Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Feb. 24, 2014 | Jun. 30, 2013 | |
Document And Entity Information [Abstract] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Trading Symbol | 'SGEN | ' | ' |
Entity Registrant Name | 'SEATTLE GENETICS INC /WA | ' | ' |
Entity Central Index Key | '0001060736 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 122,982,860 | ' |
Entity Public Float | ' | ' | $1,782,964,197 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Assets | ' | ' |
Cash and cash equivalents | $64,116 | $54,663 |
Short-term investments | 310,151 | 309,595 |
Interest receivable | 591 | 893 |
Accounts receivable, net | 29,508 | 33,443 |
Inventories | 27,073 | 37,747 |
Prepaid expenses and other current assets | 5,817 | 4,519 |
Total current assets | 437,256 | 440,860 |
Property and equipment, net | 40,787 | 24,752 |
Other non-current assets | 5,855 | 5,810 |
Total assets | 483,898 | 471,422 |
Liabilities and Stockholders' Equity | ' | ' |
Accounts payable and accrued liabilities | 59,348 | 56,130 |
Current portion of deferred revenue | 39,850 | 44,447 |
Total current liabilities | 99,198 | 100,577 |
Long-term liabilities | ' | ' |
Deferred revenue, less current portion | 149,191 | 138,767 |
Deferred rent and other long-term liabilities | 5,324 | 5,930 |
Total long-term liabilities | 154,515 | 144,697 |
Commitments and contingencies | ' | ' |
Stockholders' equity | ' | ' |
Preferred stock, $0.001 par value, 5,000 shares authorized; none issued | 0 | 0 |
Common stock, $0.001 par value, 250,000 shares authorized; 122,615 shares issued and outstanding at December 31, 2013 and 119,710 shares issued and outstanding at December 31, 2012 | 123 | 120 |
Additional paid-in capital | 960,375 | 893,773 |
Accumulated other comprehensive income (loss) | -11 | 37 |
Accumulated deficit | -730,302 | -667,782 |
Total stockholders' equity | 230,185 | 226,148 |
Total liabilities and stockholders' equity | $483,898 | $471,422 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, except Per Share data, unless otherwise specified | ||
Statement Of Financial Position [Abstract] | ' | ' |
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares authorized | 5,000 | 5,000 |
Preferred stock, shares issued | ' | ' |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 250,000 | 250,000 |
Common stock, shares issued | 122,615 | 119,710 |
Common stock, shares outstanding | 122,615 | 119,710 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Loss (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Revenues | ' | ' | ' |
Net product sales | $144,665 | $138,200 | $43,241 |
Collaboration and license agreement revenues | 106,781 | 67,547 | 51,537 |
Royalty revenues | 17,818 | 5,065 | 0 |
Total revenues | 269,264 | 210,812 | 94,778 |
Costs and expenses | ' | ' | ' |
Cost of sales | 13,759 | 11,546 | 3,115 |
Cost of royalty revenues | 7,385 | 1,923 | 0 |
Research and development | 218,627 | 170,297 | 163,396 |
Selling, general and administrative | 92,354 | 84,300 | 72,659 |
Total costs and expenses | 332,125 | 268,066 | 239,170 |
Loss from operations | -62,861 | -57,254 | -144,392 |
Investment and other income (loss), net | 341 | 3,472 | -7,638 |
Net loss | -62,520 | -53,782 | -152,030 |
Net loss per share - basic and diluted | ($0.51) | ($0.46) | ($1.34) |
Shares used in computation of net loss per share - basic and diluted | 121,575 | 117,851 | 113,098 |
Comprehensive loss: | ' | ' | ' |
Net loss | -62,520 | -53,782 | -152,030 |
Other comprehensive gain (loss)-unrealized gain (loss) on securities available for sale | -48 | 17 | 1,393 |
Comprehensive loss | ($62,568) | ($53,765) | ($150,637) |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | Total | Common stock [Member] | Additional paid-in capital [Member] | Accumulated deficit [Member] | Accumulated other comprehensive income (loss) [Member] |
In Thousands, except Share data | |||||
Balances, value at Dec. 31, 2010 | $161,518 | $102 | $624,759 | ($461,970) | ($1,373) |
Balances, shares at Dec. 31, 2010 | ' | 101,607,000 | ' | ' | ' |
Net loss | -152,030 | 0 | 0 | -152,030 | 0 |
Other comprehensive income (loss) | 1,393 | 0 | 0 | 0 | 1,393 |
Issuance of common stock for employee stock purchase plan, value | 2,526 | 0 | 2,526 | 0 | 0 |
Issuance of common stock for employee stock purchase plan, shares | 229,014 | 229,000 | ' | ' | ' |
Stock option exercises, value | 12,327 | 2 | 12,325 | 0 | 0 |
Stock option exercises, shares | ' | 1,670,000 | ' | ' | ' |
Issuance of common stock, value | 168,053 | 11 | 168,042 | 0 | 0 |
Issuance of common stock, shares | ' | 11,500,000 | ' | ' | ' |
Warrant exercises, value | 5,078 | 1 | 5,077 | 0 | 0 |
Warrant exercises, shares | ' | 1,017,000 | ' | ' | ' |
Share-based compensation | 19,984 | 0 | 19,984 | 0 | 0 |
Balances, value at Dec. 31, 2011 | 218,849 | 116 | 832,713 | -614,000 | 20 |
Balances, shares at Dec. 31, 2011 | ' | 116,023,000 | ' | ' | ' |
Net loss | -53,782 | 0 | 0 | -53,782 | 0 |
Other comprehensive income (loss) | 17 | 0 | 0 | 0 | 17 |
Issuance of common stock for employee stock purchase plan, value | 4,284 | 0 | 4,284 | 0 | 0 |
Issuance of common stock for employee stock purchase plan, shares | 287,841 | 288,000 | ' | ' | ' |
Stock option exercises, value | 31,440 | 4 | 31,436 | 0 | 0 |
Stock option exercises, shares | ' | 3,399,000 | ' | ' | ' |
Share-based compensation | 25,340 | 0 | 25,340 | 0 | 0 |
Balances, value at Dec. 31, 2012 | 226,148 | 120 | 893,773 | -667,782 | 37 |
Balances, shares at Dec. 31, 2012 | 119,710,000 | 119,710,000 | ' | ' | ' |
Net loss | -62,520 | 0 | 0 | -62,520 | 0 |
Other comprehensive income (loss) | -48 | 0 | 0 | 0 | -48 |
Issuance of common stock for employee stock purchase plan, value | 4,566 | 0 | 4,566 | 0 | 0 |
Issuance of common stock for employee stock purchase plan, shares | 196,446 | 196,000 | ' | ' | ' |
Stock option exercises, value | 30,633 | 3 | 30,630 | 0 | 0 |
Stock option exercises, shares | 2,600,245 | 2,600,000 | ' | ' | ' |
Restricted stock vested during the period, net, value | 0 | 0 | 0 | 0 | 0 |
Restricted stock vested during the period, net, shares | ' | 109,000 | ' | ' | ' |
Share-based compensation | 31,406 | 0 | 31,406 | 0 | 0 |
Balances, value at Dec. 31, 2013 | $230,185 | $123 | $960,375 | ($730,302) | ($11) |
Balances, shares at Dec. 31, 2013 | 122,615,000 | 122,615,000 | ' | ' | ' |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Operating activities | ' | ' | ' |
Net loss | ($62,520) | ($53,782) | ($152,030) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities | ' | ' | ' |
Share-based compensation | 31,406 | 25,340 | 19,984 |
Depreciation and amortization | 8,615 | 6,159 | 4,170 |
Amortization of premiums, accretion of discounts and gain (loss) on investments | 1,883 | 2,574 | 12,474 |
Deferred rent and other long-term liabilities | -606 | 716 | 2,247 |
Changes in operating assets and liabilities | ' | ' | ' |
Interest receivable | 302 | -252 | 141 |
Accounts receivable, net | 3,935 | 21,512 | -35,676 |
Inventories | 10,674 | -28,278 | -9,469 |
Prepaid expenses and other assets | -2,119 | -1,299 | -1,574 |
Accounts payable and accrued liabilities | 1,493 | 3,082 | 27,265 |
Deferred revenue | 5,827 | 35,109 | 8,437 |
Net cash provided by (used in) operating activities | -1,110 | 10,881 | -124,031 |
Investing activities | ' | ' | ' |
Purchases of securities available for sale | -483,182 | -505,066 | -479,389 |
Proceeds from maturities of securities available for sale | 480,700 | 425,151 | 498,959 |
Proceeds from sales of securities available for sale | 0 | 10,824 | 0 |
Purchases of property and equipment | -22,154 | -10,485 | -11,252 |
Investments in other non-current assets | 0 | 0 | -5,764 |
Net cash provided by (used in) investing activities | -24,636 | -79,576 | 2,554 |
Financing activities | ' | ' | ' |
Net proceeds from issuance of common stock | 0 | 0 | 168,053 |
Proceeds from exercise of stock options, warrants and employee stock purchase plan | 35,199 | 35,724 | 19,931 |
Net cash provided by financing activities | 35,199 | 35,724 | 187,984 |
Net increase (decrease) in cash and cash equivalents | 9,453 | -32,971 | 66,507 |
Cash and cash equivalents at beginning of year | 54,663 | 87,634 | 21,127 |
Cash and cash equivalents at end of year | $64,116 | $54,663 | $87,634 |
Basis_of_Presentation_and_Summ
Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||
Basis of Presentation and Summary of Significant Accounting Policies | ' | ||||||||||||
1. Basis of presentation and summary of significant accounting policies | |||||||||||||
Basis of presentation | |||||||||||||
The accompanying consolidated financial statements reflect the accounts of Seattle Genetics, Inc. and its wholly-owned subsidiary, Seattle Genetics UK, Ltd. (collectively “Seattle Genetics” or the “Company”). The Company is a biotechnology company focused on the development and commercialization of targeted therapies for the treatment of cancer. The Company operates in one reporting segment: the development and commercialization of pharmaceutical products on its own behalf or in collaboration with others. The Company began to recognize product sales and cost of sales following the accelerated approval of ADCETRIS by the U.S Food and Drug Administration, or FDA, in August 2011. | |||||||||||||
Capital Requirements | |||||||||||||
To execute the Company’s growth plans, it may need to seek additional funding through public or private financings, including debt or equity financings, and through other means, including collaborations and license agreements. If the Company cannot maintain adequate funds, it may be required to delay, reduce the scope of or eliminate one or more of its development programs. Additional financing may not be available when needed, or if available, the Company may not be able to obtain financing on favorable terms. | |||||||||||||
Use of estimates | |||||||||||||
The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America, or GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and the disclosure of contingent assets and liabilities at the date of the financial statements, and that affect the reported amounts of revenues, costs and expenses during the reporting period. Actual results could differ from those estimates. | |||||||||||||
Cash and cash equivalents | |||||||||||||
The Company considers all highly liquid investments with maturities of three months or less at the date of acquisition to be cash equivalents. | |||||||||||||
Non-cash investing activities | |||||||||||||
The Company had $1.7 million of accrued capital expenditures as of December 31, 2013. This amount has been treated as a non-cash investing activity and, accordingly, has not been included in the statement of cash flows for the period ended December 31, 2013. | |||||||||||||
Investments | |||||||||||||
The Company classifies its securities as available-for-sale, which are reported at estimated fair value with unrealized gains and losses included in accumulated other comprehensive income in stockholders’ equity. Realized gains, realized losses and declines in the value of securities judged to be other-than-temporary, are included in investment and other income (loss), net. The cost of investments for purposes of computing realized and unrealized gains and losses is based on the specific identification method. Amortization of premiums and accretion of discounts are included in investment and other income (loss), net. Interest and dividends earned on all securities are included in investment and other income (loss), net. Investments in securities with maturities of less than one year, or where management’s intent is to use the investments to fund current operations, or to make them available for current operations, are classified as short-term investments. | |||||||||||||
If the estimated fair value of a security is below its carrying value, the Company evaluates whether it is more likely than not that it will sell the security before its anticipated recovery in market value and whether evidence indicating that the cost of the investment is recoverable within a reasonable period of time outweighs evidence to the contrary. The Company also evaluates whether or not it intends to sell the investment. If the impairment is considered to be other-than-temporary, the security is written down to its estimated fair value. In addition, the Company considers whether credit losses exist for any securities. A credit loss exists if the present value of cash flows expected to be collected is less than the amortized cost basis of the security. Other-than-temporary declines in estimated fair value and credit losses are charged against investment and other income (loss), net. | |||||||||||||
Inventories | |||||||||||||
The Company considers regulatory approval of product candidates to be uncertain. Accordingly, it charges manufacturing costs to research and development expense until such time as a product has received regulatory approval for commercial sale. The Company began capitalizing ADCETRIS production costs into inventory following its accelerated approval by the FDA in August 2011. ADCETRIS inventory that is deployed for clinical, research or development use is charged to research and development expense when it is no longer available for commercial sales. Production costs for the Company’s other product candidates continue to be charged to research and development expense. | |||||||||||||
The Company values its inventories at the lower of cost or market value. Cost is determined on a specific identification basis. Inventory includes the cost of materials, third-party contract manufacturing and overhead associated with the production of ADCETRIS. In the event that the Company identifies excess, obsolete or unsalable inventory, its value is written down to net realizable value. | |||||||||||||
Property and equipment | |||||||||||||
Property and equipment are stated at cost and are depreciated using the straight-line method over the estimated useful lives of the assets, which are generally as follows: | |||||||||||||
Years | |||||||||||||
Laboratory equipment | 5 | ||||||||||||
Furniture and fixtures | 5 | ||||||||||||
Computers, software and office equipment | 3 | ||||||||||||
Leasehold improvements are amortized over the shorter of the remaining lease term of the applicable lease or the useful life of the asset. Gains and losses from the disposal of property and equipment are reflected in the consolidated statement of comprehensive loss at the time of disposition and have not been significant. Expenditures for additions and improvements to the Company’s facilities are capitalized and expenditures for maintenance and repairs are charged to expense as incurred. Concessions received by the Company in connection with leases, including tenant improvement allowances and prorated rent, are deferred and recognized as a reduction in rent expense over the term of the applicable lease. | |||||||||||||
Impairment of long-lived assets | |||||||||||||
The Company assesses the impairment of long-lived assets, primarily property and equipment and intangible assets, included in other non-current assets, whenever events or changes in business circumstances indicate that the carrying amounts of the assets may not be fully recoverable. When such events occur, management determines whether there has been an impairment in value by comparing the asset’s carrying value with its fair value, as measured by the anticipated undiscounted net cash flows of the asset. If an impairment in value exists, the asset is written down to its estimated fair value. The Company has not recognized any impairment losses through December 31, 2013 as there have been no events warranting an impairment analysis. Our long-lived assets are located in the United States. | |||||||||||||
Revenue recognition | |||||||||||||
The Company’s revenues are comprised of ADCETRIS net product sales, amounts earned under its collaboration and licensing agreements and royalties. Revenue recognition is predicated upon persuasive evidence of an agreement existing, delivery of products or services being rendered, amounts payable being fixed or determinable, and collectibility being reasonably assured. | |||||||||||||
Net product sales | |||||||||||||
The Company sells ADCETRIS through a limited number of pharmaceutical distributors in the U.S. and Canada. Customers order ADCETRIS through these distributors and the Company typically ships product directly to the customer. The Company records product sales when title and risk of loss pass, which generally occurs upon delivery of the product to the customer. Product sales are recorded net of estimated government-mandated rebates and chargebacks, distribution fees, estimated product returns and other deductions. Accruals are established for these deductions and actual amounts incurred are offset against applicable accruals. The Company reflects these accruals as either a reduction in the related account receivable from the distributor, or as an accrued liability depending on the nature of the sales deduction. Sales deductions are based on management’s estimates that consider payer mix in target markets, industry benchmarks and experience to date. These estimates involve a substantial degree of judgment. | |||||||||||||
Government-mandated rebates and chargebacks: The Company has entered into a Medicaid Drug Rebate Agreement, or MDRA, with the Centers for Medicare & Medicaid Services. This agreement provides for a rebate to participating states based on covered purchases of ADCETRIS. Medicaid rebates are invoiced to the Company by participating states. The Company estimates Medicaid rebates based on a third party study of the payer mix for ADCETRIS, information on utilization by Medicaid-eligible patients who received assistance through SeaGen Secure®, the Company’s patient assistance program, and experience to date. The Company has also completed a Federal Supply Schedule, or FSS, agreement under which certain U.S. government purchasers receive a discount on eligible purchases of ADCETRIS. The Company has entered into a Pharmaceutical Pricing Agreement with the Secretary of Health and Human Services, which enables certain entities that qualify for government pricing under the Public Health Services Act, or PHS, to receive discounts on their qualified purchases of ADCETRIS. Under these agreements, distributors process a chargeback to the Company for the difference between wholesale acquisition cost and the applicable discounted price. As a result of the Company’s direct-ship distribution model, it can determine the entities purchasing ADCETRIS and this information enables the Company to estimate expected chargebacks for FSS and PHS purchases based on each entity’s eligibility for the FSS and PHS programs. The Company also reviews historical rebate and chargeback information to further refine these estimates. | |||||||||||||
Distribution fees, product returns and other deductions: The Company’s distributors charge a fee for distribution services that they perform on behalf of the Company which is determined based on sales volume to each distributor. The Company allows for the return of product that is within 30 days of its expiration date or that is damaged. The Company estimates product returns based on its experience to date and historical industry information of return rates for other specialty pharmaceutical products. In addition, the Company considers its direct-ship distribution model, its belief that product is typically not held in the distribution channel, and the expected rapid use of the product by healthcare providers. The Company provides financial assistance to qualifying patients that are underinsured or cannot cover the cost of commercial coinsurance amounts through SeaGen Secure. SeaGen Secure is available to patients in the U.S. and its territories who meet various financial need criteria. Estimated contributions for commercial coinsurance under SeaGen Secure are deducted from gross sales and are based on an analysis of expected plan utilization. These estimates are adjusted as necessary to reflect the Company’s actual experience. | |||||||||||||
Collaboration and license agreement revenues | |||||||||||||
The Company licenses its intellectual property to third parties that use the intellectual property to develop product candidates. If there are continuing performance obligations, the Company uses a time-based proportional performance model to recognize revenue over the Company’s performance period for the related agreement. Collaboration and license agreements are evaluated to determine whether the multiple elements and associated deliverables can be considered separate units of accounting. To date, the deliverables under the Company’s collaboration and license agreements have not qualified as separate units of accounting. The assessment of multiple element arrangements requires judgment in order to determine the appropriate point in time, or period of time, that revenue should be recognized. The Company believes that the development period used in each agreement is a reasonable estimate of the performance obligation period of such agreement. Accordingly, all amounts received or due, including any upfront payments, maintenance fees, development and regulatory milestone payments and reimbursement payments, are recognized as revenue over the performance obligation periods of each agreement, which range from two to fourteen years for the Company’s current agreements. When no performance obligations are required of the Company, or following the completion of the performance obligation period, such amounts are recognized as revenue when collectibility is reasonably assured. The collaboration with Takeda also includes royalties and sales-based milestones which are classified as royalty revenues. | |||||||||||||
The Company’s collaboration and license agreements include contractual milestones. Generally, the milestone events contained in the Company’s collaboration and license agreements coincide with the progression of the collaborators’ product candidates from development, to regulatory approval and then to commercialization and fall into the following categories. | |||||||||||||
Development milestones in the Company’s collaborations may include the following types of events: | |||||||||||||
• | Designation of a product candidate or initiation of preclinical studies. The Company’s collaborators must undertake significant preclinical research and studies to make a determination of the suitability of a product candidate and the time from those studies or designation to initiation of a clinical trial may take several years. | ||||||||||||
• | Initiation of a phase 1 clinical trial. Generally, phase 1 clinical trials may take one to two years to complete. | ||||||||||||
• | Initiation of a phase 2 clinical trial. Generally, phase 2 clinical trials may take one to three years to complete. | ||||||||||||
• | Initiation of a phase 3 clinical trial. Generally, phase 3 clinical trials may take two to six years to complete. | ||||||||||||
Regulatory milestones in the Company’s collaborations may include the following types of events: | |||||||||||||
• | Filing of regulatory applications for marketing approval such as a Biologics License Application in the United States or a Marketing Authorization Application in Europe. Generally, it may take up to twelve months to prepare and submit regulatory filings. | ||||||||||||
• | Receiving marketing approval in a major market, such as in the United States, Europe, Japan or other significant countries. Generally it may take up to three years after a marketing application is submitted to obtain full approval for marketing and pricing from the applicable regulatory agency. | ||||||||||||
Commercialization milestones in the Company’s collaborations may include the following types of events: | |||||||||||||
• | First commercial sale in a particular market, such as in the United States, Europe, Japan or other significant countries. | ||||||||||||
• | Product sales in excess of a pre-specified threshold. The amount of time to achieve this type of milestone depends on several factors, including, but not limited to, the dollar amount of the threshold, the pricing of the product, market penetration of the product and the rate at which customers begin using the product. | ||||||||||||
The Company has developed a proprietary technology for linking cytotoxic agents to monoclonal antibodies called antibody-drug conjugates, or ADCs. This proprietary technology is the basis of ADC collaborations that the Company has entered into in the ordinary course of its business with a number of biotechnology and pharmaceutical companies. Under these ADC collaboration agreements, the Company grants its collaborators research and commercial licenses to the Company’s technology and provides technology transfer services, technical advice, supplies and services for a period of time of between two and fourteen years. The Company’s ADC collaborators are solely responsible for the development of their product candidates and the achievement of milestones in any of the categories identified above is based solely on the collaborators’ efforts. | |||||||||||||
In the case of the Company’s ADCETRIS collaboration with Takeda Pharmaceutical Company Limited (“Takeda”), the Company may be involved in certain development activities; however, the achievement of development, regulatory and commercial milestone events under the agreement is based on activities undertaken by Takeda. | |||||||||||||
The process of successfully developing a product candidate, obtaining regulatory approval and ultimately commercializing a product candidate is highly uncertain and the attainment of any milestones is therefore uncertain and difficult to predict. In addition, since the Company does not take a substantive role or control the research, development or commercialization of any products generated by its ADC collaborators, the Company is not able to reasonably estimate when, if at all, any milestone payments or royalties may be payable to the Company by its ADC collaborators. As such, the milestone payments associated with its ADC collaborations involve a substantial degree of uncertainty and risk that they may never be received. Similarly, even in those collaborations where the Company may have an active role in the development of the product candidate, such as the Company’s ADCETRIS collaboration with Takeda, the attainment of a milestone is based on the collaborator’s activities and is generally outside the direction and control of the Company. | |||||||||||||
The Company generally invoices its collaborators and licensees on a monthly or quarterly basis, or upon the completion of the effort or achievement of a milestone, based on the terms of each agreement. Deferred revenue arises from amounts received in advance of the culmination of the earnings process and is recognized as revenue in future periods when the applicable revenue recognition criteria have been met. Deferred revenue expected to be recognized within the next twelve months is classified as a current liability. | |||||||||||||
Royalty revenues and cost of royalty revenues | |||||||||||||
Royalty revenues reflect amounts earned under the ADCETRIS collaboration with Takeda. Royalties are based on a percentage of Takeda’s net sales at rates that range from the mid-teens to the mid-twenties based on sales volume. Takeda bears a portion of third party royalty costs owed on its sales of ADCETRIS. This amount is included in royalty revenue in our consolidated financial statements. Cost of royalty revenues reflects amounts owed to the Company’s third party licensors related to Takeda’s sales of ADCETRIS. These amounts are recognized in the quarter in which Takeda reports its sales activity to the Company, which is the quarter following the related sales. | |||||||||||||
Research and development expenses | |||||||||||||
Research and development, or R&D, expenses consist of salaries, benefits and other headcount related costs of the Company’s R&D staff, preclinical activities, clinical trials and related manufacturing costs, lab supplies, contract and outside service fees and facilities and overhead expenses for research, development and preclinical studies focused on drug discovery, development and testing. Clinical trial expenses are a significant component of research and development expenses, and the Company outsources a significant portion of these costs to third parties. Third party clinical trial expenses include investigator fees, site costs, clinical research organization costs, and costs for central laboratory testing and data management. R&D activities are expensed as incurred. In-licensing fees, milestones, maintenance fees and other costs to acquire technologies that are utilized in R&D for product candidates that have not yet received regulatory approval, and that are not expected to have alternative future use are expensed when incurred. Costs associated with activities performed under co-development collaborations are reflected in R&D expense. Non-refundable advance payments for goods or services that will be used or rendered for future R&D activities are capitalized and recognized as expense as the related goods are delivered or the related services are performed. This results in the temporary deferral of charges to expense of amounts incurred for research and development activities from the time payments are made until the time goods or services are provided. | |||||||||||||
Advertising | |||||||||||||
Advertising costs are expensed as incurred. The Company incurred $11.1 million, $13.0 million and $10.7 million in advertising expense during 2013, 2012 and 2011, respectively. | |||||||||||||
Fair value of financial instruments | |||||||||||||
The recorded amounts of certain financial instruments, including cash and cash equivalents, interest receivable, accounts receivable, accounts payable and accrued liabilities approximate fair value due to their relatively short maturities. Investments that are classified as available-for-sale are recorded at fair value. The fair value for securities held is determined using quoted market prices, broker or dealer quotations, or alternative pricing sources with reasonable levels of price transparency. | |||||||||||||
Concentration of credit risk | |||||||||||||
Cash, cash equivalents and investments are invested in accordance with the Company’s investment policy. The policy includes guidelines for the investment of cash reserves and is reviewed periodically to minimize credit risk. Most of the Company’s investments are not federally insured. The Company has accounts receivable from the sale of ADCETRIS from a small number of distributors. The Company does not require collateral on amounts due from its distributors or its collaborators and is therefore subject to credit risk. The Company has not experienced any significant credit losses to date as a result of credit risk concentration and does not consider an allowance for doubtful accounts to be necessary. | |||||||||||||
Major customers | |||||||||||||
The Company sells ADCETRIS through a limited number of distributors. Certain of these distributors, together with entities under their common control, each individually accounted for greater than 10% of total revenues and greater than 10% of accounts receivable as noted below. In addition, one of the Company’s collaborators accounted for greater than 10% of total revenues or accounts receivable for certain periods as noted below. Revenues generated outside the United States as determined by customer location were less than 10% of total revenues for all years presented. | |||||||||||||
The following table presents each major distributor or collaborator that comprised more than 10% of total revenue in the periods presented: | |||||||||||||
Percent of total revenues | |||||||||||||
for the years ended | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Distributor A | 18 | % | 22 | % | 16 | % | |||||||
Distributor B | 18 | % | 21 | % | 10 | % | |||||||
Distributor C | 15 | % | 19 | % | 17 | % | |||||||
Collaborator A | 22 | % | 19 | % | 29 | % | |||||||
The following table presents each major distributor or collaborator that accounted for more than 10% of accounts receivable as of the dates presented: | |||||||||||||
Percent of total accounts | |||||||||||||
receivable at | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Distributor A | 30 | % | 25 | % | |||||||||
Distributor B | 31 | % | 20 | % | |||||||||
Distributor C | 23 | % | 16 | % | |||||||||
Collaborator A | <10 | % | 31 | % | |||||||||
Major suppliers | |||||||||||||
The use of a relatively small number of contract manufacturers to supply drug product necessary for the Company’s commercial operations and clinical trials creates a concentration of risk for the Company. While primarily one source of supply is utilized for each component of ADCETRIS and the Company’s product candidates, other sources are available should the Company need to change suppliers. The Company also endeavors to maintain reasonable levels of drug supply for its use. A change in suppliers, however, could cause a delay in delivery of drug product which could result in the interruption of commercial operations or clinical trials. Such an event would adversely affect the Company’s business. | |||||||||||||
Other non-current assets | |||||||||||||
Other non-current assets include intangible assets resulting from milestone payments due upon the approval of ADCETRIS related to certain in-licensed technology. These amounts are amortized to cost of sales over the estimated life of the related licenses which range from six to ten years. Other non-current assets also include deposits and $0.3 million of investments pledged as security on an operating lease. The Company revised the classification of certain non-current asset amounts in the statement of cash flows totaling $0.6 million for the year ended December 31, 2012 from investing activities to operating activities to conform to the presentation of similar amounts in 2013. | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Intangible assets | $ | 5,650 | $ | 5,650 | |||||||||
Less: accumulated amortization | (1,801 | ) | (1,030 | ) | |||||||||
Total | $ | 3,849 | $ | 4,620 | |||||||||
Amortization expenses on intangible assets totaled $0.8 million, $0.8 million, and $0.3 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||
Income taxes | |||||||||||||
The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Deferred tax assets and liabilities are determined based on the differences between the financial statement and tax bases of assets and liabilities using tax rates in effect for the year in which the differences are expected to reverse. A valuation allowance is recorded when it is more likely than not that the net deferred tax asset will not be realized. The Company has provided a full valuation allowance against its deferred tax assets for all periods presented. | |||||||||||||
Share-based compensation | |||||||||||||
The Company uses the graded-vesting attribution method for recognizing compensation expense for its stock options and the straight-line method for recognizing compensation expense for its restricted stock units (“RSUs”). Compensation expense is recognized on awards ultimately expected to vest and reduced for forfeitures that are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. | |||||||||||||
Comprehensive loss | |||||||||||||
Comprehensive loss is the change in stockholders’ equity from transactions and other events and circumstances other than those resulting from investments by stockholders and distributions to stockholders. The Company’s comprehensive loss is comprised of net loss and unrealized gains and losses on investments. | |||||||||||||
Legal matters | |||||||||||||
In the normal course of its business, the Company may become involved in various legal proceedings. The Company does not expect any current legal proceedings to have a material adverse effect on the Company’s business. Legal fees incurred as a result of the Company’s involvement in legal proceedings are expensed as incurred. | |||||||||||||
Certain risks and uncertainties | |||||||||||||
The Company’s revenues are derived from ADCETRIS sales and royalties and from collaboration and license agreements. ADCETRIS is the Company’s only product available for sale and is subject to regulation by the FDA in the United States and other regulatory agencies outside the United States as well as competition by other pharmaceutical companies. The Company’s collaboration and license agreement revenues are derived from a relatively small number of agreements. Each of these agreements can be terminated by the Company’s collaborators at their discretion. The Company is also subject to risks common to companies in the pharmaceutical industry, including risks and uncertainties related to commercial success and acceptance of ADCETRIS and the Company’s potential future products by patients, physicians and payers, competition from other products, regulatory approvals, regulatory requirements and protection of intellectual property. Also, drug development is a lengthy process characterized by a relatively low rate of success. The Company may commit substantial resources toward developing product candidates that never result in further development, achieve regulatory approvals or achieve commercial success. Likewise, the Company has committed and expects to continue to commit substantial resources towards additional clinical development of ADCETRIS in an effort to expand ADCETRIS’ labeled indications of use, and there can be no assurance that the Company and/or Takeda will obtain and maintain the necessary regulatory approvals to market ADCETRIS for any additional indications. | |||||||||||||
Guarantees | |||||||||||||
In the normal course of business, the Company indemnifies its directors, certain employees and other parties, including distributors, collaboration partners, lessors and other parties that perform certain work on behalf of, or for the Company or take licenses to the Company’s technologies. The Company has agreed to hold these parties harmless against losses arising from the Company’s breach of representations or covenants, intellectual property infringement or other claims made against these parties in performance of their work with the Company. These agreements typically limit the time within which the party may seek indemnification by the Company and the amount of the claim. It is not possible to prospectively determine the maximum potential amount of liability under these indemnification agreements. Further, each potential claim would be based on the unique facts and circumstances of the claim and the particular provisions of each agreement. | |||||||||||||
Net loss per share | |||||||||||||
Basic and diluted net loss per share is computed by dividing net loss by the weighted average number of common shares outstanding during the period. The Company excluded all restricted stock units, warrants and options to purchase common stock from the calculation of diluted net loss per share as such securities are anti-dilutive for all periods presented. | |||||||||||||
The following table presents the weighted-average shares that have been excluded from the number of shares used to calculate basic and diluted net loss per share (in thousands): | |||||||||||||
Years ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Warrants to purchase common stock | 0 | 0 | 991 | ||||||||||
Stock options and restricted stock units | 11,745 | 13,483 | 13,236 | ||||||||||
Total | 11,745 | 13,483 | 14,227 | ||||||||||
Recent accounting pronouncements | |||||||||||||
In February 2013, the Financial Accounting Standards Board, or FASB, issued “ASU 2013-2 Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income” that revises the disclosure requirements related to significant reclassifications of items out of accumulated other comprehensive income and into the line items included in net income. The Company adopted this standard in the first quarter of 2013 and its adoption did not impact the consolidated financial statements. | |||||||||||||
In July 2013, the FASB issued “ASU 2013-11 Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists” that provides for disclosure requirements related to unrecognized tax benefits in certain situations. The Company will adopt this standard in the first quarter of 2014 and does not expect the adoption of this standard to have an impact on its consolidated financial statements. |
ShortTerm_Investments
Short-Term Investments | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Investments Debt And Equity Securities [Abstract] | ' | ||||||||||||||||
Short-Term Investments | ' | ||||||||||||||||
2. Short-term investments | |||||||||||||||||
Short-term investments consisted of available-for-sale securities as follows (in thousands): | |||||||||||||||||
Amortized | Gross | Gross | Fair | ||||||||||||||
cost | unrealized | unrealized | value | ||||||||||||||
gains | losses | ||||||||||||||||
December 31, 2013 | |||||||||||||||||
U.S. Treasury securities | $ | 310,162 | $ | 7 | $ | (18 | ) | $ | 310,151 | ||||||||
Contractual Maturities | |||||||||||||||||
Due in one year or less | $ | 310,162 | $ | 310,151 | |||||||||||||
Amortized | Gross | Gross | Fair | ||||||||||||||
cost | unrealized | unrealized | value | ||||||||||||||
gains | losses | ||||||||||||||||
December 31, 2012 | |||||||||||||||||
U.S. Treasury securities | $ | 309,558 | $ | 42 | $ | (5 | ) | $ | 309,595 | ||||||||
Contractual Maturities | |||||||||||||||||
Due in one year or less | $ | 309,558 | $ | 309,595 | |||||||||||||
The aggregate estimated fair value of the Company’s investments with unrealized losses was as follows (in thousands): | |||||||||||||||||
Period of continuous unrealized loss | |||||||||||||||||
12 Months or less | Greater than 12 months | ||||||||||||||||
Fair | Gross | Fair | Gross | ||||||||||||||
value | unrealized | value | unrealized | ||||||||||||||
losses | losses | ||||||||||||||||
December 31, 2013 | |||||||||||||||||
U.S. Treasury securities | $ | 188,599 | $ | (18 | ) | $ | NA | $ | NA | ||||||||
December 31, 2012 | |||||||||||||||||
U.S. Treasury securities | $ | 76,015 | $ | (5 | ) | $ | NA | $ | NA | ||||||||
Fair_Value
Fair Value | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Fair Value | ' | ||||||||||||||||
3. Fair Value | |||||||||||||||||
The Company holds short-term available-for-sale securities that are measured at fair value which is determined on a recurring basis according to a fair value hierarchy that prioritizes the inputs and assumptions used, and the valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described as follows: | |||||||||||||||||
Level 1: | Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. | ||||||||||||||||
Level 2: | Quoted prices in markets that are not active or financial instruments for which all significant inputs are observable, either directly or indirectly. | ||||||||||||||||
Level 3: | Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable. | ||||||||||||||||
The determination of a financial instrument’s level within the fair value hierarchy is based on an assessment of the lowest level of any input that is significant to the fair value measurement. The Company considers observable data to be market data which is readily available, regularly distributed or updated, reliable and verifiable, not proprietary, and provided by independent sources that are actively involved in the relevant market. | |||||||||||||||||
Level 1 investments, which include investments that are valued based on quoted market prices in active markets, consisted of U.S. Treasury securities. The Company did not hold any Level 2 or 3 investments as of December 31, 2013 or 2012 and did not transfer any investments in or out of Levels 1, 2 and 3 during the years ended December 31, 2013 or 2012. | |||||||||||||||||
The following table presents the Company’s available-for-sale securities by level within the fair value hierarchy (in thousands): | |||||||||||||||||
Fair value measurement using: | |||||||||||||||||
Quoted prices | Other | Significant | Total | ||||||||||||||
in active | observable | unobservable | |||||||||||||||
markets for | inputs | inputs | |||||||||||||||
identical | (Level 2) | (Level 3) | |||||||||||||||
assets | |||||||||||||||||
(Level 1) | |||||||||||||||||
As of December 31, 2013 | |||||||||||||||||
Short-term investments—U.S. Treasury securities | $ | 310,151 | $ | 0 | $ | 0 | $ | 310,151 | |||||||||
Fair value measurement using: | |||||||||||||||||
Quoted prices | Other | Significant | Total | ||||||||||||||
in active | observable | unobservable | |||||||||||||||
markets for | inputs | inputs | |||||||||||||||
identical | (Level 2) | (Level 3) | |||||||||||||||
assets | |||||||||||||||||
(Level 1) | |||||||||||||||||
As of December 31, 2012 | |||||||||||||||||
Cash equivalents—U.S. Treasury securities | $ | 10,016 | $ | 0 | $ | 0 | $ | 10,016 | |||||||||
Short-term investments—U.S. Treasury securities | 309,595 | 0 | 0 | 309,595 | |||||||||||||
Total | $ | 319,611 | $ | 0 | $ | 0 | $ | 319,611 | |||||||||
In 2011, the Company recorded an $8.7 million realized loss related to an other-than-temporary impairment in the value of its auction rate securities. This resulted in a new carrying value of $5.8 million as of December 31, 2011. The Company sold these securities in 2012 for $5.8 million. |
Inventories
Inventories | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Inventories | ' | ||||||||
4. Inventories | |||||||||
The following table presents the Company’s inventories of ADCETRIS (in thousands): | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Raw materials | $ | 25,386 | $ | 32,293 | |||||
Work in process | 431 | 4,605 | |||||||
Finished goods | 1,256 | 849 | |||||||
Total | $ | 27,073 | $ | 37,747 | |||||
Property_and_Equipment
Property and Equipment | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Property Plant And Equipment [Abstract] | ' | ||||||||
Property and Equipment | ' | ||||||||
5. Property and equipment | |||||||||
Property and equipment consisted of the following (in thousands): | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Leasehold improvements | $ | 40,217 | $ | 25,650 | |||||
Laboratory equipment | 22,866 | 16,768 | |||||||
Computers, software and office equipment | 8,654 | 7,158 | |||||||
Furniture and fixtures | 5,415 | 5,040 | |||||||
77,152 | 54,616 | ||||||||
Less: accumulated depreciation and amortization | (36,365 | ) | (29,864 | ) | |||||
Total | $ | 40,787 | $ | 24,752 | |||||
Depreciation and amortization expenses on property and equipment totaled $7.8 million, $5.4 million, and $3.9 million for the years ended December 31, 2013, 2012 and 2011, respectively. Leasehold improvements included $4.5 million of construction in process at December 31, 2013. |
Accounts_Payable_and_Accrued_L
Accounts Payable and Accrued Liabilities | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Payables And Accruals [Abstract] | ' | ||||||||
Accounts Payable and Accrued Liabilities | ' | ||||||||
6. Accounts payable and accrued liabilities | |||||||||
Accounts payable and accrued liabilities consisted of the following (in thousands): | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Compensation and benefits | $ | 18,321 | $ | 16,228 | |||||
Trade accounts payable | 13,407 | 12,864 | |||||||
Clinical trial and companion diagnostic costs | 12,602 | 10,442 | |||||||
Contract manufacturing | 6,997 | 8,371 | |||||||
Third-party royalties and government rebates | 6,074 | 5,000 | |||||||
Other | 1,947 | 3,225 | |||||||
Total | $ | 59,348 | $ | 56,130 | |||||
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Income Taxes | ' | ||||||||||||
7. Income taxes | |||||||||||||
Because of the Company’s history of net operating losses, it has not paid income taxes since its inception and the Company had no material unrecognized tax benefits that could affect the Company’s financial statements as of December 31, 2013 or 2012. | |||||||||||||
The Company’s deferred tax assets primarily consist of net operating loss, or NOL, carryforwards, deferred revenue, capitalized research and development expense and tax credit carryforwards. Realization of deferred tax assets is dependent upon a number of factors, including future earnings, the timing and amount of which is uncertain. Accordingly, the deferred tax assets have been fully offset by a valuation allowance. At December 31, 2013, the Company has NOL carryforwards of $467.6 million expiring from 2018 to 2033 if not utilized, and tax credit carryforwards of $44.1 million expiring from 2021 to 2033. | |||||||||||||
Utilization of the NOL and tax credit carryforwards may be subject to a substantial annual limitation in the event of a change in ownership as set forth in Section 382 of the Internal Revenue Code of 1986, as amended. It is possible that there has been, or in the future will be, a change in ownership, which would limit the amount of NOL available to be used in the future. Any limitation may result in the expiration of the NOL and tax credit carryforwards before utilization. | |||||||||||||
The Company’s net deferred tax assets consisted of the following (in thousands): | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Deferred tax assets | |||||||||||||
Net operating loss carryforwards | $ | 132,419 | $ | 123,672 | |||||||||
Deferred revenue | 60,810 | 51,128 | |||||||||||
Tax credit carryforwards | 44,055 | 33,043 | |||||||||||
Share-based compensation | 16,463 | 12,722 | |||||||||||
Capitalized research and development | 11,489 | 16,311 | |||||||||||
Depreciation and amortization | 2,864 | 2,424 | |||||||||||
Other | 12,360 | 11,274 | |||||||||||
Total deferred tax assets | 280,460 | 250,574 | |||||||||||
Less: valuation allowance | (280,460 | ) | (250,574 | ) | |||||||||
Net deferred tax assets | $ | 0 | $ | 0 | |||||||||
Increases in the valuation allowance were $29.9 million in 2013 and $18.6 million in 2012. | |||||||||||||
A reconciliation of the federal statutory income tax rate to the effective income tax rate is as follows: | |||||||||||||
Years ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Statutory federal income tax rate | (35 | %) | (35 | %) | (35 | %) | |||||||
Tax credits | (16 | ) | (3 | ) | (3 | ) | |||||||
State income taxes and other | 3 | 3 | 1 | ||||||||||
Valuation allowance | 48 | 35 | 37 | ||||||||||
Effective tax rate | 0 | % | 0 | % | 0 | % | |||||||
The Company does not anticipate any significant changes to its unrecognized tax positions or benefits during the next twelve months. Interest and penalties related to the settlement of uncertain tax positions, if any, will be reflected in income tax expense. Tax years 1998 to 2013 remain subject to future examination for federal income taxes. |
Collaboration_and_License_Agre
Collaboration and License Agreements | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ' | ||||||||||||
Collaboration and License Agreements | ' | ||||||||||||
8. Collaboration and license agreements | |||||||||||||
The Company has entered into various product, collaboration and license agreements with pharmaceutical and biotechnology companies. Revenues recognized under these agreements were as follows (in thousands): | |||||||||||||
Years ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Takeda ………………………. | $ | 41,529 | $ | 36,021 | $ | 27,914 | |||||||
AbbVie | 22,924 | 9,839 | 3,721 | ||||||||||
Bayer | 12,000 | 0 | 100 | ||||||||||
Genentech | 8,438 | 6,174 | 5,302 | ||||||||||
Agensys | 6,630 | 4,834 | 3,957 | ||||||||||
Other | 15,260 | 10,679 | 10,543 | ||||||||||
Total | $ | 106,781 | $ | 67,547 | $ | 51,537 | |||||||
Takeda | |||||||||||||
In December 2009, the Company entered into a collaboration agreement with Takeda to develop and commercialize ADCETRIS. Under this collaboration, the Company has retained commercial rights for ADCETRIS in the United States and its territories and in Canada, and Takeda has commercial rights in the rest of the world. The collaboration includes the global development of ADCETRIS and commercialization of ADCETRIS by Takeda in its territory. The Company received an upfront payment of $60 million and is entitled to receive progress- dependent milestone payments based on the achievement by Takeda of specific events related to ADCETRIS development for which Takeda is responsible. As of December 31, 2013, the Company had received $30 million in milestone payments under the collaboration related to Takeda achieving specific regulatory and approval milestones for ADCETRIS in its territory. The Company and Takeda each fund 50% of worldwide joint development costs performed under the collaboration. In Japan, Takeda is solely responsible for development costs. Costs incurred by the Company associated with co-development activities performed under this collaboration are included in research and development expense in the accompanying consolidated statements of comprehensive loss. The upfront fee and other payments received were deferred and are being recognized as revenue over the performance obligation period of the collaboration agreement, currently estimated as ten years, using a time-based approach. The Company is also entitled to receive royalties based on a percentage of Takeda’s net sales of ADCETRIS in its territory ranging from the mid-teens to the mid-twenties based on sales volume and sales-based milestones. Royalties and sales-based milestones are classified as royalty revenues. Takeda also bears a portion of third party royalty costs owed on its sales of ADCETRIS. Either party may terminate the collaboration agreement if the other party materially breaches the agreement and such breach remains uncured. Takeda may terminate the collaboration agreement for any reason upon prior written notice to the Company, and the Company may terminate the collaboration agreement in certain circumstances. The collaboration agreement can also be terminated by mutual written consent of the parties. If neither party terminates the collaboration agreement, then the agreement automatically terminates on the expiration of all payment obligations. | |||||||||||||
Other ADC collaboration agreements | |||||||||||||
The Company has entered into collaborations for its ADC technology with a number of biotechnology and pharmaceutical companies. Under these collaborations, the Company has granted research and commercial licenses to use its technology in conjunction with the collaborator’s technology. The Company also has agreed to conduct limited development activities and to provide other materials, supplies and services to its collaborators during the performance obligation period of the collaboration. The Company receives upfront fees, progress- and sales-dependent milestones for the achievement by its collaborators of certain events, annual maintenance fees and support fees for research and development services and material provided under the agreements. The Company is also entitled to receive royalties on net sales of any resulting products. The upfront fee and other payments received are deferred and recognized as revenue over the performance obligation period of the related collaboration agreement using a time-based approach. The Company’s collaboration partners are solely responsible for research, product development, manufacturing and commercialization of all products under the agreements. | |||||||||||||
Agensys | |||||||||||||
The Company has entered into an agreement with Agensys to jointly research, develop and commercialize ADCs for the treatment of cancer. The agreement included an initial co-development product candidate, ASG-5ME, and provided the Company with two options to co-develop additional product candidates. The Company has exercised all its co-development options and is currently co-developing ASG-22ME and ASG-15ME. Development of ASG-5ME has been discontinued. The Company and Agensys co-fund the development of these product candidates and will share future profits, if any, on a 50:50 basis. Either party may opt out of co-development and profit-sharing in return for receiving milestones and royalties from the continuing party. | |||||||||||||
Costs associated with co-development activities performed under this collaboration are included in research and development expense in the accompanying consolidated statements of comprehensive loss. The Agensys collaboration agreement defines a mechanism for calculating the costs of co-development activities and for reimbursing the other party in order to maintain an equal sharing of development costs. Third-party costs are billed at actual cost and internal labor and support costs are billed at a contractual rate. The following table summarizes research and development expenses incurred by the Company and funding provided to Agensys under the collaboration to achieve equal cost sharing. | |||||||||||||
Years ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Research and development expense using contractual rates | $ | 2,574 | $ | 4,885 | $ | 6,404 | |||||||
Co-development funding due to Agensys | 8,096 | 5,484 | 6,844 | ||||||||||
Total | $ | 10,670 | $ | 10,369 | $ | 13,248 | |||||||
The agreement also allows Agensys to develop and commercialize other ADC product candidates on its own, subject to paying the Company annual maintenance fees, milestones, royalties and support fees for research and development services and material provided under the agreement. Amounts received for product candidates being developed solely by Agensys are recognized in revenues as they become due. |
License_Agreements
License Agreements | 12 Months Ended |
Dec. 31, 2013 | |
Text Block [Abstract] | ' |
License Agreements | ' |
9. License agreements | |
The Company has in-licensed antibodies, targets and enabling technologies from pharmaceutical and biotechnology companies and academic institutions for use in ADCETRIS, its pipeline programs and ADC technology, including the following: | |
Bristol-Myers Squibb. In March 1998, the Company obtained rights to some of its technologies and product candidates, portions of which are exclusive, through a license agreement with Bristol-Myers Squibb. Through this license, the Company secured rights to monoclonal antibody-based cancer targeting technologies, including patents, monoclonal antibodies, chemical linkers, including the linker used in ADCETRIS and other product candidates, a ribosome-inactivating protein and enabling technologies. Under the terms of the license agreement, the Company is required to pay a low single-digit royalty on net sales of products, including ADCETRIS, that incorporate patented technology licensed from Bristol-Myers Squibb. | |
University of Miami. In September 1999, the Company entered into an exclusive license agreement with the University of Miami, Florida, covering an anti-CD30 monoclonal antibody that is the basis for the antibody component of ADCETRIS. Under the terms of this license, the Company made an upfront payment and progress-dependent milestone payments. The Company is obligated to pay annual maintenance fees and a low single-digit royalty on net sales of products, including ADCETRIS, incorporating technology licensed from the University of Miami. | |
Other Licenses. The Company has other non-exclusive licenses to other technology used in ADCETRIS that require the Company to pay royalties ranging from the low to mid-single digits on net sales of ADCETRIS. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Commitments And Contingencies Disclosure [Abstract] | ' | ||||||||
Commitments and Contingencies | ' | ||||||||
10. Commitments and contingencies | |||||||||
The Company is obligated to make future minimum payments under three operating leases for approximately 195,000 square feet of space used for general office and research and development purposes. The leases expire in 2018 and include options to renew at the then fair market rental for the facilities. | |||||||||
The lease agreements contain scheduled rent increases and provide for tenant improvement allowances. Accordingly, the Company has recorded a deferred rent liability of $5.0 million at December 31, 2013 and $5.7 million at December 31, 2012. This deferred rent liability is amortized over the term of the related lease. | |||||||||
Assuming the Company does not exercise any extensions, future minimum lease payments under all noncancelable operating leases are set forth below. In addition, noncancelable obligations under other agreements, such as future obligations related to manufacturing ADCETRIS and the Company’s product candidates, are as follows (in thousands): | |||||||||
Leases | Other | ||||||||
Agreements | |||||||||
Years ending December 31, | |||||||||
2014 | $ | 4,208 | $ | 37,329 | |||||
2015 | 4,348 | 12,854 | |||||||
2016 | 4,495 | 12,319 | |||||||
2017 | 4,639 | 12,314 | |||||||
2018 | 2,279 | 12,128 | |||||||
Thereafter | 0 | 34,420 | |||||||
$ | 19,969 | $ | 121,364 | ||||||
Rent expense attributable to noncancelable operating leases totaled approximately $3.3 million, $3.6 million and $3.5 million for the years ended December 31, 2013, 2012 and 2011, respectively. Minimum contractual payments to be made by the Company under other agreements do not include up to approximately $40.8 million in additional payments that are contingent upon achievement of certain progress-dependent milestones, as well as the payment of single-digit royalties based on net sales of commercial products. These amounts have been excluded from the table because the events triggering the obligations have not yet occurred. |
Stockholders_Equity
Stockholders' Equity | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Equity [Abstract] | ' | ||||
Stockholders' Equity | ' | ||||
11. Stockholders’ equity | |||||
Common stock | |||||
In February 2011, the Company completed an underwritten public offering of 11,500,000 shares of its common stock. The public offering price of $15.50 per share resulted in net proceeds to the Company of approximately $168.1 million, after deducting underwriting discounts and commissions and offering expenses. | |||||
In May 2011, following stockholder approval, the Company amended its Certificate of Incorporation to increase the number of authorized shares of the Company’s common stock from 150,000,000 shares to 250,000,000 shares. | |||||
At December 31, 2013, shares of common stock reserved for future issuance are as follows (in thousands): | |||||
Stock options and RSUs outstanding | 11,837 | ||||
Shares available for future grant under the 2007 Equity Incentive Plan | 2,218 | ||||
Employee stock purchase plan shares available for future issuance | 315 | ||||
Total | 14,370 | ||||
ShareBased_Compensation
Share-Based Compensation | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ||||||||||||||||||||||||
Share-Based Compensation | ' | ||||||||||||||||||||||||
12. Share-based compensation | |||||||||||||||||||||||||
2007 Equity Incentive Plan | |||||||||||||||||||||||||
In 2007, the Company adopted the 2007 Equity Incentive Plan, or the 2007 Plan, that provides for the issuance of the Company’s common stock to employees, including officers, directors and consultants of the Company and its affiliates. The Option Plan was amended and restated in May 2012 to reserve an additional 4,000,000 shares thereunder, such that an aggregate of 16,500,000 shares of the Company’s common stock were reserved for issuance under the 2007 Plan at December 31, 2012 and December 31, 2013. Under the 2007 Plan, the Company may issue stock options (including incentive stock options and nonstatutory stock options), restricted stock, restricted stock units, stock appreciation rights and other similar types of awards. No awardee may be granted, in any calendar year under the 2007 Plan, options or stock awards covering more than 1,000,000 shares. The Option Plan was also amended and restated in May 2012 to extend the term such that it will terminate in May 2022 unless it is terminated earlier pursuant to its terms. | |||||||||||||||||||||||||
In addition to stock options, stock awards under the 2007 Plan may be restricted stock grants, restricted stock units, stock appreciation rights or other similar stock awards (including awards that do not require the awardee to pay any amount in connection with receiving the shares or that have an exercise or purchase price that is less than the grant date fair market value of the Company’s stock). Restricted stock grants are awards of a specific number of shares of the Company’s common stock. RSUs represent a promise to deliver shares of the Company’s common stock, or an amount of cash or property equal to the value of the underlying shares, at a future date. Stock appreciation rights are rights to receive cash and/or shares of the Company’s common stock based on the amount by which the exercise date fair market value of a specific number of shares exceeds the grant date fair market value of the exercised portion of the stock appreciation right. The Company has only issued options to purchase shares of common stock and RSUs under the 2007 Plan. | |||||||||||||||||||||||||
Incentive stock options under the 2007 Plan may be granted only to employees of the Company or its subsidiaries. The exercise price of an incentive stock option or a nonstatutory stock option may not be less than 100% of the fair market value of the common stock on the date the option is granted and the options have a maximum term of ten years from the date of grant. In the case of options granted to holders of more than 10% of the voting power of the Company, the exercise price may not be less than 110% of the fair market value of the common stock on the date the option is granted and the term of the option may not exceed five years. The Company may grant options with exercise prices lower than the fair market value of its common stock on the date of grant in connection with an acquisition by the Company of another company. Options become exercisable in whole or in part from time to time as determined by the Board of Directors, which administers the 2007 Plan. Generally, options granted to employees and the initial grant to new members of the Company’s board of directors (“directors”) under the 2007 Plan vest 25% one year after the beginning of the vesting period and thereafter ratably each month over the following thirty-six months. In addition to their initial grant, directors also receive annual RSU and option grants that vest one year from the date of grant. The outstanding employee RSUs vest 100% on the third anniversary of the beginning of the vesting period. The Equity Plan provides for (i) the full acceleration of vesting of equity awards, including stock options and RSUs, upon a change in control (as defined in the 2007 Plan) if the successor company does not assume, substitute or otherwise replace the stock awards upon the change in control; and (ii) the full acceleration of vesting of any equity awards, including stock options and RSUs, if at the time of, immediately prior to or within twelve months after a change in control of the Company, the holder of such equity awards is involuntarily terminated without cause or is constructively terminated by the successor company that assumed, substituted or otherwise replaced such stock awards in connection with the change in control. | |||||||||||||||||||||||||
Each equity award agreement under the 2007 Plan contains provisions regarding (i) the number of shares subject to the equity award, (ii) the purchase or exercise price of the shares, if any, and the means of payment for the shares, (iii) in the case of stock options, the type of option and term of the option; (iv) the performance criteria (including qualifying performance criteria), if any, and level of achievement versus these criteria that will determine the number of shares granted, issued, retainable and vested, as applicable, (v) such terms and conditions on the grant, issuance, vesting and forfeiture of the shares, as applicable, as may be determined from time to time by the plan administrator, (vi) restrictions on the transferability of the equity award or the shares, and (vii) such further terms and conditions, in each case not inconsistent with the 2007 Plan, as may be determined from time to time by the plan administrator; provided, however, that each stock award must have a minimum vesting period of one year from the date of grant. Stock awards were granted in the form of RSUs for the first time in 2011. | |||||||||||||||||||||||||
Share-based compensation | |||||||||||||||||||||||||
The Company recorded total share based compensation cost of $31.4 million, $25.3 million and $20.0 million for the years ended December 31, 2013, 2012 and 2011, respectively. No tax benefit was recognized related to share-based compensation cost since the Company has never reported taxable income and has established a full valuation allowance to offset all of the potential tax benefits associated with its deferred tax assets. During 2013, 2012 and 2011, $1.2 million, $1.1 million and $0.3 million of share based compensation costs were capitalized as part of the cost of inventory, respectively. | |||||||||||||||||||||||||
Valuation assumptions | |||||||||||||||||||||||||
The Company calculates the fair value of each option award on the date of grant using the Black-Scholes option pricing model. The following weighted-average assumptions were used for the periods indicated: | |||||||||||||||||||||||||
Option plan | Employee stock purchase plan | ||||||||||||||||||||||||
Years ended December 31, | Years ended December 31, | ||||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||||
Risk-free interest rate | 1.6 | % | 0.8 | % | 1.3 | % | 0.1 | % | 0.1 | % | 0.2 | % | |||||||||||||
Expected lives in years | 5.6 | 5.7 | 5.6 | 0.5 | 0.5 | 0.5 | |||||||||||||||||||
Expected dividends | 0 | % | 0 | % | 0 | % | 0 | % | 0 | % | 0 | % | |||||||||||||
Expected volatility | 50 | % | 52 | % | 52 | % | 35 | % | 42 | % | 36 | % | |||||||||||||
The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for the expected life of the award. The Company’s computation of expected life was determined based on its historical experience with similar awards, giving consideration to the contractual terms of the share-based awards, vesting schedules and expectations of future employee behavior. A forfeiture rate is estimated at the time of grant to reflect the amount of awards that are granted, but are expected to be forfeited by the award holder prior to vesting. The estimated forfeiture rate applied to these amounts is derived from historical stock award forfeiture behavior. The Company has never paid cash dividends and does not currently intend to pay cash dividends, thus has assumed a 0% dividend yield. The Company’s computation of expected volatility is based on the historical volatility of the Company’s stock price. Determination of all of these assumptions involves management’s best estimates at the time, which impact the fair value of the awards calculated under the Black-Scholes methodology, and ultimately the expense that will be recognized over the life of the award. | |||||||||||||||||||||||||
Stock option activity | |||||||||||||||||||||||||
A summary of stock option activity is as follows: | |||||||||||||||||||||||||
Shares | Weighted- | Weighted-average | Aggregate | ||||||||||||||||||||||
average | remaining contractual | intrinsic value | |||||||||||||||||||||||
exercise | term | (in thousands) | |||||||||||||||||||||||
price per share | (in years) | ||||||||||||||||||||||||
Balances at December 31, 2012 | 11,892,167 | $ | 14.25 | ||||||||||||||||||||||
Granted | 1,401,424 | 40.54 | |||||||||||||||||||||||
Exercised | (2,600,245 | ) | 11.78 | ||||||||||||||||||||||
Forfeited/expired | (422,937 | ) | 19.64 | ||||||||||||||||||||||
Balances at December 31, 2013 | 10,270,409 | $ | 18.23 | 6.77 | $ | 223,895 | |||||||||||||||||||
Expected to vest | 9,989,623 | $ | 17.86 | 6.71 | $ | 221,348 | |||||||||||||||||||
Options exercisable | 6,595,391 | $ | 13.01 | 5.78 | $ | 177,298 | |||||||||||||||||||
The weighted average grant-date fair values of options granted with exercise prices equal to market were $18.88, $11.92, and $7.94 for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||||||||||||||
The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying options and the quoted price of the Company’s common stock for all options that were in-the-money at December 31, 2013. The aggregate intrinsic value of options exercised was $61.3 million during 2013, $48.3 million during 2012, and $16.9 million during 2011, determined as of the date of option exercise. As of December 31, 2013, there was approximately $25 million of total unrecognized compensation cost related to unvested option arrangements, as adjusted for expected forfeitures, granted under the 2007 Plan. That cost is expected to be recognized over a weighted-average period of 1.3 years. The Company utilizes newly issued shares to satisfy option exercises. | |||||||||||||||||||||||||
RSU activity | |||||||||||||||||||||||||
During 2011, the Company began granting a mix of stock options and RSUs to employees under the 2007 Plan. The fair value of RSUs is determined based on the closing price of the Company’s common stock on the date of grant. | |||||||||||||||||||||||||
A summary of RSU activity under the 2007 Plan is as follows: | |||||||||||||||||||||||||
Non-vested RSUs | Share | Weighted- | |||||||||||||||||||||||
equivalent | average | ||||||||||||||||||||||||
grant date | |||||||||||||||||||||||||
fair value | |||||||||||||||||||||||||
Non-vested at December 31, 2012 | 1,129,100 | $ | 21.42 | ||||||||||||||||||||||
Changes during the period: | |||||||||||||||||||||||||
Granted | 667,805 | 39.32 | |||||||||||||||||||||||
Vested | (108,724 | ) | 15.04 | ||||||||||||||||||||||
Forfeited | (121,484 | ) | 22.56 | ||||||||||||||||||||||
Non-vested at December 31, 2013 | 1,566,697 | $ | 29.4 | ||||||||||||||||||||||
The total value of RSUs that vested during 2013 (measured on the date of vesting) was $4.5 million. As of December 31, 2013, there was approximately $27 million of total unrecognized compensation cost related to non-vested RSU awards that will be recognized as expense over a weighted-average period of 1.8 years. The Company recognizes compensation cost for RSUs on a straight-line basis over the requisite service period for the entire award, as adjusted for expected forfeitures. The Company will utilize newly issued shares for RSUs that vest. | |||||||||||||||||||||||||
Employee Stock Purchase Plan | |||||||||||||||||||||||||
The Company has an Amended and Restated 2000 Employee Stock Purchase Plan, or the Stock Purchase Plan, with a total of 315,000 shares of common stock available for issuance as of December 31, 2013. Activity under the Stock Purchase Plan for the years ended December 31, was as follows: | |||||||||||||||||||||||||
Shares | Weighted- | ||||||||||||||||||||||||
Purchased | average | ||||||||||||||||||||||||
purchase price | |||||||||||||||||||||||||
per share | |||||||||||||||||||||||||
2013 | 196,446 | $ | 23.24 | ||||||||||||||||||||||
2012 | 287,841 | $ | 14.88 | ||||||||||||||||||||||
2011 | 229,014 | $ | 11.03 | ||||||||||||||||||||||
Under the current terms of the Stock Purchase Plan, shares are purchased at the lower of 85 percent of the fair market value of the Company’s common stock on either the first day or the last day of each six month offering period. |
Employee_Benefit_Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2013 | |
Compensation And Retirement Disclosure [Abstract] | ' |
Employee Benefit Plan | ' |
13. Employee benefit plan | |
The Company has a 401(k) Plan for all of its employees. The 401(k) Plan allows eligible employees to defer, at the employee’s discretion, up to 75% of their pretax compensation up to the IRS annual limit. The Company has a 401(k) matching program whereby the Company may, at its discretion, match a portion of an employee’s contributions, not to exceed a prescribed annual limit. Under this matching program, the Company contributed a total of approximately $1.9 million in 2013, $2.1 million in 2012, and $1.4 million in 2011. |
Condensed_Quarterly_Financial_
Condensed Quarterly Financial Data | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||
Condensed Quarterly Financial Data | ' | ||||||||||||||||
14. Condensed Quarterly Financial Data (unaudited) | |||||||||||||||||
The following table contains selected unaudited financial data for each quarter of 2013 and 2012. The unaudited information should be read in conjunction with the Company’s financial statements and related notes included elsewhere in this report. The Company believes that the following unaudited information reflects all normal recurring adjustments necessary for a fair presentation of the information for the periods presented. The operating results for any quarter are not necessarily indicative of results for any future period. | |||||||||||||||||
Quarterly Financial Data (in thousands, except per share data): | |||||||||||||||||
Three months ended | |||||||||||||||||
March 31, | June 30, | September 30, | December 31, | ||||||||||||||
2013 | |||||||||||||||||
Total revenues | $ | 57,328 | $ | 73,558 | $ | 70,969 | $ | 67,409 | |||||||||
Net loss | $ | (16,264 | ) | $ | (6,899 | ) | $ | (23,686 | ) | $ | (15,671 | ) | |||||
Net loss per share—basic and diluted | $ | (0.14 | ) | $ | (0.06 | ) | $ | (0.19 | ) | $ | (0.13 | ) | |||||
2012 | |||||||||||||||||
Total revenues | $ | 48,245 | $ | 48,823 | $ | 49,832 | $ | 63,912 | |||||||||
Net loss | $ | (12,298 | ) | $ | (17,236 | ) | $ | (13,652 | ) | $ | (10,596 | ) | |||||
Net loss per share—basic and diluted | $ | (0.11 | ) | $ | (0.15 | ) | $ | (0.12 | ) | $ | (0.09 | ) |
Basis_of_Presentation_and_Summ1
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||
Basis of presentation | ' | ||||||||||||
Basis of presentation | |||||||||||||
The accompanying consolidated financial statements reflect the accounts of Seattle Genetics, Inc. and its wholly-owned subsidiary, Seattle Genetics UK, Ltd. (collectively “Seattle Genetics” or the “Company”). The Company is a biotechnology company focused on the development and commercialization of targeted therapies for the treatment of cancer. The Company operates in one reporting segment: the development and commercialization of pharmaceutical products on its own behalf or in collaboration with others. The Company began to recognize product sales and cost of sales following the accelerated approval of ADCETRIS by the U.S Food and Drug Administration, or FDA, in August 2011. | |||||||||||||
Capital Requirements | ' | ||||||||||||
Capital Requirements | |||||||||||||
To execute the Company’s growth plans, it may need to seek additional funding through public or private financings, including debt or equity financings, and through other means, including collaborations and license agreements. If the Company cannot maintain adequate funds, it may be required to delay, reduce the scope of or eliminate one or more of its development programs. Additional financing may not be available when needed, or if available, the Company may not be able to obtain financing on favorable terms. | |||||||||||||
Use of estimates | ' | ||||||||||||
Use of estimates | |||||||||||||
The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America, or GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and the disclosure of contingent assets and liabilities at the date of the financial statements, and that affect the reported amounts of revenues, costs and expenses during the reporting period. Actual results could differ from those estimates. | |||||||||||||
Cash and cash equivalents | ' | ||||||||||||
Cash and cash equivalents | |||||||||||||
The Company considers all highly liquid investments with maturities of three months or less at the date of acquisition to be cash equivalents. | |||||||||||||
Non-cash investing activities | ' | ||||||||||||
Non-cash investing activities | |||||||||||||
The Company had $1.7 million of accrued capital expenditures as of December 31, 2013. This amount has been treated as a non-cash investing activity and, accordingly, has not been included in the statement of cash flows for the period ended December 31, 2013. | |||||||||||||
Investments | ' | ||||||||||||
Investments | |||||||||||||
The Company classifies its securities as available-for-sale, which are reported at estimated fair value with unrealized gains and losses included in accumulated other comprehensive income in stockholders’ equity. Realized gains, realized losses and declines in the value of securities judged to be other-than-temporary, are included in investment and other income (loss), net. The cost of investments for purposes of computing realized and unrealized gains and losses is based on the specific identification method. Amortization of premiums and accretion of discounts are included in investment and other income (loss), net. Interest and dividends earned on all securities are included in investment and other income (loss), net. Investments in securities with maturities of less than one year, or where management’s intent is to use the investments to fund current operations, or to make them available for current operations, are classified as short-term investments. | |||||||||||||
If the estimated fair value of a security is below its carrying value, the Company evaluates whether it is more likely than not that it will sell the security before its anticipated recovery in market value and whether evidence indicating that the cost of the investment is recoverable within a reasonable period of time outweighs evidence to the contrary. The Company also evaluates whether or not it intends to sell the investment. If the impairment is considered to be other-than-temporary, the security is written down to its estimated fair value. In addition, the Company considers whether credit losses exist for any securities. A credit loss exists if the present value of cash flows expected to be collected is less than the amortized cost basis of the security. Other-than-temporary declines in estimated fair value and credit losses are charged against investment and other income (loss), net. | |||||||||||||
Inventories | ' | ||||||||||||
Inventories | |||||||||||||
The Company considers regulatory approval of product candidates to be uncertain. Accordingly, it charges manufacturing costs to research and development expense until such time as a product has received regulatory approval for commercial sale. The Company began capitalizing ADCETRIS production costs into inventory following its accelerated approval by the FDA in August 2011. ADCETRIS inventory that is deployed for clinical, research or development use is charged to research and development expense when it is no longer available for commercial sales. Production costs for the Company’s other product candidates continue to be charged to research and development expense. | |||||||||||||
The Company values its inventories at the lower of cost or market value. Cost is determined on a specific identification basis. Inventory includes the cost of materials, third-party contract manufacturing and overhead associated with the production of ADCETRIS. In the event that the Company identifies excess, obsolete or unsalable inventory, its value is written down to net realizable value. | |||||||||||||
Property and equipment | ' | ||||||||||||
Property and equipment | |||||||||||||
Property and equipment are stated at cost and are depreciated using the straight-line method over the estimated useful lives of the assets, which are generally as follows: | |||||||||||||
Years | |||||||||||||
Laboratory equipment | 5 | ||||||||||||
Furniture and fixtures | 5 | ||||||||||||
Computers, software and office equipment | 3 | ||||||||||||
Leasehold improvements are amortized over the shorter of the remaining lease term of the applicable lease or the useful life of the asset. Gains and losses from the disposal of property and equipment are reflected in the consolidated statement of comprehensive loss at the time of disposition and have not been significant. Expenditures for additions and improvements to the Company’s facilities are capitalized and expenditures for maintenance and repairs are charged to expense as incurred. Concessions received by the Company in connection with leases, including tenant improvement allowances and prorated rent, are deferred and recognized as a reduction in rent expense over the term of the applicable lease. | |||||||||||||
Impairment of long-lived assets | ' | ||||||||||||
Impairment of long-lived assets | |||||||||||||
The Company assesses the impairment of long-lived assets, primarily property and equipment and intangible assets, included in other non-current assets, whenever events or changes in business circumstances indicate that the carrying amounts of the assets may not be fully recoverable. When such events occur, management determines whether there has been an impairment in value by comparing the asset’s carrying value with its fair value, as measured by the anticipated undiscounted net cash flows of the asset. If an impairment in value exists, the asset is written down to its estimated fair value. The Company has not recognized any impairment losses through December 31, 2013 as there have been no events warranting an impairment analysis. Our long-lived assets are located in the United States. | |||||||||||||
Revenue recognition | ' | ||||||||||||
Revenue recognition | |||||||||||||
The Company’s revenues are comprised of ADCETRIS net product sales, amounts earned under its collaboration and licensing agreements and royalties. Revenue recognition is predicated upon persuasive evidence of an agreement existing, delivery of products or services being rendered, amounts payable being fixed or determinable, and collectibility being reasonably assured. | |||||||||||||
Net product sales | |||||||||||||
The Company sells ADCETRIS through a limited number of pharmaceutical distributors in the U.S. and Canada. Customers order ADCETRIS through these distributors and the Company typically ships product directly to the customer. The Company records product sales when title and risk of loss pass, which generally occurs upon delivery of the product to the customer. Product sales are recorded net of estimated government-mandated rebates and chargebacks, distribution fees, estimated product returns and other deductions. Accruals are established for these deductions and actual amounts incurred are offset against applicable accruals. The Company reflects these accruals as either a reduction in the related account receivable from the distributor, or as an accrued liability depending on the nature of the sales deduction. Sales deductions are based on management’s estimates that consider payer mix in target markets, industry benchmarks and experience to date. These estimates involve a substantial degree of judgment. | |||||||||||||
Government-mandated rebates and chargebacks: The Company has entered into a Medicaid Drug Rebate Agreement, or MDRA, with the Centers for Medicare & Medicaid Services. This agreement provides for a rebate to participating states based on covered purchases of ADCETRIS. Medicaid rebates are invoiced to the Company by participating states. The Company estimates Medicaid rebates based on a third party study of the payer mix for ADCETRIS, information on utilization by Medicaid-eligible patients who received assistance through SeaGen Secure®, the Company’s patient assistance program, and experience to date. The Company has also completed a Federal Supply Schedule, or FSS, agreement under which certain U.S. government purchasers receive a discount on eligible purchases of ADCETRIS. The Company has entered into a Pharmaceutical Pricing Agreement with the Secretary of Health and Human Services, which enables certain entities that qualify for government pricing under the Public Health Services Act, or PHS, to receive discounts on their qualified purchases of ADCETRIS. Under these agreements, distributors process a chargeback to the Company for the difference between wholesale acquisition cost and the applicable discounted price. As a result of the Company’s direct-ship distribution model, it can determine the entities purchasing ADCETRIS and this information enables the Company to estimate expected chargebacks for FSS and PHS purchases based on each entity’s eligibility for the FSS and PHS programs. The Company also reviews historical rebate and chargeback information to further refine these estimates. | |||||||||||||
Distribution fees, product returns and other deductions: The Company’s distributors charge a fee for distribution services that they perform on behalf of the Company which is determined based on sales volume to each distributor. The Company allows for the return of product that is within 30 days of its expiration date or that is damaged. The Company estimates product returns based on its experience to date and historical industry information of return rates for other specialty pharmaceutical products. In addition, the Company considers its direct-ship distribution model, its belief that product is typically not held in the distribution channel, and the expected rapid use of the product by healthcare providers. The Company provides financial assistance to qualifying patients that are underinsured or cannot cover the cost of commercial coinsurance amounts through SeaGen Secure. SeaGen Secure is available to patients in the U.S. and its territories who meet various financial need criteria. Estimated contributions for commercial coinsurance under SeaGen Secure are deducted from gross sales and are based on an analysis of expected plan utilization. These estimates are adjusted as necessary to reflect the Company’s actual experience. | |||||||||||||
Collaboration and license agreement revenues | |||||||||||||
The Company licenses its intellectual property to third parties that use the intellectual property to develop product candidates. If there are continuing performance obligations, the Company uses a time-based proportional performance model to recognize revenue over the Company’s performance period for the related agreement. Collaboration and license agreements are evaluated to determine whether the multiple elements and associated deliverables can be considered separate units of accounting. To date, the deliverables under the Company’s collaboration and license agreements have not qualified as separate units of accounting. The assessment of multiple element arrangements requires judgment in order to determine the appropriate point in time, or period of time, that revenue should be recognized. The Company believes that the development period used in each agreement is a reasonable estimate of the performance obligation period of such agreement. Accordingly, all amounts received or due, including any upfront payments, maintenance fees, development and regulatory milestone payments and reimbursement payments, are recognized as revenue over the performance obligation periods of each agreement, which range from two to fourteen years for the Company’s current agreements. When no performance obligations are required of the Company, or following the completion of the performance obligation period, such amounts are recognized as revenue when collectibility is reasonably assured. The collaboration with Takeda also includes royalties and sales-based milestones which are classified as royalty revenues. | |||||||||||||
The Company’s collaboration and license agreements include contractual milestones. Generally, the milestone events contained in the Company’s collaboration and license agreements coincide with the progression of the collaborators’ product candidates from development, to regulatory approval and then to commercialization and fall into the following categories. | |||||||||||||
Development milestones in the Company’s collaborations may include the following types of events: | |||||||||||||
• | Designation of a product candidate or initiation of preclinical studies. The Company’s collaborators must undertake significant preclinical research and studies to make a determination of the suitability of a product candidate and the time from those studies or designation to initiation of a clinical trial may take several years. | ||||||||||||
• | Initiation of a phase 1 clinical trial. Generally, phase 1 clinical trials may take one to two years to complete. | ||||||||||||
• | Initiation of a phase 2 clinical trial. Generally, phase 2 clinical trials may take one to three years to complete. | ||||||||||||
• | Initiation of a phase 3 clinical trial. Generally, phase 3 clinical trials may take two to six years to complete. | ||||||||||||
Regulatory milestones in the Company’s collaborations may include the following types of events: | |||||||||||||
• | Filing of regulatory applications for marketing approval such as a Biologics License Application in the United States or a Marketing Authorization Application in Europe. Generally, it may take up to twelve months to prepare and submit regulatory filings. | ||||||||||||
• | Receiving marketing approval in a major market, such as in the United States, Europe, Japan or other significant countries. Generally it may take up to three years after a marketing application is submitted to obtain full approval for marketing and pricing from the applicable regulatory agency. | ||||||||||||
Commercialization milestones in the Company’s collaborations may include the following types of events: | |||||||||||||
• | First commercial sale in a particular market, such as in the United States, Europe, Japan or other significant countries. | ||||||||||||
• | Product sales in excess of a pre-specified threshold. The amount of time to achieve this type of milestone depends on several factors, including, but not limited to, the dollar amount of the threshold, the pricing of the product, market penetration of the product and the rate at which customers begin using the product. | ||||||||||||
The Company has developed a proprietary technology for linking cytotoxic agents to monoclonal antibodies called antibody-drug conjugates, or ADCs. This proprietary technology is the basis of ADC collaborations that the Company has entered into in the ordinary course of its business with a number of biotechnology and pharmaceutical companies. Under these ADC collaboration agreements, the Company grants its collaborators research and commercial licenses to the Company’s technology and provides technology transfer services, technical advice, supplies and services for a period of time of between two and fourteen years. The Company’s ADC collaborators are solely responsible for the development of their product candidates and the achievement of milestones in any of the categories identified above is based solely on the collaborators’ efforts. | |||||||||||||
In the case of the Company’s ADCETRIS collaboration with Takeda Pharmaceutical Company Limited (“Takeda”), the Company may be involved in certain development activities; however, the achievement of development, regulatory and commercial milestone events under the agreement is based on activities undertaken by Takeda. | |||||||||||||
The process of successfully developing a product candidate, obtaining regulatory approval and ultimately commercializing a product candidate is highly uncertain and the attainment of any milestones is therefore uncertain and difficult to predict. In addition, since the Company does not take a substantive role or control the research, development or commercialization of any products generated by its ADC collaborators, the Company is not able to reasonably estimate when, if at all, any milestone payments or royalties may be payable to the Company by its ADC collaborators. As such, the milestone payments associated with its ADC collaborations involve a substantial degree of uncertainty and risk that they may never be received. Similarly, even in those collaborations where the Company may have an active role in the development of the product candidate, such as the Company’s ADCETRIS collaboration with Takeda, the attainment of a milestone is based on the collaborator’s activities and is generally outside the direction and control of the Company. | |||||||||||||
The Company generally invoices its collaborators and licensees on a monthly or quarterly basis, or upon the completion of the effort or achievement of a milestone, based on the terms of each agreement. Deferred revenue arises from amounts received in advance of the culmination of the earnings process and is recognized as revenue in future periods when the applicable revenue recognition criteria have been met. Deferred revenue expected to be recognized within the next twelve months is classified as a current liability. | |||||||||||||
Royalty revenues and cost of royalty revenues | |||||||||||||
Royalty revenues reflect amounts earned under the ADCETRIS collaboration with Takeda. Royalties are based on a percentage of Takeda’s net sales at rates that range from the mid-teens to the mid-twenties based on sales volume. Takeda bears a portion of third party royalty costs owed on its sales of ADCETRIS. This amount is included in royalty revenue in our consolidated financial statements. Cost of royalty revenues reflects amounts owed to the Company’s third party licensors related to Takeda’s sales of ADCETRIS. These amounts are recognized in the quarter in which Takeda reports its sales activity to the Company, which is the quarter following the related sales. | |||||||||||||
Research and development expenses | ' | ||||||||||||
Research and development expenses | |||||||||||||
Research and development, or R&D, expenses consist of salaries, benefits and other headcount related costs of the Company’s R&D staff, preclinical activities, clinical trials and related manufacturing costs, lab supplies, contract and outside service fees and facilities and overhead expenses for research, development and preclinical studies focused on drug discovery, development and testing. Clinical trial expenses are a significant component of research and development expenses, and the Company outsources a significant portion of these costs to third parties. Third party clinical trial expenses include investigator fees, site costs, clinical research organization costs, and costs for central laboratory testing and data management. R&D activities are expensed as incurred. In-licensing fees, milestones, maintenance fees and other costs to acquire technologies that are utilized in R&D for product candidates that have not yet received regulatory approval, and that are not expected to have alternative future use are expensed when incurred. Costs associated with activities performed under co-development collaborations are reflected in R&D expense. Non-refundable advance payments for goods or services that will be used or rendered for future R&D activities are capitalized and recognized as expense as the related goods are delivered or the related services are performed. This results in the temporary deferral of charges to expense of amounts incurred for research and development activities from the time payments are made until the time goods or services are provided. | |||||||||||||
Advertising | ' | ||||||||||||
Advertising | |||||||||||||
Advertising costs are expensed as incurred. The Company incurred $11.1 million, $13.0 million and $10.7 million in advertising expense during 2013, 2012 and 2011, respectively. | |||||||||||||
Fair value of financial instruments | ' | ||||||||||||
Fair value of financial instruments | |||||||||||||
The recorded amounts of certain financial instruments, including cash and cash equivalents, interest receivable, accounts receivable, accounts payable and accrued liabilities approximate fair value due to their relatively short maturities. Investments that are classified as available-for-sale are recorded at fair value. The fair value for securities held is determined using quoted market prices, broker or dealer quotations, or alternative pricing sources with reasonable levels of price transparency. | |||||||||||||
Concentration of credit risk | ' | ||||||||||||
Concentration of credit risk | |||||||||||||
Cash, cash equivalents and investments are invested in accordance with the Company’s investment policy. The policy includes guidelines for the investment of cash reserves and is reviewed periodically to minimize credit risk. Most of the Company’s investments are not federally insured. The Company has accounts receivable from the sale of ADCETRIS from a small number of distributors. The Company does not require collateral on amounts due from its distributors or its collaborators and is therefore subject to credit risk. The Company has not experienced any significant credit losses to date as a result of credit risk concentration and does not consider an allowance for doubtful accounts to be necessary. | |||||||||||||
Major customers | ' | ||||||||||||
Major customers | |||||||||||||
The Company sells ADCETRIS through a limited number of distributors. Certain of these distributors, together with entities under their common control, each individually accounted for greater than 10% of total revenues and greater than 10% of accounts receivable as noted below. In addition, one of the Company’s collaborators accounted for greater than 10% of total revenues or accounts receivable for certain periods as noted below. Revenues generated outside the United States as determined by customer location were less than 10% of total revenues for all years presented. | |||||||||||||
The following table presents each major distributor or collaborator that comprised more than 10% of total revenue in the periods presented: | |||||||||||||
Percent of total revenues | |||||||||||||
for the years ended | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Distributor A | 18 | % | 22 | % | 16 | % | |||||||
Distributor B | 18 | % | 21 | % | 10 | % | |||||||
Distributor C | 15 | % | 19 | % | 17 | % | |||||||
Collaborator A | 22 | % | 19 | % | 29 | % | |||||||
The following table presents each major distributor or collaborator that accounted for more than 10% of accounts receivable as of the dates presented: | |||||||||||||
Percent of total accounts | |||||||||||||
receivable at | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Distributor A | 30 | % | 25 | % | |||||||||
Distributor B | 31 | % | 20 | % | |||||||||
Distributor C | 23 | % | 16 | % | |||||||||
Collaborator A | <10 | % | 31 | % | |||||||||
Major suppliers | ' | ||||||||||||
Major suppliers | |||||||||||||
The use of a relatively small number of contract manufacturers to supply drug product necessary for the Company’s commercial operations and clinical trials creates a concentration of risk for the Company. While primarily one source of supply is utilized for each component of ADCETRIS and the Company’s product candidates, other sources are available should the Company need to change suppliers. The Company also endeavors to maintain reasonable levels of drug supply for its use. A change in suppliers, however, could cause a delay in delivery of drug product which could result in the interruption of commercial operations or clinical trials. Such an event would adversely affect the Company’s business. | |||||||||||||
Other non-current assets | ' | ||||||||||||
Other non-current assets | |||||||||||||
Other non-current assets include intangible assets resulting from milestone payments due upon the approval of ADCETRIS related to certain in-licensed technology. These amounts are amortized to cost of sales over the estimated life of the related licenses which range from six to ten years. Other non-current assets also include deposits and $0.3 million of investments pledged as security on an operating lease. The Company revised the classification of certain non-current asset amounts in the statement of cash flows totaling $0.6 million for the year ended December 31, 2012 from investing activities to operating activities to conform to the presentation of similar amounts in 2013. | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Intangible assets | $ | 5,650 | $ | 5,650 | |||||||||
Less: accumulated amortization | (1,801 | ) | (1,030 | ) | |||||||||
Total | $ | 3,849 | $ | 4,620 | |||||||||
Amortization expenses on intangible assets totaled $0.8 million, $0.8 million, and $0.3 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||
Income taxes | ' | ||||||||||||
Income taxes | |||||||||||||
The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Deferred tax assets and liabilities are determined based on the differences between the financial statement and tax bases of assets and liabilities using tax rates in effect for the year in which the differences are expected to reverse. A valuation allowance is recorded when it is more likely than not that the net deferred tax asset will not be realized. The Company has provided a full valuation allowance against its deferred tax assets for all periods presented. | |||||||||||||
Share-based compensation | ' | ||||||||||||
Share-based compensation | |||||||||||||
The Company uses the graded-vesting attribution method for recognizing compensation expense for its stock options and the straight-line method for recognizing compensation expense for its restricted stock units (“RSUs”). Compensation expense is recognized on awards ultimately expected to vest and reduced for forfeitures that are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. | |||||||||||||
Comprehensive loss | ' | ||||||||||||
Comprehensive loss | |||||||||||||
Comprehensive loss is the change in stockholders’ equity from transactions and other events and circumstances other than those resulting from investments by stockholders and distributions to stockholders. The Company’s comprehensive loss is comprised of net loss and unrealized gains and losses on investments. | |||||||||||||
Legal matters | ' | ||||||||||||
Legal matters | |||||||||||||
In the normal course of its business, the Company may become involved in various legal proceedings. The Company does not expect any current legal proceedings to have a material adverse effect on the Company’s business. Legal fees incurred as a result of the Company’s involvement in legal proceedings are expensed as incurred. | |||||||||||||
Certain risks and uncertainties | ' | ||||||||||||
Certain risks and uncertainties | |||||||||||||
The Company’s revenues are derived from ADCETRIS sales and royalties and from collaboration and license agreements. ADCETRIS is the Company’s only product available for sale and is subject to regulation by the FDA in the United States and other regulatory agencies outside the United States as well as competition by other pharmaceutical companies. The Company’s collaboration and license agreement revenues are derived from a relatively small number of agreements. Each of these agreements can be terminated by the Company’s collaborators at their discretion. The Company is also subject to risks common to companies in the pharmaceutical industry, including risks and uncertainties related to commercial success and acceptance of ADCETRIS and the Company’s potential future products by patients, physicians and payers, competition from other products, regulatory approvals, regulatory requirements and protection of intellectual property. Also, drug development is a lengthy process characterized by a relatively low rate of success. The Company may commit substantial resources toward developing product candidates that never result in further development, achieve regulatory approvals or achieve commercial success. Likewise, the Company has committed and expects to continue to commit substantial resources towards additional clinical development of ADCETRIS in an effort to expand ADCETRIS’ labeled indications of use, and there can be no assurance that the Company and/or Takeda will obtain and maintain the necessary regulatory approvals to market ADCETRIS for any additional indications. | |||||||||||||
Guarantees | ' | ||||||||||||
Guarantees | |||||||||||||
In the normal course of business, the Company indemnifies its directors, certain employees and other parties, including distributors, collaboration partners, lessors and other parties that perform certain work on behalf of, or for the Company or take licenses to the Company’s technologies. The Company has agreed to hold these parties harmless against losses arising from the Company’s breach of representations or covenants, intellectual property infringement or other claims made against these parties in performance of their work with the Company. These agreements typically limit the time within which the party may seek indemnification by the Company and the amount of the claim. It is not possible to prospectively determine the maximum potential amount of liability under these indemnification agreements. Further, each potential claim would be based on the unique facts and circumstances of the claim and the particular provisions of each agreement. | |||||||||||||
Net loss per share | ' | ||||||||||||
Net loss per share | |||||||||||||
Basic and diluted net loss per share is computed by dividing net loss by the weighted average number of common shares outstanding during the period. The Company excluded all restricted stock units, warrants and options to purchase common stock from the calculation of diluted net loss per share as such securities are anti-dilutive for all periods presented. | |||||||||||||
The following table presents the weighted-average shares that have been excluded from the number of shares used to calculate basic and diluted net loss per share (in thousands): | |||||||||||||
Years ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Warrants to purchase common stock | 0 | 0 | 991 | ||||||||||
Stock options and restricted stock units | 11,745 | 13,483 | 13,236 | ||||||||||
Total | 11,745 | 13,483 | 14,227 | ||||||||||
Recent accounting pronouncements | ' | ||||||||||||
Recent accounting pronouncements | |||||||||||||
In February 2013, the Financial Accounting Standards Board, or FASB, issued “ASU 2013-2 Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income” that revises the disclosure requirements related to significant reclassifications of items out of accumulated other comprehensive income and into the line items included in net income. The Company adopted this standard in the first quarter of 2013 and its adoption did not impact the consolidated financial statements. | |||||||||||||
In July 2013, the FASB issued “ASU 2013-11 Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists” that provides for disclosure requirements related to unrecognized tax benefits in certain situations. The Company will adopt this standard in the first quarter of 2014 and does not expect the adoption of this standard to have an impact on its consolidated financial statements. |
Basis_of_Presentation_and_Summ2
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||
Schedule of Property and Equipment, Estimated Useful Lives | ' | ||||||||||||
Property and equipment are stated at cost and are depreciated using the straight-line method over the estimated useful lives of the assets, which are generally as follows: | |||||||||||||
Years | |||||||||||||
Laboratory equipment | 5 | ||||||||||||
Furniture and fixtures | 5 | ||||||||||||
Computers, software and office equipment | 3 | ||||||||||||
Schedule of Percent of Revenue Associated with Each Major Distributor or Collaborator | ' | ||||||||||||
The following table presents each major distributor or collaborator that comprised more than 10% of total revenue in the periods presented: | |||||||||||||
Percent of total revenues | |||||||||||||
for the years ended | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Distributor A | 18 | % | 22 | % | 16 | % | |||||||
Distributor B | 18 | % | 21 | % | 10 | % | |||||||
Distributor C | 15 | % | 19 | % | 17 | % | |||||||
Collaborator A | 22 | % | 19 | % | 29 | % | |||||||
Schedule of Concentration of Accounts Receivable Attributable to Certain Major Distributors or Collaborators | ' | ||||||||||||
The following table presents each major distributor or collaborator that accounted for more than 10% of accounts receivable as of the dates presented: | |||||||||||||
Percent of total accounts | |||||||||||||
receivable at | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Distributor A | 30 | % | 25 | % | |||||||||
Distributor B | 31 | % | 20 | % | |||||||||
Distributor C | 23 | % | 16 | % | |||||||||
Collaborator A | <10 | % | 31 | % | |||||||||
Schedule of Other Non-Current Assets | ' | ||||||||||||
The Company revised the classification of certain non-current asset amounts in the statement of cash flows totaling $0.6 million for the year ended December 31, 2012 from investing activities to operating activities to conform to the presentation of similar amounts in 2013. | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Intangible assets | $ | 5,650 | $ | 5,650 | |||||||||
Less: accumulated amortization | (1,801 | ) | (1,030 | ) | |||||||||
Total | $ | 3,849 | $ | 4,620 | |||||||||
Schedule of Weighted-Average Shares Excluded from Number of Shares Used to Calculate Basic and Diluted Net Loss Per Share | ' | ||||||||||||
The following table presents the weighted-average shares that have been excluded from the number of shares used to calculate basic and diluted net loss per share (in thousands): | |||||||||||||
Years ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Warrants to purchase common stock | 0 | 0 | 991 | ||||||||||
Stock options and restricted stock units | 11,745 | 13,483 | 13,236 | ||||||||||
Total | 11,745 | 13,483 | 14,227 | ||||||||||
ShortTerm_Investments_Tables
Short-Term Investments (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Investments Debt And Equity Securities [Abstract] | ' | ||||||||||||||||
Available-for-Sale Securities | ' | ||||||||||||||||
Short-term investments consisted of available-for-sale securities as follows (in thousands): | |||||||||||||||||
Amortized | Gross | Gross | Fair | ||||||||||||||
cost | unrealized | unrealized | value | ||||||||||||||
gains | losses | ||||||||||||||||
December 31, 2013 | |||||||||||||||||
U.S. Treasury securities | $ | 310,162 | $ | 7 | $ | (18 | ) | $ | 310,151 | ||||||||
Contractual Maturities | |||||||||||||||||
Due in one year or less | $ | 310,162 | $ | 310,151 | |||||||||||||
Amortized | Gross | Gross | Fair | ||||||||||||||
cost | unrealized | unrealized | value | ||||||||||||||
gains | losses | ||||||||||||||||
December 31, 2012 | |||||||||||||||||
U.S. Treasury securities | $ | 309,558 | $ | 42 | $ | (5 | ) | $ | 309,595 | ||||||||
Contractual Maturities | |||||||||||||||||
Due in one year or less | $ | 309,558 | $ | 309,595 | |||||||||||||
Estimated Fair Value of Investments with Unrealized Losses | ' | ||||||||||||||||
The aggregate estimated fair value of the Company’s investments with unrealized losses was as follows (in thousands): | |||||||||||||||||
Period of continuous unrealized loss | |||||||||||||||||
12 Months or less | Greater than 12 months | ||||||||||||||||
Fair | Gross | Fair | Gross | ||||||||||||||
value | unrealized | value | unrealized | ||||||||||||||
losses | losses | ||||||||||||||||
December 31, 2013 | |||||||||||||||||
U.S. Treasury securities | $ | 188,599 | $ | (18 | ) | $ | NA | $ | NA | ||||||||
December 31, 2012 | |||||||||||||||||
U.S. Treasury securities | $ | 76,015 | $ | (5 | ) | $ | NA | $ | NA | ||||||||
Fair_Value_Tables
Fair Value (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Schedule of Financial Assets by Level within Fair Value Hierarchy | ' | ||||||||||||||||
The following table presents the Company’s available-for-sale securities by level within the fair value hierarchy (in thousands): | |||||||||||||||||
Fair value measurement using: | |||||||||||||||||
Quoted prices | Other | Significant | Total | ||||||||||||||
in active | observable | unobservable | |||||||||||||||
markets for | inputs | inputs | |||||||||||||||
identical | (Level 2) | (Level 3) | |||||||||||||||
assets | |||||||||||||||||
(Level 1) | |||||||||||||||||
As of December 31, 2013 | |||||||||||||||||
Short-term investments—U.S. Treasury securities | $ | 310,151 | $ | 0 | $ | 0 | $ | 310,151 | |||||||||
Fair value measurement using: | |||||||||||||||||
Quoted prices | Other | Significant | Total | ||||||||||||||
in active | observable | unobservable | |||||||||||||||
markets for | inputs | inputs | |||||||||||||||
identical | (Level 2) | (Level 3) | |||||||||||||||
assets | |||||||||||||||||
(Level 1) | |||||||||||||||||
As of December 31, 2012 | |||||||||||||||||
Cash equivalents—U.S. Treasury securities | $ | 10,016 | $ | 0 | $ | 0 | $ | 10,016 | |||||||||
Short-term investments—U.S. Treasury securities | 309,595 | 0 | 0 | 309,595 | |||||||||||||
Total | $ | 319,611 | $ | 0 | $ | 0 | $ | 319,611 |
Inventories_Tables
Inventories (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Schedule of Inventories | ' | ||||||||
The following table presents the Company’s inventories of ADCETRIS (in thousands): | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Raw materials | $ | 25,386 | $ | 32,293 | |||||
Work in process | 431 | 4,605 | |||||||
Finished goods | 1,256 | 849 | |||||||
Total | $ | 27,073 | $ | 37,747 | |||||
Property_and_Equipment_Tables
Property and Equipment (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Property Plant And Equipment [Abstract] | ' | ||||||||
Schedule of Property and Equipment | ' | ||||||||
Property and equipment consisted of the following (in thousands): | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Leasehold improvements | $ | 40,217 | $ | 25,650 | |||||
Laboratory equipment | 22,866 | 16,768 | |||||||
Computers, software and office equipment | 8,654 | 7,158 | |||||||
Furniture and fixtures | 5,415 | 5,040 | |||||||
77,152 | 54,616 | ||||||||
Less: accumulated depreciation and amortization | (36,365 | ) | (29,864 | ) | |||||
Total | $ | 40,787 | $ | 24,752 | |||||
Accounts_Payable_and_Accrued_L1
Accounts Payable and Accrued Liabilities (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Payables And Accruals [Abstract] | ' | ||||||||
Schedule of Accounts Payable and Accrued Liabilities | ' | ||||||||
Accounts payable and accrued liabilities consisted of the following (in thousands): | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Compensation and benefits | $ | 18,321 | $ | 16,228 | |||||
Trade accounts payable | 13,407 | 12,864 | |||||||
Clinical trial and companion diagnostic costs | 12,602 | 10,442 | |||||||
Contract manufacturing | 6,997 | 8,371 | |||||||
Third-party royalties and government rebates | 6,074 | 5,000 | |||||||
Other | 1,947 | 3,225 | |||||||
Total | $ | 59,348 | $ | 56,130 | |||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Schedule of Deferred Tax Assets | ' | ||||||||||||
The Company’s net deferred tax assets consisted of the following (in thousands): | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Deferred tax assets | |||||||||||||
Net operating loss carryforwards | $ | 132,419 | $ | 123,672 | |||||||||
Deferred revenue | 60,810 | 51,128 | |||||||||||
Tax credit carryforwards | 44,055 | 33,043 | |||||||||||
Share-based compensation | 16,463 | 12,722 | |||||||||||
Capitalized research and development | 11,489 | 16,311 | |||||||||||
Depreciation and amortization | 2,864 | 2,424 | |||||||||||
Other | 12,360 | 11,274 | |||||||||||
Total deferred tax assets | 280,460 | 250,574 | |||||||||||
Less: valuation allowance | (280,460 | ) | (250,574 | ) | |||||||||
Net deferred tax assets | $ | 0 | $ | 0 | |||||||||
Schedule of Effective Income Tax Rate | ' | ||||||||||||
A reconciliation of the federal statutory income tax rate to the effective income tax rate is as follows: | |||||||||||||
Years ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Statutory federal income tax rate | (35 | %) | (35 | %) | (35 | %) | |||||||
Tax credits | (16 | ) | (3 | ) | (3 | ) | |||||||
State income taxes and other | 3 | 3 | 1 | ||||||||||
Valuation allowance | 48 | 35 | 37 | ||||||||||
Effective tax rate | 0 | % | 0 | % | 0 | % | |||||||
Collaboration_and_License_Agre1
Collaboration and License Agreements (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ' | ||||||||||||
Schedule of Revenues Recognized Under Agreements | ' | ||||||||||||
Revenues recognized under these agreements were as follows (in thousands): | |||||||||||||
Years ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Takeda ………………………. | $ | 41,529 | $ | 36,021 | $ | 27,914 | |||||||
AbbVie | 22,924 | 9,839 | 3,721 | ||||||||||
Bayer | 12,000 | 0 | 100 | ||||||||||
Genentech | 8,438 | 6,174 | 5,302 | ||||||||||
Agensys | 6,630 | 4,834 | 3,957 | ||||||||||
Other | 15,260 | 10,679 | 10,543 | ||||||||||
Total | $ | 106,781 | $ | 67,547 | $ | 51,537 | |||||||
Summary of Research and Development Expenses Incurred and Funding Provided to Agensys | ' | ||||||||||||
The following table summarizes research and development expenses incurred by the Company and funding provided to Agensys under the collaboration to achieve equal cost sharing. | |||||||||||||
Years ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Research and development expense using contractual rates | $ | 2,574 | $ | 4,885 | $ | 6,404 | |||||||
Co-development funding due to Agensys | 8,096 | 5,484 | 6,844 | ||||||||||
Total | $ | 10,670 | $ | 10,369 | $ | 13,248 | |||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Commitments And Contingencies Disclosure [Abstract] | ' | ||||||||
Schedule of Noncancelable Obligations | ' | ||||||||
Assuming the Company does not exercise any extensions, future minimum lease payments under all noncancelable operating leases are set forth below. In addition, noncancelable obligations under other agreements, such as future obligations related to manufacturing ADCETRIS and the Company’s product candidates, are as follows (in thousands): | |||||||||
Leases | Other | ||||||||
Agreements | |||||||||
Years ending December 31, | |||||||||
2014 | $ | 4,208 | $ | 37,329 | |||||
2015 | 4,348 | 12,854 | |||||||
2016 | 4,495 | 12,319 | |||||||
2017 | 4,639 | 12,314 | |||||||
2018 | 2,279 | 12,128 | |||||||
Thereafter | 0 | 34,420 | |||||||
$ | 19,969 | $ | 121,364 |
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Equity [Abstract] | ' | ||||
Schedule of Common Stock Reserved for Future Issuance | ' | ||||
At December 31, 2013, shares of common stock reserved for future issuance are as follows (in thousands): | |||||
Stock options and RSUs outstanding | 11,837 | ||||
Shares available for future grant under the 2007 Equity Incentive Plan | 2,218 | ||||
Employee stock purchase plan shares available for future issuance | 315 | ||||
Total | 14,370 | ||||
ShareBased_Compensation_Tables
Share-Based Compensation (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ||||||||||||||||||||||||
Schedule of Stock Options Valuation Assumptions | ' | ||||||||||||||||||||||||
The Company calculates the fair value of each option award on the date of grant using the Black-Scholes option pricing model. The following weighted-average assumptions were used for the periods indicated: | |||||||||||||||||||||||||
Option plan | Employee stock purchase plan | ||||||||||||||||||||||||
Years ended December 31, | Years ended December 31, | ||||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||||
Risk-free interest rate | 1.6 | % | 0.8 | % | 1.3 | % | 0.1 | % | 0.1 | % | 0.2 | % | |||||||||||||
Expected lives in years | 5.6 | 5.7 | 5.6 | 0.5 | 0.5 | 0.5 | |||||||||||||||||||
Expected dividends | 0 | % | 0 | % | 0 | % | 0 | % | 0 | % | 0 | % | |||||||||||||
Expected volatility | 50 | % | 52 | % | 52 | % | 35 | % | 42 | % | 36 | % | |||||||||||||
Schedule of Stock Option Activity | ' | ||||||||||||||||||||||||
A summary of stock option activity is as follows: | |||||||||||||||||||||||||
Shares | Weighted- | Weighted-average | Aggregate | ||||||||||||||||||||||
average | remaining contractual | intrinsic value | |||||||||||||||||||||||
exercise | term | (in thousands) | |||||||||||||||||||||||
price per share | (in years) | ||||||||||||||||||||||||
Balances at December 31, 2012 | 11,892,167 | $ | 14.25 | ||||||||||||||||||||||
Granted | 1,401,424 | 40.54 | |||||||||||||||||||||||
Exercised | (2,600,245 | ) | 11.78 | ||||||||||||||||||||||
Forfeited/expired | (422,937 | ) | 19.64 | ||||||||||||||||||||||
Balances at December 31, 2013 | 10,270,409 | $ | 18.23 | 6.77 | $ | 223,895 | |||||||||||||||||||
Expected to vest | 9,989,623 | $ | 17.86 | 6.71 | $ | 221,348 | |||||||||||||||||||
Options exercisable | 6,595,391 | $ | 13.01 | 5.78 | $ | 177,298 | |||||||||||||||||||
Schedule of Non-Vested Restricted Stock Units | ' | ||||||||||||||||||||||||
A summary of RSU activity under the 2007 Plan is as follows: | |||||||||||||||||||||||||
Non-vested RSUs | Share | Weighted- | |||||||||||||||||||||||
equivalent | average | ||||||||||||||||||||||||
grant date | |||||||||||||||||||||||||
fair value | |||||||||||||||||||||||||
Non-vested at December 31, 2012 | 1,129,100 | $ | 21.42 | ||||||||||||||||||||||
Changes during the period: | |||||||||||||||||||||||||
Granted | 667,805 | 39.32 | |||||||||||||||||||||||
Vested | (108,724 | ) | 15.04 | ||||||||||||||||||||||
Forfeited | (121,484 | ) | 22.56 | ||||||||||||||||||||||
Non-vested at December 31, 2013 | 1,566,697 | $ | 29.4 | ||||||||||||||||||||||
Schedule of Activity under Stock Purchase Plan | ' | ||||||||||||||||||||||||
Activity under the Stock Purchase Plan for the years ended December 31, was as follows: | |||||||||||||||||||||||||
Shares | Weighted- | ||||||||||||||||||||||||
Purchased | average | ||||||||||||||||||||||||
purchase price | |||||||||||||||||||||||||
per share | |||||||||||||||||||||||||
2013 | 196,446 | $ | 23.24 | ||||||||||||||||||||||
2012 | 287,841 | $ | 14.88 | ||||||||||||||||||||||
2011 | 229,014 | $ | 11.03 |
Condensed_Quarterly_Financial_1
Condensed Quarterly Financial Data (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||
Schedule of Quarterly Financial Data | ' | ||||||||||||||||
Quarterly Financial Data (in thousands, except per share data): | |||||||||||||||||
Three months ended | |||||||||||||||||
March 31, | June 30, | September 30, | December 31, | ||||||||||||||
2013 | |||||||||||||||||
Total revenues | $ | 57,328 | $ | 73,558 | $ | 70,969 | $ | 67,409 | |||||||||
Net loss | $ | (16,264 | ) | $ | (6,899 | ) | $ | (23,686 | ) | $ | (15,671 | ) | |||||
Net loss per share—basic and diluted | $ | (0.14 | ) | $ | (0.06 | ) | $ | (0.19 | ) | $ | (0.13 | ) | |||||
2012 | |||||||||||||||||
Total revenues | $ | 48,245 | $ | 48,823 | $ | 49,832 | $ | 63,912 | |||||||||
Net loss | $ | (12,298 | ) | $ | (17,236 | ) | $ | (13,652 | ) | $ | (10,596 | ) | |||||
Net loss per share—basic and diluted | $ | (0.11 | ) | $ | (0.15 | ) | $ | (0.12 | ) | $ | (0.09 | ) |
Basis_of_Presentation_and_Summ3
Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Segment | |||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Number of reporting segment operated | 1 | ' | ' |
Accrued capital expenditures | $1,700,000 | ' | ' |
Impairment losses recognized | 0 | ' | ' |
Number of days allowed to the customer to return product for expiration or damage | '30 days | ' | ' |
Advertising expenses | 11,100,000 | 13,000,000 | 10,700,000 |
Investments pledged as security | 300,000 | 300,000 | ' |
Reclassification of prior year investments in non-current asset amounts | ' | 600,000 | ' |
Amortization expenses | $800,000 | $800,000 | $300,000 |
Minimum [Member] | Collaboration and license agreement revenues [Member] | ' | ' | ' |
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Performance obligation periods of each agreement, years | '2 years | ' | ' |
Maximum [Member] | Collaboration and license agreement revenues [Member] | ' | ' | ' |
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Performance obligation periods of each agreement, years | '14 years | ' | ' |
Basis_of_Presentation_and_Summ4
Basis of Presentation and Summary of Significant Accounting Policies - Schedule of Property and Equipment, Estimated Useful Lives (Detail) | 12 Months Ended |
Dec. 31, 2013 | |
Laboratory equipment [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property and equipment, estimated useful lives, years | '5 years |
Furniture and fixtures [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property and equipment, estimated useful lives, years | '5 years |
Computers, software and office equipment [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property and equipment, estimated useful lives, years | '3 years |
Basis_of_Presentation_and_Summ5
Basis of Presentation and Summary of Significant Accounting Policies - Schedule of Percent of Revenue Associated with Each Major Distributor or Collaborator (Detail) (Sales [Member]) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Distributor A [Member] | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' |
Percent of total revenues | 18.00% | 22.00% | 16.00% |
Distributor B [Member] | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' |
Percent of total revenues | 18.00% | 21.00% | 10.00% |
Distributor C [Member] | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' |
Percent of total revenues | 15.00% | 19.00% | 17.00% |
Collaborator A [Member] | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' |
Percent of total revenues | 22.00% | 19.00% | 29.00% |
Basis_of_Presentation_and_Summ6
Basis of Presentation and Summary of Significant Accounting Policies - Schedule of Concentration of Accounts Receivable Attributable to Certain Major Distributors or Collaborators (Detail) | Dec. 31, 2013 | Dec. 31, 2012 |
Distributor A [Member] | ' | ' |
Entity Wide Accounts Receivable Major Customer [Line Items] | ' | ' |
Percent of total accounts receivable | 30.00% | 25.00% |
Distributor B [Member] | ' | ' |
Entity Wide Accounts Receivable Major Customer [Line Items] | ' | ' |
Percent of total accounts receivable | 31.00% | 20.00% |
Distributor C [Member] | ' | ' |
Entity Wide Accounts Receivable Major Customer [Line Items] | ' | ' |
Percent of total accounts receivable | 23.00% | 16.00% |
Collaborator A [Member] | ' | ' |
Entity Wide Accounts Receivable Major Customer [Line Items] | ' | ' |
Percent of total accounts receivable | ' | 31.00% |
Maximum [Member] | Collaborator A [Member] | ' | ' |
Entity Wide Accounts Receivable Major Customer [Line Items] | ' | ' |
Percent of total accounts receivable | 10.00% | ' |
Basis_of_Presentation_and_Summ7
Basis of Presentation and Summary of Significant Accounting Policies - Other Non-Current Assets - Additional Information1 (Detail) (In-licensed Technology [Member]) | 12 Months Ended |
Dec. 31, 2013 | |
Minimum [Member] | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Estimated life of certain in-licensed technology, in years | '6 years |
Maximum [Member] | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Estimated life of certain in-licensed technology, in years | '10 years |
Basis_of_Presentation_and_Summ8
Basis of Presentation and Summary of Significant Accounting Policies - Schedule of Other Non-Current Assets (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ' |
Intangible assets | $5,650 | $5,650 |
Less: accumulated amortization | -1,801 | -1,030 |
Total | $3,849 | $4,620 |
Basis_of_Presentation_and_Summ9
Basis of Presentation and Summary of Significant Accounting Policies - Schedule of Weighted-Average Shares Excluded from Number of Shares Used to Calculate Basic and Diluted Net Loss Per Share (Detail) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Weighted-average shares that have been excluded from the number of shares used to calculate basic and diluted net loss per share | 11,745 | 13,483 | 14,227 |
Warrants to purchase common stock [Member] | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Weighted-average shares that have been excluded from the number of shares used to calculate basic and diluted net loss per share | 0 | 0 | 991 |
Stock options and restricted stock units [Member] | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Weighted-average shares that have been excluded from the number of shares used to calculate basic and diluted net loss per share | 11,745 | 13,483 | 13,236 |
ShortTerm_Investments_Availabl
Short-Term Investments - Available-for-Sale Securities (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | |||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' |
Available-for-sale securities, Fair value | ' | ' | $5,800 |
Contractual Maturities Due in one year or less, Amortized cost | 310,162 | 309,558 | ' |
Contractual Maturities Due in one year or less, Fair value | 310,151 | 309,595 | ' |
U.S. Treasury securities [Member] | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' |
Available-for-sale securities, Amortized cost | 310,162 | 309,558 | ' |
Available-for-sale securities, Gross unrealized gains | 7 | 42 | ' |
Available-for-sale securities, Gross unrealized losses | -18 | -5 | ' |
Available-for-sale securities, Fair value | $310,151 | $309,595 | ' |
ShortTerm_Investments_Estimate
Short-Term Investments - Estimated Fair Value of Investments with Unrealized Losses (Detail) (U.S. Treasury securities [Member], USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
U.S. Treasury securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-sale securities, Period of continuous unrealized loss, 12 Months or less, Fair value | $188,599 | $76,015 |
Available-for-sale securities, Period of continuous unrealized loss, 12 Months or less, Gross unrealized losses | -18 | -5 |
Available-for-sale securities, Period of continuous unrealized loss, Greater than 12 months, Fair value | ' | ' |
Available-for-sale securities, Period of continuous unrealized loss, Greater than 12 months, Gross unrealized losses | ' | ' |
Fair_Value_Additional_Informat
Fair Value - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Investment | Investment | ||
Fair Value Disclosures [Abstract] | ' | ' | ' |
Transfer of investments between Levels 1, 2 and 3 | 0 | 0 | ' |
Realized loss related to an other-than-temporary impairment | ' | ' | $8.70 |
Carrying value of securities | ' | ' | 5.8 |
Sale of auction rate securities | ' | $5.80 | ' |
Fair_Value_Schedule_of_Financi
Fair Value - Schedule of Financial Assets by Level within Fair Value Hierarchy (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total | ' | $319,611 |
U.S. Treasury securities [Member] | Cash equivalents [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash equivalents | ' | 10,016 |
U.S. Treasury securities [Member] | Short-term investments [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investments | 310,151 | 309,595 |
Quoted prices in active markets for identical assets (Level 1) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total | ' | 319,611 |
Quoted prices in active markets for identical assets (Level 1) [Member] | U.S. Treasury securities [Member] | Cash equivalents [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash equivalents | ' | 10,016 |
Quoted prices in active markets for identical assets (Level 1) [Member] | U.S. Treasury securities [Member] | Short-term investments [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investments | 310,151 | 309,595 |
Other observable inputs (Level 2) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total | ' | 0 |
Other observable inputs (Level 2) [Member] | U.S. Treasury securities [Member] | Cash equivalents [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash equivalents | ' | 0 |
Other observable inputs (Level 2) [Member] | U.S. Treasury securities [Member] | Short-term investments [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investments | 0 | 0 |
Significant unobservable inputs (Level 3) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total | ' | 0 |
Significant unobservable inputs (Level 3) [Member] | U.S. Treasury securities [Member] | Cash equivalents [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash equivalents | ' | 0 |
Significant unobservable inputs (Level 3) [Member] | U.S. Treasury securities [Member] | Short-term investments [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investments | $0 | $0 |
Inventories_Schedule_of_Invent
Inventories - Schedule of Inventories (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Raw materials | $25,386 | $32,293 |
Work in process | 431 | 4,605 |
Finished goods | 1,256 | 849 |
Total | $27,073 | $37,747 |
Property_and_Equipment_Schedul
Property and Equipment - Schedule of Property and Equipment (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Property Plant And Equipment [Abstract] | ' | ' |
Leasehold improvements | $40,217 | $25,650 |
Laboratory equipment | 22,866 | 16,768 |
Computers, software and office equipment | 8,654 | 7,158 |
Furniture and fixtures | 5,415 | 5,040 |
Property and equipment, gross | 77,152 | 54,616 |
Less: accumulated depreciation and amortization | -36,365 | -29,864 |
Total | $40,787 | $24,752 |
Property_and_Equipment_Additio
Property and Equipment - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Property Plant And Equipment [Abstract] | ' | ' | ' |
Depreciation and amortization expenses | $7.80 | $5.40 | $3.90 |
Construction in process included in Leasehold improvements | $4.50 | ' | ' |
Accounts_Payable_and_Accrued_L2
Accounts Payable and Accrued Liabilities - Schedule of Accounts Payable and Accrued Liabilities (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Payables And Accruals [Abstract] | ' | ' |
Compensation and benefits | $18,321 | $16,228 |
Trade accounts payable | 13,407 | 12,864 |
Clinical trial and companion diagnostic costs | 12,602 | 10,442 |
Contract manufacturing | 6,997 | 8,371 |
Third-party royalties and government rebates | 6,074 | 5,000 |
Other | 1,947 | 3,225 |
Total | $59,348 | $56,130 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Income Taxes [Line Items] | ' | ' |
Unrecognized tax benefits | $0 | $0 |
Net operating loss carryforwards | 467,600,000 | ' |
Tax credit carryforwards | 44,055,000 | 33,043,000 |
Increases in the valuation allowance | $29,900,000 | $18,600,000 |
Minimum [Member] | ' | ' |
Income Taxes [Line Items] | ' | ' |
Net operating loss expiration dates | '2018 | ' |
Tax credit carryforwards expiration dates | '2021 | ' |
Tax years subject to future examination for federal income taxes | '1998 | ' |
Maximum [Member] | ' | ' |
Income Taxes [Line Items] | ' | ' |
Net operating loss expiration dates | '2033 | ' |
Tax credit carryforwards expiration dates | '2033 | ' |
Tax years subject to future examination for federal income taxes | '2013 | ' |
Income_Taxes_Schedule_of_Defer
Income Taxes - Schedule of Deferred Tax Assets (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deferred tax assets | ' | ' |
Net operating loss carryforwards | $132,419 | $123,672 |
Deferred revenue | 60,810 | 51,128 |
Tax credit carryforwards | 44,055 | 33,043 |
Share-based compensation | 16,463 | 12,722 |
Capitalized research and development | 11,489 | 16,311 |
Depreciation and amortization | 2,864 | 2,424 |
Other | 12,360 | 11,274 |
Total deferred tax assets | 280,460 | 250,574 |
Less: valuation allowance | -280,460 | -250,574 |
Net deferred tax assets | $0 | $0 |
Income_Taxes_Schedule_of_Effec
Income Taxes - Schedule of Effective Income Tax Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Effective Income Tax Rate Reconciliation Other Reconciling Items Percent [Abstract] | ' | ' | ' |
Statutory federal income tax rate | -35.00% | -35.00% | -35.00% |
Tax credits | -16.00% | -3.00% | -3.00% |
State income taxes and other | 3.00% | 3.00% | 1.00% |
Valuation allowance | 48.00% | 35.00% | 37.00% |
Effective tax rate | 0.00% | 0.00% | 0.00% |
Collaboration_and_License_Agre2
Collaboration and License Agreements - Schedule of Revenues Recognized Under Agreements (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ' | ' | ' |
Revenues from collaboration and license agreements | $106,781 | $67,547 | $51,537 |
Takeda [Member] | ' | ' | ' |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ' | ' | ' |
Revenues from collaboration and license agreements | 41,529 | 36,021 | 27,914 |
AbbVie [Member] | ' | ' | ' |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ' | ' | ' |
Revenues from collaboration and license agreements | 22,924 | 9,839 | 3,721 |
Bayer [Member] | ' | ' | ' |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ' | ' | ' |
Revenues from collaboration and license agreements | 12,000 | 0 | 100 |
Genentech [Member] | ' | ' | ' |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ' | ' | ' |
Revenues from collaboration and license agreements | 8,438 | 6,174 | 5,302 |
Agensys [Member] | ' | ' | ' |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ' | ' | ' |
Revenues from collaboration and license agreements | 6,630 | 4,834 | 3,957 |
Other [Member] | ' | ' | ' |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ' | ' | ' |
Revenues from collaboration and license agreements | $15,260 | $10,679 | $10,543 |
Collaboration_and_License_Agre3
Collaboration and License Agreements - Additional Information (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2009 |
Takeda [Member] | ' | ' |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ' | ' |
Proceeds from upfront payment | ' | $60 |
Amount received from milestone payments | $30 | ' |
Percentage of costs incurred development under collaboration | 50.00% | ' |
Estimated development term and collaboration agreement, years | '10 years | ' |
Collaboration and co-development agreement With Agensys [Member] | ' | ' |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ' | ' |
Future profits share by product candidates | '50:50 basis | ' |
Collaboration_and_License_Agre4
Collaboration and License Agreements - Summary of Research and Development Expenses Incurred and Funding Provided to Agensys (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Collaboration Arrangement Disclosure [Abstract] | ' | ' | ' |
Research and development expense using contractual rates | $2,574 | $4,885 | $6,404 |
Co-development funding due to Agensys | 8,096 | 5,484 | 6,844 |
Total | $10,670 | $10,369 | $13,248 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Lease | |||
sqft | |||
Commitments And Contingencies Disclosure [Abstract] | ' | ' | ' |
Approximate area of facility, square footage | 195,000 | ' | ' |
Number of operating leases | 3 | ' | ' |
Lease expiration date | '2018 | ' | ' |
Deferred rent liability | $5 | $5.70 | ' |
Rent expense | 3.3 | 3.6 | 3.5 |
Amount not included in additional payments that are contingent upon achievement of certain milestones | $40.80 | ' | ' |
Commitments_and_Contingencies_2
Commitments and Contingencies - Schedule of Noncancelable Obligations (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Other Agreements [Member] | ' |
Noncancelable Obligations Future Minimum Payments Due [Line Items] | ' |
2014 | $37,329 |
2015 | 12,854 |
2016 | 12,319 |
2017 | 12,314 |
2018 | 12,128 |
Thereafter | 34,420 |
Total | 121,364 |
Leases [Member] | ' |
Noncancelable Obligations Future Minimum Payments Due [Line Items] | ' |
2014 | 4,208 |
2015 | 4,348 |
2016 | 4,495 |
2017 | 4,639 |
2018 | 2,279 |
Thereafter | 0 |
Total | $19,969 |
Stockholders_Equity_Additional
Stockholders' Equity - Additional Information (Detail) (USD $) | 1 Months Ended | ||||
In Millions, except Share data, unless otherwise specified | Feb. 28, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | 31-May-11 | 31-May-11 |
Prior To Amendment [Member] | After Amendment [Member] | ||||
Stockholders' Equity [Line Items] | ' | ' | ' | ' | ' |
Common stock public offering of shares | 11,500,000 | ' | ' | ' | ' |
Common stock public offering price per share | $15.50 | ' | ' | ' | ' |
Net proceeds of common stock public offering | $168.10 | ' | ' | ' | ' |
Authorized shares of common stock | ' | 250,000,000 | 250,000,000 | 150,000,000 | 250,000,000 |
Stockholders_Equity_Schedule_o
Stockholders' Equity - Schedule of Common Stock Reserved for Future Issuance (Detail) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Common Stock Number Of Shares Par Value And Other Disclosures [Abstract] | ' |
Stock options and RSUs outstanding | 11,837 |
Shares available for future grant under the 2007 Equity Incentive Plan | 2,218 |
Employee stock purchase plan shares available for future issuance | 315 |
Total Common Stock Reserved for Future Issuance | 14,370 |
ShareBased_Compensation_2007_E
Share-Based Compensation - 2007 Equity Incentive Plan - Additional Information (Detail) (2007 Equity Incentive Plan [Member]) | 1 Months Ended | 12 Months Ended | |
31-May-12 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Common stock reserved for issuance | ' | 16,500,000 | 16,500,000 |
Additional shares reserved for issuance by plan amendment | 4,000,000 | ' | ' |
Maximum options or stock awards granted per awardee per calendar year | ' | 1,000,000 | ' |
Minimum vesting period of stock awards, years | ' | '1 year | ' |
Voting Power Concentration Less than 10% [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Minimum percentage of exercise price stock at grant date fair market value | ' | 100.00% | ' |
Maximum term from date of grant, years | ' | '10 years | ' |
Voting Power Concentration Greater than 10 % [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Maximum term from date of grant, years | ' | '5 years | ' |
Percentage of exercise price stock at grant date fair market value | ' | 110.00% | ' |
Employee Stock Option and Initial Director Stock Option Grants [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Initial vesting period, percentage | ' | 25.00% | ' |
Initial vesting period, years | ' | '1 year | ' |
Maximum subsequent vesting period, years | ' | '36 months | ' |
Employee RSU Grants [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Third anniversary vesting period, percentage | ' | 100.00% | ' |
Vesting period of equity awards, years | ' | '3 years | ' |
Director Stock Option and RSU Grants [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Vesting period of equity awards, years | ' | '1 year | ' |
ShareBased_Compensation_Share_
Share-Based Compensation - Share Based Compensation Cost - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ' | ' |
Share based compensation cost | $31,406,000 | $25,340,000 | $19,984,000 |
Share based compensation costs capitalized | $1,200,000 | $1,100,000 | $300,000 |
ShareBased_Compensation_Schedu
Share-Based Compensation - Schedule of Stock Options Valuation Assumptions (Detail) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Expected dividends | 0.00% | ' | ' |
Option plan [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Risk-free interest rate | 1.60% | 0.80% | 1.30% |
Expected lives in years | '5 years 7 months 6 days | '5 years 8 months 12 days | '5 years 7 months 6 days |
Expected dividends | 0.00% | 0.00% | 0.00% |
Expected volatility | 50.00% | 52.00% | 52.00% |
Employee stock purchase plan [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Risk-free interest rate | 0.10% | 0.10% | 0.20% |
Expected lives in years | '6 months | '6 months | '6 months |
Expected dividends | 0.00% | 0.00% | 0.00% |
Expected volatility | 35.00% | 42.00% | 36.00% |
ShareBased_Compensation_Valuat
Share-Based Compensation - Valuation Assumptions - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2013 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' |
Percentage of assumed dividend yield | 0.00% |
ShareBased_Compensation_Schedu1
Share-Based Compensation - Schedule of Stock Option Activity (Detail) (USD $) | 12 Months Ended |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 |
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding [Roll Forward] | ' |
Shares, Beginning Balance | 11,892,167 |
Shares, Granted | 1,401,424 |
Shares, Exercised | -2,600,245 |
Shares, Forfeited/expired | -422,937 |
Shares, Ending Balance | 10,270,409 |
Shares, Expected to vest | 9,989,623 |
Shares, Options exercisable | 6,595,391 |
Weighted-average exercise price per share, Beginning Balance | $14.25 |
Weighted-average exercise price per share, Granted | $40.54 |
Weighted-average exercise price per share, Exercised | $11.78 |
Weighted-average exercise price per share, Forfeited/expired | $19.64 |
Weighted-average exercise price per share, Ending Balance | $18.23 |
Weighted-average exercise price per share, Expected to vest | $17.86 |
Weighted-average exercise price per share, Options exercisable | $13.01 |
Weighted-average remaining contractual term (in years), Options outstanding | '6 years 9 months 7 days |
Weighted-average remaining contractual term (in years), Expected to vest | '6 years 8 months 16 days |
Weighted-average remaining contractual term (in years), Options exercisable | '5 years 9 months 11 days |
Aggregate intrinsic value, Options outstanding | $223,895 |
Aggregate intrinsic value, Expected to vest | 221,348 |
Aggregate intrinsic value, Options exercisable | $177,298 |
ShareBased_Compensation_Stock_
Share-Based Compensation - Stock Option Activity - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Share Based Compensation Arrangement By Share Based Payment Award Options Additional Disclosures [Abstract] | ' | ' | ' |
Weighted average grant-date fair values of options granted | $18.88 | $11.92 | $7.94 |
Aggregate intrinsic value of options exercised | $61.30 | $48.30 | $16.90 |
Unrecognized compensation cost related to unvested share-based compensation | $25 | ' | ' |
Unrecognized compensation of weighted-average period, years | '1 year 3 months 18 days | ' | ' |
ShareBased_Compensation_Schedu2
Share-Based Compensation - Schedule of Non-Vested Restricted Stock Units (Detail) (Restricted Stock Units (RSUs) [Member], USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Restricted Stock Units (RSUs) [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Non-vested, Share equivalent, Beginning balance | 1,129,100 |
Share equivalent, Granted | 667,805 |
Share equivalent, Vested | -108,724 |
Share equivalent, Forfeited | -121,484 |
Non-vested, Share equivalent, Ending balance | 1,566,697 |
Non-vested, Weighted-average grant date fair value, Beginning balance | $21.42 |
Weighted-average grant date fair value, Granted | $39.32 |
Weighted-average grant date fair value, Vested | $15.04 |
Weighted-average grant date fair value, Forfeited | $22.56 |
Non-vested, Weighted-average grant date fair value, Ending balance | $29.40 |
ShareBased_Compensation_RSU_Ac
Share-Based Compensation - RSU Activity - Additional Information (Detail) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Unrecognized compensation cost related to unvested share-based compensation | $25 |
Unrecognized compensation of weighted-average period, years | '1 year 3 months 18 days |
Restricted Stock Units (RSUs) [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Value of stock awards vested during the period | 4.5 |
Unrecognized compensation cost related to unvested share-based compensation | $27 |
Unrecognized compensation of weighted-average period, years | '1 year 9 months 18 days |
ShareBased_Compensation_Employ
Share-Based Compensation - Employee Stock Purchase Plan - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2013 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' |
Common stock available for issuance in Employee Stock Purchase Plan | 315,000 |
Discounted stock purchase price, percent of market value | 85.00% |
ShareBased_Compensation_Schedu3
Share-Based Compensation - Schedule of Activity under Stock Purchase Plan (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ' | ' |
Shares Purchased | 196,446 | 287,841 | 229,014 |
Weighted-average purchase price per share | $23.24 | $14.88 | $11.03 |
Employee_Benefit_Plan_Addition
Employee Benefit Plan - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Defined Contribution Pension And Other Postretirement Plans Disclosure [Abstract] | ' | ' | ' |
Maximum limit on pretax deferral contribution by eligible employees | 75.00% | ' | ' |
Total contribution made by employer under matching program | $1.90 | $2.10 | $1.40 |
Condensed_Quarterly_Financial_2
Condensed Quarterly Financial Data - Schedule of Quarterly Financial Data (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Quarterly Financial Data [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total revenues | $67,409 | $70,969 | $73,558 | $57,328 | $63,912 | $49,832 | $48,823 | $48,245 | $269,264 | $210,812 | $94,778 |
Net loss | ($15,671) | ($23,686) | ($6,899) | ($16,264) | ($10,596) | ($13,652) | ($17,236) | ($12,298) | ($62,520) | ($53,782) | ($152,030) |
Net loss per share-basic and diluted | ($0.13) | ($0.19) | ($0.06) | ($0.14) | ($0.09) | ($0.12) | ($0.15) | ($0.11) | ($0.51) | ($0.46) | ($1.34) |