Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2020 | Nov. 02, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | ATRS | |
Security Exchange Name | NASDAQ | |
Entity Registrant Name | ANTARES PHARMA, INC. | |
Entity Central Index Key | 0001016169 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Entity Common Stock, Shares Outstanding | 166,672,429 | |
Entity Shell Company | false | |
Entity Current Reporting Status | Yes | |
Entity File Number | 1-32302 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 41-1350192 | |
Entity Address, Address Line One | 100 Princeton South | |
Entity Address, Address Line Two | Suite 300 | |
Entity Address, City or Town | Ewing | |
Entity Address, State or Province | NJ | |
Entity Address, Postal Zip Code | 08628 | |
City Area Code | 609 | |
Local Phone Number | 359-3020 | |
Entity Interactive Data Current | Yes | |
Document Quarterly Report | true | |
Document Transition Report | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Current Assets: | ||
Cash and cash equivalents | $ 50,172 | $ 23,201 |
Short-term investments | 1,997 | 22,520 |
Accounts receivable | 42,507 | 35,074 |
Inventories | 19,809 | 16,000 |
Contract assets | 8,784 | 8,235 |
Prepaid expenses and other current assets | 1,851 | 3,416 |
Total current assets | 125,120 | 108,446 |
Property and equipment, net | 22,547 | 15,961 |
Operating lease right-of-use assets | 4,881 | 5,463 |
Other assets | 3,026 | 2,881 |
Total Assets | 155,574 | 132,751 |
Current Liabilities: | ||
Accounts payable | 18,016 | 12,905 |
Accrued expenses and other liabilities | 22,846 | 17,772 |
Long-term debt, current portion | 6,415 | |
Deferred revenue | 3,277 | 1,738 |
Total current liabilities | 50,554 | 32,415 |
Long-term debt | 34,358 | 40,395 |
Operating lease liabilities, long-term | 4,940 | 5,441 |
Other long-term liabilities | 481 | |
Total liabilities | 90,333 | 78,251 |
Stockholders’ Equity: | ||
Preferred Stock: $0.01 par; 3,000 shares authorized, none outstanding | ||
Common Stock: $0.01 par; 300,000 shares authorized; 166,672 and 165,221 issued and outstanding at September 30, 2020 and December 31, 2019, respectively | 1,667 | 1,652 |
Additional paid-in capital | 338,277 | 332,377 |
Accumulated deficit | (274,012) | (278,827) |
Accumulated other comprehensive loss | (691) | (702) |
Total Stockholders' Equity | 65,241 | 54,500 |
Total Liabilities and Stockholders’ Equity | $ 155,574 | $ 132,751 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Sep. 30, 2020 | Dec. 31, 2019 |
Statement Of Financial Position [Abstract] | ||
Preferred Stock, par value | $ 0.01 | $ 0.01 |
Preferred Stock, shares authorized | 3,000,000 | 3,000,000 |
Preferred Stock, shares outstanding | 0 | 0 |
Common Stock, par value | $ 0.01 | $ 0.01 |
Common Stock, shares authorized | 300,000,000 | 300,000,000 |
Common Stock, shares issued | 166,672,000 | 165,221,000 |
Common Stock, shares outstanding | 166,672,000 | 165,221,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenue: | ||||
Total revenue | $ 40,003 | $ 34,306 | $ 105,466 | $ 86,025 |
Cost of revenue: | ||||
Total cost of revenue | 16,517 | 13,062 | 44,041 | 36,449 |
Gross profit | 23,486 | 21,244 | 61,425 | 49,576 |
Operating expenses: | ||||
Research and development | 2,405 | 2,863 | 7,803 | 7,744 |
Selling, general and administrative | 15,231 | 16,385 | 46,101 | 46,407 |
Total operating expenses | 17,636 | 19,248 | 53,904 | 54,151 |
Operating income (loss) | 5,850 | 1,996 | 7,521 | (4,575) |
Interest expense | (782) | (1,097) | (2,810) | (2,470) |
Other income (expense) | (72) | 144 | 104 | 323 |
Net income (loss) | $ 4,996 | $ 1,043 | $ 4,815 | $ (6,722) |
Net income (loss) per common share, basic and diluted | $ 0.03 | $ 0.01 | $ 0.03 | $ (0.04) |
Weighted average common shares outstanding: | ||||
Basic | 166,375 | 163,119 | 165,838 | 162,109 |
Diluted | 169,655 | 168,503 | 169,759 | 162,109 |
Product sales [Member] | ||||
Revenue: | ||||
Total revenue | $ 28,947 | $ 24,687 | $ 80,709 | $ 63,607 |
Cost of revenue: | ||||
Total cost of revenue | 13,615 | 12,510 | 38,556 | 33,791 |
Licensing and Development Revenue [Member] | ||||
Revenue: | ||||
Total revenue | 4,321 | 1,211 | 8,763 | 4,365 |
Royalties [Member] | ||||
Revenue: | ||||
Total revenue | 6,735 | 8,408 | 15,994 | 18,053 |
Cost of development revenue [Member] | ||||
Cost of revenue: | ||||
Total cost of revenue | $ 2,902 | $ 552 | $ 5,485 | $ 2,658 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 4,996 | $ 1,043 | $ 4,815 | $ (6,722) |
Foreign currency translation adjustment | 5 | (2) | 11 | (3) |
Comprehensive income (loss) | $ 5,001 | $ 1,041 | $ 4,826 | $ (6,725) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Cumulative Effect of Change in Accounting Principle [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Accumulated Deficit [Member]Cumulative Effect of Change in Accounting Principle [Member] | Accumulated Other Comprehensive Loss [Member] |
Balance at Dec. 31, 2018 | $ 39,001 | $ 1,597 | $ 314,907 | $ (276,800) | $ (703) | ||
Balance, shares at Dec. 31, 2018 | 159,721,000 | ||||||
Issuance of common stock | 7,781 | $ 23 | 7,758 | ||||
Issuance of common stock, shares | 2,307,000 | ||||||
Common stock issued under equity compensation plan, net of shares withheld for taxes | (1,077) | $ 7 | (1,084) | ||||
Common stock issued under equity compensation plan, net of shares withheld for taxes, shares | 664,000 | ||||||
Exercise of options | 674 | $ 5 | 669 | ||||
Exercise of options, shares | 512,000 | ||||||
Share-based compensation | 4,645 | 4,645 | |||||
Net income (loss) | (6,722) | (6,722) | |||||
Other comprehensive income (loss) | (3) | (3) | |||||
Balance at Sep. 30, 2019 | 44,415 | $ 116 | $ 1,632 | 326,895 | (283,406) | $ 116 | (706) |
Balance, shares at Sep. 30, 2019 | 163,204,000 | ||||||
Balance at Jun. 30, 2019 | 41,552 | $ 1,630 | 325,075 | (284,449) | (704) | ||
Balance, shares at Jun. 30, 2019 | 163,053,000 | ||||||
Common stock issued under equity compensation plan, net of shares withheld for taxes | (13) | $ 1 | (14) | ||||
Common stock issued under equity compensation plan, net of shares withheld for taxes, shares | 9,000 | ||||||
Exercise of options | 190 | $ 1 | 189 | ||||
Exercise of options, shares | 142,000 | ||||||
Share-based compensation | 1,645 | 1,645 | |||||
Net income (loss) | 1,043 | 1,043 | |||||
Other comprehensive income (loss) | (2) | (2) | |||||
Balance at Sep. 30, 2019 | 44,415 | $ 116 | $ 1,632 | 326,895 | (283,406) | $ 116 | (706) |
Balance, shares at Sep. 30, 2019 | 163,204,000 | ||||||
Balance at Dec. 31, 2019 | 54,500 | $ 1,652 | 332,377 | (278,827) | (702) | ||
Balance, shares at Dec. 31, 2019 | 165,221,000 | ||||||
Common stock issued under equity compensation plan, net of shares withheld for taxes | (1,366) | $ 7 | (1,373) | ||||
Common stock issued under equity compensation plan, net of shares withheld for taxes, shares | 676,000 | ||||||
Exercise of options | 1,512 | $ 8 | 1,504 | ||||
Exercise of options, shares | 775,000 | ||||||
Share-based compensation | 5,769 | 5,769 | |||||
Net income (loss) | 4,815 | 4,815 | |||||
Other comprehensive income (loss) | 11 | 11 | |||||
Balance at Sep. 30, 2020 | 65,241 | $ 1,667 | 338,277 | (274,012) | (691) | ||
Balance, shares at Sep. 30, 2020 | 166,672,000 | ||||||
Balance at Jun. 30, 2020 | 57,329 | $ 1,661 | 335,372 | (279,008) | (696) | ||
Balance, shares at Jun. 30, 2020 | 166,085,000 | ||||||
Common stock issued under equity compensation plan, net of shares withheld for taxes | (16) | (16) | |||||
Common stock issued under equity compensation plan, net of shares withheld for taxes, shares | 7,000 | ||||||
Exercise of options | 1,123 | $ 6 | 1,117 | ||||
Exercise of options, shares | 580,000 | ||||||
Share-based compensation | 1,804 | 1,804 | |||||
Net income (loss) | 4,996 | 4,996 | |||||
Other comprehensive income (loss) | 5 | 5 | |||||
Balance at Sep. 30, 2020 | $ 65,241 | $ 1,667 | $ 338,277 | $ (274,012) | $ (691) | ||
Balance, shares at Sep. 30, 2020 | 166,672,000 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 4,815 | $ (6,722) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Stock-based compensation expense | 5,769 | 4,645 |
Depreciation and amortization | 1,730 | 1,916 |
Other | 662 | 279 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (7,422) | (14,957) |
Inventories | (3,809) | (5,153) |
Contract assets | (549) | 1,743 |
Prepaid expenses and other assets | 1,345 | 847 |
Accounts payable | 5,171 | 4,669 |
Accrued expenses and other liabilities | 4,967 | 2,854 |
Deferred revenue | 1,538 | 394 |
Net cash provided by (used in) operating activities | 14,217 | (9,485) |
Cash flows from investing activities: | ||
Purchases of property and equipment | (7,893) | (1,274) |
Proceeds from sale of assets | 2,500 | |
Proceeds from maturities of investment securities | 20,500 | |
Net cash provided by investing activities | 12,607 | 1,226 |
Cash flows from financing activities: | ||
Proceeds from issuance of long-term debt | 15,000 | |
Payment of debt issuance costs | (136) | |
Proceeds from issuance of common stock, net | 7,781 | |
Proceeds from exercise of stock options | 1,512 | 674 |
Taxes paid related to net share settlement of equity awards | (1,366) | (1,077) |
Net cash provided by financing activities | 146 | 22,242 |
Effect of exchange rate changes on cash | 1 | (1) |
Net increase in cash and cash equivalents | 26,971 | 13,982 |
Cash and cash equivalents: | ||
Beginning of period | 23,201 | 27,892 |
End of period | 50,172 | 41,874 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 2,679 | 2,073 |
Supplemental disclosure of non-cash investing activities: | ||
Purchases of property and equipment recorded in accounts payable and accrued expenses | $ 1,577 | $ 881 |
Description of Business
Description of Business | 9 Months Ended |
Sep. 30, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Description of Business | 1. Description of Business Antares Pharma, Inc. (“Antares,” “we,” “our,” “us” or the “Company”) is a pharmaceutical technology company focused primarily on the development and commercialization of self-administered injectable pharmaceutical products and technologies. We develop, manufacture and commercialize, for ourselves or with partners, novel therapeutic products using advanced drug delivery technology to enhance existing drug compounds and delivery methods. Our injection technology platforms include the VIBEX ® ® ® The Company directly markets and sells two proprietary products in the United States, XYOSTED ® ® ® ® Through our commercialization partner Teva, we sell Sumatriptan Injection USP, indicated in the U.S. for the acute treatment of migraine and cluster headache in adults. In collaboration with AMAG, we developed a subcutaneous auto injector and are the exclusive supplier of devices and the final assembled and packaged commercial product of AMAG’s Makena ® Through a license, development and supply agreement with Teva, Antares developed and is the exclusive supplier of the device for Teva’s Epinephrine Injection USP, which is indicated for emergency treatment of severe allergic reactions in adults and certain pediatric patients. The Company also developed and is the exclusive supplier of devices for Teva’s generic equivalent of Forsteo ® The Company is also developing two multi-dose pen injector products in collaboration with Teva, a combination drug device rescue pen in collaboration with Pfizer, a combination drug device product with Idorsia, and has other ongoing internal and partnered research and development programs. |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | 2. Basis of Presentation and Significant Accounting Policies The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) in the U.S. for interim financial information and with the instructions to Form 10-Q and Article 10 of the Securities and Exchange Commission's Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the U.S. for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. The accompanying condensed consolidated financial statements and notes thereto should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. Operating results for the three and nine months ended September 30, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020. Accounting Pronouncements Recently Adopted The Company adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) No. 2018-15 Customers’ Accounting for Implementation Costs Incurred in Cloud Computing Arrangement that is a Service Contract, The Company adopted ASU No. 201 8 - 18 Clarifying the Interaction Between Topic 808 and 606 , effective January 1, 20 20. The guidance clarifies that certain transactions between collaborative arrangement participants should be accounted for under the revenue guidance, adds unit of account guidance to the collaborative arrangement guidance to align with the revenue standard, and clarifies presentation guidance for transactions with a collaborative arrangement participant that is not accounted for under the revenue standard. The Company ’s adoption of this standard did not have a material impact on its consolidated financial statements . Recent Accounting Pronouncements Not Yet Adopted In 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments However, in October 2019, the FASB issued ASU 2019-10, Financial Instruments - Credit Losses, Derivatives and Hedging, and Leases: Effective Dates . Cash and Cash Equivalents Cash and cash equivalents consist of demand deposits at commercial banks and highly liquid investments with an original maturity of three months or less. Cash equivalents, consisting of investments in money market funds, are remeasured and reported at fair value each reporting period, in accordance with ASC Topic 820, Fair Value Measurements Investments From time to time, the Company invests in U.S. Treasury bills and government agency notes that are classified as held-to-maturity because of the Company’s intent and ability to hold the securities to maturity. Investments with maturities of one year or less are classified as short-term. The securities are carried at their amortized cost and the fair value is determined by quoted market prices. The Company’s short-term investments had a carrying value of $1,997 and $22,520 as of September 30, 2020 and December 31, 2019, respectively, which approximated fair value. Fair Value Measurements The Company applies the provisions of ASC 820 for financial assets and liabilities that are required to be measured and reported at fair value each reporting period. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The standard describes the following fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value: Level 1: Level 2: Level 3: The Company’s financial assets and liabilities that are not measured at fair value on a recurring basis under ASC 820 include its held-to-maturity investments and long-term debt , the carrying values of which approximate fair value. The estimated fair value of debt is based on Level 2 inputs, including management’s understanding of current market rates it could obtain for similar loans. The fair value of the Company’s cash, short-term investments, accounts receivable and accounts payable approximate fair value due to their short - term nature. Inventories Inventories are stated at the lower of cost or net realizable value. Cost is determined on a first-in, first-out basis. Certain components of the Company’s products are provided by a limited number of vendors, and the Company’s production, assembly, warehousing and distribution operations are outsourced to third-parties where substantially all of the Company’s inventory is located. Disruption of supply from key vendors or third-party suppliers may have a material adverse impact on the Company’s operations. The Company provides a reserve for potentially excess, dated or obsolete inventories based on an analysis of inventory on hand compared to forecasts of future sales, which was $282 and $464 at September 30, 2020 and December 31, 2019, respectively. Inventories consist of the following: September 30, December 31, 2020 2019 Inventories: Raw material $ 325 $ 325 Work in process 9,088 8,390 Finished goods 10,396 7,285 $ 19,809 $ 16,000 Property and Equipment Property and equipment are stated at cost and depreciated using the straight-line method over their estimated useful lives as follows: Useful Life Computer equipment and software 3-5 Years Furniture, fixtures and office equipment 5-7 years Production molds, tooling and equipment 3-10 years Leasehold improvements Lesser of useful life or lease term Expenditures, including interest costs, for assets under construction that are not yet ready for their intended use are capitalized and will be depreciated based on the above guidelines when placed in service. The Company capitalized $212 of interest costs associated with construction in process during the nine months ended September 30, 2020. Costs associated with repairs and maintenance activities are expensed as incurred. As of September 30, 2020 and December 31, 2019, the Company’s property and equipment totaled $22,547 and $15,961, respectively, which is presented net of accumulated depreciation of $10,809 and $9,769 as of September 30, 2020 and December 31, 2019, respectively. Revenue Recognition The Company generates revenue from proprietary and partnered product sales, license and development activities and royalty arrangements. Revenue is recognized when or as the Company transfers control of the promised goods or services to its customers at the transaction price, which is the amount that reflects the consideration to which it expects to be entitled to in exchange for those goods or services. At inception of each contract, the Company identifies the goods and services that have been promised to the customer and each of those that represent a distinct performance obligation, determines the transaction price including any variable consideration, allocates the transaction price to the distinct performance obligations and determines whether control transfers to the customer at a point in time or over time. Variable consideration is included in the transaction price to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. The Company reassesses its reserves for variable consideration at each reporting date and makes adjustments, if necessary, which may affect revenue and earnings in periods in which any such changes become known. The Company has elected to recognize the cost for freight and shipping activities as fulfilment cost. Amounts billed to customers for shipping and handling are included as part of the transaction price and recognized as revenue when control of underlying goods are transferred to the customer. The related shipping and freight charges incurred by the Company are included in cost of revenue. Proprietary Product Sales The Company sells its proprietary products XYOSTED ® ® The determination of certain of these reserves and sales allowances require management to make a number of judgements and estimates to reflect the Company’s best estimate of the transaction price and the amount of consideration to which it believes it is ultimately entitled to receive. The expected value is determined based on unit sales data, contractual terms with customers and third-party payers, historical and expected utilization rates, any new or anticipated changes in programs or regulations that would impact the amount of the actual rebates, customer purchasing patterns, product expiration dates and levels of inventory in the distribution channel. Reserves for prompt payment discounts are recorded as a reduction in accounts receivable. Reserves for returns, rebates and chargebacks, distributor fees and customer co-pay support programs are included within current liabilities in the consolidated balance sheets. Partnered Product Sales The Company is party to several license, development, supply and distribution arrangements with pharmaceutical partners, under which the Company produces and is the exclusive supplier of certain products, devices and/or components. Revenue is recognized when or as control of the goods transfers to the customer based on the terms of the contract as described below. The Company is the exclusive supplier of the Makena ® All other partnered product sales are recognized at the point in time in which control is transferred to the customer, which is typically upon shipment. Sales terms and pricing are governed by the respective supply and distribution agreements, and there is generally no price protection or right of return. Revenue is recognized at the transaction price, which includes the contractual per unit selling price and estimated variable consideration, if any. For example, the Company sells Sumatriptan Injection USP to Teva at cost and is entitled to receive 50 percent of the net profits from commercial sales made by Teva, payable to the Company within 45 days after the end of the quarter in which the commercial sales are made. The Company recognizes revenue, including the estimated variable consideration it expects to receive for contract margin on future commercial sales, upon shipment of the goods to Teva. The estimated variable consideration is recognized at an amount the Company believes is not subject to significant reversal based on historical experience, and is adjusted at each reporting period if the most likely amount of expected consideration changes or becomes fixed. Licensing and Development Revenue The Company has entered into several license, development and supply arrangements with pharmaceutical partners under which the Company grants a license to its device technology and know-how and provides research and development services that often involve multiple performance obligations and highly customized deliverables. For such arrangements, the Company identifies each of the promised goods and services within the contract and the distinct performance obligations at inception, and allocates consideration to each performance obligation based on relative standalone selling price, which is generally determined based on the expected cost plus margin. If the contract includes an enforceable right to payment for performance completed to date and performance obligations are satisfied over time, the Company recognizes revenue over the development period using either the input or output method depending on which is most appropriate given the nature of the distinct deliverable. For other contracts that do not contain an enforceable right to payment for performance completed to date, revenue is recognized when control is transferred to the customer. Factors that may indicate that the transfer of control has occurred include the transfer of legal title, transfer of physical possession, the customer has obtained the significant risks and rewards of ownership of the assets and the Company has a present right to payment. The Company’s typical payment terms for development contracts may include an upfront payment equal to a percentage of the total contract value with the remaining portion to be billed upon completion and transfer of the individual deliverables or satisfaction of the individual performance obligations. The Company records a contract liability for cash received in advance of performance, which is presented within deferred revenue on the consolidated balance sheet and recognized as revenue when the associated performance obligations have been satisfied. The Company recognized $780 in licensing and development revenue in connection with contract liabilities that were outstanding as of December 31, 2019 and satisfied during the nine months ended September 30, 2020. License fees and milestones received in exchange for the grant of a license to the Company’s functional intellectual property such as patented technology and know-how in connection with a partnered development arrangement are generally recognized at inception of the arrangement, or over the development period depending on the facts and circumstances, as the license is not generally distinct from the non-licensed goods or services to be provided under the contract. Milestone payments that are contingent upon the occurrence of future events are evaluated and recorded at the most likely amount, and to the extent that it is probable that a significant reversal will not occur when the associated uncertainty is resolved. Royalties The Company earns royalties in connection with licenses granted under license and development arrangements with partners. Royalties are based upon a percentage of commercial sales of partnered products with rates ranging from mid-single digit to low double digit and are tiered based on levels of net sales. These sales-based royalties, for which the license was deemed the predominant element to which the royalties relate, are estimated and recognized in the period in which the partners’ commercial sales occur. The royalties are generally reported and payable to the Company within 45 to 60 days of the end of the period in which the commercial sales are made. The Company bases its estimates of royalties earned on actual sales information from its partners when available or estimated prescription sales from external sources and estimated net selling price. If actual royalties received are different than amounts estimated, the Company would adjust the royalty revenue in the period in which the adjustment becomes known. Remaining Performance Obligations Remaining performance obligations represents the allocation of transaction price of firm orders and development contract deliverables for which work has not been completed or orders fulfilled, and excludes potential purchase orders under ordering-type supply contracts with indefinite delivery or quantity. As of September 30, 2020, the aggregate value of remaining performance obligations, excluding contracts with an original expected length of one year or less, was $20,967. The Company expects to recognize revenue on the remaining performance obligations over the next four years. |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | 3 . Long-Term Debt On September 15, 2020, the Company entered into a second amendment (the “Second Amendment”) to its loan and security agreement dated June 6, 2017 (the “Loan Agreement”), as amended by the First Amendment to Loan and Security Agreement dated June 26, 2019 (the “First Amendment”), with Hercules Capital, Inc., as a lender and agent for the several banks and other financial institutions or entities from time to time party thereto. T he Company initially borrowed $ 25.0 million upon execution of the o riginal Loan Agreement in June 2017, and an additional $ 15.0 million (the “Tranche II Loan”) was funded in June 2019 upon the signing of the First Amendment. T he Company may, but is not obligated to, request one or more additional advances of at least $ 5.0 million, not to exceed $ 10.0 million in the aggregate (the “Tranche III Loan”), during the period between January 1, 2020 and September 15, 2020. The sole change under the Second Amendment wa s to extend the period during which the Company may request advances under the Tranche III Loan to October 31, 2020. Payments under the amortizing loan are interest only until the first principal payment is due on August 1, 2021. The interest only period may be extended to August 1, 2022 if the Company achieves a certain loan extension milestone, requests such extension, and pays an extension fee equal to one half of one percent of the principal amount outstanding. Interest accrues at a calculated prime-based variable rate with a maximum interest rate of 9.50%. The interest rate in effect as of September 30, 2020 and December 31, 2019 was 8.50% and 9.25%, respectively. The loan matures on July 1, 2022, but may be extended to July 1, 2024 contingent upon satisfaction of a certain loan extension milestone. |
Share Based Compensation
Share Based Compensation | 9 Months Ended |
Sep. 30, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share Based Compensation | 4 . Share-Based Compensation The Company has an Equity Compensation Plan (the “Plan”), which allows for grants in the form of incentive stock options, nonqualified stock options, stock units, stock awards, stock appreciation rights, and other stock-based awards. The Company also has a long-term incentive program (“LTIP”), pursuant to which the Company’s senior executives have been awarded stock options, restricted stock units (“RSUs”) and performance stock units (“PSUs”). The following is a summary of stock option activity under the Plan as of and for the nine months ended September 30, 2020: Weighted Weighted Average Average Remaining Aggregate Number of Exercise Contractual Intrinsic Shares Price Term (Years) Value Outstanding at December 31, 2019 13,861 $ 2.41 Granted 3,328 2.73 Exercised 775 1.95 Cancelled/Forfeited 728 2.83 Outstanding at September 30, 2020 15,686 2.48 6.8 $ 5,106 Exercisable at September 30, 2020 10,826 $ 2.33 5.6 $ 5,105 The following is a summary of PSU and RSU award activity under the Plan as of and for the nine months ended September 30, 2020: Performance Stock Units Restricted Stock Units Number of Shares Weighted Average Date Fair Value Number of Shares Weighted Average Grant Date Fair Value Outstanding at December 31, 2019 1,841 $ 3.00 1,401 $ 2.82 Granted 605 2.00 1,078 2.73 Incremental shares earned 77 — — — Vested/settled (388 ) 3.11 (785 ) 2.80 Forfeited/expired (494 ) 3.02 (128 ) 2.83 Outstanding at September 30, 2020 1,641 $ 2.61 1,566 $ 2.77 The PSUs granted to senior executives under the LTIP are expressed as a target number of shares in the table above and may be earned based upon the Company’s achievement of certain corporate development goals, net revenue goals and total shareholder return (“TSR”) relative to the Nasdaq Biotechnology Index over the performance period, which is generally a three-year period and determined using a Monte Carlo simulation. The grant date fair value of PSUs that are not tied to market-based performance are expensed over the remaining performance period when it becomes probable that the related goal will be achieved. The LTIP awards that vested during the nine months ended September 30, 2020 and 2019 were net-share settled such that the Company withheld shares with a value equivalent to the employees’ tax obligations for applicable income and other employment taxes, and remitted cash to the appropriate taxing authorities. The Company withheld 425 and 365 shares during the nine months ended September 30, 2020 and 2019, respectively, to satisfy tax obligations, which was determined based on the fair value of the shares on their vesting date equal to the Company’s closing stock price on such date. The Company paid $1,366 and $1,077 during the nine months ended September 30, 2020 and 2019, respectively, to taxing authorities for the employees’ tax obligations, which is reflected as a cash outflow from financing activities within the consolidated statements of cash flows. Net-share settlements have the effect of share repurchases by the Company as they reduce the number of shares that would have otherwise been issued as a result of the vesting. In connection with Plan awards, the Company recognized share-based compensation expense for the three and nine months ended September 30, 2020 and 2019 as follows: Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Stock options $ 1,045 $ 888 $ 2,801 $ 2,555 Restricted stock units 579 565 1,661 1,267 Performance stock units 180 192 1,307 823 Total share-based compensation expense $ 1,804 $ 1,645 $ 5,769 $ 4,645 |
Revenues, Significant Customers
Revenues, Significant Customers and Concentrations of Risk | 9 Months Ended |
Sep. 30, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Revenues, Significant Customers and Concentrations of Risk | 5 . Revenues, Significant Customers and Concentrations of Risk The following table presents the Company’s revenue on a disaggregated basis by types of goods and services and major product lines: Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Proprietary product sales $ 15,765 $ 11,458 $ 43,177 $ 25,213 Partnered product sales 13,182 13,229 37,532 38,394 Total product revenue 28,947 24,687 80,709 63,607 Licensing and development revenue 4,321 1,211 8,763 4,365 Royalties 6,735 8,408 15,994 18,053 Total revenue $ 40,003 $ 34,306 $ 105,466 $ 86,025 Revenues disaggregated by customer location are as follows: Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 United States of America $ 39,371 $ 33,684 $ 103,638 $ 82,411 Europe 632 566 1,828 3,444 Other — 56 — 170 $ 40,003 $ 34,306 $ 105,466 $ 86,025 The following table identifies customers from which the Company derived 10% or more of its total revenue in any of the periods presented: Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Teva 45% 41% 42% 43% AMAG <10% 20% 10% 19% McKesson Corporation 12% <10% 12% <10% AmerisourceBergen Corporation 11% 10% 12% <10% Cardinal Health 11% <10% 11% <10% |
Earnings per Share
Earnings per Share | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings per Share | 6 . Earnings per Share Basic earnings or loss per common share is computed by dividing the net income or loss applicable to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted earnings per common share is computed in a similar manner, except that the weighted average number of shares outstanding is increased to reflect the potential dilution from the exercise or conversion of securities into common stock. Diluted earnings per share contemplate a complete conversion to common shares of all convertible instruments only if such instruments are dilutive in nature with respect to earnings per share. The following table sets forth the computation for basic and diluted net earnings (loss) per share for the three and nine months ended September 30, 2020 and 2019: Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Numerator Numerator for basic and diluted earnings (loss) per share $ 4,996 $ 1,043 $ 4,815 $ (6,722 ) Denominator Basic weighted average common shares outstanding 166,375 163,119 165,838 162,109 Dilutive effects of stock options and share-based awards issuable under equity compensation plans 3,280 5,384 3,921 — Diluted weighted average common shares outstanding 169,655 168,503 169,759 162,109 Computation of: Basic net earnings (loss) per share $ 0.03 $ 0.01 $ 0.03 $ (0.04 ) Diluted net earnings (loss) per share $ 0.03 $ 0.01 $ 0.03 $ (0.04 ) Anti-dilutive common stock equivalents (1) 8,596 5,000 6,719 19,080 (1) These common stock equivalents were outstanding for the period but were not included in the computation of diluted EPS for those periods as their inclusion would have had an anti-dilutive effect. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 7 . Commitments and Contingencies Pending Litigation From time to time, the Company may be involved in various legal matters generally incidental to its business. Although the results of litigation and claims cannot be predicted with certainty, after discussion with legal counsel, management is not aware of any matters for which the likelihood of a loss is probable and reasonably estimable and which could have a material impact on its consolidated financial condition, liquidity, or results of operations. On October 23, 2017, Randy Smith filed a complaint in the District of New Jersey, captioned Randy Smith, Individually and on Behalf of All Others Similarly Situated v. Antares Pharma, Inc., Robert F. Apple and Fred M. Powell Smith contends that defendants made false and/or misleading statements and/or failed to disclose that: (i) Antares had provided insufficient data to the FDA in connection with the NDA for XYOSTED ® ; and (ii) accordingly, Antares had overstated the approval prospects for XYOSTED ® . On July 27, 2018, the court entered an order appointing Serghei Lungu as lead plaintiff, Pomerantz LLP as lead counsel, and Lite DePalma Greenberg, LLC as liaison counsel for plaintiff. On August 3, 2018, the parties submitted a stipulation and proposed order, setting forth an agreed-upon schedule for responding to the complaint, which the court granted. Pursuant to that order, plaintiff filed a Consolidated Amended Class Action Complaint on October 9, 2018. On November 26, 2018, defendants filed a motion to dismiss. Plaintiff filed an opposition to the motion on January 10, 2019 and defendants filed a reply in support of their motion on February 25, 2019. On July 2, 2019, the court dismissed the complaint in its entirety without prejudice. On July 29, 2019, plaintiff filed a Consolidated Second Amended Class Action Complaint against the same parties alleging substantially similar claims. On September 12, 2019, defendants filed a motion to dismiss the Consolidated Second Amended Class Action Complaint. Plaintiffs’ opposition was filed on October 28, 2019 and defendants’ reply in support of their motion was filed on November 27, 2019. On April 28, 2020, the court dismissed the Consolidated Second Amended Class Action Complaint in its entirety. The court further ordered that plaintiff may file an amended complaint by May 29, 2020 and provide the court with a form of the amended complaint that indicates in what respect(s) it differs from the complaint which it proposes to amend. On May 29, 2020, plaintiff filed a Consolidated Third Amended Class Action Complaint and defendants filed a motion to dismiss on July 10, 2020. B riefing on defendants’ motion w as complete on August 25, 2020. The Company believes that the claims in the Smith action lack merit and intends to defend them vigorously. On January 12, 2018, a stockholder of the Company filed a derivative civil action, captioned Chiru Mackert, derivatively on behalf of Antares Pharma, Inc., v. Robert F. Apple, et al. Vikram Rao, Derivatively on Behalf of Antares Pharma, Inc. v. Robert F. Apple, et al. Smith Smith On January 17, 2018, a stockholder of the Company filed a derivative civil action, captioned Robert Clark, Derivatively on Behalf of Antares Pharma, Inc. v. Robert F. Apple, et al. Clark Smith Clark Smith |
Subsequent Event
Subsequent Event | 9 Months Ended |
Sep. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Event | 8. Subsequent Event On October 1, 2020, the Company entered into an exclusive license agreement (the “License Agreement”) with Ferring International Center S.A. and its affiliates (“Ferring”) for the marketed product NOCDURNA ® ® |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Recent Accounting Pronouncements | Accounting Pronouncements Recently Adopted The Company adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) No. 2018-15 Customers’ Accounting for Implementation Costs Incurred in Cloud Computing Arrangement that is a Service Contract, The Company adopted ASU No. 201 8 - 18 Clarifying the Interaction Between Topic 808 and 606 , effective January 1, 20 20. The guidance clarifies that certain transactions between collaborative arrangement participants should be accounted for under the revenue guidance, adds unit of account guidance to the collaborative arrangement guidance to align with the revenue standard, and clarifies presentation guidance for transactions with a collaborative arrangement participant that is not accounted for under the revenue standard. The Company ’s adoption of this standard did not have a material impact on its consolidated financial statements . Recent Accounting Pronouncements Not Yet Adopted In 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments However, in October 2019, the FASB issued ASU 2019-10, Financial Instruments - Credit Losses, Derivatives and Hedging, and Leases: Effective Dates . |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist of demand deposits at commercial banks and highly liquid investments with an original maturity of three months or less. Cash equivalents, consisting of investments in money market funds, are remeasured and reported at fair value each reporting period, in accordance with ASC Topic 820, Fair Value Measurements |
Investments | Investments From time to time, the Company invests in U.S. Treasury bills and government agency notes that are classified as held-to-maturity because of the Company’s intent and ability to hold the securities to maturity. Investments with maturities of one year or less are classified as short-term. The securities are carried at their amortized cost and the fair value is determined by quoted market prices. The Company’s short-term investments had a carrying value of $1,997 and $22,520 as of September 30, 2020 and December 31, 2019, respectively, which approximated fair value. |
Fair Value Measurements | Fair Value Measurements The Company applies the provisions of ASC 820 for financial assets and liabilities that are required to be measured and reported at fair value each reporting period. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The standard describes the following fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value: Level 1: Level 2: Level 3: The Company’s financial assets and liabilities that are not measured at fair value on a recurring basis under ASC 820 include its held-to-maturity investments and long-term debt , the carrying values of which approximate fair value. The estimated fair value of debt is based on Level 2 inputs, including management’s understanding of current market rates it could obtain for similar loans. The fair value of the Company’s cash, short-term investments, accounts receivable and accounts payable approximate fair value due to their short - term nature. |
Revenue Recognition | Revenue Recognition The Company generates revenue from proprietary and partnered product sales, license and development activities and royalty arrangements. Revenue is recognized when or as the Company transfers control of the promised goods or services to its customers at the transaction price, which is the amount that reflects the consideration to which it expects to be entitled to in exchange for those goods or services. At inception of each contract, the Company identifies the goods and services that have been promised to the customer and each of those that represent a distinct performance obligation, determines the transaction price including any variable consideration, allocates the transaction price to the distinct performance obligations and determines whether control transfers to the customer at a point in time or over time. Variable consideration is included in the transaction price to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. The Company reassesses its reserves for variable consideration at each reporting date and makes adjustments, if necessary, which may affect revenue and earnings in periods in which any such changes become known. The Company has elected to recognize the cost for freight and shipping activities as fulfilment cost. Amounts billed to customers for shipping and handling are included as part of the transaction price and recognized as revenue when control of underlying goods are transferred to the customer. The related shipping and freight charges incurred by the Company are included in cost of revenue. Proprietary Product Sales The Company sells its proprietary products XYOSTED ® ® The determination of certain of these reserves and sales allowances require management to make a number of judgements and estimates to reflect the Company’s best estimate of the transaction price and the amount of consideration to which it believes it is ultimately entitled to receive. The expected value is determined based on unit sales data, contractual terms with customers and third-party payers, historical and expected utilization rates, any new or anticipated changes in programs or regulations that would impact the amount of the actual rebates, customer purchasing patterns, product expiration dates and levels of inventory in the distribution channel. Reserves for prompt payment discounts are recorded as a reduction in accounts receivable. Reserves for returns, rebates and chargebacks, distributor fees and customer co-pay support programs are included within current liabilities in the consolidated balance sheets. Partnered Product Sales The Company is party to several license, development, supply and distribution arrangements with pharmaceutical partners, under which the Company produces and is the exclusive supplier of certain products, devices and/or components. Revenue is recognized when or as control of the goods transfers to the customer based on the terms of the contract as described below. The Company is the exclusive supplier of the Makena ® All other partnered product sales are recognized at the point in time in which control is transferred to the customer, which is typically upon shipment. Sales terms and pricing are governed by the respective supply and distribution agreements, and there is generally no price protection or right of return. Revenue is recognized at the transaction price, which includes the contractual per unit selling price and estimated variable consideration, if any. For example, the Company sells Sumatriptan Injection USP to Teva at cost and is entitled to receive 50 percent of the net profits from commercial sales made by Teva, payable to the Company within 45 days after the end of the quarter in which the commercial sales are made. The Company recognizes revenue, including the estimated variable consideration it expects to receive for contract margin on future commercial sales, upon shipment of the goods to Teva. The estimated variable consideration is recognized at an amount the Company believes is not subject to significant reversal based on historical experience, and is adjusted at each reporting period if the most likely amount of expected consideration changes or becomes fixed. Licensing and Development Revenue The Company has entered into several license, development and supply arrangements with pharmaceutical partners under which the Company grants a license to its device technology and know-how and provides research and development services that often involve multiple performance obligations and highly customized deliverables. For such arrangements, the Company identifies each of the promised goods and services within the contract and the distinct performance obligations at inception, and allocates consideration to each performance obligation based on relative standalone selling price, which is generally determined based on the expected cost plus margin. If the contract includes an enforceable right to payment for performance completed to date and performance obligations are satisfied over time, the Company recognizes revenue over the development period using either the input or output method depending on which is most appropriate given the nature of the distinct deliverable. For other contracts that do not contain an enforceable right to payment for performance completed to date, revenue is recognized when control is transferred to the customer. Factors that may indicate that the transfer of control has occurred include the transfer of legal title, transfer of physical possession, the customer has obtained the significant risks and rewards of ownership of the assets and the Company has a present right to payment. The Company’s typical payment terms for development contracts may include an upfront payment equal to a percentage of the total contract value with the remaining portion to be billed upon completion and transfer of the individual deliverables or satisfaction of the individual performance obligations. The Company records a contract liability for cash received in advance of performance, which is presented within deferred revenue on the consolidated balance sheet and recognized as revenue when the associated performance obligations have been satisfied. The Company recognized $780 in licensing and development revenue in connection with contract liabilities that were outstanding as of December 31, 2019 and satisfied during the nine months ended September 30, 2020. License fees and milestones received in exchange for the grant of a license to the Company’s functional intellectual property such as patented technology and know-how in connection with a partnered development arrangement are generally recognized at inception of the arrangement, or over the development period depending on the facts and circumstances, as the license is not generally distinct from the non-licensed goods or services to be provided under the contract. Milestone payments that are contingent upon the occurrence of future events are evaluated and recorded at the most likely amount, and to the extent that it is probable that a significant reversal will not occur when the associated uncertainty is resolved. Royalties The Company earns royalties in connection with licenses granted under license and development arrangements with partners. Royalties are based upon a percentage of commercial sales of partnered products with rates ranging from mid-single digit to low double digit and are tiered based on levels of net sales. These sales-based royalties, for which the license was deemed the predominant element to which the royalties relate, are estimated and recognized in the period in which the partners’ commercial sales occur. The royalties are generally reported and payable to the Company within 45 to 60 days of the end of the period in which the commercial sales are made. The Company bases its estimates of royalties earned on actual sales information from its partners when available or estimated prescription sales from external sources and estimated net selling price. If actual royalties received are different than amounts estimated, the Company would adjust the royalty revenue in the period in which the adjustment becomes known. Remaining Performance Obligations Remaining performance obligations represents the allocation of transaction price of firm orders and development contract deliverables for which work has not been completed or orders fulfilled, and excludes potential purchase orders under ordering-type supply contracts with indefinite delivery or quantity. As of September 30, 2020, the aggregate value of remaining performance obligations, excluding contracts with an original expected length of one year or less, was $20,967. The Company expects to recognize revenue on the remaining performance obligations over the next four years. |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Inventories | Inventories consist of the following: September 30, December 31, 2020 2019 Inventories: Raw material $ 325 $ 325 Work in process 9,088 8,390 Finished goods 10,396 7,285 $ 19,809 $ 16,000 |
Summary of Estimated Useful Lives of Property and Equipment | Property and equipment are stated at cost and depreciated using the straight-line method over their estimated useful lives as follows: Useful Life Computer equipment and software 3-5 Years Furniture, fixtures and office equipment 5-7 years Production molds, tooling and equipment 3-10 years Leasehold improvements Lesser of useful life or lease term |
Share Based Compensation (Table
Share Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Stock Option Activity | The following is a summary of stock option activity under the Plan as of and for the nine months ended September 30, 2020: Weighted Weighted Average Average Remaining Aggregate Number of Exercise Contractual Intrinsic Shares Price Term (Years) Value Outstanding at December 31, 2019 13,861 $ 2.41 Granted 3,328 2.73 Exercised 775 1.95 Cancelled/Forfeited 728 2.83 Outstanding at September 30, 2020 15,686 2.48 6.8 $ 5,106 Exercisable at September 30, 2020 10,826 $ 2.33 5.6 $ 5,105 |
Summary of PSU and RSU Award Activity Under Plan | The following is a summary of PSU and RSU award activity under the Plan as of and for the nine months ended September 30, 2020: Performance Stock Units Restricted Stock Units Number of Shares Weighted Average Date Fair Value Number of Shares Weighted Average Grant Date Fair Value Outstanding at December 31, 2019 1,841 $ 3.00 1,401 $ 2.82 Granted 605 2.00 1,078 2.73 Incremental shares earned 77 — — — Vested/settled (388 ) 3.11 (785 ) 2.80 Forfeited/expired (494 ) 3.02 (128 ) 2.83 Outstanding at September 30, 2020 1,641 $ 2.61 1,566 $ 2.77 |
Summary of Share Based Compensation Allocation Expense | In connection with Plan awards, the Company recognized share-based compensation expense for the three and nine months ended September 30, 2020 and 2019 as follows: Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Stock options $ 1,045 $ 888 $ 2,801 $ 2,555 Restricted stock units 579 565 1,661 1,267 Performance stock units 180 192 1,307 823 Total share-based compensation expense $ 1,804 $ 1,645 $ 5,769 $ 4,645 |
Revenues, Significant Custome_2
Revenues, Significant Customers and Concentrations of Risk (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Summary of Revenues Disaggregated by Types of Goods and Services and Major Product and Customer Location | The following table presents the Company’s revenue on a disaggregated basis by types of goods and services and major product lines: Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Proprietary product sales $ 15,765 $ 11,458 $ 43,177 $ 25,213 Partnered product sales 13,182 13,229 37,532 38,394 Total product revenue 28,947 24,687 80,709 63,607 Licensing and development revenue 4,321 1,211 8,763 4,365 Royalties 6,735 8,408 15,994 18,053 Total revenue $ 40,003 $ 34,306 $ 105,466 $ 86,025 Revenues disaggregated by customer location are as follows: Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 United States of America $ 39,371 $ 33,684 $ 103,638 $ 82,411 Europe 632 566 1,828 3,444 Other — 56 — 170 $ 40,003 $ 34,306 $ 105,466 $ 86,025 |
Summary of Significant Customers from which the Company Derived 10% or More of Total Revenue | The following table identifies customers from which the Company derived 10% or more of its total revenue in any of the periods presented: Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Teva 45% 41% 42% 43% AMAG <10% 20% 10% 19% McKesson Corporation 12% <10% 12% <10% AmerisourceBergen Corporation 11% 10% 12% <10% Cardinal Health 11% <10% 11% <10% |
Earnings per Share (Tables)
Earnings per Share (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Summary of Computation for Basic and Diluted Net Earnings (Loss) per Share | The following table sets forth the computation for basic and diluted net earnings (loss) per share for the three and nine months ended September 30, 2020 and 2019: Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Numerator Numerator for basic and diluted earnings (loss) per share $ 4,996 $ 1,043 $ 4,815 $ (6,722 ) Denominator Basic weighted average common shares outstanding 166,375 163,119 165,838 162,109 Dilutive effects of stock options and share-based awards issuable under equity compensation plans 3,280 5,384 3,921 — Diluted weighted average common shares outstanding 169,655 168,503 169,759 162,109 Computation of: Basic net earnings (loss) per share $ 0.03 $ 0.01 $ 0.03 $ (0.04 ) Diluted net earnings (loss) per share $ 0.03 $ 0.01 $ 0.03 $ (0.04 ) Anti-dilutive common stock equivalents (1) 8,596 5,000 6,719 19,080 (1) These common stock equivalents were outstanding for the period but were not included in the computation of diluted EPS for those periods as their inclusion would have had an anti-dilutive effect. |
Description of Business - Addit
Description of Business - Additional Information (Detail) | Sep. 30, 2020ProprietaryProduct |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Number of proprietary products directly marketed and sold | 2 |
Basis of Presentation and Sig_4
Basis of Presentation and Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Summary Of Significant Accounting Policies [Line Items] | ||
Carrying value of short-term investments | $ 1,997 | $ 22,520 |
Inventory reserve | 282 | 464 |
Interest costs capitalized | 212 | |
Property and equipment, net | 22,547 | 15,961 |
Accumulated depreciation | 10,809 | 9,769 |
Remaining performance obligations | $ 20,967 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Explanation | The Company expects to recognize revenue on the remaining performance obligations over the next four years. | |
Licensing and Development Revenue [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Revenue recognized | $ 780 | |
Teva [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Future net profits from commercial sales percent | 50.00% | |
Minimum [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Royalty payment period | 45 days | |
Maximum [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Royalty payment period | 60 days | |
Level 1 Input [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Cash and cash equivalents, remeasured and reported at fair value | $ 32,104 | $ 11,153 |
Basis of Presentation and Sig_5
Basis of Presentation and Significant Accounting Policies - Inventories (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Raw material | $ 325 | $ 325 |
Work in process | 9,088 | 8,390 |
Finished goods | 10,396 | 7,285 |
Inventory, Total | $ 19,809 | $ 16,000 |
Basis of Presentation and Sig_6
Basis of Presentation and Significant Accounting Policies - Summary of Estimated Useful Lives of Property and Equipment (Details) | 9 Months Ended |
Sep. 30, 2020 | |
Leasehold Improvements [Member] | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives | Lesser of useful life or lease term |
Minimum [Member] | Computer Equipment and Software [Member] | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, useful life | 3 years |
Minimum [Member] | Furniture, Fixtures and Office Equipment [Member] | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, useful life | 5 years |
Minimum [Member] | Production Molds, Tooling and Equipment [Member] | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, useful life | 3 years |
Maximum [Member] | Computer Equipment and Software [Member] | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, useful life | 5 years |
Maximum [Member] | Furniture, Fixtures and Office Equipment [Member] | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, useful life | 7 years |
Maximum [Member] | Production Molds, Tooling and Equipment [Member] | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, useful life | 10 years |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) - USD ($) | 1 Months Ended | 9 Months Ended | ||||
Jun. 26, 2019 | Jun. 30, 2017 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 15, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | ||||||
Proceeds from issuance of long-term debt | $ 15,000,000 | |||||
Hercules Capital, Inc [Member] | Term Loan [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Proceeds from issuance of long-term debt | $ 25,000,000 | |||||
Debt instrument, effective interest rate | 8.50% | 9.25% | ||||
Debt instrument, first principal payment due date | Aug. 1, 2021 | |||||
Debt instrument, payment terms | Payments under the amortizing loan are interest only until the first principal payment is due on August 1, 2021. The interest only period may be extended to August 1, 2022 if the Company achieves a certain loan extension milestone, requests such extension, and pays an extension fee equal to one half of one percent of the principal amount outstanding. | |||||
Debt instrument, maturity date | Jul. 1, 2022 | |||||
Debt instrument, extended maturity date | Jul. 1, 2024 | |||||
Hercules Capital, Inc [Member] | Term Loan [Member] | Prime Based Variable Rate [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, variable interest rate | 9.50% | |||||
Hercules Capital, Inc [Member] | Term Loan [Member] | First Amendment [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, payment terms | The loan matures on July 1, 2022, but may be extended to July 1, 2024 contingent upon satisfaction of a certain loan extension milestone. | |||||
Hercules Capital, Inc [Member] | Tranche II [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, increase in face amount | $ 15,000,000 | |||||
Hercules Capital, Inc [Member] | Minimum [Member] | Tranche III [Member] | Second Amendment [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, available option to request additional advance amount | $ 5,000,000 | |||||
Hercules Capital, Inc [Member] | Maximum [Member] | Tranche III [Member] | Second Amendment [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, available option to request additional advance amount | $ 10,000,000 |
Share Based Compensation - Summ
Share Based Compensation - Summary of Stock Option Activity (Detail) $ / shares in Units, $ in Thousands | 9 Months Ended |
Sep. 30, 2020USD ($)$ / sharesshares | |
Stockholders Equity Note [Abstract] | |
Number of Shares Outstanding, Beginning Balance | shares | 13,861,000 |
Number of Shares Granted | shares | 3,328,000 |
Number of Shares Exercised | shares | 775,000 |
Number of Shares Cancelled/Forfeited | shares | 728,000 |
Number of Shares Outstanding, Ending Balance | shares | 15,686,000 |
Number of Shares Exercisable, Ending Balance | shares | 10,826,000 |
Weighted Average Exercise Price Outstanding, Beginning Balance | $ / shares | $ 2.41 |
Weighted Average Exercise Price Granted | $ / shares | 2.73 |
Weighted Average Exercise Price Exercised | $ / shares | 1.95 |
Weighted Average Exercise Price Cancelled/Forfeited | $ / shares | 2.83 |
Weighted Average Exercise Price Outstanding, Ending Balance | $ / shares | 2.48 |
Weighted Average Exercise Price Exercisable, Ending Balance | $ / shares | $ 2.33 |
Weighted Average Remaining Contractual Term (Years) Outstanding, Ending Balance | 6 years 9 months 18 days |
Weighted Average Remaining Contractual Term (Years) Exercisable, Ending Balance | 5 years 7 months 6 days |
Aggregate Intrinsic Value Outstanding, Ending Balance | $ | $ 5,106 |
Aggregate Intrinsic Value Exercisable, Ending Balance | $ | $ 5,105 |
Share Based Compensation - Su_2
Share Based Compensation - Summary of PSU and RSU Award Activity Under Plan (Detail) | 9 Months Ended |
Sep. 30, 2020$ / sharesshares | |
Performance Stock Units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Shares, Beginning Balance | 1,841,000 |
Number of Shares, Granted | 605,000 |
Number of Shares, Incremental shares earned | 77,000 |
Number of Shares, Vested/settled | (388,000) |
Number of Shares, Forfeited/expired | (494,000) |
Number of Shares, Ending Balance | 1,641,000 |
Weighted Average Grant Date Fair Value, Beginning Balance | $ / shares | $ 3 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 2 |
Weighted Average Grant Date Fair Value, Vested/settled | $ / shares | 3.11 |
Weighted Average Grant Date Fair Value, Forfeited/expired | $ / shares | 3.02 |
Weighted Average Grant Date Fair Value, Ending Balance | $ / shares | $ 2.61 |
Restricted Stock Units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Shares, Beginning Balance | 1,401,000 |
Number of Shares, Granted | 1,078,000 |
Number of Shares, Vested/settled | (785,000) |
Number of Shares, Forfeited/expired | (128,000) |
Number of Shares, Ending Balance | 1,566,000 |
Weighted Average Grant Date Fair Value, Beginning Balance | $ / shares | $ 2.82 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 2.73 |
Weighted Average Grant Date Fair Value, Vested/settled | $ / shares | 2.80 |
Weighted Average Grant Date Fair Value, Forfeited/expired | $ / shares | 2.83 |
Weighted Average Grant Date Fair Value, Ending Balance | $ / shares | $ 2.77 |
Share Based Compensation - Addi
Share Based Compensation - Additional Information (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares withheld to meet employees' statutory income tax obligation | 425,000 | 365,000 |
Amounts paid to taxing authorities for employees’ tax obligations | $ 1,366 | $ 1,077 |
Employees Tax Obligations [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Amounts paid to taxing authorities for employees’ tax obligations | $ 1,366 | $ 1,077 |
Performance Stock Units [Member] | Long Term Incentive Program [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 3 years | |
Performance Stock Units [Member] | Long Term Incentive Program [Member] | Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share based compensation award percentage | 0.00% | |
Performance Stock Units [Member] | Long Term Incentive Program [Member] | Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share based compensation award percentage | 150.00% |
Share Based Compensation - Su_3
Share Based Compensation - Summary of Share Based Compensation Allocation Expense (Detail) - Long Term Incentive Program [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total share-based compensation expense | $ 1,804 | $ 1,645 | $ 5,769 | $ 4,645 |
Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total share-based compensation expense | 1,045 | 888 | 2,801 | 2,555 |
Restricted Stock Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total share-based compensation expense | 579 | 565 | 1,661 | 1,267 |
Performance Stock Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total share-based compensation expense | $ 180 | $ 192 | $ 1,307 | $ 823 |
Revenues, Significant Custome_3
Revenues, Significant Customers and Concentrations of Risk - Summary of Revenue Disaggregated by Types of Goods and Services and Major Product (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | $ 40,003 | $ 34,306 | $ 105,466 | $ 86,025 |
Total Product Revenue [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 28,947 | 24,687 | 80,709 | 63,607 |
Total Product Revenue [Member] | Proprietary Product [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 15,765 | 11,458 | 43,177 | 25,213 |
Total Product Revenue [Member] | Partnered Product [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 13,182 | 13,229 | 37,532 | 38,394 |
Licensing and Development Revenue [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 4,321 | 1,211 | 8,763 | 4,365 |
Royalties [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | $ 6,735 | $ 8,408 | $ 15,994 | $ 18,053 |
Revenues, Significant Custome_4
Revenues, Significant Customers and Concentrations of Risk - Summary of Revenues Disaggregated by Customer Location (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Disaggregation Of Revenue [Line Items] | ||||
Total revenues | $ 40,003 | $ 34,306 | $ 105,466 | $ 86,025 |
United States of America [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenues | 39,371 | 33,684 | 103,638 | 82,411 |
Europe [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenues | $ 632 | 566 | $ 1,828 | 3,444 |
Other [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenues | $ 56 | $ 170 |
Revenues, Significant Custome_5
Revenues, Significant Customers and Concentrations of Risk - Summary of Significant Customers from which the Company Derived 10% or More of Total Revenue (Detail) - Customer Concentration Risk [Member] | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Teva [Member] | ||||
Concentration Risk [Line Items] | ||||
Total revenue by customer, percentage | 45.00% | 41.00% | 42.00% | 43.00% |
AMAG [Member] | ||||
Concentration Risk [Line Items] | ||||
Total revenue by customer, percentage | 20.00% | 10.00% | 19.00% | |
AMAG [Member] | Maximum [Member] | ||||
Concentration Risk [Line Items] | ||||
Total revenue by customer, percentage | 10.00% | |||
AmerisourceBergen Corporation [Member] | ||||
Concentration Risk [Line Items] | ||||
Total revenue by customer, percentage | 11.00% | 10.00% | 12.00% | |
AmerisourceBergen Corporation [Member] | Maximum [Member] | ||||
Concentration Risk [Line Items] | ||||
Total revenue by customer, percentage | 10.00% | |||
McKesson Corporation [Member] | ||||
Concentration Risk [Line Items] | ||||
Total revenue by customer, percentage | 12.00% | 12.00% | ||
McKesson Corporation [Member] | Maximum [Member] | ||||
Concentration Risk [Line Items] | ||||
Total revenue by customer, percentage | 10.00% | 10.00% | ||
Cardinal Health [Member] | ||||
Concentration Risk [Line Items] | ||||
Total revenue by customer, percentage | 11.00% | 11.00% | ||
Cardinal Health [Member] | Maximum [Member] | ||||
Concentration Risk [Line Items] | ||||
Total revenue by customer, percentage | 10.00% | 10.00% |
Earnings per Share - Summary of
Earnings per Share - Summary of Computation for Basic and Diluted Net Earnings (Loss) per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Numerator | |||||
Numerator for basic and diluted earnings (loss) per share | $ 4,996 | $ 1,043 | $ 4,815 | $ (6,722) | |
Weighted average common shares outstanding: | |||||
Basic weighted average common shares outstanding | 166,375 | 163,119 | 165,838 | 162,109 | |
Dilutive effects of stock options and share-based awards issuable under equity compensation plans | 3,280 | 5,384 | 3,921 | ||
Diluted weighted average common shares outstanding | 169,655 | 168,503 | 169,759 | 162,109 | |
Computation of: | |||||
Basic net earnings (loss) per share | $ 0.03 | $ 0.01 | $ 0.03 | $ (0.04) | |
Diluted net earnings (loss) per share | $ 0.03 | $ 0.01 | $ 0.03 | $ (0.04) | |
Anti-dilutive common stock equivalents | [1] | 8,596 | 5,000 | 6,719 | 19,080 |
[1] | These common stock equivalents were outstanding for the period but were not included in the computation of diluted EPS for those periods as their inclusion would have had an anti-dilutive effect. |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Detail) - Subsequent Event [Member] - License Agreement [Member] - Ferring International Center S.A. and its Affiliates [Member] | Oct. 01, 2020USD ($) |
Subsequent Event [Line Items] | |
Upfront payment paid | $ 5,000,000 |
Additional upfront payment made at one year from execution | 2,500,000 |
Maximum [Member] | |
Subsequent Event [Line Items] | |
Tiered royalties and additional commercial milestone payments | $ 17,500,000 |