Document and Entity Information
Document and Entity Information Document - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Mar. 08, 2019 | Jun. 30, 2018 | |
Document Information | |||
Entity Registrant Name | LEXICON PHARMACEUTICALS, INC./DE | ||
Entity Central Index Key | 0001062822 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2018 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 106,271,927 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Shell Company | false | ||
Entity Emerging Growth Company | false | ||
Entity Ex Transition Period | false | ||
Entity Small Business | false | ||
Entity Public Float | $ 491,500,000 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||||
Cash and cash equivalents | $ 80,386 | $ 61,661 | $ 46,600 | $ 202,989 |
Short-term investments | 79,666 | 249,127 | ||
Accounts receivable, net of allowances of $4 | 5,924 | 4,825 | ||
Inventory | 4,680 | 1,948 | ||
Prepaid expenses and other current assets | 2,668 | 4,434 | ||
Total current assets | 173,324 | 321,995 | ||
Property and equipment, net of accumulated depreciation and amortization of $60,006 and $58,623, respectively | 15,865 | 17,687 | ||
Goodwill | 44,543 | 44,543 | ||
Other intangible assets | 50,119 | 51,885 | ||
Other assets | 285 | 429 | ||
Total assets | 284,136 | 436,539 | ||
Current liabilities: | ||||
Accounts payable | 17,759 | 38,762 | ||
Accrued liabilities | 14,482 | 12,282 | ||
Current portion of deferred revenue | 3,395 | 40,351 | ||
Current portion of long-term debt, net of deferred financing costs | 1,115 | 14,094 | ||
Total current liabilities | 36,751 | 105,489 | ||
Deferred revenue, net of current portion | 23,651 | 24,903 | ||
Long-term debt, net of deferred financing costs | 243,887 | 231,576 | ||
Deferred tax liabilities | 6,014 | 6,014 | ||
Other long-term liabilities | 238 | 292 | ||
Total liabilities | 310,541 | 368,274 | ||
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; 225,000 shares authorized; 106,162 and 105,711 shares issued, respectively | 106 | 106 | ||
Additional paid-in capital | 1,447,954 | 1,435,526 | ||
Accumulated deficit | (1,471,577) | (1,365,241) | ||
Accumulated other comprehensive loss | (12) | (222) | ||
Treasury stock, at cost, 236 and 122 shares, respectively | (2,876) | (1,904) | ||
Total (deficit) equity | (26,405) | 68,265 | $ 167,507 | $ 285,972 |
Total liabilities and (deficit) equity | $ 284,136 | $ 436,539 |
Balance Sheet Parentheticals
Balance Sheet Parentheticals - USD ($) shares in Thousands, $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Allowance for doubtful accounts receivable | $ 4 | $ 4 |
Accumulated depreciation and amortization, property and equipment | $ 60,006 | $ 58,623 |
Preferred stock, par value per share (usd 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 (usd per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 225,000 | 225,000 |
Treasury stock, shares | 236 | 122 |
Common Stock | ||
Common stock, shares issued | 106,162 | 105,711 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues: | |||
Net product revenue | $ 26,583 | $ 15,890 | $ 0 |
Collaborative agreements | 36,271 | 75,621 | 79,101 |
Royalties and other revenue | 355 | 178 | 155 |
Total revenues | 63,209 | 91,689 | 79,256 |
Operating expenses: | |||
Cost of sales (including finite-lived intangible asset amortization) | 2,491 | 1,899 | 0 |
Research and development, including stock-based compensation of $6,010, $4,905, and $3,938, respectively | 100,243 | 152,223 | 163,973 |
Increase (decrease) in fair value of Symphony Icon, Inc. purchase liability | 0 | 2,101 | (703) |
General and administrative, including stock-based compensation of $5,686, $4,567, and $3,514, respectively | 63,754 | 66,090 | 43,157 |
Total operating expenses | 166,488 | 222,313 | 206,427 |
Income (loss) from operations | (103,279) | (130,624) | (127,171) |
Interest expense | (20,777) | (6,984) | (6,567) |
Interest and other income, net | 3,508 | 1,954 | 2,293 |
Net loss before taxes | (120,548) | (135,654) | (131,445) |
Income tax benefit | 0 | 12,661 | 0 |
Net loss | $ (120,548) | $ (122,993) | $ (131,445) |
Net loss per common share, basic and diluted (usd per share) | $ (1.14) | $ (1.17) | $ (1.27) |
Shares used in computing net loss per common share, basic and diluted | 105,830 | 105,237 | 103,863 |
Other comprehensive loss: | |||
Unrealized gain (loss) on investments | $ 210 | $ (27) | $ 24 |
Comprehensive loss | $ (120,338) | $ (123,020) | $ (131,421) |
Statements of Comprehensive Los
Statements of Comprehensive Loss Parentheticals (Parentheticals) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Stock-based compensation expense associated with research and development expense | $ 6,010 | $ 4,905 | $ 3,938 |
Stock-based compensation expense associated with general and administrative expense | $ 5,686 | $ 4,567 | $ 3,514 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive Gain (Loss) | Treasury Stock |
Balance, shares at Dec. 31, 2015 | 103,860 | |||||
Balance, value at Dec. 31, 2015 | $ 285,972 | $ 104 | $ 1,397,646 | $ (1,108,812) | $ (219) | $ (2,747) |
Stock-based compensation | 7,452 | $ 0 | 7,452 | 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 | 722 | |||||
Issuance of common stock under Equity Incentive Plans, value | 6,125 | $ 1 | 6,124 | 0 | 0 | 0 |
Repurchase of common stock | (621) | 0 | 0 | 0 | 0 | 621 |
Net loss | (131,445) | 0 | 0 | (131,445) | 0 | 0 |
Unrealized gain (loss) on investments | 24 | $ 0 | 0 | 0 | 24 | 0 |
Balance, shares at Dec. 31, 2016 | 104,582 | |||||
Balance, value at Dec. 31, 2016 | 167,507 | $ 105 | 1,411,222 | (1,240,257) | (195) | (3,368) |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | 0 | 1,991 | (1,991) | 0 | 0 | |
Stock-based compensation | 9,472 | $ 0 | 9,472 | 0 | 0 | 0 |
Issuance of common stock to designees of Symphony Icon Holdings LLC, shares | 660 | |||||
Issuance of common stock to designees of Symphony Icon Holdings LLC, value | $ 0 | |||||
Symphony Contingent Payment In Cash | 10,499 | 10,499 | 0 | 0 | 0 | |
Issuance of common stock under Equity Incentive Plans, shares | 469 | |||||
Issuance of common stock under Equity Incentive Plans, value | 5,486 | $ 1 | 5,485 | 0 | 0 | 0 |
Issuance of Treasury Stock | 0 | (3,143) | 0 | 0 | (3,143) | |
Repurchase of common stock | (1,679) | 0 | 0 | 0 | 0 | 1,679 |
Net loss | (122,993) | 0 | 0 | (122,993) | 0 | 0 |
Unrealized gain (loss) on investments | (27) | $ 0 | 0 | 0 | (27) | 0 |
Balance, shares at Dec. 31, 2017 | 105,711 | |||||
Balance, value at Dec. 31, 2017 | 68,265 | $ 106 | 1,435,526 | (1,365,241) | (222) | (1,904) |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | 14,212 | 0 | 14,212 | 0 | 0 | |
Stock-based compensation | 11,696 | $ 0 | 11,696 | 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 | 451 | |||||
Issuance of common stock under Equity Incentive Plans, value | 732 | $ 0 | 732 | 0 | 0 | 0 |
Repurchase of common stock | (972) | 0 | 0 | 0 | 0 | (972) |
Net loss | (120,548) | 0 | 0 | (120,548) | 0 | 0 |
Unrealized gain (loss) on investments | 210 | $ 0 | 0 | 0 | 210 | 0 |
Balance, shares at Dec. 31, 2018 | 106,162 | |||||
Balance, value at Dec. 31, 2018 | $ (26,405) | $ 106 | $ 1,447,954 | $ (1,471,577) | $ (12) | $ (2,876) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | |||
Net loss | $ (120,548) | $ (122,993) | $ (131,445) |
Adjustments to reconcile consolidated net loss to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 3,683 | 3,399 | 2,056 |
Increase (decrease) in fair value of Symphony Icon, Inc. purchase liability | 0 | 2,101 | (703) |
Stock-based compensation | 11,696 | 9,472 | 7,452 |
Loss on disposal of property and equipment | 0 | 3 | 16 |
Amortization of debt issuance costs | 1,336 | 599 | 527 |
Deferred tax benefit | 0 | (12,661) | 0 |
Changes in operating assets and liabilities: | |||
(Increase) decrease in accounts receivable | (1,099) | 166 | (4,080) |
Increase in inventories | (2,732) | (1,948) | 0 |
(Increase) decrease in prepaid expenses and other current assets | 1,766 | (557) | 6,259 |
(Increase) decrease in other assets | 144 | 33 | (32) |
Increase (decrease) in accounts payable and other liabilities | (18,857) | (11,875) | 13,584 |
Decrease in deferred revenue | (23,996) | (51,133) | (69,262) |
Net cash used in operating activities | (148,607) | (185,394) | (175,628) |
Cash flows from investing activities: | |||
Purchases of property and equipment | (95) | (228) | (231) |
Purchases of investments | (119,987) | (267,873) | (425,673) |
Maturities of investments | 289,658 | 318,623 | 444,156 |
Net cash provided by investing activities | 169,576 | 50,522 | 18,252 |
Cash flows from financing activities: | |||
Proceeds from issuance of common stock, net of fees | 732 | 7,987 | 3,624 |
Repurchase of common stock | (972) | (1,679) | (621) |
Proceeds from debt borrowings, net of fees | 12,529 | 145,905 | 0 |
Repayment of debt borrowings | (14,533) | (2,280) | (2,016) |
Net cash provided by (used in) financing activities | (2,244) | 149,933 | 987 |
Net increase (decrease) in cash and cash equivalents | 18,725 | 15,061 | (156,389) |
Cash and cash equivalents at beginning of year | 61,661 | 46,600 | 202,989 |
Cash and cash equivalents at end of year | 80,386 | 61,661 | 46,600 |
Supplemental disclosure of cash flow information: | |||
Cash paid for interest | 16,465 | 5,870 | 6,050 |
Supplemental disclosure of noncash investing and financing activities: | |||
Unrealized gain (loss) on investments | 210 | (27) | 24 |
Common stock issued in satisfaction of Symphony Icon base payment obligation | $ 0 | $ 0 | |
Symphony Contingent Payment In Cash | $ 10,499 |
Organization and Operations
Organization and Operations | 12 Months Ended |
Dec. 31, 2018 | |
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 strategic collaborations and other research and development collaborations, target validation, database subscription and technology license agreements, product sales, 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 successfully commercialize XERMELO (telotristat ethyl) and any other products which gain regulatory approval, develop and obtain regulatory approval for its other drug candidates, achieve milestones under its collaboration agreements, establish new collaboration and license 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 Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
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 (“GAAP”) 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, 2018 and December 31, 2017 , short-term investments consist of U.S. treasury bills and corporate debt securities. The Company’s short-term investments 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. 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. Inventory: Inventories are determined at the lower of cost or market value with cost determined under the specific identification method and may consist of raw materials, work in process and finished goods. Inventory consisted of the following as of December 31, 2018 and 2017 (in thousands): As of December 31, 2018 2017 Raw materials $ 3,564 $ 616 Work-in-process 232 149 Finished goods 884 1,183 Total inventory $ 4,680 $ 1,948 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 Europe and the United States. The Company has not experienced any significant credit losses to date. In 2018 , customers in France and the United States represented 60% and 40% of revenue, respectively. In 2017 , customers in France and the United States represented 83% and 17% , respectively. In 2016 , customers in France and the United States represented 99% and 1% of revenue, respectively. At December 31, 2018 , 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, development and commercialization 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, product sales, government grants and contracts and compound library sales. In 2018 , Sanofi represented 53% of revenues and two independent specialty pharmacies, Biologics, Inc. and Diplomat Pharmacy, represented 25% and 14% of revenues, respectively. In 2017 , Sanofi and Ipsen Pharma SAS (“Ipsen”) represented 66% and 18% of revenues, respectively. In 2016 , Sanofi represented 90% of revenues. Other Intangible Assets: Other intangible assets, net consist of in-process research and development acquired in business combinations, which are reported at fair value, less accumulated amortization. Intangible assets with finite lives are amortized using the straight-line method over their estimated useful lives. During 2017 , intangible assets relating to XERMELO of $24.7 million were reclassified from indefinite-lived to finite-lived assets following the approval of XERMELO by the FDA. The Company has recorded $1.8 million and $1.5 million in amortization expense related to this asset, which is recorded as cost of sales in the accompanying consolidated statements of comprehensive loss for the years ended December 31, 2018 and 2017 , respectively. Estimated future amortization expense for intangible assets as of December 31, 2018 is as follows: For the Year Ending December 31 (in thousands) 2019 $ 1,766 2020 1,766 2021 1,766 2021 1,766 2023 1,766 Thereafter 12,654 $ 21,484 Property and Equipment: Property and equipment that is held and used is 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. Recoverability of assets to be held and used is measured by comparison of the carrying amount of an asset to future net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount that the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. There were no impairments of long-lived assets, including finite-lived intangible assets, in 2018 , 2017 or 2016 . Indefinite lived intangible assets are also tested annually for impairment and whenever indicators of impairment are present. When performing the impairment assessment, the Company first assesses qualitative factors to determine whether it is necessary to recalculate the fair value of its intangible assets. If management believes, as a result of the qualitative assessment, that it is more likely than not that the fair value of the intangible assets is less than its carrying amount, the Company calculates the asset’s fair value. If the carrying value of the asset exceeds its fair value, then the intangible asset is written down to its fair value. There were no impairments of indefinite lived intangible assets in 2018 , 2017 or 2016 . 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 2018 , 2017 or 2016 . Revenue Recognition: Product Revenues Product revenues consist of commercial sales of XERMELO in the United States and sales of bulk tablets of XERMELO to Ipsen. Product revenues are recognized when the customer obtains control of the Company’s product, which occurs upon delivery to the customer. The Company recognizes product revenue net of applicable reserves for variable consideration, including allowances for customer credits, estimated rebates, chargebacks, discounts, returns, distribution service fees, and government rebates, such as Medicare Part D coverage gap reimbursements in the United States, as discussed below. These estimates are based on the most likely amount method for relevant factors such as current contractual and statutory requirements, industry data and forecasted customer buying and payment patterns. Product shipping and handling costs are considered a fulfillment activity when control transfers to the Company’s customers and such costs are included in cost of sales. Customer Credits: The Company’s specialty pharmacy customers are offered various forms of consideration, including allowances, service fees and prompt payment discounts. The Company expects that the specialty pharmacies will earn prompt payment discounts. As a result, the Company deducts the full amount of those discounts from total product sales when revenues are recognized. Service fees are also deducted from product sales as they are earned. Rebates: Allowances for rebates include mandated discounts under the Medicaid Drug Rebate Program. Rebate amounts are based upon contractual agreements or legal requirements with public sector (e.g., Medicaid) benefit providers. Rebates are amounts owed after the final dispensing of the product to a benefit plan participant and are based upon contractual agreements or legal requirements with public sector benefit providers. The allowance for rebates is based on statutory discount rates and expected utilization. The Company’s estimates for expected utilization of rebates are based on third party market research data and data received from the specialty pharmacies. Rebates are generally invoiced and paid in arrears so that the accrual balance consists of an estimate of the amount expected to be incurred for the current quarter’s activity, plus an accrual balance for known unpaid rebates from the prior quarter. If actual future rebates vary from estimates, the Company may need to adjust prior period accruals, which would affect revenue in the period of adjustment. Chargebacks: Chargebacks are discounts that occur when contracted customers purchase directly from a specialty pharmacy. Contracted customers, which currently consist primarily of Public Health Service Institutions, non-profit clinics, and federal government entities purchasing via the Federal Supply Schedule, generally purchase the product at a discounted price. The specialty pharmacies, in turn, charge back to Lexicon the difference between the price initially paid by the specialty pharmacies and the discounted price paid to the specialty pharmacies by the customer. The allowance for chargeback is based on known sales to contracted customers. Medicare Part D Coverage Gap: The Medicare Part D prescription drug benefit mandates manufacturers to fund 50% of the Medicare Part D insurance coverage gap for prescription drugs sold to eligible patients. The Company’s estimates for the expected Medicare Part D coverage gap are based on data received from the specialty pharmacies. Funding of the coverage gap is generally invoiced and paid in arrears so that the accrual balance consists of an estimate of the amount expected to be incurred for the current quarter’s activity, plus an accrual balance for known prior quarters. If actual future funding varies from estimates, the Company may need to adjust prior period accruals, which would affect revenues in the period of adjustment. Co-payment assistance: Patients who have commercial insurance and meet certain eligibility requirements may receive co-payment assistance. The Company accrues a liability for co-payment assistance based on actual program participation and estimates of program redemption using data provided by third-party administrators. Collaborative Agreements Revenues under collaborative agreements include both license revenue and contract research revenue. The Company performs the following five steps in determining the amount of revenue to recognize as it fulfills its performance obligations under each of its agreements: (i) identify the contract(s) with a customer; (ii) identify the performance obligation in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligation in the contract, and (v) recognize revenue when (or as) the Company satisfies the performance obligation. The Company applies this five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. At contract inception, the Company assesses the goods or services promised within each contract and determines those that are performance obligations, and assesses whether each promised good or service is distinct. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. The Company develops assumptions that require judgment to determine the stand-alone selling price for each performance obligation identified in the contract. At contract inception, the Company evaluates whether development milestones are considered probable of being reached and estimates the amount to be included in the transaction price using the most likely amount method. If it is probable that a significant revenue reversal will not occur, the associated development milestone value is included in the transaction price. Development milestones that are not within the control of the Company or the licensee, including those requiring regulatory approval, are not considered probable of being achieved until those approvals are received. The transaction price is allocated to each performance obligation on a relative stand-alone selling price basis, for which the Company recognizes revenue when (or as) the performance obligation is satisfied. At the end of each reporting period, the Company re-evaluates the probability of achievement of the development milestones and any related constraint, and if necessary, adjusts its estimates of the overall transaction price. Any such adjustments are recorded on a cumulative catch-up basis, which would affect collaboration revenues in the period of adjustment. In agreements in which a license to the Company’s intellectual property is determined distinct from other performance obligations identified in the agreement, the Company recognizes revenue when the license is transferred to the licensee and the licensee is able to use and benefit from the license. For agreements that include sales-based royalties, including milestones based on a level of sales, the license is deemed to be the predominant item to which the royalties relate, the Company recognizes revenue at the later of (i) when the related sales occur, or (ii) when the performance obligation to which some or all of the royalty has been allocated has been satisfied (or partially satisfied). The Company may receive payments from its licensees based on billing schedules established in each contract. Up-front payments and fees are recorded as deferred revenue upon receipt or when due, and may require deferral of revenue recognition to a future period until the Company performs its obligations under these agreements. Amounts are recorded as accounts receivable when the Company’s right to consideration is unconditional. Cost of Sales: Cost of sales consists of third-party manufacturing costs, freight and indirect overhead costs associated with sales of XERMELO. The Company began capitalizing inventory during 2017 once the FDA approved XERMELO as the related costs were expected to be recoverable through the commercialization of the product. Costs incurred prior to approval of XERMELO have been recorded as research and development expense in the consolidated statements of comprehensive loss. As a result, cost of sales for approximately the next eighteen months will reflect a lower average per unit cost of materials. Product shipping and handling costs are included in cost of sales. Cost of sales also includes the amortization of the in-process research and development intangible asset for XERMELO using the straight-line method over the estimated useful life of 14 years . 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, 2018 , stock-based compensation cost for all outstanding unvested options and restricted stock units was $22.3 million , which is expected to be recognized over a weighted-average period of 1.2 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 different assumptions used for expected option lives. Historical data is used to estimate the expected option life for each group. 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, 2018 , 2017 and 2016 , respectively: Expected Volatility Risk-free Interest Rate Expected Term Dividend Rate December 31, 2018: Employees 58% 2.6% 4 0 % Officers and non-employee directors 63% 2.8% 8 0 % December 31, 2017: Employees 61% 1.7% 4 0 % Officers and non-employee directors 70% 2.2% 8 0 % December 31, 2016: Employees 63% 1.1% 4 0 % Officers and non-employee directors 83% 1.6% 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 and restricted stock units are not included because they are antidilutive. Correction of errors in previously reported consolidated financial statements: During the year ended December 31, 2018, the Company identified errors in its previously issued financial statements for the interim and annual periods prior to the quarter ended December 31, 2018 related to the recognition of research and development expense and accrued liabilities for its inTandem1, inTandem2 and inTandem3 clinical trials of sotagliflozin. The Company recognized research and development expense based on its estimates of clinical trial costs, but in 2018 the Company determined that the design of controls were not sufficiently precise to prevent the overstatement of estimated pass-through costs recorded in the clinical trial expense accrual. In December 2018, the Company was notified by the third party vendor performing such clinical trials that the aggregate pass-through costs payable by the Company with respect to such clinical trials would be $19.0 million less than previously estimated. As a result, the Company’s accruals of expenses for such clinical trials were overstated by such amount. The Company assessed the materiality of these errors in accordance with the Securities and Exchange Commission Staff Accounting Bulletins No. 99, Materiality and No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements (“SAB 108”), using both the rollover method and the iron curtain method, as defined in SAB 108. The Company concluded that the errors, including other adjustments discussed below, were immaterial to prior years but, if corrected in the current year, would have been material to the current year. Under SAB 108, such prior year misstatements must be corrected by adjusting the prior year financial statements if such corrections would be material to the current year if made in the current year. Correcting prior year financial statements for such immaterial misstatements does not require previously filed reports to be amended. In addition to the adjustments related to research and development expense and accrued liabilities for the inTandem1, inTandem2 and inTandem3 clinical trials, the Company recorded other adjustments related to the years ended December 31, 2016 and 2015 and the quarterly periods in the nine months ended September 30, 2016 to correct for immaterial errors related to research and development and selling, general and administrative expense. These other adjustments were not previously recorded in the appropriate periods, as the Company concluded that they were immaterial to its previously issued consolidated financial statements. For the years ended December 31, 2017 and 2016, correction of these errors decreased the Company’s net loss by $6.1 million and $10.0 million , respectively. The cumulative effect of those adjustments increased previously reported retained earnings by $16.1 million , which included an adjustment of $0.1 million to the opening balance at December 31, 2016. The Company also corrected its financial statements for each of the interim periods in the years ended December 31, 2018 and 2017. See Note 15, Selected Quarterly Financial Data (Unaudited). The effects of the corrections of the errors on the Company’s consolidated statements of comprehensive loss and balance sheets are presented in the tables below. The corrections of the errors had no effect on the previously reported total amounts of operating, investing, and financing cash flows on the Company’s consolidated statements of cash flows. Years ended December 31, 2017 2016 Previously reported Adjustments As adjusted Previously reported Adjustments As adjusted Revenues: Net product revenue $ 15,890 $ — $ 15,890 $ — $ — $ — Collaborative agreements 74,267 1,354 75,621 83,182 (4,081 ) 79,101 Royalties and other revenue 178 — 178 155 — 155 Total revenues 90,335 1,354 91,689 83,337 (4,081 ) 79,256 Operating expenses: Cost of sales (including finite-lived intangible asset amortization) 1,899 — 1,899 — — — Research and development, including stock-based compensation of $4,905 and $3,938, respectively 156,813 (4,590 ) 152,223 178,151 (14,178 ) 163,973 Increase (decrease) in fair value of Symphony Icon, Inc. purchase liability 2,101 — 2,101 (703 ) — (703 ) Selling, general and administrative, including stock-based compensation of $4,567 and $3,514, respectively 66,203 (113 ) 66,090 43,044 113 43,157 Total operating expenses 227,016 (4,703 ) 222,313 220,492 (14,065 ) 206,427 Loss from operations (136,681 ) 6,057 (130,624 ) (137,155 ) 9,984 (127,171 ) Interest expense (6,984 ) — (6,984 ) (6,567 ) — (6,567 ) Interest and other income, net 1,954 — 1,954 2,293 — 2,293 Net loss before taxes (141,711 ) 6,057 (135,654 ) (141,429 ) 9,984 (131,445 ) Income tax benefit 12,661 — 12,661 — — — Net loss $ (129,050 ) $ 6,057 $ (122,993 ) $ (141,429 ) $ 9,984 $ (131,445 ) Net loss per common share, basic and diluted $ (1.23 ) $ 0.06 $ (1.17 ) $ (1.36 ) $ 0.09 $ (1.27 ) Shares used in computing net loss per common share, basic and diluted 105,237 105,237 103,863 103,863 December 31, 2017 Previously reported Adjustment As revised Assets Current assets: Cash and cash equivalents $ 61,661 $ — $ 61,661 Short-term investments 249,127 — 249,127 Accounts receivable, net of allowances of $4 4,825 — 4,825 Inventory 1,948 — 1,948 Prepaid expenses and other current assets 4,434 — 4,434 Total current assets 321,995 — 321,995 Property and equipment, net of accumulated depreciation and amortization of $58,623 17,687 — 17,687 Goodwill 44,543 — 44,543 Other intangible assets 51,885 — 51,885 Other assets 429 — 429 Total assets $ 436,539 $ — $ 436,539 Liabilities and Equity Current liabilities: Accounts payable $ 57,652 $ (18,890 ) $ 38,762 Accrued liabilities 12,282 — 12,282 Current portion of deferred revenue 40,099 252 40,351 Current portion of long-term debt, net of deferred financing costs 14,094 — 14,094 Total current liabilities 124,127 (18,638 ) 105,489 Deferred revenue, net of current portion 22,428 2,475 24,903 Long-term debt, net of deferred financing costs 231,576 — 231,576 Deferred tax liabilities 6,014 — 6,014 Other long-term liabilities 292 — 292 Total liabilities 384,437 (16,163 ) 368,274 Commitments and contingencies Equity: Preferred stock, $.01 par value; 5,000 shares authorized; no shares issued and outstanding — — — Common stock, $.001 par value; 225,000 shares authorized; 105,711 shares issued 106 — 106 Additional paid-in capital 1,435,526 — 1,435,526 Accumulated deficit (1,381,404 ) 16,163 (1,365,241 ) Accumulated other comprehensive loss (222 ) — (222 ) Treasury stock, at cost, 122 shares, respectively (1,904 ) — (1,904 ) Total (deficit) equity 52,102 16,163 68,265 Total liabilities and (deficit) equity $ 436,539 $ — $ 436,539 |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2018 | |
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. In 2015, the FASB issued ASU No. 2015-14, “Revenue from Contracts with Customers: Deferral of Effective Date”, which deferred the effective date by one year to annual periods after December 15, 2017 including interim periods within that reporting period. In 2016, the FASB issued four additional ASUs related to Topic 606: ASU Nos. 2016-08, 2016-10, 2016-12 and 2016-20. These ASUs clarify various aspects of the new revenue guidance, including principal versus agent considerations, identifying performance obligations and licensing, and they include other improvements and practical expedients. The Company adopted this new standard on January 1, 2018 using the modified retrospective transition method, and has applied the provisions to contracts that were not complete as of January 1, 2018. Impact of Adoption The Company’s primary source of collaboration revenue has been through its license and collaboration agreements with three separate third-party licensees: Texas Institute for Genomic Medicine (“TIGM”), Sanofi and Ipsen. With respect to its contract with TIGM, the Company evaluated the variable consideration relating to the remaining milestone and determined, based on the most likely amount method, that it was not probable that a significant reversal would occur and therefore, concluded no constraint was required. Accordingly, the Company recorded a $14.2 million cumulative-effect adjustment to its accumulated deficit as of January 1, 2018 and reduced deferred revenue in the same amount. With respect to its collaboration agreements with Sanofi and Ipsen, the Company evaluated the variable consideration relating to future milestone payments and determined, based on the most likely amount method, that the estimated amounts could be considered as part of the transaction price. The Company then evaluated the variable constraint and determined that the variable consideration amounts are constrained, primarily by future events that are not within the control of the Company. The future events primarily relate to receipt of positive results from studies, approval from regulatory agencies, and upon achieving sales in certain locations. Accordingly, the Company determined that there was no cumulative adjustment required for these agreements on the date of adoption. The adoption of this ASU did not impact the timing or amount of revenues recognized related to its contracts with customers for the sale of product. In November 2018, the FASB issued ASU No. 2018-18, “Collaborative Arrangements (Topic 808): Clarifying the Interaction between Topic 808 and Topic 606.” This targeted amendment to Topic 808 clarifies that certain transactions resulting from a collaboration agreement should be accounted for as revenue under Topic 606 when the collaborative arrangement participant is a customer for a good or service that is a distinct unit-of-account. This amendment is effective for fiscal years, and interim periods within years presented, beginning after December 15, 2019, and should be applied retrospectively to the date of initial application of Topic 606. The Company has applied the provisions of Topic 606 to account for its transactions for collaboration arrangements, including recognition, measurement, presentation and disclosure requirements. In January 2016, the FASB issued ASU No. 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities.” ASU 2016-01 requires that most equity investments be measured at fair value, with subsequent changes in fair value recognized in net income. The pronouncement also impacts financial liabilities under the fair value option and the presentation and disclosure requirements for financial instruments. This pronouncement is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017, and early adoption is not permitted. The adoption of this ASU on January 1, 2018 did not have an impact on Lexicon’s consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, “Leases.” ASU 2016-02 requires companies that lease assets to recognize a right-of-use asset and a lease liability, initially measured at the present value of the lease payments, in its balance sheet. The pronouncement will also require additional disclosures about the amount, timing and uncertainty of cash flows arising from leases. This pronouncement is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018, and early adoption is permitted. This ASU is required to be adopted using a modified retrospective approach. Management adopted ASU 2016-02 on the effective date of January 1, 2019. Upon adoption, the Company recognized $2.1 million for right-of-use assets and corresponding liabilities of the same amount on the consolidated balance sheet, primarily related to leases of office space. The adoption of this ASU on January 1, 2019 did not have a material impact on Lexicon’s consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, “Stock Compensation,” which is intended to simplify several aspects of the accounting for share-based payment award transactions. The Company adopted this pronouncement effective January 1, 2017. Upon adoption, the Company recognized approximately $6.1 million of accumulated excess tax benefits as deferred tax assets that under the previous guidance could not be recognized until the benefits were realized through a reduction in cash taxes paid. This part of the guidance is applied using a modified retrospective method with a cumulative-effect adjustment to the accumulated deficit for the excess tax benefits not previously recognized. However, given the full valuation allowance placed on the additional $6.1 million of deferred tax assets, the recognition of this provision of ASU 2016-09 had no impact to the Company’s accumulated deficit as of January 1, 2017. Additionally, the Company recorded an adjustment to accumulated deficit of $2.0 million as a result of making an entity-wide accounting policy election to account for forfeitures of share-based payment awards as they occur instead of estimating the number of awards that are expected to vest. |
Cash and Cash Equivalents and I
Cash and Cash Equivalents and Investments | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 and 2017 are as follows: As of December 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value (in thousands) Cash and cash equivalents $ 80,386 $ — $ — $ 80,386 Securities maturing within one year: U.S. treasury securities 73,983 — (9 ) 73,974 Corporate debt securities 5,695 — (3 ) 5,692 Total short-term investments $ 79,678 $ — $ (12 ) $ 79,666 Total cash and cash equivalents and investments $ 160,064 $ — $ (12 ) $ 160,052 As of December 31, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value (in thousands) Cash and cash equivalents $ 61,661 $ — $ — $ 61,661 Securities maturing within one year: U.S. treasury securities 222,316 — (168 ) 222,148 Corporate debt securities 27,033 — (54 ) 26,979 Total short-term investments $ 249,349 $ — $ (222 ) $ 249,127 Total cash and cash equivalents and investments $ 311,010 $ — $ (222 ) $ 310,788 There were no realized gains or losses for the year ended December 31, 2018 . There were $7,000 in realized losses for the year ended December 31, 2017 . There were no realized gains or losses for the year ended December 31, 2016 . |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2018 | |
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.), which include corporate debt securities • Level 3 – significant unobservable inputs (including the Company’s own assumptions in determining the fair value of the Symphony Icon purchase consideration liability) 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, 2018 and 2017 . Assets and Liabilities at Fair Value As of December 31, 2018 Level 1 Level 2 Level 3 Total (in thousands) Assets Cash and cash equivalents $ 80,386 $ — $ — $ 80,386 Short-term investments 73,974 5,692 — 79,666 Total cash and cash equivalents and investments $ 154,360 $ 5,692 $ — $ 160,052 Assets and Liabilities at Fair Value As of December 31, 2017 Level 1 Level 2 Level 3 Total (in thousands) Assets Cash and cash equivalents $ 61,661 $ — $ — $ 61,661 Short-term investments 222,148 26,979 — 249,127 Total cash and cash equivalents and investments $ 283,809 $ 26,979 $ — $ 310,788 The Company did not have any Level 3 assets at December 31, 2018 or 2017 . The Company did not have any Level 3 liabilities at December 31, 2018 or 2017 . Transfers between levels are recognized at the actual date of circumstance that caused the transfer. In March 2017, the Company satisfied its remaining contingent payment obligation to designees of Symphony Icon Holdings LLC. Prior to payment, the Symphony Icon purchase consideration liability, a Level 3 liability, was estimated using a probability-based income approach utilizing an appropriate discount rate. Changes in the fair value of the Symphony Icon purchase consideration liability were recorded as an increase or decrease in 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 $2.1 million during the year ended December 31, 2017 and decreased by $0.7 million during the year ended December 31, 2016 . The following table summarizes the change in consolidated balance sheet carrying value associated with Level 3 liabilities for the years ended December 31, 2016 and 2017 . Other Long-term Liabilities (in thousands) Balance at December 31, 2015 22,815 Change in valuation of purchase consideration payable to former Symphony Icon stockholders (703 ) Payment of contingent payment obligation with cash (3,200 ) Balance at December 31, 2016 18,912 Change in valuation of purchase consideration payable to former Symphony Icon stockholders 2,101 Payment of contingent payment obligation with common stock and cash (21,013 ) Balance at December 31, 2017 $ — 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 in 2010 and intangible assets associated with the acquisition of Symphony Icon in 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. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2018 | |
Property and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment at December 31, 2018 and 2017 are as follows: Estimated Useful Lives As of December 31, In Years 2018 2017 (in thousands) Computers and software 3-5 $ 4,557 $ 4,605 Furniture and fixtures 5-7 5,644 6,006 Laboratory equipment 3-7 3,378 3,423 Leasehold improvements 3-7 416 400 Buildings 15-40 59,212 59,212 Land — 2,664 2,664 Total property and equipment 75,871 76,310 Less: Accumulated depreciation and amortization (60,006 ) (58,623 ) Net property and equipment $ 15,865 $ 17,687 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Taxes [Abstract] | |
Income Taxes | Income Taxes The Tax Cuts and Jobs Act (the “2017 Tax Act”) was enacted on December 22, 2017. The 2017 Tax Act significantly changes U.S. corporate income tax laws, including a reduction of the U.S. corporate income tax rate from 35 percent to 21 percent, reduction of certain tax credits, limitations or deductibility of interest expense and executive compensation, and limitations on the use of net operating loss carryforwards. During the year ended December 31, 2018, the Company's accounting for the income tax effects of the 2017 Tax Act was completed without material changes to the previously reported estimates. 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. Accordingly, at December 31, 2017, the Company remeasured certain deferred tax assets and liabilities at the 21 percent effective tax rate, which resulted in a decrease of $165.3 million . 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 following data contain certain corrections of errors identified in previously reported amounts. See Note 2, Summary of Significant Accounting Policies. The components of Lexicon’s deferred tax assets (liabilities) at December 31, 2018 and 2017 are as follows: As of December 31, 2018 2017 (in thousands) Deferred tax assets: Net operating loss carryforwards $ 206,789 $ 183,839 Research and development tax credits 47,087 46,574 Orphan drug credits 24,524 24,524 Capitalized research and development 71,047 68,603 Stock-based compensation 4,641 3,923 Deferred revenue 5,458 13,523 Interest 3,625 — Other 6,044 5,656 Total deferred tax assets 369,215 346,642 Deferred tax liabilities: Deferred tax liability related to acquisition of Symphony Icon (10,525 ) (10,896 ) Other (2 ) (1 ) Total deferred tax liabilities (10,527 ) (10,897 ) Less: valuation allowance (364,702 ) (341,759 ) Net deferred tax liabilities $ (6,014 ) $ (6,014 ) The $10.5 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. During 2017, after XERMELO was approved by the FDA, the intangible asset related to XERMELO became finite-lived and as a result $8.7 million of the related deferred tax liability could be considered as a source of taxable income. Lexicon does not believe it can estimate the reversal of the temporary difference related to the remaining assets acquired with sufficient certainty such that $6.0 million of the deferred tax liability is not considered as a source of taxable income in assessing the Company’s need for a valuation allowance in accordance with ASC 740 on the basis of the tax laws in effect immediately prior to the enactment of the 2017 Tax Act. At December 31, 2018 , Lexicon had both federal and state NOL carryforwards of approximately $941.9 million and $455.8 million , respectively. The federal and state NOL carryforwards will begin to expire in 2019. The Company’s R&D tax credit carryforwards of approximately $47.1 million begin to expire in 2019. The orphan drug credit relates to a credit that is calculated as a percentage of expenditures for development of XERMELO, which has received Orphan Drug designation from the FDA. Utilization of the NOL, R&D credit and orphan drug 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, excluding the deferred tax liability relating to the XERMELO finite-lived asset, until an appropriate level of profitability is sustained. During the year ended December 31, 2018 , the valuation allowance increased $22.9 million , primarily due to the Company’s current year net loss, offset in part by expiring R&D credits. Lexicon recorded income tax benefits of $12.7 million in the year ended December 31, 2017 . Of the $12.7 million tax benefits, $8.7 million is the release of a valuation allowance as a result of the ability to estimate the reversal of the deferred tax liability related to the intangible associated with XERMELO, as discussed above. The remaining $4.0 million was recorded to remeasure the deferred tax liability associated with the remaining indefinite-lived intangible asset associated with Symphony Icon at the newly enacted U.S. corporate income tax rate. There were no income tax benefits in the years ended December 31, 2018 and 2016 , respectively. As of December 31, 2018 and 2017 , 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, 2018 and 2017 , the Company had no accruals for interest or penalties related to income tax matters. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2018 | |
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 10) and completed the acquisition of Symphony Icon, Inc. 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, 2018 | |
Debt Obligations [Abstract] | |
Debt Obligations | Debt Obligations Convertible Notes. 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 “Convertible Notes”). The conversion feature did not meet the criteria for bifurcation as required by generally accepted accounting principles and the entire principal amount was recorded as long-term debt on the Company’s consolidated balance sheets. The Convertible 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 Convertible 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 Convertible Notes mature on December 1, 2021. The Company may not redeem the Convertible Notes prior to the maturity date, and no sinking fund is provided for the Convertible Notes. Holders of the Convertible Notes may convert their Convertible 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 Convertible Notes a number of shares of its common stock equal to the conversion rate, as described in the Indenture. The conversion rate is initially 118.4553 shares of common stock per $1,000 principal amount of Convertible Notes (equivalent to an initial conversion price of $8.442 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 Convertible 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 Convertible Notes at a fundamental change repurchase price equal to 100% of the principal amount of the Convertible Notes to be repurchased, plus accrued and unpaid interest to, but excluding, the fundamental change repurchase date. In connection with the issuance of the Convertible Notes, the Company incurred $3.4 million of debt issuance costs. The debt issuance costs are amortized as interest expense over the expected life of the Convertible Notes using the effective interest method. The Company determined the expected life of the debt was equal to the seven -year term of the Convertible Notes. As of December 31, 2018 , the balance of unamortized debt issuance costs was $1.4 million , which offsets long-term debt on the consolidated balance sheets. The fair value of the Convertible Notes was $97.5 million as of December 31, 2018 and was determined using Level 2 inputs based on the indicative pricing published by certain investment banks or trading levels of the Convertible Notes, which are not listed on any securities exchange or quoted on an inter-dealer automated quotation system. Mortgage Loan. In August 2018, a wholly owned subsidiary of Lexicon entered into a term loan and security agreement, refinancing the previously existing mortgage on its facilities in The Woodlands, Texas (the “Property”). The Company recorded the refinancing as a debt extinguishment, with no recognition of gain or loss on the transaction. The loan agreement provides for a $12.9 million mortgage on the Property and has a two -year term with a 10 -year amortization. The mortgage loan bears interest at a rate per annum equal to the greater of (a) the 30-day LIBOR rate plus 5.5% and (b) 7.5% and provides for a balloon payment of $10.3 million due in August 2020. Lexicon incurred $0.4 million of debt issuance costs in connection with the mortgage loan, which offsets long-term debt on the consolidated balance sheets and will be amortized as interest expense over the two -year term of the loan agreement. As of December 31, 2018 , the balance of unamortized debt issuance costs was $0.3 million . The consolidated balance sheet includes mortgage debt of $12.1 million as of December 31, 2018 . The buildings and land that serve as collateral for the mortgage loan are included in property and equipment at $59.2 million and $2.7 million , respectively, before accumulated depreciation, as of December 31, 2018 . 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. BioPharma Term Loan. In December 2017, Lexicon entered into a loan agreement with BioPharma Credit PLC and BioPharma Credit Investments IV Sub LP that provides up to $200 million borrowing capacity (the “BioPharma Term Loan”) available in two tranches, each maturing in December 2022. The BioPharma Term Loan bears interest at 9% per year, subject to additional interest if an event of default occurs and is continuing, and is payable quarterly. A tranche of $150 million was funded in December 2017. The BioPharma Term Loan is subject to mandatory prepayment provisions that require prepayment upon a change of control or receipt of proceeds from certain non-ordinary course transfers of assets. The Company may prepay the BioPharma Term Loan in whole at its option at any time. Any prepayment of the BioPharma Term Loan is subject to customary make-whole premiums and prepayment premiums. The Company’s obligations under the BioPharma Term Loan are secured by a first lien security interest in substantially all of the assets of the Company and certain of its subsidiaries, other than its facilities in The Woodlands, Texas. The loan agreement contains certain customary representations and warranties, affirmative and negative covenants and events of default applicable to the Company and certain of its subsidiaries, including among other things, covenants restricting dispositions, fundamental changes in our business, mergers or acquisitions, indebtedness, encumbrances, distributions, investments, transactions with affiliates and subordinated debt. If an event of default occurs and is continuing, all amounts outstanding under the BioPharma Term Loan may be declared immediately due and payable. In connection with the BioPharma Term Loan, the Company incurred $4.1 million of debt issuance costs. The debt issuance costs are amortized as interest expense over the expected life of the BioPharma Term Loan using the effective interest method. The Company determined the expected life of the debt was equal to the five -year term of the BioPharma Term Loan. As of December 31, 2018 , the balance of unamortized debt issuance costs was $3.2 million , which offsets long-term debt on the consolidated balance sheets. The fair value of the BioPharma Term Loan approximates its carrying value. The fair value of the BioPharma Term 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 scheduled future principal payments of the Company’s long-term debt as of December 31, 2018 : For the Year Ending December 31 (in thousands) 2019 $ 1,285 2020 11,130 2021 87,500 2022 150,000 2023 — Thereafter — Total debt 249,915 Less deferred financing costs (4,913 ) Less current portion (1,115 ) Total long-term debt $ 243,887 |
Arrangements with Symphony Icon
Arrangements with Symphony Icon, Inc. | 12 Months Ended |
Dec. 31, 2018 | |
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 XERMELO, 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 1,092,946 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 (the “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 1,891,074 shares of common stock to designees of Holdings on July 30, 2012 in satisfaction of an additional $35 million base payment obligation. Lexicon also agreed to make up to $45 million in additional contingent payments, which would consist of 50% of any consideration Lexicon received pursuant to any licensing transaction (a “Licensing Transaction”) under which Lexicon grants a third party rights to commercialize XERMELO or other pharmaceutical compositions modulating the same target as XERMELO (the “LG103 Programs”), subject to certain exceptions. The contingent payments would be due if and when Lexicon received such consideration from a Licensing Transaction. In the event Lexicon received 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 would pay Holdings the sum of $15 million and the amount of certain expenses Lexicon incurred after its exercise of the Purchase Option which were 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 made any such payment upon United States regulatory approval, Lexicon would 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 were payable in cash or a combination of cash and common stock, in Lexicon’s discretion, provided that no more than 50% of any contingent payment would be paid in common stock. In December 2014, Lexicon paid $5.8 million in cash and issued 666,111 shares of common stock to designees of Holdings in satisfaction of a $11.5 million contingent payment obligation as a result of receiving an upfront payment pursuant to Lexicon’s license and collaboration agreement with Ipsen. In April 2015, Lexicon paid $0.75 million in cash to Holdings in satisfaction of its contingent payment obligation as a result of receiving an additional upfront payment from Ipsen in March 2015. In September 2016, Lexicon paid $3.2 million in cash to Holdings in satisfaction of its contingent payment obligation as a result of receiving a milestone payment from Ipsen in August 2016. In September 2016, Lexicon entered into an amendment (the “Amendment”) to the Purchase Option Agreement with Holdings and Symphony Icon pursuant to which Lexicon agreed to pay Holdings $21.0 million upon Lexicon’s receipt of regulatory approval in the United States for the marketing and sale of XERMELO, such buyout amount to be in lieu of any remaining payments which may be or become payable to Holdings under the Purchase Option Agreement. In March 2017, Lexicon paid $10.5 million in cash and issued 659,905 shares of common stock to designees of Holdings in satisfaction of its remaining contingent payment obligation as a result of receiving regulatory approval in the United states for the marketing and sale of XERMELO. 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 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. No discount rate was used in the valuation of the contingent consideration liability as of December 31, 2016 as the expected buyout was short-term in nature. As programs progressed, the probability adjusted contingency was adjusted as necessary. Subsequent changes in the fair value of the Symphony Icon purchase consideration liability were 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 $2.1 million during the year ended December 31, 2017 and decreased by $0.7 million during the year ended December 31, 2016 . |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Operating Lease Obligations : A Lexicon subsidiary leases office space in Basking Ridge, New Jersey under a lease agreement, the term of which began in June 2015 and terminates in December 2022. Rent expense is recognized on a straight-line basis over the lease term. Additionally, Lexicon leases certain equipment under operating leases. Rent expense for all operating leases was approximately $0.6 million , $0.6 million and $0.5 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. The following table includes non-cancelable, escalating future lease payments: For the Year Ending December 31 (in thousands) 2019 $ 657 2020 637 2021 646 2022 658 2023 — Thereafter — Total $ 2,598 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. Some of the arrangements also provide for certain severance payments for either six or 12 months and, in some cases, payment of a specified portion of the officer’s bonus target for such year, in the event of a specified termination of the officer’s employment. Legal Proceedings: On January 28, 2019, a purported securities class action complaint captioned Daniel Manopla v. Lexicon Pharmaceuticals, Inc., Lonnel Coats and Jeffrey L. Wade was filed against the Company, and certain of its officers in the U.S. District Court for the Southern District of Texas, Houston Division. The lawsuit purports to be a class action brought on behalf of purchasers of the Company’s securities during the period from March 11, 2016 through January 17, 2019. The complaint alleges that the defendants violated federal securities laws by making materially false and misleading statements and/or omissions concerning data from its Phase 3 clinical trials of sotagliflozin in type 1 diabetes patients and the prospects of FDA approval of sotagliflozin for the treatment of type 1 diabetes. The complaint purports to assert claims for violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. The complaint seeks, on behalf of the purported class, an unspecified amount of monetary damages, interest, fees and expenses of attorneys and experts, and other relief. In addition, 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. |
Equity Incentive Awards
Equity Incentive Awards | 12 Months Ended |
Dec. 31, 2018 | |
Equity Incentive Awards [Abstract] | |
Equity Incentive Awards | Equity Incentive Awards Equity Incentive Plans 2017 Equity Incentive Plan: In September 1995, Lexicon adopted the 1995 Stock Option Plan, which was subsequently amended and restated in February 2000, April 2009, April 2012, April 2015 and April 2017 and renamed the 2017 Equity Incentive Plan (the “Equity Incentive Plan”). 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 awards, stock appreciation rights and performance stock awards. Incentive and nonstatutory stock options have an exercise price of 100% or more of the fair market value of the Company’s common stock on the date of grant. Most stock 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. Stock 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 15,000,000 shares. As of December 31, 2018 , an aggregate of 15,000,000 shares of common stock had been reserved for issuance, options to purchase 5,953,831 shares and 1,285,752 restricted stock units were outstanding, 1,909,515 shares had been issued upon the exercise of stock options, 1,451,648 shares had been issued pursuant to restricted stock units and 113,940 shares had been issued pursuant to stock bonus awards or restricted stock awards granted under the Equity Incentive Plan. 2017 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, April 2012, April 2015 and April 2017 and renamed the 2017 Non-Employee Directors’ Equity Incentive Plan (the “Directors’ Plan”). Under the Directors’ Plan, non-employee directors may be granted awards under the plan with an aggregate grant date fair value of more than $500,000 during any calender year, taken together with any cash fees paid to such non-employee director in compensation for service on Lexicon’s board of directors during such calender year. Stock 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 600,000 shares. As of December 31, 2018 , an aggregate of 600,000 shares of common stock had been reserved for issuance, stock options to purchase 198,551 shares were outstanding, none had been issued upon the exercise of stock options and 103,208 shares had been issued pursuant to restricted stock awards granted under the Directors’ Plan. Stock Option Activity: The following is a summary of stock option activity under Lexicon’s equity incentive plans: 2018 2017 2016 (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 4,961 $ 11.17 4,834 $ 11.24 4,217 $ 12.35 Granted 1,916 10.00 892 14.31 1,370 10.40 Exercised (97 ) 7.55 (458 ) 11.97 (495 ) 12.17 Expired (239 ) 14.21 (157 ) 26.42 (195 ) 27.33 Forfeited (389 ) 12.04 (150 ) 13.84 (63 ) 10.45 Outstanding at end of year 6,152 10.68 4,961 11.17 4,834 11.24 Exercisable at end of year 3,620 $ 10.72 3,077 $ 10.95 2,727 $ 12.55 The weighted average estimated grant date fair value of stock options granted during the years ended December 31, 2018 , 2017 and 2016 were $5.63 , $8.59 and $6.43 , respectively. The total intrinsic value of stock options exercised during the years ended December 31, 2018 , 2017 and 2016 were $0.2 million , $2.0 million and $1.7 million , respectively. The weighted average remaining contractual term of stock options outstanding and exercisable was 6.6 and 5.2 years, respectively, as of December 31, 2018 . At December 31, 2018 , the aggregate intrinsic value of the outstanding stock options and the exercisable stock options was $0.3 million and $0.3 million , respectively. Stock Bonus and Restricted Stock Unit Activity: During the years ended December 31, 2018 , 2017 and 2016 , Lexicon granted its non-employee directors 20,512 , 10,248 and 11,456 shares, respectively, of restricted stock awards. The restricted stock awards had weighted average grant date fair values of $7.80 , $15.61 and $13.96 per share, respectively, and vested immediately. During the years ended December 31, 2018 , 2017 and 2016 , Lexicon granted its employees restricted stock units in lieu of or in addition to annual stock option awards. These restricted stock units vest in three to 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, 2018 : Shares Weighted Average Grant Date Fair Value (in thousands) Outstanding at December 31, 2017 946 $ 10.50 Granted 872 9.79 Vested (334 ) 9.85 Forfeited (198 ) 10.59 Outstanding at December 31, 2018 1,286 $ 10.17 Aggregate Shares Reserved for Issuance As of December 31, 2018 , an aggregate of 7,438,134 shares of common stock were reserved for issuance upon exercise of outstanding stock options and vesting of outstanding restricted stock units and 4,583,555 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, 2018 | |
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 $1.0 million , $1.0 million and $0.7 million in the years ended December 31, 2018 , 2017 and 2016 , respectively. Company contributions are vested based on the employee’s years of service, with full vesting after four years of service. |
Collaboration and License Agree
Collaboration and License Agreements | 12 Months Ended |
Dec. 31, 2018 | |
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, product sales, government grants and contracts, technology licenses, subscriptions to its databases and compound library sales. Sanofi. In November 2015, Lexicon entered into a Collaboration and License Agreement, which was subsequently amended in July 2017 (collectively, the “Sanofi Agreement”), with Sanofi for the worldwide development of Lexicon’s diabetes drug candidate sotagliflozin. In December 2016, Sanofi terminated its rights under the Sanofi Agreement with respect to Japan. Under the Sanofi Agreement, Lexicon has granted Sanofi an exclusive, worldwide (excluding Japan), royalty-bearing right and license under its patent rights and know-how to develop, manufacture and commercialize sotagliflozin. Subject to specified exceptions, neither party may (a) perform clinical development activities relating to any other compound which inhibits sodium-glucose cotransporters type 1 or type 2 or (b) commercialize any such compounds in the United States, countries of the European Union and certain other specified countries, in each case during the royalty terms applicable in such countries. Among the specified exceptions is a right Lexicon retained to pursue the development of LX2761, with respect to which Lexicon granted Sanofi certain rights of first negotiation specified in the Sanofi Agreement. Under the Sanofi Agreement, Sanofi paid Lexicon an upfront payment of $300 million . In addition, Lexicon is eligible to receive from Sanofi (a) up to an aggregate of $110 million upon the achievement of four development milestones relating to the results of certain Phase 3 clinical trials of sotagliflozin in type 2 diabetes patients, (b) up to an aggregate of $220 million upon the achievement of four regulatory milestones relating to the first commercial sale following regulatory approval of sotagliflozin for type 1 and type 2 diabetes, respectively, in each of the United States and Europe, of which two milestones representing the substantial majority of such aggregate amount relate to type 2 diabetes and the remaining two milestones relate to type 1 diabetes, (c) $100 million upon the achievement of a milestone based on the results of either of two outcomes studies in type 2 diabetes patients, the completion of which would likely occur after initial regulatory approval of sotagliflozin in type 2 diabetes, and (d) up to an aggregate of $990 million upon the achievement of six commercial milestones that will be achieved upon reaching specified levels of sales. The Company believes that each of the development and regulatory milestones under the Sanofi Agreement is substantive. Due to the uncertainty surrounding the achievement of the future development and regulatory milestones, these payments are deemed constrained and will not be recognized as revenue unless and until the constraint is resolved. Commercial milestones will be accounted for as royalties and recorded as revenue upon achievement of the milestone, assuming all other revenue recognition criteria were met. Lexicon is also entitled to tiered, escalating royalties ranging from low double digit percentages to forty percent of net sales of sotagliflozin, based on indication and territory, with royalties for the higher band of such range attributable to net sales for type 1 diabetes in the United States, and subject in each case to customary royalty reduction provisions. Lexicon will continue to be responsible for all clinical development activities relating to type 1 diabetes and has exercised an exclusive option to co-promote and have a significant role, in collaboration with Sanofi, in the commercialization of sotagliflozin for the treatment of type 1 diabetes in the United States. Under the terms of its co-promotion option, Lexicon will fund forty percent of the commercialization costs relating to such co-promotion activities. Sanofi will be responsible for all clinical development and commercialization of sotagliflozin for the treatment of type 2 diabetes worldwide and will be solely responsible for the commercialization of sotagliflozin for the treatment of type 1 diabetes outside the United States. Lexicon shared in the funding of a portion of the planned type 2 diabetes development costs over the first three years of the collaboration, up to an aggregate of $100 million , which was satisfied in 2018. Sanofi will book sales worldwide in all indications. The parties are responsible for using commercially reasonable efforts to perform their development and commercialization obligations pursuant to mutually approved development and commercialization plans. The parties’ activities under the Sanofi Agreement are governed by a joint steering committee and certain other governance committees which reflect equal or other appropriate representation from both parties. If the applicable governance committee is not able to make a decision by consensus and the parties are not able to resolve the issue through escalation to specified senior executive officers of the parties, then Sanofi will have final decision-making authority, subject to limitations specified in the Sanofi Agreement. The Sanofi Agreement will expire upon the expiration of all applicable royalty terms for all licensed products in all countries. The royalty term for each licensed product in each country is the period commencing on the effective date of the Sanofi Agreement and ending on the latest of expiration of specified patent coverage, expiration of specified regulatory exclusivity and 10 years following the first commercial sale in the applicable country. Either party may terminate the Sanofi Agreement in the event of an uncured material breach by the other party. Prior to completion of the core development activities for type 2 diabetes specified in the development plan, Sanofi may terminate the Sanofi Agreement on a country-by-country and licensed product-by-licensed product basis, in the event of (a) notification of a material safety issue relating to the licensed product or the class of sodium-glucose cotransporters type 1 or type 2 inhibitors resulting in a recommendation or requirement that Lexicon or Sanofi cease development, (b) failure to achieve positive results with respect to certain clinical trial results, (c) the occurrence of specified fundamental adverse events or (d) the exploitation of the licensed product infringing third party intellectual property rights in specified major markets and Sanofi is unable to obtain a license to such third party intellectual property rights. The Company considered the following as its performance obligations with respect to the revenue recognition of the $300 million upfront payment: • The exclusive worldwide license granted to Sanofi to develop and commercialize sotagliflozin; • The development services Lexicon is performing for sotagliflozin relating to type 1 diabetes; and • The funding Lexicon will provide for development relating to type 2 diabetes. The Company determined that the license had stand-alone value because it is an exclusive license that gives Sanofi the right to develop and commercialize sotagliflozin or to sublicense its rights. In addition, sotagliflozin is currently in development and it is possible that Sanofi 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 Sanofi Agreement to be separate performance obligations. The Company recognized the portion of the transaction price 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 for type 1 diabetes and the obligation to provide funding for development services for type 2 diabetes over the period of time Lexicon performs services or provides funding, currently expected to be through 2020. The Company determined that the initial transaction price was the $300 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 or royalty payments. As such, the Company did not include those payments in the allocable consideration. The Company allocated the transaction price based on the relative best estimate of selling price of each performance obligation. 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: exercising the option to co-promote, 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 for type 1 diabetes 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 obligation to provide funding for type 2 diabetes by using internal estimates of the expected cash flows and timing for $100 million in funding. As a result of the allocation, the Company recognized $126.8 million of the $300 million upfront payment for the license in 2015. The Company is recognizing the $113.8 million allocated to the development services performance obligation and the $59.4 million allocated to the funding performance obligation over the estimated period of performance as the development and funding occurs. Milestone payments that are contingent upon the achievement of a substantive milestone are deemed constrained. If or when the constraint is determined to be resolved, the Company will re-evaluate the overall transaction price and recognize an adjustment on a cumulative catch-up basis in the period that the adjustment was evaluated. During 2018 , there has not been an adjustment to the transaction price. In December 2018, the parties also agreed to an allocation of the initial submission costs relating to the preparation and submission of the applications with the FDA for approval of sotagliflozin. As a result, the Company recorded $8.6 million in revenue for the year ended December 31, 2018 . Revenue recognized under the Sanofi Agreements was $33.2 million , $60.1 million and $71.3 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. Revenue for the years ended December 31, 2017 and 2016 includes $1.9 million and $6.3 million , respectively, of sales of clinical trial materials to Sanofi. Ipsen. In October 2014, Lexicon entered into a License and Collaboration Agreement, which was subsequently amended in March 2015 (collectively, the “Ipsen Agreement”), with Ipsen for the development and commercialization of XERMELO outside of the United States and Japan (the “Licensed Territory”). Under the Ipsen Agreement, Lexicon granted Ipsen an exclusive, royalty-bearing right and license under its patent rights and know-how to commercialize XERMELO in the Licensed Territory. Ipsen is responsible for using diligent efforts to commercialize XERMELO in the Licensed Territory pursuant to a mutually approved commercialization plan. Subject to certain exceptions, Lexicon was responsible for conducting clinical trials required to obtain regulatory approval for XERMELO for carcinoid syndrome in the European Union, including those contemplated by a mutually approved initial development plan, and has the first right to conduct most other clinical trials of XERMELO. Lexicon was 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 Ipsen Agreement, Ipsen has paid Lexicon an aggregate of $45.0 million through December 31, 2018 , consisting of $24.5 million in upfront payments, a $6.4 million milestone upon the acceptance of the filing submitted by Ipsen to the European Medicines Agency for XERMELO as an adjunct to somatostatin analog therapy for the long-term treatment of carcinoid syndrome, a $5.1 million milestone upon Ipsen’s receipt of approval from the European Commission for the marketing of XERMELO in all member states of the European Union, Norway and Iceland, a $3.8 million milestone upon Ipsen’s first commercial sale in Germany, a $3.8 million milestone upon Ipsen’s first commercial sale in the United Kingdom and a $1.3 million milestone upon Ipsen’s receipt of approval from Health Canada. In addition, Lexicon is eligible to receive from Ipsen (a) up to an aggregate of approximately $11.8 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. Milestone payments that are contingent upon achievement of a substantive milestone are deemed constrained. Lexicon is also entitled to tiered, escalating royalties ranging from low twenties to mid-thirties percentages of net sales of XERMELO 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 XERMELO. Lexicon and Ipsen have entered into a commercial supply agreement pursuant to which Lexicon supplies Ipsen’s commercial requirements of XERMELO, and Ipsen pays an agreed upon transfer price for such commercial supply. The Company considered the following as its performance obligations with respect to the revenue recognition of the $24.5 million upfront payment: • The exclusive license granted to Ipsen to develop and commercialize XERMELO in the Licensed Territory; • The development services Lexicon is performing for XERMELO; • The obligation to participate in committees which govern the development of XERMELO until commercialization; and • The obligation to supply commercial supply of XERMELO, under a commercial supply agreement. The Company determined that the license had stand-alone value because it is an exclusive license that grants Ipsen the right to develop and commercialize XERMELO or to sublicense its rights. In addition, at the time of the agreement, it would have been possible for Ipsen or another third party to 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 performance obligations. The Company recognized the portion of the transaction price 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, which was completed in 2018. The Company determined that the commercial supply agreement is a contingent deliverable at the onset of the Agreement. There was inherent uncertainty in obtaining regulatory approval at the time of the agreement, thus, making the applicability of the commercial supply agreement outside the control of Lexicon and Ipsen. As a result, the Company has determined the commercial supply agreement does not meet the definition of a performance obligation 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 transaction price was the $24.5 million upfront payments because they were the only payments that were 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 transaction price. The Company allocated the transaction price based on the relative best estimate of selling price of each performance obligation. 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 $24.5 million upfront payment for the license in 2014, and an additional $1.4 million in 2015 upon entering into the amendment. The Company is recognizing the $1.7 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. Milestone payments that are contingent upon the achievement of a substantive milestone are deemed constrained. If or when the constraint is determined to be resolved, the Company will re-evaluate the overall transaction price and recognize an adjustment on a cumulative catch-up basis in the period that the adjustment was evaluated. During 2018, the milestone earned when Ipsen received approval from Health Canada was determined to be a distinct performance obligation relating to the development activities and accordingly, was recognized as revenue without further allocation to the remaining performance obligations. Revenue recognized under the Agreement was $4.6 million , $16.2 million and $7.2 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. Revenue for the years ended December 31, 2018 and 2017 include $0.3 million and $0.1 million , respectively, of royalties from Ipsen. Revenue for the years ended December 31, 2018 and 2017 include $1.6 million and $0.8 million , respectively, from sales of bulk tablets of XERMELO to Ipsen. 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 made an additional award of $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 was 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 receives credits against those job obligations based on funding received by TIGM and certain related parties from sources other than the State of Texas. Subject to these credits, the State may require Lexicon to repay $2,415 for each job Lexicon falls short beginning in 2013. Lexicon has evaluated its performance obligation and has concluded that such credits are sufficient to fully offset its job obligation; however, Lexicon’s maximum aggregate exposure for such payments is approximately $14.2 million , without giving effect to any credits to which Lexicon may be entitled. Upon adoption of Topic 606, Lexicon determined that it was not probable that a significant reversal would occur and therefore, reduced deferred revenue by this amount in the accompanying consolidated balance sheets. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data (Unaudited) | Selected Quarterly Financial Data (Unaudited) The following data contain certain corrections of errors identified in previously reported amounts. See Note 2, Summary of Significant Accounting Policies. The table below sets forth certain unaudited statements of comprehensive loss data, and net loss per common share data, for each quarter of 2018 and 2017 : (in thousands, except per share data) Quarter Ended March 31 June 30 September 30 December 31 (Unaudited) 2018 Revenues $ 25,374 $ 13,798 $ 6,966 $ 17,071 Loss from operations $ (37,713 ) $ (30,272 ) $ (22,927 ) $ (12,367 ) Net loss $ (41,822 ) $ (34,549 ) $ (27,396 ) $ (16,781 ) Net loss per common share, basic and diluted $ (0.40 ) $ (0.33 ) $ (0.26 ) $ (0.16 ) Shares used in computing net loss per common share, basic and diluted 105,668 105,848 105,881 105,920 2017 Revenues $ 17,962 $ 12,087 $ 27,674 $ 33,966 Loss from operations $ (39,512 ) $ (33,491 ) $ (28,605 ) $ (29,016 ) Net loss $ (31,918 ) $ (34,657 ) $ (29,809 ) $ (26,609 ) Net loss per common share, basic and diluted $ (0.31 ) $ (0.33 ) $ (0.28 ) $ (0.25 ) Shares used in computing net loss per common share, basic and diluted 104,461 105,300 105,582 105,588 For all periods presented, the weighted average number of shares outstanding are the same for both basic and diluted net loss per common share. For these periods, shares associated with convertible debt, stock options and restricted stock units are not included in the weighted average number of shares of common stock outstanding because they are antidilutive. The impact of the error corrections are presented on a “Previously reported,” “Adjustments,” and “As adjusted” basis in the following quarterly financial data for 2017 and 2018 (in thousands, except per share data): Three Months Ended March 31, 2018 Three Months Ended March 31, 2017 Previously reported Adjustments As adjusted Previously reported Adjustments As adjusted Revenues $ 25,207 167 $ 25,374 $ 18,293 (331 ) $ 17,962 Loss from operations $ (37,966 ) 253 $ (37,713 ) $ (42,485 ) 2,973 $ (39,512 ) Net loss $ (42,075 ) 253 $ (41,822 ) $ (34,891 ) 2,973 $ (31,918 ) Net loss per common share, basic and diluted $ (0.40 ) — $ (0.40 ) $ (0.33 ) 0.02 $ (0.31 ) Shares used in computing net loss per common share, basic and diluted 105,668 105,668 104,461 104,461 Three Months Ended June 30, 2018 Three Months Ended June 30, 2017 Previously reported Adjustments As adjusted Previously reported Adjustments As adjusted Revenues: $ 13,753 45 $ 13,798 $ 12,053 34 $ 12,087 Loss from operations $ (30,429 ) 157 $ (30,272 ) $ (33,893 ) 402 $ (33,491 ) Net loss $ (34,706 ) 157 $ (34,549 ) $ (35,059 ) 402 $ (34,657 ) Net loss per common share, basic and diluted $ (0.33 ) — $ (0.33 ) $ (0.33 ) — $ (0.33 ) Shares used in computing net loss per common share, basic and diluted 105,848 105,848 105,300 105,300 Three Months Ended September 30, 2018 Three Months Ended September 30, 2017 Previously reported Adjustment As adjusted Previously reported Adjustment As adjusted Revenues: $ 6,856 110 $ 6,966 $ 26,942 732 $ 27,674 Loss from operations $ (23,043 ) 116 $ (22,927 ) $ (29,518 ) 913 $ (28,605 ) Net loss $ (27,512 ) 116 $ (27,396 ) $ (30,722 ) 913 $ (29,809 ) Net loss per common share, basic and diluted $ (0.26 ) — $ (0.26 ) $ (0.29 ) 0.01 $ (0.28 ) Shares used in computing net loss per common share, basic and diluted 105,881 105,881 105,582 105,582 Three Months Ended December 31, 2017 Previously reported Adjustment As adjusted Revenues: $ 33,047 919 $ 33,966 Loss from operations $ (30,785 ) 1,769 $ (29,016 ) Net loss $ (28,378 ) 1,769 $ (26,609 ) Net loss per common share, basic and diluted $ (0.27 ) 0.02 $ (0.25 ) Shares used in computing net loss per common share, basic and diluted 105,588 105,588 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [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 (“GAAP”) 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, 2018 and December 31, 2017 , short-term investments consist of U.S. treasury bills and corporate debt securities. The Company’s short-term investments 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. |
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. |
Inventory, Policy [Policy Text Block] | Inventory: Inventories are determined at the lower of cost or market value with cost determined under the specific identification method and may consist of raw materials, work in process and finished goods. |
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 Europe and 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, development and commercialization 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, product sales, government grants and contracts and compound library sales. |
Intangible Assets, Finite-Lived, Policy [Policy Text Block] | Other Intangible Assets: Other intangible assets, net consist of in-process research and development acquired in business combinations, which are reported at fair value, less accumulated amortization. Intangible assets with finite lives are amortized using the straight-line method over their estimated useful lives. |
Property and Equipment | Property and Equipment: Property and equipment that is held and used is 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. Recoverability of assets to be held and used is measured by comparison of the carrying amount of an asset to future net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount that the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. |
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. Indefinite lived intangible assets are also tested annually for impairment and whenever indicators of impairment are present. When performing the impairment assessment, the Company first assesses qualitative factors to determine whether it is necessary to recalculate the fair value of its intangible assets. If management believes, as a result of the qualitative assessment, that it is more likely than not that the fair value of the intangible assets is less than its carrying amount, the Company calculates the asset’s fair value. If the carrying value of the asset exceeds its fair value, then the intangible asset is written down to its fair value. |
Revenue Recognition, Policy | Revenue Recognition: Product Revenues Product revenues consist of commercial sales of XERMELO in the United States and sales of bulk tablets of XERMELO to Ipsen. Product revenues are recognized when the customer obtains control of the Company’s product, which occurs upon delivery to the customer. The Company recognizes product revenue net of applicable reserves for variable consideration, including allowances for customer credits, estimated rebates, chargebacks, discounts, returns, distribution service fees, and government rebates, such as Medicare Part D coverage gap reimbursements in the United States, as discussed below. These estimates are based on the most likely amount method for relevant factors such as current contractual and statutory requirements, industry data and forecasted customer buying and payment patterns. Product shipping and handling costs are considered a fulfillment activity when control transfers to the Company’s customers and such costs are included in cost of sales. Customer Credits: The Company’s specialty pharmacy customers are offered various forms of consideration, including allowances, service fees and prompt payment discounts. The Company expects that the specialty pharmacies will earn prompt payment discounts. As a result, the Company deducts the full amount of those discounts from total product sales when revenues are recognized. Service fees are also deducted from product sales as they are earned. Rebates: Allowances for rebates include mandated discounts under the Medicaid Drug Rebate Program. Rebate amounts are based upon contractual agreements or legal requirements with public sector (e.g., Medicaid) benefit providers. Rebates are amounts owed after the final dispensing of the product to a benefit plan participant and are based upon contractual agreements or legal requirements with public sector benefit providers. The allowance for rebates is based on statutory discount rates and expected utilization. The Company’s estimates for expected utilization of rebates are based on third party market research data and data received from the specialty pharmacies. Rebates are generally invoiced and paid in arrears so that the accrual balance consists of an estimate of the amount expected to be incurred for the current quarter’s activity, plus an accrual balance for known unpaid rebates from the prior quarter. If actual future rebates vary from estimates, the Company may need to adjust prior period accruals, which would affect revenue in the period of adjustment. Chargebacks: Chargebacks are discounts that occur when contracted customers purchase directly from a specialty pharmacy. Contracted customers, which currently consist primarily of Public Health Service Institutions, non-profit clinics, and federal government entities purchasing via the Federal Supply Schedule, generally purchase the product at a discounted price. The specialty pharmacies, in turn, charge back to Lexicon the difference between the price initially paid by the specialty pharmacies and the discounted price paid to the specialty pharmacies by the customer. The allowance for chargeback is based on known sales to contracted customers. Medicare Part D Coverage Gap: The Medicare Part D prescription drug benefit mandates manufacturers to fund 50% of the Medicare Part D insurance coverage gap for prescription drugs sold to eligible patients. The Company’s estimates for the expected Medicare Part D coverage gap are based on data received from the specialty pharmacies. Funding of the coverage gap is generally invoiced and paid in arrears so that the accrual balance consists of an estimate of the amount expected to be incurred for the current quarter’s activity, plus an accrual balance for known prior quarters. If actual future funding varies from estimates, the Company may need to adjust prior period accruals, which would affect revenues in the period of adjustment. Co-payment assistance: Patients who have commercial insurance and meet certain eligibility requirements may receive co-payment assistance. The Company accrues a liability for co-payment assistance based on actual program participation and estimates of program redemption using data provided by third-party administrators. Collaborative Agreements |
Cost of Sales | Cost of Sales: Cost of sales consists of third-party manufacturing costs, freight and indirect overhead costs associated with sales of XERMELO. The Company began capitalizing inventory during 2017 once the FDA approved XERMELO as the related costs were expected to be recoverable through the commercialization of the product. Costs incurred prior to approval of XERMELO have been recorded as research and development expense in the consolidated statements of comprehensive loss. As a result, cost of sales for approximately the next eighteen months will reflect a lower average per unit cost of materials. Product shipping and handling costs are included in cost of sales. Cost of sales also includes the amortization of the in-process research and development intangible asset for XERMELO using the straight-line method over the estimated useful life of 14 years . |
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, 2018 , stock-based compensation cost for all outstanding unvested options and restricted stock units was $22.3 million , which is expected to be recognized over a weighted-average period of 1.2 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 different assumptions used for expected option lives. Historical data is used to estimate the expected option life for each group. 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 and restricted stock units are not included because they are antidilutive. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Finite-lived Intangible Assets Amortization Expense [Table Text Block] | Estimated future amortization expense for intangible assets as of December 31, 2018 is as follows: For the Year Ending December 31 (in thousands) 2019 $ 1,766 2020 1,766 2021 1,766 2021 1,766 2023 1,766 Thereafter 12,654 $ 21,484 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | Expected Volatility Risk-free Interest Rate Expected Term Dividend Rate December 31, 2018: Employees 58% 2.6% 4 0 % Officers and non-employee directors 63% 2.8% 8 0 % December 31, 2017: Employees 61% 1.7% 4 0 % Officers and non-employee directors 70% 2.2% 8 0 % December 31, 2016: Employees 63% 1.1% 4 0 % Officers and non-employee directors 83% 1.6% 8 0 % |
Schedule of Error Corrections and Prior Period Adjustments | The effects of the corrections of the errors on the Company’s consolidated statements of comprehensive loss and balance sheets are presented in the tables below. The corrections of the errors had no effect on the previously reported total amounts of operating, investing, and financing cash flows on the Company’s consolidated statements of cash flows. Years ended December 31, 2017 2016 Previously reported Adjustments As adjusted Previously reported Adjustments As adjusted Revenues: Net product revenue $ 15,890 $ — $ 15,890 $ — $ — $ — Collaborative agreements 74,267 1,354 75,621 83,182 (4,081 ) 79,101 Royalties and other revenue 178 — 178 155 — 155 Total revenues 90,335 1,354 91,689 83,337 (4,081 ) 79,256 Operating expenses: Cost of sales (including finite-lived intangible asset amortization) 1,899 — 1,899 — — — Research and development, including stock-based compensation of $4,905 and $3,938, respectively 156,813 (4,590 ) 152,223 178,151 (14,178 ) 163,973 Increase (decrease) in fair value of Symphony Icon, Inc. purchase liability 2,101 — 2,101 (703 ) — (703 ) Selling, general and administrative, including stock-based compensation of $4,567 and $3,514, respectively 66,203 (113 ) 66,090 43,044 113 43,157 Total operating expenses 227,016 (4,703 ) 222,313 220,492 (14,065 ) 206,427 Loss from operations (136,681 ) 6,057 (130,624 ) (137,155 ) 9,984 (127,171 ) Interest expense (6,984 ) — (6,984 ) (6,567 ) — (6,567 ) Interest and other income, net 1,954 — 1,954 2,293 — 2,293 Net loss before taxes (141,711 ) 6,057 (135,654 ) (141,429 ) 9,984 (131,445 ) Income tax benefit 12,661 — 12,661 — — — Net loss $ (129,050 ) $ 6,057 $ (122,993 ) $ (141,429 ) $ 9,984 $ (131,445 ) Net loss per common share, basic and diluted $ (1.23 ) $ 0.06 $ (1.17 ) $ (1.36 ) $ 0.09 $ (1.27 ) Shares used in computing net loss per common share, basic and diluted 105,237 105,237 103,863 103,863 December 31, 2017 Previously reported Adjustment As revised Assets Current assets: Cash and cash equivalents $ 61,661 $ — $ 61,661 Short-term investments 249,127 — 249,127 Accounts receivable, net of allowances of $4 4,825 — 4,825 Inventory 1,948 — 1,948 Prepaid expenses and other current assets 4,434 — 4,434 Total current assets 321,995 — 321,995 Property and equipment, net of accumulated depreciation and amortization of $58,623 17,687 — 17,687 Goodwill 44,543 — 44,543 Other intangible assets 51,885 — 51,885 Other assets 429 — 429 Total assets $ 436,539 $ — $ 436,539 Liabilities and Equity Current liabilities: Accounts payable $ 57,652 $ (18,890 ) $ 38,762 Accrued liabilities 12,282 — 12,282 Current portion of deferred revenue 40,099 252 40,351 Current portion of long-term debt, net of deferred financing costs 14,094 — 14,094 Total current liabilities 124,127 (18,638 ) 105,489 Deferred revenue, net of current portion 22,428 2,475 24,903 Long-term debt, net of deferred financing costs 231,576 — 231,576 Deferred tax liabilities 6,014 — 6,014 Other long-term liabilities 292 — 292 Total liabilities 384,437 (16,163 ) 368,274 Commitments and contingencies Equity: Preferred stock, $.01 par value; 5,000 shares authorized; no shares issued and outstanding — — — Common stock, $.001 par value; 225,000 shares authorized; 105,711 shares issued 106 — 106 Additional paid-in capital 1,435,526 — 1,435,526 Accumulated deficit (1,381,404 ) 16,163 (1,365,241 ) Accumulated other comprehensive loss (222 ) — (222 ) Treasury stock, at cost, 122 shares, respectively (1,904 ) — (1,904 ) Total (deficit) equity 52,102 16,163 68,265 Total liabilities and (deficit) equity $ 436,539 $ — $ 436,539 The impact of the error corrections are presented on a “Previously reported,” “Adjustments,” and “As adjusted” basis in the following quarterly financial data for 2017 and 2018 (in thousands, except per share data): Three Months Ended March 31, 2018 Three Months Ended March 31, 2017 Previously reported Adjustments As adjusted Previously reported Adjustments As adjusted Revenues $ 25,207 167 $ 25,374 $ 18,293 (331 ) $ 17,962 Loss from operations $ (37,966 ) 253 $ (37,713 ) $ (42,485 ) 2,973 $ (39,512 ) Net loss $ (42,075 ) 253 $ (41,822 ) $ (34,891 ) 2,973 $ (31,918 ) Net loss per common share, basic and diluted $ (0.40 ) — $ (0.40 ) $ (0.33 ) 0.02 $ (0.31 ) Shares used in computing net loss per common share, basic and diluted 105,668 105,668 104,461 104,461 Three Months Ended June 30, 2018 Three Months Ended June 30, 2017 Previously reported Adjustments As adjusted Previously reported Adjustments As adjusted Revenues: $ 13,753 45 $ 13,798 $ 12,053 34 $ 12,087 Loss from operations $ (30,429 ) 157 $ (30,272 ) $ (33,893 ) 402 $ (33,491 ) Net loss $ (34,706 ) 157 $ (34,549 ) $ (35,059 ) 402 $ (34,657 ) Net loss per common share, basic and diluted $ (0.33 ) — $ (0.33 ) $ (0.33 ) — $ (0.33 ) Shares used in computing net loss per common share, basic and diluted 105,848 105,848 105,300 105,300 Three Months Ended September 30, 2018 Three Months Ended September 30, 2017 Previously reported Adjustment As adjusted Previously reported Adjustment As adjusted Revenues: $ 6,856 110 $ 6,966 $ 26,942 732 $ 27,674 Loss from operations $ (23,043 ) 116 $ (22,927 ) $ (29,518 ) 913 $ (28,605 ) Net loss $ (27,512 ) 116 $ (27,396 ) $ (30,722 ) 913 $ (29,809 ) Net loss per common share, basic and diluted $ (0.26 ) — $ (0.26 ) $ (0.29 ) 0.01 $ (0.28 ) Shares used in computing net loss per common share, basic and diluted 105,881 105,881 105,582 105,582 Three Months Ended December 31, 2017 Previously reported Adjustment As adjusted Revenues: $ 33,047 919 $ 33,966 Loss from operations $ (30,785 ) 1,769 $ (29,016 ) Net loss $ (28,378 ) 1,769 $ (26,609 ) Net loss per common share, basic and diluted $ (0.27 ) 0.02 $ (0.25 ) Shares used in computing net loss per common share, basic and diluted 105,588 105,588 |
Cash and Cash Equivalents and_2
Cash and Cash Equivalents and Investments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Cash and Cash Equivalents and Investments [Abstract] | |
Schedule of Cash, Cash Equivalents and Short-term Investments | As of December 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value (in thousands) Cash and cash equivalents $ 80,386 $ — $ — $ 80,386 Securities maturing within one year: U.S. treasury securities 73,983 — (9 ) 73,974 Corporate debt securities 5,695 — (3 ) 5,692 Total short-term investments $ 79,678 $ — $ (12 ) $ 79,666 Total cash and cash equivalents and investments $ 160,064 $ — $ (12 ) $ 160,052 As of December 31, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value (in thousands) Cash and cash equivalents $ 61,661 $ — $ — $ 61,661 Securities maturing within one year: U.S. treasury securities 222,316 — (168 ) 222,148 Corporate debt securities 27,033 — (54 ) 26,979 Total short-term investments $ 249,349 $ — $ (222 ) $ 249,127 Total cash and cash equivalents and investments $ 311,010 $ — $ (222 ) $ 310,788 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Measurements [Abstract] | |
Fair Value, by Balance Sheet Grouping | Assets and Liabilities at Fair Value As of December 31, 2018 Level 1 Level 2 Level 3 Total (in thousands) Assets Cash and cash equivalents $ 80,386 $ — $ — $ 80,386 Short-term investments 73,974 5,692 — 79,666 Total cash and cash equivalents and investments $ 154,360 $ 5,692 $ — $ 160,052 Assets and Liabilities at Fair Value As of December 31, 2017 Level 1 Level 2 Level 3 Total (in thousands) Assets Cash and cash equivalents $ 61,661 $ — $ — $ 61,661 Short-term investments 222,148 26,979 — 249,127 Total cash and cash equivalents and investments $ 283,809 $ 26,979 $ — $ 310,788 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | Other Long-term Liabilities (in thousands) Balance at December 31, 2015 22,815 Change in valuation of purchase consideration payable to former Symphony Icon stockholders (703 ) Payment of contingent payment obligation with cash (3,200 ) Balance at December 31, 2016 18,912 Change in valuation of purchase consideration payable to former Symphony Icon stockholders 2,101 Payment of contingent payment obligation with common stock and cash (21,013 ) Balance at December 31, 2017 $ — |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property and Equipment [Abstract] | |
Property, Plant and Equipment | Estimated Useful Lives As of December 31, In Years 2018 2017 (in thousands) Computers and software 3-5 $ 4,557 $ 4,605 Furniture and fixtures 5-7 5,644 6,006 Laboratory equipment 3-7 3,378 3,423 Leasehold improvements 3-7 416 400 Buildings 15-40 59,212 59,212 Land — 2,664 2,664 Total property and equipment 75,871 76,310 Less: Accumulated depreciation and amortization (60,006 ) (58,623 ) Net property and equipment $ 15,865 $ 17,687 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Taxes [Abstract] | |
Schedule of Deferred Tax Assets and Liabilities | As of December 31, 2018 2017 (in thousands) Deferred tax assets: Net operating loss carryforwards $ 206,789 $ 183,839 Research and development tax credits 47,087 46,574 Orphan drug credits 24,524 24,524 Capitalized research and development 71,047 68,603 Stock-based compensation 4,641 3,923 Deferred revenue 5,458 13,523 Interest 3,625 — Other 6,044 5,656 Total deferred tax assets 369,215 346,642 Deferred tax liabilities: Deferred tax liability related to acquisition of Symphony Icon (10,525 ) (10,896 ) Other (2 ) (1 ) Total deferred tax liabilities (10,527 ) (10,897 ) Less: valuation allowance (364,702 ) (341,759 ) Net deferred tax liabilities $ (6,014 ) $ (6,014 ) |
Debt Obligations Debt Obligatio
Debt Obligations Debt Obligations (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Obligations [Abstract] | |
Schedule of Maturities of Long-term Debt [Table Text Block] | The following table includes the aggregate scheduled future principal payments of the Company’s long-term debt as of December 31, 2018 : For the Year Ending December 31 (in thousands) 2019 $ 1,285 2020 11,130 2021 87,500 2022 150,000 2023 — Thereafter — Total debt 249,915 Less deferred financing costs (4,913 ) Less current portion (1,115 ) Total long-term debt $ 243,887 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | For the Year Ending December 31 (in thousands) 2019 $ 657 2020 637 2021 646 2022 658 2023 — Thereafter — Total $ 2,598 |
Equity Incentive Awards (Tables
Equity Incentive Awards (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity Incentive Awards [Abstract] | |
Schedule of Share-based Compensation, Stock Options, Activity | 2018 2017 2016 (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 4,961 $ 11.17 4,834 $ 11.24 4,217 $ 12.35 Granted 1,916 10.00 892 14.31 1,370 10.40 Exercised (97 ) 7.55 (458 ) 11.97 (495 ) 12.17 Expired (239 ) 14.21 (157 ) 26.42 (195 ) 27.33 Forfeited (389 ) 12.04 (150 ) 13.84 (63 ) 10.45 Outstanding at end of year 6,152 10.68 4,961 11.17 4,834 11.24 Exercisable at end of year 3,620 $ 10.72 3,077 $ 10.95 2,727 $ 12.55 |
Schedule of Nonvested Restricted Stock Units Activity | Shares Weighted Average Grant Date Fair Value (in thousands) Outstanding at December 31, 2017 946 $ 10.50 Granted 872 9.79 Vested (334 ) 9.85 Forfeited (198 ) 10.59 Outstanding at December 31, 2018 1,286 $ 10.17 |
Selected Quarterly Financial _2
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information | The table below sets forth certain unaudited statements of comprehensive loss data, and net loss per common share data, for each quarter of 2018 and 2017 : (in thousands, except per share data) Quarter Ended March 31 June 30 September 30 December 31 (Unaudited) 2018 Revenues $ 25,374 $ 13,798 $ 6,966 $ 17,071 Loss from operations $ (37,713 ) $ (30,272 ) $ (22,927 ) $ (12,367 ) Net loss $ (41,822 ) $ (34,549 ) $ (27,396 ) $ (16,781 ) Net loss per common share, basic and diluted $ (0.40 ) $ (0.33 ) $ (0.26 ) $ (0.16 ) Shares used in computing net loss per common share, basic and diluted 105,668 105,848 105,881 105,920 2017 Revenues $ 17,962 $ 12,087 $ 27,674 $ 33,966 Loss from operations $ (39,512 ) $ (33,491 ) $ (28,605 ) $ (29,016 ) Net loss $ (31,918 ) $ (34,657 ) $ (29,809 ) $ (26,609 ) Net loss per common share, basic and diluted $ (0.31 ) $ (0.33 ) $ (0.28 ) $ (0.25 ) Shares used in computing net loss per common share, basic and diluted 104,461 105,300 105,582 105,588 |
Schedule of Error Corrections and Prior Period Adjustments | The effects of the corrections of the errors on the Company’s consolidated statements of comprehensive loss and balance sheets are presented in the tables below. The corrections of the errors had no effect on the previously reported total amounts of operating, investing, and financing cash flows on the Company’s consolidated statements of cash flows. Years ended December 31, 2017 2016 Previously reported Adjustments As adjusted Previously reported Adjustments As adjusted Revenues: Net product revenue $ 15,890 $ — $ 15,890 $ — $ — $ — Collaborative agreements 74,267 1,354 75,621 83,182 (4,081 ) 79,101 Royalties and other revenue 178 — 178 155 — 155 Total revenues 90,335 1,354 91,689 83,337 (4,081 ) 79,256 Operating expenses: Cost of sales (including finite-lived intangible asset amortization) 1,899 — 1,899 — — — Research and development, including stock-based compensation of $4,905 and $3,938, respectively 156,813 (4,590 ) 152,223 178,151 (14,178 ) 163,973 Increase (decrease) in fair value of Symphony Icon, Inc. purchase liability 2,101 — 2,101 (703 ) — (703 ) Selling, general and administrative, including stock-based compensation of $4,567 and $3,514, respectively 66,203 (113 ) 66,090 43,044 113 43,157 Total operating expenses 227,016 (4,703 ) 222,313 220,492 (14,065 ) 206,427 Loss from operations (136,681 ) 6,057 (130,624 ) (137,155 ) 9,984 (127,171 ) Interest expense (6,984 ) — (6,984 ) (6,567 ) — (6,567 ) Interest and other income, net 1,954 — 1,954 2,293 — 2,293 Net loss before taxes (141,711 ) 6,057 (135,654 ) (141,429 ) 9,984 (131,445 ) Income tax benefit 12,661 — 12,661 — — — Net loss $ (129,050 ) $ 6,057 $ (122,993 ) $ (141,429 ) $ 9,984 $ (131,445 ) Net loss per common share, basic and diluted $ (1.23 ) $ 0.06 $ (1.17 ) $ (1.36 ) $ 0.09 $ (1.27 ) Shares used in computing net loss per common share, basic and diluted 105,237 105,237 103,863 103,863 December 31, 2017 Previously reported Adjustment As revised Assets Current assets: Cash and cash equivalents $ 61,661 $ — $ 61,661 Short-term investments 249,127 — 249,127 Accounts receivable, net of allowances of $4 4,825 — 4,825 Inventory 1,948 — 1,948 Prepaid expenses and other current assets 4,434 — 4,434 Total current assets 321,995 — 321,995 Property and equipment, net of accumulated depreciation and amortization of $58,623 17,687 — 17,687 Goodwill 44,543 — 44,543 Other intangible assets 51,885 — 51,885 Other assets 429 — 429 Total assets $ 436,539 $ — $ 436,539 Liabilities and Equity Current liabilities: Accounts payable $ 57,652 $ (18,890 ) $ 38,762 Accrued liabilities 12,282 — 12,282 Current portion of deferred revenue 40,099 252 40,351 Current portion of long-term debt, net of deferred financing costs 14,094 — 14,094 Total current liabilities 124,127 (18,638 ) 105,489 Deferred revenue, net of current portion 22,428 2,475 24,903 Long-term debt, net of deferred financing costs 231,576 — 231,576 Deferred tax liabilities 6,014 — 6,014 Other long-term liabilities 292 — 292 Total liabilities 384,437 (16,163 ) 368,274 Commitments and contingencies Equity: Preferred stock, $.01 par value; 5,000 shares authorized; no shares issued and outstanding — — — Common stock, $.001 par value; 225,000 shares authorized; 105,711 shares issued 106 — 106 Additional paid-in capital 1,435,526 — 1,435,526 Accumulated deficit (1,381,404 ) 16,163 (1,365,241 ) Accumulated other comprehensive loss (222 ) — (222 ) Treasury stock, at cost, 122 shares, respectively (1,904 ) — (1,904 ) Total (deficit) equity 52,102 16,163 68,265 Total liabilities and (deficit) equity $ 436,539 $ — $ 436,539 The impact of the error corrections are presented on a “Previously reported,” “Adjustments,” and “As adjusted” basis in the following quarterly financial data for 2017 and 2018 (in thousands, except per share data): Three Months Ended March 31, 2018 Three Months Ended March 31, 2017 Previously reported Adjustments As adjusted Previously reported Adjustments As adjusted Revenues $ 25,207 167 $ 25,374 $ 18,293 (331 ) $ 17,962 Loss from operations $ (37,966 ) 253 $ (37,713 ) $ (42,485 ) 2,973 $ (39,512 ) Net loss $ (42,075 ) 253 $ (41,822 ) $ (34,891 ) 2,973 $ (31,918 ) Net loss per common share, basic and diluted $ (0.40 ) — $ (0.40 ) $ (0.33 ) 0.02 $ (0.31 ) Shares used in computing net loss per common share, basic and diluted 105,668 105,668 104,461 104,461 Three Months Ended June 30, 2018 Three Months Ended June 30, 2017 Previously reported Adjustments As adjusted Previously reported Adjustments As adjusted Revenues: $ 13,753 45 $ 13,798 $ 12,053 34 $ 12,087 Loss from operations $ (30,429 ) 157 $ (30,272 ) $ (33,893 ) 402 $ (33,491 ) Net loss $ (34,706 ) 157 $ (34,549 ) $ (35,059 ) 402 $ (34,657 ) Net loss per common share, basic and diluted $ (0.33 ) — $ (0.33 ) $ (0.33 ) — $ (0.33 ) Shares used in computing net loss per common share, basic and diluted 105,848 105,848 105,300 105,300 Three Months Ended September 30, 2018 Three Months Ended September 30, 2017 Previously reported Adjustment As adjusted Previously reported Adjustment As adjusted Revenues: $ 6,856 110 $ 6,966 $ 26,942 732 $ 27,674 Loss from operations $ (23,043 ) 116 $ (22,927 ) $ (29,518 ) 913 $ (28,605 ) Net loss $ (27,512 ) 116 $ (27,396 ) $ (30,722 ) 913 $ (29,809 ) Net loss per common share, basic and diluted $ (0.26 ) — $ (0.26 ) $ (0.29 ) 0.01 $ (0.28 ) Shares used in computing net loss per common share, basic and diluted 105,881 105,881 105,582 105,582 Three Months Ended December 31, 2017 Previously reported Adjustment As adjusted Revenues: $ 33,047 919 $ 33,966 Loss from operations $ (30,785 ) 1,769 $ (29,016 ) Net loss $ (28,378 ) 1,769 $ (26,609 ) Net loss per common share, basic and diluted $ (0.27 ) 0.02 $ (0.25 ) Shares used in computing net loss per common share, basic and diluted 105,588 105,588 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies Inventory (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Accounting Policies [Abstract] | ||
Inventory, Raw Materials, Gross | $ 3,564 | $ 616 |
Inventory, Work in Process, Gross | 232 | 149 |
Inventory, Finished Goods, Gross | 884 | 1,183 |
Inventory, Gross | $ 4,680 | $ 1,948 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies Concentration of Credit Risk (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accounting Policies [Abstract] | |||
Disclosure On Geographic Areas Revenue From External Customers Attributed to France | 60.00% | 83.00% | 99.00% |
Disclosure on Geographic Areas, Revenue from External Customers Attributed to Entity's Country of Domicile, Percent | 40.00% | 17.00% | 1.00% |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies Segment Information and Signficant Customers (Details) - segment | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accounting Policies [Abstract] | |||
Number of operating segments | 1 | ||
Entity Wide Revenue Sanofi Percentage | 53.00% | 66.00% | 90.00% |
Biologics customer concentration | 25.00% | ||
LXRX Diplomat customer concentration | 14.00% | ||
Entity Wide Revenue Ipsen Percentage | 18.00% |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies Intangible asset (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | |||
Intangible Assets, Gross (Excluding Goodwill) | $ (1,800) | $ (1,500) | |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 1,766 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 1,766 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 1,766 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 1,766 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 1,766 | ||
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | 12,654 | ||
Finite-Lived Intangible Assets, Net | $ 21,484 | ||
XERMELO Intangible Assets Finite Lived | $ 24,700 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Property and Equipment (Details) | 1 Months Ended | 12 Months Ended |
Aug. 31, 2018 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | ||
Estimated useful life of assets | 10 years | |
Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life of assets | 3 years | |
Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life of assets | 40 years |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies Impairment of Long-Lived Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accounting Policies [Abstract] | |||
Impairment of Intangible Assets (Excluding Goodwill) | $ 0 | $ 0 | $ 0 |
Asset Impairment Charges | $ 0 | $ 0 | $ 0 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies Goodwill (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accounting Policies [Abstract] | |||
Goodwill, Impairment Loss | $ 0 | $ 0 | $ 0 |
Summary of Significant Accou_11
Summary of Significant Accounting Policies - Cost of Sales (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Periot to reflect a lower average per unit cost of materials | 18 months |
In-Process Research and Development | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life | 14 years |
Summary of Significant Accou_12
Summary of Significant Accounting Policies Stock-Based Compensation (Details 1) - Equity Option [Member] | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term, Employees | 4 years | 4 years | 4 years |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate, Employee | 2.60% | 1.70% | 1.10% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected VolatilityRate, Employees | 58.00% | 61.00% | 63.00% |
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, Risk Free Interest Rate, Officers and Non-employee Directors | 2.80% | 2.20% | 1.60% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate, Officers and Non-employee Directors | 63.00% | 70.00% | 83.00% |
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% |
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 |
Summary of Significant Accou_13
Summary of Significant Accounting Policies Stock-based Compensation (Details 2) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Accounting Policies [Abstract] | |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | $ 22.3 |
Employee Service Share-based Compensation, Outstanding, Weighted Average Remaining Vesting Period | 1 year 2 months |
Summary of Significant Accou_14
Summary of Significant Accounting Policies - Correction of errors in previously reported consolidated financial statements (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||
Net loss | $ (16,781) | $ (27,396) | $ (34,549) | $ (41,822) | $ (26,609) | $ (29,809) | $ (34,657) | $ (31,918) | $ (120,548) | $ (122,993) | $ (131,445) |
Accumulated deficit | (1,471,577) | (1,365,241) | (1,471,577) | (1,365,241) | |||||||
Adjustments | |||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||
Accruals of expenses | $ 19,000 | $ 19,000 | |||||||||
Net loss | $ 116 | $ 157 | $ 253 | 1,769 | $ 913 | $ 402 | $ 2,973 | 6,057 | 9,984 | ||
Accumulated deficit | 16,163 | 16,163 | |||||||||
Immaterial Errors Related To Research And Development And General And Administrative Expense | Adjustments | |||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||
Net loss | 6,100 | 10,000 | |||||||||
Accumulated deficit | $ 16,100 | $ 16,100 | $ 100 |
Summary of Significant Accou_15
Summary of Significant Accounting Policies - Schedule of Error Corrections and Prior Period Adjustments (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues: | ||||||||||||
Net product revenue | $ 26,583 | $ 15,890 | $ 0 | |||||||||
Collaborative agreements | 36,271 | 75,621 | 79,101 | |||||||||
Royalties and other revenue | 355 | 178 | 155 | |||||||||
Total revenues | $ 17,071 | $ 6,966 | $ 13,798 | $ 25,374 | $ 33,966 | $ 27,674 | $ 12,087 | $ 17,962 | 63,209 | 91,689 | 79,256 | |
Operating expenses: | ||||||||||||
Cost of sales (including finite-lived intangible asset amortization) | 2,491 | 1,899 | 0 | |||||||||
Research and development, including stock-based compensation of $4,905 and $3,938, respectively | 100,243 | 152,223 | 163,973 | |||||||||
Increase (decrease) in fair value of Symphony Icon, Inc. purchase liability | 0 | 2,101 | (703) | |||||||||
Selling, general and administrative, including stock-based compensation of $4,567 and $3,514, respectively | 63,754 | 66,090 | 43,157 | |||||||||
Total operating expenses | 166,488 | 222,313 | 206,427 | |||||||||
Income (loss) from operations | (12,367) | (22,927) | (30,272) | (37,713) | (29,016) | (28,605) | (33,491) | (39,512) | (103,279) | (130,624) | (127,171) | |
Interest expense | (20,777) | (6,984) | (6,567) | |||||||||
Interest and other income, net | 3,508 | 1,954 | 2,293 | |||||||||
Net loss before taxes | (120,548) | (135,654) | (131,445) | |||||||||
Income tax benefit | 0 | 12,661 | 0 | |||||||||
Net loss | $ (16,781) | $ (27,396) | $ (34,549) | $ (41,822) | $ (26,609) | $ (29,809) | $ (34,657) | $ (31,918) | $ (120,548) | $ (122,993) | $ (131,445) | |
Net loss per common share, basic and diluted (usd per share) | $ (0.16) | $ (0.26) | $ (0.33) | $ (0.40) | $ (0.25) | $ (0.28) | $ (0.33) | $ (0.31) | $ (1.14) | $ (1.17) | $ (1.27) | |
Shares used in computing net loss per common share, basic and diluted | 105,920,000 | 105,881,000 | 105,848,000 | 105,668,000 | 105,588,000 | 105,582,000 | 105,300,000 | 104,461,000 | 105,830,000 | 105,237,000 | 103,863,000 | |
Stock-based compensation expense associated with research and development expense | $ 6,010 | $ 4,905 | $ 3,938 | |||||||||
Stock-based compensation expense associated with general and administrative expense | 5,686 | 4,567 | 3,514 | |||||||||
Current assets: | ||||||||||||
Cash and cash equivalents | $ 80,386 | $ 61,661 | 80,386 | 61,661 | 46,600 | $ 202,989 | ||||||
Short-term investments | 79,666 | 249,127 | 79,666 | 249,127 | ||||||||
Accounts receivable, net of allowances of $4 | 5,924 | 4,825 | 5,924 | 4,825 | ||||||||
Inventory | 4,680 | 1,948 | 4,680 | 1,948 | ||||||||
Prepaid expenses and other current assets | 2,668 | 4,434 | 2,668 | 4,434 | ||||||||
Total current assets | 173,324 | 321,995 | 173,324 | 321,995 | ||||||||
Property and equipment, net of accumulated depreciation and amortization of $58,623 | 15,865 | 17,687 | 15,865 | 17,687 | ||||||||
Goodwill | 44,543 | 44,543 | 44,543 | 44,543 | ||||||||
Other intangible assets | 50,119 | 51,885 | 50,119 | 51,885 | ||||||||
Other assets | 285 | 429 | 285 | 429 | ||||||||
Total assets | 284,136 | 436,539 | 284,136 | 436,539 | ||||||||
Current liabilities: | ||||||||||||
Accounts payable | 17,759 | 38,762 | 17,759 | 38,762 | ||||||||
Accrued liabilities | 14,482 | 12,282 | 14,482 | 12,282 | ||||||||
Current portion of deferred revenue | 3,395 | 40,351 | 3,395 | 40,351 | ||||||||
Current portion of long-term debt, net of deferred financing costs | 1,115 | 14,094 | 1,115 | 14,094 | ||||||||
Total current liabilities | 36,751 | 105,489 | 36,751 | 105,489 | ||||||||
Deferred revenue, net of current portion | 23,651 | 24,903 | 23,651 | 24,903 | ||||||||
Long-term debt, net of deferred financing costs | 243,887 | 231,576 | 243,887 | 231,576 | ||||||||
Deferred tax liabilities | 6,014 | 6,014 | 6,014 | 6,014 | ||||||||
Other long-term liabilities | 238 | 292 | 238 | 292 | ||||||||
Total liabilities | 310,541 | 368,274 | 310,541 | 368,274 | ||||||||
Commitments and contingencies | ||||||||||||
Equity: | ||||||||||||
Preferred stock, $.01 par value; 5,000 shares authorized; no shares issued and outstanding | 0 | 0 | 0 | 0 | ||||||||
Common stock, $.001 par value; 225,000 shares authorized; 105,711 shares issued | 106 | 106 | 106 | 106 | ||||||||
Additional paid-in capital | 1,447,954 | 1,435,526 | 1,447,954 | 1,435,526 | ||||||||
Accumulated deficit | (1,471,577) | (1,365,241) | (1,471,577) | (1,365,241) | ||||||||
Accumulated other comprehensive loss | (12) | (222) | (12) | (222) | ||||||||
Treasury stock, at cost, 122 shares, respectively | (2,876) | (1,904) | (2,876) | (1,904) | ||||||||
Total (deficit) equity | (26,405) | 68,265 | (26,405) | 68,265 | 167,507 | $ 285,972 | ||||||
Total liabilities and (deficit) equity | 284,136 | 436,539 | 284,136 | 436,539 | ||||||||
Allowance for doubtful accounts receivable | 4 | 4 | 4 | 4 | ||||||||
Accumulated depreciation and amortization, property and equipment | $ 60,006 | $ 58,623 | $ 60,006 | $ 58,623 | ||||||||
Preferred stock, par value per share (usd per share) | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | ||||||||
Preferred stock, shares authorized | 5,000,000 | 5,000,000 | 5,000,000 | 5,000,000 | ||||||||
Preferred stock, shares issued | 0 | 0 | 0 | 0 | ||||||||
Preferred stock, shares outstanding | 0 | 0 | 0 | 0 | ||||||||
Common stock, par value per share (usd per share) | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | ||||||||
Common stock, shares authorized | 225,000,000 | 225,000,000 | 225,000,000 | 225,000,000 | ||||||||
Treasury stock, shares | 236,000 | 122,000 | 236,000 | 122,000 | ||||||||
Previously reported | ||||||||||||
Revenues: | ||||||||||||
Net product revenue | $ 15,890 | 0 | ||||||||||
Collaborative agreements | 74,267 | 83,182 | ||||||||||
Royalties and other revenue | 178 | 155 | ||||||||||
Total revenues | $ 6,856 | $ 13,753 | $ 25,207 | $ 33,047 | $ 26,942 | $ 12,053 | $ 18,293 | 90,335 | 83,337 | |||
Operating expenses: | ||||||||||||
Cost of sales (including finite-lived intangible asset amortization) | 1,899 | 0 | ||||||||||
Research and development, including stock-based compensation of $4,905 and $3,938, respectively | 156,813 | 178,151 | ||||||||||
Increase (decrease) in fair value of Symphony Icon, Inc. purchase liability | 2,101 | (703) | ||||||||||
Selling, general and administrative, including stock-based compensation of $4,567 and $3,514, respectively | 66,203 | 43,044 | ||||||||||
Total operating expenses | 227,016 | 220,492 | ||||||||||
Income (loss) from operations | (23,043) | (30,429) | (37,966) | (30,785) | (29,518) | (33,893) | (42,485) | (136,681) | (137,155) | |||
Interest expense | (6,984) | (6,567) | ||||||||||
Interest and other income, net | 1,954 | 2,293 | ||||||||||
Net loss before taxes | (141,711) | (141,429) | ||||||||||
Income tax benefit | 12,661 | 0 | ||||||||||
Net loss | $ (27,512) | $ (34,706) | $ (42,075) | $ (28,378) | $ (30,722) | $ (35,059) | $ (34,891) | $ (129,050) | $ (141,429) | |||
Net loss per common share, basic and diluted (usd per share) | $ (0.26) | $ (0.33) | $ (0.40) | $ (0.27) | $ (0.29) | $ (0.33) | $ (0.33) | $ (1.23) | $ (1.36) | |||
Shares used in computing net loss per common share, basic and diluted | 105,881,000 | 105,848,000 | 105,668,000 | 105,588,000 | 105,582,000 | 105,300,000 | 104,461,000 | 105,237,000 | 103,863,000 | |||
Stock-based compensation expense associated with research and development expense | $ 4,905 | $ 3,938 | ||||||||||
Stock-based compensation expense associated with general and administrative expense | 4,567 | 3,514 | ||||||||||
Current assets: | ||||||||||||
Cash and cash equivalents | $ 61,661 | 61,661 | ||||||||||
Short-term investments | 249,127 | 249,127 | ||||||||||
Accounts receivable, net of allowances of $4 | 4,825 | 4,825 | ||||||||||
Inventory | 1,948 | 1,948 | ||||||||||
Prepaid expenses and other current assets | 4,434 | 4,434 | ||||||||||
Total current assets | 321,995 | 321,995 | ||||||||||
Property and equipment, net of accumulated depreciation and amortization of $58,623 | 17,687 | 17,687 | ||||||||||
Goodwill | 44,543 | 44,543 | ||||||||||
Other intangible assets | 51,885 | 51,885 | ||||||||||
Other assets | 429 | 429 | ||||||||||
Total assets | 436,539 | 436,539 | ||||||||||
Current liabilities: | ||||||||||||
Accounts payable | 57,652 | 57,652 | ||||||||||
Accrued liabilities | 12,282 | 12,282 | ||||||||||
Current portion of deferred revenue | 40,099 | 40,099 | ||||||||||
Current portion of long-term debt, net of deferred financing costs | 14,094 | 14,094 | ||||||||||
Total current liabilities | 124,127 | 124,127 | ||||||||||
Deferred revenue, net of current portion | 22,428 | 22,428 | ||||||||||
Long-term debt, net of deferred financing costs | 231,576 | 231,576 | ||||||||||
Deferred tax liabilities | 6,014 | 6,014 | ||||||||||
Other long-term liabilities | 292 | 292 | ||||||||||
Total liabilities | 384,437 | 384,437 | ||||||||||
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; 225,000 shares authorized; 105,711 shares issued | 106 | 106 | ||||||||||
Additional paid-in capital | 1,435,526 | 1,435,526 | ||||||||||
Accumulated deficit | (1,381,404) | (1,381,404) | ||||||||||
Accumulated other comprehensive loss | (222) | (222) | ||||||||||
Treasury stock, at cost, 122 shares, respectively | (1,904) | (1,904) | ||||||||||
Total (deficit) equity | 52,102 | 52,102 | ||||||||||
Total liabilities and (deficit) equity | $ 436,539 | $ 436,539 | ||||||||||
Preferred stock, par value per share (usd per share) | $ 0.01 | $ 0.01 | ||||||||||
Preferred stock, shares authorized | 5,000,000 | 5,000,000 | ||||||||||
Preferred stock, shares issued | 0 | 0 | ||||||||||
Preferred stock, shares outstanding | 0 | 0 | ||||||||||
Common stock, par value per share (usd per share) | $ 0.001 | $ 0.001 | ||||||||||
Common stock, shares authorized | 225,000,000 | 225,000,000 | ||||||||||
Common stock, shares issued | 105,711,000 | 105,711,000 | ||||||||||
Treasury stock, shares | 122,000 | 122,000 | ||||||||||
Adjustments | ||||||||||||
Revenues: | ||||||||||||
Net product revenue | $ 0 | 0 | ||||||||||
Collaborative agreements | 1,354 | (4,081) | ||||||||||
Royalties and other revenue | 0 | 0 | ||||||||||
Total revenues | $ 110 | $ 45 | $ 167 | $ 919 | $ 732 | $ 34 | $ (331) | 1,354 | (4,081) | |||
Operating expenses: | ||||||||||||
Cost of sales (including finite-lived intangible asset amortization) | 0 | 0 | ||||||||||
Research and development, including stock-based compensation of $4,905 and $3,938, respectively | (4,590) | (14,178) | ||||||||||
Increase (decrease) in fair value of Symphony Icon, Inc. purchase liability | 0 | 0 | ||||||||||
Selling, general and administrative, including stock-based compensation of $4,567 and $3,514, respectively | (113) | 113 | ||||||||||
Total operating expenses | (4,703) | (14,065) | ||||||||||
Income (loss) from operations | 116 | 157 | 253 | 1,769 | 913 | 402 | 2,973 | 6,057 | 9,984 | |||
Interest expense | 0 | 0 | ||||||||||
Interest and other income, net | 0 | 0 | ||||||||||
Net loss before taxes | 6,057 | 9,984 | ||||||||||
Income tax benefit | 0 | 0 | ||||||||||
Net loss | $ 116 | $ 157 | $ 253 | $ 1,769 | $ 913 | $ 402 | $ 2,973 | $ 6,057 | $ 9,984 | |||
Net loss per common share, basic and diluted (usd per share) | $ 0 | $ 0 | $ 0 | $ 0.02 | $ 0.01 | $ 0 | $ 0.02 | $ 0.06 | $ 0.09 | |||
Shares used in computing net loss per common share, basic and diluted | ||||||||||||
Current assets: | ||||||||||||
Cash and cash equivalents | $ 0 | $ 0 | ||||||||||
Short-term investments | 0 | 0 | ||||||||||
Accounts receivable, net of allowances of $4 | 0 | 0 | ||||||||||
Inventory | 0 | 0 | ||||||||||
Prepaid expenses and other current assets | 0 | 0 | ||||||||||
Total current assets | 0 | 0 | ||||||||||
Property and equipment, net of accumulated depreciation and amortization of $58,623 | 0 | 0 | ||||||||||
Goodwill | 0 | 0 | ||||||||||
Other intangible assets | 0 | 0 | ||||||||||
Other assets | 0 | 0 | ||||||||||
Total assets | 0 | 0 | ||||||||||
Current liabilities: | ||||||||||||
Accounts payable | (18,890) | (18,890) | ||||||||||
Accrued liabilities | 0 | 0 | ||||||||||
Current portion of deferred revenue | 252 | 252 | ||||||||||
Current portion of long-term debt, net of deferred financing costs | 0 | 0 | ||||||||||
Total current liabilities | (18,638) | (18,638) | ||||||||||
Deferred revenue, net of current portion | 2,475 | 2,475 | ||||||||||
Long-term debt, net of deferred financing costs | 0 | 0 | ||||||||||
Deferred tax liabilities | 0 | 0 | ||||||||||
Other long-term liabilities | 0 | 0 | ||||||||||
Total liabilities | (16,163) | (16,163) | ||||||||||
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; 225,000 shares authorized; 105,711 shares issued | 0 | 0 | ||||||||||
Additional paid-in capital | 0 | 0 | ||||||||||
Accumulated deficit | 16,163 | 16,163 | ||||||||||
Accumulated other comprehensive loss | 0 | 0 | ||||||||||
Treasury stock, at cost, 122 shares, respectively | 0 | 0 | ||||||||||
Total (deficit) equity | 16,163 | 16,163 | ||||||||||
Total liabilities and (deficit) equity | $ 0 | $ 0 |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Details) - USD ($) $ in Millions | Jan. 01, 2019 | Jan. 01, 2018 | Jan. 01, 2017 |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Accumulated Excess Tax Benefits Recognized as Deferred Tax Assets | $ 6.1 | ||
Adjustment to Accumulated Deficit | $ 2 | ||
Subsequent Event | Accounting Standards Update 2016-02 | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Right-of-use assets | $ 2.1 | ||
Lease liabilities | $ 2.1 | ||
Accumulated Deficit | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Adjustment to Accumulated Deficit to ASC606 | $ 14.2 |
Cash and Cash Equivalents and_3
Cash and Cash Equivalents and Investments (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash and Cash Equivalents | |||
Realized Investment Gains (Losses) | $ 0 | $ 7,000 | $ 0 |
Cash | |||
Cash and Cash Equivalents | |||
Available-for-sale Securities, Amortized Cost Basis | 80,386,000 | 61,661,000 | |
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 | 80,386,000 | 61,661,000 | |
US Treasury Securities | |||
Cash and Cash Equivalents | |||
Available-for-sale Securities, Amortized Cost Basis | 73,983,000 | 222,316,000 | |
Available-for-sale Securities, Gross Unrealized Gain Accumulated in Investments | 0 | 0 | |
Available-for-sale Securities, Gross Unrealized Losses | (9,000) | (168,000) | |
Available-for-sale Securities, Current | 73,974,000 | 222,148,000 | |
Corporate Debt Securities [Member] | |||
Cash and Cash Equivalents | |||
Available-for-sale Securities, Amortized Cost Basis | 5,695,000 | 27,033,000 | |
Available-for-sale Securities, Gross Unrealized Gain Accumulated in Investments | 0 | 0 | |
Available-for-sale Securities, Gross Unrealized Losses | (3,000) | (54,000) | |
Available-for-sale Securities, Current | 5,692,000 | 26,979,000 | |
Short-term Investments | |||
Cash and Cash Equivalents | |||
Available-for-sale Securities, Amortized Cost Basis | 79,678,000 | 249,349,000 | |
Available-for-sale Securities, Gross Unrealized Gain Accumulated in Investments | 0 | 0 | |
Available-for-sale Securities, Gross Unrealized Losses | (12,000) | (222,000) | |
Available-for-sale Securities, Current | 79,666,000 | 249,127,000 | |
Cash and Cash Equivalents and Investments | |||
Cash and Cash Equivalents | |||
Available-for-sale Securities, Amortized Cost Basis | 160,064,000 | 311,010,000 | |
Available-for-sale Securities, Gross Unrealized Gain Accumulated in Investments | 0 | 0 | |
Available-for-sale Securities, Gross Unrealized Losses | (12,000) | (222,000) | |
Available-for-sale Securities, Current | $ 160,052,000 | $ 310,788,000 |
Fair Value Measurements (Detail
Fair Value Measurements (Details 1) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Cash and Cash Equivalents, Fair Value Disclosure | $ 80,386 | $ 61,661 |
Available-for-sale Securities, Fair Value Disclosure | 79,666 | 249,127 |
Investments, Fair Value Disclosure | 160,052 | 310,788 |
Fair Value, Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Cash and Cash Equivalents, Fair Value Disclosure | 80,386 | 61,661 |
Available-for-sale Securities, Fair Value Disclosure | 73,974 | 222,148 |
Investments, Fair Value Disclosure | 154,360 | 283,809 |
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 | 5,692 | 26,979 |
Investments, Fair Value Disclosure | 5,692 | 26,979 |
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 |
Fair Value Measurements (Deta_2
Fair Value Measurements (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | |||
Increase (decrease) in fair value of Symphony Icon, Inc. purchase liability | $ 0 | $ 2,101 | $ (703) |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings | 2,101 | (703) | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Settlements | (21,013) | (3,200) | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value | $ 0 | $ 18,912 | $ 22,815 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |
Aug. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Lives | 10 years | ||
Property, Plant and Equipment, Gross | $ 75,871 | $ 76,310 | |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | (60,006) | (58,623) | |
Property and equipment, net of accumulated depreciation and amortization of $58,623 | $ 15,865 | 17,687 | |
Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Lives | 3 years | ||
Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Lives | 40 years | ||
Computers and Software | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 4,557 | 4,605 | |
Computers and Software | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Lives | 3 years | ||
Computers and Software | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Lives | 5 years | ||
Furniture and Fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 5,644 | 6,006 | |
Furniture and Fixtures | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Lives | 5 years | ||
Furniture and Fixtures | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Lives | 7 years | ||
Laboratory Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 3,378 | 3,423 | |
Laboratory Equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Lives | 3 years | ||
Laboratory Equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Lives | 7 years | ||
Leasehold Improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 416 | 400 | |
Leasehold Improvements | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Lives | 3 years | ||
Leasehold Improvements | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Lives | 7 years | ||
Buildings | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 59,212 | 59,212 | |
Buildings | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Lives | 15 years | ||
Buildings | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Lives | 40 years | ||
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 2,664 | $ 2,664 |
Income Taxes (Details 1)
Income Taxes (Details 1) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred Tax Assets and Liabilities | ||
Deferred Tax Assets, Operating Loss Carryforwards | $ 206,789 | $ 183,839 |
Deferred Tax Assets, Tax Credit Carryforwards, Research | 47,087 | 46,574 |
Deferred Tax Assets, Tax Credit Carryforwards, Orphan Drug | 24,524 | 24,524 |
Deferred Tax Assets, In Process Research and Development | 71,047 | 68,603 |
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Share-based Compensation Cost | 4,641 | 3,923 |
Deferred Tax Assets, Deferred Income | 5,458 | 13,523 |
Deferred Tax Assets, Section 163j_LXRX | 0 | |
Deferred Tax Assets, Other | 6,044 | 5,656 |
Deferred Tax Assets, Gross | 369,215 | 346,642 |
Deferred Tax Liability Related to Acquisition of Symphony Icon | (10,525) | (10,896) |
Deferred Tax Liabilities, Other | (2) | (1) |
Deferred Tax Liabilities, Gross | (10,527) | (10,897) |
Deferred Tax Assets, Valuation Allowance | (364,702) | (341,759) |
Deferred Tax Liabilities, Net | $ (6,014) | $ (6,014) |
Income Taxes (Details 2)
Income Taxes (Details 2) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Feb. 27, 2017 | |
Income Taxes [Abstract] | ||||
Deferred Tax Liability from Reclassified Intangible Asset | $ 8,700 | |||
Deferred Tax Liability from Reclassified Indefinite-lived Intangible | $ 4,000 | |||
Deferred Tax Asset, remeasured | 165,300 | |||
Income Tax Benefit | 0 | $ (12,661) | $ 0 | |
Valuation Allowance, Deferred Tax Asset, Change in Amount | (22,900) | |||
Operating Loss Carryforwards, Federal | 941,900 | |||
Operating Loss Carryforwards, State | 455,800 | |||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | $ 0 | $ 0 |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Millions | Jul. 30, 2010 | Jul. 12, 2001 |
Goodwill [Abstract] | ||
Coelacanth Goodwill | $ 25.8 | |
Coelacanth Purchase Price | $ 36 | |
Symphony Icon Goodwill | $ 18.7 |
Debt Obligations - Narrative (D
Debt Obligations - Narrative (Details) | 1 Months Ended | 12 Months Ended | ||||
Aug. 31, 2018USD ($) | Dec. 31, 2017 | Nov. 30, 2014USD ($) | Dec. 31, 2018USD ($)$ / shares | Aug. 30, 2018USD ($) | Dec. 18, 2017USD ($) | |
Debt Instrument | ||||||
Proceeds from Convertible Debt | $ 87,500,000 | |||||
Convertible Debt Instrument Interest Rate Stated Percentage | 5.25% | |||||
Debt Instrument, Convertible, Conversion Ratio | 118.4553 | |||||
Debt Instrument, Convertible, Conversion Price | $ / shares | $ 8.442 | |||||
Repurchase price | 100.00% | |||||
Debt Issuance Cost | $ 3,400,000 | |||||
Debt instrument, term | 2 years | 5 years | 7 years | |||
Unamortized Debt Issuance Expense | $ 1,400,000 | |||||
Debt Instrument, Fair Value Disclosure | 97,500,000 | |||||
Recognition of gain or loss on extinguishment | $ 0 | |||||
Mortgage Debt Instrument_Revere_LXRX | $ 12,900,000 | |||||
Estimated useful life of assets | 10 years | |||||
Mortgage Debt Interest Rate_Base_Revere_LXRX | 5.50% | |||||
Mortgage Debt Interest Rate Ceiling_Revere_LXRX | 7.50% | |||||
Mortgage Debt Balloon Payment_LXRX | $ 10,300,000 | |||||
Mortgage Debt Issue Costs_Revere_LXRX | $ 300,000 | $ 400,000 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 9.00% | |||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate | $ 12,100,000 | |||||
Buildings Collateral | 59,200,000 | |||||
Land Collateral | 2,700,000 | |||||
Debt Instrument, Description | 200000 | |||||
Debt Instrument, Face Amount | $ 150,000,000 | |||||
Debt Issuance Costs, Gross | $ 3,200,000 | $ 4,100,000 |
Debt Obligations (Details 1)
Debt Obligations (Details 1) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Obligations [Abstract] | ||
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | $ 1,285 | |
Long-term Debt, Maturities, Repayments of Principal in Year Two | 11,130 | |
Long-term Debt, Maturities, Repayments of Principal in Year Three | 87,500 | |
Long-term Debt, Maturities, Repayments of Principal in Year Four | 150,000 | |
Long-term Debt, Maturities, Repayments of Principal in Year Five | 0 | |
Long-term Debt, Maturities, Repayments of Principal after Year Five | 0 | |
Long-term Debt, Gross | 249,915 | |
Unamortized Debt Issuance Expense | (4,913) | |
Long-term Debt, Current Maturities | (1,115) | $ (14,094) |
Long-term Debt, Excluding Current Maturities | $ 243,887 | $ 231,576 |
Arrangements with Symphony Ic_2
Arrangements with Symphony Icon, Inc. (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||||
Mar. 31, 2017 | Sep. 30, 2016 | Apr. 30, 2015 | Dec. 31, 2014 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jul. 30, 2012 | Jul. 30, 2010 | Jun. 15, 2007 | |
Arrangements with Symphony Icon Inc [Abstract] | ||||||||||
Holdings Contribution To Icon | $ 45,000 | |||||||||
Lexicon Sold Shares To Holdings | 1,092,946 | |||||||||
Lexicon Received Cash From Holdings | $ 15,000 | |||||||||
Lexicon Paid Holdings Cash | $ 10,000 | |||||||||
Symphony Fair Value Of Base And Contingent Payments | $ 45,600 | |||||||||
Symphony Base Payment Discount Rate | 14.00% | |||||||||
Symphony Contingent Payment Discount Rate | 18.00% | |||||||||
Symphony Base Payment In Shares | 1,891,074 | |||||||||
Symphony Base Payment Obligation | $ 35,000 | |||||||||
Symphony Contingent Payment Maximum | $ 45,000 | |||||||||
Symphony Contingent Payment Percentage | 50.00% | |||||||||
Symphony Regulatory Approval Payment | $ 15,000 | |||||||||
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 | $ 10,500 | $ 3,200 | $ 750 | $ 5,800 | $ 10,499 | |||||
Symphony Amendment Buyout | $ 21,000 | |||||||||
Symphony Contingent Payment in Shares | 659,905 | 666,111 | ||||||||
Symphony Contingent Payment Total | $ 11,500 | |||||||||
Increase (decrease) in fair value of Symphony Icon, Inc. purchase liability | $ 0 | $ 2,101 | $ (703) |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Commitments and Contingencies [Abstract] | |||
Operating Leases, Rent Expense | $ 0.6 | $ 0.6 | $ 0.5 |
Minimum | |||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Payment period | 6 months | ||
Maximum | |||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Payment period | 12 months |
Commitments and Contingencies_2
Commitments and Contingencies (Details 2) $ in Thousands | Dec. 31, 2018USD ($) |
Commitments and Contingencies [Abstract] | |
Operating Leases, Future Minimum Payments Due, Next Twelve Months | $ 657 |
Operating Leases, Future Minimum Payments, Due in Two Years | 637 |
Operating Leases, Future Minimum Payments, Due in Three Years | 646 |
Operating Leases, Future Minimum Payments, Due in Four Years | 658 |
Operating Leases, Future Minimum Payments, Due in Five Years | 0 |
Operating Leases, Future Minimum Payments, Due Thereafter | 0 |
Operating Leases, Future Minimum Payments Due | $ 2,598 |
Equity Incentive Awards - Narra
Equity Incentive Awards - Narrative (Details) | 12 Months Ended |
Dec. 31, 2018USD ($)shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock Option Exercise Price as Percent of Value of Common Stock | 100.00% |
Total Shares That May be Issued, Equity Incentive Plan | 15,000,000 |
Options Outstanding, Equity Incentive Plan | 5,953,831 |
Restricted Stock Units Outstanding, Equity Incentive Plan | 1,285,752 |
Stock Options Exercised, Equity Incentive Plan | 1,909,515 |
Shares Issued Pursuant to Restricted Stock Units, Equity Incentive Plan | 1,451,648 |
Shares Issued Pursuant to Stock Bonus Awards, Equity Incentive Plan | 113,940 |
Total value of shares by nonemployee in a year | $ | $ 500,000 |
Total Shares That May Be Issued, Non-Employee Directors Equity Incentive Plan | 600,000 |
Options Outstanding, Non-Employee Directors Equity Incentive Plan | 198,551 |
Stock Options Exercised, Non-Employee Directors Equity Incentive Plan | 0 |
Shares Issued Pursuant to Restricted Stock Awards, Non-Employee Directors Equity Incentive Plan | 103,208 |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 7,438,134 |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 4,583,555 |
Stock Options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 4 years |
Award term | 10 years |
Restricted Stock | Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 3 years |
Restricted Stock | Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 4 years |
Equity Incentive Awards (Detail
Equity Incentive Awards (Details 2) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
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 | $ 5.63 | $ 8.59 | $ 6.43 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Total Intrinsic Value | $ 0.2 | $ 2 | $ 1.7 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 6 years 7 months | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 5 years 2 months | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 0.3 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | $ 0.3 | |||
Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 6,152 | 4,961 | 4,834 | 4,217 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ 10.68 | $ 11.17 | $ 11.24 | $ 12.35 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 1,916 | 892 | 1,370 | |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 10 | $ 14.31 | $ 10.40 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | (97) | (458) | (495) | |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | $ 7.55 | $ 11.97 | $ 12.17 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expirations in Period | (239) | (157) | (195) | |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Expirations in Period, Weighted Average Exercise Price | $ 14.21 | $ 26.42 | $ 27.33 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | (389) | (150) | (63) | |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Forfeitures in Period, Weighted Average Exercise Price | $ 12.04 | $ 13.84 | $ 10.45 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 3,620 | 3,077 | 2,727 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ 10.72 | $ 10.95 | $ 12.55 |
Equity Incentive Awards (Deta_2
Equity Incentive Awards (Details 3) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
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 | 20,512 | 10,248 | 11,456 |
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 | $ 7.80 | $ 15.61 | $ 13.96 |
Equity Incentive Awards (Deta_3
Equity Incentive Awards (Details 4) - Restricted Stock Units (RSUs) - $ / shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
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 | 1,286 | 946 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 10.17 | $ 10.50 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 872 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 9.79 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | (334) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ 9.85 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | (198) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period, Weighted Average Fair Value | $ 10.59 |
Benefit Plan (Details)
Benefit Plan (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Benefit Plan [Abstract] | |||
Defined Contribution Plan, Cost | $ 1 | $ 1 | $ 0.7 |
Years of service | 4 years |
Collaboration and License Agr_2
Collaboration and License Agreements (Details) € in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||
Oct. 31, 2018USD ($) | Nov. 30, 2017USD ($) | Oct. 31, 2017USD ($) | Aug. 31, 2016USD ($) | Nov. 30, 2015USD ($)milestone | Oct. 31, 2014USD ($) | Oct. 31, 2014EUR (€) | Jul. 31, 2005USD ($) | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($)job | |
Collaboration and License Agreements [Abstract] | ||||||||||||
Sanofi Upfront Payment | $ 300,000,000 | |||||||||||
Sanofi Development Milestones | $ 110,000,000 | |||||||||||
Number of development milestones | milestone | 4 | |||||||||||
Sanofi Regulatory Milestones | $ 220,000,000 | |||||||||||
Number of regulatory milestones | milestone | 4 | |||||||||||
Sanofi Outcomes Study Milestone | $ 100,000,000 | |||||||||||
Sanofi Sales Milestone Payments | $ 990,000,000 | |||||||||||
Number of commercial milestones | milestone | 6 | |||||||||||
Royalties percentage | 40.00% | |||||||||||
Funded commercialization costs | 40.00% | |||||||||||
Development costs period | 3 years | |||||||||||
Sanofi Development Costs Funded by Lexicon Maximum Amount | $ 100,000,000 | |||||||||||
Expiration period | 10 years | |||||||||||
Sanofi Revenue Allocated to Development Deliverable | $ 113,800,000 | |||||||||||
Sanofi Revenue Allocated to License Deliverable | 126,800,000 | |||||||||||
Sanofi Revenue Recognized | $ 33,200,000 | $ 60,100,000 | $ 71,300,000 | |||||||||
Sanofi Sales of Clinical Trial Materials | 1,900,000 | 6,300,000 | ||||||||||
Sanofi Revenue Allocated to Funding Deliverable | $ 59,400,000 | |||||||||||
Sanofi revenue from filing performance_LXRX | 8,600,000 | |||||||||||
Ipsen Total Payments To Date | 45,000,000 | |||||||||||
Ipsen Total Upfront Payments | $ 24,500,000 | |||||||||||
Ipsen Milestone Payment Received | $ 1,300,000 | $ 3,800,000 | $ 3,800,000 | $ 6,400,000 | $ 5,100,000 | |||||||
Ipsen Revenue Allocated to License Deliverable | 21,200,000 | 1,400,000 | ||||||||||
Ipsen Maximum Regulatory And Commercial Milestones | 11,800,000 | |||||||||||
Ipsen Revenue Allocated to Development Deliverable | 1,700,000 | |||||||||||
Ipsen Revenue Allocated to Committee Deliverable | $ 100,000 | |||||||||||
Ipsen Revenue Recognized | 4,600,000 | 16,200,000 | $ 7,200,000 | |||||||||
Ipsen Royalty Income_LXRX | 300,000 | 100,000 | ||||||||||
Ipsen product sales | 1,600,000 | $ 800,000 | ||||||||||
Ipsen Maximum Sales Milestones | € | € 72 | |||||||||||
TIGM Maximum Exposure | 14,200,000 | |||||||||||
TX Enterprise Fund Award | $ 35,000,000 | |||||||||||
TX Enterprise Fund Award to Texas AM University System | $ 15,000,000 | |||||||||||
Aggregate number of new jobs | job | 1,616 | |||||||||||
TIGM Per Job Payment Amount | $ 2,415 |
Selected Quarterly Financial _3
Selected Quarterly Financial Data (Unaudited) - Quarterly Financial Information (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Condensed Financial Statements, Captions | |||||||||||
Revenues | $ 17,071 | $ 6,966 | $ 13,798 | $ 25,374 | $ 33,966 | $ 27,674 | $ 12,087 | $ 17,962 | $ 63,209 | $ 91,689 | $ 79,256 |
Income (Loss) From Operations | (12,367) | (22,927) | (30,272) | (37,713) | (29,016) | (28,605) | (33,491) | (39,512) | (103,279) | (130,624) | (127,171) |
Net loss | $ (16,781) | $ (27,396) | $ (34,549) | $ (41,822) | $ (26,609) | $ (29,809) | $ (34,657) | $ (31,918) | $ (120,548) | $ (122,993) | $ (131,445) |
Earnings Per Share, Basic and Diluted | $ (0.16) | $ (0.26) | $ (0.33) | $ (0.40) | $ (0.25) | $ (0.28) | $ (0.33) | $ (0.31) | $ (1.14) | $ (1.17) | $ (1.27) |
Weighted Average Number of Shares Outstanding, Basic and Diluted | 105,920 | 105,881 | 105,848 | 105,668 | 105,588 | 105,582 | 105,300 | 104,461 | 105,830 | 105,237 | 103,863 |
Selected Quarterly Financial _4
Selected Quarterly Financial Data (Unaudited) - Schedule of Error Corrections and Prior Period Adjustments (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||
Revenues | $ 17,071 | $ 6,966 | $ 13,798 | $ 25,374 | $ 33,966 | $ 27,674 | $ 12,087 | $ 17,962 | $ 63,209 | $ 91,689 | $ 79,256 |
Loss from operations | (12,367) | (22,927) | (30,272) | (37,713) | (29,016) | (28,605) | (33,491) | (39,512) | (103,279) | (130,624) | (127,171) |
Net loss | $ (16,781) | $ (27,396) | $ (34,549) | $ (41,822) | $ (26,609) | $ (29,809) | $ (34,657) | $ (31,918) | $ (120,548) | $ (122,993) | $ (131,445) |
Net loss per common share, basic and diluted (usd per share) | $ (0.16) | $ (0.26) | $ (0.33) | $ (0.40) | $ (0.25) | $ (0.28) | $ (0.33) | $ (0.31) | $ (1.14) | $ (1.17) | $ (1.27) |
Shares used in computing net loss per common share, basic and diluted | 105,920 | 105,881 | 105,848 | 105,668 | 105,588 | 105,582 | 105,300 | 104,461 | 105,830 | 105,237 | 103,863 |
Previously reported | |||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||
Revenues | $ 6,856 | $ 13,753 | $ 25,207 | $ 33,047 | $ 26,942 | $ 12,053 | $ 18,293 | $ 90,335 | $ 83,337 | ||
Loss from operations | (23,043) | (30,429) | (37,966) | (30,785) | (29,518) | (33,893) | (42,485) | (136,681) | (137,155) | ||
Net loss | $ (27,512) | $ (34,706) | $ (42,075) | $ (28,378) | $ (30,722) | $ (35,059) | $ (34,891) | $ (129,050) | $ (141,429) | ||
Net loss per common share, basic and diluted (usd per share) | $ (0.26) | $ (0.33) | $ (0.40) | $ (0.27) | $ (0.29) | $ (0.33) | $ (0.33) | $ (1.23) | $ (1.36) | ||
Shares used in computing net loss per common share, basic and diluted | 105,881 | 105,848 | 105,668 | 105,588 | 105,582 | 105,300 | 104,461 | 105,237 | 103,863 | ||
Adjustments | |||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||
Revenues | $ 110 | $ 45 | $ 167 | $ 919 | $ 732 | $ 34 | $ (331) | $ 1,354 | $ (4,081) | ||
Loss from operations | 116 | 157 | 253 | 1,769 | 913 | 402 | 2,973 | 6,057 | 9,984 | ||
Net loss | $ 116 | $ 157 | $ 253 | $ 1,769 | $ 913 | $ 402 | $ 2,973 | $ 6,057 | $ 9,984 | ||
Net loss per common share, basic and diluted (usd per share) | $ 0 | $ 0 | $ 0 | $ 0.02 | $ 0.01 | $ 0 | $ 0.02 | $ 0.06 | $ 0.09 | ||
Shares used in computing net loss per common share, basic and diluted |