Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | Apr. 24, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | BMRN | |
Entity Registrant Name | BIOMARIN PHARMACEUTICAL INC | |
Entity Central Index Key | 1048477 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 160,336,762 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | |
In Thousands, unless otherwise specified | |||
Current assets: | |||
Cash and cash equivalents | $900,570 | $875,486 | [1] |
Short-term investments | 108,119 | 69,706 | [1] |
Accounts receivable, net (allowance for doubtful accounts: $489 and $490, at March 31, 2015 and December 31, 2014, respectively) | 175,738 | 144,472 | [1] |
Inventory | 222,833 | 199,452 | [1] |
Current deferred tax assets | 31,203 | 31,203 | [1] |
Other current assets | 84,265 | 111,835 | [1] |
Total current assets | 1,522,728 | 1,432,154 | [1] |
Noncurrent assets: | |||
Investment in BioMarin/Genzyme LLC | 890 | 1,039 | [1] |
Long-term investments | 223,920 | 97,856 | [1] |
Property, plant and equipment, net | 538,117 | 523,516 | [1] |
Intangible assets, net | 926,896 | 156,578 | [1] |
Goodwill | 202,392 | 54,258 | [1] |
Long-term deferred tax assets | 163,411 | 159,771 | [1] |
Other assets | 80,332 | 65,281 | [1] |
Total assets | 3,658,686 | 2,490,453 | [1] |
Current liabilities: | |||
Accounts payable and accrued liabilities | 230,212 | 231,844 | [1] |
Short-term contingent acquisition consideration payable | 75,294 | 3,895 | [1] |
Total current liabilities | 305,506 | 235,739 | [1] |
Noncurrent liabilities: | |||
Long-term convertible debt | 655,491 | 657,976 | [1] |
Long-term contingent acquisition consideration payable | 39,052 | 38,767 | [1] |
Long-term deferred tax liabilities | 193,202 | ||
Other long-term liabilities | 39,980 | 30,077 | [1] |
Total liabilities | 1,233,231 | 962,559 | [1] |
Stockholders’ equity: | |||
Common stock, $0.001 par value: 250,000,000 shares authorized at March 31, 2015 and December 31, 2014: 160,282,313 and 149,093,647 shares issued and outstanding at March 31, 2015 and December 31, 2014, respectively | 161 | 149 | [1] |
Additional paid-in capital | 3,308,137 | 2,359,744 | [1] |
Company common stock held by Nonqualified Deferred Compensation Plan | -9,391 | -9,695 | [1] |
Accumulated other comprehensive income | 43,819 | 27,466 | [1] |
Accumulated deficit | -917,271 | -849,770 | [1] |
Total stockholders’ equity | 2,425,455 | 1,527,894 | [1] |
Total liabilities and stockholders’ equity | $3,658,686 | $2,490,453 | [1] |
[1] | December 31, 2014 balances were derived from the audited Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014, filed with the Securities and Exchange Commission (the SEC) on March 2, 2015. |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | |
In Thousands, except Share data, unless otherwise specified | |||
Statement Of Financial Position [Abstract] | |||
Allowance for doubtful accounts | $489 | $490 | [1] |
Common stock, par value | $0.00 | $0.00 | [1] |
Common stock, shares authorized | 250,000,000 | 250,000,000 | [1] |
Common stock, shares issued | 160,282,313 | 149,093,647 | [1] |
Common stock, shares outstanding | 160,282,313 | 149,093,647 | [1] |
[1] | December 31, 2014 balances were derived from the audited Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014, filed with the Securities and Exchange Commission (the SEC) on March 2, 2015. |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
REVENUES: | ||
Net product revenues | $201,312 | $149,004 |
Collaborative agreement revenues | 376 | 415 |
Royalty, license and other revenues | 1,576 | 2,133 |
Total revenues | 203,264 | 151,552 |
OPERATING EXPENSES: | ||
Cost of sales | 32,813 | 22,816 |
Research and development | 142,074 | 86,166 |
Selling, general and administrative | 92,806 | 60,069 |
Intangible asset amortization and contingent consideration | 1,431 | 8,957 |
Total operating expenses | 269,124 | 178,008 |
LOSS FROM OPERATIONS | -65,860 | -26,456 |
Equity in the loss of BioMarin/Genzyme LLC | -150 | -338 |
Interest income | 683 | 1,123 |
Interest expense | -9,462 | -9,106 |
Debt conversion expense | -163 | |
Other income | 249 | 153 |
LOSS BEFORE INCOME TAXES | -74,703 | -34,624 |
Provision for (benefit from) income taxes | -7,202 | 3,491 |
NET LOSS | -67,501 | -38,115 |
NET LOSS PER SHARE, BASIC | ($0.43) | ($0.26) |
NET LOSS PER SHARE, DILUTED | ($0.43) | ($0.27) |
Weighted average common shares outstanding, basic | 157,612 | 143,983 |
Weighted average common shares outstanding, diluted | 157,612 | 144,157 |
COMPREHENSIVE LOSS | ($51,148) | ($35,858) |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net loss | ($67,501) | ($38,115) | |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Depreciation and amortization | 14,397 | 12,004 | |
Non-cash interest expense | 7,000 | 6,698 | |
Accretion of discount on investments | 417 | 1,900 | |
Stock-based compensation | 23,714 | 17,267 | |
Gain on termination of lease | -8,858 | ||
Equity in the loss of BioMarin/Genzyme LLC | 150 | 338 | |
Deferred income taxes | -7,800 | -179 | |
Excess tax benefit from stock option exercises | -527 | -278 | |
Unrealized foreign exchange gain on forward contracts | -5,686 | 1,323 | |
Non-cash changes in the fair value of contingent acquisition consideration payable | 282 | 8,151 | |
Debt conversion expense | 163 | ||
Other | -443 | ||
Changes in operating assets and liabilities: | |||
Accounts receivable, net | -26,789 | 7,406 | |
Inventory | -23,946 | -13,870 | |
Other current assets | -3,522 | -927 | |
Other assets | 330 | -920 | |
Accounts payable and accrued liabilities | -57,236 | -19,020 | |
Other long-term liabilities | 9,186 | 587 | |
Net cash used in operating activities | -137,811 | -26,493 | |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Purchases of property, plant and equipment | -43,832 | -23,607 | |
Maturities and sales of investments | 124,137 | 69,391 | |
Purchase of available-for-sale investments | -288,431 | -84,306 | |
Purchase of promissory note | -3,326 | ||
Business acquisitions, net of cash acquired | -538,392 | ||
Other | -1,027 | ||
Net cash used in investing activities | -750,871 | -38,522 | |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Proceeds from exercises of stock options and Employee Stock Purchase Plan (the ESPP) | 28,026 | 19,712 | |
Taxes paid related to net share settlement of equity awards | -735 | -473 | |
Proceeds from public offering of common stock, net | 888,257 | 117,464 | |
Excess tax benefit from stock option exercises | 527 | 278 | |
Payments for debt conversion | -163 | ||
Other | -1,121 | -17 | |
Net cash provided by financing activities | 914,791 | 136,964 | |
Effect of exchange rate changes on cash | -1,025 | -952 | |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 25,084 | 70,997 | |
Cash and cash equivalents: | |||
Beginning of period | 875,486 | [1] | 568,781 |
End of period | 900,570 | 639,778 | |
SUPPLEMENTAL CASH FLOW DISCLOSURES: | |||
Cash paid for interest, net of interest capitalized into fixed assets | 309 | 1 | |
Cash paid for income taxes | 1,358 | 381 | |
Stock-based compensation capitalized into inventory | 2,480 | 2,053 | |
Depreciation capitalized into inventory | 3,580 | 2,924 | |
SUPPLEMENTAL CASH FLOW DISCLOSURES FROM INVESTING AND FINANCING ACTIVITIES: | |||
Decrease in accounts payable and accrued liabilities related to fixed assets | -20,985 | -9,171 | |
Conversion of convertible debt | 8,133 | ||
Deferred offering costs reclassified into additional paid-in-capital as a result of conversion of convertible debt | 45 | ||
Release of escrow balance for purchase of San Rafael Corporate Center | $116,500 | ||
[1] | December 31, 2014 balances were derived from the audited Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014, filed with the Securities and Exchange Commission (the SEC) on March 2, 2015. |
NATURE_OF_OPERATIONS_AND_BUSIN
NATURE OF OPERATIONS AND BUSINESS RISKS | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
NATURE OF OPERATIONS AND BUSINESS RISKS | (1) NATURE OF OPERATIONS AND BUSINESS RISKS |
BioMarin Pharmaceutical Inc. (the Company or BioMarin), a Delaware corporation, develops and commercializes innovative biopharmaceuticals for serious diseases and medical conditions. BioMarin selects product candidates for diseases and conditions that represent a significant unmet medical need, have well-understood biology and provide an opportunity to be first-to-market or offer a significant benefit over existing products. The Company’s product portfolio is comprised of five approved products and multiple clinical and pre-clinical product candidates. The Company’s approved products are Vimizim (elosulfase alpha), Naglazyme (galsulfase), Kuvan (sapropterin dihydrochloride), Aldurazyme (laronidase) and Firdapse (amifampridine phosphate). | |
Through March 31, 2015, the Company had accumulated losses of approximately $917.3 million. The Company expects to continue to finance future cash needs that exceed its operating activities primarily through its current cash, cash equivalents, short-term and long-term investments, and to the extent necessary, through proceeds from equity or debt financings, loans and collaborative agreements with corporate partners. If the Company elects to increase its spending on development programs significantly above current long-term plans or enters into potential licenses and other acquisitions of complementary technologies, products or companies, the Company may need additional capital. | |
The Company is subject to a number of risks, including: the financial performance of Vimizim, Naglazyme, Kuvan, Aldurazyme and Firdapse; the potential need for additional financings; the Company’s ability to successfully commercialize its approved product candidates; the uncertainty of the Company’s research and development (R&D) efforts resulting in future successful commercial products; the Company’s ability to successfully obtain regulatory approval for new products; significant competition from larger organizations; reliance on the proprietary technology of others; dependence on key personnel; uncertain patent protection; dependence on corporate partners and collaborators; and possible restrictions on reimbursement from governmental agencies and healthcare organizations, as well as other changes in the health care industry. |
BASIS_OF_PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION | (2) BASIS OF PRESENTATION |
The accompanying Condensed Consolidated Financial Statements have been prepared pursuant to the rules and regulations of the SEC for Quarterly Reports on Form 10-Q and do not include all of the information and note disclosures required by U.S. generally accepted accounting principles (U.S. GAAP) for complete financial statements. The Condensed Consolidated Financial Statements should therefore be read in conjunction with the Consolidated Financial Statements and Notes thereto for the fiscal year ended December 31, 2014 included in the Company’s Annual Report on Form 10-K. | |
The accompanying Condensed Consolidated Financial Statements have been prepared in accordance with U.S. GAAP, which requires management to make estimates and assumptions that affect amounts reported in the Condensed Consolidated Financial Statements and accompanying disclosures. Although these estimates are based on management’s best knowledge of current events and actions that the Company may undertake in the future, actual results may be different from those estimates. The Condensed Consolidated Financial Statements reflect all adjustments of a normal, recurring nature that are, in the opinion of management, necessary for a fair presentation of results for these interim periods. The results of operations for the three months ended March 31, 2015 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2015. | |
The Company has evaluated events and transactions subsequent to the balance sheet date. Based on this evaluation, the Company is not aware of any events or transactions that occurred subsequent to the balance sheet date but prior to filing this Quarterly Report on Form 10-Q that would require recognition or disclosure in the Condensed Consolidated Financial Statements. | |
SIGNIFICANT_ACCOUNTING_POLICIE
SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | (3) SIGNIFICANT ACCOUNTING POLICIES |
There have been no material changes to the Company’s significant accounting policies during the three months ended March 31, 2015, as compared to the significant accounting policies disclosed in Note 3 of the Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. | |
Reclassifications | |
Certain items in the Company’s prior year Condensed Consolidated Financial Statements have been reclassified to conform to the current presentation. | |
RECENT_ACCOUNTING_PRONOUNCEMEN
RECENT ACCOUNTING PRONOUNCEMENTS | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Changes And Error Corrections [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | (4) RECENT ACCOUNTING PRONOUNCEMENTS |
There have been no new accounting pronouncements or changes to accounting pronouncements during the three months ended March 31, 2015, as compared to the recent accounting pronouncements described in Note 4 of the Company’s Annual Report on Form 10-K for the year-ended December 31, 2014, that are of significance or potential significance to the Company. |
ACQUISITIONS
ACQUISITIONS | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Business Combinations [Abstract] | |||||||
ACQUISITIONS | (5) ACQUISITIONS | ||||||
Prosensa Holding N.V. | |||||||
On January 29 2015, the Company completed the acquisition of Prosensa Holding N.V. (Prosensa), a public limited liability company organized under the laws of the Netherlands, for a total purchase price of $751.5 million. In connection with the acquisition of Prosensa, the Company recognized transaction costs of $9.7 million, of which $2.7 million and $7.0 million, respectively, was recognized in the year ended December 31, 2014 and the three months ended March 31, 2015. | |||||||
Prosensa was an innovative biotechnology company engaged in the discovery and development of ribonucleic acid (RNA)-modulating therapeutics for the treatment of genetic disorders. Prosensa’s primary focus was on rare neuromuscular and neurodegenerative disorders with a large unmet medical need, including subsets of patients with Duchenne muscular dystrophy (DMD), myotonic dystrophy and Huntington’s disease. Prosensa’s clinical portfolio of RNA-based product candidates was focused on the treatment of DMD. Each of Prosensa’s DMD compounds has been granted orphan drug status in the United States (the U.S.) and the European Union (the EU). Prosensa’s lead product, drisapersen, is currently under a rolling review as part of a rolling new drug application (NDA) with the Food and Drug Administration (the FDA). On April 27, 2015, the Company announced the completion of the rolling submission of the NDA to the FDA. The Company expects to file a marketing authorization application (MAA) for drisapersen with the European Medicines Agency (the EMA) in the summer of 2015. | |||||||
In connection with its acquisition of Prosensa, the Company made cash payments totaling $680.1 million which were comprised of $620.7 million for approximately 96.8% of Prosensa’s ordinary shares (the Prosensa Shares), $38.6 million for the options that vested pursuant to the Company’s tender offer for the Prosensa Shares and $20.8 million to the remaining Prosensa shareholders that did not tender their shares under the tender offer. Additionally, for each Prosensa Share, the Company issued one non-transferable contingent value right (the CVR), which represents the contractual right to receive a cash payment of up to $4.14 per Prosensa Share, or approximately $160.0 million (undiscounted), upon the achievement of certain product approval milestones. The fair value of the CVRs and acquired in-process research and development (IPR&D) on the acquisition date was $71.4 million and $772.8 million, respectively. The acquisition date fair value of the CVRs and IPR&D was estimated by applying a probability-based income approach utilizing an appropriate discount rate. Key assumptions include a discount rate and various probability factors. See Note 15 to these Condensed Consolidated Financial Statements for additional discussion regarding fair value measurements of the CVRs which is included in contingent acquisition consideration payable. | |||||||
The following table presents the allocation of the purchase consideration for the Prosensa acquisition, including the CVRs, based on fair value. | |||||||
Cash and cash equivalents | $ | 141,669 | |||||
Trade accounts receivable | 3,086 | ||||||
Other current assets | 1,537 | ||||||
Property, plant and equipment | 2,683 | ||||||
Intangible assets | 497 | ||||||
Other assets | 104 | ||||||
Acquired IPR&D | 772,808 | ||||||
Total identifiable assets acquired | 922,384 | ||||||
Accounts payable and accrued expenses | (68,799 | ) | |||||
Debt assumed | (57,053 | ) | |||||
Deferred tax liability | (193,202 | ) | |||||
Total liabilities assumed | (319,054 | ) | |||||
Net identifiable assets acquired | 603,330 | ||||||
Goodwill | 148,134 | ||||||
Net assets acquired | $ | 751,464 | |||||
A substantial portion of the assets acquired consisted of IPR&D related to Prosensa’s product candidates drisapersen and exons PRO 044 and PRO 045, which are considered to be indefinite-lived assets until completion or abandonment of the associated research and development (R&D) efforts. The Company determined that the estimated acquisition-date fair value of the intangible assets related to drisapersen and Prosensa’s other primary product candidates, PRO 044 and PRO-045 was $731.8 million, $16.9 million and $24.1 million, respectively. | |||||||
The deferred tax liability relates to the tax impact of future amortization or possible impairments associated with the identified intangible assets acquired, which are not deductible for tax purposes. | |||||||
Prosensa’s results of operations prior to and since the acquisition date are insignificant to the Company’s Condensed Consolidated Financial Statements. | |||||||
See Note 10 to these Condensed Consolidated Financial Statements for further discussion of the indefinite-lived intangible assets. | |||||||
San Rafael Corporate Center | |||||||
In March 2014, the Company completed the acquisition of the real estate commonly known as the San Rafael Corporate Center (SRCC), located in San Rafael, California. SRCC is a multi-building, commercial property where, prior to the acquisition, the Company was leasing a certain portion of the space for its headquarters and related operating activities. The purpose of this acquisition is to allow for future expansion of the Company’s corporate headquarters to accommodate anticipated headcount growth. The acquisition of SRCC has been accounted for as a business combination because the building and the in-place leases met the definition of a business in Accounting Standards Codification 805 (ASC 805), Business Combinations. The fair value of the consideration paid for SRCC was $116.5 million, all of which was paid in cash, which was held in escrow as of December 31, 2013. | |||||||
The following table summarizes the estimated fair values of assets acquired as of the date of acquisition: | |||||||
Estimated | Estimated | ||||||
Fair Value | Useful Lives | ||||||
Building and improvements | $ | 94,414 | 50 years | ||||
Land | 14,565 | ||||||
Land improvements | 3,616 | 10 years | |||||
Intangible assets | 3,905 | Remaining | |||||
lease terms | |||||||
Total identifiable net assets | $ | 116,500 | |||||
The fair values assigned to tangible and identifiable intangible assets acquired are based on management’s estimates and assumptions using the information that was available as of the date of the acquisition. The Company believes that the information provides a reasonable basis for estimating the fair values of assets acquired. | |||||||
The following table sets forth the fair value of the components of the identifiable intangible assets acquired by asset class as of the date of acquisition: | |||||||
Above market leases | $ | 351 | |||||
In-place leases | 3,554 | ||||||
Total intangible assets subject to amortization | $ | 3,905 | |||||
The value of any in-place leases is estimated to be equal to the property owners’ avoidance of costs necessary to release the property for a lease term equal to the remaining primary in-place lease term and the value of investment-grade tenancy, which is derived by estimating, based on a review of the market, the cost to be borne by a property owner to replicate a market lease for the remaining in-place term. These costs consist of: (i) rent lost during downtime (e.g., assumed periods of vacancy), (ii) estimated expenses that would be incurred by the property owner during periods of vacancy, (iii) rent concessions (e.g., free rent), (iv) leasing commissions and (v) tenant improvement allowances. The Company determined these values using management’s estimates along with third-party appraisals. The Company will amortize the capitalized value of in-place lease intangible assets to expense over the remaining initial term of each lease. The Company will amortize the capitalized value of above market leases to expense over the remaining lives of the underlying leases. | |||||||
The amount of third-party tenant revenue (included in the line item Royalty, License and Other Revenues) included in the Company’s Consolidated Statements of Comprehensive Loss for the three months ended March 31, 2015, was $1.0 million, compared to $0.4 million for the three months ended March 31, 2014. The amount of net income/loss from third-party tenants for the three months ended March 31, 2015 and 2014, was insignificant to the Company’s Consolidated Statement of Comprehensive Loss. | |||||||
SRCC’s results of operations prior to the acquisition were insignificant to the Company’s Condensed Consolidated Financial Statements. | |||||||
Included in Selling, General and Administrative (SG&A) expenses during the three months ended March 31, 2014 are transaction costs incurred in connection with the acquisition of SRCC of $0.2 million. The Company recognized a gain of $8.8 million in the three months ended March 31, 2014, due to the early termination of the Company’s pre-existing lease and the realization of the remaining balance in deferred rent and the reversal of the related asset retirement obligation upon acquisition of the SRCC. $2.7 million and $6.1 million of the gain were included in SG&A and R&D expenses, respectively, which is consistent with the Company’s allocation practices for facility costs for this previously leased space. |
STOCKHOLDERS_EQUITY
STOCKHOLDERS' EQUITY | 3 Months Ended |
Mar. 31, 2015 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | (6) STOCKHOLDERS’ EQUITY |
In January 2015, the Company sold 9,775,000 shares of its common stock at a price of $93.25 per share in an underwritten public offering pursuant to an effective registration statement previously filed with the SEC. The Company received net proceeds of approximately $888.3 million from this public offering after underwriter’s discount and offering costs. |
NET_LOSS_PER_COMMON_SHARE
NET LOSS PER COMMON SHARE | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Earnings Per Share [Abstract] | |||||||||
NET LOSS PER COMMON SHARE | (7) NET LOSS PER COMMON SHARE | ||||||||
Potentially issuable shares of common stock include shares issuable upon the exercise of outstanding employee stock option awards, common stock issuable under the Company’s Amended and Restated 2006 ESPP, unvested restricted stock, common stock held by the Company’s Nonqualified Deferred Compensation Plan (the NQDC) and contingent issuances of common stock related to convertible debt. | |||||||||
The following table sets forth the computation of basic and diluted earnings per common share (in thousands of common shares): | |||||||||
Three Months Ended March 31, | |||||||||
2015 | 2014 | ||||||||
Numerator: | |||||||||
Net loss, basic | $ | (67,501 | ) | $ | (38,115 | ) | |||
Gain on Company common stock issued to the NQDC | — | (374 | ) | ||||||
Net loss, diluted | $ | (67,501 | ) | $ | (38,489 | ) | |||
Denominator: | |||||||||
Weighted-average common shares outstanding, basic | 157,612 | 143,983 | |||||||
Effect of dilutive securities: | |||||||||
Common stock issued to the NQDC | — | 174 | |||||||
Weighted-average common shares outstanding, diluted | 157,612 | 144,157 | |||||||
Net loss per common share, basic | $ | (0.43 | ) | $ | (0.26 | ) | |||
Net loss per common share, diluted | $ | (0.43 | ) | $ | (0.27 | ) | |||
In addition to the equity instruments included in the table above, the table below presents potential shares of common stock that were excluded from the computation as they were anti-dilutive using the treasury stock method (in thousands of common shares): | |||||||||
Three Months Ended March 31, | |||||||||
2015 | 2014 | ||||||||
Options to purchase common stock | 11,109 | 12,444 | |||||||
Common stock issuable under the 2017 Notes | 1,567 | 3,047 | |||||||
Common stock issuable under the 2018 and 2020 Notes | 7,966 | 7,966 | |||||||
Unvested restricted stock units | 1,557 | 1,326 | |||||||
Potentially issuable common stock for ESPP purchases | 223 | 209 | |||||||
Common stock held by the NQDC | 213 | — | |||||||
Total number of potentially issuable shares | 22,635 | 24,992 | |||||||
The effect of the Company’s 0.75% senior subordinated convertible notes due in 2018 (the 2018 Notes) and the Company’s 1.50% senior subordinated convertible notes due in 2020 (the 2020 Notes and together with the 2018 Notes, the Notes) was excluded from the diluted net loss per common share since they may be settled in cash or shares at the Company’s option and the Company’s current intention is to settle up to the principal amount of the converted notes in cash and any excess conversion value (conversion spread) in shares of the Company’s common stock. As a result, during the three months ended March 31, 2014 the 2018 Notes and the 2020 Notes had no effect on diluted net loss per share until the Company’s stock price exceeded the conversion price of $94.15 per share for the Notes. Although the Company’s stock price exceeded the conversion price at March 31, 2105, the potential shares issuable under the Notes were excluded from the calculation of diluted loss per share as they were anti-dilutive using the if-converted method. | |||||||||
INVESTMENTS
INVESTMENTS | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Investments Schedule [Abstract] | |||||||||||||||||
INVESTMENTS | (8) INVESTMENTS | ||||||||||||||||
All investments were classified as available-for-sale at March 31, 2015 and December 31, 2014. The amortized cost, gross unrealized holding gains or losses, and fair value of the Company’s available-for-sale securities by major security type at March 31, 2015 and December 31, 2014 are summarized in the tables below: | |||||||||||||||||
Amortized Cost | Gross | Gross | Aggregate Fair | ||||||||||||||
Unrealized | Unrealized | Value at March 31, 2015 | |||||||||||||||
Holding Gains | Holding Losses | ||||||||||||||||
Certificates of deposit | $ | 69,871 | $ | 1 | $ | — | $ | 69,872 | |||||||||
Corporate debt securities | 147,537 | 129 | — | 147,666 | |||||||||||||
Commercial paper | 21,354 | — | — | 21,354 | |||||||||||||
U.S. government agency securities | 93,012 | 31 | — | 93,043 | |||||||||||||
Greek government-issued bonds | 50 | 54 | — | 104 | |||||||||||||
Total | $ | 331,824 | $ | 215 | $ | — | $ | 332,039 | |||||||||
Amortized Cost | Gross | Gross | Aggregate Fair | ||||||||||||||
Unrealized | Unrealized | Value at | |||||||||||||||
Holding Gains | Holding Losses | 31-Dec-14 | |||||||||||||||
Certificates of deposit | $ | 72,302 | $ | 1 | $ | — | $ | 72,303 | |||||||||
Corporate debt securities | 95,478 | — | (342 | ) | 95,136 | ||||||||||||
Greek government-issued bonds | 50 | 73 | — | 123 | |||||||||||||
Total | $ | 167,830 | $ | 74 | $ | (342 | ) | $ | 167,562 | ||||||||
The Company has two investments in marketable equity securities measured using quoted prices in their respective active markets and certain interest in non-marketable equity securities that are collectively considered strategic investments. As of March 31, 2015, the fair value of the Company’s marketable equity securities was $41.8 million, which included an unrealized gain of $29.3 million. The carrying cost of the non-marketable securities was $3.1 million at March 31, 2015. As of December 31, 2014, the fair value of the Company’s marketable equity securities was $30.8 million, which included an unrealized gain of $18.3 million. These investments are recorded in Other Assets in the Company’s Condensed Consolidated Balance Sheets. | |||||||||||||||||
The fair values of available-for-sale securities by contractual maturity were as follows: | |||||||||||||||||
March 31, | December 31, | ||||||||||||||||
2015 | 2014 | ||||||||||||||||
Maturing in one year or less | $ | 108,119 | $ | 69,706 | |||||||||||||
Maturing after one year through five years | 223,920 | 97,856 | |||||||||||||||
Total | $ | 332,039 | $ | 167,562 | |||||||||||||
Impairment assessments are made at the individual security level each reporting period. When the fair value of an investment is less than its cost at the balance sheet date, a determination is made as to whether the impairment is other-than-temporary and, if it is other-than-temporary, an impairment loss is recognized in earnings equal to the difference between the investment’s amortized cost and fair value at such date. As of March 31, 2015, some of the Company’s investments were in an unrealized loss position. However, the Company has the ability and intent to hold all investments that have been in a continuous loss position until maturity or recovery, thus no other-than-temporary impairment is deemed to have occurred. | |||||||||||||||||
See Note 15 to these Condensed Consolidated Financial Statements for additional discussion regarding the fair value of the Company’s available-for-sale securities. | |||||||||||||||||
GOODWILL
GOODWILL | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Goodwill And Intangible Assets Disclosure [Abstract] | |||||
GOODWILL | (9) GOODWILL | ||||
Goodwill is tested for impairment on an annual basis and between annual tests if the Company becomes aware of any events occurring or changes in the circumstances that would indicate a reduction in the fair value of the goodwill below its carrying amount. | |||||
The following table represents the changes in goodwill for the three months ended March 31, 2015: | |||||
Balance at December 31, 2014 | $ | 54,258 | |||
Addition of goodwill related to the acquisition of Prosensa | 148,134 | ||||
Balance at March 31, 2015 | $ | 202,392 | |||
INTANGIBLE_ASSETS
INTANGIBLE ASSETS | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | |||||||||
INTANGIBLE ASSETS | (10) INTANGIBLE ASSETS | ||||||||
Intangible assets consisted of the following: | |||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
Intangible assets: | |||||||||
Finite-lived intangible assets | $ | 123,836 | $ | 123,365 | |||||
Indefinite-lived intangible assets | 847,238 | 74,430 | |||||||
Gross intangible assets: | 971,074 | 197,795 | |||||||
Less: Accumulated amortization | (44,178 | ) | (41,217 | ) | |||||
Net carrying value | $ | 926,896 | $ | 156,578 | |||||
Indefinite-Lived Intangible Assets | |||||||||
IPR&D assets are considered to be indefinite-lived until the completion or abandonment of the associated R&D efforts. During the period the assets are considered indefinite-lived, they will not be amortized but will be tested for impairment on an annual basis and between annual tests if the Company becomes aware of any events occurring or changes in circumstances that would indicate a reduction in the fair value of the IPR&D assets below their respective carrying amounts. If and when development is complete, which generally occurs if and when regulatory approval to market a product is obtained, the associated assets would be deemed finite-lived and would then be amortized based on their respective estimated useful lives at that point in time. | |||||||||
See Note 6 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 for additional information related to the Company’s Intangible Assets. |
PROPERTY_PLANT_AND_EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Property Plant And Equipment [Abstract] | |||||||||
PROPERTY, PLANT AND EQUIPMENT | (11) PROPERTY, PLANT AND EQUIPMENT | ||||||||
Property, plant and equipment, net consisted of the following: | |||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
Leasehold improvements | $ | 40,733 | $ | 39,297 | |||||
Building and improvements | 339,161 | 335,991 | |||||||
Manufacturing and laboratory equipment | 129,348 | 124,564 | |||||||
Computer hardware and software | 99,879 | 97,032 | |||||||
Furniture and equipment | 14,874 | 13,717 | |||||||
Land improvements | 4,106 | 4,106 | |||||||
Land | 29,357 | 29,358 | |||||||
Construction-in-progress | 120,971 | 108,340 | |||||||
778,429 | 752,405 | ||||||||
Less: Accumulated depreciation | (240,312 | ) | (228,889 | ) | |||||
Total property, plant and equipment, net | $ | 538,117 | $ | 523,516 | |||||
Depreciation expense for the three months ended March 31, 2015 and 2014 was $11.5 million and $9.6 million, respectively, of which $3.6 million and $2.9 million, respectively, was capitalized into inventory. | |||||||||
Capitalized interest related to the Company’s property, plant and equipment purchases for each of the three months ended March 31, 2015 and 2014 was insignificant. |
SUPPLEMENTAL_BALANCE_SHEET_INF
SUPPLEMENTAL BALANCE SHEET INFORMATION | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |||||||||
SUPPLEMENTAL BALANCE SHEET INFORMATION | (12) SUPPLEMENTAL BALANCE SHEET INFORMATION | ||||||||
Inventory consisted of the following: | |||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
Raw materials | $ | 21,690 | $ | 22,488 | |||||
Work-in-process | 124,192 | 114,393 | |||||||
Finished goods | 76,951 | 62,571 | |||||||
Total inventory | $ | 222,833 | $ | 199,452 | |||||
Other Current Assets consisted of the following: | |||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
Prepaid expenses | 39,159 | 35,390 | |||||||
Short-term forward currency exchange contract assets | 18,337 | 10,513 | |||||||
Promissory notes receivable, net | 3,326 | 46,946 | |||||||
Restricted investments | 7,131 | 2,354 | |||||||
Convertible promissory note conversion option | — | 2,386 | |||||||
Other receivables | 10,983 | 9,733 | |||||||
Other | 5,329 | 4,513 | |||||||
Total other current assets | $ | 84,265 | $ | 111,835 | |||||
Other Assets consisted of the following: | |||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
Deposits | 11,045 | 12,021 | |||||||
Deferred debt offering costs | 10,911 | 11,763 | |||||||
Strategic investments | 44,918 | 30,811 | |||||||
Long-term forward foreign currency exchange contract assets | 7,391 | 5,387 | |||||||
Other | 6,067 | 5,299 | |||||||
Total other assets | $ | 80,332 | $ | 65,281 | |||||
Accounts payable and accrued liabilities consisted of the following: | |||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
Accounts payable | $ | 23,606 | $ | 32,779 | |||||
Accrued accounts payable | 106,462 | 98,490 | |||||||
Accrued compensation expense | 32,461 | 45,479 | |||||||
Accrued vacation expense | 15,871 | 12,540 | |||||||
Accrued rebates payable | 17,173 | 14,859 | |||||||
Accrued royalties payable | 7,207 | 9,050 | |||||||
Value added taxes payable | 5,730 | 5,479 | |||||||
Other accrued operating expenses | 8,721 | 8,244 | |||||||
Other | 12,981 | 4,924 | |||||||
Total accounts payable and accrued liabilities | $ | 230,212 | $ | 231,844 | |||||
CONVERTIBLE_DEBT
CONVERTIBLE DEBT | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Debt Disclosure [Abstract] | |||||||||
CONVERTIBLE DEBT | (13) CONVERTIBLE DEBT | ||||||||
The following table summarizes information regarding the Company’s convertible debt: | |||||||||
31-Mar-15 | 31-Dec-14 | ||||||||
Convertible Notes due 2020, net of unamortized discount of | $ | 300,786 | $ | 297,955 | |||||
$74,214 and $77,045, at March 31, 2015 and | |||||||||
December 31, 2014, respectively | |||||||||
Convertible Notes due 2018, net of unamortized discount of | 322,807 | 319,463 | |||||||
$52,193 and $55,537, at March 31, 2015 and | |||||||||
December 31, 2014, respectively | |||||||||
Convertible Notes due 2017 | 31,898 | 40,558 | |||||||
Total convertible debt, net of unamortized discount | $ | 655,491 | $ | 657,976 | |||||
Fair value of fixed rate convertible debt | |||||||||
Convertible Notes due in 2020 (1) | $ | 568,444 | $ | 456,360 | |||||
Convertible Notes due in 2018 (1) | 555,994 | 442,448 | |||||||
Convertible Notes due in 2017 (1) | 195,370 | 180,984 | |||||||
Total | $ | 1,319,808 | $ | 1,079,792 | |||||
-1 | The fair value of the Company’s fixed rate convertible debt is based on open market trades and is classified as Level 1 in the fair value hierarchy. | ||||||||
Interest expense on the Company’s convertible debt was comprised of the following: | |||||||||
Three Months Ended March 31, | |||||||||
2015 | 2014 | ||||||||
Coupon interest | $ | 2,462 | $ | 2,408 | |||||
Amortization of issuance costs | 826 | 843 | |||||||
Accretion of debt discount | 6,174 | 5,855 | |||||||
Total interest expense on convertible debt | $ | 9,462 | $ | 9,106 | |||||
During the three months ended March 31, 2015, the Company entered into separate agreements with three existing holders of its senior subordinated convertible notes due in 2017 (the 2017 Notes) pursuant to which such holders converted $8.1 million in aggregate principal amount of the 2017 Notes into 399,469 shares of the Company’s common stock. In addition to issuing the requisite number of shares of the Company’s common stock, the Company also made varying cash payments to the holder totaling $0.2 million in aggregate, of which $0.2 million was recognized in total as Debt Conversion Expense on the Condensed Consolidated Statement of Comprehensive Loss for the three months ended March 31, 2015. | |||||||||
See Note 13 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 for additional information related to the Company’s Convertible Debt. | |||||||||
DERIVATIVE_INSTRUMENTS_AND_HED
DERIVATIVE INSTRUMENTS AND HEDGING STRATEGIES | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |||||||||||||
DERIVATIVE INSTRUMENTS AND HEDGING STRATEGIES | (14) DERIVATIVE INSTRUMENTS AND HEDGING STRATEGIES | ||||||||||||
The Company uses forward foreign currency exchange contracts to hedge certain operational exposures resulting from potential changes in foreign currency exchange rates. Such exposures result from portions of the Company’s forecasted revenues and operating expenses being denominated in currencies other than the U.S. dollar, primarily the Euro, the British Pound and the Brazilian Real. | |||||||||||||
The Company designates certain of these forward foreign currency exchange contracts as hedging instruments and enters into some forward foreign currency exchange contracts that are considered to be economic hedges that are not designated as hedging instruments. Whether designated or undesignated, these forward foreign currency exchange contracts protect against the reduction in value of forecasted foreign currency cash flows resulting from product revenues, royalty revenues, operating expenses and asset or liability positions designated in currencies other than the U.S. dollar. The fair values of forward foreign currency exchange contracts are estimated using current exchange rates and interest rates, and take into consideration the current creditworthiness of the counterparties or the Company, as applicable. Details of the specific instruments used by the Company to hedge its exposure to foreign currency exchange rate fluctuations are discussed below. See Note 15 to these Condensed Consolidated Financial Statements for additional discussion regarding the fair value of forward foreign currency exchange contracts. | |||||||||||||
At March 31, 2015, the Company had 94 forward foreign currency exchange contracts outstanding to sell a total of 131.6 million Euros and seven forward foreign currency exchange contracts outstanding to purchase 20.0 million Euros with expiration dates ranging from April 2015 through March 2018. These hedges were entered into in order to protect against the fluctuations in revenue associated with Euro-denominated product sales and operating expenses. The Company has formally designated these forward foreign currency exchange contracts as cash flow hedges and expects them to be highly effective in offsetting fluctuations in revenues denominated in Euros related to changes in foreign currency exchange rates. | |||||||||||||
The Company also enters into forward foreign currency exchange contracts that are not designated as hedges for accounting purposes. The changes in fair value of these forward foreign currency exchange contracts are included as a part of SG&A expense in the Company’s Condensed Consolidated Statements of Comprehensive Loss. At March 31, 2015, the Company had one outstanding forward foreign currency exchange contract to sell 42.1 million Euros and one outstanding forward foreign currency exchange contract to sell 6.4 million British Pounds, both of which were not designated as a hedge for accounting purposes and matured on April 30, 2015. | |||||||||||||
The maximum length of time over which the Company is hedging its exposure to the reduction in value of forecasted foreign currency revenues through forward foreign currency exchange contracts is through March 2018. Over the next twelve months, the Company expects to reclassify $18.9 million from accumulated other comprehensive income to earnings as the forecasted revenue transactions occur. | |||||||||||||
The fair value carrying amounts of the Company’s derivative instruments were as follows: | |||||||||||||
Asset Derivatives | Liability Derivatives | ||||||||||||
31-Mar-15 | 31-Mar-15 | ||||||||||||
Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | ||||||||||
Derivatives designated as hedging instruments: | |||||||||||||
Forward foreign currency exchange contracts | Other current assets | $ | 18,171 | Accounts payable and accrued liabilities | $ | — | |||||||
Forward foreign currency exchange contracts | Other assets | 7,391 | Other long- term liabilities | — | |||||||||
Total | $ | 25,562 | $ | — | |||||||||
Derivatives not designated as hedging | |||||||||||||
instruments: | |||||||||||||
Forward foreign currency exchange contracts | Other current assets | $ | 166 | Other long- term liabilities | $ | 805 | |||||||
Total | 166 | 805 | |||||||||||
Total value of derivative contracts | $ | 25,728 | $ | 805 | |||||||||
Asset Derivatives | Liability Derivatives | ||||||||||||
31-Dec-14 | 31-Dec-14 | ||||||||||||
Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | ||||||||||
Derivatives designated as hedging instruments: | |||||||||||||
Forward foreign currency exchange contracts | Other current assets | $ | 10,206 | Accounts payable and accrued liabilities | $ | — | |||||||
Forward foreign currency exchange contracts | Other assets | 5,387 | Other long- term liabilities | — | |||||||||
Total | $ | 15,593 | $ | — | |||||||||
Derivatives not designated as hedging | |||||||||||||
instruments: | |||||||||||||
Forward foreign currency exchange contracts | Other current assets | $ | 307 | Accounts payable and accrued liabilities | $ | 12 | |||||||
Total | 307 | 12 | |||||||||||
Total value of derivative contracts | $ | 15,900 | $ | 12 | |||||||||
The effect of the Company’s derivative instruments on the Condensed Consolidated Financial Statements for the three months ended March 31, 2015 and 2014 was as follows: | |||||||||||||
Forward Foreign Currency Exchange Contracts | |||||||||||||
Three Months Ended March 31, | |||||||||||||
2015 | 2014 | ||||||||||||
Derivatives Designated as Hedging Instruments: | |||||||||||||
Net gain recognized in Other Comprehensive Income (OCI) (1) | $ | 13,776 | $ | 1,396 | |||||||||
Net gain reclassified from accumulated OCI into income (2) | 4,739 | (567 | ) | ||||||||||
Net gain (loss) recognized in net loss (3) | 141 | (121 | ) | ||||||||||
Derivatives Not Designated as Hedging Instruments: | |||||||||||||
Net gain recognized in net loss(4) | $ | 7,800 | $ | 56 | |||||||||
-1 | Net change in the fair value of the effective portion classified as OCI. | ||||||||||||
-2 | Effective portion classified as net product revenue. | ||||||||||||
-3 | Ineffective portion and amount excluded from effectiveness testing classified as SG&A expense. | ||||||||||||
-4 | Classified as SG&A expense. | ||||||||||||
At March 31, 2015 and December 31, 2014, accumulated other comprehensive income before taxes associated with forward foreign currency exchange contracts qualifying for hedge accounting treatment was a gain of $24.5 million and a gain of $15.9 million, respectively. | |||||||||||||
The Company is exposed to counterparty credit risk on all of its derivative financial instruments. The Company has established and maintains strict counterparty credit guidelines and enters into hedges only with financial institutions that are investment grade or better to minimize the Company’s exposure to potential defaults. The Company does not require collateral to be pledged under these agreements. |
FAIR_VALUE_MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
FAIR VALUE MEASUREMENTS | (15) FAIR VALUE MEASUREMENTS | ||||||||||||||||
The Company measures certain financial assets and liabilities at fair value on a recurring basis, including available-for-sale fixed income securities and foreign currency derivatives. The tables below present the fair value of these financial assets and liabilities determined using the following input levels. | |||||||||||||||||
Fair Value Measurements at March 31, 2015 | |||||||||||||||||
Quoted Price in | Significant Other | Significant | Total | ||||||||||||||
Active Markets | Observable | Unobservable | |||||||||||||||
For Identical | Inputs | Inputs | |||||||||||||||
Assets | (Level 2) | (Level 3) | |||||||||||||||
(Level 1) | |||||||||||||||||
Assets: | |||||||||||||||||
Cash and cash equivalents: | |||||||||||||||||
Overnight deposits | $ | 833,545 | $ | — | $ | — | $ | 833,545 | |||||||||
Money market instruments | — | 67,025 | — | 67,025 | |||||||||||||
Total cash and cash equivalents | 833,545 | 67,025 | — | 900,570 | |||||||||||||
Available-for-sale securities: | |||||||||||||||||
Short-term: | |||||||||||||||||
Certificates of deposit | — | 57,176 | — | 57,176 | |||||||||||||
Corporate debt securities | — | 15,546 | — | 15,546 | |||||||||||||
Commercial paper | — | 21,354 | — | 21,354 | |||||||||||||
U.S. government agency securities | — | 14,043 | — | 14,043 | |||||||||||||
Long-term: | |||||||||||||||||
Certificates of deposit | — | 12,696 | — | 12,696 | |||||||||||||
Corporate debt securities | — | 132,120 | — | 132,120 | |||||||||||||
U.S. government agency securities | — | 79,000 | — | 79,000 | |||||||||||||
Greek government-issued bonds | — | 104 | — | 104 | |||||||||||||
Total available-for-sale securities | — | 332,039 | — | 332,039 | |||||||||||||
Other Current Assets: | |||||||||||||||||
Nonqualified Deferred Compensation Plan assets | — | 353 | — | 353 | |||||||||||||
Forward foreign currency exchange contract(1) | — | 18,337 | — | 18,337 | |||||||||||||
Restricted investments (2) | — | 7,131 | — | 7,131 | |||||||||||||
Total other current assets | — | 25,821 | — | 25,821 | |||||||||||||
Other Assets: | |||||||||||||||||
Nonqualified Deferred Compensation Plan assets | — | 5,884 | — | 5,884 | |||||||||||||
Forward foreign currency exchange contract(1) | — | 7,391 | — | 7,391 | |||||||||||||
Strategic investment (4) | 41,809 | — | — | 41,809 | |||||||||||||
Total other assets | 41,809 | 13,275 | — | 55,084 | |||||||||||||
Total assets | $ | 875,354 | $ | 438,160 | $ | — | $ | 1,313,514 | |||||||||
Liabilities: | |||||||||||||||||
Current Liabilities: | |||||||||||||||||
Nonqualified Deferred Compensation Plan liability | $ | 1,198 | $ | 353 | $ | — | $ | 1,551 | |||||||||
Contingent acquisition consideration payable | — | — | 75,294 | 75,294 | |||||||||||||
Total current liabilities | 1,198 | 353 | 75,294 | 76,845 | |||||||||||||
Other long-term liabilities: | |||||||||||||||||
Nonqualified Deferred Compensation Plan liability | 25,402 | 5,884 | — | 31,286 | |||||||||||||
Forward foreign currency exchange contract (1) | — | 805 | — | 805 | |||||||||||||
Contingent acquisition consideration payable | — | — | 39,052 | 39,052 | |||||||||||||
Total other long-term liabilities | 25,402 | 6,689 | 39,052 | 71,143 | |||||||||||||
Total liabilities | $ | 26,600 | $ | 7,042 | $ | 114,346 | $ | 147,988 | |||||||||
Fair Value Measurements at December 31, 2014 | |||||||||||||||||
Quoted Price in | Significant Other | Significant | Total | ||||||||||||||
Active Markets | Observable | Unobservable | |||||||||||||||
For Identical | Inputs | Inputs | |||||||||||||||
Assets | (Level 2) | (Level 3) | |||||||||||||||
(Level 1) | |||||||||||||||||
Assets: | |||||||||||||||||
Cash and cash equivalents: | |||||||||||||||||
Overnight deposits | $ | 225,159 | $ | — | $ | — | $ | 225,159 | |||||||||
Money market instruments | — | 650,327 | — | 650,327 | |||||||||||||
Total cash and cash equivalents | 225,159 | 650,327 | — | 875,486 | |||||||||||||
Available-for-sale securities: | |||||||||||||||||
Short-term: | |||||||||||||||||
Certificates of deposit | — | 54,174 | — | 54,174 | |||||||||||||
Corporate debt securities | — | 15,532 | — | 15,532 | |||||||||||||
Long-term: | |||||||||||||||||
Certificates of deposit | — | 18,129 | — | 18,129 | |||||||||||||
Corporate debt securities | — | 79,604 | — | 79,604 | |||||||||||||
Greek government-issued bonds | — | 123 | — | 123 | |||||||||||||
Total available-for-sale securities | — | 167,562 | — | 167,562 | |||||||||||||
Other Current Assets: | |||||||||||||||||
Nonqualified Deferred Compensation Plan assets | — | 514 | — | 514 | |||||||||||||
Forward foreign currency exchange contract(1) | — | 10,513 | — | 10,513 | |||||||||||||
Restricted investments (2) | — | 2,354 | — | 2,354 | |||||||||||||
Embedded derivative (3) | — | — | 2,386 | 2,386 | |||||||||||||
Total other current assets | — | 13,381 | 2,386 | 15,767 | |||||||||||||
Other Assets: | |||||||||||||||||
Nonqualified Deferred Compensation Plan assets | — | 5,112 | — | 5,112 | |||||||||||||
Restricted investments (2) | — | 5,387 | — | 5,387 | |||||||||||||
Strategic investment (4) | 30,811 | — | — | 30,811 | |||||||||||||
Total other assets | 30,811 | 10,499 | — | 41,310 | |||||||||||||
Total assets | $ | 255,970 | $ | 841,769 | $ | 2,386 | $ | 1,100,125 | |||||||||
Liabilities: | |||||||||||||||||
Current Liabilities: | |||||||||||||||||
Nonqualified Deferred Compensation Plan liability | $ | 1,790 | $ | 514 | $ | — | $ | 2,304 | |||||||||
Forward foreign currency exchange contract(1) | — | 12 | — | 12 | |||||||||||||
Contingent acquisition consideration payable | — | — | 3,895 | 3,895 | |||||||||||||
Total current liabilities | 1,790 | 526 | 3,895 | 6,211 | |||||||||||||
Other long-term liabilities: | |||||||||||||||||
Nonqualified Deferred Compensation Plan liability | 18,453 | 5,112 | — | 23,565 | |||||||||||||
Contingent acquisition consideration payable | — | — | 38,767 | 38,767 | |||||||||||||
Total other long-term liabilities | 18,453 | 5,112 | 38,767 | 62,332 | |||||||||||||
Total liabilities | $ | 20,243 | $ | 5,638 | $ | 42,662 | $ | 68,543 | |||||||||
-1 | See Note 14 to these Condensed Consolidated Financial Statements for further information regarding the derivative instruments. | ||||||||||||||||
-2 | The restricted investments at March 31, 2015 and December 31, 2014 secure the Company’s irrevocable standby letter of credit obtained in connection with certain commercial agreements. | ||||||||||||||||
-3 | The embedded derivative at December 31, 2014 represents the fair value of the conversion feature of a promissory note which may be settled in the issuer’s underlying shares. | ||||||||||||||||
-4 | The Company has investments in marketable equity securities measured using quoted prices in an active market that are considered strategic investments. See Note 8 to these Condensed Consolidated Financial Statements for additional discussion regarding the Company’s strategic investments. | ||||||||||||||||
There were no transfers between levels during the three months ended March 31, 2015. | |||||||||||||||||
The Company’s Level 2 securities are valued using third-party pricing sources. The pricing services utilize industry standard valuation models, including both income and market-based approaches, for which all significant inputs are observable, either directly or indirectly, to estimate fair value. These inputs include reported trades of and broker/dealer quotes on the same or similar securities, issuer credit spreads, benchmark securities, prepayment/default projections based on historical data and other observable inputs. | |||||||||||||||||
The Company validates the prices provided by its third-party pricing services by understanding the models used, obtaining market values from other pricing sources, analyzing pricing data in certain instances and confirming those securities traded in active markets. See Note 8 to these Condensed Consolidated Financial Statements for further information regarding the Company’s financial instruments. | |||||||||||||||||
Liabilities measured at fair value using Level 3 inputs were comprised of contingent acquisition consideration payable and asset retirement obligations. | |||||||||||||||||
The Company’s contingent acquisition consideration payable is estimated using a probability-based income approach utilizing an appropriate discount rate. Key assumptions used by management to estimate the fair value of contingent acquisition consideration payable include estimated probabilities, the estimated timing of when a milestone may be attained and assumed discount periods and rates. Subsequent changes in the fair value of the contingent acquisition consideration payable, resulting from management’s revision of key assumptions, will be recorded in Intangible Asset Amortization and Contingent Consideration in the Company’s Condensed Consolidated Statements of Comprehensive Loss. The probability-based income approach used by management to estimate the fair value of the contingent acquisition consideration is most sensitive to changes in the estimated probabilities. | |||||||||||||||||
Contingent acquisition consideration payable at December 31, 2014 | $ | 42,662 | |||||||||||||||
Addition of contingent consideration payable related to | 71,402 | ||||||||||||||||
the Prosensa acquisition (CVR) | |||||||||||||||||
Changes in the fair value of the contingent acquisition | 282 | ||||||||||||||||
consideration payable | |||||||||||||||||
Contingent acquisition consideration payable at March 31, 2015 | $ | 114,346 | |||||||||||||||
Under certain of the Company’s lease agreements, the Company is contractually obligated to return leased space to its original condition upon termination of the lease agreement. The Company records an asset retirement obligation liability and a corresponding capital asset in an amount equal to the estimated fair value of the obligation when estimable. In subsequent periods, for each such lease, the Company records Interest Expense to accrete the asset retirement obligation liability to full value and depreciates each capitalized asset retirement obligation asset, both over the term of the associated lease agreement. | |||||||||||||||||
Asset retirement obligations at December 31, 2014 | $ | 3,765 | |||||||||||||||
Accretion expense | 36 | ||||||||||||||||
Additions | 84 | ||||||||||||||||
Asset retirement obligations at March 31, 2015 | $ | 3,885 | |||||||||||||||
The Company acquired intangible assets as a result of various business acquisitions. The estimated fair value of these long-lived assets was measured using Level 3 inputs as of the acquisition date. | |||||||||||||||||
STOCKBASED_COMPENSATION
STOCK-BASED COMPENSATION | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||||||||
STOCK-BASED COMPENSATION | (16) STOCK-BASED COMPENSATION | ||||||||
The Company’s stock-based compensation plans include the Amended and Restated 2006 Share Incentive Plan (the Share Incentive Plan), the ESPP, the 2014 Inducement Plan and the 2012 Inducement Plan. The 2012 Inducement Plan expired in May 2013. The Company’s stock-based compensation plans are administered by the Compensation Committee of the Board of Directors, which selects persons to receive awards and determines the number of shares subject to each award and the terms, conditions, performance measures and other provisions of the award. See Note 16 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014, for additional information related to these stock-based compensation plans. | |||||||||
Determining the Fair Value of Stock Options and Stock Purchase Rights | |||||||||
The fair value of each option award is estimated on the date of grant using the Black-Scholes valuation model and the assumptions noted in the tables below. The expected life of options is based on observed historical exercise patterns. Groups of employees that have similar historical exercise patterns were considered separately for valuation purposes, but none were identified that had distinctly different exercise patterns as of March 31, 2015. The expected volatility of stock options is based upon the weighted average of the historical volatility of the Company’s common stock and the implied volatility of traded options on the Company’s common stock for fiscal periods in which there is sufficient trading volume in options on the Company’s common stock. The risk-free interest rate is based on the implied yield on a U.S. Treasury zero-coupon issue with a remaining term equal to the expected term of the option. The dividend yield reflects that the Company has not paid any cash dividends since inception and does not intend to pay any cash dividends in the foreseeable future. The assumptions used to estimate the per share fair value of stock options granted under the 2012 Inducement Plan and 2014 Inducement Plan and the Share Incentive Plan were as follows: | |||||||||
Three Months Ended March 31, | |||||||||
2015 | 2014 | ||||||||
Expected volatility | 44 – 45% | 44 – 45% | |||||||
Dividend yield | 0.00% | 0.00% | |||||||
Expected life | 7.0 years | 6.9 years | |||||||
Risk-free interest rate | 1.5 – 2.0% | 2.1 – 2.3% | |||||||
During the three months ended March 31, 2015, the Company granted 642,070 options with a weighted average fair value of $56.11 per option. | |||||||||
The Company did not issue any new stock purchase rights under the ESPP during the three months ended March 31, 2015. | |||||||||
Restricted Stock Unit Awards with Service-Based Vesting Conditions | |||||||||
Restricted stock units (RSUs) are generally subject to forfeiture if employment terminates prior to the release of vesting restrictions. The Company expenses the cost of the RSUs, which is determined to be the fair market value of the shares of common stock underlying the RSUs at the date of grant, ratably over the period during which the vesting restrictions lapse. During the three months ended March 31, 2015, the Company granted 825,900 RSUs with a weighted average fair market value of $120.95 per share. | |||||||||
Restricted Stock Unit Awards with Performance and Market-Based Vesting Conditions | |||||||||
During 2012 and 2011, pursuant to the approval of the Board of Directors (the Board), the Company granted 860,000 RSU awards with performance and market-based vesting conditions (the 2011/2012 Base RSUs) under the Share Incentive Plan and the 2012 Inducement Plan to certain executive officers. As of March 31, 2015, the 2011/2012 Base RSUs had a weighted-average grant date fair value of $34.66. The 2011/2012 Base RSUs will vest upon the achievement of specific performance goals (the Earned RSUs). The number of RSUs that will be awarded from the Earned RSUs will be calculated by multiplying the Earned RSUs by the Total Shareholder Return multiplier which could range from 75% to 125%. | |||||||||
Stock-based compensation expense for this award will be recognized over the remaining service period beginning in the period the Company determines the strategic performance goal or goals is probable of achievement. During the fourth quarter of 2014, management concluded that the achievement of the 2015 revenue performance goal was probable and began recognizing compensation expense related to the RSUs allocated to the revenue performance goal. During 2013, management concluded that regulatory approval of Vimizim was probable and began recognizing compensation expense related to the performance 2011/2012 Base RSUs allocated to the Vimizim performance goal. For the three months ended March 31, 2015 and 2014, the Company recorded $1.8 million and $0.6 million, respectively, of compensation expense related to these performance awards. | |||||||||
Restricted Stock Unit Awards with Performance Conditions | |||||||||
On March 3, 2015, pursuant to Board approval, the Company granted 58,300 RSU awards with performance-vesting conditions (the 2015 Base RSUs) under the Share Incentive Plan to certain executive officers. The vesting of the 2015 Base RSUs under this specific grant is contingent upon the achievement of a 2015 revenue target and a three-year service period. The number of RSUs that will be awarded from the 2015 Base RSUs upon achievement of the performance condition will be calculated by multiplying the 2015 Base RSUs by a revenue multiplier (determined based on the Company’s performance against the revenue target) which could range between 80% or 120%. The maximum number of RSUs that could vest if the performance condition is achieved and a revenue multiplier of 120% is applied is 69,960. | |||||||||
Stock-based compensation for these awards will be recognized over the service period beginning in the period the Company determines it is probable that the revenue target will be achieved. The cost of the 2015 Base RSUs was determined to be $108.36 per RSU, based on the fair value of the common stock underlying the 2015 Base RSUs on the grant date. Accordingly, because the Company’s management determined that attainment of the revenue target was probable as of March 31, 2015, the Company recognized $0.2 million of compensation expense related to this awards during the three months ended March 31, 2015. | |||||||||
Compensation expense included in the Company’s Condensed Consolidated Statements of Comprehensive Loss for all stock-based compensation arrangements was as follows: | |||||||||
Three Months Ended March 31, | |||||||||
2015 | 2014 | ||||||||
Cost of sales | $ | 1,348 | $ | 1,086 | |||||
R&D | 9,930 | 7,115 | |||||||
SG&A | 11,414 | 8,103 | |||||||
Total stock-based compensation expense | $ | 22,692 | $ | 16,304 | |||||
Stock-based compensation of $2.5 million and $2.1 million was capitalized into inventory, for the three months ended March 31, 2015 and 2014, respectively. Capitalized stock-based compensation is recognized as cost of sales when the related product is sold. |
COMPREHENSIVE_LOSS
COMPREHENSIVE LOSS | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Equity [Abstract] | |||||||||||||
COMPREHENSIVE LOSS | (17) COMPREHENSIVE LOSS | ||||||||||||
The following table summarizes amounts reclassified out of Accumulated Other Comprehensive Income/(Loss) (AOCI) and their effect on the Company’s Condensed Consolidated Statements of Comprehensive Loss for the three months ended March 31, 2015 and 2014. | |||||||||||||
Amount Reclassified from | |||||||||||||
AOCI Gain (Loss) | |||||||||||||
Three Months Ended March 31, | Consolidated Statement of | ||||||||||||
Details about AOCI Components | 2015 | 2014 | Operations Classification | ||||||||||
Gains (loss) on cash flow hedges: | |||||||||||||
Forward foreign currency exchange contracts | $ | 4,739 | $ | (887 | ) | Net product revenues | |||||||
— | 320 | Provision for income taxes | |||||||||||
$ | 4,739 | $ | (567 | ) | Net loss | ||||||||
The following table summarizes changes in the accumulated balances for each component of AOCI, including current period other comprehensive income and reclassifications out of AOCI, for the three months ended March 31, 2015 and 2014. | |||||||||||||
Three Months Ended March 31, 2015 | |||||||||||||
Before Tax | Tax (Expense) | Net-of-Tax | |||||||||||
Amount | Benefit | Amount | |||||||||||
AOCI balance at December 31, 2014 | $ | 33,984 | $ | (6,518 | ) | $ | 27,466 | ||||||
Foreign currency translation adjustment | (5 | ) | — | (5 | ) | ||||||||
Unrealized gain on available-for-sale securities: | |||||||||||||
Unrealized holding gains | 11,481 | (4,160 | ) | 7,321 | |||||||||
Less: reclassification adjustment for gain realized in net | — | — | — | ||||||||||
loss | |||||||||||||
Net unrealized holding gain | 11,481 | (4,160 | ) | 7,321 | |||||||||
Net unrealized holding gain on cash flow hedges: | |||||||||||||
Unrealized holding gain | 13,776 | — | 13,776 | ||||||||||
Less: reclassification adjustment for gain realized in net | 4,739 | — | 4,739 | ||||||||||
loss | |||||||||||||
Net unrealized holding gain | 9,037 | — | 9,037 | ||||||||||
Other comprehensive income | 20,513 | (4,160 | ) | 16,353 | |||||||||
AOCI balance at March 31, 2015 | $ | 54,497 | $ | (10,678 | ) | $ | 43,819 | ||||||
Three Months Ended March 31, 2014 | |||||||||||||
Before Tax | Tax (Expense) | Net-of-Tax | |||||||||||
Amount | Benefit | Amount | |||||||||||
AOCI balance at December 31, 2013 | $ | 7,756 | $ | (2,738 | ) | $ | 5,018 | ||||||
Foreign currency translation adjustment | 5 | — | 5 | ||||||||||
Unrealized gain on available-for-sale securities: | |||||||||||||
Unrealized holding gains | 2,244 | (821 | ) | 1,423 | |||||||||
Less: reclassification adjustment for gain realized in net | — | — | — | ||||||||||
loss | |||||||||||||
Net unrealized holding gain | 2,244 | (821 | ) | 1,423 | |||||||||
Net unrealized holding gain on cash flow hedges: | |||||||||||||
Unrealized holding gain | 2,183 | (787 | ) | 1,396 | |||||||||
Less: reclassification adjustment for loss realized in net | (887 | ) | 320 | (567 | ) | ||||||||
loss | |||||||||||||
Net unrealized holding gain | 1,296 | (467 | ) | 829 | |||||||||
Other comprehensive income | 3,545 | (1,288 | ) | 2,257 | |||||||||
AOCI balance at March 31, 2014 | $ | 11,301 | $ | (4,026 | ) | $ | 7,275 | ||||||
REVENUE_AND_CREDIT_CONCENTRATI
REVENUE AND CREDIT CONCENTRATIONS | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Risks And Uncertainties [Abstract] | |||||||||
REVENUE AND CREDIT CONCENTRATIONS | (18) REVENUE AND CREDIT CONCENTRATIONS | ||||||||
Net Product Revenue—The Company considers there to be revenue concentration risks for regions where net product revenue exceeds ten percent (10%) of consolidated net product revenue. The concentration of the Company’s net product revenue within the regions below may have a material adverse effect on the Company’s revenue and results of operations if sales in the respective regions experience difficulties. | |||||||||
The table below summarizes consolidated net product revenue concentrations based on patient location for Vimizim, Naglazyme, Kuvan and Firdapse and the headquarters for Genzyme Corporation (Genzyme) for Aldurazyme. Although Genzyme sells Aldurazyme worldwide, the royalties earned by the Company on Genzyme’s net sales are included in the U.S. region, as the transactions are with Genzyme whose headquarters are located in the U.S. | |||||||||
Three Months Ended March 31, | |||||||||
2015 | 2014 | ||||||||
Region: | |||||||||
United States | 44 | % | 47 | % | |||||
Europe | 21 | % | 20 | % | |||||
Latin America | 17 | % | 16 | % | |||||
Rest of world | 18 | % | 17 | % | |||||
Total net product revenue | 100 | % | 100 | % | |||||
The following table illustrates the percentage of the Company’s consolidated net product revenue attributed to the Company’s four largest customers. | |||||||||
Three Months Ended March 31, | |||||||||
2015 | 2014 | ||||||||
Customer A | 15 | % | 16 | % | |||||
Customer B (1) | 9 | % | 12 | % | |||||
Customer C | 11 | % | 11 | % | |||||
Customer D | 12 | % | 11 | % | |||||
Total | 47 | % | 50 | % | |||||
-1 | Genzyme is the Company’s sole customer for Aldurazyme and is responsible for marketing and selling Aldurazyme to third-parties. Net product revenues from Genzyme are comprised of royalties on worldwide net Aldurazyme sales and incremental product transfer revenue. | ||||||||
On a consolidated basis, the Company’s two largest customers accounted for 29% and 21% of the March 31, 2015 accounts receivable balance, respectively, compared to December 31, 2014 when the two largest customers accounted for 42% and 18% of the accounts receivable balance, respectively. As of March 31, 2015 and December 31, 2014, accounts receivable for the Company’s largest customer balance included $30.2 million and $34.5 million, respectively, of unbilled accounts receivable related to net incremental Aldurazyme product transfers to Genzyme. The Company does not require collateral from its customers, but does perform periodic credit evaluations of its customers’ financial condition and requires immediate payment in certain circumstances. | |||||||||
The Company is subject to credit risk from accounts receivable related to product sales. The majority of the Company’s trade accounts receivable arises from product sales in the U.S. and the EU. The Company’s product sales to government-owned or government-funded customers in certain European countries, including Italy, Spain, Portugal, Greece and Russia, are subject to payment terms that are statutorily determined. Because these customers are government-owned or government-funded, the Company may be impacted by declines in sovereign credit ratings or sovereign defaults in these countries. A significant or further decline in sovereign credit ratings or a default in these countries may decrease the likelihood that the Company will collect accounts receivable or may increase the discount rates and the length of time until receivables are collected, which could result in a negative impact to the Company’s operating results. In the three months ended March 31, 2015, the Company’s net product revenues for these countries was 4%. Additionally, approximately 7% of the Company’s outstanding accounts receivable at March 31, 2015 related to such countries. | |||||||||
As of March 31, 2015, the Company’s accounts receivable in certain European countries, specifically Greece, Italy, Portugal, Spain and Russia, totaled approximately $12.0 million, of which $0.8 million was greater than 90 days past due, $0.4 million was greater than 180 days past due and $0.1 was greater than 365 days past due. | |||||||||
The Company also sells its products in other countries that face economic crises and local currency devaluation. Although the Company has historically collected receivables from customers in those countries, sustained weakness or further deterioration of the local economies and currencies may cause customers in those countries to be unable to pay for the Company’s products. The Company has not historically experienced a significant level of uncollected receivables and has received continued payments from its more aged accounts. The Company believes that the allowances for doubtful accounts related to these countries is adequate based on its analysis of the specific business circumstances and expectations of collection for each of the underlying accounts in these countries. |
SEGMENT_INFORMATION
SEGMENT INFORMATION | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Segment Reporting [Abstract] | |||||||||
SEGMENT INFORMATION | (19) SEGMENT INFORMATION | ||||||||
The Company operates in one business segment, which primarily focuses on the development and commercialization of innovative biopharmaceuticals for serious diseases and medical conditions. All products are included in one segment because the majority of our products have similar economic and other characteristics, including the nature of the products and production processes, type of customers, distribution methods and regulatory environment. | |||||||||
Three Months Ended March 31, | |||||||||
2015 | 2014 | ||||||||
Net product revenue by product: | |||||||||
Vimizim | $ | 50,622 | $ | 875 | |||||
Naglazyme | 78,167 | 80,114 | |||||||
Kuvan | 50,193 | 45,236 | |||||||
Aldurazyme | 18,243 | 18,070 | |||||||
Firdapse | 4,087 | 4,709 | |||||||
Total net product revenue | $ | 201,312 | $ | 149,004 | |||||
Net product revenue is based on patient location for Vimizim, Naglazyme, Kuvan and Firdapse and Genzyme’s headquarters for Aldurazyme. Although Genzyme sells Aldurazyme worldwide, the royalties earned by the Company on Genzyme’s net sales are included in the U.S. region, as the transactions are with Genzyme whose headquarters are located in the U.S. | |||||||||
The following table summarizes total revenues from external customers and collaborative partners by geographic region. | |||||||||
Three Months Ended March 31, | |||||||||
2015 | 2014 | ||||||||
Total revenues by geographic region: | |||||||||
United States | $ | 90,592 | $ | 71,649 | |||||
Europe | 41,710 | 30,654 | |||||||
Latin America | 34,818 | 22,209 | |||||||
Rest of world | 36,144 | 27,040 | |||||||
Total revenues | $ | 203,264 | $ | 151,552 | |||||
PROVISION_FOR_BENEFIT_FROM_INC
PROVISION FOR (BENEFIT FROM) INCOME TAXES | 3 Months Ended |
Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
PROVISION FOR (BENEFIT FROM) INCOME TAXES | (20) PROVISION FOR (BENEFIT FROM) INCOME TAXES |
The Company has historically computed its interim period provision for (benefit from) income taxes by applying its forecasted effective tax rate to year-to-date earnings. However, due to a significant amount of U.S. permanent differences relative to the amount of U.S. forecasted income used in computing the effective tax rate, the effective tax rate is highly sensitive to minor fluctuations in U.S forecasted income. As such, the Company computed the U.S component of the consolidated provision for (benefit from) income taxes for the three months ended March 31, 2015 and 2014 using the actual year-to-date tax calculation. Foreign tax expense was computed using a forecasted annual effective tax rate for the three months ended March 31, 2015 and 2014. |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2015 | |
Commitments And Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | (21) COMMITMENTS AND CONTINGENCIES |
Contingencies | |
From time to time the Company is involved in legal actions arising in the normal course of its business. The most significant of these actions are described below. | |
The process of resolving matters through litigation or other means is inherently uncertain and it is possible that an unfavorable resolution of these matters could adversely affect the Company, its results of operations, financial condition and cash flows. The Company’s general practice is to expense legal fees as services are rendered in connection with legal matters, and to accrue for liabilities when losses are probable and reasonably estimable. | |
Paragraph IV Notices | |
As previously disclosed, the Company received a paragraph IV notice letter, dated October 3, 2014, from Dr. Reddy’s Laboratories, Inc. and Dr. Reddy’s Laboratories, Ltd. (collectively, DRL), notifying the Company that DRL has filed an abbreviated new drug application (ANDA) seeking approval of a proposed generic version of Kuvan (sapropterin dihydrochloride) 100 mg oral tablets prior to the expiration of the Company’s patents listed in the U.S. Food and Drug Administration’s (the FDA) Approved Drug Products with Therapeutic Equivalence Evaluations (the Orange Book). Additionally, the Company received a paragraph IV notice letter, dated January 22, 2015, from Par Pharmaceutical, Inc. (Par), notifying the Company that Par has filed an ANDA seeking approval of a proposed generic version of Kuvan (sapropterin dihydrochloride) 100 mg oral tablets prior to the expiration of the Company’s patents listed in the FDA’s Orange Book. Together with Merck & Cie (Merck), the Company filed lawsuits against both DRL and Par in the United States District Court for the District of New Jersey alleging patent infringement for the Company’s patents relating to Kuvan triggering the automatic 30 month stay on the approval of each ANDA. | |
Contingent Payments | |
As of March 31, 2015, the Company is subject to contingent payments totaling approximately $733.4 million upon achievement of certain regulatory and licensing milestones if they occur before certain dates in the future. Of this amount, $51.4 million relates to programs that are no longer being developed. | |
As of March 31, 2015, the Company has recorded $114.3 million of contingent acquisition consideration payable on its Condensed Consolidated Balance Sheet, of which $75.3 million is expected to be paid in the next twelve months. | |
In the normal course of business, the Company enters into various firm purchase commitments primarily related to research and development and certain inventory related items. As of March 31, 2015, these commitments for the next five years were approximately $74.0 million. These amounts primarily relate to active pharmaceutical ingredients and represent minimum purchase requirements and post marketing commitments related to the Company’s approved products. |
SIGNIFICANT_ACCOUNTING_POLICIE1
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Reclassifications | Reclassifications |
Certain items in the Company’s prior year Condensed Consolidated Financial Statements have been reclassified to conform to the current presentation. |
ACQUISITIONS_Tables
ACQUISITIONS (Tables) | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Business Acquisition [Line Items] | |||||||
Fair Value of Identifiable Intangible Assets Acquired by Asset Class | The following table sets forth the fair value of the components of the identifiable intangible assets acquired by asset class as of the date of acquisition: | ||||||
Above market leases | $ | 351 | |||||
In-place leases | 3,554 | ||||||
Total intangible assets subject to amortization | $ | 3,905 | |||||
Prosensa Holding N.V | |||||||
Business Acquisition [Line Items] | |||||||
Summary of Estimated Fair Values of Assets Acquired and Liabilities Assumed | The following table presents the allocation of the purchase consideration for the Prosensa acquisition, including the CVRs, based on fair value. | ||||||
Cash and cash equivalents | $ | 141,669 | |||||
Trade accounts receivable | 3,086 | ||||||
Other current assets | 1,537 | ||||||
Property, plant and equipment | 2,683 | ||||||
Intangible assets | 497 | ||||||
Other assets | 104 | ||||||
Acquired IPR&D | 772,808 | ||||||
Total identifiable assets acquired | 922,384 | ||||||
Accounts payable and accrued expenses | (68,799 | ) | |||||
Debt assumed | (57,053 | ) | |||||
Deferred tax liability | (193,202 | ) | |||||
Total liabilities assumed | (319,054 | ) | |||||
Net identifiable assets acquired | 603,330 | ||||||
Goodwill | 148,134 | ||||||
Net assets acquired | $ | 751,464 | |||||
San Rafael Corporate Center | |||||||
Business Acquisition [Line Items] | |||||||
Summary of Estimated Fair Values of Assets Acquired and Liabilities Assumed | The following table summarizes the estimated fair values of assets acquired as of the date of acquisition: | ||||||
Estimated | Estimated | ||||||
Fair Value | Useful Lives | ||||||
Building and improvements | $ | 94,414 | 50 years | ||||
Land | 14,565 | ||||||
Land improvements | 3,616 | 10 years | |||||
Intangible assets | 3,905 | Remaining | |||||
lease terms | |||||||
Total identifiable net assets | $ | 116,500 | |||||
NET_LOSS_PER_COMMON_SHARE_Tabl
NET LOSS PER COMMON SHARE (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Computation of Basic and Diluted Earnings per Common Share | The following table sets forth the computation of basic and diluted earnings per common share (in thousands of common shares): | ||||||||
Three Months Ended March 31, | |||||||||
2015 | 2014 | ||||||||
Numerator: | |||||||||
Net loss, basic | $ | (67,501 | ) | $ | (38,115 | ) | |||
Gain on Company common stock issued to the NQDC | — | (374 | ) | ||||||
Net loss, diluted | $ | (67,501 | ) | $ | (38,489 | ) | |||
Denominator: | |||||||||
Weighted-average common shares outstanding, basic | 157,612 | 143,983 | |||||||
Effect of dilutive securities: | |||||||||
Common stock issued to the NQDC | — | 174 | |||||||
Weighted-average common shares outstanding, diluted | 157,612 | 144,157 | |||||||
Net loss per common share, basic | $ | (0.43 | ) | $ | (0.26 | ) | |||
Net loss per common share, diluted | $ | (0.43 | ) | $ | (0.27 | ) | |||
Schedule Of Anti-Dilutive Common Stock Excluded From Computation of Diluted Net Loss Per Share | the table below presents potential shares of common stock that were excluded from the computation as they were anti-dilutive using the treasury stock method (in thousands of common shares): | ||||||||
Three Months Ended March 31, | |||||||||
2015 | 2014 | ||||||||
Options to purchase common stock | 11,109 | 12,444 | |||||||
Common stock issuable under the 2017 Notes | 1,567 | 3,047 | |||||||
Common stock issuable under the 2018 and 2020 Notes | 7,966 | 7,966 | |||||||
Unvested restricted stock units | 1,557 | 1,326 | |||||||
Potentially issuable common stock for ESPP purchases | 223 | 209 | |||||||
Common stock held by the NQDC | 213 | — | |||||||
Total number of potentially issuable shares | 22,635 | 24,992 | |||||||
INVESTMENTS_Tables
INVESTMENTS (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Investments Schedule [Abstract] | |||||||||||||||||
Amortized Cost, Gross Unrealized Holding Gain or Loss, and Fair Value of Available For Sale Security by Major Security type | The amortized cost, gross unrealized holding gains or losses, and fair value of the Company’s available-for-sale securities by major security type at March 31, 2015 and December 31, 2014 are summarized in the tables below: | ||||||||||||||||
Amortized Cost | Gross | Gross | Aggregate Fair | ||||||||||||||
Unrealized | Unrealized | Value at March 31, 2015 | |||||||||||||||
Holding Gains | Holding Losses | ||||||||||||||||
Certificates of deposit | $ | 69,871 | $ | 1 | $ | — | $ | 69,872 | |||||||||
Corporate debt securities | 147,537 | 129 | — | 147,666 | |||||||||||||
Commercial paper | 21,354 | — | — | 21,354 | |||||||||||||
U.S. government agency securities | 93,012 | 31 | — | 93,043 | |||||||||||||
Greek government-issued bonds | 50 | 54 | — | 104 | |||||||||||||
Total | $ | 331,824 | $ | 215 | $ | — | $ | 332,039 | |||||||||
Amortized Cost | Gross | Gross | Aggregate Fair | ||||||||||||||
Unrealized | Unrealized | Value at | |||||||||||||||
Holding Gains | Holding Losses | 31-Dec-14 | |||||||||||||||
Certificates of deposit | $ | 72,302 | $ | 1 | $ | — | $ | 72,303 | |||||||||
Corporate debt securities | 95,478 | — | (342 | ) | 95,136 | ||||||||||||
Greek government-issued bonds | 50 | 73 | — | 123 | |||||||||||||
Total | $ | 167,830 | $ | 74 | $ | (342 | ) | $ | 167,562 | ||||||||
Fair Values of Available-For-Sale Securities by Contractual Maturity | The fair values of available-for-sale securities by contractual maturity were as follows: | ||||||||||||||||
March 31, | December 31, | ||||||||||||||||
2015 | 2014 | ||||||||||||||||
Maturing in one year or less | $ | 108,119 | $ | 69,706 | |||||||||||||
Maturing after one year through five years | 223,920 | 97,856 | |||||||||||||||
Total | $ | 332,039 | $ | 167,562 | |||||||||||||
GOODWILL_SCHEDULE_OF_CHANGES_I
GOODWILL - SCHEDULE OF CHANGES IN GOODWILL (Tables) | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Goodwill And Intangible Assets Disclosure [Abstract] | |||||
Schedule of Changes in Goodwill | The following table represents the changes in goodwill for the three months ended March 31, 2015: | ||||
Balance at December 31, 2014 | $ | 54,258 | |||
Addition of goodwill related to the acquisition of Prosensa | 148,134 | ||||
Balance at March 31, 2015 | $ | 202,392 | |||
INTANGIBLE_ASSETS_Tables
INTANGIBLE ASSETS (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | |||||||||
Schedule of Intangible Assets | Intangible assets consisted of the following: | ||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
Intangible assets: | |||||||||
Finite-lived intangible assets | $ | 123,836 | $ | 123,365 | |||||
Indefinite-lived intangible assets | 847,238 | 74,430 | |||||||
Gross intangible assets: | 971,074 | 197,795 | |||||||
Less: Accumulated amortization | (44,178 | ) | (41,217 | ) | |||||
Net carrying value | $ | 926,896 | $ | 156,578 | |||||
PROPERTY_PLANT_AND_EQUIPMENT_T
PROPERTY, PLANT AND EQUIPMENT (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Property Plant And Equipment [Abstract] | |||||||||
Schedule of Property Plant and Equipment Net | Property, plant and equipment, net consisted of the following: | ||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
Leasehold improvements | $ | 40,733 | $ | 39,297 | |||||
Building and improvements | 339,161 | 335,991 | |||||||
Manufacturing and laboratory equipment | 129,348 | 124,564 | |||||||
Computer hardware and software | 99,879 | 97,032 | |||||||
Furniture and equipment | 14,874 | 13,717 | |||||||
Land improvements | 4,106 | 4,106 | |||||||
Land | 29,357 | 29,358 | |||||||
Construction-in-progress | 120,971 | 108,340 | |||||||
778,429 | 752,405 | ||||||||
Less: Accumulated depreciation | (240,312 | ) | (228,889 | ) | |||||
Total property, plant and equipment, net | $ | 538,117 | $ | 523,516 | |||||
SUPPLEMENTAL_BALANCE_SHEET_INF1
SUPPLEMENTAL BALANCE SHEET INFORMATION (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |||||||||
Schedule Of Inventory | Inventory consisted of the following: | ||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
Raw materials | $ | 21,690 | $ | 22,488 | |||||
Work-in-process | 124,192 | 114,393 | |||||||
Finished goods | 76,951 | 62,571 | |||||||
Total inventory | $ | 222,833 | $ | 199,452 | |||||
Schedule of Other Current Assets | Other Current Assets consisted of the following: | ||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
Prepaid expenses | 39,159 | 35,390 | |||||||
Short-term forward currency exchange contract assets | 18,337 | 10,513 | |||||||
Promissory notes receivable, net | 3,326 | 46,946 | |||||||
Restricted investments | 7,131 | 2,354 | |||||||
Convertible promissory note conversion option | — | 2,386 | |||||||
Other receivables | 10,983 | 9,733 | |||||||
Other | 5,329 | 4,513 | |||||||
Total other current assets | $ | 84,265 | $ | 111,835 | |||||
Schedule of Other Assets | Other Assets consisted of the following: | ||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
Deposits | 11,045 | 12,021 | |||||||
Deferred debt offering costs | 10,911 | 11,763 | |||||||
Strategic investments | 44,918 | 30,811 | |||||||
Long-term forward foreign currency exchange contract assets | 7,391 | 5,387 | |||||||
Other | 6,067 | 5,299 | |||||||
Total other assets | $ | 80,332 | $ | 65,281 | |||||
Schedule of Accounts Payable and Accrued Liabilities | Accounts payable and accrued liabilities consisted of the following: | ||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
Accounts payable | $ | 23,606 | $ | 32,779 | |||||
Accrued accounts payable | 106,462 | 98,490 | |||||||
Accrued compensation expense | 32,461 | 45,479 | |||||||
Accrued vacation expense | 15,871 | 12,540 | |||||||
Accrued rebates payable | 17,173 | 14,859 | |||||||
Accrued royalties payable | 7,207 | 9,050 | |||||||
Value added taxes payable | 5,730 | 5,479 | |||||||
Other accrued operating expenses | 8,721 | 8,244 | |||||||
Other | 12,981 | 4,924 | |||||||
Total accounts payable and accrued liabilities | $ | 230,212 | $ | 231,844 | |||||
CONVERTIBLE_DEBT_Tables
CONVERTIBLE DEBT (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Debt Disclosure [Abstract] | |||||||||
Summary of Convertible Debt | The following table summarizes information regarding the Company’s convertible debt: | ||||||||
31-Mar-15 | 31-Dec-14 | ||||||||
Convertible Notes due 2020, net of unamortized discount of | $ | 300,786 | $ | 297,955 | |||||
$74,214 and $77,045, at March 31, 2015 and | |||||||||
December 31, 2014, respectively | |||||||||
Convertible Notes due 2018, net of unamortized discount of | 322,807 | 319,463 | |||||||
$52,193 and $55,537, at March 31, 2015 and | |||||||||
December 31, 2014, respectively | |||||||||
Convertible Notes due 2017 | 31,898 | 40,558 | |||||||
Total convertible debt, net of unamortized discount | $ | 655,491 | $ | 657,976 | |||||
Fair value of fixed rate convertible debt | |||||||||
Convertible Notes due in 2020 (1) | $ | 568,444 | $ | 456,360 | |||||
Convertible Notes due in 2018 (1) | 555,994 | 442,448 | |||||||
Convertible Notes due in 2017 (1) | 195,370 | 180,984 | |||||||
Total | $ | 1,319,808 | $ | 1,079,792 | |||||
-1 | The fair value of the Company’s fixed rate convertible debt is based on open market trades and is classified as Level 1 in the fair value hierarchy. | ||||||||
Summary of Convertible Debt Interest Expense | Interest expense on the Company’s convertible debt was comprised of the following: | ||||||||
Three Months Ended March 31, | |||||||||
2015 | 2014 | ||||||||
Coupon interest | $ | 2,462 | $ | 2,408 | |||||
Amortization of issuance costs | 826 | 843 | |||||||
Accretion of debt discount | 6,174 | 5,855 | |||||||
Total interest expense on convertible debt | $ | 9,462 | $ | 9,106 | |||||
DERIVATIVE_INSTRUMENTS_AND_HED1
DERIVATIVE INSTRUMENTS AND HEDGING STRATEGIES (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |||||||||||||
Fair Value Carrying Amount of Derivative Instruments | The fair value carrying amounts of the Company’s derivative instruments were as follows: | ||||||||||||
Asset Derivatives | Liability Derivatives | ||||||||||||
31-Mar-15 | 31-Mar-15 | ||||||||||||
Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | ||||||||||
Derivatives designated as hedging instruments: | |||||||||||||
Forward foreign currency exchange contracts | Other current assets | $ | 18,171 | Accounts payable and accrued liabilities | $ | — | |||||||
Forward foreign currency exchange contracts | Other assets | 7,391 | Other long- term liabilities | — | |||||||||
Total | $ | 25,562 | $ | — | |||||||||
Derivatives not designated as hedging | |||||||||||||
instruments: | |||||||||||||
Forward foreign currency exchange contracts | Other current assets | $ | 166 | Other long- term liabilities | $ | 805 | |||||||
Total | 166 | 805 | |||||||||||
Total value of derivative contracts | $ | 25,728 | $ | 805 | |||||||||
Asset Derivatives | Liability Derivatives | ||||||||||||
31-Dec-14 | 31-Dec-14 | ||||||||||||
Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | ||||||||||
Derivatives designated as hedging instruments: | |||||||||||||
Forward foreign currency exchange contracts | Other current assets | $ | 10,206 | Accounts payable and accrued liabilities | $ | — | |||||||
Forward foreign currency exchange contracts | Other assets | 5,387 | Other long- term liabilities | — | |||||||||
Total | $ | 15,593 | $ | — | |||||||||
Derivatives not designated as hedging | |||||||||||||
instruments: | |||||||||||||
Forward foreign currency exchange contracts | Other current assets | $ | 307 | Accounts payable and accrued liabilities | $ | 12 | |||||||
Total | 307 | 12 | |||||||||||
Total value of derivative contracts | $ | 15,900 | $ | 12 | |||||||||
Effect of Derivative Instruments | The effect of the Company’s derivative instruments on the Condensed Consolidated Financial Statements for the three months ended March 31, 2015 and 2014 was as follows: | ||||||||||||
Forward Foreign Currency Exchange Contracts | |||||||||||||
Three Months Ended March 31, | |||||||||||||
2015 | 2014 | ||||||||||||
Derivatives Designated as Hedging Instruments: | |||||||||||||
Net gain recognized in Other Comprehensive Income (OCI) (1) | $ | 13,776 | $ | 1,396 | |||||||||
Net gain reclassified from accumulated OCI into income (2) | 4,739 | (567 | ) | ||||||||||
Net gain (loss) recognized in net loss (3) | 141 | (121 | ) | ||||||||||
Derivatives Not Designated as Hedging Instruments: | |||||||||||||
Net gain recognized in net loss(4) | $ | 7,800 | $ | 56 | |||||||||
-1 | Net change in the fair value of the effective portion classified as OCI. | ||||||||||||
-2 | Effective portion classified as net product revenue. | ||||||||||||
-3 | Ineffective portion and amount excluded from effectiveness testing classified as SG&A expense. | ||||||||||||
-4 | Classified as SG&A expense. |
FAIR_VALUE_MEASUREMENTS_Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Fair Value of Financial Assets and Liabilities | The Company measures certain financial assets and liabilities at fair value on a recurring basis, including available-for-sale fixed income securities and foreign currency derivatives. The tables below present the fair value of these financial assets and liabilities determined using the following input levels. | ||||||||||||||||
Fair Value Measurements at March 31, 2015 | |||||||||||||||||
Quoted Price in | Significant Other | Significant | Total | ||||||||||||||
Active Markets | Observable | Unobservable | |||||||||||||||
For Identical | Inputs | Inputs | |||||||||||||||
Assets | (Level 2) | (Level 3) | |||||||||||||||
(Level 1) | |||||||||||||||||
Assets: | |||||||||||||||||
Cash and cash equivalents: | |||||||||||||||||
Overnight deposits | $ | 833,545 | $ | — | $ | — | $ | 833,545 | |||||||||
Money market instruments | — | 67,025 | — | 67,025 | |||||||||||||
Total cash and cash equivalents | 833,545 | 67,025 | — | 900,570 | |||||||||||||
Available-for-sale securities: | |||||||||||||||||
Short-term: | |||||||||||||||||
Certificates of deposit | — | 57,176 | — | 57,176 | |||||||||||||
Corporate debt securities | — | 15,546 | — | 15,546 | |||||||||||||
Commercial paper | — | 21,354 | — | 21,354 | |||||||||||||
U.S. government agency securities | — | 14,043 | — | 14,043 | |||||||||||||
Long-term: | |||||||||||||||||
Certificates of deposit | — | 12,696 | — | 12,696 | |||||||||||||
Corporate debt securities | — | 132,120 | — | 132,120 | |||||||||||||
U.S. government agency securities | — | 79,000 | — | 79,000 | |||||||||||||
Greek government-issued bonds | — | 104 | — | 104 | |||||||||||||
Total available-for-sale securities | — | 332,039 | — | 332,039 | |||||||||||||
Other Current Assets: | |||||||||||||||||
Nonqualified Deferred Compensation Plan assets | — | 353 | — | 353 | |||||||||||||
Forward foreign currency exchange contract(1) | — | 18,337 | — | 18,337 | |||||||||||||
Restricted investments (2) | — | 7,131 | — | 7,131 | |||||||||||||
Total other current assets | — | 25,821 | — | 25,821 | |||||||||||||
Other Assets: | |||||||||||||||||
Nonqualified Deferred Compensation Plan assets | — | 5,884 | — | 5,884 | |||||||||||||
Forward foreign currency exchange contract(1) | — | 7,391 | — | 7,391 | |||||||||||||
Strategic investment (4) | 41,809 | — | — | 41,809 | |||||||||||||
Total other assets | 41,809 | 13,275 | — | 55,084 | |||||||||||||
Total assets | $ | 875,354 | $ | 438,160 | $ | — | $ | 1,313,514 | |||||||||
Liabilities: | |||||||||||||||||
Current Liabilities: | |||||||||||||||||
Nonqualified Deferred Compensation Plan liability | $ | 1,198 | $ | 353 | $ | — | $ | 1,551 | |||||||||
Contingent acquisition consideration payable | — | — | 75,294 | 75,294 | |||||||||||||
Total current liabilities | 1,198 | 353 | 75,294 | 76,845 | |||||||||||||
Other long-term liabilities: | |||||||||||||||||
Nonqualified Deferred Compensation Plan liability | 25,402 | 5,884 | — | 31,286 | |||||||||||||
Forward foreign currency exchange contract (1) | — | 805 | — | 805 | |||||||||||||
Contingent acquisition consideration payable | — | — | 39,052 | 39,052 | |||||||||||||
Total other long-term liabilities | 25,402 | 6,689 | 39,052 | 71,143 | |||||||||||||
Total liabilities | $ | 26,600 | $ | 7,042 | $ | 114,346 | $ | 147,988 | |||||||||
Fair Value Measurements at December 31, 2014 | |||||||||||||||||
Quoted Price in | Significant Other | Significant | Total | ||||||||||||||
Active Markets | Observable | Unobservable | |||||||||||||||
For Identical | Inputs | Inputs | |||||||||||||||
Assets | (Level 2) | (Level 3) | |||||||||||||||
(Level 1) | |||||||||||||||||
Assets: | |||||||||||||||||
Cash and cash equivalents: | |||||||||||||||||
Overnight deposits | $ | 225,159 | $ | — | $ | — | $ | 225,159 | |||||||||
Money market instruments | — | 650,327 | — | 650,327 | |||||||||||||
Total cash and cash equivalents | 225,159 | 650,327 | — | 875,486 | |||||||||||||
Available-for-sale securities: | |||||||||||||||||
Short-term: | |||||||||||||||||
Certificates of deposit | — | 54,174 | — | 54,174 | |||||||||||||
Corporate debt securities | — | 15,532 | — | 15,532 | |||||||||||||
Long-term: | |||||||||||||||||
Certificates of deposit | — | 18,129 | — | 18,129 | |||||||||||||
Corporate debt securities | — | 79,604 | — | 79,604 | |||||||||||||
Greek government-issued bonds | — | 123 | — | 123 | |||||||||||||
Total available-for-sale securities | — | 167,562 | — | 167,562 | |||||||||||||
Other Current Assets: | |||||||||||||||||
Nonqualified Deferred Compensation Plan assets | — | 514 | — | 514 | |||||||||||||
Forward foreign currency exchange contract(1) | — | 10,513 | — | 10,513 | |||||||||||||
Restricted investments (2) | — | 2,354 | — | 2,354 | |||||||||||||
Embedded derivative (3) | — | — | 2,386 | 2,386 | |||||||||||||
Total other current assets | — | 13,381 | 2,386 | 15,767 | |||||||||||||
Other Assets: | |||||||||||||||||
Nonqualified Deferred Compensation Plan assets | — | 5,112 | — | 5,112 | |||||||||||||
Restricted investments (2) | — | 5,387 | — | 5,387 | |||||||||||||
Strategic investment (4) | 30,811 | — | — | 30,811 | |||||||||||||
Total other assets | 30,811 | 10,499 | — | 41,310 | |||||||||||||
Total assets | $ | 255,970 | $ | 841,769 | $ | 2,386 | $ | 1,100,125 | |||||||||
Liabilities: | |||||||||||||||||
Current Liabilities: | |||||||||||||||||
Nonqualified Deferred Compensation Plan liability | $ | 1,790 | $ | 514 | $ | — | $ | 2,304 | |||||||||
Forward foreign currency exchange contract(1) | — | 12 | — | 12 | |||||||||||||
Contingent acquisition consideration payable | — | — | 3,895 | 3,895 | |||||||||||||
Total current liabilities | 1,790 | 526 | 3,895 | 6,211 | |||||||||||||
Other long-term liabilities: | |||||||||||||||||
Nonqualified Deferred Compensation Plan liability | 18,453 | 5,112 | — | 23,565 | |||||||||||||
Contingent acquisition consideration payable | — | — | 38,767 | 38,767 | |||||||||||||
Total other long-term liabilities | 18,453 | 5,112 | 38,767 | 62,332 | |||||||||||||
Total liabilities | $ | 20,243 | $ | 5,638 | $ | 42,662 | $ | 68,543 | |||||||||
-1 | See Note 14 to these Condensed Consolidated Financial Statements for further information regarding the derivative instruments. | ||||||||||||||||
-2 | The restricted investments at March 31, 2015 and December 31, 2014 secure the Company’s irrevocable standby letter of credit obtained in connection with certain commercial agreements. | ||||||||||||||||
-3 | The embedded derivative at December 31, 2014 represents the fair value of the conversion feature of a promissory note which may be settled in the issuer’s underlying shares. | ||||||||||||||||
-4 | The Company has investments in marketable equity securities measured using quoted prices in an active market that are considered strategic investments. See Note 8 to these Condensed Consolidated Financial Statements for additional discussion regarding the Company’s strategic investments. | ||||||||||||||||
Liabilities Measured at Fair Value Using Level 3 Inputs | |||||||||||||||||
Contingent acquisition consideration payable at December 31, 2014 | $ | 42,662 | |||||||||||||||
Addition of contingent consideration payable related to | 71,402 | ||||||||||||||||
the Prosensa acquisition (CVR) | |||||||||||||||||
Changes in the fair value of the contingent acquisition | 282 | ||||||||||||||||
consideration payable | |||||||||||||||||
Contingent acquisition consideration payable at March 31, 2015 | $ | 114,346 | |||||||||||||||
Asset Retirement Obligation Liability and Corresponding Capital Asset | |||||||||||||||||
Asset retirement obligations at December 31, 2014 | $ | 3,765 | |||||||||||||||
Accretion expense | 36 | ||||||||||||||||
Additions | 84 | ||||||||||||||||
Asset retirement obligations at March 31, 2015 | $ | 3,885 | |||||||||||||||
STOCKBASED_COMPENSATION_Tables
STOCK-BASED COMPENSATION (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||||||||
Stock Option Valuation Assumptions | The assumptions used to estimate the per share fair value of stock options granted under the 2012 Inducement Plan and 2014 Inducement Plan and the Share Incentive Plan were as follows: | ||||||||
Three Months Ended March 31, | |||||||||
2015 | 2014 | ||||||||
Expected volatility | 44 – 45% | 44 – 45% | |||||||
Dividend yield | 0.00% | 0.00% | |||||||
Expected life | 7.0 years | 6.9 years | |||||||
Risk-free interest rate | 1.5 – 2.0% | 2.1 – 2.3% | |||||||
Stock-Based Compensation Expense | Compensation expense included in the Company’s Condensed Consolidated Statements of Comprehensive Loss for all stock-based compensation arrangements was as follows: | ||||||||
Three Months Ended March 31, | |||||||||
2015 | 2014 | ||||||||
Cost of sales | $ | 1,348 | $ | 1,086 | |||||
R&D | 9,930 | 7,115 | |||||||
SG&A | 11,414 | 8,103 | |||||||
Total stock-based compensation expense | $ | 22,692 | $ | 16,304 | |||||
COMPREHENSIVE_LOSS_Tables
COMPREHENSIVE LOSS (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Equity [Abstract] | |||||||||||||
Amounts Reclassified out of Accumulated Other Comprehensive Loss | The following table summarizes amounts reclassified out of Accumulated Other Comprehensive Income/(Loss) (AOCI) and their effect on the Company’s Condensed Consolidated Statements of Comprehensive Loss for the three months ended March 31, 2015 and 2014. | ||||||||||||
Amount Reclassified from | |||||||||||||
AOCI Gain (Loss) | |||||||||||||
Three Months Ended March 31, | Consolidated Statement of | ||||||||||||
Details about AOCI Components | 2015 | 2014 | Operations Classification | ||||||||||
Gains (loss) on cash flow hedges: | |||||||||||||
Forward foreign currency exchange contracts | $ | 4,739 | $ | (887 | ) | Net product revenues | |||||||
— | 320 | Provision for income taxes | |||||||||||
$ | 4,739 | $ | (567 | ) | Net loss | ||||||||
Summary of Changes in Accumulated Balances of Other Comprehensive Income Loss Including Current Period Other Comprehensive Income and Reclassifications | The following table summarizes changes in the accumulated balances for each component of AOCI, including current period other comprehensive income and reclassifications out of AOCI, for the three months ended March 31, 2015 and 2014. | ||||||||||||
Three Months Ended March 31, 2015 | |||||||||||||
Before Tax | Tax (Expense) | Net-of-Tax | |||||||||||
Amount | Benefit | Amount | |||||||||||
AOCI balance at December 31, 2014 | $ | 33,984 | $ | (6,518 | ) | $ | 27,466 | ||||||
Foreign currency translation adjustment | (5 | ) | — | (5 | ) | ||||||||
Unrealized gain on available-for-sale securities: | |||||||||||||
Unrealized holding gains | 11,481 | (4,160 | ) | 7,321 | |||||||||
Less: reclassification adjustment for gain realized in net | — | — | — | ||||||||||
loss | |||||||||||||
Net unrealized holding gain | 11,481 | (4,160 | ) | 7,321 | |||||||||
Net unrealized holding gain on cash flow hedges: | |||||||||||||
Unrealized holding gain | 13,776 | — | 13,776 | ||||||||||
Less: reclassification adjustment for gain realized in net | 4,739 | — | 4,739 | ||||||||||
loss | |||||||||||||
Net unrealized holding gain | 9,037 | — | 9,037 | ||||||||||
Other comprehensive income | 20,513 | (4,160 | ) | 16,353 | |||||||||
AOCI balance at March 31, 2015 | $ | 54,497 | $ | (10,678 | ) | $ | 43,819 | ||||||
Three Months Ended March 31, 2014 | |||||||||||||
Before Tax | Tax (Expense) | Net-of-Tax | |||||||||||
Amount | Benefit | Amount | |||||||||||
AOCI balance at December 31, 2013 | $ | 7,756 | $ | (2,738 | ) | $ | 5,018 | ||||||
Foreign currency translation adjustment | 5 | — | 5 | ||||||||||
Unrealized gain on available-for-sale securities: | |||||||||||||
Unrealized holding gains | 2,244 | (821 | ) | 1,423 | |||||||||
Less: reclassification adjustment for gain realized in net | — | — | — | ||||||||||
loss | |||||||||||||
Net unrealized holding gain | 2,244 | (821 | ) | 1,423 | |||||||||
Net unrealized holding gain on cash flow hedges: | |||||||||||||
Unrealized holding gain | 2,183 | (787 | ) | 1,396 | |||||||||
Less: reclassification adjustment for loss realized in net | (887 | ) | 320 | (567 | ) | ||||||||
loss | |||||||||||||
Net unrealized holding gain | 1,296 | (467 | ) | 829 | |||||||||
Other comprehensive income | 3,545 | (1,288 | ) | 2,257 | |||||||||
AOCI balance at March 31, 2014 | $ | 11,301 | $ | (4,026 | ) | $ | 7,275 | ||||||
REVENUE_AND_CREDIT_CONCENTRATI1
REVENUE AND CREDIT CONCENTRATIONS (Tables) (Net Product Revenue) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Geographic Concentration Risk | |||||||||
Concentration Risk [Line Items] | |||||||||
Schedules of Consolidated Net Product Revenue Concentration | The table below summarizes consolidated net product revenue concentrations based on patient location for Vimizim, Naglazyme, Kuvan and Firdapse and the headquarters for Genzyme Corporation (Genzyme) for Aldurazyme. Although Genzyme sells Aldurazyme worldwide, the royalties earned by the Company on Genzyme’s net sales are included in the U.S. region, as the transactions are with Genzyme whose headquarters are located in the U.S. | ||||||||
Three Months Ended March 31, | |||||||||
2015 | 2014 | ||||||||
Region: | |||||||||
United States | 44 | % | 47 | % | |||||
Europe | 21 | % | 20 | % | |||||
Latin America | 17 | % | 16 | % | |||||
Rest of world | 18 | % | 17 | % | |||||
Total net product revenue | 100 | % | 100 | % | |||||
Customer Concentration Risk | |||||||||
Concentration Risk [Line Items] | |||||||||
Schedules of Consolidated Net Product Revenue Concentration | The following table illustrates the percentage of the Company’s consolidated net product revenue attributed to the Company’s four largest customers. | ||||||||
Three Months Ended March 31, | |||||||||
2015 | 2014 | ||||||||
Customer A | 15 | % | 16 | % | |||||
Customer B (1) | 9 | % | 12 | % | |||||
Customer C | 11 | % | 11 | % | |||||
Customer D | 12 | % | 11 | % | |||||
Total | 47 | % | 50 | % | |||||
-1 | Genzyme is the Company’s sole customer for Aldurazyme and is responsible for marketing and selling Aldurazyme to third-parties. Net product revenues from Genzyme are comprised of royalties on worldwide net Aldurazyme sales and incremental product transfer revenue. |
SEGMENT_INFORMATION_Tables
SEGMENT INFORMATION (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Segment Reporting [Abstract] | |||||||||
Segment Information by Product Revenue | The Company operates in one business segment, which primarily focuses on the development and commercialization of innovative biopharmaceuticals for serious diseases and medical conditions. All products are included in one segment because the majority of our products have similar economic and other characteristics, including the nature of the products and production processes, type of customers, distribution methods and regulatory environment. | ||||||||
Three Months Ended March 31, | |||||||||
2015 | 2014 | ||||||||
Net product revenue by product: | |||||||||
Vimizim | $ | 50,622 | $ | 875 | |||||
Naglazyme | 78,167 | 80,114 | |||||||
Kuvan | 50,193 | 45,236 | |||||||
Aldurazyme | 18,243 | 18,070 | |||||||
Firdapse | 4,087 | 4,709 | |||||||
Total net product revenue | $ | 201,312 | $ | 149,004 | |||||
Summary of Total Revenues from External Customers and Collaborative Partners by Geographic Region | The following table summarizes total revenues from external customers and collaborative partners by geographic region. | ||||||||
Three Months Ended March 31, | |||||||||
2015 | 2014 | ||||||||
Total revenues by geographic region: | |||||||||
United States | $ | 90,592 | $ | 71,649 | |||||
Europe | 41,710 | 30,654 | |||||||
Latin America | 34,818 | 22,209 | |||||||
Rest of world | 36,144 | 27,040 | |||||||
Total revenues | $ | 203,264 | $ | 151,552 | |||||
Recovered_Sheet1
Nature of Operations and Business Risks - Additional Information (Detail) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | |
Product | |||
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |||
Number of approved products | 5 | ||
Accumulated deficit | ($917,271) | ($849,770) | [1] |
[1] | December 31, 2014 balances were derived from the audited Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014, filed with the Securities and Exchange Commission (the SEC) on March 2, 2015. |
Acquisitions_Additional_Inform
Acquisitions - Additional Information (Detail) (USD $) | 3 Months Ended | 0 Months Ended | |||
Mar. 31, 2015 | Mar. 31, 2014 | Jan. 29, 2015 | Mar. 10, 2014 | Dec. 31, 2014 | |
Business Acquisition [Line Items] | |||||
Business acquisitions, net of cash acquired | $538,392,000 | ||||
Contractual right, share price | $4.14 | ||||
Contractual right, amount | 160,000,000 | ||||
Fair value of intangible assets | 114,300,000 | ||||
Intangible assets | 772,808,000 | ||||
Net gain recognized due to early termination of lease and realization of remaining balance in deferred rent and reversal of asset retirement obligation | 8,858,000 | ||||
Prosensa’s other primary product candidates | |||||
Business Acquisition [Line Items] | |||||
Intangible assets | 731,800,000 | ||||
PRO 044 | |||||
Business Acquisition [Line Items] | |||||
Intangible assets | 16,900,000 | ||||
PRO-045 | |||||
Business Acquisition [Line Items] | |||||
Intangible assets | 24,100,000 | ||||
Vested Options | |||||
Business Acquisition [Line Items] | |||||
Business acquisition, cash paid | 20,800,000 | ||||
Prosensa Holding N.V | |||||
Business Acquisition [Line Items] | |||||
Business acquisitions, net of cash acquired | 751,500,000 | ||||
Business combination transaction costs | 7,000,000 | 9,700,000 | 2,700,000 | ||
Business acquisition, cash paid | 680,100,000 | ||||
Prosensa Holding N.V | CVRs | |||||
Business Acquisition [Line Items] | |||||
Fair value of intangible assets | 71,400,000 | ||||
Prosensa Holding N.V | IPR&D | |||||
Business Acquisition [Line Items] | |||||
Fair value of intangible assets | 772,800,000 | ||||
Prosensa Holding N.V | Prosensa Shares | |||||
Business Acquisition [Line Items] | |||||
Business acquisition, cash paid | 620,700,000 | ||||
Approximate percentage of shares tendered at closing of initial offering | 96.80% | ||||
Prosensa Holding N.V | Prosensa Shareholders | |||||
Business Acquisition [Line Items] | |||||
Business acquisition, cash paid | 38,600,000 | ||||
San Rafael Corporate Center | |||||
Business Acquisition [Line Items] | |||||
Business acquisition, cash paid | 116,500,000 | ||||
Net gain recognized due to early termination of lease and realization of remaining balance in deferred rent and reversal of asset retirement obligation | 8,800,000 | ||||
San Rafael Corporate Center | Royalty, License and Other Revenues | |||||
Business Acquisition [Line Items] | |||||
Tenant revenue, other real estate | 1,000,000 | 400,000 | |||
San Rafael Corporate Center | Selling, General and Administrative | |||||
Business Acquisition [Line Items] | |||||
Business combination transaction costs | 200,000 | ||||
Net gain recognized due to early termination of lease and realization of remaining balance in deferred rent and reversal of asset retirement obligation | 2,700,000 | ||||
San Rafael Corporate Center | Research and Development | |||||
Business Acquisition [Line Items] | |||||
Net gain recognized due to early termination of lease and realization of remaining balance in deferred rent and reversal of asset retirement obligation | $6,100,000 |
Allocation_of_Purchase_Conside
Allocation of Purchase Consideration Including Contingent Acquisition Consideration Payable (Detail) (USD $) | Mar. 31, 2015 | Jan. 29, 2015 | Dec. 31, 2014 | |
In Thousands, unless otherwise specified | ||||
Business Combinations [Abstract] | ||||
Cash and cash equivalents | $141,669 | |||
Trade accounts receivable | 3,086 | |||
Other current assets | 1,537 | |||
Property, plant and equipment | 2,683 | |||
Intangible assets | 497 | |||
Other assets | 104 | |||
Acquired IPR&D | 772,808 | |||
Total identifiable assets acquired | 922,384 | |||
Accounts payable and accrued expenses | -68,799 | |||
Debt assumed | -57,053 | |||
Deferred tax liability | -193,202 | |||
Total liabilities assumed | -319,054 | |||
Net identifiable assets acquired | 603,330 | |||
Goodwill | 202,392 | 148,134 | 54,258 | [1] |
Net assets acquired | $751,464 | |||
[1] | December 31, 2014 balances were derived from the audited Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014, filed with the Securities and Exchange Commission (the SEC) on March 2, 2015. |
Summary_of_Estimated_Fair_Valu
Summary of Estimated Fair Values of Assets Acquired and Liabilities Assumed (Detail) (USD $) | 3 Months Ended | 0 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 10, 2014 | Jan. 29, 2015 |
Business Acquisition [Line Items] | |||
Land improvements | $104 | ||
Intangible assets | 497 | ||
Net identifiable assets acquired | 603,330 | ||
San Rafael Corporate Center | |||
Business Acquisition [Line Items] | |||
Building and improvements | 94,414 | ||
Land | 14,565 | ||
Land improvements | 3,616 | ||
Intangible assets | 3,905 | ||
Net identifiable assets acquired | 116,500 | ||
Estimated useful lives | Remaining lease terms | ||
San Rafael Corporate Center | Building and Improvements | |||
Business Acquisition [Line Items] | |||
Estimated useful lives | 50 years | ||
San Rafael Corporate Center | Land Improvements | |||
Business Acquisition [Line Items] | |||
Estimated useful lives | 10 years |
Fair_Value_of_Identifiable_Int
Fair Value of Identifiable Intangible assets Acquired by Asset Class (Detail) (USD $) | Jan. 29, 2015 | Mar. 10, 2014 |
In Thousands, unless otherwise specified | ||
Business Acquisition [Line Items] | ||
Fair value of identifiable intangible assets | $497 | |
San Rafael Corporate Center | ||
Business Acquisition [Line Items] | ||
Fair value of identifiable intangible assets | 3,905 | |
San Rafael Corporate Center | Above Market Leases | ||
Business Acquisition [Line Items] | ||
Fair value of identifiable intangible assets | 351 | |
San Rafael Corporate Center | In Place Leases | ||
Business Acquisition [Line Items] | ||
Fair value of identifiable intangible assets | $3,554 |
Stockholders_Equity_Additional
Stockholders' Equity - Additional Information (Detail) (USD $) | 1 Months Ended | 3 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Jan. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Equity [Abstract] | |||||
Common stock, shares issued | 9,775,000 | 160,282,313 | 149,093,647 | [1] | |
Common stock, issue price | $93.25 | ||||
Proceeds from public offering of common stock, net | $888,300 | $888,257 | $117,464 | ||
[1] | December 31, 2014 balances were derived from the audited Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014, filed with the Securities and Exchange Commission (the SEC) on March 2, 2015. |
Computation_of_Basic_and_Dilut
Computation of Basic and Diluted Earnings per Common Share (Detail) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Earnings Per Share [Abstract] | ||
Net loss, basic | ($67,501) | ($38,115) |
Gain on Company common stock issued to the NQDC | -374 | |
Net loss, diluted | ($67,501) | ($38,489) |
Weighted-average common shares outstanding, basic | 157,612 | 143,983 |
Common stock issued to the NQDC | 174 | |
Weighted-average common shares outstanding, diluted | 157,612 | 144,157 |
Net loss per common share, basic | ($0.43) | ($0.26) |
Net loss per common share, diluted | ($0.43) | ($0.27) |
AntiDilutive_Common_Stock_Excl
Anti-Dilutive Common Stock Excluded From Computation of Diluted Net Loss Per Share (Detail) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Potential shares of common stock excluded from computation of earnings (loss) per share as they are anti-dilutive | 22,635 | 24,992 |
Stock Option | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Potential shares of common stock excluded from computation of earnings (loss) per share as they are anti-dilutive | 11,109 | 12,444 |
Common stock issuable under the 2017 Notes | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Potential shares of common stock excluded from computation of earnings (loss) per share as they are anti-dilutive | 1,567 | 3,047 |
Common stock issuable under the 2018 and 2020 Notes | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Potential shares of common stock excluded from computation of earnings (loss) per share as they are anti-dilutive | 7,966 | 7,966 |
Unvested restricted stock units | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Potential shares of common stock excluded from computation of earnings (loss) per share as they are anti-dilutive | 1,557 | 1,326 |
Potentially issuable common stock for ESPP purchases | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Potential shares of common stock excluded from computation of earnings (loss) per share as they are anti-dilutive | 223 | 209 |
Common stock held by the NQDC | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Potential shares of common stock excluded from computation of earnings (loss) per share as they are anti-dilutive | 213 |
Net_Loss_Per_Common_Share_Addi
Net Loss Per Common Share - Additional Information (Detail) (USD $) | Mar. 31, 2015 |
Earnings Per Share [Line Items] | |
Debt instrument, convertible, conversion price, per share | $94.15 |
Convertible Notes due 2018 | |
Earnings Per Share [Line Items] | |
Debt instrument, interest rate, stated percentage, per annum | 0.75% |
Convertible Notes due 2020 | |
Earnings Per Share [Line Items] | |
Debt instrument, interest rate, stated percentage, per annum | 1.50% |
Amortized_Cost_Gross_Unrealize
Amortized Cost Gross Unrealized Holding Gain or Loss and Fair Value of Available for Sale Security by Major Security Type (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $331,824 | $167,830 |
Gross Unrealized Holding Gains | 215 | 74 |
Gross Unrealized Holding Losses | -342 | |
Aggregate Fair Value | 332,039 | 167,562 |
Certificates of Deposit | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 69,871 | 72,302 |
Gross Unrealized Holding Gains | 1 | 1 |
Aggregate Fair Value | 69,872 | 72,303 |
Corporate Debt Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 147,537 | 95,478 |
Gross Unrealized Holding Gains | 129 | |
Gross Unrealized Holding Losses | -342 | |
Aggregate Fair Value | 147,666 | 95,136 |
Commercial Paper | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 21,354 | |
Aggregate Fair Value | 21,354 | |
US Government Agencies Debt Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 93,012 | |
Gross Unrealized Holding Gains | 31 | |
Aggregate Fair Value | 93,043 | |
Greek Government-Issued Bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 50 | 50 |
Gross Unrealized Holding Gains | 54 | 73 |
Aggregate Fair Value | $104 | $123 |
Investments_Additional_Informa
Investments - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Investment | ||
Investments Debt And Equity Securities [Abstract] | ||
Number of investments in marketable equity securities | 2 | |
Fair value of marketable equity securities | $41.80 | $30.80 |
Carrying cost of non-marketable securities | 3.1 | |
Marketable equity securities, unrealized gain (loss) | $29.30 | $18.30 |
Fair_Values_of_AvailableForSal
Fair Values of Available-For-Sale Securities by Contractual Maturity (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Investments Debt And Equity Securities [Abstract] | ||
Maturing in one year or less | $108,119 | $69,706 |
Maturing after one year through five years | 223,920 | 97,856 |
Total | $332,039 | $167,562 |
Recovered_Sheet2
Goodwill - Schedule of Changes in Goodwill (Detail) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Jan. 29, 2015 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |||
Beginning Balance | $54,258 | [1] | $148,134 |
Addition of goodwill related to the acquisition of Prosensa | 148,134 | ||
Ending Balance | $202,392 | $148,134 | |
[1] | December 31, 2014 balances were derived from the audited Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014, filed with the Securities and Exchange Commission (the SEC) on March 2, 2015. |
Intangible_Assets_Detail
Intangible Assets (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | |
In Thousands, unless otherwise specified | |||
Intangible assets: | |||
Finite-lived intangible assets | $123,836 | $123,365 | |
Indefinite-lived intangible assets | 847,238 | 74,430 | |
Gross intangible assets: | 971,074 | 197,795 | |
Less: Accumulated amortization | -44,178 | -41,217 | |
Net carrying value | $926,896 | $156,578 | [1] |
[1] | December 31, 2014 balances were derived from the audited Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014, filed with the Securities and Exchange Commission (the SEC) on March 2, 2015. |
Property_Plant_and_Equipment_D
Property Plant and Equipment (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | |
In Thousands, unless otherwise specified | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $778,429 | $752,405 | |
Less: Accumulated depreciation | -240,312 | -228,889 | |
Total property, plant and equipment, net | 538,117 | 523,516 | [1] |
Leasehold Improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 40,733 | 39,297 | |
Building and Improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 339,161 | 335,991 | |
Manufacturing and Laboratory Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 129,348 | 124,564 | |
Computer Hardware and Software | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 99,879 | 97,032 | |
Furniture and Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 14,874 | 13,717 | |
Land Improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 4,106 | 4,106 | |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 29,357 | 29,358 | |
Construction-in-Progress | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $120,971 | $108,340 | |
[1] | December 31, 2014 balances were derived from the audited Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014, filed with the Securities and Exchange Commission (the SEC) on March 2, 2015. |
Property_Plant_and_Equipment_A
Property Plant and Equipment - Additional Information (Detail) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Property Plant And Equipment [Abstract] | ||
Depreciation expense | $11,500,000 | $9,600,000 |
Depreciation expense capitalized into inventory | $3,580,000 | $2,924,000 |
Schedule_of_Inventory_Detail
Schedule of Inventory (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | |
In Thousands, unless otherwise specified | |||
Inventory Disclosure [Abstract] | |||
Raw materials | $21,690 | $22,488 | |
Work-in-process | 124,192 | 114,393 | |
Finished goods | 76,951 | 62,571 | |
Total inventory | $222,833 | $199,452 | [1] |
[1] | December 31, 2014 balances were derived from the audited Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014, filed with the Securities and Exchange Commission (the SEC) on March 2, 2015. |
Schedule_of_Other_Current_Asse
Schedule of Other Current Assets (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | |
In Thousands, unless otherwise specified | |||
Condensed Financial Information Of Subsidiaries Disclosure [Abstract] | |||
Prepaid expenses | $39,159 | $35,390 | |
Short-term forward currency exchange contract assets | 18,337 | 10,513 | |
Promissory notes receivable, net | 3,326 | 46,946 | |
Restricted investments | 7,131 | 2,354 | |
Convertible promissory note conversion option | 2,386 | ||
Other receivables | 10,983 | 9,733 | |
Other | 5,329 | 4,513 | |
Total other current assets | $84,265 | $111,835 | [1] |
[1] | December 31, 2014 balances were derived from the audited Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014, filed with the Securities and Exchange Commission (the SEC) on March 2, 2015. |
Schedule_of_Other_Assets_Detai
Schedule of Other Assets (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | |
In Thousands, unless otherwise specified | |||
Condensed Financial Information Of Subsidiaries Disclosure [Abstract] | |||
Deposits | $11,045 | $12,021 | |
Deferred debt offering costs | 10,911 | 11,763 | |
Strategic investments | 44,918 | 30,811 | |
Long-term forward foreign currency exchange contract assets | 7,391 | 5,387 | |
Other | 6,067 | 5,299 | |
Total other assets | $80,332 | $65,281 | [1] |
[1] | December 31, 2014 balances were derived from the audited Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014, filed with the Securities and Exchange Commission (the SEC) on March 2, 2015. |
Schedule_of_Accounts_Payable_a
Schedule of Accounts Payable and Accrued Liabilities (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | |
In Thousands, unless otherwise specified | |||
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |||
Accounts payable | $23,606 | $32,779 | |
Accrued accounts payable | 106,462 | 98,490 | |
Accrued compensation expense | 32,461 | 45,479 | |
Accrued vacation expense | 15,871 | 12,540 | |
Accrued rebates payable | 17,173 | 14,859 | |
Accrued royalties payable | 7,207 | 9,050 | |
Value added taxes payable | 5,730 | 5,479 | |
Other accrued operating expenses | 8,721 | 8,244 | |
Other | 12,981 | 4,924 | |
Total accounts payable and accrued liabilities | $230,212 | $231,844 | [1] |
[1] | December 31, 2014 balances were derived from the audited Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014, filed with the Securities and Exchange Commission (the SEC) on March 2, 2015. |
Summary_of_Convertible_Debt_De
Summary of Convertible Debt (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
In Thousands, unless otherwise specified | ||||
Debt Instrument [Line Items] | ||||
Long-term Convertible Notes, net of unamortized discount | $655,491 | $657,976 | [1] | |
Convertible Notes, fair value | 1,319,808 | 1,079,792 | ||
Convertible Notes due 2020 | ||||
Debt Instrument [Line Items] | ||||
Long-term Convertible Notes, net of unamortized discount | 300,786 | 297,955 | ||
Convertible Notes, fair value | 568,444 | [2] | 456,360 | [2] |
Convertible Notes due 2018 | ||||
Debt Instrument [Line Items] | ||||
Long-term Convertible Notes, net of unamortized discount | 322,807 | 319,463 | ||
Convertible Notes, fair value | 555,994 | [2] | 442,448 | [2] |
Convertible Notes due 2017 | ||||
Debt Instrument [Line Items] | ||||
Long-term Convertible Notes, net of unamortized discount | 31,898 | 40,558 | ||
Convertible Notes, fair value | $195,370 | [2] | $180,984 | [2] |
[1] | December 31, 2014 balances were derived from the audited Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014, filed with the Securities and Exchange Commission (the SEC) on March 2, 2015. | |||
[2] | The fair value of the Company’s fixed rate convertible debt is based on open market trades and is classified as Level 1 in the fair value hierarchy. |
Summary_of_Convertible_Debt_Pa
Summary of Convertible Debt (Parenthetical) (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Convertible Notes due 2020 | ||
Debt Instrument [Line Items] | ||
Long-term convertible debt, unamortized discount | $74,214 | $77,045 |
Convertible Notes due 2018 | ||
Debt Instrument [Line Items] | ||
Long-term convertible debt, unamortized discount | $52,193 | $55,537 |
Summary_of_Interest_Expense_on
Summary of Interest Expense on Convertible Debt (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Schedule Of Interest Expenses [Line Items] | ||
Total interest expense on convertible debt | $9,462 | $9,106 |
Convertible Senior Notes | ||
Schedule Of Interest Expenses [Line Items] | ||
Coupon interest | 2,462 | 2,408 |
Amortization of issuance costs | 826 | 843 |
Accretion of debt discount | 6,174 | 5,855 |
Total interest expense on convertible debt | $9,462 | $9,106 |
Convertible_Debt_Additional_In
Convertible Debt - Additional Information (Detail) (USD $) | 3 Months Ended |
Mar. 31, 2015 | |
Debt Conversion [Line Items] | |
Convertible cash premium paid to holder for agreeing to convert | $163,000 |
Convertible Notes due 2017 | |
Debt Conversion [Line Items] | |
Number of agreements | 3 |
Convertible Notes due 2017 | Agreement One | |
Debt Conversion [Line Items] | |
Convertible notes aggregate principal | 8,100,000 |
Notes converted, number of shares | 399,469 |
Convertible cash premium paid to holder for agreeing to convert | 200,000 |
Convertible Notes due 2017 | Agreement One | Convertible Senior Notes | |
Debt Conversion [Line Items] | |
Convertible cash premium paid to holder for agreeing to convert | $200,000 |
Recovered_Sheet3
Derivative Instruments and Hedging Strategies - Additional Information (Detail) | 3 Months Ended | 12 Months Ended | 3 Months Ended | 3 Months Ended | |||||||||||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | |
USD ($) | USD ($) | USD ($) | Minimum | Maximum | Foreign Currency Derivatives | Foreign Currency Derivatives | Derivatives Designated As Hedging Instruments | Derivatives Designated As Hedging Instruments | Derivatives Designated As Hedging Instruments | Derivatives Designated As Hedging Instruments | Not Designated as Hedging Instrument | Not Designated as Hedging Instrument | Not Designated as Hedging Instrument | Not Designated as Hedging Instrument | |
USD ($) | Maximum | Euro | Purchase | Foreign Currency Derivatives | Foreign Currency Derivatives | Derivative | Sale Contracts | Foreign Currency Derivatives | Foreign Currency Derivatives | ||||||
Derivative | Euro | Sale Contracts | Purchase | Derivative | Sale Contracts | Sale Contracts | |||||||||
Derivative | EUR (€) | Sale Contracts | EUR (€) | GBP (£) | |||||||||||
EUR (€) | |||||||||||||||
Derivative [Line Items] | |||||||||||||||
Number of forward foreign currency exchange contracts outstanding | 94 | 7 | 1 | 1 | |||||||||||
Outstanding forward foreign currency exchange contracts | € 131,600,000 | € 20,000,000 | € 42,100,000 | £ 6,400,000 | |||||||||||
Maturity period of foreign currency derivatives | 1-Apr-15 | 31-Mar-18 | 31-Mar-18 | 30-Apr-15 | |||||||||||
Amount reclassified from accumulated other comprehensive income to earnings as related to forecasted revenue transactions | 4,739,000 | 567,000 | 18,900,000 | ||||||||||||
Maximum length of time over which hedging its exposure to the reduction in value of forecasted foreign currency cash flows through foreign currency forward contracts | 12 months | ||||||||||||||
Gain (Loss) from foreign currency exchange contracts in accumulated other comprehensive income | $24,500,000 | $15,900,000 |
Recovered_Sheet4
Derivative Instruments and Hedging Strategies (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value | $25,728 | $15,900 |
Derivative Liability, Fair Value | 805 | 12 |
Derivatives Designated As Hedging Instruments | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value | 25,562 | 15,593 |
Derivatives Designated As Hedging Instruments | Forward Foreign Currency Exchange Contracts | Other Current Assets | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value | 18,171 | 10,206 |
Derivatives Designated As Hedging Instruments | Forward Foreign Currency Exchange Contracts | Other Assets | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value | 7,391 | 5,387 |
Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value | 166 | 307 |
Derivative Liability, Fair Value | 805 | 12 |
Not Designated as Hedging Instrument | Forward Foreign Currency Exchange Contracts | Other Current Assets | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value | 166 | |
Not Designated as Hedging Instrument | Forward Foreign Currency Exchange Contracts | Other Assets | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value | 307 | |
Not Designated as Hedging Instrument | Forward Foreign Currency Exchange Contracts | Accounts Payable and Accrued Liabilities | ||
Derivative [Line Items] | ||
Derivative Liability, Fair Value | 12 | |
Not Designated as Hedging Instrument | Forward Foreign Currency Exchange Contracts | Other Long-Term Liabilities | ||
Derivative [Line Items] | ||
Derivative Liability, Fair Value | $805 |
Effect_of_Derivative_Instrumen
Effect of Derivative Instruments (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | ||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Net gain recognized in Other Comprehensive Income (OCI) | $24,500 | $15,900 | |||
Forward Foreign Currency Exchange Contracts | Derivatives Designated As Hedging Instruments | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Net gain recognized in Other Comprehensive Income (OCI) | 13,776 | [1] | 1,396 | [1] | |
Net gain reclassified from accumulated OCI into income | 4,739 | [2] | -567 | [2] | |
Net gain (loss) recognized in net loss | 141 | [3] | -121 | [3] | |
Forward Foreign Currency Exchange Contracts | Not Designated as Hedging Instrument | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Net gain (loss) recognized in net loss | $7,800 | [4] | $56 | [4] | |
[1] | Net change in the fair value of the effective portion classified as OCI. | ||||
[2] | Effective portion classified as net product revenue. | ||||
[3] | Ineffective portion and amount excluded from effectiveness testing classified as SG&A expense. | ||||
[4] | Classified as SG&A expense. |
Fair_Value_of_Financial_Assets
Fair Value of Financial Assets and Liabilities (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
In Thousands, unless otherwise specified | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value of Available-for-sale securities | $332,039 | $167,562 | ||
Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value of Cash and cash equivalents | 900,570 | 875,486 | ||
Fair value of Available-for-sale securities | 332,039 | 167,562 | ||
Fair value of other current assets | 25,821 | 15,767 | ||
Fair value of other non-current assets | 55,084 | 41,310 | ||
Fair value of financial assets, Total | 1,313,514 | 1,100,125 | ||
Fair value of other current liabilities | 76,845 | 6,211 | ||
Fair value of other non-current liabilities | 71,143 | 62,332 | ||
Fair value of financial liabilities, Total | 147,988 | 68,543 | ||
Fair Value, Measurements, Recurring | Overnight Deposits | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value of Cash and cash equivalents | 833,545 | 225,159 | ||
Fair Value, Measurements, Recurring | Money Market Instruments | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value of Cash and cash equivalents | 67,025 | 650,327 | ||
Fair Value, Measurements, Recurring | Nonqualified Deferred Compensation Plan Liability | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value of other current liabilities | 1,551 | 2,304 | ||
Fair value of other non-current liabilities | 31,286 | 23,565 | ||
Fair Value, Measurements, Recurring | Contingent Acquisition Consideration Payable | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value of other current liabilities | 75,294 | 3,895 | ||
Fair value of other non-current liabilities | 39,052 | 38,767 | ||
Fair Value, Measurements, Recurring | Forward Foreign Currency Exchange Contract, Liability | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value of other current liabilities | 12 | [1] | ||
Fair value of other non-current liabilities | 805 | [1] | ||
Fair Value, Measurements, Recurring | Certificates of Deposit | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value of Available-for-sale securities, current | 57,176 | 54,174 | ||
Fair value of Available-for-sale securities, non-current | 12,696 | 18,129 | ||
Fair Value, Measurements, Recurring | Corporate Debt Securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value of Available-for-sale securities, current | 15,546 | 15,532 | ||
Fair value of Available-for-sale securities, non-current | 132,120 | 79,604 | ||
Fair Value, Measurements, Recurring | Commercial Paper | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value of Available-for-sale securities, current | 21,354 | |||
Fair Value, Measurements, Recurring | US Government Agencies Debt Securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value of Available-for-sale securities, current | 14,043 | |||
Fair value of Available-for-sale securities, non-current | 79,000 | |||
Fair Value, Measurements, Recurring | Greek Government-Issued Bonds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value of Available-for-sale securities, non-current | 104 | 123 | ||
Fair Value, Measurements, Recurring | Nonqualified Deferred Compensation Plan Assets | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value of other current assets | 353 | 514 | ||
Fair value of other non-current assets | 5,884 | 5,112 | ||
Fair Value, Measurements, Recurring | Forward Foreign Current Exchange Contract Assets | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value of other current assets | 18,337 | [1] | 10,513 | [1] |
Fair value of other non-current assets | 7,391 | [1] | ||
Fair Value, Measurements, Recurring | Restrictive Investments | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value of other current assets | 7,131 | [2] | 2,354 | [2] |
Fair value of other non-current assets | 5,387 | [2] | ||
Fair Value, Measurements, Recurring | Strategic Investment | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value of other non-current assets | 41,809 | [3] | 30,811 | [3] |
Fair Value, Measurements, Recurring | Embedded Derivative | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value of other current assets | 2,386 | [4] | ||
Fair Value, Measurements, Recurring | Quoted Price In Active Markets For Identical Assets (Level 1) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value of Cash and cash equivalents | 833,545 | 225,159 | ||
Fair value of other non-current assets | 41,809 | 30,811 | ||
Fair value of financial assets, Total | 875,354 | 255,970 | ||
Fair value of other current liabilities | 1,198 | 1,790 | ||
Fair value of other non-current liabilities | 25,402 | 18,453 | ||
Fair value of financial liabilities, Total | 26,600 | 20,243 | ||
Fair Value, Measurements, Recurring | Quoted Price In Active Markets For Identical Assets (Level 1) | Overnight Deposits | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value of Cash and cash equivalents | 833,545 | 225,159 | ||
Fair Value, Measurements, Recurring | Quoted Price In Active Markets For Identical Assets (Level 1) | Nonqualified Deferred Compensation Plan Liability | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value of other current liabilities | 1,198 | 1,790 | ||
Fair value of other non-current liabilities | 25,402 | 18,453 | ||
Fair Value, Measurements, Recurring | Quoted Price In Active Markets For Identical Assets (Level 1) | Strategic Investment | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value of other non-current assets | 41,809 | [3] | 30,811 | [3] |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value of Cash and cash equivalents | 67,025 | 650,327 | ||
Fair value of Available-for-sale securities | 332,039 | 167,562 | ||
Fair value of other current assets | 25,821 | 13,381 | ||
Fair value of other non-current assets | 13,275 | 10,499 | ||
Fair value of financial assets, Total | 438,160 | 841,769 | ||
Fair value of other current liabilities | 353 | 526 | ||
Fair value of other non-current liabilities | 6,689 | 5,112 | ||
Fair value of financial liabilities, Total | 7,042 | 5,638 | ||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Money Market Instruments | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value of Cash and cash equivalents | 67,025 | 650,327 | ||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Nonqualified Deferred Compensation Plan Liability | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value of other current liabilities | 353 | 514 | ||
Fair value of other non-current liabilities | 5,884 | 5,112 | ||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Forward Foreign Currency Exchange Contract, Liability | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value of other current liabilities | 12 | [1] | ||
Fair value of other non-current liabilities | 805 | [1] | ||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Certificates of Deposit | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value of Available-for-sale securities, current | 57,176 | 54,174 | ||
Fair value of Available-for-sale securities, non-current | 12,696 | 18,129 | ||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Corporate Debt Securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value of Available-for-sale securities, current | 15,546 | 15,532 | ||
Fair value of Available-for-sale securities, non-current | 132,120 | 79,604 | ||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Commercial Paper | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value of Available-for-sale securities, current | 21,354 | |||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | US Government Agencies Debt Securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value of Available-for-sale securities, current | 14,043 | |||
Fair value of Available-for-sale securities, non-current | 79,000 | |||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Greek Government-Issued Bonds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value of Available-for-sale securities, non-current | 104 | 123 | ||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Nonqualified Deferred Compensation Plan Assets | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value of other current assets | 353 | 514 | ||
Fair value of other non-current assets | 5,884 | 5,112 | ||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Forward Foreign Current Exchange Contract Assets | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value of other current assets | 18,337 | [1] | 10,513 | [1] |
Fair value of other non-current assets | 7,391 | [1] | ||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Restrictive Investments | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value of other current assets | 7,131 | [2] | 2,354 | [2] |
Fair value of other non-current assets | 5,387 | [2] | ||
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value of other current assets | 2,386 | |||
Fair value of financial assets, Total | 2,386 | |||
Fair value of other current liabilities | 75,294 | 3,895 | ||
Fair value of other non-current liabilities | 39,052 | 38,767 | ||
Fair value of financial liabilities, Total | 114,346 | 42,662 | ||
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Contingent Acquisition Consideration Payable | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value of other current liabilities | 75,294 | 3,895 | ||
Fair value of other non-current liabilities | 39,052 | 38,767 | ||
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Embedded Derivative | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value of other current assets | $2,386 | [4] | ||
[1] | See Note 14 to these Condensed Consolidated Financial Statements for further information regarding the derivative instruments. | |||
[2] | The restricted investments at March 31, 2015 and December 31, 2014 secure the Company’s irrevocable standby letter of credit obtained in connection with certain commercial agreements. | |||
[3] | The Company has investments in marketable equity securities measured using quoted prices in an active market that are considered strategic investments. See Note 8 to these Condensed Consolidated Financial Statements for additional discussion regarding the Company’s strategic investments. | |||
[4] | The embedded derivative at December 31, 2014 represents the fair value of the conversion feature of a promissory note which may be settled in the issuer’s underlying shares. |
Liabilities_Measured_at_Fair_V
Liabilities Measured at Fair Value Using Level 3 Inputs (Detail) (Contingent Payment, USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 |
Contingent Payment | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Contingent acquisition consideration payable, Beginning balance | $42,662 |
Addition of contingent consideration payable related to the Prosensa acquisition (CVR) | 71,402 |
Changes in the fair value of the contingent acquisition consideration payable | 282 |
Contingent acquisition consideration payable, Ending balance | $114,346 |
Asset_Retirement_Obligation_Li
Asset Retirement Obligation Liability and Corresponding Capital Asset (Detail) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset retirement obligation, Beginning balance | $3,765 |
Accretion expense | 36 |
Additions | 84 |
Asset retirement obligations, Ending balance | $3,885 |
Assumptions_Used_to_Estimate_P
Assumptions Used to Estimate Per Share Fair Value of Stock Options Granted (Detail) (Stock Option) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Dividend yield | 0.00% | 0.00% |
Expected life | 7 years | 6 years 10 months 24 days |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility | 44.00% | 44.00% |
Risk-free interest rate | 1.50% | 2.10% |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility | 45.00% | 45.00% |
Risk-free interest rate | 2.00% | 2.30% |
Stock_Based_Compensation_Addit
Stock Based Compensation - Additional Information (Detail) (USD $) | 3 Months Ended | 0 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 03, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares, granted | 642,070 | ||
Weighted-average fair value per option granted | $56.11 | ||
Recognized compensation costs | $22,692,000 | $16,304,000 | |
Stock-based compensation capitalized to inventory | 2,500,000 | 2,100,000 | |
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares, granted | 825,900 | ||
Weighted-average fair value per option granted | $120.95 | ||
Restricted Stock With Performance and Market Based Vesting Conditions | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average fair value per option granted | $34.66 | ||
Number of restricted stock units grants | 860,000 | ||
Recognized compensation costs | 1,800,000 | 600,000 | |
Restricted Stock With Performance and Market Based Vesting Conditions | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total shareholder return, percentage of multiplier range | 75.00% | ||
Restricted Stock With Performance and Market Based Vesting Conditions | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total shareholder return, percentage of multiplier range | 125.00% | ||
Restricted Stock Unit Awards with Performance Conditions | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average fair value per option granted | $108.36 | ||
Number of restricted stock units grants | 58,300 | ||
Recognized compensation costs | $200,000 | ||
Award vesting service period | 3 years | ||
Number of units that could vest if performance condition is achieved and a revenue multiplier is applied | 69,960 | ||
Restricted Stock Unit Awards with Performance Conditions | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Revenue multiplier | 0.8 | ||
Restricted Stock Unit Awards with Performance Conditions | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Revenue multiplier | 1.2 |
Compensation_Expense_Detail
Compensation Expense (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | $22,692 | $16,304 |
Cost of Sales | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | 1,348 | 1,086 |
R&D | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | 9,930 | 7,115 |
SG&A | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | $11,414 | $8,103 |
Amounts_Reclassified_out_of_Ac
Amounts Reclassified out of Accumulated Other Comprehensive Income (Loss) (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||
Net product revenues | $201,312 | $149,004 |
Provision for (benefit from) income taxes | 7,202 | -3,491 |
NET LOSS | -67,501 | -38,115 |
Amount Reclassified from AOCI Gain (Loss) | Gain (loss) on cash flow hedges: | Forward Foreign Currency Exchange Contracts | ||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||
Net product revenues | 4,739 | -887 |
Provision for (benefit from) income taxes | 320 | |
NET LOSS | $4,739 | ($567) |
Summary_of_Changes_in_Accumula
Summary of Changes in Accumulated Balances of Other Comprehensive Income Loss Including Current Period Other Comprehensive Income and Reclassifications (Detail) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | |
Equity [Abstract] | |||
Beginning Balance, before tax amount | $33,984 | $7,756 | |
Foreign currency translation adjustment, before tax amount | -5 | 5 | |
Unrealized gain on available-for-sale securities, before tax amount | |||
Unrealized holding gains, before tax amount | 11,481 | 2,244 | |
Net unrealized holding gain, before tax amount | 11,481 | 2,244 | |
Net unrealized holding gain (loss) on cash flow hedges, before tax amount | |||
Unrealized holding gain (loss), before tax amount | 13,776 | 2,183 | |
Less: reclassification adjustment for gain (loss) realized in net income (loss), before tax amount | 4,739 | -887 | |
Net unrealized holding gain (loss), before tax amount | 9,037 | 1,296 | |
Other comprehensive income, before tax amount | 20,513 | 3,545 | |
Ending Balance, before tax amount | 54,497 | 11,301 | |
Beginning Balance, tax (expense) benefit | -6,518 | -2,738 | |
Unrealized gain on available-for-sale securities, tax (expense) benefit | |||
Unrealized holding gains, tax (expense) benefit | -4,160 | -821 | |
Net unrealized holding gain, tax (expense) benefit | -4,160 | -821 | |
Net unrealized holding gain (loss) on cash flow hedges, tax (expense) benefit | |||
Unrealized holding gain (loss), tax (expense) benefit | -787 | ||
Less: reclassification adjustment for gain (loss) realized in net income (loss), tax (expense) benefit | 320 | ||
Net unrealized holding gain (loss), tax (expense) benefit | -467 | ||
Other comprehensive income, tax (expense) benefit | -4,160 | -1,288 | |
Ending Balance, tax (expense) benefit | -10,678 | -4,026 | |
Beginning Balance, net of tax amount | 27,466 | [1] | 5,018 |
Foreign currency translation adjustment, net of tax amount | -5 | 5 | |
Unrealized gain on available-for-sale securities, net of tax amount | |||
Unrealized holding gains, net of tax amount | 7,321 | 1,423 | |
Net unrealized holding gain, net of tax amount | 7,321 | 1,423 | |
Net unrealized holding gain (loss) on cash flow hedges, net of tax amount | |||
Unrealized holding gain (loss), net of tax amount | 13,776 | 1,396 | |
Less: reclassification adjustment for gain (loss) realized in net income (loss), net of tax amount | 4,739 | 567 | |
Net unrealized holding gain (loss), net of tax amount | 9,037 | 829 | |
Other comprehensive income, net of tax amount | 16,353 | 2,257 | |
Ending Balance, net of tax amount | $43,819 | $7,275 | |
[1] | December 31, 2014 balances were derived from the audited Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014, filed with the Securities and Exchange Commission (the SEC) on March 2, 2015. |
Consolidated_Net_Product_Reven
Consolidated Net Product Revenue Concentrations Based on Patient Location (Detail) (Geographic Concentration Risk, Net Product Revenue) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 100.00% | 100.00% |
UNITED STATES | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 44.00% | 47.00% |
Europe | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 21.00% | 20.00% |
Latin America | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 17.00% | 16.00% |
Rest of World | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 18.00% | 17.00% |
Consolidated_Net_Product_Reven1
Consolidated Net Product Revenue Concentrations Attributed to Largest Customers (Detail) (Customer Concentration Risk, Net Product Revenue) | 3 Months Ended | |||
Mar. 31, 2015 | Mar. 31, 2014 | |||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 47.00% | 50.00% | ||
Customer A | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 15.00% | 16.00% | ||
Customer B | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 9.00% | [1] | 12.00% | [1] |
Customer C | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 11.00% | 11.00% | ||
Customer D | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 12.00% | 11.00% | ||
[1] | Genzyme is the Company’s sole customer for Aldurazyme and is responsible for marketing and selling Aldurazyme to third-parties. Net product revenues from Genzyme are comprised of royalties on worldwide net Aldurazyme sales and incremental product transfer revenue. |
Recovered_Sheet5
Revenue and Credit Concentrations - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | |
Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | ||
Customer | Customer | |||
Concentration Risk [Line Items] | ||||
Accounts receivable, net | $175,738,000 | $144,472,000 | [1] | |
Southern European Countries | ||||
Concentration Risk [Line Items] | ||||
Total amount past due | 12,000,000 | |||
Southern European Countries | Greater than 90 days | ||||
Concentration Risk [Line Items] | ||||
Total amount past due | 800,000 | |||
Southern European Countries | Greater than 180 days | ||||
Concentration Risk [Line Items] | ||||
Total amount past due | 400,000 | |||
Southern European Countries | Greater than 365 days | ||||
Concentration Risk [Line Items] | ||||
Total amount past due | 100,000 | |||
Largest Customers | ||||
Concentration Risk [Line Items] | ||||
Number of customers accounted for largest balance in accounts receivable | 2 | 2 | ||
Accounts receivable, net | $30,200,000 | $34,500,000 | ||
Credit Concentration Risk | Accounts Receivable | Larger Customer One | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 29.00% | 42.00% | ||
Credit Concentration Risk | Accounts Receivable | Larger Customer Two | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 21.00% | 18.00% | ||
Geographic Concentration Risk | Accounts Receivable | Southern European Countries | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 7.00% | |||
Geographic Concentration Risk | Net Product Revenue | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 100.00% | 100.00% | ||
Geographic Concentration Risk | Net Product Revenue | Southern European Countries | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 4.00% | |||
[1] | December 31, 2014 balances were derived from the audited Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014, filed with the Securities and Exchange Commission (the SEC) on March 2, 2015. |
Segment_Information_Additional
Segment Information - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2015 | |
Segment | |
Segment Reporting [Abstract] | |
Number of operating business segment | 1 |
Segment_Information_by_Product
Segment Information by Product Revenue (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Revenue from External Customer [Line Items] | ||
Net product revenues | $201,312 | $149,004 |
Vimizim | ||
Revenue from External Customer [Line Items] | ||
Net product revenues | 50,622 | 875 |
Naglazyme | ||
Revenue from External Customer [Line Items] | ||
Net product revenues | 78,167 | 80,114 |
Kuvan | ||
Revenue from External Customer [Line Items] | ||
Net product revenues | 50,193 | 45,236 |
Aldurazyme | ||
Revenue from External Customer [Line Items] | ||
Net product revenues | 18,243 | 18,070 |
Firdapse | ||
Revenue from External Customer [Line Items] | ||
Net product revenues | $4,087 | $4,709 |
Summary_of_Total_Revenues_from
Summary of Total Revenues from External Customers and Collaborative Partners by Geographic Region (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Revenue from External Customer [Line Items] | ||
Total revenues | $203,264 | $151,552 |
UNITED STATES | ||
Revenue from External Customer [Line Items] | ||
Total revenues | 90,592 | 71,649 |
Europe | ||
Revenue from External Customer [Line Items] | ||
Total revenues | 41,710 | 30,654 |
Latin America | ||
Revenue from External Customer [Line Items] | ||
Total revenues | 34,818 | 22,209 |
Rest of World | ||
Revenue from External Customer [Line Items] | ||
Total revenues | $36,144 | $27,040 |
Commitments_and_Contingencies_
Commitments and Contingencies - Additional Information (Detail) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 |
Commitments And Contingencies [Line Items] | |
Contingent payments upon achievement of certain regulatory and licensing milestones | $733.40 |
Fair value of intangible assets | 114.3 |
Purchase commitment for the next five years | 74 |
Current Liabilities | |
Commitments And Contingencies [Line Items] | |
Fair value of intangible assets | 75.3 |
Completed Programs | |
Commitments And Contingencies [Line Items] | |
Contingent payments upon achievement of certain regulatory and licensing milestones | $51.40 |