, allocating the transaction price to each separate performance obligation and determining when an entity satisfies its performance obligations. The standard allows for either “full retrospective” adoption, meaning that the standard is applied to all of the periods presented with a cumulative catch-up as of the earliest period presented, or “modified retrospective” adoption, meaning the standard is applied only to the most current period presented in the financial statements with a cumulative catch-up as of the current period. The accounting standard will be effective for reporting periods beginning after December 15, 2016. The Company is currently assessing the method of adoption and the impact the new standard will have on its consolidated financial statements. | |
Out-of-Period Adjustment | ' |
(e) Out-of-Period Adjustment | |
In the first quarter of 2013, the Company recorded an out-of-period correcting adjustment that increased operating expenses and net loss by $3.6 million for the three months ended March 31, 2013. Management concluded that the adjustment was not material to the full year 2013 results or any previously reported financial statements. | |
Net Income (Loss) Per Common Share | ' |
The computation of basic net income (loss) per common share is based on the weighted-average number of common shares outstanding during each period. The computation of diluted net income (loss) per common share is based on the weighted-average number of common shares outstanding during the period plus, when their effect is dilutive, incremental shares consisting of shares subject to stock options, restricted stock units, stock appreciation rights, ESPP shares, warrants, and shares issuable upon conversion of convertible debt. | |
In periods in which the Company reports net income, the Company uses the “if-converted” method in calculating the diluted net income per common share effect of the assumed conversion of the Convertible Notes. Under the “if-converted” method, interest expense related to the Convertible Notes is added back to net income, and the Convertible Notes (see Note 5, “Convertible Senior Notes Due 2017”) are assumed to have been converted into common shares at the beginning of the period (or issuance date) in periods in which there would have been a dilutive effect. The Convertible Notes can be settled in common stock, cash, or a combination thereof, at the Company’s election. During periods of net income, the Company’s intent and ability to settle the Convertible Notes in cash could impact the computation of diluted net income per common share. | |
Income taxes | ' |
The Company calculates its quarterly income tax provision in accordance with the guidance provided by ASC 740-270, Interim Income Tax Accounting, whereby the Company forecasts its estimated annual effective tax rate and then applies that rate to its year-to-date pre-tax book income (loss). The Company recorded an income tax provision of $8.4 million and $10.0 million for the three and nine months ended September 30, 2014, respectively. The provision for income taxes was lower than the tax computed at the U.S. federal statutory rate due primarily to utilization of net operating loss and tax credit carryforwards. | |
The effective tax rate was 9.7% and 8.2% for the three and nine months ended September 30, 2014, respectively. The effective tax rate for the three and nine months ended September 30, 2013 was not significant. The increase in the effective tax rate for the three and nine months ended September 30, 2014 as compared to prior year periods was due to forecasted taxable income for 2014. | |
During the quarter ended September 30, 2014, the Company reduced its current state taxes payable by $0.4 million related to excess tax benefits from stock-based compensation, offsetting additional paid-in capital. | |
The Company records a valuation allowance to reduce deferred tax assets to the amount that is more likely than not to be realized. The Company considers all available positive and negative evidence in determining the need for a valuation allowance, including historical operating results, losses in recent periods, forecasted earnings, future taxable income, and feasible tax planning strategies. Based upon the weight of available evidence at September 30, 2014, the Company has established and continues to maintain a full valuation allowance against its deferred tax assets as the Company does not currently believe that realization of those assets is more likely than not. Considering the Company’s current assessment of potential future earnings, including the probability of increased revenue and earnings resulting from FDA approval to extend the indication of XTANDI and earning future contingent milestones under its collaboration agreement, there is a reasonable possibility that, within twelve months, sufficient positive evidence may become available to reach a conclusion that a significant portion of the valuation allowance will no longer be needed. A release of the valuation allowance would result in the recognition of certain deferred tax assets and a decrease to income tax expense in the period such release is recorded and would have a material effect to the Company’s financial results. | |
The future effective tax rate is subject to volatility and may be materially impacted by various internal and external factors. These factors may include, but are not limited to, the amount of income tax benefits and charges from: interpretations of existing tax laws; changes in tax laws and rates; future levels of research and development expenditures; changes in the mix of earnings in countries with differing statutory tax rates in which the Company may conduct business; changes in the valuation of deferred tax assets and liabilities; state income taxes; the tax impact of stock-based compensation; accounting for uncertain tax positions; closure of statute of limitations or settlement of tax audits; changes in estimates of prior years’ items; tax costs for acquisition-related items; changes in accounting standards; and overall levels of income before taxes. | |
Litigation | ' |
(e) Litigation | |
The Company is party to legal proceedings, investigations, and claims in the ordinary course of its business, including the matters described below. The Company records accruals for outstanding legal matters when it believes that it is both probable that a liability has been incurred and the amount of such liability can be reasonably estimated. The Company evaluates, on a quarterly basis, developments in legal matters that could affect the amount of any accrual and developments that would make a loss contingency both probable and reasonably estimable. To the extent new information is obtained and the Company’s views on the probable outcomes of claims, suits, assessments, investigations or legal proceedings change, changes in the Company’s accrued liabilities would be recorded in the period in which such determination is made. In addition, in accordance with the relevant authoritative guidance, for matters for which the likelihood of material loss is at least reasonably possible, the Company provides disclosure of the possible loss or range of loss; however, if a reasonable estimate cannot be made, the Company will provide disclosure to that effect. Gain contingencies, if any, are recorded as a reduction of expense when they are realized. |
Collaboration_Agreement_Tables
Collaboration Agreement (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ||||||||||||||||
Schedule of Potential Development Milestone Payments | ' | ||||||||||||||||
The triggering events for the remaining development milestone payments the Company is eligible to receive under the Astellas Collaboration Agreement as of September 30, 2014 are as follows: | |||||||||||||||||
Milestone Event | 4th line prostate cancer | 3rd line prostate cancer | 2nd line prostate cancer | ||||||||||||||
patients(1) | patients(2) | patients(3) (4) | |||||||||||||||
First acceptance for filing of a marketing application in: | |||||||||||||||||
The U.S. | (5 | ) | (7 | ) | (7 | ) | |||||||||||
The first major country in Europe | (5 | ) | (7 | ) | (7 | ) | |||||||||||
Japan | (5 | ) | (7 | ) | (7 | ) | |||||||||||
First approval of a marketing application in: | |||||||||||||||||
The U.S. | (5 | ) | (8 | ) | (8 | ) | |||||||||||
The first major country in Europe | (5 | ) | $ | 15 million | $ | 30 million | |||||||||||
Japan | (6 | ) | $ | 15 million | (9) | $ | 30 million | (9) | |||||||||
-1 | Defined as prostate cancer patients who meet each of the following three criteria: (a) prior treatment failure on either (i) one or more luteinizing hormone-releasing hormone, or LHRH, analog drugs or (ii) surgical castration; (b) prior treatment failure on one or more androgen receptor antagonist drugs; and (c) prior treatment failure on chemotherapy. | ||||||||||||||||
-2 | Defined as prostate cancer patients who meet each of the following three criteria: (a) prior treatment failure on either (i) one or more LHRH analog drugs or (ii) surgical castration; (b) prior treatment failure on one or more androgen receptor antagonist drugs; and (c) no prior exposure to chemotherapy for prostate cancer. | ||||||||||||||||
-3 | Defined as prostate cancer patients who meet each of the following two criteria: (a) prior treatment failure on either (i) one or more LHRH analog drugs or (ii) surgical castration; and (b) no prior treatment failure on one or more androgen receptor antagonist drugs. | ||||||||||||||||
-4 | An additional milestone payment of $7.0 million is payable upon the first to occur of: (a) first approval of a marketing application in the United States with a label encompassing 2nd line prostate cancer patients; (b) first approval of a marketing application in the first major country in Europe with a label encompassing 2nd line prostate cancer patients; (c) first approval of a marketing application in Japan with a label encompassing 2nd line prostate cancer patients; or (d) first patient dosed in a Phase 3 clinical trial other than the PREVAIL trial that is designed specifically to support receipt of marketing approval in 2nd line patients. This milestone payment was earned and recognized as collaboration revenue during the second quarter of 2014 and payment has been received. | ||||||||||||||||
-5 | These milestones totaling $78.0 million were earned and recognized as collaboration revenue prior to 2014 and payments have been received. | ||||||||||||||||
-6 | This milestone of $15.0 million was earned and recognized as collaboration revenue during the first quarter of 2014 and payment has been received. | ||||||||||||||||
-7 | These milestones totaling $55.0 million were earned and recognized as collaboration revenue during the second quarter of 2014 and payments have been received. | ||||||||||||||||
-8 | These milestones totaling $90.0 million were earned and recognized as collaboration revenue during the third quarter of 2014 and are included in receivable from collaboration partner on the consolidated balance sheet at September 30, 2014. | ||||||||||||||||
-9 | These milestones totaling $45.0 million were earned in October 2014 and will be recognized as collaboration revenue during the fourth quarter of 2014. | ||||||||||||||||
Schedule of Potential Sales Milestone Payments | ' | ||||||||||||||||
The triggering events for the remaining sales milestone payments the Company is eligible to receive are as follows: | |||||||||||||||||
Annual Global Net Sales in a Calendar Year | Milestone Payment(1) | ||||||||||||||||
$800 million | $ | 50 million | |||||||||||||||
$1.2 billion | $ | 70 million | |||||||||||||||
$1.6 billion | $ | 175 million | |||||||||||||||
-1 | Each milestone shall only be paid once during the term of the Astellas Collaboration Agreement. | ||||||||||||||||
Schedule of Collaboration Revenue | ' | ||||||||||||||||
Collaboration revenue was as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Collaboration revenue: | |||||||||||||||||
Related to U.S. XTANDI sales | $ | 90,723 | $ | 54,244 | $ | 224,814 | $ | 133,134 | |||||||||
Related to ex-U.S. XTANDI sales | 15,522 | 1,551 | 31,245 | 2,033 | |||||||||||||
Related to upfront and milestone payments | 94,233 | 4,232 | 179,698 | 41,163 | |||||||||||||
Total | $ | 200,478 | $ | 60,027 | $ | 435,757 | $ | 176,330 | |||||||||
Schedule of Collaboration Revenue Related to U.S. XTANDI Sales | ' | ||||||||||||||||
Collaboration revenue related to U.S. XTANDI sales was as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
U.S. XTANDI sales (as reported by Astellas) | $ | 181,446 | $ | 108,487 | $ | 449,629 | $ | 266,267 | |||||||||
Shared U.S. development and commercialization costs | (69,616 | ) | (58,901 | ) | (217,866 | ) | (178,002 | ) | |||||||||
Pre-tax U.S. profit | $ | 111,830 | $ | 49,586 | $ | 231,763 | $ | 88,265 | |||||||||
Medivation’s share of pre-tax U.S. profit | $ | 55,915 | $ | 24,793 | $ | 115,881 | $ | 44,133 | |||||||||
Reimbursement of Medivation’s share of shared U.S. costs | 34,808 | 29,451 | 108,933 | 89,001 | |||||||||||||
Collaboration revenue related to U.S. XTANDI sales | $ | 90,723 | $ | 54,244 | $ | 224,814 | $ | 133,134 | |||||||||
Schedule of Collaboration Revenue Related to Upfront and Milestone Payments | ' | ||||||||||||||||
Collaboration revenue related to upfront and milestone payments from Astellas was as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Development milestones earned | $ | 90,000 | $ | — | $ | 167,000 | $ | 20,000 | |||||||||
Amortization of deferred upfront and development milestones | 4,233 | 4,232 | 12,698 | 21,163 | |||||||||||||
Total | $ | 94,233 | $ | 4,232 | $ | 179,698 | $ | 41,163 | |||||||||
Net_Income_Loss_Per_Common_Sha1
Net Income (Loss) Per Common Share (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Calculation of Diluted Net Income (Loss) Per Common Share | ' | ||||||||||||||||
The following table reconciles the numerator and denominator used to calculate diluted net income (loss) per common share: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Numerator: | |||||||||||||||||
Net income (loss) | $ | 77,993 | $ | (13,313 | ) | $ | 112,247 | $ | (45,381 | ) | |||||||
Denominator: | |||||||||||||||||
Weighted-average common shares, basic | 77,056 | 75, 255 | 76,629 | 75,032 | |||||||||||||
Dilutive effect of common stock equivalents | 4,167 | — | 4,095 | — | |||||||||||||
Weighted-average common shares, diluted | 81,223 | 75,255 | 80,724 | 75,032 | |||||||||||||
Net income (loss) per common share: | |||||||||||||||||
Basic net income (loss) per common share | $ | 1.01 | $ | (0.18 | ) | $ | 1.46 | $ | (0.60 | ) | |||||||
Diluted net income (loss) per common share | $ | 0.96 | $ | (0.18 | ) | $ | 1.39 | $ | (0.60 | ) | |||||||
Convertible_Senior_Notes_Due_21
Convertible Senior Notes Due 2017 (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||||||||
Interest Expense on Convertible Notes | ' | ||||||||||||||||
Interest expense on the Convertible Notes consisted of the following: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Coupon interest expense | $ | 1,698 | $ | 1,698 | $ | 5,094 | $ | 5,094 | |||||||||
Non-cash amortization of debt discount | 3,538 | 3,197 | 10,149 | 9,166 | |||||||||||||
Non-cash amortization of debt issuance costs | 299 | 270 | 858 | 775 | |||||||||||||
Total | $ | 5,535 | $ | 5,165 | $ | 16,101 | $ | 15,035 | |||||||||
BuildtoSuit_Lease_Obligation_T
Build-to-Suit Lease Obligation (Tables) | 9 Months Ended | ||||
Sep. 30, 2014 | |||||
Leases [Abstract] | ' | ||||
Schedule of Expected Reductions (Increases) in Build-to-Suit Lease Obligation | ' | ||||
Expected reductions (increases) in the build-to-suit lease obligation at September 30, 2014 were as follows: | |||||
Build-To-Suit Lease | |||||
Obligation | |||||
Years Ending December 31, | |||||
Remainder of 2014 | $ | 135 | |||
2015 | 632 | ||||
2016 | (14 | ) | |||
2017 | 64 | ||||
2018 | 148 | ||||
2019 and thereafter | 18,065 | ||||
Total | $ | 19,030 | |||
Property_and_Equipment_Net_Tab
Property and Equipment, Net (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Schedule of Property and Equipment, Net | ' | ||||||||
Property and equipment, net, consisted of the following: | |||||||||
September 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
Build-to-suit property | $ | 19,030 | $ | — | |||||
Leasehold improvements | 14,849 | 12,034 | |||||||
Computer equipment and software | 7,624 | 4,503 | |||||||
Furniture and fixtures | 4,660 | 3,981 | |||||||
Construction in progress | 2,631 | 1,177 | |||||||
Laboratory equipment | 714 | 703 | |||||||
49,508 | 22,398 | ||||||||
Less: Accumulated depreciation | (8,433 | ) | (5,363 | ) | |||||
Total | $ | 41,075 | $ | 17,035 | |||||
Accounts_Payable_Accrued_Expen1
Accounts Payable, Accrued Expenses and Other Current Liabilities (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Payables and Accruals [Abstract] | ' | ||||||||
Components of Accounts Payable, Accrued Expenses and Other Current Liabilities | ' | ||||||||
Accounts payable, accrued expenses and other current liabilities consisted of the following: | |||||||||
September 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
Clinical and preclinical activities | $ | 30,041 | $ | 34,182 | |||||
Royalties and milestones payable | 24,773 | 6,377 | |||||||
Payroll and payroll-related | 19,779 | 23,832 | |||||||
Accounts payable | 12,356 | 3,290 | |||||||
Accrued professional services and other current liabilities | 9,405 | 9,379 | |||||||
Taxes payable | 9,310 | — | |||||||
Interest payable | 3,396 | 1,698 | |||||||
Total | $ | 109,060 | $ | 78,758 | |||||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||
Summary of Stock Option Activity | ' | ||||||||||||||||
The following table summarizes stock option activity for the nine months ended September 30, 2014: | |||||||||||||||||
Number of | Weighted | Weighted | Aggregate Intrinsic | ||||||||||||||
Options | Average | Average | Value (1) | ||||||||||||||
Exercise Price | Remaining | ||||||||||||||||
Contractual Term | |||||||||||||||||
(in years) | |||||||||||||||||
Outstanding at December 31, 2013 | 6,614,534 | $ | 22.12 | ||||||||||||||
Granted | 851,213 | $ | 75.57 | ||||||||||||||
Exercised | (1,593,563 | ) | $ | 13.87 | |||||||||||||
Forfeited | (427,701 | ) | $ | 45.89 | |||||||||||||
Expired | (243 | ) | $ | 48.18 | |||||||||||||
Outstanding at September 30, 2014 | 5,444,240 | $ | 31.02 | 6.49 | $ | 369.4 | |||||||||||
Vested and exercisable at September 30, 2014 | 3,613,023 | $ | 18.42 | 5.43 | $ | 290.7 | |||||||||||
(1) | The aggregate intrinsic value is calculated as the pre-tax difference between the weighted average exercise price of the underlying awards and the closing price per share of $98.87 of the Company’s common stock on September 30, 2014. The calculation excludes any awards with an exercise price higher than the closing price of the Company’s common stock on September 30, 2014. The amounts are presented in millions. | ||||||||||||||||
Summary of Restricted Stock Units | ' | ||||||||||||||||
Restricted Stock Units | |||||||||||||||||
The following table summarizes restricted stock unit activity for the nine months ended September 30, 2014: | |||||||||||||||||
Number of | Weighted- | ||||||||||||||||
Shares | Average | ||||||||||||||||
Grant-Date | |||||||||||||||||
Fair Value | |||||||||||||||||
Unvested at December 31, 2013 | 311,347 | $ | 52.57 | ||||||||||||||
Granted | 345,034 | $ | 79.85 | ||||||||||||||
Vested | (37,952 | ) | $ | 53.11 | |||||||||||||
Forfeited | (74,254 | ) | $ | 62.73 | |||||||||||||
Unvested at September 30, 2014 | 544,175 | $ | 68.64 | ||||||||||||||
Summary of Stock Appreciation Rights Activity | ' | ||||||||||||||||
The following table summarizes stock appreciation rights activity for the nine months ended September 30, 2014: | |||||||||||||||||
Number of | Weighted | Weighted | Aggregate Intrinsic | ||||||||||||||
Rights | Average | Average | Value (1) | ||||||||||||||
Exercise Price | Remaining | ||||||||||||||||
Contractual Term | |||||||||||||||||
(in years) | |||||||||||||||||
Outstanding at December 31, 2013 | 806,116 | $ | 23.98 | ||||||||||||||
Granted | — | $ | — | ||||||||||||||
Exercised | (58,850 | ) | $ | 23.71 | |||||||||||||
Forfeited | (10,384 | ) | $ | 24.4 | |||||||||||||
Outstanding at September 30, 2014 | 736,882 | $ | 23.99 | 7.03 | $ | 55.2 | |||||||||||
Vested and exercisable at September 30, 2014 | 494,136 | $ | 24.01 | 6.94 | $ | 37 | |||||||||||
(1) | The aggregate intrinsic value is calculated as the pre-tax difference between the weighted average exercise price of the underlying awards and the closing price per share of $98.87 of the Company’s common stock on September 30, 2014. The calculation excludes any awards with an exercise price higher than the closing price of the Company’s common stock on September 30, 2014. The amounts are presented in millions. | ||||||||||||||||
Schedule of Black-Scholes Assumptions Used for Stock Options | ' | ||||||||||||||||
Black-Scholes assumptions used to estimate the fair value of stock options granted during the periods were as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Risk-free interest rate | 1.56-1.79 | % | 1.45 | % | 1.56-1.79 | % | 0.73-1.55 | % | |||||||||
Estimated term (in years) | 5.06 | 5.25 | 5.06-5.50 | 5.24-5.50 | |||||||||||||
Estimated volatility | 63 | % | 68 | % | 60-64 | % | 68-75 | % | |||||||||
Estimated dividend yield | — | — | — | — | |||||||||||||
Schedule of Black-Scholes Assumptions Used to Estimate Fair Value of Shares Issued under ESPP | ' | ||||||||||||||||
The Black-Scholes assumptions used to estimate the fair value of shares issued under the ESPP on the commencement date of the offering period were as follows. No offering periods commenced during the third quarter of 2014. | |||||||||||||||||
Nine Months Ended | |||||||||||||||||
September 30, 2014 | |||||||||||||||||
Risk-free interest rate | 0.06 | % | |||||||||||||||
Estimated term (in years) | 0.5 | ||||||||||||||||
Estimated volatility | 53 | % | |||||||||||||||
Estimated dividend yield | — | ||||||||||||||||
Schedule of Stock-Based Compensation Expense | ' | ||||||||||||||||
Stock-based compensation expense was as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Stock-based compensation expense recognized as: | |||||||||||||||||
R&D expense | $ | 4,611 | $ | 3,765 | $ | 13,236 | $ | 11,202 | |||||||||
SG&A expense | 7,346 | 5,436 | 19,563 | 14,426 | |||||||||||||
Total | $ | 11,957 | $ | 9,201 | $ | 32,799 | $ | 25,628 | |||||||||
Fair_Value_Disclosures_Tables
Fair Value Disclosures (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Cash Equivalents, as Well as Hierarchy for Financial Instruments Measured at Fair Value on Recurring Basis | ' | ||||||||||||||||
The following table presents the Company’s cash equivalents as well as the hierarchy for its financial instruments measured at fair value on a recurring basis: | |||||||||||||||||
Fair value measurements using: | |||||||||||||||||
Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||||
September 30, 2014: | |||||||||||||||||
Cash equivalents: | |||||||||||||||||
Money market funds | $ | 209,245 | $ | 209,245 | — | — | |||||||||||
December 31, 2013: | |||||||||||||||||
Cash equivalents: | |||||||||||||||||
Money market funds | $ | 189,092 | $ | 189,092 | — | — | |||||||||||
Fair Value of Other Financial Instruments Not Measured on Recurring Basis | ' | ||||||||||||||||
The following table presents the total balance of the Company’s other financial instruments that are not measured at fair value on a recurring basis: | |||||||||||||||||
Fair value measurements using: | |||||||||||||||||
Total Balance | Level 1 | Level 2 | Level 3 | ||||||||||||||
September 30, 2014: | |||||||||||||||||
Assets: | |||||||||||||||||
Bank deposits (included in “Cash and cash equivalents”) | $ | 111,808 | $ | 111,808 | — | — | |||||||||||
Liabilities: | |||||||||||||||||
Convertible Notes | $ | 363,902 | — | $ | 363,902 | — | |||||||||||
December 31, 2013: | |||||||||||||||||
Assets: | |||||||||||||||||
Bank deposits (included in “Cash and cash equivalents”) | $ | 39,696 | $ | 39,696 | — | — | |||||||||||
Liabilities: | |||||||||||||||||
Convertible Notes | $ | 277,145 | — | $ | 277,145 | — |
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 9 Months Ended | ||||
Sep. 30, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||
Schedule of Future Operation Lease Obligations | ' | ||||
Future operating lease obligations as of September 30, 2014 are as follows: | |||||
Operating | |||||
Leases | |||||
Years Ending December 31, | |||||
Remainder of 2014 | $ | 1,975 | |||
2015 | 8,008 | ||||
2016 | 8,170 | ||||
2017 | 8,334 | ||||
2018 | 8,499 | ||||
2019 and thereafter | 4,405 | ||||
Total minimum lease payments | $ | 39,391 | |||
Schedule of Future Lease Cash Payments under Build to Suit Lease | ' | ||||
Expected future lease payments under the build-to-suit lease as of September 30, 2014 are as follows: | |||||
Expected Cash | |||||
Payments Under Build- | |||||
To-Suit Lease | |||||
Obligation | |||||
Years Ending December 31, | |||||
Remainder of 2014 | $ | 349 | |||
2015 | 2,435 | ||||
2016 | 2,537 | ||||
2017 | 2,614 | ||||
2018 | 2,692 | ||||
2019 and thereafter | 16,935 | ||||
Total minimum lease payments | $ | 27,562 | |||
Description_of_Business_Additi
Description of Business - Additional Information (Detail) (USD $) | 9 Months Ended | 3 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2014 |
Country | Scenario, Forecast [Member] | |
Development milestone payments [Member] | ||
Organization And Description Of Business [Line Items] | ' | ' |
Number of countries in which XTANDI is approved for the post-docetaxel indication | 45 | ' |
Milestone payments earned | ' | $45 |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2013 | Sep. 30, 2014 |
Segment | ||
Accounting Policies [Abstract] | ' | ' |
Number of operating business segment | ' | 1 |
Convertible senior notes, interest percentage | ' | 2.63% |
Convertible senior notes, maturity date | ' | 1-Apr-17 |
Amount of net loss increased due to out-of-period adjustment | $3.60 | ' |
Out-of-period adjustment | ' | 'In the first quarter of 2013, the Company recorded an out-of-period correcting adjustment that increased operating expenses and net loss by $3.6 million for the three months ended March 31, 2013. Management concluded that the adjustment was not material to the full year 2013 results or any previously reported financial statements. |
Collaboration_Agreement_Collab
Collaboration Agreement - Collaboration Agreements with Astellas - Additional Information (Detail) (USD $) | 9 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2009 | Sep. 30, 2014 | Oct. 31, 2014 | Sep. 30, 2014 |
Collaborative agreement [Member] | Astellas Pharma Inc. [Member] | Upfront cash payment arrangement [Member] | Development milestone payments [Member] | Development milestone payments [Member] | Sales milestone payments [Member] | |
Collaborative agreement [Member] | Astellas Pharma Inc. [Member] | Astellas Pharma Inc. [Member] | Astellas Pharma Inc. [Member] | Astellas Pharma Inc. [Member] | ||
Subsequent Event [Member] | ||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ' | ' | ' | ' | ' | ' |
Co-promotion of sales and medical affairs percentage | 50.00% | ' | ' | ' | ' | ' |
Royalty received on ex-U.S. sales per collaboration arrangement | ' | 'Low teens to the low twenties | ' | ' | ' | ' |
Non-refundable, upfront cash payment | ' | ' | $110 | ' | ' | ' |
Eligible to receive milestone payments | ' | ' | ' | 335 | ' | 320 |
Milestone payments earned | ' | ' | ' | 245 | ' | 25 |
Remaining future milestone payments eligible to receive | ' | ' | ' | $90 | $45 | $295 |
Percentage of sublicensing income | ' | ' | ' | 10.00% | ' | ' |
Collaboration_Agreement_Substa
Collaboration Agreement - Substantive Development Milestone Payments Eligible to Receive under Astellas Collaboration Agreement (Detail) (USD $) | Sep. 30, 2014 |
In Millions, unless otherwise specified | |
4th line prostate cancer patients [Member] | First acceptance for filing of a marketing application [Member] | The U.S. [Member] | ' |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ' |
Development milestone payments eligible to receive under Collaboration Agreement | $0 |
4th line prostate cancer patients [Member] | First acceptance for filing of a marketing application [Member] | The first major country in Europe [Member] | ' |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ' |
Development milestone payments eligible to receive under Collaboration Agreement | 0 |
4th line prostate cancer patients [Member] | First acceptance for filing of a marketing application [Member] | Japan [Member] | ' |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ' |
Development milestone payments eligible to receive under Collaboration Agreement | 0 |
4th line prostate cancer patients [Member] | First approval of a marketing application [Member] | The U.S. [Member] | ' |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ' |
Development milestone payments eligible to receive under Collaboration Agreement | 0 |
4th line prostate cancer patients [Member] | First approval of a marketing application [Member] | The first major country in Europe [Member] | ' |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ' |
Development milestone payments eligible to receive under Collaboration Agreement | 0 |
4th line prostate cancer patients [Member] | First approval of a marketing application [Member] | Japan [Member] | ' |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ' |
Development milestone payments eligible to receive under Collaboration Agreement | 0 |
3rd line prostate cancer patients [Member] | First acceptance for filing of a marketing application [Member] | The U.S. [Member] | ' |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ' |
Development milestone payments eligible to receive under Collaboration Agreement | 0 |
3rd line prostate cancer patients [Member] | First acceptance for filing of a marketing application [Member] | The first major country in Europe [Member] | ' |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ' |
Development milestone payments eligible to receive under Collaboration Agreement | 0 |
3rd line prostate cancer patients [Member] | First acceptance for filing of a marketing application [Member] | Japan [Member] | ' |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ' |
Development milestone payments eligible to receive under Collaboration Agreement | 0 |
3rd line prostate cancer patients [Member] | First approval of a marketing application [Member] | The U.S. [Member] | ' |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ' |
Development milestone payments eligible to receive under Collaboration Agreement | 0 |
3rd line prostate cancer patients [Member] | First approval of a marketing application [Member] | The first major country in Europe [Member] | ' |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ' |
Development milestone payments eligible to receive under Collaboration Agreement | 15 |
3rd line prostate cancer patients [Member] | First approval of a marketing application [Member] | Japan [Member] | ' |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ' |
Development milestone payments eligible to receive under Collaboration Agreement | 15 |
2nd line prostate cancer patients [Member] | First acceptance for filing of a marketing application [Member] | The U.S. [Member] | ' |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ' |
Development milestone payments eligible to receive under Collaboration Agreement | 0 |
2nd line prostate cancer patients [Member] | First acceptance for filing of a marketing application [Member] | The first major country in Europe [Member] | ' |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ' |
Development milestone payments eligible to receive under Collaboration Agreement | 0 |
2nd line prostate cancer patients [Member] | First acceptance for filing of a marketing application [Member] | Japan [Member] | ' |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ' |
Development milestone payments eligible to receive under Collaboration Agreement | 0 |
2nd line prostate cancer patients [Member] | First approval of a marketing application [Member] | The U.S. [Member] | ' |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ' |
Development milestone payments eligible to receive under Collaboration Agreement | 0 |
2nd line prostate cancer patients [Member] | First approval of a marketing application [Member] | The first major country in Europe [Member] | ' |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ' |
Development milestone payments eligible to receive under Collaboration Agreement | 30 |
2nd line prostate cancer patients [Member] | First approval of a marketing application [Member] | Japan [Member] | ' |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ' |
Development milestone payments eligible to receive under Collaboration Agreement | $30 |
Collaboration_Agreement_Substa1
Collaboration Agreement - Substantive Development Milestone Payments Eligible to Receive under Astellas Collaboration Agreement (Parenthetical) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | 1 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Oct. 31, 2014 |
Additional milestone payment [Member] | Subsequent Event [Member] | |||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ' | ' | ' | ' | ' | ' |
Milestone payments earned | $90 | $55 | $15 | $78 | $7 | $45 |
Collaboration_Agreement_Schedu
Collaboration Agreement - Schedule of Potential Milestone Payments in Sales (Detail) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2014 |
Milestone Payment One [Member] | ' |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ' |
Milestone Payment | $50 |
Milestone Payment Two [Member] | ' |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ' |
Milestone Payment | 70 |
Milestone Payment Three [Member] | ' |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ' |
Milestone Payment | 175 |
Milestone Sales One [Member] | ' |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ' |
Annual global net sales of XTANDI (calendar year), as reported by Astellas | 800 |
Milestone Sales Two [Member] | ' |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ' |
Annual global net sales of XTANDI (calendar year), as reported by Astellas | 1,200 |
Milestone Sales Three [Member] | ' |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ' |
Annual global net sales of XTANDI (calendar year), as reported by Astellas | $1,600 |
Collaboration_Agreement_Schedu1
Collaboration Agreement - Schedule of Collaboration Revenue (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ' | ' | ' |
Related to U.S. XTANDI sales | $90,723 | $54,244 | $224,814 | $133,134 |
Related to ex-U.S. XTANDI sales | 15,522 | 1,551 | 31,245 | 2,033 |
Related to upfront and milestone payments | 94,233 | 4,232 | 179,698 | 41,163 |
Collaboration revenue | $200,478 | $60,027 | $435,757 | $176,330 |
Collaboration_Agreement_Collab1
Collaboration Agreement - Collaboration Revenue and Collaboration Receivables - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ' | ' | ' | ' | ' |
Collaboration revenue percentage compared to U.S. XTANDI net sales | 50.00% | 50.00% | 50.00% | 50.00% | ' |
Collaboration revenue related to ex-U.S. XTANDI sales | $15,500,000 | $1,600,000 | $31,200,000 | $2,000,000 | ' |
Deferred revenue, Current | 4,233,000 | ' | 4,233,000 | ' | 16,931,000 |
Astellas Pharma Inc. [Member] | ' | ' | ' | ' | ' |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ' | ' | ' | ' | ' |
Development cost-sharing payments | 15,100,000 | 13,100,000 | 48,500,000 | 31,600,000 | ' |
Commercialization cost-sharing payments | $7,600,000 | $1,800,000 | $17,800,000 | $10,400,000 | ' |
Development cost-sharing payments [Member] | Medivation Inc [Member] | Collaborative agreement [Member] | ' | ' | ' | ' | ' |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ' | ' | ' | ' | ' |
Share of developing and commercializing XTANDI U.S. | ' | ' | 50.00% | ' | ' |
Share of developing and commercializing XTANDI ex-U.S. | ' | ' | 33.33% | ' | ' |
Commercial cost sharing-payments [Member] | Astellas Pharma Inc. [Member] | Collaborative agreement [Member] | ' | ' | ' | ' | ' |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ' | ' | ' | ' | ' |
Share of developing and commercializing XTANDI U.S. | ' | ' | 50.00% | ' | ' |
Share of developing and commercializing XTANDI ex-U.S. | ' | ' | 66.67% | ' | ' |
Collaboration_Agreement_Schedu2
Collaboration Agreement - Schedule of Collaboration Revenue Related to U.S. XTANDI Sales (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ' | ' | ' | ' |
Collaboration revenue related to U.S. XTANDI sales | $90,723 | $54,244 | $224,814 | $133,134 |
U.S. XTANDI sales [Member] | ' | ' | ' | ' |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ' | ' | ' | ' |
Collaboration revenue related to U.S. XTANDI sales | 90,723 | 54,244 | 224,814 | 133,134 |
U.S. XTANDI sales [Member] | Astellas Pharma Inc. [Member] | ' | ' | ' | ' |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ' | ' | ' | ' |
U.S. XTANDI sales (as reported by Astellas) | 181,446 | 108,487 | 449,629 | 266,267 |
Shared U.S. development and commercialization costs | -69,616 | -58,901 | -217,866 | -178,002 |
Pre-tax U.S. profit | 111,830 | 49,586 | 231,763 | 88,265 |
U.S. XTANDI sales [Member] | Medivation [Member] | ' | ' | ' | ' |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ' | ' | ' | ' |
Medivation's share of pre-tax U.S. profit | 55,915 | 24,793 | 115,881 | 44,133 |
Reimbursement of Medivation's share of shared U.S. costs | $34,808 | $29,451 | $108,933 | $89,001 |
Collaboration_Agreement_Schedu3
Collaboration Agreement - Schedule of Collaboration Revenue Related to Upfront and Milestone Payments (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ' | ' | ' | ' |
Amortization of deferred upfront and development milestones | ' | ' | $12,698 | $21,163 |
Total collaboration revenue attributable to up-front and milestone payments | 94,233 | 4,232 | 179,698 | 41,163 |
Astellas Pharma Inc. [Member] | ' | ' | ' | ' |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ' | ' | ' | ' |
Total collaboration revenue attributable to up-front and milestone payments | 94,233 | 4,232 | 179,698 | 41,163 |
Astellas Pharma Inc. [Member] | Development milestones earned [Member] | ' | ' | ' | ' |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ' | ' | ' | ' |
Development milestones earned | 90,000 | ' | 167,000 | 20,000 |
Astellas Pharma Inc. [Member] | Amortization of deferred upfront and development milestones [Member] | ' | ' | ' | ' |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ' | ' | ' | ' |
Amortization of deferred upfront and development milestones | $4,233 | $4,232 | $12,698 | $21,163 |
Net_Income_Loss_Per_Common_Sha2
Net Income (Loss) Per Common Share - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Earnings Per Share [Abstract] | ' | ' | ' | ' |
Dilutive common shares excluded from net loss per common share computations | 5.1 | 12.8 | 5.1 | 12.8 |
Net_Income_Loss_Per_Common_Sha3
Net Income (Loss) Per Common Share - Calculation of Diluted Net Income (Loss) Per Common Share (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Numerator: | ' | ' | ' | ' |
Net income (loss) | $77,993 | ($13,313) | $112,247 | ($45,381) |
Denominator: | ' | ' | ' | ' |
Weighted-average common shares, basic | 77,056 | 75,255 | 76,629 | 75,032 |
Dilutive effect of common stock equivalents | 4,167 | ' | 4,095 | ' |
Weighted-average common shares, diluted | 81,223 | 75,255 | 80,724 | 75,032 |
Basic net income (loss) per common share | $1.01 | ($0.18) | $1.46 | ($0.60) |
Diluted net income (loss) per common share | $0.96 | ($0.18) | $1.39 | ($0.60) |
Convertible_Senior_Notes_Due_22
Convertible Senior Notes Due 2017 - Additional Information (Detail) (USD $) | 9 Months Ended |
Sep. 30, 2014 | |
D | |
Debt Disclosure [Abstract] | ' |
Convertible Notes, maturity date | 1-Apr-17 |
Convertible Notes, payment terms | 'The Company pays interest semi-annually in arrears on April 1 and October 1 of each year. |
Convertible Notes, aggregate principal amount | $258,800,000 |
Maximum percentage of conversion price upon redemption of Convertible Notes | 130.00% |
Percentage of redemption price to principal amount of note | 100.00% |
Convertible Notes, conversion term description | '(1) during any calendar quarter commencing after the calendar quarter ending on June 30, 2012, if the closing sale price of the Company's common stock, for at least 20 trading days (whether or not consecutive) in the period of 30 consecutive trading days ending on the last trading day of the calendar quarter immediately preceding the calendar quarter in which the conversion occurs, is more than 130% of the conversion price of the Convertible Notes in effect on each applicable trading day; (2) during the five consecutive trading-day period following any five consecutive trading-day period in which the trading price for the Convertible Notes for each such trading day is less than 98% of the closing sale price of the Company's common stock on such date multiplied by the then-current conversion rate; (3) upon the occurrence of specified corporate events; or (4) if the Company calls any Convertible Notes for redemption, at any time until the close of business on the second business day preceding the redemption date. On or after January 1, 2017 until the close of business on the second business day immediately preceding the stated maturity date, holders may surrender their Convertible Notes for conversion at any time, regardless of the foregoing circumstances. |
Number of trading days | 20 |
Consecutive trading days | '30 days |
Conversion rate of common stock, shares per principal amount | 19.5172 |
Debt instrument convertible increment of principal amount of conversion | $1,000 |
Conversion price, per share of common stock | $51.24 |
Convertible_Senior_Notes_Due_23
Convertible Senior Notes Due 2017 - Interest Expense on Convertible Notes (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Debt Disclosure [Abstract] | ' | ' | ' | ' |
Coupon interest expense | $1,698 | $1,698 | $5,094 | $5,094 |
Non-cash amortization of debt discount | 3,538 | 3,197 | 10,149 | 9,166 |
Non-cash amortization of debt issuance costs | 299 | 270 | 858 | 775 |
Total | $5,535 | $5,165 | $16,101 | $15,035 |
BuildtoSuit_Lease_Obligation_A
Build-to-Suit Lease Obligation - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2014 |
sqft | ||
Build To Suit Lease Obligation [Line Items] | ' | ' |
Operating lease space, in square feet | ' | 127,000 |
Lease expiry period | ' | 'June 2019 |
Amounts capitalized under build-to-suit transactions | ' | 18,085 |
Interest capitalized during construction period for build-to-suit transactions | ' | 945 |
Build-to-suit lease obligation current liability | ' | 781 |
Build-to-suit lease obligation non-current liability | ' | 18,249 |
Laboratory Space [Member] | ' | ' |
Build To Suit Lease Obligation [Line Items] | ' | ' |
Operating lease space, in square feet | 52,000 | ' |
Lease expiry period | ' | 'July 2024 |
Optional lease extension term, in years | '5 years | ' |
Property and equipment [Member] | ' | ' |
Build To Suit Lease Obligation [Line Items] | ' | ' |
Amounts capitalized under build-to-suit transactions | ' | 14,500 |
Tenant Improvements [Member] | ' | ' |
Build To Suit Lease Obligation [Line Items] | ' | ' |
Amounts capitalized under build-to-suit transactions | ' | 3,600 |
BuildtoSuit_Lease_Obligation_S
Build-to-Suit Lease Obligation - Schedule of Expected Reductions (Increases) in Build-to-Suit Lease Obligation (Detail) (USD $) | Sep. 30, 2014 |
In Thousands, unless otherwise specified | |
Leases [Abstract] | ' |
Build-to-Suit Lease Obligation, Remainder of 2014 | $135 |
Build-to-Suit Lease Obligation, 2015 | 632 |
Build-to-Suit Lease Obligation, 2016 | -14 |
Build-to-Suit Lease Obligation, 2017 | 64 |
Build-to-Suit Lease Obligation, 2018 | 148 |
Build-to-Suit Lease Obligation, 2019 and thereafter | 18,065 |
Total minimum lease payments | $19,030 |
Property_and_Equipment_Net_Sch
Property and Equipment, Net - Schedule of Property and Equipment, Net (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | $49,508 | $22,398 |
Less: Accumulated depreciation | -8,433 | -5,363 |
Total | 41,075 | 17,035 |
Build-to-suit property [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 19,030 | ' |
Leasehold improvements [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 14,849 | 12,034 |
Computer equipment and software [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 7,624 | 4,503 |
Furniture and fixtures [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 4,660 | 3,981 |
Construction in progress [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 2,631 | 1,177 |
Laboratory equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | $714 | $703 |
Accounts_Payable_Accrued_Expen2
Accounts Payable, Accrued Expenses and Other Current Liabilities - Components of Accounts Payable, Accrued Expenses and Other Current Liabilities (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Payables and Accruals [Abstract] | ' | ' |
Clinical and preclinical activities | $30,041 | $34,182 |
Royalties and milestones payable | 24,773 | 6,377 |
Payroll and payroll-related | 19,779 | 23,832 |
Accounts payable | 12,356 | 3,290 |
Accrued professional services and other current liabilities | 9,405 | 9,379 |
Taxes payable | 9,310 | ' |
Interest payable | 3,396 | 1,698 |
Total | $109,060 | $78,758 |
Stockholders_Equity_Additional
Stockholders' Equity - Additional Information (Detail) (USD $) | 0 Months Ended | 9 Months Ended | |||||
Jun. 28, 2013 | Sep. 30, 2014 | Dec. 04, 2006 | Sep. 30, 2014 | Sep. 30, 2014 | Jun. 27, 2014 | Jun. 27, 2014 | |
ESPP [Member] | Equity Incentive Plan [Member] | Minimum [Member] | Maximum [Member] | ||||
Equity Incentive Plan [Member] | Equity Incentive Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Maximum percentage before exercise | ' | ' | 20.00% | ' | ' | ' | ' |
Number of shares authorized for issuance | ' | ' | ' | 3,000,000 | ' | 19,150,000 | 21,150,000 |
Number of shares available for issuance | ' | ' | ' | ' | 2,800,000 | ' | ' |
Weighted-average grant-date fair value per share | ' | $41.54 | ' | ' | ' | ' | ' |
Employees share purchase plan, fair market value of common stock at beginning of offering period | 85.00% | 85.00% | ' | ' | ' | ' | ' |
Employees share purchase plan, fair market value of common stock at end of purchase period | 85.00% | 85.00% | ' | ' | ' | ' | ' |
Eligible employee contributions | $25,000 | $25,000 | ' | ' | ' | ' | ' |
Shares issued under the ESPP | ' | 90,067 | ' | ' | ' | ' | ' |
Unrecognized stock-based compensation expense | ' | $80,500,000 | ' | ' | ' | ' | ' |
Unrecognized stock-based compensation expense, weighted-average period for recognition | ' | '2 years 4 months 24 days | ' | ' | ' | ' | ' |
Stockholders_Equity_Summary_of
Stockholders' Equity - Summary of Stock Option Activity (Detail) (Stock options [Member], USD $) | 9 Months Ended |
Sep. 30, 2014 | |
Stock options [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Number of Options, Outstanding at December 31, 2013 | 6,614,534 |
Number of Options, Granted | 851,213 |
Number of Options, Exercised | -1,593,563 |
Number of Options, Forfeited | -427,701 |
Number of Options, Expired | -243 |
Number of Options, Outstanding at September 30, 2014 | 5,444,240 |
Number of Options, Vested and exercisable at September 30, 2014 | 3,613,023 |
Weighted Average Exercise Price, Outstanding at December 31, 2013 | $22.12 |
Weighted Average Exercise Price, Granted | $75.57 |
Weighted Average Exercise Price, Exercised | $13.87 |
Weighted Average Exercise Price, Forfeited | $45.89 |
Weighted Average Exercise Price, Expired | $48.18 |
Weighted Average Exercise Price, Outstanding at September 30, 2014 | $31.02 |
Weighted Average Exercise Price, Vested and exercisable at September 30, 2014 | $18.42 |
Weighted Average Remaining Contractual Term (in years), Outstanding at September 30, 2014 | '6 years 5 months 27 days |
Weighted Average Remaining Contractual Term (in years), Vested and exercisable at September 30, 2014 | '5 years 5 months 5 days |
Aggregate Intrinsic Value, Outstanding at September 30, 2014 | $369.40 |
Aggregate Intrinsic Value, Vested and exercisable at September 30, 2014 | $290.70 |
Stockholders_Equity_Summary_of1
Stockholders' Equity - Summary of Stock Option Activity (Parenthetical) (Detail) (Stock options [Member], USD $) | Sep. 30, 2014 |
Stock options [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Closing stock price of common stock | $98.87 |
Stockholders_Equity_Summary_of2
Stockholders' Equity - Summary of Restricted Stock Units (Detail) (Restricted stock units [Member], USD $) | 9 Months Ended |
Sep. 30, 2014 | |
Restricted stock units [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Number of Shares, Unvested at December 31, 2013 | 311,347 |
Number of Shares, Granted | 345,034 |
Number of Shares, Vested | -37,952 |
Number of Shares, Forfeited | -74,254 |
Number of Shares, Unvested at September 30, 2014 | 544,175 |
Weighted-Average Grant-Date Fair Value, Unvested at December 31, 2013 | $52.57 |
Weighted-Average Grant-Date Fair Value, Granted | $79.85 |
Weighted-Average Grant-Date Fair Value, Vested | $53.11 |
Weighted-Average Grant-Date Fair Value, Forfeited | $62.73 |
Weighted-Average Grant-Date Fair Value, Unvested at September 30, 2014 | $68.64 |
Stockholders_Equity_Summary_of3
Stockholders' Equity - Summary of Stock Appreciation Rights Activity (Detail) (Stock Appreciation Rights [Member], USD $) | 9 Months Ended |
Sep. 30, 2014 | |
Stock Appreciation Rights [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Number of stock appreciation rights, Outstanding at December 31, 2013 | 806,116 |
Number of stock appreciation rights, Granted | ' |
Number of stock appreciation rights, Exercised | -58,850 |
Number of stock appreciation rights, Forfeited | -10,384 |
Number of stock appreciation rights, Outstanding at September 30, 2014 | 736,882 |
Number of stock appreciation rights, Vested and exercisable at September 30, 2014 | 494,136 |
Weighted Average Exercise Price, Outstanding at December 31, 2013 | $23.98 |
Weighted Average Exercise Price, Granted | ' |
Weighted Average Exercise Price, Exercised | $23.71 |
Weighted Average Exercise Price, Forfeited | $24.40 |
Weighted Average Exercise Price, Outstanding at September 30, 2014 | $23.99 |
Weighted Average Exercise Price, Vested and exercisable at September 30, 2014 | $24.01 |
Weighted Average Remaining Contractual Term (in years), Outstanding at September 30, 2014 | '7 years 11 days |
Weighted Average Remaining Contractual Term (in years), Vested and exercisable at September 30, 2014 | '6 years 11 months 9 days |
Aggregate Intrinsic Value, Outstanding at September 30, 2014 | $55.20 |
Aggregate Intrinsic Value, Vested and exercisable at September 30, 2014 | $37 |
Stockholders_Equity_Summary_of4
Stockholders' Equity - Summary of Stock Appreciation Rights Activity (Parenthetical) (Detail) (Stock Appreciation Rights [Member], USD $) | Sep. 30, 2014 |
Stock Appreciation Rights [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Closing stock price of common stock | $98.87 |
Stockholders_Equity_Schedule_o
Stockholders' Equity - Schedule of Black-Scholes Assumptions Used for Stock Options (Detail) (Stock options [Member]) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Risk-free interest rate | ' | 1.45% | ' | ' |
Estimated term (in years) | ' | '5 years 3 months | ' | ' |
Estimated volatility | ' | 68.00% | ' | ' |
Estimated dividend yield | ' | ' | ' | ' |
Minimum [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Risk-free interest rate | 1.56% | ' | 1.56% | 0.73% |
Estimated term (in years) | ' | ' | '5 years 22 days | '5 years 2 months 27 days |
Estimated volatility | ' | ' | 60.00% | 68.00% |
Estimated dividend yield | ' | ' | ' | ' |
Maximum [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Risk-free interest rate | 1.79% | ' | 1.79% | 1.55% |
Estimated term (in years) | '5 years 22 days | ' | '5 years 6 months | '5 years 6 months |
Estimated volatility | 63.00% | ' | 64.00% | 75.00% |
Estimated dividend yield | ' | ' | ' | ' |
Stockholders_Equity_Schedule_o1
Stockholders' Equity - Schedule of Black-Scholes Assumptions Used to Estimate Fair Value of Shares Issued under ESPP (Detail) (ESPP [Member]) | 9 Months Ended |
Sep. 30, 2014 | |
ESPP [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Risk-free interest rate | 0.06% |
Estimated term (in years) | '6 months |
Estimated volatility | 53.00% |
Estimated dividend yield | ' |
Stockholders_Equity_Schedule_o2
Stockholders' Equity - Schedule of Stock-Based Compensation Expense (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ' | ' | ' | ' |
Share-based compensation | $11,957 | $9,201 | $32,799 | $25,628 |
R&D expense [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ' | ' | ' | ' |
Share-based compensation | 4,611 | 3,765 | 13,236 | 11,202 |
SG&A expense [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ' | ' | ' | ' |
Share-based compensation | $7,346 | $5,436 | $19,563 | $14,426 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' |
Income tax provision | $8,419 | $58 | $9,971 | $123 |
Effective tax rate | 9.70% | ' | 8.20% | ' |
Excess tax benefits from stock-based compensation | $400 | ' | $362 | ' |
Fair_Value_Disclosures_Cash_Eq
Fair Value Disclosures - Cash Equivalents, as Well as Hierarchy for Financial Instruments Measured at Fair Value on Recurring Basis (Detail) (Money market funds [Member], USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash equivalents | $209,245 | $189,092 |
Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash equivalents | $209,245 | $189,092 |
Fair_Value_Disclosures_Fair_Va
Fair Value Disclosures - Fair Value of Other Financial Instruments Not Measured on Recurring Basis (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Bank deposits (included in "Cash and cash equivalents") | $321,053 | $228,788 | $157,968 | $71,301 |
Convertible Notes | 218,555 | 208,414 | ' | ' |
Fair value, measurements, nonrecurring [Member] | Fair Value [Member] | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Bank deposits (included in "Cash and cash equivalents") | 111,808 | 39,696 | ' | ' |
Convertible Notes | 363,902 | 277,145 | ' | ' |
Fair value, measurements, nonrecurring [Member] | Level 1 [Member] | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Bank deposits (included in "Cash and cash equivalents") | 111,808 | 39,696 | ' | ' |
Fair value, measurements, nonrecurring [Member] | Level 2 [Member] | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Convertible Notes | $363,902 | $277,145 | ' | ' |
Fair_Value_Disclosures_Additio
Fair Value Disclosures - Additional Information (Detail) (Fair value, measurements, nonrecurring [Member], USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Fair value, measurements, nonrecurring [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Estimated fair value of the debt | $503.30 | $383.30 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
In Millions, unless otherwise specified | Jun. 30, 2014 | Sep. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2013 |
sqft | Fifth Amendment To Lease Agreement [Member] | Fifth Amendment To Lease Agreement [Member] | Collateralized letters of credit [Member] | Collateralized letters of credit [Member] | Current asset [Member] | Long-term assets [Member] | Development milestone payments [Member] | Sales milestone payments [Member] | Sales milestone payments [Member] | Sales milestone payments [Member] | ||
sqft | Collateralized letters of credit [Member] | Collateralized letters of credit [Member] | Astellas Pharma Inc. [Member] | Astellas Pharma Inc. [Member] | Astellas Pharma Inc. [Member] | |||||||
Commitments And Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating lease office space, in square feet | ' | 127,000 | 29,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tenant improvement allowance | ' | ' | $0.90 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding letters of credit collateralized by restricted cash | ' | ' | 2.1 | ' | 12 | 9.9 | 0.4 | 11.6 | ' | ' | ' | ' |
Lease expiry period | ' | 'June 2019 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum lease payments over the lease term | ' | ' | ' | 9.6 | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate milestone payments upon achievement of certain development and regulatory milestone events | ' | ' | ' | ' | ' | ' | ' | ' | 2.8 | ' | ' | ' |
Percentage of sublicensing income | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | 10.00% | 10.00% | ' |
Royalty percentage on sales | ' | ' | ' | ' | ' | ' | ' | ' | 4.00% | ' | ' | ' |
License and research agreement fee | 12 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Milestone payments eligible to earn | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 320 | ' |
Milestone payments earned | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25 | 25 | ' |
Accrued payment to licensor | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2.50 |
Commitments_and_Contingencies_2
Commitments and Contingencies - Schedule of Future Operating Lease Obligations (Detail) (USD $) | Sep. 30, 2014 |
In Thousands, unless otherwise specified | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Operating Leases, Remainder of 2014 | $1,975 |
Operating Leases, 2015 | 8,008 |
Operating Leases, 2016 | 8,170 |
Operating Leases, 2017 | 8,334 |
Operating Leases, 2018 | 8,499 |
Operating Leases, 2019 and thereafter | 4,405 |
Total minimum lease payments | $39,391 |
Commitments_and_Contingencies_3
Commitments and Contingencies - Schedule of Future Lease Cash Payments under the Build to Suit Lease (Detail) (USD $) | Sep. 30, 2014 |
In Thousands, unless otherwise specified | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Build-To-Suit Lease, Remainder of 2014 | $349 |
Build-To-Suit Lease, 2015 | 2,435 |
Build-To-Suit Lease, 2016 | 2,537 |
Build-To-Suit Lease, 2017 | 2,614 |
Build-To-Suit Lease, 2018 | 2,692 |
Build-To-Suit Lease, 2019 and thereafter | 16,935 |
Total minimum lease payments | $27,562 |
Subsequent_Event_Additional_In
Subsequent Event - Additional Information (Detail) (Cure Tech [Member], Subsequent Event [Member], USD $) | 1 Months Ended |
In Millions, unless otherwise specified | Oct. 31, 2014 |
Subsequent Event [Line Items] | ' |
Purchase commitment | '3 years |
Reduction in upfront payment | $2 |
Potential reduction of tiered royalties payable to licensor | 1.00% |
Expected Period of voting | '2014-12 |
Percentage of share of largest shareholder | 53.00% |
Payments upon of certain development and regulatory milestones | 85 |
Maximum [Member] | ' |
Subsequent Event [Line Items] | ' |
Milestone payment under license agreement | 5 |
Sales based milestone payments | $245 |
Royalty percentage payable to licensor | 11.00% |
Minimum [Member] | ' |
Subsequent Event [Line Items] | ' |
Royalty percentage payable to licensor | 4.00% |