Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | Apr. 23, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
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 Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 158,224,428 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Assets | ||
Cash and cash equivalents | $ 186,890 | $ 160,945 |
Short-term investments | 213,026 | 252,226 |
Accounts receivable, net | 118,579 | 84,774 |
Inventories | 71,915 | 59,978 |
Prepaid expenses and other current assets | 44,126 | 19,138 |
Total current assets | 634,536 | 577,061 |
Property and equipment, net | 103,489 | 103,756 |
In-process research and development | 300,000 | 0 |
Goodwill | 251,017 | 0 |
Other non-current assets | 184,585 | 197,132 |
Total assets | 1,473,627 | 877,949 |
Liabilities and Stockholders' Equity | ||
Accounts payable and accrued liabilities | 132,246 | 132,672 |
Current portion of deferred revenue | 35,776 | 34,457 |
Total current liabilities | 168,022 | 167,129 |
Long-term liabilities | ||
Deferred revenue, less current portion | 23,387 | 30,618 |
Deferred rent and other long-term liabilities | 2,881 | 2,633 |
Total long-term liabilities | 26,268 | 33,251 |
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; 158,169 shares issued and outstanding at March 31, 2018 and 144,395 shares issued and outstanding at December 31, 2017 | 158 | 144 |
Additional paid-in capital | 2,493,053 | 1,806,159 |
Accumulated other comprehensive income (loss) | (264) | 63,836 |
Accumulated deficit | (1,213,610) | (1,192,570) |
Total stockholders' equity | 1,279,337 | 677,569 |
Total liabilities and stockholders' equity | $ 1,473,627 | $ 877,949 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2018 | Dec. 31, 2017 |
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 | 158,169,000 | 144,395,000 |
Common stock, shares outstanding | 158,169,000 | 144,395,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Revenues | ||
Net product sales | $ 95,357 | $ 70,321 |
Collaboration and license agreement revenues | 29,559 | 21,830 |
Royalty revenues | 15,674 | 16,980 |
Total revenues | 140,590 | 109,131 |
Costs and expenses | ||
Cost of sales | 10,358 | 7,481 |
Cost of royalty revenues | 5,377 | 4,380 |
Research and development | 152,502 | 118,184 |
Selling, general and administrative | 66,182 | 38,404 |
Total costs and expenses | 234,419 | 168,449 |
Loss from operations | (93,829) | (59,318) |
Investment and other loss, net | (17,886) | (672) |
Net loss | $ (111,715) | $ (59,990) |
Net loss per share-basic and diluted | $ (0.73) | $ (0.42) |
Shares used in computation of per share amounts-basic and diluted | 152,049 | 142,458 |
Comprehensive income (loss): | ||
Net loss | $ (111,715) | $ (59,990) |
Other comprehensive income (loss): | ||
Foreign currency translation loss | (8) | (2) |
Unrealized gain on securities available for sale, net of tax | 27 | 3,982 |
Total other comprehensive income | 19 | 3,980 |
Comprehensive loss | $ (111,696) | $ (56,010) |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Operating activities | ||
Net loss | $ (111,715) | $ (59,990) |
Adjustments to reconcile net loss to net cash used by operating activities | ||
Share-based compensation | 16,838 | 14,465 |
Depreciation and amortization | 7,010 | 4,784 |
Amortization of premiums, accretion of discounts and loss on investments | (146) | 1,836 |
Deferred rent and other long-term liabilities | 248 | (114) |
Unrealized losses on equity securities | 18,825 | 0 |
Changes in operating assets and liabilities | ||
Accounts receivable, net | (17,531) | (11,759) |
Inventories | (11,937) | 7,401 |
Prepaid expenses and other assets | (11,529) | 445 |
Accounts payable and accrued liabilities | (28,877) | (18,544) |
Deferred revenue | (8,350) | (2,068) |
Net cash used by operating activities | (147,164) | (63,544) |
Investing activities | ||
Purchases of securities | (62,628) | (208,370) |
Proceeds from maturities of securities | 120,022 | 182,700 |
Proceeds from sales of securities | 48,469 | 60,056 |
Purchases of property and equipment | (4,673) | (14,583) |
Acquisition of Cascadian Therapeutics, Inc., net of cash acquired | (598,151) | 0 |
Net cash provided (used) by investing activities | (496,961) | 19,803 |
Financing activities | ||
Net proceeds from issuance of common stock | 658,165 | 0 |
Proceeds from exercise of stock options and employee stock purchase plan | 11,905 | 10,835 |
Net cash provided by financing activities | 670,070 | 10,835 |
Net increase (decrease) in cash and cash equivalents | 25,945 | (32,906) |
Cash and cash equivalents at beginning of period | 160,945 | 108,673 |
Cash and cash equivalents at end of period | $ 186,890 | $ 75,767 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 1. Summary of significant accounting policies Basis of presentation The accompanying unaudited condensed consolidated financial statements reflect the accounts of Seattle Genetics, Inc. and its wholly-owned subsidiaries (collectively “Seattle Genetics” or the “Company”). All intercompany transactions and balances have been eliminated. The Company acquired Cascadian Therapeutics, Inc., or Cascadian, in March 2018, as further described in Note 8. 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 U.S.; however, the Company also has subsidiaries in Australia, Canada, Ireland, Luxembourg, Switzerland, and the United Kingdom. The condensed consolidated balance sheet data as of December 31, 2017 were derived from audited financial statements not included in this quarterly report on Form 10-Q. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission, or SEC, and generally accepted accounting principles in the United States of America, or GAAP, for unaudited condensed consolidated financial information. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. The accompanying unaudited condensed consolidated financial statements reflect all adjustments consisting of normal recurring adjustments which, in the opinion of management, are necessary for a fair statement of the Company’s financial position and results of its operations, as of and for the periods presented. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017, as filed with the SEC. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Actual results could differ from those estimates. The results of the Company’s operations for the three month period ended March 31, 2018 are not necessarily indicative of the results to be expected for the full year or any other interim period. Non-cash investing activities The Company had $2.3 million and $1.0 million of accrued capital expenditures as of March 31, 2018 and December 31, 2017, respectively. Accrued capital expenditures have been treated as a non-cash investing activity and, accordingly, have not been included in the statement of cash flows until such amounts have been paid in cash. Investments The Company adopted Accounting Standards Update entitled “ASU 2016-01, Financial Instruments: Overall” on January 1, 2018, which addressed certain aspects of recognition, measurement, presentation and disclosure of financial instruments, including that changes in the fair value of equity securities be recorded in income or loss rather than accumulated other comprehensive income or loss in stockholders’ equity. The Company used the modified retrospective method and recognized a $64.1 million cumulative effect of initially applying this ASU as an adjustment to the opening accumulated deficit at January 1, 2018. Accordingly, comparative information has not been adjusted and continues to be reported under previous accounting standards. The implementation of this standard increases the volatility of net income or loss to the extent that the Company continues to hold equity securities. The Company invests primarily in debt securities. These debt securities are classified as available-for-sale, which are reported at estimated fair value with unrealized gains and losses included in accumulated other comprehensive income and loss in stockholders’ equity. Realized gains, realized losses and declines in the value of investments judged to be other-than-temporary are included in investment and other loss, net. The cost of investments for purposes of computing realized and unrealized gains and losses is based on the specific identification method. Amortization of premiums and accretion of discounts on debt securities are included in investment and other loss, net. Interest and dividends earned on all securities are included in investment and other loss, net. The Company classifies investments in debt securities maturing within one year of the reporting date, or where management’s intent is to use the investments to fund current operations or to make them available for current operations, as short-term investments. The Company also holds certain equity securities, which are reported at estimated fair value. 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 loss, net. Business combinations, including acquired in-process research and development and goodwill The Company accounts for business combinations using the acquisition method, recording the acquisition-date fair value of total consideration over the acquisition-date fair value of net assets acquired as goodwill. Fair value is typically estimated using the present value of future discounted cash flows, an income approach. The significant estimates in the discounted cash flow model primarily include the discount rate, rates of future revenue growth and/or profitability of the acquired business, and working capital effects. The discount rate considers the relevant risk associated with business-specific characteristics and the uncertainty related to the ability to achieve the projected cash flows. In-process research and development assets are accounted for as indefinite-lived intangible assets and maintained on the balance sheet until either the underlying project is completed or the asset becomes impaired. If the project is completed, the carrying value of the related intangible asset is amortized to cost of sales over the remaining estimated life of the asset beginning in the period in which the project is completed. If the asset becomes impaired or is abandoned, the carrying value of the related intangible asset is written down to its fair value and an impairment charge is recorded in the period in which the impairment occurs. The Company evaluates indefinite-lived intangible assets and goodwill for impairment annually, or more frequently when events or circumstances indicate that impairment may have occurred. As part of the impairment evaluation, the Company may elect to perform an assessment of qualitative factors. If this qualitative assessment indicates that it is more likely than not that the fair value of the indefinite-lived intangible asset or the reporting unit (for goodwill) is less than its carrying value, the Company then would proceed with the quantitative impairment test to compare the fair value to the carrying value and recognize an impairment if the carrying value exceeds the fair value. Acquisition-related costs, including banking, legal, accounting, valuation, and other similar costs, are expensed in the periods in which the costs are incurred. The results of operations of the acquired business are included in the consolidated financial statements from the acquisition date. Long-term incentive plans The Company has established Long-Term Incentive Plans, or LTIPs. The LTIPs provide eligible employees with the opportunity to receive performance-based incentive compensation, which may be comprised of cash, stock options, and/or restricted stock units. The payment of cash and the grant or vesting of equity are contingent upon the achievement of pre-determined regulatory milestones. The Company records compensation expense over the estimated service period for each milestone subject to the achievement of the milestone being considered probable in accordance with the provisions of ASC 450, Contingencies. At each reporting date, the Company assesses whether achievement of a milestone is considered probable and, if so, records compensation expense based on the portion of the service period elapsed to date with respect to that milestone, with a cumulative catch-up, net of estimated forfeitures. During the three months ended March 31, 2018, an LTIP milestone was achieved related to the U.S. Food and Drug Administration, or FDA, approval of a label expansion in the U.S. for ADCETRIS, based on clinical trial data from the ECHELON-1 study. As of March 31, 2018, the estimated unrecognized compensation expense related to all LTIPs was $34.8 million. The total estimate of unrecognized compensation expense is expected to change in the future for several reasons, including the addition of more eligible employees or the addition, termination, or modification of an LTIP. Revenue recognition The Company adopted Accounting Standards Codification Topic 606—Revenue from Contracts with Customers, or Topic 606, on January 1, 2018, resulting in a change to its accounting policy for revenue recognition. The Company used the modified retrospective method and recognized the cumulative effect of initially applying Topic 606 as an adjustment to the opening accumulated deficit at January 1, 2018. Accordingly, comparative information has not been adjusted and continues to be reported under previous accounting standards. Refer to Note 2 for additional information. The Company’s revenues are comprised of ADCETRIS net product sales, amounts earned under its collaboration and licensing agreements and royalties. Revenue recognition occurs when a customer obtains control of promised goods or services in an amount that reflects the consideration the Company expects to receive in exchange for those goods or services based on a short-term credit arrangement. 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 delivery of ADCETRIS to the end-user site represents a single performance obligation for these transactions. The Company records product sales at the point in time when title and risk of loss pass, which generally occurs upon delivery of the product to the customer. The transaction price for product sales represents the amount the Company expects to receive, which is 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 payor mix in target markets and experience to date. These estimates involve a substantial degree of judgment. The Company has applied a portfolio approach as a practical expedient for estimating net product sales from ADCETRIS. Government-mandated rebates and chargebacks The Company has also completed a Federal Supply Schedule, or FSS, agreement under which certain U.S. government purchasers receive a discount on eligible purchases of ADCETRIS. In addition, the Company has entered into a Pharmaceutical Pricing Agreement with the Secretary of Health and Human Services, which enables certain entities that qualify for government pricing under the Public Health Services Act, or PHS, to receive discounts on their qualified purchases of ADCETRIS. Under these agreements, distributors process a chargeback to the Company for the difference between wholesale acquisition cost and the applicable discounted price. As a result of the Company’s direct-ship distribution model, it can identify the entities purchasing ADCETRIS and this information enables the Company to estimate expected chargebacks for FSS and PHS purchases based on each entity’s eligibility for the FSS and PHS programs. The Company also reviews historical rebate and chargeback information to further refine these estimates. Distribution fees, product returns and other deductions Collaboration and license agreement revenues The Company has collaboration and license agreements with a number of biotechnology and pharmaceutical companies. The Company’s proprietary technology for linking cytotoxic agents to monoclonal antibodies called antibody-drug conjugates, or ADCs, is the basis for many of these collaboration and license agreements, including the ADC collaborations that the Company has entered into in the ordinary course of business, under which the Company grants its collaborators research and commercial licenses to the Company’s technology and typically provides technology transfer services, technical advice, supplies and services for a period of time. The Company’s collaboration and license agreements include contractual milestones. Generally, the milestone events coincide with the progression of the collaborators’ product candidates. These consist of development milestones (such as designation of a product candidate or initiation of preclinical studies and the initiation of phase 1, phase 2, or phase 3 clinical trials), regulatory milestones (such as the filing of regulatory applications for marketing approval), and commercialization milestones (such as first commercial sale in a particular market and product sales in excess of a pre-specified threshold). 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. 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. 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. ADC collaborations are initially evaluated as to whether the intellectual property licenses granted by the Company represent distinct performance obligations. If they are determined to be distinct, the value of the intellectual property licenses would be recognized up-front while the research and development service fees would be recognized as the performance obligations are satisfied. Variable consideration is assessed at each reporting period as to whether it is not subject to significant future reversal and, therefore, should be included in the transaction price at the inception of the contract. If a contract includes a fixed or minimum amount of research and development support, this also would be included in the transaction price. Changes to ADC collaborations, such as the extensions of the research term or increasing the number of targets or technology covered under an existing agreement, are assessed for whether they represent a modification or should be accounted for as a new contract. The Company has concluded that the license of intellectual property in its current ADC collaborations is not distinct from the perspective of its customers at the time of initial transfer, since the Company does not license intellectual property without related technology transfer and research and development support services. The Company’s performance obligations under its collaborations include such things as providing intellectual property licenses, performing technology transfer, performing research and development consulting services, providing reagents, ADCs, and other materials, and notifying the customer of any enhancements to licensed technology or new technology that the Company discovers, among others. The Company determined its performance obligations under its current ADC collaborations as evaluated at contract inception were not distinct and represented a single performance obligation. Revenue is recognized using a proportional performance model, representing the transfer of goods or services as activities are performed over the term of the agreement. Upfront payments are also amortized to revenue over the performance period. Upfront payment contract liabilities resulting from the Company’s collaborations do not represent a financing component as the payment is not financing the transfer of goods or services, and the technology underlying the licenses granted reflects research and development expenses already incurred by the Company. When no performance obligations are required of the Company, or following the completion of the performance obligation period, such amounts are recognized as revenue upon transfer of control of the goods or services to the customer. Generally, all amounts received or due other than sales-based milestones and royalties are classified as collaboration and license agreement revenues. Sales-based milestones and royalties are recognized as royalty revenue in the period the related sale occurred. 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 as performance obligations are satisfied. 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 commercial sales-based milestones and sales royalties. Sales royalties are based on a percentage of Takeda’s net sales of ADCETRIS, with rates that range from the mid-teens to the mid-twenties based on sales volume. Takeda bears a portion of third-party royalty costs owed on its sales of ADCETRIS. This amount is included in royalty revenues. 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 period in which the related sales by Takeda occur. Recent accounting pronouncements not yet adopted In February 2016, FASB issued an Accounting Standards Update entitled “ASU 2016-02, Leases.” The standard requires entities to recognize in the consolidated balance sheet a liability to make lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term. The standard will become effective for the Company beginning January 1, 2019, with early adoption permitted. 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, and expects that the adoption of the standard will increase assets and liabilities related to the Company’s operating leases in the consolidated balance sheets. In June 2016, FASB issued an Accounting Standards Update entitled “ASU 2016-13, Financial Instruments: Credit Losses.” The objective of the standard is to provide information about expected credit losses on financial instruments at each reporting date and to change how other-than-temporary impairments on investments securities are recorded. The standard will become effective for the Company beginning on January 1, 2020, with early adoption permitted. 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. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 3 Months Ended |
Mar. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | 2. Revenue from contracts with customers On January 1, 2018, the Company adopted Topic 606 applying the modified retrospective method to all contracts that were not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 were presented under Topic 606, while prior period amounts were not adjusted and reported under the accounting standards in effect for the prior periods. The Company recorded the following cumulative effect as of January 1, 2018, itemized here (in thousands) and further described below: Collaboration and license agreement revenues $ 10,282 Royalty revenues 22,230 Cost of royalty revenues (5,955 ) Accumulated deficit – (debit) credit $ 26,557 Impact to net product sales Topic 606 does not generally change the practice under which the Company recognizes product revenue from sales of ADCETRIS. Impact to collaboration and license agreement revenues The achievement of development milestones under the Company’s collaborations will be recorded during the period their achievement becomes probable, which may result in earlier recognition as compared to previous accounting principles. Each of the Company’s current ADC collaborations contain a single performance obligation under Topic 606. The Takeda ADCETRIS collaboration is the only ongoing ADC collaboration that was significantly impacted by the adoption of Topic 606. The Takeda 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 U.S. and its territories and in Canada, and Takeda has commercial rights in the rest of the world and pays the Company a royalty. The Company’s performance obligations under the collaboration include providing intellectual property licenses, performing technology transfer, providing research and development services for co-funded activities, allowing access to data, submitting regulatory filings and other information for co-funded activities, and providing manufacturing support including supply of ADCETRIS drug components, finished ADCETRIS product, and know-how. The Company determined that its performance obligations under the collaboration as evaluated at contract inception were not distinct and represented a single performance obligation, and that the obligations for goods and services provided would be completed over the performance period of the agreement. Any payments received by the Company from Takeda, including the upfront payment, progress-dependent development and regulatory milestone payments, reimbursement for drug product supplied, and net development cost reimbursement payments, are recognized as revenue using a time-based proportional performance model over the ten-year development period (December 2009 through November 2019) of the collaboration, within collaboration and license agreement revenues. Updates to the Takeda ADCETRIS collaboration transaction price for variable consideration, such as approval of the co-development annual budget and binding production forecast, are considered at each reporting period as to whether they are not subject to significant future reversal. Shipments of drug supply that occur after the expiration of the drug supply agreement in September 2018 will be recorded as a separate performance obligation. Impact to royalty revenues Commercial sales-based milestones and sales royalties, primarily earned under the Takeda ADCETRIS collaboration, are recorded in the period of the related sales by Takeda, based on estimates if actual information is not yet available, rather than recording them as reported by the customer one quarter in arrears under previous accounting guidance. Takeda also bears a portion of third-party royalty costs owed on its sales of ADCETRIS which is included in royalty revenues. Disaggregation of total revenues The Company has one marketed product, ADCETRIS. Substantially all of the Company’s product revenues are recorded in the U.S. Substantially all of the Company’s royalty revenues are from its collaboration with Takeda. Collaboration and license agreement revenues by collaborator are summarized as follows (in thousands): Three months ended March 31, 2018 Takeda $ 13,572 AbbVie 8,000 Other 7,987 Collaboration and license agreement revenues $ 29,559 Contract balances and performance obligations Under Topic 606, the Company recorded contract assets of $12.7 million and $15.8 million as of January 1, 2018 and March 31, 2018, respectively, related to the Takeda ADCETRIS collaboration. These were recorded in prepaid expenses and other current assets on the consolidated balance sheet. The increase from January 1 to March 31 was primarily due to updates to the Takeda ADCETRIS collaboration transaction price upon approval of the co-development annual budget and binding production forecast. Contract liabilities consisted of deferred revenue, as presented on the consolidated balance sheet, as of March 31, 2018. Deferred revenue related to the Company’s collaboration with Takeda was $58.3 million as of March 31, 2018 and will be recognized along with the remaining performance obligations over the remainder of the ten-year performance period ending November 2019. The Company recognized collaboration and license agreement revenues of $9.0 million during the three months ended March 31, 2018 that were included in the deferred revenue balance as of January 1, 2018. Impacts to condensed consolidated financial statements as of and for the three months ended March 31, 2018 (in thousands) As reported Adjustments Balances Condensed Consolidated Balance Sheet data Assets Accounts receivable, net $ 118,579 $ (9,535 ) $ 109,044 Prepaid expenses and other current assets 44,126 (15,775 ) 28,351 Liabilities Current portion of deferred revenue 35,776 (1,578 ) 34,198 Deferred revenue, less current portion 23,387 (1,051 ) 22,336 Stockholders’ equity Accumulated deficit (1,213,610 ) (22,681 ) (1,236,291 ) Condensed Consolidated Statements of Comprehensive Loss data Collaboration and license agreement revenues $ 29,559 $ (2,864 ) $ 26,695 Royalty revenues 15,674 7,318 22,992 Total revenues 140,590 4,454 145,044 Cost of royalty revenues 5,377 578 5,955 Net loss (111,715 ) 3,876 (107,839 ) |
Net Loss Per Share
Net Loss Per Share | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | 3. Net loss per share Basic and diluted net loss per share are computed by dividing net loss by the weighted average number of common shares outstanding during the period. The Company excluded all restricted stock units and options to purchase common stock from the calculation of basic and diluted net loss per share as such securities were anti-dilutive for all periods presented. The weighted-average number of restricted stock units and options to purchase common stock that have been excluded from the number of shares used to calculate basic and diluted net loss per share totaled 13,506,000 and 13,321,000 for the three months ended March 31, 2018 and 2017, respectively. |
Common Stock
Common Stock | 3 Months Ended |
Mar. 31, 2018 | |
Text Block [Abstract] | |
Common Stock | 4. Common stock In February 2018, the Company completed an underwritten public offering of 13,269,230 shares of its common stock at a public offering price of $52.00 per share. The offering resulted in net proceeds to the Company of $658.2 million, after deducting underwriting discounts, commissions, and other offering expenses. The Company used a majority of the proceeds to fund the acquisition of Cascadian. |
Investments
Investments | 3 Months Ended |
Mar. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | 5. Investments As of December 31, 2017 and March 31, 2018, the Company held common stock of Immunomedics and Unum Therapeutics, Inc., or Unum, each holding purchased in connection with strategic collaborations with the respective company. The collaboration agreement with Immunomedics was subsequently terminated. The collaboration agreement with Unum provided that the Company purchase shares in a private placement concurrent with Unum’s initial public offering. Unum’s initial public offering was priced in March 2018 and closed in April 2018. As such, the Company reflected the shares on its consolidated balance sheet as of March 31, 2018. Prior to Unum’s initial public offering, the Company accounted for its investment in Unum under the cost method of accounting. During the three months ended March 31, 2018, the Company recognized net losses from changes in the fair values of these equity securities of $18.8 million. The Company’s debt and equity securities consisted of the following (in thousands): Amortized Gross Gross Fair March 31, 2018 U.S. Treasury securities (debt securities) $ 213,285 $ 1 $ (260 ) $ 213,026 Equity securities 100,882 79,409 (758 ) 179,533 Total $ 314,167 $ 79,410 $ (1,018 ) $ 392,559 Contractual maturities of debt securities (at date of purchase) Due in one year or less $ 132,644 $ 132,587 Due in one to two years 80,641 80,439 Total $ 213,285 $ 213,026 December 31, 2017 U.S. Treasury securities (debt securities) $ 252,511 $ 0 $ (285 ) $ 252,226 Equity securities 90,882 97,476 0 188,358 Total $ 343,393 $ 97,476 $ (285 ) $ 440,584 Contractual maturities of debt securities (at date of purchase) Due in one year or less $ 151,903 $ 151,842 Due in one to two years 100,608 100,384 Total $ 252,511 $ 252,226 |
Fair Value
Fair Value | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value | 6. Fair value The Company has certain assets that are measured at fair value on a recurring basis according to a fair value hierarchy that prioritizes the inputs, assumptions and valuation techniques used to measure fair value. The three levels of the fair value hierarchy are: 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. The fair value hierarchy of the Company’s assets carried at fair value and measured on a recurring basis was as follows (in thousands): Fair value measurement using: Quoted prices Other Significant Total March 31, 2018 Short-term investments—U.S. Treasury securities $ 213,026 $ 0 $ 0 $ 213,026 Other non-current assets—equity securities 179,533 0 0 179,533 Total $ 392,559 $ 0 $ 0 $ 392,559 December 31, 2017 Short-term investments—U.S. Treasury securities $ 252,226 $ 0 $ 0 $ 252,226 Other non-current assets—equity securities 188,358 0 0 188,358 Total $ 440,584 $ 0 $ 0 $ 440,584 |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | 7. Inventories The following table presents the Company’s inventories of ADCETRIS (in thousands): March 31, December 31, Raw materials $ 67,278 $ 52,398 Work in process 0 0 Finished goods 4,637 7,580 Total $ 71,915 $ 59,978 The Company capitalizes ADCETRIS inventory costs. ADCETRIS inventory that is deployed into clinical, research or development use is charged to research and development expense when it is no longer available for use in commercial sales. The Company does not capitalize manufacturing costs for any of its product candidates. |
Acquisition of Cascadian
Acquisition of Cascadian | 3 Months Ended |
Mar. 31, 2018 | |
Business Combinations [Abstract] | |
Acquisition of Cascadian | 8. Acquisition of Cascadian In March 2018, the Company acquired all issued and outstanding shares of Cascadian, a clinical-stage biopharmaceutical company based in Seattle, Washington, for $10.00 per share in cash, or approximately $614.1 million (referred to as the Cascadian Acquisition), which was funded by an underwritten public offering as further described in Note 4. The Cascadian Acquisition expanded the Company’s late-stage pipeline, providing global rights to tucatinib, an investigational oral tyrosine kinase inhibitor, or TKI, that is currently being evaluated in a phase 2 trial called HER2CLIMB for patients with HER2-positive (HER2+) metastatic breast cancer, including patients with or without brain metastases. The Cascadian Acquisition was accounted for as a business combination. During the three months ended March 31, 2018, the Company incurred $8.5 million in acquisition-related costs, which were recorded in selling, general and administrative expenses. The preliminary purchase price allocation of the assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date was as follows (in thousands): Cash and cash equivalents $ 15,919 Short-term and long-term investments 66,491 Prepaid expenses and other assets 2,215 Property and equipment 566 In-process research and development 300,000 Goodwill 251,017 Accounts payable and accrued liabilities (22,138 ) Total purchase price $ 614,070 The amount allocated to in-process research and development was based on the present value of future discounted cash flows, which was based on significant estimates. These estimates included the number of potential patients and market price of a future tucatinib-based regimen, costs required to conduct clinical trials and potentially commercialize tucatinib, as well as estimates for probability of success and the discount rate. Goodwill primarily was attributed to tucatinib’s potential application in other treatment settings, intangible assets that do not qualify for separate recognition, and synergies with the Company’s existing pipeline and capabilities. Goodwill is not expected to be deductible for tax purposes. The amount allocated to goodwill is preliminary, since the acquisition accounting is not yet finalized as it relates to income taxes. The financial information in the table below summarizes the combined results of operations of Seattle Genetics and Cascadian on a pro forma basis, for the period in which the acquisition occurred and the comparative period as though the companies had been combined as of January 1, 2017. Pro forma adjustments have been made primarily related to acquisition-related transaction costs and employee costs. The following unaudited pro forma financial information is presented for informational purposes only and is not necessarily indicative of the results of operations that would have been achieved had the acquisition occurred as of January 1, 2017 or indicative of future results (in thousands): Three months ended March 31, 2018 2017 Revenues $ 140,590 $ 109,131 Net loss (140,649 ) (101,292 ) Basic and diluted net loss per share (0.89 ) (0.66 ) |
Legal Matters
Legal Matters | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Matters | 9. Legal matters On January 10, 2017, a purported securities class action lawsuit was commenced in the United States District Court for the Western District of Washington, naming as defendants the Company and certain of its officers, or the CD33A Class Action. A consolidated amended complaint was filed on June 6, 2017, following the court’s appointment of a lead plaintiff and its approval of lead plaintiff’s counsel. The lawsuit alleges material misrepresentations and omissions in public statements regarding the Company’s business, operational and compliance policies, violations by all named defendants of Section 10(b) of the Exchange Act, and Rule 10b-5 thereunder, as well as violations of Section 20(a) of the Exchange Act. The complaint seeks compensatory damages of an undisclosed amount. The plaintiff alleges, among other things, that the Company made false and/or misleading statements and/or failed to disclose that SGN-CD33A presents a significant risk of fatal hepatotoxicity and that the Company had therefore overstated the viability of SGN-CD33A as a treatment for acute myeloid leukemia, AML. It is possible that additional suits will be filed, or allegations received from stockholders, with respect to these same matters and also naming the Company and/or its officers and directors as defendants. The Company filed a motion to dismiss this complaint on July 28, 2017. On October 18, 2017, the Court granted the Company’s motion to dismiss with leave for plaintiff to file a second consolidated amended complaint. The plaintiff filed a second consolidated amended complaint on November 17, 2017, and the Company filed a motion to dismiss this new complaint on January 5, 2018. The plaintiff filed an opposition to the Company’s motion to dismiss on February 16, 2018, and the Company replied to this opposition on March 9, 2018. It is possible that additional suits will be filed, or allegations received from stockholders, with respect to these same matters and also naming the Company and/or its officers and directors as defendants. The Company does not believe it is feasible to predict or determine the ultimate outcome or resolution of this litigation, or to estimate the amount of, or potential range of, loss with respect to this proceeding. In addition, the timing of the final resolution of this proceeding is uncertain. As a result of the lawsuit, the Company will incur litigation expenses and may incur indemnification expenses, and potential resolutions of the lawsuit could include a settlement requiring payments. Those expenses could have a material impact on the Company’s financial position, results of operations, and cash flows. On March 29, 2017, a stockholder derivative lawsuit, or the Stockholder Derivative Action, was filed in Washington Superior Court for the County of Snohomish, or the Snohomish County Superior Court. The complaint names as defendants certain of the Company’s current and former executives and members of its board of directors. The Company is named as a nominal defendant. The complaint generally makes the same allegations as the CD33A Class Action, claiming that the individual defendants breached their duties to the Company. The complaint seeks unspecified damages, disgorgement of compensation, corporate governance changes, and attorneys’ fees and costs. Because the complaint is derivative in nature, it does not seek monetary damages from the Company. On June 8, 2017, the Snohomish County Superior Court entered an order staying the Stockholder Derivative Action until resolution of the motion to dismiss the CD33A Class Action. On October 18, 2017, in light of the granting of the Company’s motion to dismiss in the CD33A Class Action, the parties in the Stockholder Derivative Action filed a joint status report with the Snohomish County Superior Court stipulating to continue to stay the Stockholder Derivative Action pending a ruling on a motion to dismiss the second consolidated amended complaint in the CD33A Class Action. A similar joint status report was filed with the Snohomish County Superior Court on February 16, 2018 in order to further extend the Snohomish County Superior Court’s stay. As a result of the lawsuit, the Company may incur litigation and indemnification expenses. Between February 13, 2018 and February 16, 2018, four purported stockholders of Cascadian filed separate putative class action lawsuits and an individual complaint in the United States District Court for the District of Delaware and the United States District Court for the Western District of Washington against Cascadian and former members of its then-separate board of directors and the Company. The cases filed in Delaware are Kim v. Cascadian Therapeutics, Inc., et al. Palazzo v. Cascadian Therapeutics, Inc., et al. Jaso v. Cascadian Therapeutics, Inc., et al. Bensimon v. Cascadian Therapeutics, Inc., et al. Bensimon Kim Palazzo Bensimon Palazzo Kim On March 8, 2018, three purported stockholders of Cascadian filed a Verified Complaint to Compel Inspection of Books and Records under 8 Del. C. §220 in the Delaware Court of Chancery against Cascadian, seeking to inspect books and records in order to determine whether wrongdoing or mismanagement has taken place such that it would be appropriate to file claims for breach of fiduciary duty, and to investigate the independence and disinterestedness of the former Cascadian directors with respect to the Cascadian Acquisition. The Company filed its answer to this complaint on March 28, 2018. The Company does not believe it is feasible to predict or determine the ultimate outcome or resolution of these litigations, or to estimate the amount of, or potential range of, loss with respect to these litigations. In addition, the timing of the final resolution of these litigations is uncertain. As a result of these litigations, the Company will incur litigation expenses and may incur indemnification expenses, and potential resolutions of the lawsuit could include a settlement requiring payments. Those expenses could have a material impact on the Company’s financial position, results of operations, and cash flows. In addition, from time to time in the ordinary course of business the Company becomes involved in various lawsuits, claims and proceedings relating to the conduct of its business, including those pertaining to the defense and enforcement of its patent or other intellectual property rights. These proceedings are costly and time consuming. Successful challenges to the Company’s patent or other intellectual property rights through these proceedings could result in a loss of rights in the relevant jurisdiction and may allow third parties to use the Company’s proprietary technologies without a license from the Company or its collaborators. |
Summary of Significant Accoun15
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation The accompanying unaudited condensed consolidated financial statements reflect the accounts of Seattle Genetics, Inc. and its wholly-owned subsidiaries (collectively “Seattle Genetics” or the “Company”). All intercompany transactions and balances have been eliminated. The Company acquired Cascadian Therapeutics, Inc., or Cascadian, in March 2018, as further described in Note 8. 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 U.S.; however, the Company also has subsidiaries in Australia, Canada, Ireland, Luxembourg, Switzerland, and the United Kingdom. The condensed consolidated balance sheet data as of December 31, 2017 were derived from audited financial statements not included in this quarterly report on Form 10-Q. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission, or SEC, and generally accepted accounting principles in the United States of America, or GAAP, for unaudited condensed consolidated financial information. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. The accompanying unaudited condensed consolidated financial statements reflect all adjustments consisting of normal recurring adjustments which, in the opinion of management, are necessary for a fair statement of the Company’s financial position and results of its operations, as of and for the periods presented. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017, as filed with the SEC. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Actual results could differ from those estimates. The results of the Company’s operations for the three month period ended March 31, 2018 are not necessarily indicative of the results to be expected for the full year or any other interim period. |
Non-cash investing activities | Non-cash investing activities The Company had $2.3 million and $1.0 million of accrued capital expenditures as of March 31, 2018 and December 31, 2017, respectively. Accrued capital expenditures have been treated as a non-cash investing activity and, accordingly, have not been included in the statement of cash flows until such amounts have been paid in cash. |
Investments | Investments The Company adopted Accounting Standards Update entitled “ASU 2016-01, Financial Instruments: Overall” on January 1, 2018, which addressed certain aspects of recognition, measurement, presentation and disclosure of financial instruments, including that changes in the fair value of equity securities be recorded in income or loss rather than accumulated other comprehensive income or loss in stockholders’ equity. The Company used the modified retrospective method and recognized a $64.1 million cumulative effect of initially applying this ASU as an adjustment to the opening accumulated deficit at January 1, 2018. Accordingly, comparative information has not been adjusted and continues to be reported under previous accounting standards. The implementation of this standard increases the volatility of net income or loss to the extent that the Company continues to hold equity securities. The Company invests primarily in debt securities. These debt securities are classified as available-for-sale, which are reported at estimated fair value with unrealized gains and losses included in accumulated other comprehensive income and loss in stockholders’ equity. Realized gains, realized losses and declines in the value of investments judged to be other-than-temporary are included in investment and other loss, net. The cost of investments for purposes of computing realized and unrealized gains and losses is based on the specific identification method. Amortization of premiums and accretion of discounts on debt securities are included in investment and other loss, net. Interest and dividends earned on all securities are included in investment and other loss, net. The Company classifies investments in debt securities maturing within one year of the reporting date, or where management’s intent is to use the investments to fund current operations or to make them available for current operations, as short-term investments. The Company also holds certain equity securities, which are reported at estimated fair value. 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 loss, net. |
Business combinations, including acquired in-process research and development and goodwill | Business combinations, including acquired in-process research and development and goodwill The Company accounts for business combinations using the acquisition method, recording the acquisition-date fair value of total consideration over the acquisition-date fair value of net assets acquired as goodwill. Fair value is typically estimated using the present value of future discounted cash flows, an income approach. The significant estimates in the discounted cash flow model primarily include the discount rate, rates of future revenue growth and/or profitability of the acquired business, and working capital effects. The discount rate considers the relevant risk associated with business-specific characteristics and the uncertainty related to the ability to achieve the projected cash flows. In-process research and development assets are accounted for as indefinite-lived intangible assets and maintained on the balance sheet until either the underlying project is completed or the asset becomes impaired. If the project is completed, the carrying value of the related intangible asset is amortized to cost of sales over the remaining estimated life of the asset beginning in the period in which the project is completed. If the asset becomes impaired or is abandoned, the carrying value of the related intangible asset is written down to its fair value and an impairment charge is recorded in the period in which the impairment occurs. The Company evaluates indefinite-lived intangible assets and goodwill for impairment annually, or more frequently when events or circumstances indicate that impairment may have occurred. As part of the impairment evaluation, the Company may elect to perform an assessment of qualitative factors. If this qualitative assessment indicates that it is more likely than not that the fair value of the indefinite-lived intangible asset or the reporting unit (for goodwill) is less than its carrying value, the Company then would proceed with the quantitative impairment test to compare the fair value to the carrying value and recognize an impairment if the carrying value exceeds the fair value. Acquisition-related costs, including banking, legal, accounting, valuation, and other similar costs, are expensed in the periods in which the costs are incurred. The results of operations of the acquired business are included in the consolidated financial statements from the acquisition date. |
Long-term incentive plans | Long-term incentive plans The Company has established Long-Term Incentive Plans, or LTIPs. The LTIPs provide eligible employees with the opportunity to receive performance-based incentive compensation, which may be comprised of cash, stock options, and/or restricted stock units. The payment of cash and the grant or vesting of equity are contingent upon the achievement of pre-determined regulatory milestones. The Company records compensation expense over the estimated service period for each milestone subject to the achievement of the milestone being considered probable in accordance with the provisions of ASC 450, Contingencies. At each reporting date, the Company assesses whether achievement of a milestone is considered probable and, if so, records compensation expense based on the portion of the service period elapsed to date with respect to that milestone, with a cumulative catch-up, net of estimated forfeitures. During the three months ended March 31, 2018, an LTIP milestone was achieved related to the U.S. Food and Drug Administration, or FDA, approval of a label expansion in the U.S. for ADCETRIS, based on clinical trial data from the ECHELON-1 study. As of March 31, 2018, the estimated unrecognized compensation expense related to all LTIPs was $34.8 million. The total estimate of unrecognized compensation expense is expected to change in the future for several reasons, including the addition of more eligible employees or the addition, termination, or modification of an LTIP. |
Revenue recognition | Revenue recognition The Company adopted Accounting Standards Codification Topic 606—Revenue from Contracts with Customers, or Topic 606, on January 1, 2018, resulting in a change to its accounting policy for revenue recognition. The Company used the modified retrospective method and recognized the cumulative effect of initially applying Topic 606 as an adjustment to the opening accumulated deficit at January 1, 2018. Accordingly, comparative information has not been adjusted and continues to be reported under previous accounting standards. Refer to Note 2 for additional information. The Company’s revenues are comprised of ADCETRIS net product sales, amounts earned under its collaboration and licensing agreements and royalties. Revenue recognition occurs when a customer obtains control of promised goods or services in an amount that reflects the consideration the Company expects to receive in exchange for those goods or services based on a short-term credit arrangement. 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 delivery of ADCETRIS to the end-user site represents a single performance obligation for these transactions. The Company records product sales at the point in time when title and risk of loss pass, which generally occurs upon delivery of the product to the customer. The transaction price for product sales represents the amount the Company expects to receive, which is 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 payor mix in target markets and experience to date. These estimates involve a substantial degree of judgment. The Company has applied a portfolio approach as a practical expedient for estimating net product sales from ADCETRIS. Government-mandated rebates and chargebacks The Company has also completed a Federal Supply Schedule, or FSS, agreement under which certain U.S. government purchasers receive a discount on eligible purchases of ADCETRIS. In addition, the Company has entered into a Pharmaceutical Pricing Agreement with the Secretary of Health and Human Services, which enables certain entities that qualify for government pricing under the Public Health Services Act, or PHS, to receive discounts on their qualified purchases of ADCETRIS. Under these agreements, distributors process a chargeback to the Company for the difference between wholesale acquisition cost and the applicable discounted price. As a result of the Company’s direct-ship distribution model, it can identify the entities purchasing ADCETRIS and this information enables the Company to estimate expected chargebacks for FSS and PHS purchases based on each entity’s eligibility for the FSS and PHS programs. The Company also reviews historical rebate and chargeback information to further refine these estimates. Distribution fees, product returns and other deductions Collaboration and license agreement revenues The Company has collaboration and license agreements with a number of biotechnology and pharmaceutical companies. The Company’s proprietary technology for linking cytotoxic agents to monoclonal antibodies called antibody-drug conjugates, or ADCs, is the basis for many of these collaboration and license agreements, including the ADC collaborations that the Company has entered into in the ordinary course of business, under which the Company grants its collaborators research and commercial licenses to the Company’s technology and typically provides technology transfer services, technical advice, supplies and services for a period of time. The Company’s collaboration and license agreements include contractual milestones. Generally, the milestone events coincide with the progression of the collaborators’ product candidates. These consist of development milestones (such as designation of a product candidate or initiation of preclinical studies and the initiation of phase 1, phase 2, or phase 3 clinical trials), regulatory milestones (such as the filing of regulatory applications for marketing approval), and commercialization milestones (such as first commercial sale in a particular market and product sales in excess of a pre-specified threshold). 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. 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. 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. ADC collaborations are initially evaluated as to whether the intellectual property licenses granted by the Company represent distinct performance obligations. If they are determined to be distinct, the value of the intellectual property licenses would be recognized up-front while the research and development service fees would be recognized as the performance obligations are satisfied. Variable consideration is assessed at each reporting period as to whether it is not subject to significant future reversal and, therefore, should be included in the transaction price at the inception of the contract. If a contract includes a fixed or minimum amount of research and development support, this also would be included in the transaction price. Changes to ADC collaborations, such as the extensions of the research term or increasing the number of targets or technology covered under an existing agreement, are assessed for whether they represent a modification or should be accounted for as a new contract. The Company has concluded that the license of intellectual property in its current ADC collaborations is not distinct from the perspective of its customers at the time of initial transfer, since the Company does not license intellectual property without related technology transfer and research and development support services. The Company’s performance obligations under its collaborations include such things as providing intellectual property licenses, performing technology transfer, performing research and development consulting services, providing reagents, ADCs, and other materials, and notifying the customer of any enhancements to licensed technology or new technology that the Company discovers, among others. The Company determined its performance obligations under its current ADC collaborations as evaluated at contract inception were not distinct and represented a single performance obligation. Revenue is recognized using a proportional performance model, representing the transfer of goods or services as activities are performed over the term of the agreement. Upfront payments are also amortized to revenue over the performance period. Upfront payment contract liabilities resulting from the Company’s collaborations do not represent a financing component as the payment is not financing the transfer of goods or services, and the technology underlying the licenses granted reflects research and development expenses already incurred by the Company. When no performance obligations are required of the Company, or following the completion of the performance obligation period, such amounts are recognized as revenue upon transfer of control of the goods or services to the customer. Generally, all amounts received or due other than sales-based milestones and royalties are classified as collaboration and license agreement revenues. Sales-based milestones and royalties are recognized as royalty revenue in the period the related sale occurred. 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 as performance obligations are satisfied. 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 commercial sales-based milestones and sales royalties. Sales royalties are based on a percentage of Takeda’s net sales of ADCETRIS, with rates that range from the mid-teens to the mid-twenties based on sales volume. Takeda bears a portion of third-party royalty costs owed on its sales of ADCETRIS. This amount is included in royalty revenues. 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 period in which the related sales by Takeda occur. |
Recent accounting pronouncements not yet adopted | Recent accounting pronouncements not yet adopted In February 2016, FASB issued an Accounting Standards Update entitled “ASU 2016-02, Leases.” The standard requires entities to recognize in the consolidated balance sheet a liability to make lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term. The standard will become effective for the Company beginning January 1, 2019, with early adoption permitted. 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, and expects that the adoption of the standard will increase assets and liabilities related to the Company’s operating leases in the consolidated balance sheets. In June 2016, FASB issued an Accounting Standards Update entitled “ASU 2016-13, Financial Instruments: Credit Losses.” The objective of the standard is to provide information about expected credit losses on financial instruments at each reporting date and to change how other-than-temporary impairments on investments securities are recorded. The standard will become effective for the Company beginning on January 1, 2020, with early adoption permitted. 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. |
Revenue from Contracts with C16
Revenue from Contracts with Customers (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Revenue from Contracts with Customers Cumulative Effect | The Company recorded the following cumulative effect as of January 1, 2018, itemized here (in thousands) and further described below: Collaboration and license agreement revenues $ 10,282 Royalty revenues 22,230 Cost of royalty revenues (5,955 ) Accumulated deficit – (debit) credit $ 26,557 |
Summary of Collaboration and License Agreement Revenues by Collaborator | Collaboration and license agreement revenues by collaborator are summarized as follows (in thousands): Three months ended March 31, 2018 Takeda $ 13,572 AbbVie 8,000 Other 7,987 Collaboration and license agreement revenues $ 29,559 |
Schedule of Revenue from Contracts with Customers Impacts | Impacts to condensed consolidated financial statements as of and for the three months ended March 31, 2018 (in thousands) As reported Adjustments Balances Condensed Consolidated Balance Sheet data Assets Accounts receivable, net $ 118,579 $ (9,535 ) $ 109,044 Prepaid expenses and other current assets 44,126 (15,775 ) 28,351 Liabilities Current portion of deferred revenue 35,776 (1,578 ) 34,198 Deferred revenue, less current portion 23,387 (1,051 ) 22,336 Stockholders’ equity Accumulated deficit (1,213,610 ) (22,681 ) (1,236,291 ) Condensed Consolidated Statements of Comprehensive Loss data Collaboration and license agreement revenues $ 29,559 $ (2,864 ) $ 26,695 Royalty revenues 15,674 7,318 22,992 Total revenues 140,590 4,454 145,044 Cost of royalty revenues 5,377 578 5,955 Net loss (111,715 ) 3,876 (107,839 ) |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Debt and Equity Securities | The Company’s debt and equity securities consisted of the following (in thousands): Amortized Gross Gross Fair March 31, 2018 U.S. Treasury securities (debt securities) $ 213,285 $ 1 $ (260 ) $ 213,026 Equity securities 100,882 79,409 (758 ) 179,533 Total $ 314,167 $ 79,410 $ (1,018 ) $ 392,559 Contractual maturities of debt securities (at date of purchase) Due in one year or less $ 132,644 $ 132,587 Due in one to two years 80,641 80,439 Total $ 213,285 $ 213,026 December 31, 2017 U.S. Treasury securities (debt securities) $ 252,511 $ 0 $ (285 ) $ 252,226 Equity securities 90,882 97,476 0 188,358 Total $ 343,393 $ 97,476 $ (285 ) $ 440,584 Contractual maturities of debt securities (at date of purchase) Due in one year or less $ 151,903 $ 151,842 Due in one to two years 100,608 100,384 Total $ 252,511 $ 252,226 |
Fair Value (Tables)
Fair Value (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Summary of Fair Value Hierarchy of Assets Carried at Fair Value and Measured on a Recurring Basis | The fair value hierarchy of the Company’s assets carried at fair value and measured on a recurring basis was as follows (in thousands): Fair value measurement using: Quoted prices Other Significant Total March 31, 2018 Short-term investments—U.S. Treasury securities $ 213,026 $ 0 $ 0 $ 213,026 Other non-current assets—equity securities 179,533 0 0 179,533 Total $ 392,559 $ 0 $ 0 $ 392,559 December 31, 2017 Short-term investments—U.S. Treasury securities $ 252,226 $ 0 $ 0 $ 252,226 Other non-current assets—equity securities 188,358 0 0 188,358 Total $ 440,584 $ 0 $ 0 $ 440,584 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | The following table presents the Company’s inventories of ADCETRIS (in thousands): March 31, December 31, Raw materials $ 67,278 $ 52,398 Work in process 0 0 Finished goods 4,637 7,580 Total $ 71,915 $ 59,978 |
Acquisition of Cascadian (Table
Acquisition of Cascadian (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Business Combinations [Abstract] | |
Schedule of Purchase Price Allocation of Assets Acquired and Liabilities Assumed | The preliminary purchase price allocation of the assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date was as follows (in thousands): Cash and cash equivalents $ 15,919 Short-term and long-term investments 66,491 Prepaid expenses and other assets 2,215 Property and equipment 566 In-process research and development 300,000 Goodwill 251,017 Accounts payable and accrued liabilities (22,138 ) Total purchase price $ 614,070 |
Schedule of Business Acquisition, Unaudited Pro Forma Information | The following unaudited pro forma financial information is presented for informational purposes only and is not necessarily indicative of the results of operations that would have been achieved had the acquisition occurred as of January 1, 2017 or indicative of future results (in thousands): Three months ended March 31, 2018 2017 Revenues $ 140,590 $ 109,131 Net loss (140,649 ) (101,292 ) Basic and diluted net loss per share (0.89 ) (0.66 ) |
Summary of Significant Accoun21
Summary of Significant Accounting Policies - Additional Information (Detail) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018USD ($)Segment | Dec. 31, 2017USD ($) | Jan. 01, 2018USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | |||
Number of reporting segment operated | Segment | 1 | ||
Accrued capital expenditures | $ 2.3 | $ 1 | |
Number of days allowed to the customer to return product for expiration or damage | 30 days | ||
Long Term Incentive Plans [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
LTIP estimated unrecognized compensation expense | $ 34.8 | ||
Accounting Standards Update 2016-01 [Member] | Retained Earnings [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Cumulative effect adjustment | $ 64.1 |
Revenue from Contracts with C22
Revenue from Contracts with Customers - Summary of Revenue from Contracts with Customers Cumulative Effect (Detail) - USD ($) $ in Thousands | Jan. 01, 2018 | Mar. 31, 2018 | Mar. 31, 2017 |
Revenue from Contracts with Customers [Line Items] | |||
Collaboration and license agreement revenues | $ 29,559 | $ 21,830 | |
Royalty revenues | 15,674 | 16,980 | |
Cost of royalty revenues | $ (5,377) | $ (4,380) | |
Accounting Standards Update 2014-09 [Member] | |||
Revenue from Contracts with Customers [Line Items] | |||
Collaboration and license agreement revenues | $ 10,282 | ||
Royalty revenues | 22,230 | ||
Cost of royalty revenues | (5,955) | ||
Accumulated deficit - (debit) credit | $ 26,557 |
Revenue from Contracts with C23
Revenue from Contracts with Customers - Additional Information (Detail) $ in Millions | 3 Months Ended | |
Mar. 31, 2018USD ($)Product | Jan. 01, 2018USD ($) | |
ADCETRIS [Member] | ||
Revenue from Contracts with Customers [Line Items] | ||
Number of marketed product | Product | 1 | |
Takeda Collaboration and License Agreement [Member] | ||
Revenue from Contracts with Customers [Line Items] | ||
Deferred revenue | $ 58.3 | |
Collaboration and License Agreement Revenues [Member] | ||
Revenue from Contracts with Customers [Line Items] | ||
Deferred revenue | 9 | |
Accounting Standards Update 2014-09 [Member] | ADCETRIS [Member] | ||
Revenue from Contracts with Customers [Line Items] | ||
Contract asset | $ 15.8 | $ 12.7 |
Revenue from Contracts with C24
Revenue from Contracts with Customers - Summary of Collaboration and License Agreement Revenues by Collaborator (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Revenue from Contracts with Customers [Line Items] | ||
Collaboration and license agreement revenues | $ 29,559 | $ 21,830 |
Takeda Collaboration and License Agreement [Member] | ||
Revenue from Contracts with Customers [Line Items] | ||
Collaboration and license agreement revenues | 13,572 | |
AbbVie Collaboration and License Agreement [Member] | ||
Revenue from Contracts with Customers [Line Items] | ||
Collaboration and license agreement revenues | 8,000 | |
Other Collaboration and License Agreement [Member] | ||
Revenue from Contracts with Customers [Line Items] | ||
Collaboration and license agreement revenues | $ 7,987 |
Revenue from Contracts with C25
Revenue from Contracts with Customers - Schedule of Revenue from Contracts with Customers Impacts (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Assets | |||
Accounts receivable, net | $ 118,579 | $ 84,774 | |
Prepaid expenses and other current assets | 44,126 | 19,138 | |
Liabilities | |||
Current portion of deferred revenue | 35,776 | 34,457 | |
Deferred revenue, less current portion | 23,387 | 30,618 | |
Stockholders' equity | |||
Accumulated deficit | (1,213,610) | $ (1,192,570) | |
Condensed Consolidated Statements of Comprehensive Loss data | |||
Collaboration and license agreement revenues | 29,559 | $ 21,830 | |
Royalty revenues | 15,674 | 16,980 | |
Total revenues | 140,590 | 109,131 | |
Cost of royalty revenues | 5,377 | 4,380 | |
Net loss | (111,715) | $ (59,990) | |
Scenario, Adjustment [Member] | |||
Assets | |||
Accounts receivable, net | (9,535) | ||
Prepaid expenses and other current assets | (15,775) | ||
Liabilities | |||
Current portion of deferred revenue | (1,578) | ||
Deferred revenue, less current portion | (1,051) | ||
Stockholders' equity | |||
Accumulated deficit | (22,681) | ||
Condensed Consolidated Statements of Comprehensive Loss data | |||
Collaboration and license agreement revenues | (2,864) | ||
Royalty revenues | 7,318 | ||
Total revenues | 4,454 | ||
Cost of royalty revenues | 578 | ||
Net loss | 3,876 | ||
Scenario, Previously Reported [Member] | |||
Assets | |||
Accounts receivable, net | 109,044 | ||
Prepaid expenses and other current assets | 28,351 | ||
Liabilities | |||
Current portion of deferred revenue | 34,198 | ||
Deferred revenue, less current portion | 22,336 | ||
Stockholders' equity | |||
Accumulated deficit | (1,236,291) | ||
Condensed Consolidated Statements of Comprehensive Loss data | |||
Collaboration and license agreement revenues | 26,695 | ||
Royalty revenues | 22,992 | ||
Total revenues | 145,044 | ||
Cost of royalty revenues | 5,955 | ||
Net loss | $ (107,839) |
Net Loss Per Share - Additional
Net Loss Per Share - Additional Information (Detail) - shares | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
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 | 13,506,000 | 13,321,000 |
Common Stock - Additional Infor
Common Stock - Additional Information (Detail) - Underwritten Public Offering [Member] $ / shares in Units, $ in Millions | 1 Months Ended |
Feb. 28, 2018USD ($)$ / sharesshares | |
Common Stock [Line Items] | |
Number of shares issued | shares | 13,269,230 |
Offering price | $ / shares | $ 52 |
Net proceeds from stock offering | $ | $ 658.2 |
Investments - Additional Inform
Investments - Additional Information (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Equity Securities, Investment Summary [Member] | |
Schedule of Investments [Line Items] | |
Net losses from changes in fair values of equity securities | $ (18.8) |
Investments - Summary of Debt a
Investments - Summary of Debt and Equity Securities (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, Amortized cost | $ 314,167 | $ 343,393 |
Available-for-sale securities, Gross unrealized gains | 79,410 | 97,476 |
Available-for-sale securities, Gross unrealized losses | (1,018) | (285) |
Available-for-sale securities, Fair value | 392,559 | 440,584 |
Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, Amortized cost | 100,882 | 90,882 |
Available-for-sale securities, Gross unrealized gains | 79,409 | 97,476 |
Available-for-sale securities, Gross unrealized losses | (758) | 0 |
Available-for-sale securities, Fair value | 179,533 | 188,358 |
Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, Amortized cost | 213,285 | 252,511 |
Available-for-sale securities, Fair value | 213,026 | 252,226 |
Debt Securities [Member] | U.S. Treasury Securities (Debt Securities) [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, Amortized cost | 213,285 | 252,511 |
Available-for-sale securities, Gross unrealized gains | 1 | 0 |
Available-for-sale securities, Gross unrealized losses | (260) | (285) |
Available-for-sale securities, Fair value | 213,026 | 252,226 |
Debt Securities [Member] | Contractual Maturities Due in One Year or Less [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, Amortized cost | 132,644 | 151,903 |
Available-for-sale securities, Fair value | 132,587 | 151,842 |
Debt Securities [Member] | Contractual Maturities Due in One to Two Years [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, Amortized cost | 80,641 | 100,608 |
Available-for-sale securities, Fair value | $ 80,439 | $ 100,384 |
Fair Value - Summary of Fair Va
Fair Value - Summary of Fair Value Hierarchy of Assets Carried at Fair Value and Measured on a Recurring Basis (Detail) - Fair Value Measurements Recurring [Member] - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | $ 392,559 | $ 440,584 |
U.S. Treasury Securities (Debt Securities) [Member] | Short-term Investments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 213,026 | 252,226 |
Equity Securities [Member] | Other Non-current Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 179,533 | 188,358 |
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 | 392,559 | 440,584 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | U.S. Treasury Securities (Debt Securities) [Member] | Short-term Investments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 213,026 | 252,226 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Equity Securities [Member] | Other Non-current Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 179,533 | 188,358 |
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 (Debt 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] | Equity Securities [Member] | Other Non-current Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | U.S. Treasury Securities (Debt 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] | Equity Securities [Member] | Other Non-current Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | $ 0 | $ 0 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 67,278 | $ 52,398 |
Work in process | 0 | 0 |
Finished goods | 4,637 | 7,580 |
Total | $ 71,915 | $ 59,978 |
Acquisition of Cascadian - Addi
Acquisition of Cascadian - Additional Information (Detail) - Cascadian Therapeutics [Member] $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended |
Mar. 31, 2018USD ($)$ / shares | Mar. 31, 2018USD ($)$ / shares | |
Business Acquisition [Line Items] | ||
Share price | $ / shares | $ 10 | $ 10 |
Payments to acquire business | $ 614.1 | |
Acquisition-related costs | $ 8.5 |
Acquisition of Cascadian - Sche
Acquisition of Cascadian - Schedule of Purchase Price Allocation of Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Business Acquisition [Line Items] | ||
Goodwill | $ 251,017 | $ 0 |
Cascadian Therapeutics [Member] | ||
Business Acquisition [Line Items] | ||
Cash and cash equivalents | 15,919 | |
Short-term and long-term investments | 66,491 | |
Prepaid expenses and other assets | 2,215 | |
Property and equipment | 566 | |
In-process research and development | 300,000 | |
Goodwill | 251,017 | |
Accounts payable and accrued liabilities | (22,138) | |
Total purchase price | $ 614,070 |
Acquisition of Cascadian - Sc34
Acquisition of Cascadian - Schedule of Business Acquisition, Unaudited Pro Forma Information (Detail) - Cascadian Therapeutics [Member] - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Business Acquisition [Line Items] | ||
Revenues | $ 140,590 | $ 109,131 |
Net loss | $ (140,649) | $ (101,292) |
Basic and diluted net loss per share | $ (890) | $ (660) |