Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Jun. 30, 2014 | Aug. 05, 2014 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Jun-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Trading Symbol | 'ARDM | ' |
Entity Registrant Name | 'ARADIGM CORP | ' |
Entity Central Index Key | '0001013238 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 14,708,309 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $50,290 | $48,131 |
Restricted cash | 250 | ' |
Receivables | 1,068 | 92 |
Prepaid and other current assets | 975 | 1,448 |
Total current assets | 52,583 | 49,671 |
Property and equipment, net | 539 | 400 |
Other assets | 2,960 | 353 |
Total assets | 56,082 | 50,424 |
Current liabilities: | ' | ' |
Accounts payable | 3,979 | 619 |
Accrued clinical and cost of other studies | 1,717 | 1,831 |
Accrued compensation | 962 | 198 |
Deferred revenue | 438 | 4,379 |
Facility lease exit obligation | 180 | 168 |
Other accrued liabilities | 173 | 82 |
Total current liabilities | 7,449 | 7,277 |
Deferred rent | 120 | 132 |
Facility lease exit obligation, non-current | 210 | 297 |
Deferred revenue long term | 7,816 | ' |
Note payable, net of discount and accrued interest | ' | 9,035 |
Total liabilities | 15,595 | 16,741 |
Commitments and contingencies | ' | ' |
Shareholders' equity: | ' | ' |
Preferred stock, 5,000,000 shares authorized, none outstanding | 0 | 0 |
Common stock, no par value; authorized shares: 25,045,765 at June 30, 2014 and December 31, 2013; issued and outstanding shares: 14,708,309 at June 30, 2014; 14,681,274 at December 31, 2013 | 427,014 | 426,607 |
Accumulated deficit | -386,527 | -392,924 |
Total shareholders' equity | 40,487 | 33,683 |
Total liabilities and shareholders' equity | $56,082 | $50,424 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Statement Of Financial Position [Abstract] | ' | ' |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $0 | $0 |
Common stock, shares authorized | 25,045,765 | 25,045,765 |
Common stock, shares issued | 14,708,309 | 14,681,274 |
Common stock, shares outstanding | 14,708,309 | 14,681,274 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Revenue: | ' | ' | ' | ' |
Contract revenue - related party | $12,173 | ' | $18,415 | ' |
Grant revenue | 72 | ' | 261 | ' |
Royalty revenue | ' | 248 | 200 | 527 |
Total revenue | 12,245 | 248 | 18,876 | 527 |
Operating expenses: | ' | ' | ' | ' |
Research and development | 11,656 | 1,423 | 17,452 | 3,407 |
General and administrative | 1,931 | 1,118 | 3,582 | 2,338 |
Restructuring and asset impairment | 5 | 7 | 11 | 14 |
Total operating expenses | 13,592 | 2,548 | 21,045 | 5,759 |
Loss from operations | -1,347 | -2,300 | -2,169 | -5,232 |
Interest income | 1 | 1 | 3 | 3 |
Interest expense | ' | -407 | -288 | -801 |
Other expense | -12 | -4 | -13 | -5 |
Gain on assignment of royalty interests | ' | ' | 5,823 | ' |
Gain from extinguishment of debt | ' | ' | 3,041 | ' |
Net income (loss) | -1,358 | -2,710 | 6,397 | -6,035 |
Change in unrealized gains (losses) on available-for-sale securities | ' | ' | ' | ' |
Comprehensive income (loss) | ($1,358) | ($2,710) | $6,397 | ($6,035) |
Basic net income (loss) per common share | ($0.09) | ($0.43) | $0.44 | ($0.96) |
Diluted net income (loss) per common share | ($0.09) | ($0.43) | $0.43 | ($0.96) |
Shares used in computing basic net income (loss) per common share | 14,697 | 6,260 | 14,683 | 6,255 |
Shares used in computing diluted net income (loss) per common share | 14,697 | 6,260 | 14,717 | 6,255 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Cash Flows (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Cash flows from operating activities: | ' | ' |
Net income (loss) | $6,397 | ($6,035) |
Adjustments to reconcile net loss to cash used in operating activities: | ' | ' |
Amortization and accretion of investments | ' | 28 |
Depreciation and amortization | 148 | 185 |
Stock-based compensation expense | 338 | 204 |
Amortization of note discount | 19 | 42 |
Gain on assignment of royalty interests | -5,823 | ' |
Gain from extinguishment of debt | -3,041 | ' |
Changes in operating assets and liabilities: | ' | ' |
Receivables | -976 | -18 |
Restricted cash | -250 | ' |
Prepaid and other current assets | 473 | -114 |
Other assets | -2,844 | 55 |
Accounts payable | 3,360 | 468 |
Accrued compensation | 764 | 113 |
Current deferred revenue | -3,941 | ' |
Other liabilities | 24 | 219 |
Deferred rent | -12 | ' |
Deferred revenue | 7,816 | ' |
Facility lease exit obligation | -75 | -64 |
Net cash provided by (used in) operating activities | 2,377 | -4,917 |
Cash flows from investing activities: | ' | ' |
Capital expenditures | -287 | -7 |
Purchases of short-term investments | ' | -2,622 |
Proceeds from sales and maturities of short-term investments | ' | 1,786 |
Net cash used in investing activities | -287 | -843 |
Cash flows from financing activities: | ' | ' |
Proceeds from issuance of common stock | 69 | 39 |
Net cash provided by financing activities | 69 | 39 |
Net increase (decrease) in cash and cash equivalents | 2,159 | -5,721 |
Cash and cash equivalents at beginning of period | 48,131 | 7,414 |
Cash and cash equivalents at end of period | 50,290 | 1,693 |
Supplemental disclosure of cash flow information: | ' | ' |
Non cash reduction in other assets | -237 | ' |
Non cash reduction in note payable from extinguishment of debt and assignment of royalty interests | ($9,101) | ' |
Organization_Basis_of_Presenta
Organization, Basis of Presentation and Liquidity | 6 Months Ended |
Jun. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Organization, Basis of Presentation and Liquidity | ' |
1. Organization, Basis of Presentation and Liquidity | |
Organization | |
Aradigm Corporation (the “Company,” “we,” “our,” or “us”) is a California corporation, incorporated in 1991, focused on the development and commercialization of drugs delivered by inhalation for the treatment and prevention of severe respiratory diseases. The Company’s principal activities to date have included conducting research and development and developing collaborations. Management does not anticipate receiving revenues from the sale of any of its products during the year. The Company operates as a single operating segment. | |
Basis of Presentation | |
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Certain information and footnote disclosures normally included in financial statements prepared in accordance with United States GAAP have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). In the opinion of management, the financial statements reflect all adjustments, which are of a normal recurring nature, necessary for fair presentation. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013, as filed with the SEC on March 13, 2014 (the “2013 Annual Report on Form 10-K”). The results of the Company’s consolidated operations for the interim periods presented are not necessarily indicative of operating results for the full fiscal year or any future interim period. | |
The consolidated balance sheet at December 31, 2013 has been derived from the audited financial statements at that date, but does not include all of the information and footnotes required by GAAP for complete financial statements. For further information, please refer to the consolidated financial statements and notes thereto included in the 2013 Annual Report on Form 10-K. | |
The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary. All inter-company accounts and transactions have been eliminated in consolidation. | |
Liquidity | |
The Company has incurred significant operating losses and negative cash flows from operations. At June 30, 2014, the Company had an accumulated deficit of $386.5 million, working capital of $45.1 million and shareholders’ equity of $40.5 million. The Company had cash and cash equivalents of approximately $50.3 million as of June 30, 2014. Management believes that this amount will be sufficient to meet its obligations through the year ended December 31, 2014. However, the Company’s business strategy may require it to, or it may otherwise determine to, raise additional capital at any time through equity financing(s), strategic transactions or otherwise. Such additional funding may be necessary to develop the Company’s potential product candidates. In addition, the Company may determine to raise capital opportunistically. | |
Reverse Stock Split | |
On May 13, 2014, the Company filed an amendment to its Amended and Restated Articles of Incorporation which effected on May 23, 2014 a 1-for-40 reverse split of all outstanding shares of the Company’s common stock (the “Reverse Split”) and reduced the number of authorized shares of common stock from 1,001,830,627 to 25,045,765. Any fractional shares of common stock resulting from the Reverse Split were settled in cash equal to the fraction of a share to which the holder was entitled. | |
All shares, stock options, warrants to purchase common stock and per share information presented in the consolidated financial statements have been adjusted to reflect the Reverse Split on a retroactive basis for all periods presented and all share information is rounded down to the nearest whole share after reflecting the Reverse Split. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Summary of Significant Accounting Policies | ' |
2. Summary of Significant Accounting Policies | |
Use of Estimates | |
The preparation of financial statements, in conformity with GAAP, requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. These estimates include useful lives for property and equipment and related depreciation calculations, assumptions for valuing options and warrants, and income taxes. Actual results could differ from these estimates. | |
Cash and Cash Equivalents | |
All highly liquid investments with maturities of three months or less at the time of purchase are classified as cash equivalents. | |
Inventories | |
Inventories are valued at the lower of cost or market. Cost is determined using the first-in, first-out method for all inventories, which are valued using a weighted average cost method. Inventory includes the cost of raw materials. The Company’s policy is to write down inventory that has become obsolete, inventory that has a cost basis in excess of its expected net realizable value and inventory in excess of expected requirements. Inventories are included in prepaid and other current assets in the condensed consolidated balance sheet. | |
Investments | |
Management determines the appropriate classification of the Company’s marketable securities, which consist solely of debt securities, at the time of purchase. All investments are classified as available-for-sale, carried at estimated fair value and reported in short-term investments. Unrealized gains and losses on available-for-sale securities are excluded from earnings and losses. Fair values of investments are based on quoted market prices where available. Investment income is recognized when earned and includes interest, dividends, amortization of purchase premiums and discounts, and realized gains and losses on sales of securities. The cost of securities sold is based on the specific identification method. The Company regularly reviews all of its investments for other-than-temporary declines in fair value. When the Company determines that the decline in fair value of an investment below the Company’s accounting basis is other-than-temporary, the Company reduces the carrying value of the securities held and records a loss equal to the amount of any such decline. No such reductions have been required during any of the periods presented. | |
Property and Equipment | |
The Company records property and equipment at cost and calculates depreciation using the straight-line method over the estimated useful lives of the respective assets. Machinery and equipment includes external costs incurred for validation of the equipment. The Company does not capitalize internal validation expense. Computer equipment and software includes capitalized computer software. All of the Company’s capitalized software is purchased; the Company has no internally developed computer software. Leasehold improvements are depreciated over the shorter of the term of the lease or life of the improvement. | |
Impairment of Long-Lived Assets | |
The Company reviews for impairment whenever events or changes in circumstances indicate that the carrying amount of property and equipment may not be recoverable. Determination of recoverability is based on an estimate of undiscounted future cash flows resulting from the use of the asset and its eventual disposition. In the event that such cash flows are not expected to be sufficient to recover the carrying amount of the assets, the assets are written down to their estimated fair values and the loss is recognized in the consolidated statements of operations. | |
Accounting for Costs Associated with Exit or Disposal Activities | |
The Company recognizes a liability for the cost associated with an exit or disposal activity that is measured initially at its fair value in the period in which the liability is incurred. The Company accounted for the partial sublease of its headquarters building as an exit activity and recorded the sublease loss in its statement of operations and comprehensive income (loss) (see Note 5). | |
Costs to terminate an operating lease or other contracts are (a) costs to terminate the contract before the end of its term or (b) costs that will continue to be incurred under the contract for its remaining term without economic benefit to the entity. In periods subsequent to initial measurement, changes to the liability are measured using the credit-adjusted risk-free rate that was used to measure the liability initially. | |
Revenue Recognition | |
Revenues consist of contract revenue, grant revenue and royalty revenue. Contract revenue is primarily generated through agreements with strategic partners for the development and commercialization of our product candidates. The terms of the agreement typically include non-refundable upfront fees, funding of research and development activities, payments based upon achievement of milestones and royalties on net product sales. The Company recognizes revenue under the provisions of the Securities and Exchange Commission issued Staff Accounting Bulletin 104, Topic 13, Revenue Recognition Revised and Updated (“SAB Topic 13”) and ASC 605-25 Revenue Recognition-Multiple Elements. Revenue for arrangements not having multiple deliverables, as outlined in ASC 605-25, is recognized once costs are incurred and collectability is reasonably assured. | |
Revenue is recognized when there is persuasive evidence that an arrangement exists, delivery has occurred, the price is fixed and determinable and collection is reasonably assured. Multiple-deliverable arrangements, such as license and development agreements, are analyzed to determine whether the deliverables can be separated or whether they must be accounted for as a single unit of accounting. When deliverables are separable, consideration received is allocated to the separate units of accounting based on the relative selling price method and the appropriate revenue recognition principles are applied to each unit. When the Company determines that an arrangement should be accounted for as a single unit of accounting, it must determine the period over which the performance obligations will be performed and revenue will be recognized. | |
The Company estimates its performance period used for revenue recognition based on the specific terms of each agreement, and adjusts the performance periods, if appropriate, based on the applicable facts and circumstances. Significant management judgment may be required to determine the level of effort required under an arrangement and the period over which the Company is expected to complete its performance obligations under the arrangement. If the Company cannot reasonably estimate when its performance obligations either are completed or become inconsequential, then revenue recognition is deferred until the Company can reasonably make such estimates. Revenue is then recognized over the remaining estimated period of performance using the cumulative catch-up method. | |
The Company prospectively adopted the provisions of Accounting Standards Update No. 2009-13, Revenue Recognition (Topic 605); Multiple-Deliverable Revenue Arrangements (“ASU 2009-13”) for new and materially modified arrangements originating on or after January 1, 2010. ASU 2009-13 provides updated guidance on how the deliverables in an arrangement should be separated, and how consideration should be allocated, and it changes the level of evidence of standalone selling price required to separate deliverables by allowing a vendor to make its best estimate of the standalone selling price of deliverables when vendor-specific objective evidence or third-party evidence of selling price is not available. | |
The Company allocates non-contingent consideration to each stand-alone deliverable based upon the relative selling price of each element. When applying the relative selling price method, the Company determines the selling price for each deliverable using vendor-specific objective evidence, or VSOE, of selling price, if it exists, or third-party evidence, or TPE, of selling price, if it exists. If neither VSOE nor TPE of selling price exist for a deliverable, the Company uses best estimated selling price, or BESP, for that deliverable. | |
Assuming the elements meet the revenue recognition guidelines, the revenue recognition methodology prescribed for each unit of accounting is summarized below: | |
Upfront Fees — The Company defers recognition of non-refundable upfront fees if there are continuing performance obligations without which the technology licensed has no utility to the licensee. If the Company has continuing performance obligations through research and development services that are required because know-how and expertise related to the technology is proprietary to the Company, or can only be performed by the Company, then such up-front fees are deferred and recognized over the estimated period of the performance obligation. The Company bases the estimate of the period of performance on factors in the contract. Actual time frames could vary and could result in material changes to the results of operations. When the collaboration partners request the Company to continue performing the research and development services in collaboration beyond the initial period of performance the remaining unamortized deferred revenue and any new continuation or license fees are recognized over the extended period of performance. | |
Funded Research and Development — Revenue from research and development services is recognized during the period in which the services are performed and is based upon the number of full-time-equivalent personnel working on the specific project at the agreed-upon rate. The full-time equivalent amount can vary each year if the contracts allow for a percentage increase determined by relevant salary surveys, if applicable. Reimbursements from collaborative partners for agreed upon direct costs including direct materials and outsourced, or subcontracted, pre-clinical and clinical studies and contract manufacturing are classified as revenue and recognized in the period the reimbursable expenses are incurred. Payments received in advance are recorded as deferred revenue until the research and development services are performed or costs are incurred. | |
Milestones — Substantive milestone payments are considered to be performance bonuses that are recognized upon achievement of the milestone only if all of the following conditions are met: the milestone payments are non-refundable; achievement of the milestone involves a degree of risk and was not reasonably assured at the inception of the arrangement; substantive effort is involved in achieving the milestone; the amount of the milestone is reasonable in relation to the effort expended or the risk associated with achievement of the milestone; and a reasonable amount of time passes between the up-front license payment and the first milestone payment as well as between each subsequent milestone payment. If any of these conditions are not met, the milestone payments are deferred and recognized as revenue over the term of the arrangement as the Company completes its performance obligations. | |
Royalties — The Company recognizes royalty revenues from licensed products upon the sale of the related products. | |
Research and Development | |
Research and development expenses consist of costs incurred for company-sponsored, collaborative and contracted research and development activities. These costs include direct and research-related overhead expenses. The Company expenses research and development costs as such costs are incurred. | |
Stock-Based Compensation | |
The Company accounts for share-based payment arrangements in accordance with ASC 718, Compensation-Stock Compensation and ASC 505-50, Equity-Equity Based Payments to Non-Employees which requires the recognition of compensation expense, using a fair-value based method, for all costs related to share-based payments including stock options and restricted stock awards and stock issued under the employee stock purchase plan. These standards require companies to estimate the fair value of share-based payment awards on the date of the grant using an option-pricing model. See Note 8 for further discussion of the Company’s stock-based compensation plans. | |
Income Taxes | |
The Company makes certain estimates and judgments in determining income tax expense for financial statement purposes. These estimates and judgments occur in the calculation of certain tax assets and liabilities, which arise from differences in the timing of recognition of revenue and expense for tax and financial statement purposes. As part of the process of preparing the financial statements, the Company is required to estimate income taxes in each of the jurisdictions in which it operates. This process involves the Company estimating its current tax exposure under the most recent tax laws and assessing temporary differences resulting from differing treatment of items for tax and accounting purposes. These differences result in deferred tax assets and liabilities, which are included in the Company’s consolidated balance sheets. The Company estimated its current tax exposure to be zero as it expects to be able to utilize its NOLs to offset the income recognized in the quarter and year to date. The Company has updated its Section 382 analysis through December 31, 2013 and noted no additional changes since the last change in 2010. | |
The Company assesses the likelihood that it will be able to recover its deferred tax assets. The Company considers all available evidence, both positive and negative, including the historical levels of income and losses, expectations and risks associated with estimates of future taxable income and ongoing prudent and feasible tax planning strategies in assessing the need for a valuation allowance. If the Company does not consider it more likely than not that it will recover its deferred tax assets, the Company records a valuation allowance against the deferred tax assets that it estimates will not ultimately be recoverable. At June 30, 2014 and December 31, 2013, the Company believed that the amount of its deferred income taxes would not be ultimately recovered. Accordingly, the Company recorded a full valuation allowance for deferred tax assets. However, should there be a change in the Company’s ability to recover its deferred tax assets, the Company would recognize a benefit to its tax provision in the period in which it determines that it is more likely than not that it will recover its deferred tax assets. | |
During the six months ended June 30, 2014, the Company had pre-tax income of $6.4 million. The provision for Federal and state income taxes related to such pre-tax income has been offset by the utilization of available net operating loss carryovers. Accordingly, the Company reduced its valuation allowance and recognized a tax benefit in an amount equal to the provision for tax on such pre-tax income. | |
Net Income/(Loss) Per Common Share | |
Basic net income/(loss) per common share is computed using the weighted-average number of shares of common stock outstanding during the period less the weighted-average number of restricted shares of common stock subject to repurchase. Diluted net income/(loss) per common share is based on the weighted average number of common and common equivalent shares, such as stock options and unvested restricted stock shares outstanding during the period. Potentially dilutive securities were included for the six months ended June 30, 2014 but were excluded in the other periods presented because inclusion of such shares would have been anti-dilutive. | |
Recently Issued Accounting Pronouncements | |
In April 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity (“ASU 2014-08”) which raises the threshold for a disposal to qualify as a discontinued operation and requires new disclosures of both discontinued operations and certain other disposals that do not meet the definition of a discontinued operation. ASU 2014-08 is effective for annual periods beginning on or after December 15, 2014. Early adoption is permitted but only for disposals that have not been reported in financial statements previously issued. The adoption of this guidance is not expected to have an impact on the Company’s consolidated financial statements. | |
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”). The standard provides companies with a single model for use in accounting for revenue arising from contracts with customers and supersedes current revenue recognition guidance, including industry-specific revenue guidance. The core principle of the model is to recognize revenue when control of the goods or services transfers to the customer, as opposed to recognizing revenue when the risks and rewards transfer to the customer under the existing revenue guidance. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2016. Early adoption is not permitted. The guidance permits companies to either apply the requirements retrospectively to all prior periods presented, or apply the requirements in the year of adoption, through a cumulative adjustment. The Company is in the process of evaluating the impact of adoption on its consolidated financial statements. | |
In June 2014, the FASB issued ASU No. 2014-12, Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. (“ASU 2014-12”). The standard provides guidance that a performance target that affects vesting of a share-based payment and that could be achieved after the requisite service condition is a performance condition. As a result, the target is not reflected in the estimation of the award’s grant date fair value. Compensation cost for such award would be recognized over the required service period, if it is probably that the performance condition will be achieved. ASU 2014-12 is effective for annual reporting periods beginning after December 15, 2015. Early adoption is permitted. The guidance should be applied on a prospective basis to awards that are granted or modified on or after the effective date. Companies also have the option to apply the amendments on a modified retrospective basis for performance targets outstanding on or after the beginning of the first annual period presented as of the adoption date. The Company is in the process of evaluating the impact of adoption on its consolidated financial statements. |
Cash_and_Cash_Equivalents
Cash and Cash Equivalents | 6 Months Ended |
Jun. 30, 2014 | |
Cash And Cash Equivalents [Abstract] | ' |
Cash and Cash Equivalents | ' |
3. Cash and Cash Equivalents | |
At June 30, 2014 and December 31, 2013, the amortized cost of the Company’s cash and cash equivalents approximated their fair values. The Company currently invests its cash and cash equivalents in money market funds. |
Fair_Value_Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2014 | |
Fair Value Disclosures [Abstract] | ' |
Fair Value Measurements | ' |
4. Fair Value Measurements | |
The Company follows ASC 820, Fair Value Measurements, which clarifies the definition of fair value, prescribes methods for measuring fair value, establishes a fair value hierarchy based on the inputs used to measure fair value and requires disclosures about the use of fair value measurements. The fair value hierarchy has three levels based on the reliability of the inputs used to determine fair value. Level 1 values are based on quoted prices in active markets. Level 2 values are based on significant other observable inputs. Level 3 values are based on significant unobservable inputs. | |
The Company’s cash and cash equivalents at June 30, 2014 consist of cash and money market funds. Money market funds are valued using quoted market prices. |
Sublease_Agreement_and_Lease_E
Sublease Agreement and Lease Exit Liability | 6 Months Ended | ||||
Jun. 30, 2014 | |||||
Restructuring And Related Activities [Abstract] | ' | ||||
Sublease Agreement and Lease Exit Liability | ' | ||||
5. Sublease Agreement and Lease Exit Liability | |||||
On July 18, 2007, the Company entered into a sublease agreement with Mendel Biotechnology, Inc. (“Mendel”) to lease approximately 48,000 square feet of the Company’s 72,000 square foot headquarters facility located in Hayward, California. In April 2009, the Company entered into an amendment to its sublease agreement with Mendel to sublease an additional 1,550 square feet. In January 2012, the Company entered into a second amendment to the sublease with Mendel in which Mendel leased an additional 3,300 square feet and at that time Mendel waived their right to early termination. The sublease with Mendel now expires concurrently with the Company’s master lease for the Hayward facility in July of 2016. | |||||
During the year ended December 31, 2007, the Company recorded a $2.1 million lease exit liability and related expense for the expected loss on the sublease, because the monthly payments the Company expects to receive under the sublease are less than the amounts that the Company will owe the lessor for the sublease space. The Company recorded an additional sublease loss on the subsequent amendment of the lease in April of 2009. The fair value of the lease exit liability was determined using a credit-adjusted risk-free rate to discount the estimated future net cash flows, consisting of the minimum lease payments to the lessor for the sublease space and payments the Company will receive under the sublease. The sublease loss and ongoing accretion expense required to record the lease exit liability at its fair value using the interest method have been recorded as part of restructuring and asset impairment expense in the consolidated statement of operations and comprehensive loss. | |||||
The lease exit liability activity for the six months ended June 30, 2014 is as follows (in thousands): | |||||
Six Months Ended | |||||
June 30, 2014 | |||||
Balance at January 1, 2014 | $ | 465 | |||
Accretion expense | 11 | ||||
Lease payments | (86 | ) | |||
Balance at June 30, 2014 | $ | 390 | |||
As of June 30, 2014, $180,000 of the $390,000 balance was recorded as a current liability and $210,000 was recorded as a non-current liability. |
Collaboration_Agreement
Collaboration Agreement | 6 Months Ended |
Jun. 30, 2014 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ' |
Collaboration Agreement | ' |
6. Collaboration Agreement | |
Grifols License and Collaboration Agreement | |
On May 20, 2013, the Company and Grifols, S.A., (“Grifols”) and certain other investors (the “Investors”) entered into a Stock Purchase Agreement (the “Stock Purchase Agreement”), pursuant to which the Company agreed, subject to the terms and conditions set forth in the Stock Purchase Agreement, to issue and sell a total of 5,244,363 shares of the Company’s common stock (“Common Stock”) (209,774,558 shares prior to the 1-for-40 Reverse Split), to Grifols and an additional 3,104,838 shares of Common Stock (124,193,546, shares prior to the 1-for-40 Reverse Split) to the Investors, for a total sale 8,349,201 shares of Common Stock (the “Company Stock Sale”) (333,968,104 shares prior to the 1-for-40 Reverse Split), for a purchase price of $4.96 per share ($0.124 per share prior to the 1-for-40 Reverse Split). The aggregate gross consideration paid to the Company in August 2013 in the Company Stock Sale was approximately $41.4 million. | |
In conjunction with signing the Stock Purchase Agreement, the Company and Grifols agreed to enter into a License and Collaboration Agreement (the “License Agreement”) at the closing of the Company Stock Sale; Grifols and the Company are considered to be related parties and as a result, all transactions between the two entities will be recognized as related party transactions. The License Agreement exclusively licenses the Company’s inhaled liposomal ciprofloxacin compounds for the indication of non-cystic fibrosis bronchiectasis and other indications (the “Program”) to Grifols on a worldwide basis. Grifols funds development expenses and will commercialize products from the Program (“Products”), and pay development milestones and royalties on future commercial sales of Products. The License Agreement is described further below. | |
On July 15, 2013 shareholders of the Company (i) approved certain amendments to the Company’s charter, including amendments necessary to increase the total number of shares of Common Stock authorized to be issued by the Company to at least 17,670,765 shares (706,830,627 shares prior to the 1-for-40 Reverse Split), including the 8,349,201 shares (333,968,104 shares prior to the 1-for-40 Reverse Split) to be sold in the Company Stock Sale (the “Charter Amendment”) and (ii) approved the Company’s closing of the Company Stock Sale and entering into the License Agreement, Governance Agreement and other agreements described below and in the Stock Purchase Agreement (the “Transactions”). Shareholders of the Company holding more than 50% of the outstanding shares of the Company’s Common Stock voted in favor of these proposals at the special meeting. | |
The closing of the Transactions was subject to certain closing conditions, including, among others the Company’s entering into binding terms with a third party to commercially manufacture Products to permit the Company to satisfy its obligation to commercially supply Grifols with Products. All conditions to the closing of the Transactions were met as of August 27, 2013 and the Company Stock Sale was completed on August 27, 2013. | |
In August of 2013 Grifols paid approximately $26.0 million for the shares of the Company’s common stock at a purchase price of $4.96 per share ($0.124 per share prior to the 1-for-40 Reverse Split), which reflected the contractual price for the Company’s common stock as stated in the Stock Purchase Agreement on May 20, 2013. Following the announcement of the collaboration, execution of a supply agreement and satisfaction of the other conditions of closing, the stock price rose to $8.00 per share at the time of closing ($0.20 per share prior to the 1-for-40 Reverse Split). Consequently, the contractual price of $4.96 per share ($0.124 per share prior to the 1-for-40 Reverse Split) resulted in a $3.04 per share ($0.076 per share prior to the 1-for-40 Reverse Split) discount from the August 27, 2013 closing price of $8.00 per share ($0.20 per share prior to the 1-for-40 Reverse Split), or a discount of approximately $15.9 million from the fair market value of the common stock on the effective date of the Grifols License and Collaboration Agreement. The Company determined this transaction was not within the scope of ASC 605-25 and accordingly, the Company recorded the sale of common stock to Grifols at fair value based on the closing price of the Company’s stock on August 27, 2013 at $8.00 per share ($0.20 per share price prior to the 1-for-40 Reverse Split). This discount, which is a non-cash charge, was recorded as Collaboration Arrangement Acquisition Cost in the Company’s Consolidated Statement of Operations and Comprehensive Loss for the year ended December 31, 2013. | |
License Agreement | |
The License Agreement was signed simultaneously with the closing of the Company Stock Sale. Under the License Agreement, the Company granted to Grifols an exclusive license to the Program, the lead product candidate of which is named Pulmaquin®. The license permits Grifols to commercialize Products throughout the world and grants Grifols a back-up manufacturing right to produce Products. | |
The Company is responsible for developing the Product for non-cystic fibrosis bronchiectasis or pulmonary infections associated with non-cystic fibrosis bronchiectasis, in accordance with an agreed upon development plan and pursuant to a Grifols-funded budget of $65 million (which includes allocations for the Company’s internal, fully-burdened expenses). Any excess expenses are the responsibility of the Company. The Company will develop the Product for additional indications at Grifols’ sole expense if Grifols elects to pursue such development. Pursuant to the Grifols License and Collaboration Agreement, the Company recognized reimbursements of development costs from Grifols as Contract revenue – related party totaling $12.2 million and $18.4 million for the three and six month periods ended June 30, 2014, respectively. | |
The Company is responsible for obtaining regulatory approval of the first indication for the Product in the United States and the European Union. Grifols is responsible for additional regulatory expenses, including the cost of obtaining approval outside the United States and European Union, and the cost of maintaining approvals globally. Grifols is responsible to use diligent efforts to commercialize the Product in countries where regulatory approval has been obtained. | |
The Company is responsible for supplying Grifols’ requirements of the Product, and must establish primary and back-up suppliers acceptable to Grifols. Grifols will purchase Products from the Company on a cost pass-through basis plus a margin. | |
The collaboration between Grifols and the Company is governed by a joint committee comprised of equal representation by the Company and Grifols and operated on a consensus basis. In the event that the parties do not agree, Grifols has deciding authority, except with respect to specific matters specified in the License Agreement. The Company has no obligation to participate in the joint committee after the first commercial sale of the product, but may do so at its discretion. Accordingly, the Company determined that it can separate performance obligations that occur over the development period from performance obligations that will occur during the commercialization period. | |
With respect to the US and EU development and approval of Pulmaquin for non-cystic fibrosis bronchiectasis management, Grifols will pay to Aradigm reimbursements of development costs up to $65 million and development milestone payments of up to $25 million. Additionally, royalty payments on a country-by-country basis on net sales at a rate of either 12.5% or 20% (depending on the amount of net sales) for so long as there is patent coverage or orphan drug designation (or, if longer, 10 years), except that payments will be reduced by half on a country-by-country basis in the event that another inhaled liposomal product containing ciprofloxacin is being sold for an indication for which the Aradigm product has regulatory approval. Royalty payments may also be reduced by 50% if Aradigm has no valid patent claim or orphan drug protection in that country. | |
The Company’s deliverables include an exclusive license for inhaled ciprofloxacin compounds for the indication of non-cystic fibrosis bronchiectasis and other indications, payment of development costs over $65 million for the non-cystic fibrosis bronchiectasis indication and participation on a Joint Steering Committee (“JSC”). Having determined that both the development and JSC do not have standalone value from the license, the Company combined these deliverables into a single unit of accounting. The Company is recognizing reimbursements of development expenses as collaboration services are performed and costs are incurred. During the six months ended June 30, 2014, the Company recognized $18.4 million in contract revenue related to services performed and costs incurred during the period. Revenue has been recognized under the License Agreement at June 30, 2014 as follows: the Company has a current deferred revenue balance of $0.4 million and a long-term deferred revenue balance of $7.8 million for the $5 million milestone paid upon the dosing of the first patient in a Phase III clinical trial and for reimbursements billed in advance of performance of collaboration services for the quarter ended June 30, 2014, and has recognized contract revenues of $12.2 million in the quarter ended June 30, 2014 for the reimbursement of fully burdened development expenses for collaboration services performed and costs incurred related to development of Pulmaquin for non-cystic fibrosis bronchiectasis. | |
Costs incurred under the Grifols License Agreement in the quarters ended June 30, 2014 and 2013 are $12.2 million and zero. Costs incurred under the Grifols License Agreement for the six months ended June 30, 2014 and 2013 are $18.4 million and zero. Development expenses are fully burdened and include direct costs reported as research and development expenses and collaboration-related general and administrative expenses. | |
Option Agreement | |
Simultaneously with execution of the License Agreement, Aradigm entered into an Option Agreement (the “Option Agreement”) with Grifols granting Grifols a limited term option to license Aradigm’s AERx® pulmonary drug delivery platform for use with another molecule. The Option Agreement afforded Grifols through December 2013 to conduct a diligence assessment. The Option period may only be extended with the mutual agreement of both parties. | |
Governance Agreement | |
The Governance Agreement sets forth certain rights and obligations of the Company and Grifols concerning, among other things, certain corporate governance matters, certain limitations on future acquisitions of shares of Common Stock by Grifols, and certain rights by Grifols to maintain a target level of ownership in the Company. | |
On the date the Governance Agreement was executed, the Company’s board of directors was reconstituted to consist of its chief executive officer, three independent directors under the NASDAQ Marketplace Rules and two persons designated by Grifols. The number of persons Grifols is entitled to designate for consideration for election to the Company’s board of directors by the Company’s nominating committee will thereafter depend on the percentage of beneficial ownership of the Company held by Grifols and the total number of directors on the board. | |
The Governance Agreement also provides that during the period beginning on the date of Closing and ending 12 months after the first commercial sale of a Product (the “Restricted Period”), Grifols will not directly or indirectly acquire or offer to acquire any shares of Common Stock except (i) with the approval of the Company’s board of directors and a majority of its independent directors, (ii) effected solely to the extent necessary to maintain the beneficial ownership of Grifols and its affiliates at an amount equal to 35% (the “Target Percentage”) of the shares of Common Stock on a Fully Diluted Basis (as defined in the Governance Agreement), or (iii) in order to maintain its ownership percentage in the event that the Company issues new securities, in accordance with the provisions of the Governance Agreement. The Restricted Period terminates upon the occurrence of certain events, including a change in control of the Company and a third party publicly proposing to acquire the Company. The Governance Agreement further imposes certain “standstill” obligations on Grifols during the Restricted Period, pursuant to which Grifols and certain related persons are prohibited from soliciting proxies from the Company’s shareholders, granting proxies or entering into voting agreements and seeking additional representation on the Company’s Board of Directors. | |
The Governance Agreement provides Grifols with certain preemptive rights to participate in future issuances of Common Stock or equivalents of Common Stock by the Company, or the right to acquire shares of Common Stock from third parties or on the open market to maintain its Fully Diluted Ownership at the Target Percentage. | |
The Governance Agreement requires the approval of Grifols for certain actions by the Company which would adversely affect Grifols’ rights under the Governance Agreement, and for the Company to terminate the employment of its Chief Executive Officer or to appoint any successor Chief Executive Officer. | |
Registration Rights Agreements | |
In connection with and concurrently with the closing of the Company Stock Sale, the Company entered into a Registration Rights Agreement with Grifols (the “Grifols Registration Rights Agreement”), pursuant to which the Company agreed to provide registration rights to Grifols with respect to the shares of Common Stock to be acquired in the Company Stock Sale. Under such agreement, Grifols will be entitled to require the Company to file with the SEC certain registration statements under the Securities Act of 1933, as amended (the “Securities Act”), with respect to the resale of the shares of Common Stock acquired by Grifols in the Company Stock Sale up to three times on Form S-1 and up to six times on Form S-3, and to include its shares of Common Stock in any registration the Company proposes for its own account or for the account of one or more of its shareholders. | |
In connection with and concurrently with the closing of the Company Stock Sale, the Company and the Investors also entered into a Registration Rights Agreement (the “Investors Registration Rights Agreement”). Pursuant to the Investors Registration Rights Agreement, the Company is required to file a registration statement to cover the resale of the shares of the Common Stock acquired by the investors in the Company Stock Sale. The failure on the part of the Company to satisfy the deadlines set forth in the Investors Registration Rights Agreement may subject the Company to payment of certain monetary penalties. In addition, pursuant to the terms of the Stock Purchase Agreement, the Company has agreed, among other things, not to file any other registration statement (other than any registration statement on Form S-4 or Form S-8, and subject to certain other limitations and exclusions) until the Common Stock subject thereto is covered by an effective registration statement or freely salable under Rule 144 under the Securities Act. |
Royalty_Agreement_Note_Payable
Royalty Agreement, Note Payable and Accrued Interest | 6 Months Ended |
Jun. 30, 2014 | |
Text Block [Abstract] | ' |
Royalty Agreement, Note Payable and Accrued Interest | ' |
7. Royalty Agreement, Note Payable and Accrued Interest | |
Royalty Financing | |
In June 2011, the Company entered into an $8.5 million royalty financing agreement with a syndicate of lenders. The agreement created a debt obligation (the “Term Loan”) that was to be repaid through and secured by royalties from net sales of the SUMAVEL DosePro needle-free delivery system payable to the Company under its Asset Purchase Agreement (“APA”) with Zogenix. | |
Under the terms of the royalty financing agreement, the Company received a loan of $8.5 million, less fees and expenses (approximately $473,000) and $250,000 set aside for an Interest Reserve Account. The lenders were entitled to receive 100% of all royalties payable to the Company under the APA until the principal and accrued interest of the Term Loan were fully repaid. The lenders had no recourse to the assets of Aradigm other than the right to receive the royalty payments for repayment of the loan. | |
The Company capitalized the fees and expenses of approximately $473,000 and recorded this amount in other assets. The capitalized expenses were to be amortized to interest expense using the effective interest method over a period of 48 months, however, the full amount of the remaining capitalized fees and expenses were recognized in the three months ended March 31, 2014, which was the accounting period following the completion of the transfer of payment rights to the lenders as described below. | |
In connection with the original royalty financing transaction, the Company issued to the lenders warrants to purchase a total of 71,022 shares of the Company’s common stock (2,840,909 shares prior to the 1-for-40 Reverse Split) at a strike price of $8.80 per share ($0.22 per share prior to the 1-for-40 Reverse Split), representing a 20% premium above the average closing price of the Company’s common stock for the ten trading days immediately preceding the closing of the royalty financing transaction. The warrants expire on December 31, 2016. In accordance with Accounting Standards Topic 815 — Derivatives and Hedging, the warrants were accounted for as equity instruments and their fair value was determined to be approximately $390,000. The relative fair value of the warrants is considered a discount against the note and was recorded as a reduction of the note payable. The note discount was being amortized to interest expense using the effective interest method with an annual rate of 18.7% over a period of 48 months, however, the full amount of the remaining note discount was recognized in the three months ended March 31, 2014, which was the accounting period following the completion of the transfer of payment rights to the lenders as described below. | |
While the term loan is non-recourse to the assets of Aradigm Corporation, the term loan agreement contained a minimum royalty covenant. If the minimum royalty covenant was breached and the subsidiary did not cure the breach through a cash contribution to pay down the accrued principal and interest, then the lenders had the right to declare the agreement in default and obtain the right to all future royalties and payments due to Aradigm under the Zogenix asset purchase agreement. In 2012, the minimum royalty covenant was breached and the Company made cash payments of approximately $167,000 to the lenders for accrued interest in order to cure the breach. In the twelve months ended December 31, 2013, the covenant was again breached and the cumulative cash shortfall the Company would need to contribute to keep the agreement from default stood at $525,000. In the first quarter of 2014, the Company elected not to make this or any future contributions. | |
On March 4, 2014, the Company and the other parties executed an Assignment Agreement that transferred the rights to the lenders, effective February 28, 2014, for all future royalty payments from Zogenix under the APA in full and complete satisfaction of the Company’s obligations under the loan agreement and the other agreements entered into in connection with the royalty financing. Under the Assignment Agreement, the parties agreed that the value of the Assigned Interest is $5.8 million. Zogenix consented to the Assignment. The Company valued the assignment of the royalty rights at $5.8 million in the Condensed Consolidated Statement of Operations and Comprehensive Income (Loss) in accordance with the Assignment Agreement which was recorded as a gain on fair value of assigned royalty rights in the quarter ended March 31, 2014. The balance of the note payable and accrued interest extinguished in the transaction offset by deferred loan costs and unamortized debt discount as of the assignment date less the fair value of the royalty rights resulted in a gain from debt extinguishment of $3.0 million which was recognized in the quarter ended March 31, 2014 in the Condensed Consolidated Statement of Operations and Comprehensive Income (Loss). All debts and obligations of Aradigm and its subsidiary are considered to be paid and satisfied in full. |
StockBased_Compensation_and_St
Stock-Based Compensation and Stock Options and Awards | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ||||||||||||||||
Stock-Based Compensation and Stock Options and Awards | ' | ||||||||||||||||
8. Stock-Based Compensation and Stock Options and Awards | |||||||||||||||||
The following table shows the stock-based compensation expense included in the accompanying Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) for the three and six months ended June 30, 2014 and 2013 (in thousands): | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Costs and expenses: | |||||||||||||||||
Research and development | $ | 47 | $ | 33 | $ | 104 | $ | 57 | |||||||||
General and administrative | 98 | 76 | 234 | 147 | |||||||||||||
Total stock-based compensation expense | $ | 145 | $ | 109 | $ | 338 | $ | 204 | |||||||||
There was no capitalized stock-based employee compensation cost for the three and six months ended June 30, 2014 and 2013. Since the Company did not record a tax provision during the quarters ended June 30, 2014 and 2013, there was no recognized tax benefit associated with stock-based compensation expense. | |||||||||||||||||
For restricted stock awards, the Company recognizes compensation expense over the vesting period for the fair value of the stock award on the measurement date. The total fair value of restricted stock awards that vested during the six months ended June 30, 2014 was $229,000. The Company retained purchase rights with respect to 5,300 shares of unvested restricted stock awards issued pursuant to stock purchase agreements at no cost per share as of June 30, 2014. | |||||||||||||||||
Stock Option Plans: 1996 Equity Incentive Plan, 2005 Equity Incentive Plan and 1996 Non-Employee Directors’ Plan | |||||||||||||||||
The 1996 Equity Incentive Plan (the “1996 Plan”) and the 2005 Equity Incentive Plan (the “2005 Plan”), which amended, restated and retitled the 1996 Plan, were adopted to provide a means by which selected officers, directors, scientific advisory board members and employees of and consultants to the Company and its affiliates could be given an opportunity to acquire an equity interest in the Company. All employees, directors, officers, scientific advisory board members and consultants of the Company are eligible to participate in the 2005 Plan. During 2000, the Board of Directors approved the termination of the 1996 Non-Employee Directors’ Stock Option Plan (the “Directors’ Plan”). This termination had no effect on options already outstanding under the Directors’ Plan. | |||||||||||||||||
Stock Option Activity | |||||||||||||||||
The following is a summary of activity under the 1996 Plan, the 2005 Plan and the Directors’ Plan for the six months ended June 30, 2014: | |||||||||||||||||
Shares Available for | |||||||||||||||||
Future Grant | |||||||||||||||||
Balance at January 1, 2014 | 1,021,745 | ||||||||||||||||
Options granted | (288,496 | ) | |||||||||||||||
Options cancelled | 12,274 | ||||||||||||||||
Restricted share awards granted | (11,250 | ) | |||||||||||||||
Balance at June 30, 2014 | 734,273 | ||||||||||||||||
Options Outstanding | |||||||||||||||||
Number of | Weighted | Weighted | Aggregate | ||||||||||||||
Shares | Average | Remaining | Intrinsic | ||||||||||||||
Exercise | Contractual | Value | |||||||||||||||
Price | Term | ||||||||||||||||
Outstanding at January 1, 2014 | 194,147 | $ | 28.46 | ||||||||||||||
Options granted | 288,496 | $ | 9.54 | ||||||||||||||
Options exercised | (175 | ) | $ | 7.2 | |||||||||||||
Options cancelled | (12,274 | ) | $ | 43.35 | |||||||||||||
Outstanding at June 30, 2014 | 470,194 | $ | 16.47 | 7.92 | $ | 233,059 | |||||||||||
Exercisable at June 30, 2014 | 176,496 | $ | 28.21 | 5.07 | $ | 205,419 | |||||||||||
During the six months ended June 30, 2014, 175 stock options were exercised. The total amount of unrecognized compensation cost related to non-vested stock options and stock purchases, net of forfeitures, was $788,000 as of June 30, 2014. This amount will be recognized over a weighted average period of 3.21 years. | |||||||||||||||||
A summary of the Company’s unvested restricted stock and performance bonus stock award activities as of June 30, 2014 is presented below representing the maximum number of shares that could be earned or vested under the 2005 Plan: | |||||||||||||||||
Number | Weighted Average | ||||||||||||||||
of | Grant Date Fair | ||||||||||||||||
Shares | Value | ||||||||||||||||
Balance at December 31, 2013 | 19,217 | $ | 7.33 | ||||||||||||||
Restricted shares granted | 11,250 | 9.6 | |||||||||||||||
Restricted share awards vested | (25,167 | ) | 7.85 | ||||||||||||||
Balance at June 30, 2014 | 5,300 | $ | 9.68 | ||||||||||||||
As of June 30, 2014, there were no unrecognized compensation costs, net of forfeitures, related to non-vested stock award. |
Net_Income_Loss_Per_Common_Sha
Net Income (Loss) Per Common Share | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Net Income (Loss) Per Common Share | ' | ||||||||||||||||
9. Net Income (Loss) Per Common Share | |||||||||||||||||
The following data was used in computing net income/(loss) per share and the effect on the weighted-average number of shares of potentially dilutive common stock. | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30 | June 30 | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
(In thousands, except per share amounts) | |||||||||||||||||
Numerator: | |||||||||||||||||
Net income/(loss) | $ | (1,358 | ) | $ | (2,710 | ) | $ | 6,397 | $ | (6,035 | ) | ||||||
Denominator: | |||||||||||||||||
Weighted average number of common shares used in basic net income/(loss) per share | 14,697 | 6,260 | 14,683 | 6,255 | |||||||||||||
Effect of dilutive securities (using treasury stock method): | |||||||||||||||||
Common stock options and restricted stock awards and units | — | — | 34 | — | |||||||||||||
Weighted average number of common shares and dilutive potential common shares used in diluted net income/(loss) per share | 14,697 | 6,260 | 14,717 | 6,255 | |||||||||||||
Basic net income/(loss) per share | $ | (0.09 | ) | $ | (0.43 | ) | $ | 0.44 | $ | (0.96 | ) | ||||||
Diluted net income/(loss) per share | $ | (0.09 | ) | $ | (0.43 | ) | $ | 0.43 | $ | (0.96 | ) | ||||||
For the six months ended June 30, 2014, the Company excluded 307,000 shares of outstanding stock options and 71,000 shares of warrants from the calculation of diluted net income/(loss) per share. These shares were excluded because the exercise prices of these stock options were greater than or equal to the average market price of the common shares during the period and the inclusion of these shares would be anti-dilutive. | |||||||||||||||||
For the three months ended June 30, 2014 and the three and six months ended June 30, 2013, dilutive securities were not included in the computation of net loss per share as the effect would be anti-dilutive due to the Company’s net loss position. At June 30, 2014 and 2013, the Company had the following dilutive securities outstanding (in thousands): | |||||||||||||||||
Six months ended | |||||||||||||||||
June 30, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Outstanding stock options | 470 | 184 | |||||||||||||||
Unvested restricted stock | 5 | 48 | |||||||||||||||
Unvested restricted stock units | 10 | 10 |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Use of Estimates | ' |
Use of Estimates | |
The preparation of financial statements, in conformity with GAAP, requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. These estimates include useful lives for property and equipment and related depreciation calculations, assumptions for valuing options and warrants, and income taxes. Actual results could differ from these estimates. | |
Cash and Cash Equivalents | ' |
Cash and Cash Equivalents | |
All highly liquid investments with maturities of three months or less at the time of purchase are classified as cash equivalents. | |
Inventories | ' |
Inventories | |
Inventories are valued at the lower of cost or market. Cost is determined using the first-in, first-out method for all inventories, which are valued using a weighted average cost method. Inventory includes the cost of raw materials. The Company’s policy is to write down inventory that has become obsolete, inventory that has a cost basis in excess of its expected net realizable value and inventory in excess of expected requirements. Inventories are included in prepaid and other current assets in the condensed consolidated balance sheet. | |
Investments | ' |
Investments | |
Management determines the appropriate classification of the Company’s marketable securities, which consist solely of debt securities, at the time of purchase. All investments are classified as available-for-sale, carried at estimated fair value and reported in short-term investments. Unrealized gains and losses on available-for-sale securities are excluded from earnings and losses. Fair values of investments are based on quoted market prices where available. Investment income is recognized when earned and includes interest, dividends, amortization of purchase premiums and discounts, and realized gains and losses on sales of securities. The cost of securities sold is based on the specific identification method. The Company regularly reviews all of its investments for other-than-temporary declines in fair value. When the Company determines that the decline in fair value of an investment below the Company’s accounting basis is other-than-temporary, the Company reduces the carrying value of the securities held and records a loss equal to the amount of any such decline. No such reductions have been required during any of the periods presented. | |
Property and Equipment | ' |
Property and Equipment | |
The Company records property and equipment at cost and calculates depreciation using the straight-line method over the estimated useful lives of the respective assets. Machinery and equipment includes external costs incurred for validation of the equipment. The Company does not capitalize internal validation expense. Computer equipment and software includes capitalized computer software. All of the Company’s capitalized software is purchased; the Company has no internally developed computer software. Leasehold improvements are depreciated over the shorter of the term of the lease or life of the improvement. | |
Impairment of Long-Lived Assets | ' |
Impairment of Long-Lived Assets | |
The Company reviews for impairment whenever events or changes in circumstances indicate that the carrying amount of property and equipment may not be recoverable. Determination of recoverability is based on an estimate of undiscounted future cash flows resulting from the use of the asset and its eventual disposition. In the event that such cash flows are not expected to be sufficient to recover the carrying amount of the assets, the assets are written down to their estimated fair values and the loss is recognized in the consolidated statements of operations. | |
Accounting for Costs Associated with Exit or Disposal Activities | ' |
Accounting for Costs Associated with Exit or Disposal Activities | |
The Company recognizes a liability for the cost associated with an exit or disposal activity that is measured initially at its fair value in the period in which the liability is incurred. The Company accounted for the partial sublease of its headquarters building as an exit activity and recorded the sublease loss in its statement of operations and comprehensive income (loss) (see Note 5). | |
Costs to terminate an operating lease or other contracts are (a) costs to terminate the contract before the end of its term or (b) costs that will continue to be incurred under the contract for its remaining term without economic benefit to the entity. In periods subsequent to initial measurement, changes to the liability are measured using the credit-adjusted risk-free rate that was used to measure the liability initially. | |
Revenue Recognition | ' |
Revenue Recognition | |
Revenues consist of contract revenue, grant revenue and royalty revenue. Contract revenue is primarily generated through agreements with strategic partners for the development and commercialization of our product candidates. The terms of the agreement typically include non-refundable upfront fees, funding of research and development activities, payments based upon achievement of milestones and royalties on net product sales. The Company recognizes revenue under the provisions of the Securities and Exchange Commission issued Staff Accounting Bulletin 104, Topic 13, Revenue Recognition Revised and Updated (“SAB Topic 13”) and ASC 605-25 Revenue Recognition-Multiple Elements. Revenue for arrangements not having multiple deliverables, as outlined in ASC 605-25, is recognized once costs are incurred and collectability is reasonably assured. | |
Revenue is recognized when there is persuasive evidence that an arrangement exists, delivery has occurred, the price is fixed and determinable and collection is reasonably assured. Multiple-deliverable arrangements, such as license and development agreements, are analyzed to determine whether the deliverables can be separated or whether they must be accounted for as a single unit of accounting. When deliverables are separable, consideration received is allocated to the separate units of accounting based on the relative selling price method and the appropriate revenue recognition principles are applied to each unit. When the Company determines that an arrangement should be accounted for as a single unit of accounting, it must determine the period over which the performance obligations will be performed and revenue will be recognized. | |
The Company estimates its performance period used for revenue recognition based on the specific terms of each agreement, and adjusts the performance periods, if appropriate, based on the applicable facts and circumstances. Significant management judgment may be required to determine the level of effort required under an arrangement and the period over which the Company is expected to complete its performance obligations under the arrangement. If the Company cannot reasonably estimate when its performance obligations either are completed or become inconsequential, then revenue recognition is deferred until the Company can reasonably make such estimates. Revenue is then recognized over the remaining estimated period of performance using the cumulative catch-up method. | |
The Company prospectively adopted the provisions of Accounting Standards Update No. 2009-13, Revenue Recognition (Topic 605); Multiple-Deliverable Revenue Arrangements (“ASU 2009-13”) for new and materially modified arrangements originating on or after January 1, 2010. ASU 2009-13 provides updated guidance on how the deliverables in an arrangement should be separated, and how consideration should be allocated, and it changes the level of evidence of standalone selling price required to separate deliverables by allowing a vendor to make its best estimate of the standalone selling price of deliverables when vendor-specific objective evidence or third-party evidence of selling price is not available. | |
The Company allocates non-contingent consideration to each stand-alone deliverable based upon the relative selling price of each element. When applying the relative selling price method, the Company determines the selling price for each deliverable using vendor-specific objective evidence, or VSOE, of selling price, if it exists, or third-party evidence, or TPE, of selling price, if it exists. If neither VSOE nor TPE of selling price exist for a deliverable, the Company uses best estimated selling price, or BESP, for that deliverable. | |
Assuming the elements meet the revenue recognition guidelines, the revenue recognition methodology prescribed for each unit of accounting is summarized below: | |
Upfront Fees — The Company defers recognition of non-refundable upfront fees if there are continuing performance obligations without which the technology licensed has no utility to the licensee. If the Company has continuing performance obligations through research and development services that are required because know-how and expertise related to the technology is proprietary to the Company, or can only be performed by the Company, then such up-front fees are deferred and recognized over the estimated period of the performance obligation. The Company bases the estimate of the period of performance on factors in the contract. Actual time frames could vary and could result in material changes to the results of operations. When the collaboration partners request the Company to continue performing the research and development services in collaboration beyond the initial period of performance the remaining unamortized deferred revenue and any new continuation or license fees are recognized over the extended period of performance. | |
Funded Research and Development — Revenue from research and development services is recognized during the period in which the services are performed and is based upon the number of full-time-equivalent personnel working on the specific project at the agreed-upon rate. The full-time equivalent amount can vary each year if the contracts allow for a percentage increase determined by relevant salary surveys, if applicable. Reimbursements from collaborative partners for agreed upon direct costs including direct materials and outsourced, or subcontracted, pre-clinical and clinical studies and contract manufacturing are classified as revenue and recognized in the period the reimbursable expenses are incurred. Payments received in advance are recorded as deferred revenue until the research and development services are performed or costs are incurred. | |
Milestones — Substantive milestone payments are considered to be performance bonuses that are recognized upon achievement of the milestone only if all of the following conditions are met: the milestone payments are non-refundable; achievement of the milestone involves a degree of risk and was not reasonably assured at the inception of the arrangement; substantive effort is involved in achieving the milestone; the amount of the milestone is reasonable in relation to the effort expended or the risk associated with achievement of the milestone; and a reasonable amount of time passes between the up-front license payment and the first milestone payment as well as between each subsequent milestone payment. If any of these conditions are not met, the milestone payments are deferred and recognized as revenue over the term of the arrangement as the Company completes its performance obligations. | |
Royalties — The Company recognizes royalty revenues from licensed products upon the sale of the related products. | |
Research and Development | ' |
Research and Development | |
Research and development expenses consist of costs incurred for company-sponsored, collaborative and contracted research and development activities. These costs include direct and research-related overhead expenses. The Company expenses research and development costs as such costs are incurred. | |
Stock-Based Compensation | ' |
Stock-Based Compensation | |
The Company accounts for share-based payment arrangements in accordance with ASC 718, Compensation-Stock Compensation and ASC 505-50, Equity-Equity Based Payments to Non-Employees which requires the recognition of compensation expense, using a fair-value based method, for all costs related to share-based payments including stock options and restricted stock awards and stock issued under the employee stock purchase plan. These standards require companies to estimate the fair value of share-based payment awards on the date of the grant using an option-pricing model. See Note 8 for further discussion of the Company’s stock-based compensation plans. | |
Income Taxes | ' |
Income Taxes | |
The Company makes certain estimates and judgments in determining income tax expense for financial statement purposes. These estimates and judgments occur in the calculation of certain tax assets and liabilities, which arise from differences in the timing of recognition of revenue and expense for tax and financial statement purposes. As part of the process of preparing the financial statements, the Company is required to estimate income taxes in each of the jurisdictions in which it operates. This process involves the Company estimating its current tax exposure under the most recent tax laws and assessing temporary differences resulting from differing treatment of items for tax and accounting purposes. These differences result in deferred tax assets and liabilities, which are included in the Company’s consolidated balance sheets. The Company estimated its current tax exposure to be zero as it expects to be able to utilize its NOLs to offset the income recognized in the quarter and year to date. The Company has updated its Section 382 analysis through December 31, 2013 and noted no additional changes since the last change in 2010. | |
The Company assesses the likelihood that it will be able to recover its deferred tax assets. The Company considers all available evidence, both positive and negative, including the historical levels of income and losses, expectations and risks associated with estimates of future taxable income and ongoing prudent and feasible tax planning strategies in assessing the need for a valuation allowance. If the Company does not consider it more likely than not that it will recover its deferred tax assets, the Company records a valuation allowance against the deferred tax assets that it estimates will not ultimately be recoverable. At June 30, 2014 and December 31, 2013, the Company believed that the amount of its deferred income taxes would not be ultimately recovered. Accordingly, the Company recorded a full valuation allowance for deferred tax assets. However, should there be a change in the Company’s ability to recover its deferred tax assets, the Company would recognize a benefit to its tax provision in the period in which it determines that it is more likely than not that it will recover its deferred tax assets. | |
During the six months ended June 30, 2014, the Company had pre-tax income of $6.4 million. The provision for Federal and state income taxes related to such pre-tax income has been offset by the utilization of available net operating loss carryovers. Accordingly, the Company reduced its valuation allowance and recognized a tax benefit in an amount equal to the provision for tax on such pre-tax income. | |
Net Income/(Loss) Per Common Share | ' |
Net Income/(Loss) Per Common Share | |
Basic net income/(loss) per common share is computed using the weighted-average number of shares of common stock outstanding during the period less the weighted-average number of restricted shares of common stock subject to repurchase. Diluted net income/(loss) per common share is based on the weighted average number of common and common equivalent shares, such as stock options and unvested restricted stock shares outstanding during the period. Potentially dilutive securities were included for the six months ended June 30, 2014 but were excluded in the other periods presented because inclusion of such shares would have been anti-dilutive. | |
Recently Issued Accounting Pronouncements | ' |
Recently Issued Accounting Pronouncements | |
In April 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity (“ASU 2014-08”) which raises the threshold for a disposal to qualify as a discontinued operation and requires new disclosures of both discontinued operations and certain other disposals that do not meet the definition of a discontinued operation. ASU 2014-08 is effective for annual periods beginning on or after December 15, 2014. Early adoption is permitted but only for disposals that have not been reported in financial statements previously issued. The adoption of this guidance is not expected to have an impact on the Company’s consolidated financial statements. | |
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”). The standard provides companies with a single model for use in accounting for revenue arising from contracts with customers and supersedes current revenue recognition guidance, including industry-specific revenue guidance. The core principle of the model is to recognize revenue when control of the goods or services transfers to the customer, as opposed to recognizing revenue when the risks and rewards transfer to the customer under the existing revenue guidance. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2016. Early adoption is not permitted. The guidance permits companies to either apply the requirements retrospectively to all prior periods presented, or apply the requirements in the year of adoption, through a cumulative adjustment. The Company is in the process of evaluating the impact of adoption on its consolidated financial statements. | |
In June 2014, the FASB issued ASU No. 2014-12, Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. (“ASU 2014-12”). The standard provides guidance that a performance target that affects vesting of a share-based payment and that could be achieved after the requisite service condition is a performance condition. As a result, the target is not reflected in the estimation of the award’s grant date fair value. Compensation cost for such award would be recognized over the required service period, if it is probably that the performance condition will be achieved. ASU 2014-12 is effective for annual reporting periods beginning after December 15, 2015. Early adoption is permitted. The guidance should be applied on a prospective basis to awards that are granted or modified on or after the effective date. Companies also have the option to apply the amendments on a modified retrospective basis for performance targets outstanding on or after the beginning of the first annual period presented as of the adoption date. The Company is in the process of evaluating the impact of adoption on its consolidated financial statements. |
Sublease_Agreement_and_Lease_E1
Sublease Agreement and Lease Exit Liability (Tables) | 6 Months Ended | ||||
Jun. 30, 2014 | |||||
Restructuring And Related Activities [Abstract] | ' | ||||
Schedule of Lease Exit Liability Activity | ' | ||||
The lease exit liability activity for the six months ended June 30, 2014 is as follows (in thousands): | |||||
Six Months Ended | |||||
June 30, 2014 | |||||
Balance at January 1, 2014 | $ | 465 | |||
Accretion expense | 11 | ||||
Lease payments | (86 | ) | |||
Balance at June 30, 2014 | $ | 390 |
StockBased_Compensation_and_St1
Stock-Based Compensation and Stock Options and Awards (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ||||||||||||||||
Schedule of Stock-Based Compensation Expense | ' | ||||||||||||||||
The following table shows the stock-based compensation expense included in the accompanying Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) for the three and six months ended June 30, 2014 and 2013 (in thousands): | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Costs and expenses: | |||||||||||||||||
Research and development | $ | 47 | $ | 33 | $ | 104 | $ | 57 | |||||||||
General and administrative | 98 | 76 | 234 | 147 | |||||||||||||
Total stock-based compensation expense | $ | 145 | $ | 109 | $ | 338 | $ | 204 | |||||||||
Schedule of Activity Under Stock Option Plan | ' | ||||||||||||||||
The following is a summary of activity under the 1996 Plan, the 2005 Plan and the Directors’ Plan for the six months ended June 30, 2014: | |||||||||||||||||
Shares Available for | |||||||||||||||||
Future Grant | |||||||||||||||||
Balance at January 1, 2014 | 1,021,745 | ||||||||||||||||
Options granted | (288,496 | ) | |||||||||||||||
Options cancelled | 12,274 | ||||||||||||||||
Restricted share awards granted | (11,250 | ) | |||||||||||||||
Balance at June 30, 2014 | 734,273 | ||||||||||||||||
Options Outstanding | |||||||||||||||||
Number of | Weighted | Weighted | Aggregate | ||||||||||||||
Shares | Average | Remaining | Intrinsic | ||||||||||||||
Exercise | Contractual | Value | |||||||||||||||
Price | Term | ||||||||||||||||
Outstanding at January 1, 2014 | 194,147 | $ | 28.46 | ||||||||||||||
Options granted | 288,496 | $ | 9.54 | ||||||||||||||
Options exercised | (175 | ) | $ | 7.2 | |||||||||||||
Options cancelled | (12,274 | ) | $ | 43.35 | |||||||||||||
Outstanding at June 30, 2014 | 470,194 | $ | 16.47 | 7.92 | $ | 233,059 | |||||||||||
Exercisable at June 30, 2014 | 176,496 | $ | 28.21 | 5.07 | $ | 205,419 | |||||||||||
Schedule of Unvested Restricted Stock and Performance Bonus Stock Awards | ' | ||||||||||||||||
A summary of the Company’s unvested restricted stock and performance bonus stock award activities as of June 30, 2014 is presented below representing the maximum number of shares that could be earned or vested under the 2005 Plan: | |||||||||||||||||
Number | Weighted Average | ||||||||||||||||
of | Grant Date Fair | ||||||||||||||||
Shares | Value | ||||||||||||||||
Balance at December 31, 2013 | 19,217 | $ | 7.33 | ||||||||||||||
Restricted shares granted | 11,250 | 9.6 | |||||||||||||||
Restricted share awards vested | (25,167 | ) | 7.85 | ||||||||||||||
Balance at June 30, 2014 | 5,300 | $ | 9.68 | ||||||||||||||
Net_Income_Loss_Per_Common_Sha1
Net Income (Loss) Per Common Share (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Schedule of Computing Net Income/(Loss) Per Share and Effect on Weighted-Average Number of Shares of Potentially Dilutive Common Stock | ' | ||||||||||||||||
The following data was used in computing net income/(loss) per share and the effect on the weighted-average number of shares of potentially dilutive common stock. | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30 | June 30 | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
(In thousands, except per share amounts) | |||||||||||||||||
Numerator: | |||||||||||||||||
Net income/(loss) | $ | (1,358 | ) | $ | (2,710 | ) | $ | 6,397 | $ | (6,035 | ) | ||||||
Denominator: | |||||||||||||||||
Weighted average number of common shares used in basic net income/(loss) per share | 14,697 | 6,260 | 14,683 | 6,255 | |||||||||||||
Effect of dilutive securities (using treasury stock method): | |||||||||||||||||
Common stock options and restricted stock awards and units | — | — | 34 | — | |||||||||||||
Weighted average number of common shares and dilutive potential common shares used in diluted net income/(loss) per share | 14,697 | 6,260 | 14,717 | 6,255 | |||||||||||||
Basic net income/(loss) per share | $ | (0.09 | ) | $ | (0.43 | ) | $ | 0.44 | $ | (0.96 | ) | ||||||
Diluted net income/(loss) per share | $ | (0.09 | ) | $ | (0.43 | ) | $ | 0.43 | $ | (0.96 | ) | ||||||
Schedule of Dilutive Securities Outstanding not Included in Computation of Net Loss Per Share | ' | ||||||||||||||||
For the three months ended June 30, 2014 and the three and six months ended June 30, 2013, dilutive securities were not included in the computation of net loss per share as the effect would be anti-dilutive due to the Company’s net loss position. At June 30, 2014 and 2013, the Company had the following dilutive securities outstanding (in thousands): | |||||||||||||||||
Six months ended | |||||||||||||||||
June 30, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Outstanding stock options | 470 | 184 | |||||||||||||||
Unvested restricted stock | 5 | 48 | |||||||||||||||
Unvested restricted stock units | 10 | 10 |
Organization_Basis_of_Presenta1
Organization, Basis of Presentation and Liquidity - Additional Information (Detail) (USD $) | 6 Months Ended | 0 Months Ended | 6 Months Ended | |||||||
Jun. 30, 2014 | 23-May-14 | Dec. 31, 2013 | Jul. 15, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | 23-May-14 | Jun. 30, 2014 | 23-May-14 | Jul. 15, 2013 | |
Segment | Common stock [Member] | Common stock [Member] | Before Stock Split [Member] | Before Stock Split [Member] | ||||||
Summary Of Organization And Operations [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of operating segment | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accumulated deficit | ($386,527,000) | ' | ($392,924,000) | ' | ' | ' | ' | ' | ' | ' |
Working capital | 45,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shareholders' equity | 40,487,000 | ' | 33,683,000 | ' | ' | ' | ' | ' | ' | ' |
Cash, cash equivalents and short-term investments | $50,290,000 | ' | $48,131,000 | ' | $1,693,000 | $7,414,000 | ' | ' | ' | ' |
Reverse split ratio | ' | ' | ' | ' | ' | ' | ' | '1-for-40 | ' | ' |
Reverse split conversion ratio | ' | ' | ' | ' | ' | ' | 0.025 | ' | ' | ' |
Common stock, shares authorized | 25,045,765 | 25,045,765 | 25,045,765 | 17,670,765 | ' | ' | ' | ' | 1,001,830,627 | 706,830,627 |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 6 Months Ended |
Jun. 30, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Estimated current tax exposure | $0 |
Pre-tax income | $6,400,000 |
Sublease_Agreement_and_Lease_E2
Sublease Agreement and Lease Exit Liability - Additional Information (Detail) (USD $) | 6 Months Ended | 12 Months Ended | |||||
Jun. 30, 2014 | Dec. 31, 2007 | Dec. 31, 2013 | Jul. 18, 2007 | Jan. 31, 2012 | Apr. 30, 2009 | Jul. 18, 2007 | |
sqft | Mendel [Member] | Mendel [Member] | Mendel [Member] | ||||
sqft | sqft | sqft | |||||
Lease Rental Expenses [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Lease agreement initiation date | 18-Jul-07 | ' | ' | ' | ' | ' | ' |
Sublease Agreement, number of square feet | ' | ' | ' | 72,000 | ' | ' | 48,000 |
Amendment to sublease agreement, number of square feet | ' | ' | ' | ' | 3,300 | 1,550 | ' |
Impairment expense related to the sublease | ' | $2,100,000 | ' | ' | ' | ' | ' |
Lease exit current liability | 180,000 | ' | 168,000 | ' | ' | ' | ' |
Lease exit non-current liability | 210,000 | ' | 297,000 | ' | ' | ' | ' |
Lease exit liability | $390,000 | ' | $465,000 | ' | ' | ' | ' |
Sublease_Agreement_and_Lease_E3
Sublease Agreement and Lease Exit Liability - Schedule of Lease Exit Liability Activity (Detail) (USD $) | 6 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 |
Leases [Abstract] | ' |
Balance at January 1, 2014 | $465 |
Accretion expense | 11 |
Lease payments | -86 |
Balance at June 30, 2014 | $390 |
Collaboration_Agreement_Grifol
Collaboration Agreement - Grifols License and Collaboration Agreement - Additional Information (Detail) (USD $) | 6 Months Ended | 0 Months Ended | 6 Months Ended | 1 Months Ended | 6 Months Ended | 1 Months Ended | |||||||||||||
Jun. 30, 2014 | Jun. 30, 2013 | 23-May-14 | Dec. 31, 2013 | Aug. 31, 2013 | Jul. 15, 2013 | 20-May-13 | 23-May-14 | Jul. 15, 2013 | 20-May-13 | 23-May-14 | Jun. 30, 2014 | Aug. 31, 2013 | Jun. 30, 2014 | 20-May-13 | Aug. 31, 2013 | 20-May-13 | 20-May-13 | 20-May-13 | |
Before Stock Split [Member] | Before Stock Split [Member] | Before Stock Split [Member] | Common stock [Member] | Common stock [Member] | Grifols [Member] | Grifols [Member] | Grifols [Member] | Grifols [Member] | Grifols [Member] | Investors [Member] | Investors [Member] | ||||||||
Before Stock Split [Member] | Before Stock Split [Member] | Before Stock Split [Member] | |||||||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Purchase Agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20-May-13 | ' | ' | ' | ' | ' |
Common stock, shares issued and sell | 14,708,309 | ' | ' | 14,681,274 | ' | ' | 333,968,104 | ' | ' | 8,349,201 | ' | ' | ' | ' | 209,774,558 | ' | 5,244,363 | 124,193,546 | 3,104,838 |
Reverse stock split ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1-for-40 | ' | ' | ' | ' | ' | ' | ' |
Reverse stock split conversion ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.025 | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, purchase price per share | ' | ' | ' | ' | ' | ' | $4.96 | ' | ' | $0.12 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sale of common stock | $427,014,000 | ' | ' | $426,607,000 | $41,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, shares authorized | 25,045,765 | ' | 25,045,765 | 25,045,765 | ' | 17,670,765 | ' | 1,001,830,627 | 706,830,627 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shareholders holding percentage | ' | ' | ' | ' | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payment received from investors and related party | 69,000 | 39,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 26,000,000 | ' | ' | ' | ' | ' | ' |
Closing price of common stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $8 | ' | ' | $0.20 | ' | ' | ' |
Common stock discount per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $3.04 | ' | ' | $0.08 | ' | ' | ' |
Common stock discount on share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $15,900,000 | ' | ' | ' | ' | ' | ' |
Collaboration_Agreement_Licens
Collaboration Agreement - License Agreement - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | |
License Agreement with Grifols [Member] | License Agreement with Grifols [Member] | License Agreement with Grifols [Member] | License Agreement with Grifols [Member] | License Agreement with Grifols [Member] | License Agreement with Grifols [Member] | ||||
Minimum [Member] | Maximum [Member] | ||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Future reimbursable research and development expenses by partner | ' | ' | ' | ' | ' | $65,000,000 | ' | ' | ' |
Contract revenue - related party | 12,173,000 | 18,415,000 | ' | ' | ' | ' | ' | ' | ' |
Payments for development milestones by partner | ' | ' | ' | ' | ' | 25,000,000 | ' | ' | ' |
Royalty payments on net sales rate | ' | ' | ' | ' | ' | ' | ' | 12.50% | 20.00% |
Patent coverage or orphan drug designation period | ' | ' | ' | ' | ' | '10 years | ' | ' | ' |
Percentage of reduction on royalty payment | ' | ' | ' | ' | ' | 50.00% | ' | ' | ' |
Deferred revenue | 438,000 | 438,000 | 4,379,000 | ' | ' | ' | ' | ' | ' |
Long-term deferred revenue | 7,816,000 | 7,816,000 | ' | ' | ' | ' | ' | ' | ' |
Revenue recognized, milestone payment | ' | 5,000,000 | ' | ' | ' | ' | ' | ' | ' |
Fully burdened development expenses | ' | ' | ' | $12,200,000 | $0 | $18,400,000 | $0 | ' | ' |
Collaboration_Agreement_Govern
Collaboration Agreement - Governance Agreement - Additional Information (Detail) (Governance Agreement [Member]) | 6 Months Ended |
Jun. 30, 2014 | |
Person | |
Governance Agreement [Member] | ' |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ' |
Number of independent directors | 3 |
Number of directors designated by partner | 2 |
Number of chief executive officer | 1 |
Period to be consider after the first commercial sale for restriction to acquire and sale of stock | '12 months |
Minimum target percentage of beneficial ownership to be maintain under governance agreement | 35.00% |
Royalty_Agreement_Note_Payable1
Royalty Agreement, Note Payable and Accrued Interest - Royalty Financing - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | 0 Months Ended | 6 Months Ended | ||
Mar. 31, 2014 | Jun. 30, 2011 | Jun. 30, 2014 | Dec. 31, 2012 | Dec. 31, 2013 | 23-May-14 | Jun. 30, 2014 | |
Common stock [Member] | Common stock [Member] | ||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Royalty financing agreement with a syndicate of lenders | ' | $8,500,000 | ' | ' | ' | ' | ' |
Royalty financing agreement fees and expenses | ' | 473,000 | ' | ' | ' | ' | ' |
Royalty financing agreement, Interest Reserve Account | ' | 250,000 | ' | ' | ' | ' | ' |
Royalties payable rate | ' | 100.00% | ' | ' | ' | ' | ' |
Capitalization of fees expenses | ' | 473,000 | ' | ' | ' | ' | ' |
Lender warrants to purchase common stock | ' | 71,022 | ' | ' | ' | ' | ' |
Lender warrants to purchase common stock, before stock split | ' | 2,840,909 | ' | ' | ' | ' | ' |
Class of warrant or right, exercise price of warrants or rights | ' | $8.80 | ' | ' | ' | ' | ' |
Class of warrant or right, exercise price of warrants or rights, before stock split | ' | $0.22 | ' | ' | ' | ' | ' |
Common stock premium rate | ' | 20.00% | ' | ' | ' | ' | ' |
Reverse stock split ratio | ' | ' | ' | ' | ' | ' | '1-for-40 |
Reverse stock split conversion ratio | ' | ' | ' | ' | ' | 0.025 | ' |
Number of trading days for the average closing price | ' | '10 days | ' | ' | ' | ' | ' |
Warrants expiration date | ' | 31-Dec-16 | ' | ' | ' | ' | ' |
Warrants account for as equity instrument, fair value | ' | 390,000 | ' | ' | ' | ' | ' |
Discount interest rate | ' | 18.70% | ' | ' | ' | ' | ' |
Capitalized expenses amortization period | ' | '48 months | ' | ' | ' | ' | ' |
Cash payments to lenders for accrued interest | ' | ' | ' | 167,000 | ' | ' | ' |
Cumulative cash shortfall agreement from default stands | ' | ' | ' | ' | 525,000 | ' | ' |
Transferred rights, effective date | ' | ' | 28-Feb-14 | ' | ' | ' | ' |
Gain from fair value of assigned interests | 5,800,000 | ' | 5,823,000 | ' | ' | ' | ' |
Gain from extinguishment of debt | $3,000,000 | ' | $3,041,000 | ' | ' | ' | ' |
StockBased_Compensation_and_St2
Stock-Based Compensation and Stock Options and Awards - Schedule of Stock-Based Compensation Expense (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Costs and expenses: | ' | ' | ' | ' |
Total stock-based compensation expense | $145 | $109 | $338 | $204 |
Research and development [Member] | ' | ' | ' | ' |
Costs and expenses: | ' | ' | ' | ' |
Total stock-based compensation expense | 47 | 33 | 104 | 57 |
General and administrative [Member] | ' | ' | ' | ' |
Costs and expenses: | ' | ' | ' | ' |
Total stock-based compensation expense | $98 | $76 | $234 | $147 |
StockBased_Compensation_and_St3
Stock-Based Compensation and Stock Options and Awards - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | |
Unvested restricted stock [Member] | Stock options [Member] | Non-vested stock options and stock purchases [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' |
Capitalized stock-based employee compensation cost | $0 | $0 | ' | ' | ' |
Tax benefit associated with stock-based compensation expense | 0 | 0 | ' | ' | ' |
Total fair value of restricted stock awards vested | ' | ' | 229,000 | ' | ' |
Company retained purchase rights on unvested restricted stock awards, shares | ' | ' | 5,300 | ' | ' |
Stock options exercised during the period | ' | ' | ' | 175 | ' |
Unrecognized compensation cost related to non-vested stock options and stock purchases | ' | ' | ' | ' | 788,000 |
Unrecognized compensation costs, weighted average period expected to be recognized | ' | ' | ' | ' | '3 years 2 months 16 days |
Total unrecognized compensation costs | $0 | ' | ' | ' | ' |
StockBased_Compensation_and_St4
Stock-Based Compensation and Stock Options and Awards - Schedule of Activity Under Stock Option Plan - Shares Available for Future Grant (Detail) (Stock options [Member]) | 6 Months Ended |
Jun. 30, 2014 | |
Stock options [Member] | ' |
Shares Available for Future Grant | ' |
Balance at January 1, 2014 | 1,021,745 |
Options granted | -288,496 |
Options cancelled | 12,274 |
Restricted stock awards granted | -11,250 |
Balance at June 30, 2014 | 734,273 |
StockBased_Compensation_and_St5
Stock-Based Compensation and Stock Options and Awards - Schedule of Activity Under Stock Option Plan - Options Outstanding (Detail) (Stock options [Member], USD $) | 6 Months Ended |
Jun. 30, 2014 | |
Stock options [Member] | ' |
Number of Shares | ' |
Outstanding at January 1, 2014 | 194,147 |
Options granted | 288,496 |
Options exercised | -175 |
Options cancelled | -12,274 |
Outstanding at June 30, 2014 | 470,194 |
Exercisable at June 30, 2014 | 176,496 |
Weighted Average Exercise Price | ' |
Outstanding at January 1, 2014 | $28.46 |
Options granted | $9.54 |
Options exercised | $7.20 |
Options cancelled | $43.35 |
Outstanding at June 30, 2014 | $16.47 |
Exercisable at June 30, 2014 | $28.21 |
Weighted Average Remaining Contractual Term | ' |
Outstanding at June 30, 2014 | '7 years 11 months 1 day |
Exercisable at June 30, 2014 | '5 years 26 days |
Aggregate Intrinsic Value | ' |
Outstanding at June 30, 2014 | $233,059 |
Exercisable at June 30, 2014 | $205,419 |
StockBased_Compensation_and_St6
Stock-Based Compensation and Stock Options and Awards - Schedule of Unvested Restricted Stock and Performance Bonus Stock Awards (Detail) (Unvested Restricted Stock and Performance Bonus Stock Awards [Member], USD $) | 6 Months Ended |
Jun. 30, 2014 | |
Unvested Restricted Stock and Performance Bonus Stock Awards [Member] | ' |
Number of Shares | ' |
Balance at December 31, 2013 | 19,217 |
Restricted shares granted | 11,250 |
Restricted share awards vested | -25,167 |
Balance at June 30, 2014 | 5,300 |
Weighted Average Grant Date Fair Value | ' |
Balance at December 31, 2013 | $7.33 |
Restricted shares granted | $9.60 |
Restricted share awards vested | $7.85 |
Balance at June 30, 2014 | $9.68 |
Net_Income_Loss_Per_Common_Sha2
Net Income (Loss) Per Common Share - Schedule of Computing Net Income/(Loss) Per Share and Effect on Weighted-Average Number of Shares of Potentially Dilutive Common Stock (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Numerator: | ' | ' | ' | ' |
Net income/(loss) | ($1,358) | ($2,710) | $6,397 | ($6,035) |
Denominator: | ' | ' | ' | ' |
Weighted average number of common shares used in basic net income/(loss) per share | 14,697 | 6,260 | 14,683 | 6,255 |
Effect of dilutive securities (using treasury stock method): | ' | ' | ' | ' |
Common stock options and restricted stock awards and units | ' | ' | 34 | ' |
Weighted average number of common shares and dilutive potential common shares used in diluted net income/(loss) per share | 14,697 | 6,260 | 14,717 | 6,255 |
Basic net income/(loss) per share | ($0.09) | ($0.43) | $0.44 | ($0.96) |
Diluted net income/(loss) per share | ($0.09) | ($0.43) | $0.43 | ($0.96) |
Net_Income_Loss_Per_Common_Sha3
Net Income (Loss) Per Common Share - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2014 | |
Stock Option [Member] | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' |
Shares excluded from calculation of diluted net income/ (loss) per share | 307,000 |
Warrants [Member] | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' |
Shares excluded from calculation of diluted net income/ (loss) per share | 71,000 |
Net_Income_Loss_Per_Common_Sha4
Net Income (Loss) Per Common Share - Schedule of Dilutive Securities Outstanding not Included in Computation of Net Loss Per Share (Detail) | 6 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Stock options [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Dilutive securities outstanding | 470,000 | 184,000 |
Unvested restricted stock [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Dilutive securities outstanding | 5,000 | 48,000 |
Unvested restricted stock units [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Dilutive securities outstanding | 10,000 | 10,000 |