Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 16, 2016 | Jun. 30, 2015 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | SGEN | ||
Entity Registrant Name | SEATTLE GENETICS INC /WA | ||
Entity Central Index Key | 1,060,736 | ||
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 | 139,932,886 | ||
Entity Public Float | $ 4,528,154,541 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Assets | ||
Cash and cash equivalents | $ 102,255 | $ 56,927 |
Short-term investments | 547,396 | 256,486 |
Accounts receivable, net | 52,930 | 39,248 |
Inventories | 56,963 | 43,451 |
Prepaid expenses and other current assets | 11,515 | 11,874 |
Total current assets | 771,059 | 407,986 |
Property and equipment, net | 49,598 | 46,129 |
Long-term investments | 63,060 | 0 |
Other non-current assets | 11,378 | 4,850 |
Total assets | 895,095 | 458,965 |
Liabilities and Stockholders' Equity | ||
Accounts payable and accrued liabilities | 88,031 | 77,681 |
Current portion of deferred revenue | 46,235 | 48,212 |
Total current liabilities | 134,266 | 125,893 |
Long-term liabilities | ||
Deferred revenue, less current portion | 71,249 | 117,648 |
Deferred rent and other long-term liabilities | 3,669 | 4,590 |
Total long-term liabilities | $ 74,918 | $ 122,238 |
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; 139,674 shares issued and outstanding at December 31, 2015 and 123,973 shares issued and outstanding at December 31, 2014 | 140 | 124 |
Additional paid-in capital | 1,613,383 | 1,017,182 |
Accumulated other comprehensive loss | (683) | (29) |
Accumulated deficit | (926,929) | (806,443) |
Total stockholders' equity | 685,911 | 210,834 |
Total liabilities and stockholders' equity | $ 895,095 | $ 458,965 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 250,000,000 | 250,000,000 |
Common stock, shares issued | 139,674,000 | 123,973,000 |
Common stock, shares outstanding | 139,674,000 | 123,973,000 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues | |||
Net product sales | $ 226,052 | $ 178,198 | $ 144,665 |
Collaboration and license agreement revenues | 69,770 | 68,556 | 106,781 |
Royalty revenues | 40,980 | 40,004 | 17,818 |
Total revenues | 336,802 | 286,758 | 269,264 |
Costs and expenses | |||
Cost of sales | 24,476 | 17,513 | 13,759 |
Cost of royalty revenues | 12,964 | 11,545 | 7,385 |
Research and development | 294,529 | 230,743 | 218,627 |
Selling, general and administrative | 125,783 | 104,320 | 92,354 |
Total costs and expenses | 457,752 | 364,121 | 332,125 |
Loss from operations | (120,950) | (77,363) | (62,861) |
Investment and other income, net | 464 | 1,222 | 341 |
Net loss | $ (120,486) | $ (76,141) | $ (62,520) |
Net loss per share-basic and diluted | $ (0.93) | $ (0.62) | $ (0.51) |
Shares used in computation of net loss per share-basic and diluted | 129,184 | 123,408 | 121,575 |
Comprehensive loss: | |||
Net loss | $ (120,486) | $ (76,141) | $ (62,520) |
Other comprehensive loss: | |||
Foreign currency translation loss | (12) | 0 | 0 |
Unrealized loss on securities available for sale | (642) | (18) | (48) |
Total other comprehensive loss | (654) | (18) | (48) |
Comprehensive loss | $ (121,140) | $ (76,159) | $ (62,568) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Accumulated Deficit [Member] |
Balances, value at Dec. 31, 2012 | $ 226,148 | $ 120 | $ 893,773 | $ 37 | $ (667,782) |
Balances, shares at Dec. 31, 2012 | 119,710 | ||||
Net loss | (62,520) | $ 0 | 0 | 0 | (62,520) |
Other comprehensive loss | (48) | 0 | 0 | (48) | 0 |
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 | ||||
Stock option exercises, value | 30,633 | $ 3 | 30,630 | 0 | 0 |
Stock option exercises, shares | 2,600 | ||||
Restricted stock vested during the period, net, value | 0 | $ 0 | 0 | 0 | 0 |
Restricted stock vested during the period, net, shares | 109 | ||||
Share-based compensation | 31,406 | $ 0 | 31,406 | 0 | 0 |
Balances, value at Dec. 31, 2013 | 230,185 | $ 123 | 960,375 | (11) | (730,302) |
Balances, shares at Dec. 31, 2013 | 122,615 | ||||
Net loss | (76,141) | $ 0 | 0 | 0 | (76,141) |
Other comprehensive loss | (18) | 0 | 0 | (18) | 0 |
Issuance of common stock for employee stock purchase plan, value | 4,939 | $ 0 | 4,939 | 0 | 0 |
Issuance of common stock for employee stock purchase plan, shares | 150 | ||||
Stock option exercises, value | 11,250 | $ 1 | 11,249 | 0 | 0 |
Stock option exercises, shares | 886 | ||||
Restricted stock vested during the period, net, value | 0 | $ 0 | 0 | 0 | 0 |
Restricted stock vested during the period, net, shares | 322 | ||||
Share-based compensation | 40,619 | $ 0 | 40,619 | 0 | 0 |
Balances, value at Dec. 31, 2014 | $ 210,834 | $ 124 | 1,017,182 | (29) | (806,443) |
Balances, shares at Dec. 31, 2014 | 123,973 | 123,973 | |||
Net loss | $ (120,486) | $ 0 | 0 | 0 | (120,486) |
Other comprehensive loss | (654) | 0 | 0 | (654) | 0 |
Issuance of common stock for employee stock purchase plan, value | 5,317 | $ 0 | 5,317 | 0 | 0 |
Issuance of common stock for employee stock purchase plan, shares | 201 | ||||
Stock option exercises, value | 22,446 | $ 2 | 22,444 | 0 | 0 |
Stock option exercises, shares | 1,502 | ||||
Restricted stock vested during the period, net, value | 0 | $ 1 | (1) | 0 | 0 |
Restricted stock vested during the period, net, shares | 535 | ||||
Issuance of common stock | 526,618 | $ 13 | 526,605 | 0 | 0 |
Issuance of common stock, shares | 13,463 | ||||
Share-based compensation | 41,836 | $ 0 | 41,836 | 0 | 0 |
Balances, value at Dec. 31, 2015 | $ 685,911 | $ 140 | $ 1,613,383 | $ (683) | $ (926,929) |
Balances, shares at Dec. 31, 2015 | 139,674 | 139,674 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating activities | |||
Net loss | $ (120,486) | $ (76,141) | $ (62,520) |
Adjustments to reconcile net loss to net cash used in operating activities | |||
Share-based compensation | 41,836 | 40,619 | 31,406 |
Depreciation and amortization | 14,505 | 12,490 | 8,615 |
Amortization of premiums, accretion of discounts and gain (loss) on investments | 2,846 | (150) | 1,883 |
Deferred rent and other long-term liabilities | (921) | (734) | (606) |
Changes in operating assets and liabilities | |||
Accounts receivable, net | (13,682) | (9,740) | 3,935 |
Inventories | (13,512) | (16,378) | 10,674 |
Prepaid expenses and other assets | (1,952) | (5,232) | (1,817) |
Accounts payable and accrued liabilities | 6,539 | 18,448 | 1,493 |
Deferred revenue | (48,376) | (23,181) | 5,827 |
Net cash used in operating activities | (133,203) | (59,999) | (1,110) |
Investing activities | |||
Purchases of securities available for sale | (754,663) | (451,274) | (483,182) |
Proceeds from maturities of securities available for sale | 367,200 | 504,100 | 480,700 |
Proceeds from sales of securities available for sale | 30,005 | 972 | 0 |
Purchases of property and equipment | (13,392) | (17,176) | (22,154) |
Purchase of cost-method investment | (5,000) | 0 | 0 |
Net cash provided by (used in) investing activities | (375,850) | 36,622 | (24,636) |
Financing activities | |||
Net proceeds from issuance of common stock | 526,618 | 0 | 0 |
Proceeds from exercise of stock options and employee stock purchase plan | 27,763 | 16,188 | 35,199 |
Net cash provided by financing activities | 554,381 | 16,188 | 35,199 |
Net increase (decrease) in cash and cash equivalents | 45,328 | (7,189) | 9,453 |
Cash and cash equivalents at beginning of year | 56,927 | 64,116 | 54,663 |
Cash and cash equivalents at end of year | $ 102,255 | $ 56,927 | $ 64,116 |
Organization and Business
Organization and Business | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Business | 1. Organization and Business Organization The Company is a biotechnology company focused on the development and commercialization of targeted therapies for the treatment of cancer. The Company’s marketed product ADCETRIS ® 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. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of presentation The accompanying consolidated financial statements reflect the accounts of Seattle Genetics, Inc. and its wholly-owned subsidiaries (collectively “Seattle Genetics” or the “Company”). The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP). All significant intercompany transactions and balances have been eliminated. Management has determined that the Company operates in one segment: the development and sale of pharmaceutical products on its own behalf or in collaboration with others. Substantially all of the Company’s assets and revenues are related to operations in the United States; however, the Company also has subsidiaries in the United Kingdom, Switzerland and Canada. Use of estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts in the financial statements and accompanying notes. 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 $5.4 million and $1.6 million of accrued capital expenditures as of December 31, 2015 and December 31, 2014, respectively. Accrued capital expenditures have been treated as a non-cash investing activity and, accordingly, are not reflected in the statement of cash flows. 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 loss 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, 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, net. Interest and dividends earned on all securities are included in investment and other income, 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, net. 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. 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. Production costs for the Company’s marketed product, ADCETRIS, are capitalized into inventory. 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 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 included in deferred rent and other long-term liabilities and recognized as a reduction in rent expense over the term of the applicable lease. Other non-current assets Included in other non-current assets are intangible assets resulting from milestone payments that became due upon the approval of ADCETRIS related to certain in-licensed technology. Intangible assets are amortized to cost of sales over the estimated life of the related licenses which range from six to ten years. December 31, 2015 2014 Intangible assets $ 5,650 $ 5,650 Less: accumulated amortization (3,343 ) (2,572 ) Total $ 2,307 $ 3,078 Amortization expenses on intangible assets was $0.8 million for each of the years ended December 31, 2015, 2014, and 2013, respectively. Assuming no changes in the cost basis of intangible assets, the estimated aggregate amortization for the next five years will total $2.3 million. Other non-current assets also include a $5.0 million non-controlling investment in a privately-held company that is accounted for under the cost method of accounting. The Company periodically evaluates the carrying value of the investment if significant adverse events or circumstances indicate a possible impairment. 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, 2015 as there have been no events warranting an impairment analysis. The Company’s long-lived assets are primarily 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 and experience to date. These estimates involve a substantial degree of judgment. Government-mandated rebates and chargebacks Distribution fees, product returns and other deductions Collaboration and license agreement revenues 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. 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 pre-commercial 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 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. These performance obligation periods currently range from one to fourteen years and all of the remaining performance obligation periods for our active collaborations are currently expected to be completed in four years or less. 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. Generally, all amounts received or due other than sales-based milestones and royalties are classified as collaboration and license agreement revenues as they are earned. Sales-based milestones and royalties are recognized as royalty revenue as they are reported to the Company. 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 pre-clinical studies. The Company’s collaborators must undertake significant pre-clinical 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 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’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, or Takeda, the Company may be involved in certain development activities; however, the achievement of milestone events under the agreement is primarily 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 primarily reflect amounts earned under the ADCETRIS collaboration with Takeda. These royalties include sales royalties, which 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, and commercial sales-based milestones. Takeda bears a portion of third-party royalty costs owed on its sales of ADCETRIS. This amount is included in royalty revenue in the Company’s 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. Royalty revenues also include amounts earned in connection with the Company’s ADC collaborations. 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 recording expense for 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 $16.4 million, $10.1 million, and $11.1 million in advertising expense during 2015, 2014, and 2013, respectively. 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 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 2015 2014 2013 Distributor A 24 % 22 % 18 % Distributor B 21 % 20 % 18 % Distributor C 18 % 16 % 15 % Collaborator A 17 % 25 % 22 % The following table presents each major distributor that accounted for more than 10% of accounts receivable as of the dates presented: Percent of total accounts 2015 2014 Distributor A 34 % 32 % Distributor B 29 % 32 % Distributor C 27 % 22 % 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 certain components of ADCETRIS and each of 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. 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. The Company has provided a full valuation allowance against its deferred tax assets for all periods presented. A valuation allowance is recorded when it is more likely than not that the net deferred tax asset will not be realized. 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, unrealized gains and losses on available-for-sale investments, and foreign currency translation adjustments. Legal matters The Company is involved in various legal proceedings in the normal course of its business. 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 procedures are expensed as incurred. Arizona State University and related entities filed patent infringement lawsuits in the United States and in Italy against the Company, and in Italy and France against Takeda, the Company’s licensee of rights to ADCETRIS outside the U.S. and Canada, concerning certain patents owned by Arizona State University. In August 2015, the lawsuit in the United States against the Company was dismissed by the U.S. District Court of Arizona. In September 2015, the Company, Takeda and Arizona State University and their related entities entered into an agreement to fully and finally settle all remaining claims and disputes between the parties throughout the world, including proceedings asserting European patent rights owned by Arizona State University. 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 continue 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 RSUs and options to purchase common stock from the calculation of basic and 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, 2015 2014 2013 Stock options and RSUs 11,953 11,868 11,745 Recent accounting pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update entitled “ASU 2014-09, Revenue from Contracts with Customers.” The standard requires entities to recognize revenue through an evaluation that includes identification of the contract, identification of the performance obligations, determination of the transaction price, allocation of the transaction price to the performance obligations, and recognition of revenue as the entity satisfies the performance obligations. In August 2015, FASB issued an Accounting Standards Update entitled “ASU 2015-14, Revenue from Contracts with Customers: Deferral of the Effective Date”, which defers the effective date of ASU 2014-09 to the Company’s fiscal year beginning January 1, 2018. The Company is currently evaluating the guidance to determine the potential impact on its financial condition, results of operations and cash flows, and financial statement disclosures. In November 2015, FASB issued an Accounting Standards Update entitled “ASU 2015-17, Income Taxes.” The standard simplifies the presentation of deferred income taxes. The Company has elected to prospectively adopt the standard for the annual period ended December 31, 2015. As the Company has a full valuation allowance against its deferred tax assets for all periods presented, the adoption had no material impact on the Company’s financial condition, results of operations and cash flows, and financial statement disclosures. In January 2016, FASB issued an Accounting Standards Update entitled “ASU 2016-01, Financial Instruments—Overall.” The standard addresses certain aspects of recognition, measurement, presentation and disclosure of financial instruments. The standard will become effective for the Company beginning January 1, 2018. The Company is currently evaluating the guidance to determine the potential impact on its financial condition, results of operations and cash flows, and financial statement disclosures. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | 3. Investments Investments consisted of available-for-sale securities as follows (in thousands): Amortized Gross Gross Fair December 31, 2015 U.S. Treasury securities $ 611,128 $ 1 $ (673 ) $ 610,456 Contractual Maturities Due in one year or less $ 532,823 $ 532,418 Due in one to two years 78,305 78,038 Total $ 611,128 $ 610,456 Amortized Gross Gross Fair December 31, 2014 U.S. Treasury securities $ 256,515 $ 2 $ (31 ) $ 256,486 Contractual Maturities Due in one year or less $ 256,515 $ 256,486 Investments are presented in the accompanying consolidated balance sheets as follows (in thousands): December 31, 2015 2014 Short-term investments $ 547,396 $ 256,486 Long-term investments 63,060 0 Total $ 610,456 $ 256,486 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 December 31, 2015 U.S. Treasury securities $ 605,457 $ (673 ) $ NA $ NA December 31, 2014 U.S. Treasury securities $ 205,966 $ (31 ) $ NA $ NA |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value | 4. Fair Value The Company holds short-term and long-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, 2015 or 2014 and did not transfer any investments in or out of Levels 1, 2 and 3 during the years ended December 31, 2015 or 2014. 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 As of December 31, 2015 Short-term investments—U.S. Treasury securities $ 547,396 $ 0 $ 0 $ 547,396 Long-term investments—U.S. Treasury securities 63,060 0 0 63,060 Total $ 610,456 $ 0 $ 0 $ 610,456 Fair value measurement using: Quoted prices Other Significant Total As of December 31, 2014 Cash equivalents—U.S. Treasury securities $ 5,003 $ 0 $ 0 $ 5,003 Short-term investments—U.S. Treasury securities 256,486 0 0 256,486 Total $ 261,489 $ 0 $ 0 $ 261,489 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories | 5. Inventories The following table presents the Company’s inventories of ADCETRIS (in thousands): December 31, 2015 2014 Raw materials $ 50,501 $ 35,865 Work in process 1,693 3,920 Finished goods 4,769 3,666 Total $ 56,963 $ 43,451 |
Property and equipment
Property and equipment | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment | 6. Property and equipment Property and equipment consisted of the following (in thousands): December 31, 2015 2014 Leasehold improvements $ 59,025 $ 49,118 Laboratory equipment 32,471 27,968 Computers, software and office equipment 10,700 9,264 Furniture and fixtures 6,157 5,944 108,353 92,294 Less: accumulated depreciation and amortization (58,755 ) (46,165 ) Total $ 49,598 $ 46,129 Depreciation and amortization expenses on property and equipment totaled $13.7 million, $11.7 million, and $7.8 million for the years ended December 31, 2015, 2014, and 2013, respectively. Leasehold improvements included $9.6 million of construction in process at December 31, 2015 related to facility improvements. |
Accounts payable and accrued li
Accounts payable and accrued liabilities | 12 Months Ended |
Dec. 31, 2015 | |
Payables and Accruals [Abstract] | |
Accounts payable and accrued liabilities | 7. Accounts payable and accrued liabilities Accounts payable and accrued liabilities consisted of the following (in thousands): December 31, 2015 2014 Employee compensation and benefits $ 24,829 $ 21,957 Trade accounts payable 20,786 17,245 Clinical trial and related costs 17,142 16,466 Contract manufacturing 12,780 10,764 Third-party royalties and government rebates 9,678 7,804 Other 2,816 3,445 Total $ 88,031 $ 77,681 |
Income taxes
Income taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income taxes | 8. 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, 2015 or 2014. 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, 2015, the Company has gross federal NOL carryforwards of $550.2 million expiring from 2020 to 2035 if not utilized, gross state NOL carryforwards of $152.6 million, gross foreign NOL carryforwards of $1.6 million and tax credit carryforwards of $75.3 million expiring from 2021 to 2035. 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. The Company has evaluated ownership changes through the year ended December 31, 2014 and believes that it is likely that utilization of its NOLs should not be limited under Section 382 as of December 31, 2014. It is possible that there may be a change in ownership after this date, which would limit the Company’s ability to utilize its NOL. Any limitation may result in the expiration of the NOL and tax credit carryforwards before utilization. The Company’s book income (loss) by jurisdiction consisted of the following (in thousands): December 31, 2015 2014 US $ (95,860 ) $ (76,141 ) Foreign (24,626 ) — Total $ (120,486 ) $ (76,141 ) The Company’s net deferred tax assets consisted of the following (in thousands): December 31, 2015 2014 Deferred tax assets Net operating loss carryforwards $ 145,595 $ 158,187 Foreign net operating loss 145 — Tax credit carryforwards 75,270 53,705 Deferred revenue 42,563 54,523 Share-based compensation 29,310 25,095 Capitalized research and development 6,806 8,053 Depreciation and amortization 6,103 4,423 Other 16,375 13,706 Total deferred tax assets 322,167 317,692 Less: valuation allowance (322,167 ) (317,692 ) Net deferred tax assets $ — $ — Increases in the valuation allowance were $4.5 million in 2015 and $37.2 million in 2014. A reconciliation of the federal statutory income tax rate to the effective income tax rate is as follows: Years ended December 31, 2015 2014 2013 Statutory federal income tax rate (35 %) (35 %) (35 %) Tax credits (13 ) (10 ) (16 ) Foreign rate differential 5 — — State income taxes and other 2 (4 ) 3 Valuation allowance 41 49 48 Effective tax rate 0 % 0 % 0 % The foreign rate differential in the table above reflects the effect of operations in jurisdictions with tax rates that differ from the rate in the United States. This primarily results from the Company’s operations in Switzerland which began in 2015. At December 31, 2015, unremitted earnings of the Company’s foreign subsidiaries, which were insignificant, will be retained indefinitely by the foreign subsidiaries for continuing investment. If foreign earnings were to be repatriated to the United States, the Company could be subject to additional U.S. federal income taxes. 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 1999 to 2015 remain subject to future examination for federal income taxes. |
Collaboration and license agree
Collaboration and license agreements | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Collaboration and license agreements | 9. 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, 2015 2014 2013 AbbVie $ 31,055 $ 14,851 $ 22,924 Takeda 17,234 31,787 41,529 Genentech 9,110 7,791 8,438 Bayer 2,002 5,062 12,000 Other 10,369 9,065 21,890 Total $ 69,770 $ 68,556 $ 106,781 Takeda ADCETRIS Collaboration The ADCETRIS collaboration provides for the global co-development of ADCETRIS and the commercialization of ADCETRIS by Takeda in its territory. 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. Additionally, the companies equally co-fund the cost of development activities conducted 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 Company recognizes as collaboration revenue the upfront payment, progress-dependent development and regulatory milestone payments, and net development cost reimbursement payments from Takeda over the ten-year development period of the collaboration which began in December 2009. When the performance of development activities under the collaboration results in the Company making a reimbursement payment to Takeda, the effect is to reduce the amount of collaboration revenue recorded by the Company. The Company also receives reimbursement for the cost of drug product supplied to Takeda for its use and, in some cases, pays Takeda for drug product they supply to the Company. The earned portion of net collaboration payments is reflected as a component of collaboration revenue. 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. Takeda also bears a portion of third-party royalty costs owed on its sales of ADCETRIS which is included as a component of the Company’s royalty revenue. 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. 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. Agensys Co-Development Collaboration The Company has entered into an agreement with Agensys to jointly research, develop and commercialize ADCs for the treatment of certain types of cancer. The agreement encompasses combinations of our ADC technology with fully-human antibodies developed by Agensys to proprietary cancer targets. Under this collaboration, Agensys conducted research and development aimed at identifying product candidates for multiple designated antigens and is now conducting clinical trials on various ADC product candidates. The Company and Agensys are co-funding all development and commercialization costs for ASG-22ME and ASG-15ME, and will share equally in any profits that may come from these product candidates if successfully commercialized. 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, 2015 2014 2013 Research and development expense using contractual rates $ 539 $ 275 $ 2,574 Co-development funding paid to Agensys 5,545 3,785 8,096 Total $ 6,084 $ 4,060 $ 10,670 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. Unum Therapeutics Collaboration In June 2015, the Company entered into a strategic collaboration and license agreement with Unum Therapeutics, Inc., or Unum, to develop and commercialize novel antibody-coupled T-cell receptor, or ACTR, therapies for cancer. Under the terms of the agreement, the Company made an upfront payment of $25.0 million and an equity investment of $5.0 million in Unum. The agreement provides for the Company and Unum to initially develop two ACTR products incorporating the Company’s antibodies, and the Company has an option to expand the collaboration to include a third ACTR product upon payment of an additional fee. Unum is conducting preclinical research and clinical development activities through phase 1 and the Company is providing funding for these activities. The agreement calls for the Company and Unum to work together to co-develop and jointly fund programs after phase 1 unless either company opts out. The Company and Unum would co-commercialize any successfully developed product candidates and share any profits 50/50 on any co-developed programs in the United States. The Company retains exclusive commercial rights outside of the United States, paying Unum a royalty that is a high single digit to mid-teens percentage of ex-U.S. sales. The potential future licensing and progress-dependent milestone payments to Unum under the collaboration may total up to $615 million across all three ACTR programs, payment of which is triggered by the achievement of development, regulatory and commercial milestones. 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. Funding provided to Unum under the collaboration agreement totaled $0.6 million in 2015. ADC collaboration agreements The Company has entered into collaborations for its ADC technology with a number of biotechnology and pharmaceutical companies. Under the ADC collaborations, which the Company enters into in the ordinary course of business, 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 ADC collaborators during the performance obligation period of the collaboration. The Company receives upfront cash payments, 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 materials provided under the agreements. The Company is also entitled to receive royalties on net sales of any resulting products incorporating its ADC technology. The Company’s ADC collaborators are solely responsible for research, product development, manufacturing and commercialization of all products under these collaborations. Revenues from the ADC collaboration agreement with AbbVie include the impact of upfront payments associated with expansion of the collaboration and product development milestones. |
License agreements
License agreements | 12 Months Ended |
Dec. 31, 2015 | |
Text Block [Abstract] | |
License agreements | 10. 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. University of Miami. Other Licenses |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | 11. Commitments and contingencies The Company is obligated to make future minimum payments under five operating leases for approximately 355,000 square feet of space used for general office and research and development purposes. The leases expire in 2018 through 2024 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 $3.2 million at December 31, 2015 and $4.1 million at December 31, 2014. 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 Years ending December 31, 2016 6,126 63,626 2017 6,991 17,779 2018 4,701 17,232 2019 2,495 16,704 2020 2,570 15,621 Thereafter 9,564 22,345 $ 32,447 $ 153,307 Rent expense attributable to noncancelable operating leases totaled approximately $4.1 million, $3.6 million, and $3.3 million for the years ended December 31, 2015, 2014, and 2013, respectively. Noncancelable obligations under other agreements do not include payments that are contingent upon achievement of certain progress-dependent milestones, as well as the payment of 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, 2015 | |
Equity [Abstract] | |
Stockholders' equity | 12. Stockholders’ equity Common stock In September 2015, the Company completed an underwritten public offering of 13,463,415 shares of its common stock at a public offering price of $41.00 per share. The offering resulted in net proceeds to the Company of approximately $526.6 million, after deducting underwriting discounts and commissions and other offering expenses. At December 31, 2015, shares of common stock reserved for future issuance are as follows (in thousands): Stock options and RSUs outstanding 12,405 Shares available for future grant under the 2007 Equity Incentive Plan 2,905 Employee stock purchase plan shares available for future issuance 964 Total 16,274 |
Share-based compensation
Share-based compensation | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-based compensation | 13. 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 2007 Plan was amended and restated in May 2014 to reserve an additional 4,500,000 shares thereunder, such that an aggregate of 21,000,000 shares of the Company’s common stock were reserved for issuance under the 2007 Plan at December 31, 2015. Under the 2007 Plan, the Company may issue stock options (including incentive stock options and nonstatutory stock options), restricted stock, RSUs, stock appreciation rights and other similar types of awards (including awards, such as RSUs, 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). 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 2007 Plan was also amended and restated in May 2014 to extend its term through May 2024 unless it is terminated earlier pursuant to its terms. 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 option 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. RSUs granted to employees and the initial RSU grant to new directors 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. Share-based compensation The Company recorded total share based compensation cost of $41.8 million, $40.6 million, and $31.4 million for the years ended December 31, 2015, 2014, and 2013, respectively. No tax benefit was recognized related to share-based compensation cost since the Company has not reported taxable income to date and has established a full valuation allowance to offset all of the potential tax benefits associated with its deferred tax assets. During 2015, 2014, and 2013, $1.4 million, $1.4 million, and $1.2 million of share based compensation costs were included in production overhead used in the determination of inventory cost, 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: 2007 Plan Employee Stock Purchase Plan 2015 2014 2013 2015 2014 2013 Risk-free interest rate 1.5 % 1.7 % 1.6 % 0.1 % 0.1 % 0.1 % Expected lives in years 5.5 5.5 5.6 0.5 0.5 0.5 Expected dividends 0 % 0 % 0 % 0 % 0 % 0 % Expected volatility 42 % 44 % 50 % 42 % 41 % 35 % 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 Balances at December 31, 2014 10,729,291 $ 22.04 Granted 1,724,205 39.43 Exercised (1,501,733 ) 14.95 Forfeited/expired (379,100 ) 38.77 Balances at December 31, 2015 10,572,663 $ 25.28 6.19 $ 207,586 Expected to vest 10,290,947 $ 24.87 6.11 $ 206,290 Options exercisable 7,379,212 $ 18.99 5.02 $ 191,114 The weighted average grant-date fair values of options granted with exercise prices equal to market were $15.84, $18.24, and $18.88 for the years ended December 31, 2015, 2014, and 2013, respectively. The aggregate intrinsic value in the table above 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, 2015. The aggregate intrinsic value of options exercised was $36.2 million during 2015, $27.7 million during 2014, and $61.3 million during 2013, determined as of the date of option exercise. As of December 31, 2015, there was approximately $27.4 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 1.41 years. The Company utilizes newly issued shares to satisfy option exercises. RSU activity 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- Non-vested at December 31, 2014 1,835,622 $ 36.50 Changes during the period: Granted 765,028 39.17 Vested (534,866 ) 25.93 Forfeited (233,080 ) 37.67 Non-vested at December 31, 2015 1,832,704 $ 40.55 The total value of RSUs that vested during 2015 (measured on the date of vesting) was $22.3 million. As of December 31, 2015, there was approximately $36.7 million of total unrecognized compensation cost related to non-vested RSU awards that will be recognized as expense over a weighted-average period of 1.69 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 964,000 shares of common stock available for issuance as of December 31, 2015. Activity under the Stock Purchase Plan for the years ended December 31, was as follows: Shares Weighted- 2015 201,103 $ 26.44 2014 149,576 $ 33.02 2013 196,446 $ 23.24 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, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee benefit plan | 14. 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. The Company’s matching contribution vests over four years from the start of employment. Under this matching program, the Company contributed a total of approximately $2.6 million in 2015, $2.2 million in 2014, and $1.9 million in 2013. |
Quarterly Financial Data
Quarterly Financial Data | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data | 15. Quarterly Financial Data (unaudited) The following table contains selected unaudited financial data for each quarter of 2015 and 2014. 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, 2015 Total revenues $ 82,157 $ 77,096 $ 84,072 $ 93,477 Net loss $ (21,690 ) $ (47,502 ) $ (26,438 ) $ (24,856 ) Net loss per share—basic and diluted $ (0.17 ) $ (0.38 ) $ (0.21 ) $ (0.18 ) 2014 Total revenues $ 68,271 $ 68,308 $ 75,853 $ 74,326 Net loss $ (16,301 ) $ (17,590 ) $ (15,566 ) $ (26,684 ) Net loss per share—basic and diluted $ (0.13 ) $ (0.14 ) $ (0.13 ) $ (0.22 ) |
Organization and Business (Poli
Organization and Business (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
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. |
Basis of presentation | Basis of presentation The accompanying consolidated financial statements reflect the accounts of Seattle Genetics, Inc. and its wholly-owned subsidiaries (collectively “Seattle Genetics” or the “Company”). The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP). All significant intercompany transactions and balances have been eliminated. Management has determined that the Company operates in one segment: the development and sale of pharmaceutical products on its own behalf or in collaboration with others. Substantially all of the Company’s assets and revenues are related to operations in the United States; however, the Company also has subsidiaries in the United Kingdom, Switzerland and Canada. |
Use of estimates | Use of estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts in the financial statements and accompanying notes. 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 $5.4 million and $1.6 million of accrued capital expenditures as of December 31, 2015 and December 31, 2014, respectively. Accrued capital expenditures have been treated as a non-cash investing activity and, accordingly, are not reflected in the statement of cash flows. |
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 loss 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, 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, net. Interest and dividends earned on all securities are included in investment and other income, 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, net. |
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. |
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. Production costs for the Company’s marketed product, ADCETRIS, are capitalized into inventory. 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 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 included in deferred rent and other long-term liabilities and recognized as a reduction in rent expense over the term of the applicable lease. |
Other non-current assets | Other non-current assets Included in other non-current assets are intangible assets resulting from milestone payments that became due upon the approval of ADCETRIS related to certain in-licensed technology. Intangible assets are amortized to cost of sales over the estimated life of the related licenses which range from six to ten years. December 31, 2015 2014 Intangible assets $ 5,650 $ 5,650 Less: accumulated amortization (3,343 ) (2,572 ) Total $ 2,307 $ 3,078 Amortization expenses on intangible assets was $0.8 million for each of the years ended December 31, 2015, 2014, and 2013, respectively. Assuming no changes in the cost basis of intangible assets, the estimated aggregate amortization for the next five years will total $2.3 million. Other non-current assets also include a $5.0 million non-controlling investment in a privately-held company that is accounted for under the cost method of accounting. The Company periodically evaluates the carrying value of the investment if significant adverse events or circumstances indicate a possible impairment. |
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, 2015 as there have been no events warranting an impairment analysis. The Company’s long-lived assets are primarily 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 and experience to date. These estimates involve a substantial degree of judgment. Government-mandated rebates and chargebacks Distribution fees, product returns and other deductions Collaboration and license agreement revenues 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. 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 pre-commercial 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 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. These performance obligation periods currently range from one to fourteen years and all of the remaining performance obligation periods for our active collaborations are currently expected to be completed in four years or less. 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. Generally, all amounts received or due other than sales-based milestones and royalties are classified as collaboration and license agreement revenues as they are earned. Sales-based milestones and royalties are recognized as royalty revenue as they are reported to the Company. 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 pre-clinical studies. The Company’s collaborators must undertake significant pre-clinical 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 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’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, or Takeda, the Company may be involved in certain development activities; however, the achievement of milestone events under the agreement is primarily 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 primarily reflect amounts earned under the ADCETRIS collaboration with Takeda. These royalties include sales royalties, which 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, and commercial sales-based milestones. Takeda bears a portion of third-party royalty costs owed on its sales of ADCETRIS. This amount is included in royalty revenue in the Company’s 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. Royalty revenues also include amounts earned in connection with the Company’s ADC collaborations. |
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 recording expense for 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 $16.4 million, $10.1 million, and $11.1 million in advertising expense during 2015, 2014, and 2013, respectively. |
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 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 2015 2014 2013 Distributor A 24 % 22 % 18 % Distributor B 21 % 20 % 18 % Distributor C 18 % 16 % 15 % Collaborator A 17 % 25 % 22 % The following table presents each major distributor that accounted for more than 10% of accounts receivable as of the dates presented: Percent of total accounts 2015 2014 Distributor A 34 % 32 % Distributor B 29 % 32 % Distributor C 27 % 22 % |
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 certain components of ADCETRIS and each of 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. |
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. The Company has provided a full valuation allowance against its deferred tax assets for all periods presented. A valuation allowance is recorded when it is more likely than not that the net deferred tax asset will not be realized. |
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, unrealized gains and losses on available-for-sale investments, and foreign currency translation adjustments. |
Legal matters | Legal matters The Company is involved in various legal proceedings in the normal course of its business. 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 procedures are expensed as incurred. Arizona State University and related entities filed patent infringement lawsuits in the United States and in Italy against the Company, and in Italy and France against Takeda, the Company’s licensee of rights to ADCETRIS outside the U.S. and Canada, concerning certain patents owned by Arizona State University. In August 2015, the lawsuit in the United States against the Company was dismissed by the U.S. District Court of Arizona. In September 2015, the Company, Takeda and Arizona State University and their related entities entered into an agreement to fully and finally settle all remaining claims and disputes between the parties throughout the world, including proceedings asserting European patent rights owned by Arizona State University. |
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 continue 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 RSUs and options to purchase common stock from the calculation of basic and 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, 2015 2014 2013 Stock options and RSUs 11,953 11,868 11,745 |
Recent accounting pronouncements | Recent accounting pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update entitled “ASU 2014-09, Revenue from Contracts with Customers.” The standard requires entities to recognize revenue through an evaluation that includes identification of the contract, identification of the performance obligations, determination of the transaction price, allocation of the transaction price to the performance obligations, and recognition of revenue as the entity satisfies the performance obligations. In August 2015, FASB issued an Accounting Standards Update entitled “ASU 2015-14, Revenue from Contracts with Customers: Deferral of the Effective Date”, which defers the effective date of ASU 2014-09 to the Company’s fiscal year beginning January 1, 2018. The Company is currently evaluating the guidance to determine the potential impact on its financial condition, results of operations and cash flows, and financial statement disclosures. In November 2015, FASB issued an Accounting Standards Update entitled “ASU 2015-17, Income Taxes.” The standard simplifies the presentation of deferred income taxes. The Company has elected to prospectively adopt the standard for the annual period ended December 31, 2015. As the Company has a full valuation allowance against its deferred tax assets for all periods presented, the adoption had no material impact on the Company’s financial condition, results of operations and cash flows, and financial statement disclosures. In January 2016, FASB issued an Accounting Standards Update entitled “ASU 2016-01, Financial Instruments—Overall.” The standard addresses certain aspects of recognition, measurement, presentation and disclosure of financial instruments. The standard will become effective for the Company beginning January 1, 2018. The Company is currently evaluating the guidance to determine the potential impact on its financial condition, results of operations and cash flows, and financial statement disclosures. |
Summary of Significant Accoun23
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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 Intangible Assets | Intangible assets are amortized to cost of sales over the estimated life of the related licenses which range from six to ten years. December 31, 2015 2014 Intangible assets $ 5,650 $ 5,650 Less: accumulated amortization (3,343 ) (2,572 ) Total $ 2,307 $ 3,078 |
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 2015 2014 2013 Distributor A 24 % 22 % 18 % Distributor B 21 % 20 % 18 % Distributor C 18 % 16 % 15 % Collaborator A 17 % 25 % 22 % |
Schedule of Concentration of Accounts Receivable Attributable to Certain Major Distributors | The following table presents each major distributor that accounted for more than 10% of accounts receivable as of the dates presented: Percent of total accounts 2015 2014 Distributor A 34 % 32 % Distributor B 29 % 32 % Distributor C 27 % 22 % |
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, 2015 2014 2013 Stock options and RSUs 11,953 11,868 11,745 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Available-for-Sale Securities | Investments consisted of available-for-sale securities as follows (in thousands): Amortized Gross Gross Fair December 31, 2015 U.S. Treasury securities $ 611,128 $ 1 $ (673 ) $ 610,456 Contractual Maturities Due in one year or less $ 532,823 $ 532,418 Due in one to two years 78,305 78,038 Total $ 611,128 $ 610,456 Amortized Gross Gross Fair December 31, 2014 U.S. Treasury securities $ 256,515 $ 2 $ (31 ) $ 256,486 Contractual Maturities Due in one year or less $ 256,515 $ 256,486 |
Summary of Investments | Investments are presented in the accompanying consolidated balance sheets as follows (in thousands): December 31, 2015 2014 Short-term investments $ 547,396 $ 256,486 Long-term investments 63,060 0 Total $ 610,456 $ 256,486 |
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 December 31, 2015 U.S. Treasury securities $ 605,457 $ (673 ) $ NA $ NA December 31, 2014 U.S. Treasury securities $ 205,966 $ (31 ) $ NA $ NA |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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 As of December 31, 2015 Short-term investments—U.S. Treasury securities $ 547,396 $ 0 $ 0 $ 547,396 Long-term investments—U.S. Treasury securities 63,060 0 0 63,060 Total $ 610,456 $ 0 $ 0 $ 610,456 Fair value measurement using: Quoted prices Other Significant Total As of December 31, 2014 Cash equivalents—U.S. Treasury securities $ 5,003 $ 0 $ 0 $ 5,003 Short-term investments—U.S. Treasury securities 256,486 0 0 256,486 Total $ 261,489 $ 0 $ 0 $ 261,489 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | The following table presents the Company’s inventories of ADCETRIS (in thousands): December 31, 2015 2014 Raw materials $ 50,501 $ 35,865 Work in process 1,693 3,920 Finished goods 4,769 3,666 Total $ 56,963 $ 43,451 |
Property and equipment (Tables)
Property and equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment consisted of the following (in thousands): December 31, 2015 2014 Leasehold improvements $ 59,025 $ 49,118 Laboratory equipment 32,471 27,968 Computers, software and office equipment 10,700 9,264 Furniture and fixtures 6,157 5,944 108,353 92,294 Less: accumulated depreciation and amortization (58,755 ) (46,165 ) Total $ 49,598 $ 46,129 |
Accounts payable and accrued 28
Accounts payable and accrued liabilities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities | Accounts payable and accrued liabilities consisted of the following (in thousands): December 31, 2015 2014 Employee compensation and benefits $ 24,829 $ 21,957 Trade accounts payable 20,786 17,245 Clinical trial and related costs 17,142 16,466 Contract manufacturing 12,780 10,764 Third-party royalties and government rebates 9,678 7,804 Other 2,816 3,445 Total $ 88,031 $ 77,681 |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of Company's Book Income (Loss) by Jurisdiction | The Company’s book income (loss) by jurisdiction consisted of the following (in thousands): December 31, 2015 2014 US $ (95,860 ) $ (76,141 ) Foreign (24,626 ) — Total $ (120,486 ) $ (76,141 ) |
Schedule of Deferred Tax Assets | The Company’s net deferred tax assets consisted of the following (in thousands): December 31, 2015 2014 Deferred tax assets Net operating loss carryforwards $ 145,595 $ 158,187 Foreign net operating loss 145 — Tax credit carryforwards 75,270 53,705 Deferred revenue 42,563 54,523 Share-based compensation 29,310 25,095 Capitalized research and development 6,806 8,053 Depreciation and amortization 6,103 4,423 Other 16,375 13,706 Total deferred tax assets 322,167 317,692 Less: valuation allowance (322,167 ) (317,692 ) Net deferred tax assets $ — $ — |
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, 2015 2014 2013 Statutory federal income tax rate (35 %) (35 %) (35 %) Tax credits (13 ) (10 ) (16 ) Foreign rate differential 5 — — State income taxes and other 2 (4 ) 3 Valuation allowance 41 49 48 Effective tax rate 0 % 0 % 0 % |
Collaboration and license agr30
Collaboration and license agreements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 2014 2013 AbbVie $ 31,055 $ 14,851 $ 22,924 Takeda 17,234 31,787 41,529 Genentech 9,110 7,791 8,438 Bayer 2,002 5,062 12,000 Other 10,369 9,065 21,890 Total $ 69,770 $ 68,556 $ 106,781 |
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, 2015 2014 2013 Research and development expense using contractual rates $ 539 $ 275 $ 2,574 Co-development funding paid to Agensys 5,545 3,785 8,096 Total $ 6,084 $ 4,060 $ 10,670 |
Commitments and contingencies (
Commitments and contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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 Years ending December 31, 2016 6,126 63,626 2017 6,991 17,779 2018 4,701 17,232 2019 2,495 16,704 2020 2,570 15,621 Thereafter 9,564 22,345 $ 32,447 $ 153,307 |
Stockholders' equity (Tables)
Stockholders' equity (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Schedule of Common Stock Reserved for Future Issuance | At December 31, 2015, shares of common stock reserved for future issuance are as follows (in thousands): Stock options and RSUs outstanding 12,405 Shares available for future grant under the 2007 Equity Incentive Plan 2,905 Employee stock purchase plan shares available for future issuance 964 Total 16,274 |
Share-based compensation (Table
Share-based compensation (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based 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: 2007 Plan Employee Stock Purchase Plan 2015 2014 2013 2015 2014 2013 Risk-free interest rate 1.5 % 1.7 % 1.6 % 0.1 % 0.1 % 0.1 % Expected lives in years 5.5 5.5 5.6 0.5 0.5 0.5 Expected dividends 0 % 0 % 0 % 0 % 0 % 0 % Expected volatility 42 % 44 % 50 % 42 % 41 % 35 % |
Schedule of Stock Option Activity | A summary of stock option activity is as follows: Shares Weighted- Weighted-average Aggregate Balances at December 31, 2014 10,729,291 $ 22.04 Granted 1,724,205 39.43 Exercised (1,501,733 ) 14.95 Forfeited/expired (379,100 ) 38.77 Balances at December 31, 2015 10,572,663 $ 25.28 6.19 $ 207,586 Expected to vest 10,290,947 $ 24.87 6.11 $ 206,290 Options exercisable 7,379,212 $ 18.99 5.02 $ 191,114 |
Schedule of Non-Vested Restricted Stock Units | A summary of RSU activity under the 2007 Plan is as follows: Non-vested RSUs Share Weighted- Non-vested at December 31, 2014 1,835,622 $ 36.50 Changes during the period: Granted 765,028 39.17 Vested (534,866 ) 25.93 Forfeited (233,080 ) 37.67 Non-vested at December 31, 2015 1,832,704 $ 40.55 |
Schedule of Activity under Stock Purchase Plan | Activity under the Stock Purchase Plan for the years ended December 31, was as follows: Shares Weighted- 2015 201,103 $ 26.44 2014 149,576 $ 33.02 2013 196,446 $ 23.24 |
Quarterly Financial Data (Table
Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 Total revenues $ 82,157 $ 77,096 $ 84,072 $ 93,477 Net loss $ (21,690 ) $ (47,502 ) $ (26,438 ) $ (24,856 ) Net loss per share—basic and diluted $ (0.17 ) $ (0.38 ) $ (0.21 ) $ (0.18 ) 2014 Total revenues $ 68,271 $ 68,308 $ 75,853 $ 74,326 Net loss $ (16,301 ) $ (17,590 ) $ (15,566 ) $ (26,684 ) Net loss per share—basic and diluted $ (0.13 ) $ (0.14 ) $ (0.13 ) $ (0.22 ) |
Summary of Significant Accoun35
Summary of Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2015USD ($)Segment | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | |||
Number of reporting segment operated | Segment | 1 | ||
Accrued capital expenditures | $ 5,400,000 | $ 1,600,000 | |
Amortization expenses | 800,000 | 800,000 | $ 800,000 |
Estimated aggregate amortization for next five years | 2,300,000 | ||
Cost method investment, carrying value | 5,000,000 | ||
Impairment losses recognized | $ 0 | ||
Number of days allowed to the customer to return product for expiration or damaged | 30 days | ||
Advertising expenses | $ 16,400,000 | $ 10,100,000 | $ 11,100,000 |
Minimum [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated life of certain in-licensed technology, in years | 6 years | ||
Minimum [Member] | Collaboration and License Agreement Revenues [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Performance obligation periods of each agreement, years | 1 year | ||
Maximum [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated life of certain in-licensed technology, in years | 10 years | ||
Maximum [Member] | Collaboration and License Agreement Revenues [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Performance obligation periods of each agreement, years | 14 years | ||
Remaining performance obligation periods of each agreement, years | 4 years |
Summary of Significant Accoun36
Summary of Significant Accounting Policies - Schedule of Property and Equipment, Estimated Useful Lives (Detail) | 12 Months Ended |
Dec. 31, 2015 | |
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 |
Summary of Significant Accoun37
Summary of Significant Accounting Policies - Schedule of Other Non-Current Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Intangible assets | $ 5,650 | $ 5,650 |
Less: accumulated amortization | (3,343) | (2,572) |
Total | $ 2,307 | $ 3,078 |
Summary of Significant Accoun38
Summary of Significant Accounting Policies - Schedule of Percent of Revenue Associated with Each Major Distributor or Collaborator (Detail) - Customer Concentration Risk [Member] - Sales Revenue [Member] | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Distributor A [Member] | |||
Revenue, Major Customer [Line Items] | |||
Percent of total revenues | 24.00% | 22.00% | 18.00% |
Distributor B [Member] | |||
Revenue, Major Customer [Line Items] | |||
Percent of total revenues | 21.00% | 20.00% | 18.00% |
Distributor C [Member] | |||
Revenue, Major Customer [Line Items] | |||
Percent of total revenues | 18.00% | 16.00% | 15.00% |
Collaborator A [Member] | |||
Revenue, Major Customer [Line Items] | |||
Percent of total revenues | 17.00% | 25.00% | 22.00% |
Summary of Significant Accoun39
Summary of Significant Accounting Policies - Schedule of Concentration of Accounts Receivable Attributable to Certain Major Distributors (Detail) - Credit Concentration Risk [Member] | Dec. 31, 2015 | Dec. 31, 2014 |
Distributor A [Member] | ||
Entity Wide Accounts Receivable Major Customer [Line Items] | ||
Percent of total accounts receivable | 34.00% | 32.00% |
Distributor B [Member] | ||
Entity Wide Accounts Receivable Major Customer [Line Items] | ||
Percent of total accounts receivable | 29.00% | 32.00% |
Distributor C [Member] | ||
Entity Wide Accounts Receivable Major Customer [Line Items] | ||
Percent of total accounts receivable | 27.00% | 22.00% |
Summary of Significant Accoun40
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) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Stock Options and RSUs [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 | 11,953 | 11,868 | 11,745 |
Investments - Available-for-Sal
Investments - Available-for-Sale Securities (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, Amortized cost | $ 611,128 | |
Available-for-sale securities, Fair value | 610,456 | $ 256,486 |
U.S. Treasury Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, Amortized cost | 611,128 | 256,515 |
Available-for-sale securities, Gross unrealized gains | 1 | 2 |
Available-for-sale securities, Gross unrealized losses | (673) | (31) |
Available-for-sale securities, Fair value | 610,456 | 256,486 |
Contractual Maturities Due in One Year or Less [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, Amortized cost | 532,823 | 256,515 |
Available-for-sale securities, Fair value | 532,418 | $ 256,486 |
Contractual Maturities Due in One to Two Years [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, Amortized cost | 78,305 | |
Available-for-sale securities, Fair value | $ 78,038 |
Investments - Summary of Invest
Investments - Summary of Investments (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Investments, Debt and Equity Securities [Abstract] | ||
Short-term investments | $ 547,396 | $ 256,486 |
Long-term investments | 63,060 | 0 |
Total | $ 610,456 | $ 256,486 |
Investments - Estimated Fair Va
Investments - Estimated Fair Value of Investments with Unrealized Losses (Detail) - U.S. Treasury Securities [Member] - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, Period of continuous unrealized loss, 12 Months or less, Fair value | $ 605,457 | $ 205,966 |
Available-for-sale securities, Period of continuous unrealized loss, 12 Months or less, Gross unrealized losses | (673) | (31) |
Available-for-sale securities, Period of continuous unrealized loss, Greater than 12 months, Fair value | 0 | 0 |
Available-for-sale securities, Period of continuous unrealized loss, Greater than 12 months, Gross unrealized losses | $ 0 | $ 0 |
Fair Value - Additional Informa
Fair Value - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Fair Value Disclosures [Abstract] | |
Transfer of investments between Levels 1, 2 and 3 | $ 0 |
Fair Value - Schedule of Financ
Fair Value - Schedule of Financial Assets by Level within Fair Value Hierarchy (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | $ 610,456 | $ 261,489 |
U.S. Treasury Securities [Member] | Cash Equivalents [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 5,003 | |
U.S. Treasury Securities [Member] | Short-term Investments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 547,396 | 256,486 |
U.S. Treasury Securities [Member] | Long-term Investments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 63,060 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 610,456 | 261,489 |
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] | ||
Investments | 5,003 | |
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 | 547,396 | 256,486 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | U.S. Treasury Securities [Member] | Long-term Investments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 63,060 | |
Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 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] | ||
Investments | 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 |
Other Observable Inputs (Level 2) [Member] | U.S. Treasury Securities [Member] | Long-term Investments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | |
Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 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] | ||
Investments | 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 |
Significant Unobservable Inputs (Level 3) [Member] | U.S. Treasury Securities [Member] | Long-term Investments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | $ 0 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 50,501 | $ 35,865 |
Work in process | 1,693 | 3,920 |
Finished goods | 4,769 | 3,666 |
Total | $ 56,963 | $ 43,451 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment [Abstract] | ||
Leasehold improvements | $ 59,025 | $ 49,118 |
Laboratory equipment | 32,471 | 27,968 |
Computers, software and office equipment | 10,700 | 9,264 |
Furniture and fixtures | 6,157 | 5,944 |
Property and equipment, gross | 108,353 | 92,294 |
Less: accumulated depreciation and amortization | (58,755) | (46,165) |
Total | $ 49,598 | $ 46,129 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation and amortization expenses | $ 13.7 | $ 11.7 | $ 7.8 |
Construction in process included in Leasehold improvements related to facility improvements | $ 9.6 |
Accounts Payable and Accrued 49
Accounts Payable and Accrued Liabilities - Schedule of Accounts Payable and Accrued Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Payables and Accruals [Abstract] | ||
Employee compensation and benefits | $ 24,829 | $ 21,957 |
Trade accounts payable | 20,786 | 17,245 |
Clinical trial and related costs | 17,142 | 16,466 |
Contract manufacturing | 12,780 | 10,764 |
Third-party royalties and government rebates | 9,678 | 7,804 |
Other | 2,816 | 3,445 |
Total | $ 88,031 | $ 77,681 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Income Taxes [Line Items] | ||
Unrecognized tax benefits | $ 0 | $ 0 |
Tax credit carryforwards | 75,270,000 | 53,705,000 |
Increases in the valuation allowance | 4,500,000 | $ 37,200,000 |
Federal [Member] | ||
Income Taxes [Line Items] | ||
Gross net operating loss carryforwards | 550,200,000 | |
State [Member] | ||
Income Taxes [Line Items] | ||
Gross net operating loss carryforwards | 152,600,000 | |
Foreign [Member] | ||
Income Taxes [Line Items] | ||
Gross net operating loss carryforwards | $ 1,600,000 | |
Earliest Tax Year [Member] | ||
Income Taxes [Line Items] | ||
Tax years subject to future examination for federal income taxes | 1,999 | |
Latest Tax Year [Member] | ||
Income Taxes [Line Items] | ||
Tax years subject to future examination for federal income taxes | 2,015 | |
Minimum [Member] | ||
Income Taxes [Line Items] | ||
Tax credit carryforwards expiration dates | 2,021 | |
Minimum [Member] | Federal [Member] | ||
Income Taxes [Line Items] | ||
Net operating loss expiration dates | 2,020 | |
Maximum [Member] | ||
Income Taxes [Line Items] | ||
Tax credit carryforwards expiration dates | 2,035 | |
Maximum [Member] | Federal [Member] | ||
Income Taxes [Line Items] | ||
Net operating loss expiration dates | 2,035 |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Company's Book Income (Loss) by Jurisdiction (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest [Abstract] | ||
US | $ (95,860) | $ (76,141) |
Foreign | (24,626) | |
Total | $ (120,486) | $ (76,141) |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets | ||
Net operating loss carryforwards | $ 145,595 | $ 158,187 |
Foreign net operating loss | 145 | |
Tax credit carryforwards | 75,270 | 53,705 |
Deferred revenue | 42,563 | 54,523 |
Share-based compensation | 29,310 | 25,095 |
Capitalized research and development | 6,806 | 8,053 |
Depreciation and amortization | 6,103 | 4,423 |
Other | 16,375 | 13,706 |
Total deferred tax assets | 322,167 | 317,692 |
Less: valuation allowance | (322,167) | (317,692) |
Net deferred tax assets | $ 0 | $ 0 |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Effective Income Tax Rate Reconciliation, Other Reconciling Items, Percent [Abstract] | |||
Statutory federal income tax rate | (35.00%) | (35.00%) | (35.00%) |
Tax credits | (13.00%) | (10.00%) | (16.00%) |
Foreign rate differential | 5.00% | ||
State income taxes and other | 2.00% | (4.00%) | 3.00% |
Valuation allowance | 41.00% | 49.00% | 48.00% |
Effective tax rate | 0.00% | 0.00% | 0.00% |
Collaboration and License Agr54
Collaboration and License Agreements - Schedule of Revenues Recognized under Agreements (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||
Revenues from collaboration and license agreements | $ 69,770 | $ 68,556 | $ 106,781 |
AbbVie [Member] | |||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||
Revenues from collaboration and license agreements | 31,055 | 14,851 | 22,924 |
Takeda [Member] | |||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||
Revenues from collaboration and license agreements | 17,234 | 31,787 | 41,529 |
Genentech [Member] | |||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||
Revenues from collaboration and license agreements | 9,110 | 7,791 | 8,438 |
Bayer [Member] | |||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||
Revenues from collaboration and license agreements | 2,002 | 5,062 | 12,000 |
Other [Member] | |||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||
Revenues from collaboration and license agreements | $ 10,369 | $ 9,065 | $ 21,890 |
Collaboration and License Agr55
Collaboration and License Agreements - Additional Information (Detail) - USD ($) | 1 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2015 | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Cost method investment, carrying value | $ 5,000,000 | |
Takeda [Member] | ||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Estimated development term and collaboration agreement, years | 10 years | |
Unum Therapeutics Collaboration [Member] | ||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Upfront payment | $ 25,000,000 | |
Cost method investment, carrying value | $ 5,000,000 | |
Future profits share on co-developed programs | 50/50 | |
Funding provided under the collaboration agreement | $ 600,000 | |
Unum Therapeutics Collaboration [Member] | Maximum [Member] | ||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Potential future licensing and progress dependent milestone payments | $ 615,000,000 |
Collaboration and License Agr56
Collaboration and License Agreements - Summary of Research and Development Expenses Incurred and Funding Provided to Agensys (Detail) - Agensys Co-Development Collaboration [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |||
Research and development expense using contractual rates | $ 539 | $ 275 | $ 2,574 |
Co-development funding paid to Agensys | 5,545 | 3,785 | 8,096 |
Total | $ 6,084 | $ 4,060 | $ 10,670 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015USD ($)ft²Lease | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Other Commitments [Line Items] | |||
Approximate area of facility, square footage | ft² | 355,000 | ||
Number of operating leases | Lease | 5 | ||
Deferred rent liability | $ 3.2 | $ 4.1 | |
Rent expense | $ 4.1 | $ 3.6 | $ 3.3 |
Minimum [Member] | |||
Other Commitments [Line Items] | |||
Lease expiration date | 2,018 | ||
Maximum [Member] | |||
Other Commitments [Line Items] | |||
Lease expiration date | 2,024 |
Commitments and Contingencies58
Commitments and Contingencies - Schedule of Noncancelable Obligations (Detail) $ in Thousands | Dec. 31, 2015USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2016, Leases | $ 6,126 |
2017, Leases | 6,991 |
2018, Leases | 4,701 |
2019, Leases | 2,495 |
2020, Leases | 2,570 |
Thereafter, Leases | 9,564 |
Total, Leases | 32,447 |
2016, Other Agreements | 63,626 |
2017, Other Agreements | 17,779 |
2018, Other Agreements | 17,232 |
2019, Other Agreements | 16,704 |
2020, Other Agreements | 15,621 |
Thereafter, Other Agreements | 22,345 |
Total, Other Agreements | $ 153,307 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2015 | |
Equity [Abstract] | ||
Issuance of common stock, shares | 13,463,415 | |
Common stock, issue price | $ 41 | |
Net proceeds from issuance of common stock | $ 526,600 | $ 526,618 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Common Stock Reserved for Future Issuance (Detail) shares in Thousands | Dec. 31, 2015shares |
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | |
Stock options and RSUs outstanding | 12,405 |
Shares available for future grant under the 2007 Equity Incentive Plan | 2,905 |
Employee stock purchase plan shares available for future issuance | 964 |
Total common stock reserved for future issuance | 16,274 |
Share-Based Compensation - 2007
Share-Based Compensation - 2007 Equity Incentive Plan - Additional Information (Detail) - 2007 Equity Incentive Plan [Member] - shares | 1 Months Ended | 12 Months Ended |
May. 31, 2014 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Common stock reserved for issuance | 21,000,000 | |
Additional shares reserved for issuance by plan amendment | 4,500,000 | |
Maximum options or stock awards granted per awardee per calendar year | 1,000,000 | |
Minimum percentage of exercise price stock at grant date fair market value | 100.00% | |
Maximum term from date of grant, years | 10 years | |
Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period of stock awards, years | 1 year | |
Option Plan [Member] | Voting Power Concentration Greater 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 | 110.00% | |
Maximum term from date of grant, years | 5 years | |
Option Plan [Member] | Employee and Initial Director [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Initial vesting period, percentage | 25.00% | |
Initial vesting period, years | 1 year | |
Subsequent vesting period, years | 36 months | |
Option Plan [Member] | Director [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period of stock awards, years | 1 year | |
Restricted Stock Units (RSUs) [Member] | Employee [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
One year anniversary vesting period, percentage | 100.00% | |
Vesting period of stock awards, years | 3 years | |
Restricted Stock Units (RSUs) [Member] | Director [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
One year anniversary vesting period, percentage | 100.00% | |
Vesting period of stock awards, years | 1 year |
Share-Based Compensation - Shar
Share-Based Compensation - Share Based Compensation Cost - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Share based compensation cost | $ 41,836 | $ 40,619 | $ 31,406 |
Share based compensation costs capitalized | $ 1,400 | $ 1,400 | $ 1,200 |
Share-Based Compensation - Sche
Share-Based Compensation - Schedule of Stock Options Valuation Assumptions (Detail) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividends | 0.00% | ||
2007 Equity Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 1.50% | 1.70% | 1.60% |
Expected lives in years | 5 years 6 months | 5 years 6 months | 5 years 7 months 6 days |
Expected dividends | 0.00% | 0.00% | 0.00% |
Expected volatility | 42.00% | 44.00% | 50.00% |
Employee Stock Purchase Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 0.10% | 0.10% | 0.10% |
Expected lives in years | 6 months | 6 months | 6 months |
Expected dividends | 0.00% | 0.00% | 0.00% |
Expected volatility | 42.00% | 41.00% | 35.00% |
Share-Based Compensation - Valu
Share-Based Compensation - Valuation Assumptions - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Percentage of assumed dividend yield | 0.00% |
Share-Based Compensation - Sc65
Share-Based Compensation - Schedule of Stock Option Activity (Detail) - 2007 Equity Incentive Plan [Member] - Option Plan [Member] $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares, Beginning Balance | shares | 10,729,291 |
Shares, Granted | shares | 1,724,205 |
Shares, Exercised | shares | (1,501,733) |
Shares, Forfeited/expired | shares | (379,100) |
Shares, Ending Balance | shares | 10,572,663 |
Shares, Expected to vest | shares | 10,290,947 |
Shares, Options exercisable | shares | 7,379,212 |
Weighted-average exercise price per share, Beginning Balance | $ / shares | $ 22.04 |
Weighted-average exercise price per share, Granted | $ / shares | 39.43 |
Weighted-average exercise price per share, Exercised | $ / shares | 14.95 |
Weighted-average exercise price per share, Forfeited/expired | $ / shares | 38.77 |
Weighted-average exercise price per share, Ending Balance | $ / shares | 25.28 |
Weighted-average exercise price per share, Expected to vest | $ / shares | 24.87 |
Weighted-average exercise price per share, Options exercisable | $ / shares | $ 18.99 |
Weighted-average remaining contractual term (in years), Options outstanding | 6 years 2 months 9 days |
Weighted-average remaining contractual term (in years), Expected to vest | 6 years 1 month 10 days |
Weighted-average remaining contractual term (in years), Options exercisable | 5 years 7 days |
Aggregate intrinsic value, Options outstanding | $ | $ 207,586 |
Aggregate intrinsic value, Expected to vest | $ | 206,290 |
Aggregate intrinsic value, Options exercisable | $ | $ 191,114 |
Share-Based Compensation - Stoc
Share-Based Compensation - Stock Option Activity - Additional Information (Detail) - 2007 Equity Incentive Plan [Member] - Option Plan [Member] - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average grant-date fair values of options granted | $ 15.84 | $ 18.24 | $ 18.88 |
Aggregate intrinsic value of options exercised | $ 36.2 | $ 27.7 | $ 61.3 |
Unrecognized compensation cost related to unvested share-based compensation | $ 27.4 | ||
Unrecognized compensation of weighted-average period, years | 1 year 4 months 28 days |
Share-Based Compensation - Sc67
Share-Based Compensation - Schedule of Non-Vested Restricted Stock Units (Detail) - 2007 Equity Incentive Plan [Member] - Restricted Stock Units (RSUs) [Member] | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Non-vested, Share equivalent, Beginning balance | shares | 1,835,622 |
Share equivalent, Granted | shares | 765,028 |
Share equivalent, Vested | shares | (534,866) |
Share equivalent, Forfeited | shares | (233,080) |
Non-vested, Share equivalent, Ending balance | shares | 1,832,704 |
Non-vested, Weighted-average grant date fair value, Beginning balance | $ / shares | $ 36.50 |
Weighted-average grant date fair value, Granted | $ / shares | 39.17 |
Weighted-average grant date fair value, Vested | $ / shares | 25.93 |
Weighted-average grant date fair value, Forfeited | $ / shares | 37.67 |
Non-vested, Weighted-average grant date fair value, Ending balance | $ / shares | $ 40.55 |
Share-Based Compensation - RSU
Share-Based Compensation - RSU Activity - Additional Information (Detail) - 2007 Equity Incentive Plan [Member] - Restricted Stock Units (RSUs) [Member] $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Value of stock awards vested during the period | $ 22.3 |
Unrecognized compensation cost related to unvested share-based compensation | $ 36.7 |
Unrecognized compensation of weighted-average period, years | 1 year 8 months 9 days |
Share-Based Compensation - Empl
Share-Based Compensation - Employee Stock Purchase Plan - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2015shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Common stock available for issuance in Employee Stock Purchase Plan | 964,000 |
Employee Stock Purchase Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Discounted stock purchase price, percent of market value | 85.00% |
Share-Based Compensation - Sc70
Share-Based Compensation - Schedule of Activity under Stock Purchase Plan (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average purchase price per share | $ 26.44 | $ 33.02 | $ 23.24 |
Employee Stock Purchase Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares Purchased | 201,103 | 149,576 | 196,446 |
Employee Benefit Plan - Additio
Employee Benefit Plan - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Contribution Pension and Other Postretirement Plans Disclosure [Abstract] | |||
Maximum limit on pretax deferral contribution by eligible employees | 75.00% | ||
Company's matching contribution vests, period | 4 years | ||
Total contribution made by employer under matching program | $ 2.6 | $ 2.2 | $ 1.9 |
Quarterly Financial Data - Sche
Quarterly Financial Data - Schedule of Quarterly Financial Data (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Quarterly Financial Data [Abstract] | |||||||||||
Total revenues | $ 93,477 | $ 84,072 | $ 77,096 | $ 82,157 | $ 74,326 | $ 75,853 | $ 68,308 | $ 68,271 | $ 336,802 | $ 286,758 | $ 269,264 |
Net loss | $ (24,856) | $ (26,438) | $ (47,502) | $ (21,690) | $ (26,684) | $ (15,566) | $ (17,590) | $ (16,301) | $ (120,486) | $ (76,141) | $ (62,520) |
Net loss per share-basic and diluted | $ (0.18) | $ (0.21) | $ (0.38) | $ (0.17) | $ (0.22) | $ (0.13) | $ (0.14) | $ (0.13) | $ (0.93) | $ (0.62) | $ (0.51) |