Document_and_Entity_Informatio
Document and Entity Information Document (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Mar. 09, 2015 | Jun. 30, 2014 | |
Document Information | |||
Entity Registrant Name | LEXICON PHARMACEUTICALS, INC./DE | ||
Entity Central Index Key | 1062822 | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | FALSE | ||
Entity Common Stock, Shares Outstanding | 725,145,313 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $368,000,000 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $137,266 | $37,499 |
Short-term investments, including restricted investments of $430 | 202,073 | 91,629 |
Accounts receivable, net of allowances of $35 | 1,035 | 790 |
Assets held for sale | 23,849 | 0 |
Prepaid expenses and other current assets | 4,764 | 4,636 |
Total current assets | 368,987 | 134,554 |
Property and equipment, net of accumulated depreciation and amortization of $36,274 and $81,945, respectively | 1,080 | 41,362 |
Goodwill | 44,543 | 44,543 |
Other intangible assets | 53,357 | 53,557 |
Other assets | 3,409 | 144 |
Total assets | 471,376 | 274,160 |
Current liabilities: | ||
Accounts payable | 13,064 | 9,715 |
Accrued liabilities | 10,120 | 7,674 |
Current portion of deferred revenue | 1,618 | 195 |
Current portion of long-term debt | 20,167 | 1,710 |
Total current liabilities | 44,969 | 19,294 |
Deferred revenue, net of current portion | 12,679 | 13,405 |
Long-term debt | 87,500 | 20,167 |
Deferred tax liabilities | 18,675 | 18,745 |
Other long-term liabilities | 23,535 | 32,386 |
Total liabilities | 187,358 | 103,997 |
Commitments and contingencies | ||
Equity: | ||
Preferred stock, $.01 par value; 5,000 shares authorized; no shares issued and outstanding | 0 | 0 |
Common stock, $.001 par value; 900,000 shares authorized; 725,641 and 514,349 shares issued, respectively | 726 | 514 |
Additional paid-in capital | 1,389,997 | 1,175,108 |
Accumulated deficit | -1,104,252 | -1,003,958 |
Accumulated other comprehensive gain (loss) | -63 | 2 |
Treasury stock, at cost, 1,281 and 814 shares, respectively | -2,390 | -1,503 |
Total equity | 284,018 | 170,163 |
Total liabilities and equity | $471,376 | $274,160 |
Balance_Sheet_Parentheticals
Balance Sheet Parentheticals (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Per Share data, unless otherwise specified | ||
Restricted investments | $430 | $430 |
Allowance for doubtful accounts receivable | 35 | 35 |
Accumulated depreciation and amortization, property and equipment | $36,274 | $81,945 |
Preferred stock, par value per share | $0.01 | $0.01 |
Preferred stock, shares authorized | 5,000 | 5,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value per share | $0.00 | $0.00 |
Common stock, shares authorized | 900,000 | 900,000 |
Treasury stock, shares | 1,281 | 814 |
Common Stock | ||
Common stock, shares issued | 725,641 | 514,349 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Loss (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues: | |||
Collaborative agreements | $22,593 | $2,109 | $783 |
Subscription and license fees | 261 | 113 | 306 |
Total revenues | 22,854 | 2,222 | 1,089 |
Operating expenses: | |||
Research and development, including stock-based compensation of $4,020, $4,376 and $3,673, respectively | 89,279 | 89,682 | 82,574 |
Increase (decrease) in fair value of Symphony Icon, Inc. purchase liability | 1,428 | -2,210 | 9,887 |
General and administrative, including stock-based compensation of $3,061, $3,045 and $2,822, respectively | 19,411 | 17,121 | 17,043 |
Impairment loss on buildings | 13,102 | 0 | 0 |
Total operating expenses | 123,220 | 104,593 | 109,504 |
Loss from operations | -100,366 | -102,371 | -108,415 |
Interest expense | -2,253 | -1,971 | -2,114 |
Interest and other income, net | 2,255 | 216 | 318 |
Consolidated net loss before taxes | -100,364 | -104,126 | -110,211 |
Income tax benefit | 70 | 0 | 0 |
Consolidated net loss | -100,294 | -104,126 | -110,211 |
Consolidated net loss per common share, basic and diluted | ($0.19) | ($0.20) | ($0.23) |
Shares used in computing consolidated net loss per common share, basic and diluted | 534,432 | 513,117 | 489,707 |
Other comprehensive gain (loss): | |||
Unrealized gain (loss) on investments | -65 | -21 | 2 |
Comprehensive loss | ($100,359) | ($104,147) | ($110,209) |
Statements_of_Comprehensive_Lo
Statements of Comprehensive Loss Parentheticals (Parentheticals) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Stock-based compensation expense associated with research and development expense | $4,020 | $4,376 | $3,673 |
Stock-based compensation expense associated with general and administrative expense | $3,061 | $3,045 | $2,822 |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | Total | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive Gain (Loss) | Treasury Stock |
In Thousands, except Share data | ||||||
Balance, value at Dec. 31, 2011 | $297,568 | $480 | $1,087,033 | ($789,621) | $21 | ($345) |
Balance, shares at Dec. 31, 2011 | 480,389,000 | |||||
Stock-based compensation | 6,495 | 0 | 6,495 | 0 | 0 | 0 |
Issuance of common stock to designees of Symphony Icon Holdings LLC, shares | 13,238,000 | |||||
Issuance of common stock to designees of Symphony Icon Holdings LLC, value | 35,000 | 13 | 34,987 | 0 | 0 | 0 |
Issuance of common stock under Equity Incentive Plans, shares | 1,248,000 | |||||
Issuance of common stock under Equity Incentive Plans, value | 1,054 | 1 | 1,053 | 0 | 0 | 0 |
Issuance of common stock, net of fees, shares | 17,500,000 | |||||
Issuance of common stock, net of fees, value | 37,055 | 18 | 37,037 | 0 | 0 | 0 |
Repurchase of common stock | -285 | 0 | 0 | 0 | 0 | -285 |
Net loss | -110,211 | 0 | 0 | -110,211 | 0 | 0 |
Unrealized gain (loss) on investments | 2 | 0 | 0 | 0 | 2 | 0 |
Balance, value at Dec. 31, 2012 | 266,678 | 512 | 1,166,605 | -899,832 | 23 | -630 |
Balance, shares at Dec. 31, 2012 | 512,375,000 | |||||
Stock-based compensation | 7,421 | 0 | 7,421 | 0 | 0 | 0 |
Issuance of common stock to designees of Symphony Icon Holdings LLC, value | 0 | |||||
Issuance of common stock under Equity Incentive Plans, shares | 1,974,000 | |||||
Issuance of common stock under Equity Incentive Plans, value | 1,084 | 2 | 1,082 | 0 | 0 | 0 |
Repurchase of common stock | -873 | 0 | 0 | 0 | 0 | -873 |
Net loss | -104,126 | 0 | 0 | -104,126 | 0 | 0 |
Unrealized gain (loss) on investments | -21 | 0 | 0 | 0 | -21 | 0 |
Balance, value at Dec. 31, 2013 | 170,163 | 514 | 1,175,108 | -1,003,958 | 2 | -1,503 |
Balance, shares at Dec. 31, 2013 | 514,349,000 | |||||
Stock-based compensation | 7,081 | 0 | 7,081 | 0 | 0 | 0 |
Issuance of common stock to designees of Symphony Icon Holdings LLC, shares | 4,663,000 | |||||
Issuance of common stock to designees of Symphony Icon Holdings LLC, value | 5,750 | 5 | 5,745 | 0 | 0 | 0 |
Issuance of common stock under Equity Incentive Plans, shares | 1,766,000 | |||||
Issuance of common stock under Equity Incentive Plans, value | 323 | 2 | 321 | 0 | 0 | 0 |
Issuance of common stock, net of fees, shares | 204,863,000 | |||||
Issuance of common stock, net of fees, value | 201,947 | 205 | 201,742 | 0 | 0 | 0 |
Repurchase of common stock | -887 | 0 | 0 | 0 | 0 | -887 |
Net loss | -100,294 | 0 | 0 | -100,294 | 0 | 0 |
Unrealized gain (loss) on investments | -65 | 0 | 0 | 0 | -65 | 0 |
Balance, value at Dec. 31, 2014 | $284,018 | $726 | $1,389,997 | ($1,104,252) | ($63) | ($2,390) |
Balance, shares at Dec. 31, 2014 | 725,641,000 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities: | |||
Consolidated net loss | ($100,294) | ($104,126) | ($110,211) |
Adjustments to reconcile consolidated net loss to net cash used in operating activities: | |||
Depreciation and amortization | 1,928 | 2,863 | 4,190 |
Impairment of assets | 13,544 | 0 | 0 |
Increase (decrease) in fair value of Symphony Icon, Inc. purchase liability | 1,428 | -2,210 | 9,887 |
Stock-based compensation | 7,081 | 7,421 | 6,495 |
Gain on disposal of property and equipment | -1,631 | 0 | 0 |
Amortization of debt issuance costs | 100 | 0 | 0 |
Deferred tax benefit | -70 | 0 | 0 |
Changes in operating assets and liabilities: | |||
(Increase) decrease in accounts receivable | 457 | 588 | -1,028 |
(Increase) decrease in prepaid expenses and other current assets | -128 | 1,713 | -2,601 |
(Increase) decrease in other assets | 0 | -9 | 96 |
Increase (decrease) in accounts payable and other liabilities | 1,266 | 3,119 | -995 |
Increase (decrease) in deferred revenue | 697 | -438 | -293 |
Net cash used in operating activities | -75,622 | -91,079 | -94,460 |
Cash flows from investing activities: | |||
Purchases of property and equipment | -80 | -1,721 | -492 |
Proceeds from disposal of property and equipment | 2,170 | 130 | 85 |
Purchases of investments | -221,953 | -111,490 | -233,250 |
Maturities of investments | 111,444 | 212,625 | 135,850 |
Net cash provided by (used in) investing activities | -108,419 | 99,544 | -97,807 |
Cash flows from financing activities: | |||
Proceeds from issuance of common stock, net of fees | 202,270 | 1,084 | 38,109 |
Repurchase of common stock | -887 | -873 | -285 |
Proceeds from debt borrowings, net of fees | 84,135 | 0 | 0 |
Repayment of debt borrowings | -1,710 | -1,574 | -1,443 |
Other financing activities | 0 | -26 | 0 |
Net cash provided by (used in) financing activities | 283,808 | -1,389 | 36,381 |
Net increase (decrease) in cash and cash equivalents | 99,767 | 7,076 | -155,886 |
Cash and cash equivalents at beginning of year | 37,499 | 30,423 | 186,309 |
Cash and cash equivalents at end of year | 137,266 | 37,499 | 30,423 |
Supplemental disclosure of cash flow information: | |||
Cash paid for interest | 1,761 | 1,897 | 2,028 |
Supplemental disclosure of noncash investing and financing activities: | |||
Unrealized gain (loss) on investments | -65 | -21 | 2 |
Common stock issued in satisfaction of Symphony Icon base payment obligation | $5,750 | $0 | $35,000 |
Organization_and_Operations
Organization and Operations | 12 Months Ended |
Dec. 31, 2014 | |
Organization and Operations [Abstract] | |
Organization and Operations | Organization and Operations |
Lexicon Pharmaceuticals, Inc. (“Lexicon” or the “Company”) is a Delaware corporation incorporated on July 7, 1995. Lexicon was organized to discover the functions and pharmaceutical utility of genes and use those gene function discoveries in the discovery and development of pharmaceutical products for the treatment of human disease. | |
Lexicon has financed its operations from inception primarily through sales of common and preferred stock, contract and milestone payments to it under drug discovery and development collaborations, target validation, database subscription and technology license agreements, government grants and contracts and financing under debt and lease arrangements. The Company’s future success is dependent upon many factors, including, but not limited to, its ability to discover and develop pharmaceutical products for the treatment of human disease, establish new collaboration and license agreements, achieve milestones under such agreements, obtain and enforce patents and other proprietary rights in its discoveries, comply with federal and state regulations, and maintain sufficient capital to fund its activities. As a result of the aforementioned factors and the related uncertainties, there can be no assurance of the Company’s future success. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Summary of Significant Accounting Policies [Abstract] | |||||||||
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies | ||||||||
Basis of Presentation: The accompanying consolidated financial statements include the accounts of Lexicon and its wholly-owned subsidiaries. Intercompany transactions and balances are eliminated in consolidation. | |||||||||
Use of Estimates: The preparation of financial statements in conformity with U. S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. Actual results could differ from those estimates. | |||||||||
Cash, Cash Equivalents and Short-Term Investments: Lexicon considers all highly-liquid investments with original maturities of three months or less to be cash equivalents. As of December 31, 2014 and 2013, short-term investments consist of U.S. treasury bills and certificates of deposit. The certificates of deposits are classified as available-for-sale securities and are carried at fair value, based on quoted market prices of the securities. The Company views its available-for-sale securities as available for use in current operations regardless of the stated maturity date of the security. Unrealized gains and losses on such securities are reported as a separate component of stockholders’ equity. Net realized gains and losses, interest and dividends are included in interest income. The cost of securities sold is based on the specific identification method. | |||||||||
Restricted Cash and Investments: Lexicon is required to maintain restricted cash or investments to collateralize standby letters of credit for the lease on its office and laboratory facilities in Hopewell, New Jersey (see Note 12). As of December 31, 2014 and 2013, restricted cash and investments were $0.4 million and $0.4 million, respectively. | |||||||||
Accounts Receivable: Lexicon records trade accounts receivable in the normal course of business related to the sale of products or services. The allowance for doubtful accounts takes into consideration such factors as historical write-offs, the economic climate and other factors that could affect collectibility. Write-offs are evaluated on a case by case basis. | |||||||||
Concentration of Credit Risk: Lexicon’s cash equivalents, investments and accounts receivable represent potential concentrations of credit risk. The Company attempts to minimize potential concentrations of risk in cash equivalents and investments by placing investments in high-quality financial instruments. The Company’s accounts receivable are unsecured and are concentrated in pharmaceutical and biotechnology companies located in the United States. The Company has not experienced any significant credit losses to date. In 2014, customers in France and the United States represented 94% and 6% of revenue, respectively. In 2013 and 2012, customers in the United States represented 100% and 100% of revenue, respectively. At December 31, 2014, management believes that the Company has no significant concentrations of credit risk. | |||||||||
Segment Information and Significant Customers: Lexicon operates in one business segment, which primarily focuses on the discovery of the functions and pharmaceutical utility of genes and the use of those gene function discoveries in the discovery and development of pharmaceutical products for the treatment of human disease. Substantially all of the Company’s revenues have been derived from drug discovery alliances, target validation collaborations for the development and, in some cases, analysis of the physiological effects of genes altered in knockout mice, technology licenses, subscriptions to its databases, government grants and contracts and compound library sales. In 2014, Ipsen Pharma SAS represented 94% of revenues. In 2013, McNair Medical Institute, LLC and Taconic Farms, Inc. represented 57% and 33% of revenues, respectively. In 2012, Taconic Farms and Deltagen represented 68% and 25% of revenues, respectively. | |||||||||
Property and Equipment: Property and equipment are carried at cost and depreciated using the straight-line method over the estimated useful life of the assets which ranges from three to 40 years. Maintenance, repairs and minor replacements are charged to expense as incurred. Leasehold improvements are amortized over the shorter of the estimated useful life or the remaining lease term. Significant renewals and betterments are capitalized. | |||||||||
Impairment of Long-Lived Assets: Long-lived assets and certain identifiable intangible assets to be held and used are reviewed for impairment when events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Indefinite lived intangible assets are also tested at least annually for impairment. Determination of recoverability is based on an estimate of undiscounted future cash flows resulting from the use of the asset and its eventual disposition. In the event that such cash flows are not expected to be sufficient to recover the carrying amount of the assets, the assets are written down to their estimated fair values. In 2014, Lexicon reclassified its buildings as assets held for sale, and recorded an impairment loss of $13.1 million (see Note 6, Assets Held for Sale). | |||||||||
Goodwill Impairment: Goodwill is not amortized, but is tested at least annually for impairment at the reporting unit level. The Company has determined that the reporting unit is the single operating segment disclosed in its current financial statements. Impairment is the condition that exists when the carrying amount of goodwill exceeds its implied fair value. The first step in the impairment process is to determine the fair value of the reporting unit and then compare it to the carrying value, including goodwill. If the fair value exceeds the carrying value, no further action is required and no impairment loss is recognized. Additional impairment assessments may be performed on an interim basis if the Company encounters events or changes in circumstances that would indicate that, more likely than not, the carrying value of goodwill has been impaired. There was no impairment of goodwill in 2014, 2013 or 2012. | |||||||||
Revenue Recognition: Revenues are recognized when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the price is fixed or determinable and collectibility is reasonably assured. | |||||||||
Collaborative agreements revenues include both license revenue and contract research revenue. Activities under collaborative agreements are evaluated to determine if they represent a multiple element revenue agreement. The Company identifies the deliverables included within the agreement and evaluates which deliverables represent separate units of accounting. The Company accounts for those components as separate units of accounting if the following two criteria are met: | |||||||||
• | The delivered item or items have value to the customer on a stand-alone basis. | ||||||||
• | If there is a general right of return relative to the delivered items, delivery or performance of the undelivered items is considered probable and within the Company’s control. | ||||||||
Factors considered in this determination include, among other things, whether any other vendors sell the items separately and if the licensee could use the delivered item for its intended purpose without the receipt of the remaining deliverables. If multiple deliverables included in an arrangement are separable into different units of accounting, the Company allocates the arrangement consideration to those units of accounting. The amount of allocable arrangement consideration is limited to amounts that are fixed or determinable. Arrangement consideration is allocated at the inception of the arrangement to the identified units of accounting based on their relative estimated selling price. Revenue is recognized for each unit of accounting when the appropriate revenue recognition criteria are met. | |||||||||
Future milestone payments that are contingent upon the achievement of a substantive milestone are recognized in their entirety in the period in which the milestone is achieved. A milestone is substantive if: | |||||||||
• | It can only be achieved based in whole or in part on either the Company’s performance or on the occurrence of a specific outcome resulting from the Company’s performance; | ||||||||
• | There is substantive uncertainty at the date an arrangement is entered into that the event will be achieved; and | ||||||||
• | It would result in additional payments being due to the Company. | ||||||||
Subscription and license fees are recognized as revenue upon the grant of the technology license when performance is complete and there is no continuing involvement. Royalty revenues are recognized as earned in accordance with the contract terms at the time the royalty amount is fixed and determinable based on information received from the sublicensees and at the time collectibility is reasonably assured. | |||||||||
Research and Development Expenses: Research and development expenses consist of costs incurred for company-sponsored as well as collaborative research and development activities. These costs include direct and research-related overhead expenses and are expensed as incurred. Technology license fees for technologies that are utilized in research and development and have no alternative future use are expensed when incurred. Substantial portions of the Company’s preclinical and clinical trials are performed by third-party laboratories, medical centers, contract research organizations and other vendors. For preclinical studies, the Company accrues expenses based upon estimated percentage of work completed and the contract milestones remaining. For clinical studies, expenses are accrued based upon the number of patients enrolled and the duration of the study. The Company monitors patient enrollment, the progress of clinical studies and related activities to the extent possible through internal reviews of data reported to the Company by the vendors and clinical site visits. The Company’s estimates depend on the timeliness and accuracy of the data provided by the vendors regarding the status of each program and total program spending. The Company periodically evaluates the estimates to determine if adjustments are necessary or appropriate based on information it receives. | |||||||||
Stock-Based Compensation: The Company recognizes compensation expense in its statements of comprehensive loss for share-based payments, including stock options and restricted stock units issued to employees, based on their fair values on the date of the grant, with the compensation expense recognized over the period in which an employee is required to provide service in exchange for the stock award. Stock-based compensation expense for awards without performance conditions is recognized on a straight-line basis. Stock-based compensation expense for awards with performance conditions is recognized over the period from the date the performance condition is determined to be probable of occurring through the time the applicable condition is met. As of December 31, 2014, stock-based compensation cost for all outstanding unvested options and restricted stock units was $10.4 million, which is expected to be recognized over a weighted-average period of 1.3 years. | |||||||||
The fair value of stock options is estimated at the date of grant using the Black-Scholes method. The Black-Scholes option-pricing model requires the input of subjective assumptions. Because the Company’s employee stock options have characteristics significantly different from those of traded options, and because changes in the subjective input assumptions can materially affect the fair value estimate, in management’s opinion, the existing models do not necessarily provide a reliable single measure of the fair value of its employee stock options. For purposes of determining the fair value of stock options, the Company segregates its options into two homogeneous groups, based on exercise and post-vesting employment termination behaviors, resulting in a change in the assumptions used for expected option lives and forfeitures. Expected volatility is based on the historical volatility in the Company’s stock price. The following weighted-average assumptions were used for options granted in the years ended December 31, 2014, 2013 and 2012, respectively: | |||||||||
Expected Volatility | Risk-free Interest Rate | Expected Term | Dividend | ||||||
Rate | |||||||||
December 31, 2014: | |||||||||
Employees | 66% | 1.20% | 4 | 0 | % | ||||
Officers and non-employee directors | 80% | 2.30% | 8 | 0 | % | ||||
December 31, 2013: | |||||||||
Employees | 85% | 0.90% | 5 | 0 | % | ||||
Officers and non-employee directors | 81% | 1.60% | 8 | 0 | % | ||||
December 31, 2012: | |||||||||
Employees | 93% | 0.80% | 5 | 0 | % | ||||
Officers and non-employee directors | 81% | 1.50% | 8 | 0 | % | ||||
Net Loss per Common Share: Net loss per common share is computed using the weighted average number of shares of common stock outstanding. Shares associated with convertible debt, stock options, restricted stock units and warrants are not included because they are antidilutive. |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2014 | |
Recent Accounting Pronouncements [Abstract] | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | Recent Accounting Pronouncements |
In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers”, which amends FASB ASC Topic 606. ASU 2014-09 provides a single, comprehensive revenue recognition model for all contracts with customers. This standard contains principles for the determination of the measurement of revenue and the timing of when such revenue is recognized. Revenue recognition will reflect the transfer of goods or services to customers at an amount that is expected to be earned in exchange for those goods or services. This pronouncement is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, and early adoption is not permitted. Management is currently evaluating the impact of this pronouncement on Lexicon’s consolidated financial statements. | |
In August 2014, the FASB issued ASU No. 2014-15, “Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern.” ASU 2014-15 will explicitly require management to assess an entity’s ability to continue as a going concern, and to provide related footnote disclosure in certain circumstances. This pronouncement is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, and early adoption is permitted. Management does not expect the adoption of this pronouncement to have a material impact on Lexicon’s consolidated financial statements. |
Cash_and_Cash_Equivalents_and_
Cash and Cash Equivalents and Investments | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Cash and Cash Equivalents and Investments [Abstract] | ||||||||||||||||
Cash and Cash Equivalents and Investments | Cash and Cash Equivalents and Investments | |||||||||||||||
The fair value of cash and cash equivalents and investments held at December 31, 2014 and 2013 are as follows: | ||||||||||||||||
As of December 31, 2014 | ||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | |||||||||||||
(in thousands) | ||||||||||||||||
Cash and cash equivalents | $ | 137,266 | $ | — | $ | — | $ | 137,266 | ||||||||
Securities maturing within one year: | ||||||||||||||||
Certificates of deposit | 552 | — | — | 552 | ||||||||||||
U.S. treasury securities | 201,584 | 3 | (66 | ) | 201,521 | |||||||||||
Total short-term investments | $ | 202,136 | $ | 3 | $ | (66 | ) | $ | 202,073 | |||||||
Total cash and cash equivalents and investments | $ | 339,402 | $ | 3 | $ | (66 | ) | $ | 339,339 | |||||||
As of December 31, 2013 | ||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | |||||||||||||
(in thousands) | ||||||||||||||||
Cash and cash equivalents | $ | 37,499 | $ | — | $ | — | $ | 37,499 | ||||||||
Securities maturing within one year: | ||||||||||||||||
Certificates of deposit | 552 | — | — | 552 | ||||||||||||
U.S. treasury securities | 91,075 | 3 | (1 | ) | 91,077 | |||||||||||
Total short-term investments | $ | 91,627 | $ | 3 | $ | (1 | ) | $ | 91,629 | |||||||
Total cash and cash equivalents and investments | $ | 129,126 | $ | 3 | $ | (1 | ) | $ | 129,128 | |||||||
There were no realized gains or losses for the year ended December 31, 2014, no realized gains or losses for the year ended December 31, 2013, and no realized gains or losses for the year ended December 31, 2012. |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Fair Value Measurements [Abstract] | ||||||||||||||||
Fair Value Measurements | Fair Value Measurements | |||||||||||||||
The Company uses various inputs in determining the fair value of its investments and measures these assets on a recurring basis. Assets and liabilities recorded at fair value in the consolidated balance sheets are categorized by the level of objectivity associated with the inputs used to measure their fair value. The following levels are directly related to the amount of subjectivity associated with the inputs to fair valuation of these assets and liabilities: | ||||||||||||||||
• | Level 1 – quoted prices in active markets for identical assets, which include U.S. treasury securities | |||||||||||||||
• | Level 2 – other significant observable inputs (including quoted prices for similar investments, market corroborated inputs, etc.) | |||||||||||||||
• | Level 3 – significant unobservable inputs (including the Company’s own assumptions in determining the fair value of assets and liabilities) | |||||||||||||||
The inputs or methodology used for valuing securities are not necessarily an indication of the credit risk associated with investing in those securities. The following tables provide the fair value measurements of applicable Company assets and liabilities that are measured at fair value on a recurring basis according to the fair value levels defined above as of December 31, 2014 and 2013. | ||||||||||||||||
Assets and Liabilities at Fair Value | ||||||||||||||||
As of December 31, 2014 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
(in thousands) | ||||||||||||||||
Assets | ||||||||||||||||
Cash and cash equivalents | $ | 137,266 | $ | — | $ | — | $ | 137,266 | ||||||||
Short-term investments | 201,521 | 552 | — | 202,073 | ||||||||||||
Total cash and cash equivalents and investments | $ | 338,787 | $ | 552 | $ | — | $ | 339,339 | ||||||||
Liabilities | ||||||||||||||||
Other long-term liabilities | $ | — | $ | — | $ | 17,638 | $ | 17,638 | ||||||||
Total liabilities | $ | — | $ | — | $ | 17,638 | $ | 17,638 | ||||||||
Assets and Liabilities at Fair Value | ||||||||||||||||
As of December 31, 2013 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
(in thousands) | ||||||||||||||||
Assets | ||||||||||||||||
Cash and cash equivalents | $ | 37,499 | $ | — | $ | — | $ | 37,499 | ||||||||
Short-term investments | 91,077 | 552 | — | 91,629 | ||||||||||||
Total cash and cash equivalents and investments | $ | 128,576 | $ | 552 | $ | — | $ | 129,128 | ||||||||
Liabilities | ||||||||||||||||
Other long-term liabilities | $ | — | $ | — | $ | 27,710 | $ | 27,710 | ||||||||
Total liabilities | $ | — | $ | — | $ | 27,710 | $ | 27,710 | ||||||||
The Company did not have any Level 3 assets during the years ended December 31, 2014, 2013 and 2012. Transfers between levels are recognized at the actual date of circumstance that caused the transfer. The Company’s Level 3 liabilities are estimated using a probability-based income approach utilizing an appropriate discount rate. Subsequent changes in the fair value of the Symphony Icon (“Symphony Icon”) purchase consideration liability are recorded as an increase or decrease in Symphony Icon purchase liability in the accompanying consolidated statements of comprehensive loss. The fair value of the Symphony Icon purchase consideration liability increased by $1.4 million during the year ended December 31, 2014, decreased by $2.2 million during the year ended December 31, 2013, and increased by $9.9 million during the year ended December 31, 2012. The following table summarizes the change in consolidated balance sheet carrying value associated with Level 3 liabilities for the years ended December 31, 2012, 2013 and 2014. | ||||||||||||||||
Other Long-term Liabilities | ||||||||||||||||
(in thousands) | ||||||||||||||||
Balance at December 31, 2011 | $ | 55,033 | ||||||||||||||
Change in valuation of purchase consideration payable to former Symphony Icon stockholders | 9,887 | |||||||||||||||
Payment of base payment obligation with common stock | (35,000 | ) | ||||||||||||||
Balance at December 31, 2012 | 29,920 | |||||||||||||||
Change in valuation of purchase consideration payable to former Symphony Icon stockholders | (2,210 | ) | ||||||||||||||
Balance at December 31, 2013 | 27,710 | |||||||||||||||
Change in valuation of purchase consideration payable to former Symphony Icon stockholders | 1,428 | |||||||||||||||
Payment of contingent payment obligation with common stock and cash | (11,500 | ) | ||||||||||||||
Balance at December 31, 2014 | $ | 17,638 | ||||||||||||||
The Company also has assets that under certain conditions are subject to measurement at fair value on a non-recurring basis. These assets include goodwill associated with the acquisitions of Coelacanth Corporation in 2001 and Symphony Icon on July 30, 2010 and intangible assets associated with the acquisition of Symphony Icon on July 30, 2010. For these assets, measurement at fair value in periods subsequent to their initial recognition is applicable if one or more is determined to be impaired. |
Assets_Held_for_Sale
Assets Held for Sale | 12 Months Ended |
Dec. 31, 2014 | |
Assets Held for Sale [Abstract] | |
Disclosure of Long Lived Assets Held-for-sale [Table Text Block] | Assets Held for Sale |
Lexicon’s buildings and land have been reclassified as assets held for sale on the consolidated balance sheet as of | |
December 31, 2014. The Company estimated the fair value of the net assets to be sold at approximately $23.8 million as of | |
December 31, 2014, which represents estimated selling price less costs to sell. This resulted in an impairment loss on the | |
assets held for sale of $13.1 million in the year ended December 31, 2014, which was recorded in impairment loss on | |
buildings in the accompanying consolidated statement of comprehensive loss for the year ended December 31, 2014. The fair value of the net assets to be sold was determined using Level 2 inputs using sales prices in similar real estate sales and offers received from potential purchasers of the building. |
Property_and_Equipment
Property and Equipment | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Property and Equipment [Abstract] | |||||||||||||
Property and Equipment | Property and Equipment | ||||||||||||
Property and equipment at December 31, 2014 and 2013 are as follows: | |||||||||||||
Estimated Useful Lives | As of December 31, | ||||||||||||
In Years | 2014 | 2013 | |||||||||||
(in thousands) | |||||||||||||
Computers and software | 5-Mar | $ | 9,468 | $ | 11,180 | ||||||||
Furniture and fixtures | 7-May | 7,032 | 7,315 | ||||||||||
Laboratory equipment | 7-Mar | 12,737 | 34,952 | ||||||||||
Leasehold improvements | 10-Jul | 8,117 | 8,092 | ||||||||||
Buildings | 15-40 | — | 59,104 | ||||||||||
Land | — | — | 2,664 | ||||||||||
Total property and equipment | 37,354 | 123,307 | |||||||||||
Less: Accumulated depreciation and amortization | (36,274 | ) | (81,945 | ) | |||||||||
Net property and equipment | $ | 1,080 | $ | 41,362 | |||||||||
Buildings of $59.1 million and land of $2.7 million, as well as $38.0 million of related accumulated depreciation, have been reclassified to assets held for sale (see Note 6, Assets Held for Sale) as of December 31, 2014. |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Income Taxes [Abstract] | ||||||||
Income Taxes | Income Taxes | |||||||
Lexicon recognizes deferred tax liabilities and assets for the expected future tax consequences of events that have been recognized differently in the financial statements and tax returns. Under this method, deferred tax liabilities and assets are determined based on the difference between the financial statement carrying amounts and tax bases of liabilities and assets using enacted tax rates and laws in effect in the years in which the differences are expected to reverse. Deferred tax assets are evaluated for realization based on a more-likely-than-not criteria in determining if a valuation allowance should be provided. | ||||||||
The components of Lexicon’s deferred tax assets (liabilities) at December 31, 2014 and 2013 are as follows: | ||||||||
As of December 31, | ||||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
Deferred tax assets: | ||||||||
Net operating loss carryforwards | $ | 255,518 | $ | 238,608 | ||||
Research and development tax credits | 40,173 | 37,453 | ||||||
Capitalized research and development | 95,946 | 83,375 | ||||||
Stock-based compensation | 7,648 | 7,703 | ||||||
Deferred revenue | 4,457 | 4,760 | ||||||
Other | 8,681 | 4,712 | ||||||
Total deferred tax assets | 412,423 | 376,611 | ||||||
Deferred tax liabilities: | ||||||||
Deferred tax liability related to acquisition of Symphony Icon | (18,675 | ) | (18,745 | ) | ||||
Total deferred tax liabilities | (18,675 | ) | (18,745 | ) | ||||
Less: valuation allowance | (412,423 | ) | (376,611 | ) | ||||
Net deferred tax liabilities | $ | (18,675 | ) | $ | (18,745 | ) | ||
The $18.7 million deferred tax liability relates to the tax impact of future amortization or possible impairments associated with intangible assets acquired with Symphony Icon, which are not deductible for tax purposes. Lexicon does not believe it can estimate the reversal of the temporary difference related to the assets acquired with sufficient certainty such that the related deferred tax liability could be considered as a source of taxable income in assessing the Company’s need for a valuation allowance. | ||||||||
At December 31, 2014, Lexicon had both federal and state NOL carryforwards of approximately $715.8 million and $460.2 million, respectively. The federal and state NOL carryforwards began to expire in 2011 and continued to expire in 2012. The Company’s R&D tax credit carryforwards of approximately $40.2 million began to expire in 2012. Utilization of the NOL and R&D credit carryforwards may be subject to a significant annual limitation due to ownership changes that have occurred previously or could occur in the future provided by Section 382 of the Internal Revenue Code. Based on the federal tax law limits and the Company’s cumulative loss position, Lexicon concluded it was appropriate to establish a full valuation allowance for its net deferred tax assets until an appropriate level of profitability is sustained. During the year ended December 31, 2014, the valuation allowance increased $35.8 million, primarily due to the Company’s current year net loss. Lexicon recorded income tax benefits of $70,000, $0 and $0 in the years ended December 31, 2014, 2013 and 2012, respectively. During the year ended December 31, 2013, the Company recorded certain revisions to its deferred tax assets. The revisions reduced the deferred tax assets and valuation allowance by $13.8 million. There was no impact to the Company’s equity or operating results for any period. As of December 31, 2014 and 2013, the Company did not have any unrecognized tax benefits. | ||||||||
The Company is primarily subject to U.S. federal and New Jersey and Texas state income taxes. The tax years 1995 to current remain open to examination by U.S. federal authorities and 2004 to current remain open to examination by state authorities. The Company’s policy is to recognize interest and penalties related to income tax matters in income tax expense. As of December 31, 2014 and 2013, the Company had no accruals for interest or penalties related to income tax matters. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2014 | |
Goodwill [Abstract] | |
Goodwill | Goodwill |
On July 12, 2001, Lexicon completed the acquisition of Coelacanth Corporation in a merger. Coelacanth, now Lexicon Pharmaceuticals (New Jersey), Inc., formed the core of the Company’s division responsible for small molecule compound discovery. The results of Lexicon Pharmaceuticals (New Jersey), Inc. are included in the Company’s results of operations for the period subsequent to the acquisition. Goodwill associated with the acquisition of $25.8 million, which represents the excess of the $36.0 million purchase price over the fair value of the underlying net identifiable assets, was assigned to the consolidated entity, Lexicon. | |
On July 30, 2010, Lexicon exercised its Purchase Option (as defined in Note 11) and completed the acquisition of Symphony Icon. Goodwill associated with the acquisition of $18.7 million, which represents the assets recognized in connection with the deferred tax liability acquired and did not result from excess purchase price, was assigned to the consolidated entity, Lexicon. | |
Goodwill is not subject to amortization, but is tested at least annually for impairment at the reporting unit level, which is the Company’s single operating segment. The Company performed an impairment test of goodwill on its annual impairment assessment date. This test did not result in an impairment of goodwill. |
Debt_Obligations
Debt Obligations | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Debt Obligations [Abstract] | ||||
Debt Obligations | Debt Obligations | |||
Convertible Debt. In November 2014, Lexicon completed an offering of $87.5 million in aggregate principal amount of its 5.25% Convertible Senior Notes due 2021 (the “Notes”). In accordance with the accounting guidance, the conversion feature did not meet the criteria for bifurcation, and the entire principal amount was recorded as long-term debt on the Company’s consolidated balance sheet. | ||||
The Notes are governed by an indenture (the “Indenture”), dated as of November 26, 2014, between the Company and Wells Fargo Bank, N.A., as trustee. The Notes bear interest at a rate of 5.25% per year, payable semiannually in arrears on June 1 and December 1 of each year, beginning on June 1, 2015. The Notes mature on December 1, 2021. The Company may not redeem the Notes prior to the maturity date, and no sinking fund is provided for the Notes. | ||||
Holders of the Notes may convert their Notes at their option at any time prior to the close of business on the business day immediately preceding the maturity date. Upon conversion, the Company will deliver for each $1,000 principal amount of converted Notes a number of shares of its common stock equal to the conversion rate, as described in the Indenture. The conversion rate is initially 829.1874 shares of common stock per $1,000 principal amount of Notes (equivalent to an initial conversion price of $1.206 per share of common stock). The conversion rate is subject to adjustment in some events but will not be adjusted for any accrued and unpaid interest. In addition, following certain corporate events that occur prior to the maturity date, the Company will increase the conversion rate for a holder who elects to convert its Notes in connection with such a corporate event in certain circumstances. | ||||
If the Company undergoes a fundamental change, holders may require the Company to repurchase for cash all or any portion of their Notes at a fundamental change repurchase price equal to 100% of the principal amount of the Notes to be repurchased, plus accrued and unpaid interest to, but excluding, the fundamental change repurchase date. | ||||
In connection with the issuance of the Notes, the Company incurred $3.4 million of debt issuance costs, which is included in other assets on the consolidated balance sheets. The debt issuance costs are amortized as interest expense over the expected life of the Notes using the effective interest method. The Company determined the expected life of the debt was equal to the seven-year term of the Notes. As of December 31, 2014, the balance of unamortized debt issuance costs was $3.3 million. | ||||
The fair value of the Notes was $81.0 million as of December 31, 2014 and was determined using Level 2 inputs based on the indicative pricing published by certain investment banks or trading levels of the Notes, which are not listed on any securities exchange or quoted on an inter-dealer automated quotation system. | ||||
Mortgage Loan. In April 2004, Lexicon purchased its existing laboratory and office buildings and animal facilities in The Woodlands, Texas with proceeds from a $34.0 million third-party mortgage financing and $20.8 million in cash. The mortgage loan originally had a ten-year term with a 20-year amortization and a fixed interest rate of 8.23%. The mortgage was amended in September 2013 to extend the maturity date from April 2014 to April 2017, with the mortgage loan’s monthly payment amount and fixed interest rate each remaining unchanged. The mortgage had a principal balance of $20.2 million as of December 31, 2014. This entire balance has been classified as current liabilities on the accompanying consolidated balance sheet as of December 31, 2014 as management intends to repay the mortgage when the assets that serve as collateral for the mortgage loan are sold. These assets have been reclassified to assets held for sale as of December 31, 2014, as discussed in Note 6, Assets Held for Sale. The buildings and land that serve as collateral for the mortgage loan are included in assets held for sale at $59.1 million and $2.7 million, respectively, before accumulated depreciation, as of December 31, 2014. The fair value of Lexicon’s mortgage loan approximates its carrying value. The fair value of Lexicon’s mortgage loan was determined using Level 2 inputs using discounted cash flow analysis, based on the Company’s estimated current incremental borrowing rate. | ||||
The following table includes the aggregate future principal payments of the Company’s long-term debt as of December 31, 2014. As discussed above, all of the principal due in 2015, 2016 and 2017 relate to the mortgage loan and have been classified as current portion of long-term debt in the accompanying consolidated balance sheet as of December 31, 2014: | ||||
For the Year Ending | ||||
31-Dec | ||||
(in thousands) | ||||
2015 | $ | 1,859 | ||
2016 | 2,015 | |||
2017 | 16,293 | |||
2018 | — | |||
2019 | — | |||
Thereafter | 87,500 | |||
Total debt | 107,667 | |||
Less current portion | (20,167 | ) | ||
Total long-term debt | $ | 87,500 | ||
Arrangements_with_Symphony_Ico
Arrangements with Symphony Icon, Inc. | 12 Months Ended |
Dec. 31, 2014 | |
Arrangements with Symphony Icon Inc [Abstract] | |
Arrangements with Symphony Icon, Inc. | Arrangements with Symphony Icon, Inc. |
On June 15, 2007, Lexicon entered into a series of related agreements providing for the financing of the clinical development of certain of its drug candidates, including LX1032 and LX1033, along with any other pharmaceutical compositions modulating the same targets as those drug candidates (the “Programs”). The agreements included a Novated and Restated Technology License Agreement pursuant to which the Company licensed to Symphony Icon, a then wholly-owned subsidiary of Symphony Icon Holdings LLC (“Holdings”), the Company’s intellectual property rights related to the Programs. Holdings contributed $45 million to Symphony Icon in order to fund the clinical development of the Programs. | |
Under a Share Purchase Agreement, dated June 15, 2007, between the Company and Holdings, the Company issued and sold to Holdings 7,650,622 shares of its common stock on June 15, 2007 in exchange for $15 million and an exclusive purchase option (the “Purchase Option”) that gave the Company the right to acquire all of the equity of Symphony Icon, thereby allowing the Company to reacquire all of the Programs. On July 30, 2010, Lexicon entered into an Amended and Restated Purchase Option Agreement with Symphony Icon and Holdings and simultaneously exercised the Purchase Option, thereby reacquiring the Programs. Pursuant to the amended terms of the Purchase Option, Lexicon paid Holdings $10 million on July 30, 2010 and issued 13,237,519 shares of common stock to designees of Holdings on July 30, 2012 in satisfaction of an additional $35.0 million base payment obligation. | |
Lexicon also agreed to make up to $45 million in additional contingent payments, which will consist of 50% of any consideration Lexicon receives pursuant to any licensing transaction (a “Licensing Transaction”) under which Lexicon grants a third party rights to commercialize LX1032, LX1033 or other pharmaceutical compositions modulating the same target as those drug candidates (the “LG103 Programs”), subject to certain exceptions. The contingent payments will be due if and when Lexicon receives such consideration from a Licensing Transaction. In the event Lexicon receives regulatory approval in the United States for the marketing and sale of any product resulting from the LG103 Programs prior to entering into a Licensing Transaction for the commercialization of such product in the United States, in lieu of any contingent payment from such a Licensing Transaction, Lexicon will pay Holdings the sum of $15 million and the amount of certain expenses Lexicon incurred after its exercise of the Purchase Option which are attributable to the development of such product, reduced by up to 50% of such sum on account of any contingent payments paid prior to such United States regulatory approval attributable to any such Licensing Transaction outside of the United States with respect to such product. In the event Lexicon makes any such payment upon United States regulatory approval, Lexicon will have no obligation to make subsequent contingent payments attributable to any such Licensing Transactions for the commercialization of such product outside the United States until the proceeds of such Licensing Transactions exceed 50% of the payment made as a result of such United States regulatory approval. The contingent payments may be paid in cash or a combination of cash and common stock, in Lexicon’s discretion, provided that no more than 50% of any contingent payment will be paid in common stock. On December 4, 2014, Lexicon paid $5.8 million in cash and issued 4,662,780 shares of common stock to designees of Holdings in satisfaction of a $11.5 million contingent payment obligation as a result of receiving a $23 million upfront payment pursuant to the license and collaboration agreement with Ipsen Pharma SAS (see Note 16, Collaboration and License Agreements). | |
Lexicon accounted for the exercise of the Purchase Option and acquisition of Symphony Icon as a business combination. In connection with its acquisition of Symphony Icon, Lexicon paid $10.0 million in cash, and has also agreed to pay Holdings additional base and contingent payments as discussed above. The fair value of the base and contingent consideration payments was $45.6 million and was estimated by applying a probability-based income approach utilizing an appropriate discount rate. This estimation was based on significant inputs that are not observable in the market, referred to as Level 3 inputs. Key assumptions include: (1) a discount rate of 14% for the base payments; (2) a discount rate of 18% for the contingent payments; and (3) a probability adjusted contingency. The discount rate assumptions have not changed through December 31, 2014, and as programs progress, the probability adjusted contingency is adjusted as necessary. Subsequent changes in the fair value of the Symphony Icon purchase consideration liability are recorded as increase or decrease in fair value of Symphony Icon purchase liability expense in the accompanying consolidated statements of comprehensive loss. The fair value of the Symphony Icon purchase consideration liability increased by $1.4 million during the year ended December 31, 2014, decreased by $2.2 million during the year ended December 31, 2013, and increased by $9.9 million during the year ended December 31, 2012. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Commitments and Contingencies [Abstract] | ||||
Commitments and Contingencies | Commitments and Contingencies | |||
Operating Lease Obligations: A Lexicon subsidiary leases laboratory and office space in Hopewell, New Jersey under an amended lease agreement which previously had an expiration date in June 2018. In March 2015, the subsidiary entered into a termination agreement whereby the lease will terminate in June 2015. The amended lease includes escalating lease payments. Rent expense is recognized on a straight-line basis over the amended lease term. Lexicon is the guarantor of the obligation of its subsidiary under this lease. The Company is required to maintain restricted investments to collateralize a standby letter of credit for this lease. The Company had $0.4 million and $0.4 million in restricted investments as collateral as of December 31, 2014 and 2013, respectively. Additionally, Lexicon leases certain equipment under operating leases. | ||||
Rent expense for all operating leases was approximately $1.0 million, $0.9 million and $2.2 million for the years ended December 31, 2014, 2013 and 2012, respectively. The following table includes non-cancelable, escalating future lease payments for the facility in New Jersey, without regard to the termination agreement entered into in March 2015: | ||||
For the Year Ending | ||||
31-Dec | ||||
(in thousands) | ||||
2015 | $ | 1,075 | ||
2016 | 1,101 | |||
2017 | 1,128 | |||
2018 | 572 | |||
Total | $ | 3,876 | ||
Employment Arrangements: Lexicon has entered into employment arrangements with certain of its corporate officers. Under the arrangements, each officer receives a base salary, subject to adjustment, with an annual discretionary bonus based upon specific objectives to be determined by the compensation committee. The employment arrangements are at-will and some contain non-competition agreements. The arrangements also provide for a termination clause, which requires either a six or 12-month payment based on the officer’s salary and, in some cases, payment of a specified portion of the officer’s bonus target for such year, in the event of termination. | ||||
Legal Proceedings: Lexicon is from time to time party to claims and legal proceedings that arise in the normal course of its business and that it believes will not have, individually or in the aggregate, a material adverse effect on its results of operations, financial condition or liquidity. |
Other_Capital_Stock_Agreements
Other Capital Stock Agreements | 12 Months Ended |
Dec. 31, 2014 | |
Other Capital Stock Agreements [Abstract] | |
Other Capital Stock Agreements | Other Capital Stock Agreements |
Common Stock: In October 2012, Lexicon sold 17,500,000 shares of its common stock at a price of $2.25 per share in a public offering, resulting in net proceeds of $37.1 million, after deducting underwriting discounts and commissions of $2.0 million and offering expenses of $0.2 million. Invus, L.P., Lexicon’s largest stockholder, purchased 3,000,000 of these shares. All of the net proceeds of this offering are reflected as issuance of common stock in the accompanying financial statements. | |
In November 2014, Lexicon sold 55,608,930 shares of its common stock at a price of $1.005 per share in a public offering, and sold 149,253,731 shares of its common stock at a price of $1.005 per share in a private placement to Artal International S.C.A, an affiliate of Invus, L.P., resulting in net proceeds of $201.9 million, after deducting underwriting discounts and commissions of $3.4 million and offering expenses of $0.6 million. All of the net proceeds of these offerings are reflected as issuance of common stock in the accompanying financial statements. |
Equity_Incentive_Awards
Equity Incentive Awards | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||
Equity Incentive Awards [Abstract] | ||||||||||||||||||||||
Equity Incentive Awards | Equity Incentive Awards | |||||||||||||||||||||
Equity Incentive Plans | ||||||||||||||||||||||
Equity Incentive Plan: In September 1995, Lexicon adopted the 1995 Stock Option Plan, which was subsequently amended and restated in February 2000 and renamed the 2000 Equity Incentive Plan, subsequently amended and restated in April 2009 and renamed the Equity Incentive Plan (the “Equity Incentive Plan”), and subsequently amended in April 2012. | ||||||||||||||||||||||
The Equity Incentive Plan provides for the grant of incentive stock options to employees and nonstatutory stock options to employees, directors and consultants of the Company. The plan also permits the grant of stock bonus awards, restricted stock awards, restricted stock unit (phantom stock) awards and stock appreciation rights. Incentive and nonstatutory stock options have an exercise price of 100% or more of the fair market value of our common stock on the date of grant. The purchase price of restricted stock awards may not be less than 85% of fair market value. However, the plan administrator may award stock bonus awards in consideration of past services or phantom stock awards without a purchase payment. Shares may be subject to a repurchase option in the discretion of the plan administrator. Most options granted under the Equity Incentive Plan become vested and exercisable over a period of four years; however some have been granted with different vesting schedules. Options granted under the Equity Incentive Plan have a term of ten years from the date of grant. | ||||||||||||||||||||||
The total number of shares of common stock that may be issued pursuant to stock awards under the Equity Incentive Plan shall not exceed in the aggregate 50,000,000 shares. No more than 15,000,000 shares may be issued pursuant to awards other than stock options and stock appreciation rights. As of December 31, 2014, an aggregate of 50,000,000 shares of common stock had been reserved for issuance, options to purchase 22,533,242 shares and 3,130,720 restricted stock units were outstanding, 5,881,815 shares had been issued upon the exercise of stock options, 3,224,339 shares had been issued pursuant to restricted stock units and 797,700 shares had been issued pursuant to stock bonus awards or restricted stock awards granted under the Equity Incentive Plan. | ||||||||||||||||||||||
Non-Employee Directors’ Equity Incentive Plan: In February 2000, Lexicon adopted the 2000 Non-Employee Directors’ Stock Option Plan, which was subsequently amended and restated in April 2009 and renamed the Non-Employee Directors’ Stock Option Plan, and subsequently amended in April 2012 and renamed the Non-Employee Directors’ Equity Incentive Plan (the “Directors’ Plan”). Under the Directors’ Plan, non-employee directors receive an initial option to purchase 30,000 shares of common stock. In addition, on the day following each of the Company’s annual meetings of stockholders, each non-employee director who has been a director for at least six months is automatically granted an option to purchase 20,000 shares of common stock and a restricted stock award of the number of shares of common stock having a fair market value on the date of grant of $20,000, rounded down to the nearest whole share number. Initial option grants become vested and exercisable over a period of five years and annual option grants become vested over a period of 12 months from the date of grant. Options granted under the Directors’ Plan have an exercise price equal to the fair market value of the Company’s common stock on the date of grant and a term of ten years from the date of grant. | ||||||||||||||||||||||
The total number of shares of common stock that may be issued pursuant to stock awards under the Directors’ Plan shall not exceed in the aggregate 1,500,000 shares. As of December 31, 2014, an aggregate of 1,500,000 shares of common stock had been reserved for issuance, options to purchase 1,070,000 shares were outstanding, none had been issued upon the exercise of stock options and 277,480 shares had been issued pursuant to restricted stock awards granted under the Directors’ Plan. | ||||||||||||||||||||||
Stock Option Activity: The following is a summary of option activity under Lexicon’s equity incentive plans: | ||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||
(in thousands, except exercise price data) | Options | Weighted Average Exercise Price | Options | Weighted Average Exercise Price | Options | Weighted Average Exercise Price | ||||||||||||||||
Outstanding at beginning of year | 23,306 | $ | 2.42 | 21,525 | $ | 2.51 | 20,476 | $ | 2.84 | |||||||||||||
Granted | 4,502 | 1.68 | 3,490 | 2.13 | 3,441 | 1.84 | ||||||||||||||||
Exercised | (223 | ) | 1.46 | (572 | ) | 1.75 | (636 | ) | 1.66 | |||||||||||||
Expired | (3,334 | ) | 3.54 | (950 | ) | 3.98 | (1,231 | ) | 6.93 | |||||||||||||
Forfeited | (648 | ) | 1.97 | (187 | ) | 1.94 | (525 | ) | 1.78 | |||||||||||||
Outstanding at end of year | 23,603 | 2.14 | 23,306 | 2.42 | 21,525 | 2.51 | ||||||||||||||||
Exercisable at end of year | 16,921 | $ | 2.27 | 17,378 | $ | 2.56 | 15,582 | $ | 2.77 | |||||||||||||
The weighted average estimated grant date fair value of options granted during the years ended December 31, 2014, 2013 and 2012 were $1.23, $1.59 and $1.37, respectively. The total intrinsic value of options exercised during the years ended December 31, 2014, 2013 and 2012 were $43,000, $325,000 and $462,000, respectively. The weighted average remaining contractual term of options outstanding and exercisable was 5.8 and 4.7 years, respectively, as of December 31, 2014. At December 31, 2014, the aggregate intrinsic value of the outstanding options and the exercisable options was zero and zero, respectively. | ||||||||||||||||||||||
Stock Bonus and Restricted Stock Unit Activity: | ||||||||||||||||||||||
During the years ended December 31, 2014, 2013 and 2012, Lexicon granted its non-employee directors 102,560, 80,808 and 94,112 shares, respectively, of restricted stock awards. The restricted stock awards had weighed average grant date fair values of $1.56, $1.98 and $1.70 per share, respectively, and vested immediately. During the year ended December 31, 2014, Lexicon granted a consultant 57,400 shares of restricted stock awards. The restricted stock awards had a weighted average grant date fair value of $1.60 per share and vested immediately. | ||||||||||||||||||||||
During the years ended December 31, 2014, 2013 and 2012, Lexicon granted its employees restricted stock units in lieu of or in addition to annual stock option awards. These restricted stock units vest in four annual installments. The following is a summary of restricted stock units activity under Lexicon’s stock-based compensation plans for the year ended December 31, 2014: | ||||||||||||||||||||||
Shares | Weighted Average Grant Date Fair Value | |||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||
Outstanding at December 31, 2013 | 4,242 | $ | 1.93 | |||||||||||||||||||
Granted | 1,604 | 1.72 | ||||||||||||||||||||
Vested | (1,384 | ) | 1.9 | |||||||||||||||||||
Forfeited | (1,331 | ) | 1.92 | |||||||||||||||||||
Nonvested at December 31, 2014 | 3,131 | $ | 1.84 | |||||||||||||||||||
Aggregate Shares Reserved for Issuance | ||||||||||||||||||||||
As of December 31, 2014, an aggregate of 26,733,962 shares of common stock were reserved for issuance upon exercise of outstanding stock options and vesting of outstanding restricted stock units and 14,584,704 additional shares were available for future grants under Lexicon’s equity incentive plans. The Company has a policy of using either authorized and unissued shares or treasury shares, including shares acquired by purchase in the open market or in private transactions, to satisfy equity award exercises. |
Benefit_Plan
Benefit Plan | 12 Months Ended |
Dec. 31, 2014 | |
Benefit Plan [Abstract] | |
Benefit Plan | Benefit Plan |
Lexicon maintains a defined-contribution savings plan under Section 401(k) of the Internal Revenue Code. The plan covers substantially all full-time employees. Participating employees may defer a portion of their pretax earnings, up to the Internal Revenue Service annual contribution limit. Beginning in 2000, the Company was required to match employee contributions according to a specified formula. The matching contributions totaled $376,000, $511,000 and $490,000 in the years ended December 31, 2014, 2013 and 2012, respectively. Company contributions are vested based on the employee’s years of service, with full vesting after four years of service. |
Collaboration_and_License_Agre
Collaboration and License Agreements | 12 Months Ended |
Dec. 31, 2014 | |
Collaboration and License Agreements [Abstract] | |
Collaboration and License Agreements | Collaboration and License Agreements |
Lexicon has derived substantially all of its revenues from drug discovery and development alliances, target validation collaborations for the development and, in some cases, analysis of the physiological effects of genes altered in knockout mice, government grants and contracts, technology licenses, subscriptions to its databases and compound library sales. | |
Ipsen Pharma SAS. In October 2014, Lexicon entered into a License and Collaboration Agreement (the “Agreement”)with Ipsen Pharma SAS (“Ipsen”) for the development and commercialization of Lexicon’s drug candidate telotristat etiprate (LX1032) outside of the United States, Canada and Japan (the “Licensed Territory”). | |
Under the Agreement, Lexicon granted Ipsen an exclusive, royalty-bearing right and license under its patent rights and know-how to commercialize telotristat etiprate in the Licensed Territory. Ipsen is responsible for using diligent efforts to commercialize telotristat etiprate in the Licensed Territory pursuant to a mutually approved commercialization plan. Subject to certain exceptions, Lexicon will be responsible for conducting clinical trials required to obtain regulatory approval for telotristat etiprate for carcinoid syndrome in the European Union, including those contemplated by a mutually approved initial development plan, and will have the first right to conduct most other clinical trials of telotristat etiprate. Lexicon is responsible for the costs of all clinical trials contemplated by the initial development plan. The costs of additional clinical trials will be allocated between the parties based on the nature of such clinical trials. Under the Agreement, Ipsen paid Lexicon an upfront payment of $23 million. In addition, Lexicon is eligible to receive from Ipsen (a) up to an aggregate of approximately $30 million upon the achievement of specified regulatory and commercial launch milestones and (b) up to an aggregate of €72 million upon the achievement of specified sales milestones. Due to the uncertainty surrounding the achievement of the future regulatory and sales milestones, these payments will not be recognized as revenue unless and until they are earned as the Company is not able to reasonably predict if and when the milestones will be achieved. Lexicon is also entitled to tiered, escalating royalties ranging from low twenties to mid-thirties percentages of net sales of telotristat etiprate in the Licensed Territory, subject to a credit for amounts previously paid to Lexicon by Ipsen for the manufacture and supply of such units of telotristat etiprate. Lexicon’s receipt of these payments under the Agreement triggers its obligation to make certain contingent payments to Holdings (see Note 11, Arrangements with Symphony Icon, Inc.). Lexicon and Ipsen will enter into a commercial supply agreement pursuant to which Lexicon will supply Ipsen’s commercial requirements of telotristat etiprate, and Ipsen will pay an agreed upon transfer price for such commercial supply. | |
The Company considered the following deliverables with respect to the revenue recognition of the $23 million upfront payment: | |
•The exclusive license granted to Ipsen to develop and commercialize telotristat etiprate in the Licensed | |
Territory; | |
•The development services Lexicon is performing for telotristat etiprate; | |
•The obligation to participate in committees which govern the development of telotristat | |
etiprate until commercialization; and | |
•The obligation to supply commercial supply of telotristat etiprate, under a commercial supply agreement. | |
The Company determined that the license had stand-alone value because it is an exclusive license that gives Ipsen the right to develop and commercialize telotristat etiprate or to sublicense its rights. In addition, telotristat etiprate is currently in development and it is possible that Ipsen or another third party could conduct clinical trials without assistance from Lexicon. As a result, the Company considers the license and the development services under the Agreement to be separate units of accounting. The Company recognized the portion of the consideration allocated to the license immediately because Lexicon delivered the license and earned the revenue at the inception of the arrangement. The Company is recognizing as revenue the amount allocated to the development services and the obligation to participate in committees over the period of time Lexicon performs services, currently expected to be through mid-2017. | |
Due to the inherent uncertainty in obtaining regulatory approval, the applicability of the commercial supply agreement is outside the control of Lexicon and Ipsen. Accordingly, the Company has determined the commercial supply agreement is a contingent deliverable at the onset of the Agreement. As a result, the Company has determined the commercial supply agreement does not meet the definition of a deliverable that needs to be accounted for at the inception of the arrangement. The Company has also determined that there is no significant and incremental discount related to the commercial supply agreement that should be accounted for at the inception of the arrangement. | |
The Company determined that the initial allocable arrangement consideration was the $23 million upfront payment because it was the only payment that was fixed and determinable at the inception of the arrangement. There was considerable uncertainty at the date of the agreement as to whether Lexicon would earn milestone payments, royalty payments or payments for finished drug product. As such, the Company did not include those payments in the allocable consideration. The Company allocated the allocable consideration based on the relative best estimate of selling price of each unit of accounting. The Company estimated the selling price of the license deliverable by applying a probability-based income approach utilizing an appropriate discount rate. The significant inputs the Company used to determine the projected income of the license included: estimated future product sales, estimated cost of goods sold, estimated operating expenses, income taxes, and an appropriate discount rate. The Company estimated the selling price of the development services by using internal estimates of the cost to hire third parties to perform the services over the expected period to perform the development. The Company estimated the selling price of the obligation to participate in committees by using internal estimates of the number of internal hours and salary and benefits costs to perform these services. | |
As a result of the allocation, the Company recognized $21.2 million of the $23 million upfront payment for the license in 2014. The Company is recognizing the $1.6 million allocated to the development services deliverable over the estimated period of performance as development occurs, and is recognizing the $0.1 million allocated to the committee participation deliverable ratably over the estimated period of performance. Revenue recognized under the Agreement was $21.4 million for the year ended December 31, 2014. | |
Texas Institute for Genomic Medicine. In July 2005, Lexicon received a $35.0 million award from the Texas Enterprise Fund for the creation of a knockout mouse embryonic stem cell library containing 350,000 cell lines for the Texas Institute for Genomic Medicine (“TIGM”) using Lexicon’s proprietary gene trapping technology, which Lexicon completed in 2007. Lexicon also equipped TIGM with the bioinformatics software required for the management and analysis of data relating to the library. The Texas Enterprise Fund also awarded $15.0 million to the Texas A&M University System for the creation of facilities and infrastructure to house the library. | |
Under the terms of the award, Lexicon is responsible for the creation of a specified number of jobs beginning in 2012, reaching an aggregate of 1,616 new jobs in Texas by December 31, 2016. Lexicon will obtain credits based on funding received by TIGM and certain related parties from sources other than the State of Texas that it may offset against its potential liability for any job creation shortfalls. Lexicon will also obtain credits against future jobs commitment liabilities for any surplus jobs it creates. Subject to these credits, if Lexicon fails to create the specified number of jobs, the state may require Lexicon to repay $2,415 for each job Lexicon falls short beginning in 2013. Lexicon’s maximum aggregate exposure for such payments, if Lexicon fails to create any new jobs, is approximately $14.2 million, including $2.5 million through 2015, without giving effect to any credits to which Lexicon may be entitled. Lexicon has recorded this obligation as deferred revenue and accounts payable in the accompanying consolidated balance sheets. The Texas A&M University System, together with TIGM, has independent job creation obligations and is obligated for an additional period to maintain an aggregate of 5,000 jobs, inclusive of those Lexicon creates. |
Restructuring_Charges
Restructuring Charges | 12 Months Ended |
Dec. 31, 2014 | |
Restructuring Charges [Abstract] | |
Restructuring and Related Activities Disclosure [Text Block] | Restructuring Charges |
In January 2014, Lexicon’s board of directors committed to narrow its strategic initiatives and focus resources on its late-stage drug development programs, principally sotagliflozin (LX4211) for diabetes and telotristat etiprate (LX1032) for carcinoid syndrome, in preparation for the transition to commercialization. The decision resulted in a workforce reduction of approximately 125 employees, primarily in research, discovery and support positions, representing approximately 50% of the Company’s total workforce. The Company completed the majority of the workforce reduction by the end of the second quarter of 2014. | |
The Company currently expects that the total charges associated with the restructuring which will result in cash expenditures will be approximately $5.7 million (which includes charges for severance of approximately $5.3 million and other restructuring costs of approximately $0.4 million), of which $5.6 million was incurred through December 31, 2014. Of this charge, $4.9 million was recorded in research and development expense and $0.7 million was recorded in general and administrative expense in the accompanying consolidated statement of comprehensive loss for the year ended December 31, 2014. In addition, the Company recorded stock-based compensation expense on the acceleration of vesting relating to the restructuring of $0.1 million in the year ended December 31, 2014. Future payments of restructuring charges, which have been recorded in accrued liabilities in the accompanying consolidated balance sheet, were $0.3 million as of December 31, 2014. |
Selected_Quarterly_Financial_D
Selected Quarterly Financial Data | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Selected Quarterly Financial Data [Abstract] | ||||||||||||||||
Selected Quarterly Financial Data | Selected Quarterly Financial Data | |||||||||||||||
The table below sets forth certain unaudited statements of comprehensive loss data, and net loss per common share data, for each quarter of 2014 and 2013: | ||||||||||||||||
(in thousands, except per share data) | ||||||||||||||||
Quarter Ended | ||||||||||||||||
31-Mar | 30-Jun | 30-Sep | 31-Dec | |||||||||||||
(Unaudited) | ||||||||||||||||
2014 | ||||||||||||||||
Revenues | $ | 277 | $ | 676 | $ | 419 | $ | 21,482 | ||||||||
Loss from operations | $ | (30,472 | ) | $ | (26,111 | ) | $ | (40,336 | ) | $ | (3,447 | ) | ||||
Consolidated net loss | $ | (30,835 | ) | $ | (26,028 | ) | $ | (40,498 | ) | $ | (2,933 | ) | ||||
Consolidated net loss per common share, basic and diluted | $ | (0.06 | ) | $ | (0.05 | ) | $ | (0.08 | ) | $ | — | |||||
Shares used in computing consolidated net loss per common share | 513,955 | 514,623 | 514,796 | 593,694 | ||||||||||||
2013 | ||||||||||||||||
Revenues | $ | 360 | $ | 214 | $ | 238 | $ | 1,410 | ||||||||
Loss from operations | $ | (25,555 | ) | $ | (28,624 | ) | $ | (31,216 | ) | $ | (16,976 | ) | ||||
Consolidated net loss | $ | (25,974 | ) | $ | (29,080 | ) | $ | (31,658 | ) | $ | (17,414 | ) | ||||
Consolidated net loss per common share, basic and diluted | $ | (0.05 | ) | $ | (0.06 | ) | $ | (0.06 | ) | $ | (0.03 | ) | ||||
Shares used in computing consolidated net loss per common share | 512,428 | 513,083 | 513,419 | 513,523 | ||||||||||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |
Dec. 31, 2014 | ||
Basis of Presentation [Abstract] | ||
Consolidation, Policy | Basis of Presentation: The accompanying consolidated financial statements include the accounts of Lexicon and its wholly-owned subsidiaries. Intercompany transactions and balances are eliminated in consolidation. | |
Use of Estimates, Policy | Use of Estimates: The preparation of financial statements in conformity with U. S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. Actual results could differ from those estimates. | |
Cash and Cash Equivalents, Policy | Cash, Cash Equivalents and Short-Term Investments: Lexicon considers all highly-liquid investments with original maturities of three months or less to be cash equivalents. As of December 31, 2014 and 2013, short-term investments consist of U.S. treasury bills and certificates of deposit. The certificates of deposits are classified as available-for-sale securities and are carried at fair value, based on quoted market prices of the securities. The Company views its available-for-sale securities as available for use in current operations regardless of the stated maturity date of the security. Unrealized gains and losses on such securities are reported as a separate component of stockholders’ equity. Net realized gains and losses, interest and dividends are included in interest income. The cost of securities sold is based on the specific identification method. | |
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy | Restricted Cash and Investments: Lexicon is required to maintain restricted cash or investments to collateralize standby letters of credit for the lease on its office and laboratory facilities in Hopewell, New Jersey (see Note 12). | |
Trade and Other Accounts Receivable, Policy | Accounts Receivable: Lexicon records trade accounts receivable in the normal course of business related to the sale of products or services. The allowance for doubtful accounts takes into consideration such factors as historical write-offs, the economic climate and other factors that could affect collectibility. Write-offs are evaluated on a case by case basis. | |
Concentration Risk Disclosure | Concentration of Credit Risk: Lexicon’s cash equivalents, investments and accounts receivable represent potential concentrations of credit risk. The Company attempts to minimize potential concentrations of risk in cash equivalents and investments by placing investments in high-quality financial instruments. The Company’s accounts receivable are unsecured and are concentrated in pharmaceutical and biotechnology companies located in the United States. The Company has not experienced any significant credit losses to date. | |
Segment Reporting Disclosure | Segment Information and Significant Customers: Lexicon operates in one business segment, which primarily focuses on the discovery of the functions and pharmaceutical utility of genes and the use of those gene function discoveries in the discovery and development of pharmaceutical products for the treatment of human disease. Substantially all of the Company’s revenues have been derived from drug discovery alliances, target validation collaborations for the development and, in some cases, analysis of the physiological effects of genes altered in knockout mice, technology licenses, subscriptions to its databases, government grants and contracts and compound library sales. | |
Property, Plant and Equipment, Policy | Property and Equipment: Property and equipment are carried at cost and depreciated using the straight-line method over the estimated useful life of the assets which ranges from three to 40 years. Maintenance, repairs and minor replacements are charged to expense as incurred. Leasehold improvements are amortized over the shorter of the estimated useful life or the remaining lease term. Significant renewals and betterments are capitalized. | |
Impairment or Disposal of Long-Lived Assets, Policy | Impairment of Long-Lived Assets: Long-lived assets and certain identifiable intangible assets to be held and used are reviewed for impairment when events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Indefinite lived intangible assets are also tested at least annually for impairment. Determination of recoverability is based on an estimate of undiscounted future cash flows resulting from the use of the asset and its eventual disposition. In the event that such cash flows are not expected to be sufficient to recover the carrying amount of the assets, the assets are written down to their estimated fair values. | |
Goodwill and Intangible Assets, Policy | Goodwill Impairment: Goodwill is not amortized, but is tested at least annually for impairment at the reporting unit level. The Company has determined that the reporting unit is the single operating segment disclosed in its current financial statements. Impairment is the condition that exists when the carrying amount of goodwill exceeds its implied fair value. The first step in the impairment process is to determine the fair value of the reporting unit and then compare it to the carrying value, including goodwill. If the fair value exceeds the carrying value, no further action is required and no impairment loss is recognized. Additional impairment assessments may be performed on an interim basis if the Company encounters events or changes in circumstances that would indicate that, more likely than not, the carrying value of goodwill has been impaired. | |
Revenue Recognition, Policy | Revenue Recognition: Revenues are recognized when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the price is fixed or determinable and collectibility is reasonably assured. | |
Collaborative agreements revenues include both license revenue and contract research revenue. Activities under collaborative agreements are evaluated to determine if they represent a multiple element revenue agreement. The Company identifies the deliverables included within the agreement and evaluates which deliverables represent separate units of accounting. The Company accounts for those components as separate units of accounting if the following two criteria are met: | ||
• | The delivered item or items have value to the customer on a stand-alone basis. | |
• | If there is a general right of return relative to the delivered items, delivery or performance of the undelivered items is considered probable and within the Company’s control. | |
Factors considered in this determination include, among other things, whether any other vendors sell the items separately and if the licensee could use the delivered item for its intended purpose without the receipt of the remaining deliverables. If multiple deliverables included in an arrangement are separable into different units of accounting, the Company allocates the arrangement consideration to those units of accounting. The amount of allocable arrangement consideration is limited to amounts that are fixed or determinable. Arrangement consideration is allocated at the inception of the arrangement to the identified units of accounting based on their relative estimated selling price. Revenue is recognized for each unit of accounting when the appropriate revenue recognition criteria are met. | ||
Future milestone payments that are contingent upon the achievement of a substantive milestone are recognized in their entirety in the period in which the milestone is achieved. A milestone is substantive if: | ||
• | It can only be achieved based in whole or in part on either the Company’s performance or on the occurrence of a specific outcome resulting from the Company’s performance; | |
• | There is substantive uncertainty at the date an arrangement is entered into that the event will be achieved; and | |
• | It would result in additional payments being due to the Company. | |
Subscription and license fees are recognized as revenue upon the grant of the technology license when performance is complete and there is no continuing involvement. Royalty revenues are recognized as earned in accordance with the contract terms at the time the royalty amount is fixed and determinable based on information received from the sublicensees and at the time collectibility is reasonably assured. | ||
Research and Development Expense, Policy | Research and Development Expenses: Research and development expenses consist of costs incurred for company-sponsored as well as collaborative research and development activities. These costs include direct and research-related overhead expenses and are expensed as incurred. Technology license fees for technologies that are utilized in research and development and have no alternative future use are expensed when incurred. Substantial portions of the Company’s preclinical and clinical trials are performed by third-party laboratories, medical centers, contract research organizations and other vendors. For preclinical studies, the Company accrues expenses based upon estimated percentage of work completed and the contract milestones remaining. For clinical studies, expenses are accrued based upon the number of patients enrolled and the duration of the study. The Company monitors patient enrollment, the progress of clinical studies and related activities to the extent possible through internal reviews of data reported to the Company by the vendors and clinical site visits. The Company’s estimates depend on the timeliness and accuracy of the data provided by the vendors regarding the status of each program and total program spending. The Company periodically evaluates the estimates to determine if adjustments are necessary or appropriate based on information it receives. | |
Share-based Compensation, Option and Incentive Plans Policy | Stock-Based Compensation: The Company recognizes compensation expense in its statements of comprehensive loss for share-based payments, including stock options and restricted stock units issued to employees, based on their fair values on the date of the grant, with the compensation expense recognized over the period in which an employee is required to provide service in exchange for the stock award. Stock-based compensation expense for awards without performance conditions is recognized on a straight-line basis. Stock-based compensation expense for awards with performance conditions is recognized over the period from the date the performance condition is determined to be probable of occurring through the time the applicable condition is met. As of December 31, 2014, stock-based compensation cost for all outstanding unvested options and restricted stock units was $10.4 million, which is expected to be recognized over a weighted-average period of 1.3 years. | |
The fair value of stock options is estimated at the date of grant using the Black-Scholes method. The Black-Scholes option-pricing model requires the input of subjective assumptions. Because the Company’s employee stock options have characteristics significantly different from those of traded options, and because changes in the subjective input assumptions can materially affect the fair value estimate, in management’s opinion, the existing models do not necessarily provide a reliable single measure of the fair value of its employee stock options. For purposes of determining the fair value of stock options, the Company segregates its options into two homogeneous groups, based on exercise and post-vesting employment termination behaviors, resulting in a change in the assumptions used for expected option lives and forfeitures. Expected volatility is based on the historical volatility in the Company’s stock price. | ||
Earnings Per Share, Policy | Net Loss per Common Share: Net loss per common share is computed using the weighted average number of shares of common stock outstanding. Shares associated with convertible debt, stock options, restricted stock units and warrants are not included because they are antidilutive. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Share-based Compensation [Abstract] | |||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | |||||||||
Expected Volatility | Risk-free Interest Rate | Expected Term | Dividend | ||||||
Rate | |||||||||
December 31, 2014: | |||||||||
Employees | 66% | 1.20% | 4 | 0 | % | ||||
Officers and non-employee directors | 80% | 2.30% | 8 | 0 | % | ||||
December 31, 2013: | |||||||||
Employees | 85% | 0.90% | 5 | 0 | % | ||||
Officers and non-employee directors | 81% | 1.60% | 8 | 0 | % | ||||
December 31, 2012: | |||||||||
Employees | 93% | 0.80% | 5 | 0 | % | ||||
Officers and non-employee directors | 81% | 1.50% | 8 | 0 | % |
Cash_and_Cash_Equivalents_and_1
Cash and Cash Equivalents and Investments (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Cash and Cash Equivalents and Investments [Abstract] | ||||||||||||||||
Schedule of Cash, Cash Equivalents and Short-term Investments | ||||||||||||||||
As of December 31, 2014 | ||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | |||||||||||||
(in thousands) | ||||||||||||||||
Cash and cash equivalents | $ | 137,266 | $ | — | $ | — | $ | 137,266 | ||||||||
Securities maturing within one year: | ||||||||||||||||
Certificates of deposit | 552 | — | — | 552 | ||||||||||||
U.S. treasury securities | 201,584 | 3 | (66 | ) | 201,521 | |||||||||||
Total short-term investments | $ | 202,136 | $ | 3 | $ | (66 | ) | $ | 202,073 | |||||||
Total cash and cash equivalents and investments | $ | 339,402 | $ | 3 | $ | (66 | ) | $ | 339,339 | |||||||
As of December 31, 2013 | ||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | |||||||||||||
(in thousands) | ||||||||||||||||
Cash and cash equivalents | $ | 37,499 | $ | — | $ | — | $ | 37,499 | ||||||||
Securities maturing within one year: | ||||||||||||||||
Certificates of deposit | 552 | — | — | 552 | ||||||||||||
U.S. treasury securities | 91,075 | 3 | (1 | ) | 91,077 | |||||||||||
Total short-term investments | $ | 91,627 | $ | 3 | $ | (1 | ) | $ | 91,629 | |||||||
Total cash and cash equivalents and investments | $ | 129,126 | $ | 3 | $ | (1 | ) | $ | 129,128 | |||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Fair Value Measurements [Abstract] | ||||||||||||||||
Fair Value, by Balance Sheet Grouping | ||||||||||||||||
Assets and Liabilities at Fair Value | ||||||||||||||||
As of December 31, 2014 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
(in thousands) | ||||||||||||||||
Assets | ||||||||||||||||
Cash and cash equivalents | $ | 137,266 | $ | — | $ | — | $ | 137,266 | ||||||||
Short-term investments | 201,521 | 552 | — | 202,073 | ||||||||||||
Total cash and cash equivalents and investments | $ | 338,787 | $ | 552 | $ | — | $ | 339,339 | ||||||||
Liabilities | ||||||||||||||||
Other long-term liabilities | $ | — | $ | — | $ | 17,638 | $ | 17,638 | ||||||||
Total liabilities | $ | — | $ | — | $ | 17,638 | $ | 17,638 | ||||||||
Assets and Liabilities at Fair Value | ||||||||||||||||
As of December 31, 2013 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
(in thousands) | ||||||||||||||||
Assets | ||||||||||||||||
Cash and cash equivalents | $ | 37,499 | $ | — | $ | — | $ | 37,499 | ||||||||
Short-term investments | 91,077 | 552 | — | 91,629 | ||||||||||||
Total cash and cash equivalents and investments | $ | 128,576 | $ | 552 | $ | — | $ | 129,128 | ||||||||
Liabilities | ||||||||||||||||
Other long-term liabilities | $ | — | $ | — | $ | 27,710 | $ | 27,710 | ||||||||
Total liabilities | $ | — | $ | — | $ | 27,710 | $ | 27,710 | ||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | ||||||||||||||||
Other Long-term Liabilities | ||||||||||||||||
(in thousands) | ||||||||||||||||
Balance at December 31, 2011 | $ | 55,033 | ||||||||||||||
Change in valuation of purchase consideration payable to former Symphony Icon stockholders | 9,887 | |||||||||||||||
Payment of base payment obligation with common stock | (35,000 | ) | ||||||||||||||
Balance at December 31, 2012 | 29,920 | |||||||||||||||
Change in valuation of purchase consideration payable to former Symphony Icon stockholders | (2,210 | ) | ||||||||||||||
Balance at December 31, 2013 | 27,710 | |||||||||||||||
Change in valuation of purchase consideration payable to former Symphony Icon stockholders | 1,428 | |||||||||||||||
Payment of contingent payment obligation with common stock and cash | (11,500 | ) | ||||||||||||||
Balance at December 31, 2014 | $ | 17,638 | ||||||||||||||
Property_and_Equipment_Tables
Property and Equipment (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Property and Equipment [Abstract] | |||||||||||||
Property, Plant and Equipment | |||||||||||||
Estimated Useful Lives | As of December 31, | ||||||||||||
In Years | 2014 | 2013 | |||||||||||
(in thousands) | |||||||||||||
Computers and software | 5-Mar | $ | 9,468 | $ | 11,180 | ||||||||
Furniture and fixtures | 7-May | 7,032 | 7,315 | ||||||||||
Laboratory equipment | 7-Mar | 12,737 | 34,952 | ||||||||||
Leasehold improvements | 10-Jul | 8,117 | 8,092 | ||||||||||
Buildings | 15-40 | — | 59,104 | ||||||||||
Land | — | — | 2,664 | ||||||||||
Total property and equipment | 37,354 | 123,307 | |||||||||||
Less: Accumulated depreciation and amortization | (36,274 | ) | (81,945 | ) | |||||||||
Net property and equipment | $ | 1,080 | $ | 41,362 | |||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Income Taxes [Abstract] | ||||||||
Schedule of Deferred Tax Assets and Liabilities | ||||||||
As of December 31, | ||||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
Deferred tax assets: | ||||||||
Net operating loss carryforwards | $ | 255,518 | $ | 238,608 | ||||
Research and development tax credits | 40,173 | 37,453 | ||||||
Capitalized research and development | 95,946 | 83,375 | ||||||
Stock-based compensation | 7,648 | 7,703 | ||||||
Deferred revenue | 4,457 | 4,760 | ||||||
Other | 8,681 | 4,712 | ||||||
Total deferred tax assets | 412,423 | 376,611 | ||||||
Deferred tax liabilities: | ||||||||
Deferred tax liability related to acquisition of Symphony Icon | (18,675 | ) | (18,745 | ) | ||||
Total deferred tax liabilities | (18,675 | ) | (18,745 | ) | ||||
Less: valuation allowance | (412,423 | ) | (376,611 | ) | ||||
Net deferred tax liabilities | $ | (18,675 | ) | $ | (18,745 | ) |
Debt_Obligations_Tables
Debt Obligations (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Debt Instrument | ||||
Schedule of Maturities of Long-term Debt | ||||
For the Year Ending | ||||
31-Dec | ||||
(in thousands) | ||||
2015 | $ | 1,859 | ||
2016 | 2,015 | |||
2017 | 16,293 | |||
2018 | — | |||
2019 | — | |||
Thereafter | 87,500 | |||
Total debt | 107,667 | |||
Less current portion | (20,167 | ) | ||
Total long-term debt | $ | 87,500 | ||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Commitments and Contingencies [Abstract] | ||||
Schedule of Future Minimum Rental Payments for Operating Leases | ||||
For the Year Ending | ||||
31-Dec | ||||
(in thousands) | ||||
2015 | $ | 1,075 | ||
2016 | 1,101 | |||
2017 | 1,128 | |||
2018 | 572 | |||
Total | $ | 3,876 | ||
Equity_Incentive_Awards_Tables
Equity Incentive Awards (Tables) | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||
Equity Incentive Awards [Abstract] | ||||||||||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity | ||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||
(in thousands, except exercise price data) | Options | Weighted Average Exercise Price | Options | Weighted Average Exercise Price | Options | Weighted Average Exercise Price | ||||||||||||||||
Outstanding at beginning of year | 23,306 | $ | 2.42 | 21,525 | $ | 2.51 | 20,476 | $ | 2.84 | |||||||||||||
Granted | 4,502 | 1.68 | 3,490 | 2.13 | 3,441 | 1.84 | ||||||||||||||||
Exercised | (223 | ) | 1.46 | (572 | ) | 1.75 | (636 | ) | 1.66 | |||||||||||||
Expired | (3,334 | ) | 3.54 | (950 | ) | 3.98 | (1,231 | ) | 6.93 | |||||||||||||
Forfeited | (648 | ) | 1.97 | (187 | ) | 1.94 | (525 | ) | 1.78 | |||||||||||||
Outstanding at end of year | 23,603 | 2.14 | 23,306 | 2.42 | 21,525 | 2.51 | ||||||||||||||||
Exercisable at end of year | 16,921 | $ | 2.27 | 17,378 | $ | 2.56 | 15,582 | $ | 2.77 | |||||||||||||
Schedule of Nonvested Restricted Stock Units Activity | ||||||||||||||||||||||
Shares | Weighted Average Grant Date Fair Value | |||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||
Outstanding at December 31, 2013 | 4,242 | $ | 1.93 | |||||||||||||||||||
Granted | 1,604 | 1.72 | ||||||||||||||||||||
Vested | (1,384 | ) | 1.9 | |||||||||||||||||||
Forfeited | (1,331 | ) | 1.92 | |||||||||||||||||||
Nonvested at December 31, 2014 | 3,131 | $ | 1.84 | |||||||||||||||||||
Selected_Quarterly_Financial_D1
Selected Quarterly Financial Data (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Selected Quarterly Financial Data [Abstract] | ||||||||||||||||
Selected Quarterly Financial Data | Selected Quarterly Financial Data | |||||||||||||||
The table below sets forth certain unaudited statements of comprehensive loss data, and net loss per common share data, for each quarter of 2014 and 2013: | ||||||||||||||||
(in thousands, except per share data) | ||||||||||||||||
Quarter Ended | ||||||||||||||||
31-Mar | 30-Jun | 30-Sep | 31-Dec | |||||||||||||
(Unaudited) | ||||||||||||||||
2014 | ||||||||||||||||
Revenues | $ | 277 | $ | 676 | $ | 419 | $ | 21,482 | ||||||||
Loss from operations | $ | (30,472 | ) | $ | (26,111 | ) | $ | (40,336 | ) | $ | (3,447 | ) | ||||
Consolidated net loss | $ | (30,835 | ) | $ | (26,028 | ) | $ | (40,498 | ) | $ | (2,933 | ) | ||||
Consolidated net loss per common share, basic and diluted | $ | (0.06 | ) | $ | (0.05 | ) | $ | (0.08 | ) | $ | — | |||||
Shares used in computing consolidated net loss per common share | 513,955 | 514,623 | 514,796 | 593,694 | ||||||||||||
2013 | ||||||||||||||||
Revenues | $ | 360 | $ | 214 | $ | 238 | $ | 1,410 | ||||||||
Loss from operations | $ | (25,555 | ) | $ | (28,624 | ) | $ | (31,216 | ) | $ | (16,976 | ) | ||||
Consolidated net loss | $ | (25,974 | ) | $ | (29,080 | ) | $ | (31,658 | ) | $ | (17,414 | ) | ||||
Consolidated net loss per common share, basic and diluted | $ | (0.05 | ) | $ | (0.06 | ) | $ | (0.06 | ) | $ | (0.03 | ) | ||||
Shares used in computing consolidated net loss per common share | 512,428 | 513,083 | 513,419 | 513,523 | ||||||||||||
Summary_of_Significant_Account3
Summary of Significant Accounting Policies Restricted Cash and Investments (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Restricted Cash and Cash Equivalents Items | ||
Restricted investments | $430 | $430 |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies Concentration of Credit Risk (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Concentration Risk | |||
Disclosure On Geographic Areas Revenue From External Customers Attributed to France | 94.00% | ||
Disclosure on Geographic Areas, Revenue from External Customers Attributed to Entity's Country of Domicile, Percent | 6.00% | 100.00% | 100.00% |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies Segment Information and Signficant Customers (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Revenue, Major Customer | |||
Entity Wide Revenue Ipsen Percentage | 94.00% | ||
Entity-Wide Revenue, McNair Medical Institute, Percentage | 57.00% | ||
Entity-Wide Revenue, Taconic Farms, Percentage | 33.00% | 68.00% | |
Entity-Wide Revenue, Deltagen, Percentage | 25.00% |
Summary_of_Significant_Account6
Summary of Significant Accounting Policies Stock-Based Compensation (Details 1) (Stock Option) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected VolatilityRate, Employees | 66.00% | 85.00% | 93.00% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate, Employee | 1.20% | 0.90% | 0.80% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term, Employees | 4 years | 5 years | 5 years |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate, Employees | 0.00% | 0.00% | 0.00% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate, Officers and Non-employee Directors | 80.00% | 81.00% | 81.00% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate, Officers and Non-employee Directors | 2.30% | 1.60% | 1.50% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term, Officers and Non-employee Directors | 8 years | 8 years | 8 years |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate, Officers and Non-employee Directors | 0.00% | 0.00% | 0.00% |
Summary_of_Significant_Account7
Summary of Significant Accounting Policies Stock-based Compensation (Details 2) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | $10.40 |
Employee Service Share-based Compensation, Outstanding, Weighted Average Remaining Vesting Period | 1 year 4 months |
Cash_and_Cash_Equivalents_and_2
Cash and Cash Equivalents and Investments (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash and Cash Equivalents | |||
Realized Investment Gains (Losses) | $0 | $0 | $0 |
Cash | |||
Cash and Cash Equivalents | |||
Available-for-sale Securities, Amortized Cost Basis | 137,266 | 37,499 | |
Available-for-sale Securities, Gross Unrealized Gain Accumulated in Investments | 0 | 0 | |
Available-for-sale Securities, Gross Unrealized Losses | 0 | 0 | |
Available-for-sale Securities, Current | 137,266 | 37,499 | |
Certificates of Deposit | |||
Cash and Cash Equivalents | |||
Available-for-sale Securities, Amortized Cost Basis | 552 | 552 | |
Available-for-sale Securities, Gross Unrealized Gain Accumulated in Investments | 0 | 0 | |
Available-for-sale Securities, Gross Unrealized Losses | 0 | 0 | |
Available-for-sale Securities, Current | 552 | 552 | |
US Treasury Securities | |||
Cash and Cash Equivalents | |||
Available-for-sale Securities, Amortized Cost Basis | 201,584 | 91,075 | |
Available-for-sale Securities, Gross Unrealized Gain Accumulated in Investments | 3 | 3 | |
Available-for-sale Securities, Gross Unrealized Losses | -66 | -1 | |
Available-for-sale Securities, Current | 201,521 | 91,077 | |
Short-term Investments | |||
Cash and Cash Equivalents | |||
Available-for-sale Securities, Amortized Cost Basis | 202,136 | 91,627 | |
Available-for-sale Securities, Gross Unrealized Gain Accumulated in Investments | 3 | 3 | |
Available-for-sale Securities, Gross Unrealized Losses | -66 | -1 | |
Available-for-sale Securities, Current | 202,073 | 91,629 | |
Cash and Cash Equivalents and Investments | |||
Cash and Cash Equivalents | |||
Available-for-sale Securities, Amortized Cost Basis | 339,402 | 129,126 | |
Available-for-sale Securities, Gross Unrealized Gain Accumulated in Investments | 3 | 3 | |
Available-for-sale Securities, Gross Unrealized Losses | -66 | -1 | |
Available-for-sale Securities, Current | $339,339 | $129,128 |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details 1) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Cash and Cash Equivalents, Fair Value Disclosure | $137,266 | $37,499 |
Available-for-sale Securities, Fair Value Disclosure | 201,521 | 91,077 |
Investments, Fair Value Disclosure | 338,787 | 128,576 |
Other Liabilities, Fair Value Disclosure | 0 | 0 |
Liabilities, Fair Value Disclosure | 0 | 0 |
Fair Value, Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Cash and Cash Equivalents, Fair Value Disclosure | 0 | 0 |
Available-for-sale Securities, Fair Value Disclosure | 552 | 552 |
Investments, Fair Value Disclosure | 552 | 552 |
Other Liabilities, Fair Value Disclosure | 0 | 0 |
Liabilities, Fair Value Disclosure | 0 | 0 |
Fair Value, Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Cash and Cash Equivalents, Fair Value Disclosure | 0 | 0 |
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Investments, Fair Value Disclosure | 0 | 0 |
Other Liabilities, Fair Value Disclosure | 17,638 | 27,710 |
Liabilities, Fair Value Disclosure | 17,638 | 27,710 |
Fair Value, Total | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Cash and Cash Equivalents, Fair Value Disclosure | 137,266 | 37,499 |
Available-for-sale Securities, Fair Value Disclosure | 202,073 | 91,629 |
Investments, Fair Value Disclosure | 339,339 | 129,128 |
Other Liabilities, Fair Value Disclosure | 17,638 | 27,710 |
Liabilities, Fair Value Disclosure | $17,638 | $27,710 |
Fair_Value_Measurements_Detail1
Fair Value Measurements (Details 2) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | ||||
Increase (decrease) in fair value of Symphony Icon, Inc. purchase liability | $1,428 | ($2,210) | $9,887 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings | 1,428 | -2,210 | 9,887 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Settlements | -11,500 | -35,000 | ||
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value | $17,638 | $27,710 | $29,920 | $55,033 |
Assets_Held_for_Sale_Details
Assets Held for Sale (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets Held for Sale [Abstract] | ||
Assets Held-for-sale, Long Lived, Fair Value Disclosure | $23,849 | $0 |
Property_and_Equipment_Details
Property and Equipment (Details 1) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment | ||
Property, Plant and Equipment, Gross | $37,354 | $123,307 |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | -36,274 | -81,945 |
Property, Plant and Equipment, Net | 1,080 | 41,362 |
Computers and Software | ||
Property, Plant and Equipment | ||
Property, Plant and Equipment, Gross | 9,468 | 11,180 |
Furniture and Fixtures | ||
Property, Plant and Equipment | ||
Property, Plant and Equipment, Gross | 7,032 | 7,315 |
Laboratory Equipment | ||
Property, Plant and Equipment | ||
Property, Plant and Equipment, Gross | 12,737 | 34,952 |
Leasehold Improvements | ||
Property, Plant and Equipment | ||
Property, Plant and Equipment, Gross | 8,117 | 8,092 |
Buildings | ||
Property, Plant and Equipment | ||
Property, Plant and Equipment, Gross | 0 | 59,104 |
Land | ||
Property, Plant and Equipment | ||
Property, Plant and Equipment, Gross | $0 | $2,664 |
Property_and_Equipment_Details1
Property and Equipment (Details 2) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Property, Plant and Equipment [Abstract] | |
Buildings Reclassified To Held For Sale | $59.10 |
Land Reclassified To Held For Sale | 2.7 |
Accumulated Depreciation Reclassified To Held For Sale | $38 |
Income_Taxes_Details_1
Income Taxes (Details 1) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred Tax Assets and Liabilities | ||
Deferred Tax Assets, Operating Loss Carryforwards | $255,518 | $238,608 |
Deferred Tax Assets, Tax Credit Carryforwards, Research | 40,173 | 37,453 |
Deferred Tax Assets, In Process Research and Development | 95,946 | 83,375 |
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Share-based Compensation Cost | 7,648 | 7,703 |
Deferred Tax Assets, Deferred Income | 4,457 | 4,760 |
Deferred Tax Assets, Other | 8,681 | 4,712 |
Deferred Tax Assets, Gross | 412,423 | 376,611 |
Deferred Tax Liability Related to Acquisition of Symphony Icon | -18,675 | -18,745 |
Deferred Tax Liabilities, Gross | -18,675 | -18,745 |
Deferred Tax Assets, Valuation Allowance | -412,423 | -376,611 |
Deferred Tax Liabilities, Net | ($18,675) | ($18,745) |
Income_Taxes_Details_2
Income Taxes (Details 2) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Other Tax Information | |||
Revision to Deferred Tax Assets | $13,800,000 | ||
Valuation Allowance, Deferred Tax Asset, Change in Amount | 35,800,000 | ||
Operating Loss Carryforwards, Federal | 715,800,000 | ||
Operating Loss Carryforwards, State | 460,200,000 | ||
Income Tax Expense (Benefit) | ($70,000) | $0 | $0 |
Goodwill_Details
Goodwill (Details) (USD $) | Jul. 30, 2010 | Jul. 12, 2001 |
In Millions, unless otherwise specified | ||
Goodwill | ||
Coelacanth Goodwill | $25.80 | |
Coelacanth Purchase Price | 36 | |
Symphony Icon Goodwill | $18.70 |
Debt_Obligations_Details_1
Debt Obligations (Details 1) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Debt Instrument | ||
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | $1,859 | |
Long-term Debt, Maturities, Repayments of Principal in Year Two | 2,015 | |
Long-term Debt, Maturities, Repayments of Principal in Year Three | 16,293 | |
Long-term Debt, Maturities, Repayments of Principal in Year Four | 0 | |
Long-term Debt, Maturities, Repayments of Principal in Year Five | 0 | |
Long-term Debt, Maturities, Repayments of Principal after Year Five | 87,500 | |
Long-term Debt, Gross | 107,667 | |
Long-term Debt, Current Maturities | 20,167 | 1,710 |
Long-term Debt, Excluding Current Maturities | $87,500 | $20,167 |
Debt_Obligations_Details_2
Debt Obligations (Details 2) (USD $) | 1 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Nov. 30, 2014 | Apr. 30, 2004 | Dec. 31, 2014 |
Debt Instrument | |||
Proceeds from Convertible Debt | $87.50 | ||
Convertible Debt Instrument Interest Rate Stated Percentage | 5.25% | ||
Debt Instrument, Convertible, Conversion Ratio | 829.1874 | ||
Debt Instrument, Convertible, Conversion Price | $1.21 | ||
Debt Issuance Cost | 3.4 | ||
Unamortized Debt Issuance Expense | 3.3 | ||
Debt Instrument, Fair Value Disclosure | 81 | ||
Woodlands Mortgage | 34 | ||
Woodlands Cash Paid | 20.8 | ||
Debt Instrument, Interest Rate, Stated Percentage | 8.23% | ||
Mortgage Loans on Real Estate, Carrying Amount of Mortgages | 20.2 | ||
Buildings Collateral | 59.1 | ||
Land Collateral | $2.70 |
Arrangements_with_Symphony_Ico1
Arrangements with Symphony Icon, Inc. (Details) (USD $) | 0 Months Ended | 1 Months Ended | 12 Months Ended | |||||
Dec. 04, 2014 | Oct. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jul. 30, 2012 | Jul. 30, 2010 | Jun. 15, 2007 | |
Loss Contingencies | ||||||||
Holdings Contribution To Icon | $45,000,000 | |||||||
Lexicon Sold Shares To Holdings | 7,650,622 | |||||||
Lexicon Received Cash From Holdings | 15,000,000 | |||||||
Lexicon Paid Holdings Cash | 10,000,000 | |||||||
Symphony Fair Value Of Base And Contingent Payments | 45,600,000 | |||||||
Symphony Base Payment Discount Rate | 14.00% | |||||||
Symphony Contingent Payment Discount Rate | 18.00% | |||||||
Symphony Base Payment In Shares | 13,237,519 | |||||||
Symphony Base Payment Obligation | 35,000,000 | |||||||
Symphony Contingent Payment Maximum | 45,000,000 | |||||||
Symphony Contingent Payment Percentage | 50.00% | |||||||
Symphony Regulatory Approval Payment | 15,000,000 | |||||||
Symphony Regulatory Approval Reduction Percentage | 50.00% | |||||||
Symphony Regulatory Approval Percentage Limit | 50.00% | |||||||
Symphony Payment In Stock Limitation | 50.00% | |||||||
Symphony Contingent Payment In Cash | 5,800,000 | |||||||
Symphony Contingent Payment in Shares | 4,662,780 | |||||||
Symphony Contingent Payment Total | 11,500,000 | |||||||
Ipsen Upfront Payment | 23,000,000 | |||||||
Increase (decrease) in fair value of Symphony Icon, Inc. purchase liability | $1,428,000 | ($2,210,000) | $9,887,000 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details 1) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Operating Leased Assets | |||
Restricted Investments | $430,000 | $430,000 | |
Operating Leases, Rent Expense | $1,000,000 | $900,000 | $2,200,000 |
Commitments_and_Contingencies_2
Commitments and Contingencies (Details 2) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Operating Leased Assets | |
Operating Leases, Future Minimum Payments Due, Next Twelve Months | $1,075 |
Operating Leases, Future Minimum Payments, Due in Two Years | 1,101 |
Operating Leases, Future Minimum Payments, Due in Three Years | 1,128 |
Operating Leases, Future Minimum Payments, Due in Four Years | 572 |
Operating Leases, Future Minimum Payments Due | $3,876 |
Other_Capital_Stock_Agreements1
Other Capital Stock Agreements (Details) (USD $) | 1 Months Ended | |
In Millions, except Share data, unless otherwise specified | Nov. 30, 2014 | Oct. 31, 2012 |
Schedule of Capitalization, Equity | ||
Stock Issued During Period, Shares, New Issues | 55,608,930 | 17,500,000 |
Offering Price Per Share | $1.00 | $2.25 |
Net Proceeds From Stock Offering | $201.90 | $37.10 |
Payments of Underwriting Discounts and Commissions | 3.4 | 2 |
Payments of Stock Issuance Costs | $0.60 | $0.20 |
Stock Issued During Period to Invus, Shares | 149,253,731 | 3,000,000 |
Equity_Incentive_Awards_Detail
Equity Incentive Awards (Details 1) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Stock Option Exercise Price as Percent of Value of Common Stock | 100.00% |
Restricted Stock Purchase Price as Percent of Value of Common Stock | 85.00% |
Total Shares That May be Issued, Equity Incentive Plan | 50,000,000 |
Limit On Shares That May Be Issued Other Than Stock Options or SARs, Equity Incentive Plan | 15,000,000 |
Options Outstanding, Equity Incentive Plan | 22,533,242 |
Restricted Stock Units Outstanding, Equity Incentive Plan | 3,130,720 |
Stock Options Exercised, Equity Incentive Plan | 5,881,815 |
Shares Issued Pursuant to Restricted Stock Units, Equity Incentive Plan | 3,224,339 |
Shares Issued Pursuant to Stock Bonus Awards, Equity Incentive Plan | 797,700 |
Directors Intial Option Grant | 30,000 |
Directors Annual Option Grant | 20,000 |
Directors Annual Restricted Stock Award Value | $20,000 |
Total Shares That May Be Issued, Non-Employee Directors Equity Incentive Plan | 1,500,000 |
Options Outstanding, Non-Employee Directors Equity Incentive Plan | 1,070,000 |
Stock Options Exercised, Non-Employee Directors Equity Incentive Plan | 0 |
Shares Issued Pursuant to Restricted Stock Awards, Non-Employee Directors Equity Incentive Plan | 277,480 |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 26,733,962 |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 14,584,704 |
Equity_Incentive_Awards_Detail1
Equity Incentive Awards (Details 2) (USD $) | 12 Months Ended | |||
Share data in Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $1.23 | $1.59 | $1.37 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Total Intrinsic Value | $43,000 | $325,000 | $462,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 5 years 10 months | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 4 years 8 months | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | 0 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | $0 | |||
Employee Stock Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 23,603 | 23,306 | 21,525 | 20,476 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $2.14 | $2.42 | $2.51 | $2.84 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 4,502 | 3,490 | 3,441 | |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $1.68 | $2.13 | $1.84 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | -223 | -572 | -636 | |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | $1.46 | $1.75 | $1.66 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expirations in Period | -3,334 | -950 | -1,231 | |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Expirations in Period, Weighted Average Exercise Price | $3.54 | $3.98 | $6.93 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | -648 | -187 | -525 | |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Forfeitures in Period, Weighted Average Exercise Price | $1.97 | $1.94 | $1.78 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 16,921 | 17,378 | 15,582 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $2.27 | $2.56 | $2.77 |
Equity_Incentive_Awards_Detail2
Equity Incentive Awards (Details 3) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Share-based Compensation Arrangement by Share-based Payment Award, Stock Bonus and Restricted Stock, Grants in Period | 102,560 | 80,808 | 94,112 |
Share-based Compensation Arrangement by Share-based Payment Award, Stock Bonus and Restricted Stock, Grants in Period, Weighted Average Grant Date Fair Value | $1.56 | $1.98 | $1.70 |
Share-based Compensation Arrangement by Share-based Payment Award, Stock Bonus and Restricted Stock to Consultants, Grants in Period | 57,400 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Stock Bonus and Restricted Stock to Consultants, Grants in Period, Weighted Average Grant Date Fair Value | $1.60 |
Equity_Incentive_Awards_Detail3
Equity Incentive Awards (Details 4) (Restricted Stock Units (RSUs), USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 3,131 | 4,242 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $1.84 | $1.93 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 1,604 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $1.72 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | -1,384 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $1.90 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | -1,331 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period, Weighted Average Fair Value | $1.92 |
Benefit_Plan_Details
Benefit Plan (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Defined Benefit Plans and Other Postretirement Benefit Plans | |||
Defined Contribution Plan, Cost Recognized | $376,000 | $511,000 | $490,000 |
Collaboration_and_License_Agre1
Collaboration and License Agreements (Details) | 1 Months Ended | 12 Months Ended | ||
Oct. 31, 2014 | Oct. 31, 2014 | Jul. 31, 2005 | Dec. 31, 2014 | |
USD ($) | EUR (€) | USD ($) | USD ($) | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions | ||||
Ipsen Upfront Payment | $23,000,000 | |||
Ipsen Revenue Allocated to Development Deliverable | 1,600,000 | |||
Ipsen Revenue Allocated to Committee Deliverable | 100,000 | |||
Ipsen Revenue Allocated to License Deliverable | 21,200,000 | |||
Ipsen Revenue Recognized | 21,400,000 | |||
Ipsen Maximum Regulatory And Commercial Milestones | 30,000,000 | |||
Ipsen Maximum Sales Milestones | 72,000,000 | |||
TX Enterprise Fund Award | 35,000,000 | |||
TX Enterprise Fund Award to Texas AM University System | 15,000,000 | |||
TIGM Per Job Payment Amount | 2,415 | |||
TIGM Maximum Exposure | 14,200,000 | |||
TIGM Maximum Exposure Through Reporting Date | $2,500,000 |
Restructuring_Charges_Details
Restructuring Charges (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Restructuring Charges [Abstract] | |
Restructuring Costs | $5.70 |
Restructuring Cost, Severance Costs | 5.3 |
Other Restructuring Costs | 0.4 |
Restructuring and Related Cost, Cost Incurred to Date | 5.6 |
Restructuring and Related Costs, Cost Incurred to Date, Research and Development | 4.9 |
Restructuring and Related Costs, Cost Incurred to Date, General and Administrative | 0.7 |
Restructuring and Related Costs, Cost Incurred to Date, Stock-based Compensation | 0.1 |
Restructuring Reserve | $0.30 |
Selected_Quarterly_Financial_D2
Selected Quarterly Financial Data (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Condensed Financial Statements, Captions | |||||||||||
Revenues | $21,482 | $419 | $676 | $277 | $1,410 | $238 | $214 | $360 | $22,854 | $2,222 | $1,089 |
Loss From Operations | -3,447 | -40,336 | -26,111 | -30,472 | -16,976 | -31,216 | -28,624 | -25,555 | -100,366 | -102,371 | -108,415 |
Consolidated Net Loss | ($2,933) | ($40,498) | ($26,028) | ($30,835) | ($17,414) | ($31,658) | ($29,080) | ($25,974) | ($100,294) | ($104,126) | ($110,211) |
Consolidated Net Loss Per Common Share, Basic and Diluted | $0 | ($0.08) | ($0.05) | ($0.06) | ($0.03) | ($0.06) | ($0.06) | ($0.05) | ($0.19) | ($0.20) | ($0.23) |
Shares Used In Computing Consolidated Net Loss Per Common Share Basic And Diluted | 593,694 | 514,796 | 514,623 | 513,955 | 513,523 | 513,419 | 513,083 | 512,428 | 534,432 | 513,117 | 489,707 |