Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2014 | 6-May-14 | |
Document Information [Line Items] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 31-Mar-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Trading Symbol | 'ARNA | ' |
Entity Registrant Name | 'ARENA PHARMACEUTICALS INC | ' |
Entity Central Index Key | '0001080709 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 219,650,003 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | |
In Thousands, unless otherwise specified | |||
Current assets: | ' | ' | |
Cash and cash equivalents | $203,272 | $221,878 | [1] |
Short-term investments, available-for-sale | 53,234 | 0 | [1] |
Accounts receivable | 1,552 | 10,602 | [1] |
Inventory | 11,947 | 12,759 | [1] |
Prepaid expenses and other current assets | 6,363 | 3,571 | [1] |
Total current assets | 276,368 | 248,810 | [1] |
Land, property and equipment, net | 78,046 | 77,388 | [1] |
Intangibles, net | 10,071 | 10,182 | [1] |
Other non-current assets | 3,211 | 3,427 | [1] |
Total assets | 367,696 | 339,807 | [1] |
Current liabilities: | ' | ' | |
Accounts payable and other accrued liabilities | 6,806 | 7,317 | [1] |
Accrued compensation | 3,285 | 4,205 | [1] |
Current portion of deferred revenues | 35,393 | 37,861 | [1] |
Current portion of lease financing obligations | 2,161 | 2,056 | [1] |
Total current liabilities | 66,966 | 70,744 | [1] |
Deferred rent | 281 | 247 | [1] |
Deferred revenues, less current portion | 99,225 | 101,329 | [1] |
Derivative liabilities | 5,002 | 4,892 | [1] |
Lease financing obligations, less current portion | 70,167 | 70,738 | [1] |
Commitments and contingencies | ' | ' | [1] |
Stockholders' equity: | ' | ' | |
Common stock | 22 | 22 | [1] |
Additional paid-in capital | 1,299,968 | 1,293,840 | [1] |
Accumulated other comprehensive income | 59,053 | 5,728 | [1] |
Accumulated deficit | -1,232,988 | -1,207,733 | [1] |
Total stockholders' equity | 126,055 | 91,857 | [1] |
Total liabilities and stockholders' equity | 367,696 | 339,807 | [1] |
Eisai BELVIQ Agreement | ' | ' | |
Current liabilities: | ' | ' | |
Payable to Eisai | 19,321 | 19,305 | [1] |
Current portion of deferred revenues | 34,839 | 37,301 | |
Deferred revenues, less current portion | $93,127 | $95,102 | |
[1] | The balance sheet data at December 31, 2013, has been derived from audited financial statements at that date. It does not include, however, all of the information and notes required by US generally accepted accounting principles for complete financial statements. |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Revenues: | ' | ' |
Net product sales | $2,882 | $0 |
Manufacturing services | 448 | 765 |
Total revenues | 6,814 | 2,373 |
Operating Costs and Expenses: | ' | ' |
Cost of product sales | 831 | 473 |
Cost of manufacturing services | 496 | 1,645 |
Research and development | 20,988 | 14,008 |
General and administrative | 8,037 | 7,251 |
Total operating costs and expenses | 30,352 | 23,377 |
Loss from operations | -23,538 | -21,004 |
Interest and Other Income (Expense): | ' | ' |
Interest income | 29 | 24 |
Interest expense | -1,747 | -1,787 |
Gain (Loss) from valuation of derivative liabilities | -110 | 3,859 |
Other | 111 | 32 |
Total interest and other income (expense), net | -1,717 | 2,128 |
Net loss | -25,255 | -18,876 |
Net loss per share: | ' | ' |
Basic | ($0.12) | ($0.09) |
Diluted | ($0.12) | ($0.09) |
Shares used in calculating net loss per share: | ' | ' |
Basic | 219,222 | 217,503 |
Diluted | 219,222 | 217,503 |
Comprehensive Income (Loss): | ' | ' |
Net loss | -25,255 | -18,876 |
Foreign currency translation gain (loss) | 91 | -1,588 |
Unrealized gain on investment | 53,234 | 0 |
Comprehensive income (loss) | 28,070 | -20,464 |
Eisai BELVIQ Agreement | ' | ' |
Revenues: | ' | ' |
Net product sales | 2,882 | 0 |
Collaborative revenue | 3,347 | 1,495 |
Total revenues | 6,229 | 1,495 |
Other | ' | ' |
Revenues: | ' | ' |
Collaborative revenue | $137 | $113 |
Condensed_Consolidated_Cash_Fl
Condensed Consolidated Cash Flow Statements (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | |
Operating Activities | ' | ' | |
Net loss | ($25,255) | ($18,876) | |
Adjustments to reconcile net loss to net cash used in operating activities: | ' | ' | |
Depreciation and amortization | 1,992 | 1,950 | |
Amortization of intangibles | 181 | 99 | |
Share-based compensation | 3,201 | 1,785 | |
(Gain) Loss from valuation of derivative liabilities | 110 | -3,859 | |
Amortization of prepaid financing costs | 34 | 34 | |
Gain on sale of equipment | -45 | 0 | |
Changes in assets and liabilities: | ' | ' | |
Accounts receivable | 8,934 | 4,013 | |
Inventory | 903 | -1,300 | |
Prepaid expenses and other assets | -2,806 | -333 | |
Accounts payable, payable to Eisai and accrued liabilities | -1,613 | -810 | |
Deferred revenues | -4,786 | -954 | |
Deferred rent | 34 | 27 | |
Net cash used in operating activities | -19,116 | -18,224 | |
Investing Activities | ' | ' | |
Purchases of property and equipment | -2,469 | -1,266 | |
Proceeds from sale of equipment | 45 | 0 | |
Other non-current assets | 209 | -52 | |
Net cash used in investing activities | -2,215 | -1,318 | |
Financing Activities | ' | ' | |
Principal payments on lease financing obligations | -466 | -372 | |
Proceeds from issuance of common stock | 2,927 | 450 | |
Net cash provided by financing activities | 2,461 | 78 | |
Effect of exchange rate changes on cash | 264 | -377 | |
Net decrease in cash and cash equivalents | -18,606 | -19,841 | |
Cash and cash equivalents at beginning of period | 221,878 | [1] | 156,091 |
Cash and cash equivalents at end of period | $203,272 | $136,250 | |
[1] | The balance sheet data at December 31, 2013, has been derived from audited financial statements at that date. It does not include, however, all of the information and notes required by US generally accepted accounting principles for complete financial statements. |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2014 | |
Basis of Presentation | ' |
1. Basis of Presentation | |
The accompanying unaudited condensed consolidated financial statements of Arena Pharmaceuticals, Inc., which include our wholly owned subsidiaries, should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2013, as filed with the Securities and Exchange Commission, or SEC, from which we derived our balance sheet as of December 31, 2013. The accompanying financial statements have been prepared in accordance with US generally accepted accounting principles, or GAAP, for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, since they are interim statements, the accompanying financial statements do not include all of the information and notes required by GAAP for complete financial statements. The accompanying financial statements reflect all adjustments, consisting of normal recurring adjustments, that are, in the opinion of our management, necessary to a fair statement of the results for the interim periods presented. Interim results are not necessarily indicative of results for a full year. | |
The preparation of financial statements in accordance with GAAP requires our management to make estimates and assumptions that affect the reported amounts (including assets, liabilities, revenues and expenses) and related disclosures. The amounts reported could differ under different estimates and assumptions. |
Fair_Value_Disclosures
Fair Value Disclosures | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Fair Value Disclosures | ' | ||||||||||||||||
2. Fair Value Disclosures | |||||||||||||||||
We measure our financial assets and liabilities at fair value, which is defined as the exit price, or the amount that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. | |||||||||||||||||
We use the following three-level valuation hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs to value our financial assets and liabilities: | |||||||||||||||||
Level 1 - | Observable inputs such as unadjusted quoted prices in active markets for identical instruments. | ||||||||||||||||
Level 2 - | Quoted prices for similar instruments in active markets or inputs that are observable for the asset or liability, either directly or indirectly. | ||||||||||||||||
Level 3 - | Significant unobservable inputs based on our assumptions. | ||||||||||||||||
The following tables present our valuation hierarchy for our financial assets and liabilities that are measured at fair value on a recurring basis as of March 31, 2014, and December 31, 2013, in thousands: | |||||||||||||||||
Fair Value Measurements at March 31, 2014 | |||||||||||||||||
Balance at | Quoted | Significant | Significant | ||||||||||||||
March 31, | Prices in | Other | Unobservable | ||||||||||||||
2014 | Active | Observable | Inputs | ||||||||||||||
Markets | Inputs | (Level 3) | |||||||||||||||
(Level 1) | (Level 2) | ||||||||||||||||
Assets: | |||||||||||||||||
Money market funds 1 | $ | 183,861 | $ | 183,861 | $ | 0 | $ | 0 | |||||||||
TaiGen equity securities 2 | $ | 53,234 | $ | 53,234 | $ | 0 | $ | 0 | |||||||||
Liabilities: | |||||||||||||||||
Warrant derivative liabilities | $ | 5,002 | $ | 0 | $ | 5,002 | $ | 0 | |||||||||
1 | Included in cash and cash equivalents on our condensed consolidated balance sheets. | ||||||||||||||||
2 | Included in short-term investments, available-for-sale on our condensed consolidated balance sheets. | ||||||||||||||||
Fair Value Measurements at December 31, 2013 | |||||||||||||||||
Balance at | Quoted | Significant | Significant | ||||||||||||||
December 31, | Prices in | Other | Unobservable | ||||||||||||||
2013 | Active | Observable | Inputs | ||||||||||||||
Markets | Inputs | (Level 3) | |||||||||||||||
(Level 1) | (Level 2) | ||||||||||||||||
Assets: | |||||||||||||||||
Money market funds 1 | $ | 208,833 | $ | 208,833 | $ | 0 | $ | 0 | |||||||||
Liabilities: | |||||||||||||||||
Warrant derivative liabilities | $ | 4,892 | $ | 0 | $ | 4,892 | $ | 0 | |||||||||
1 | Included in cash and cash equivalents on our condensed consolidated balance sheets. |
Shortterm_investments_availabl
Short-term investments, available-for-sale | 3 Months Ended |
Mar. 31, 2014 | |
Short-term investments, available-for-sale | ' |
3. Short-term investments, available-for-sale | |
We have held an investment in TaiGen Biotechnology Co., Ltd., or TaiGen, that, from December 31, 2011, to January 17, 2014, had a cost basis of zero due to impairment charges. On January 17, 2014, TaiGen completed an initial public offering and its common stock began to trade on the GreTai Securities Listed Market, under the name “TaiGen Biopharmaceuticals Holding Limited.” Such market is deemed to be comparable to a US over-the-counter market such that the fair value of our investment in TaiGen, which previously had been accounted for as a cost method investment with a cost basis of zero, became readily determinable. Accordingly, on January 17, 2014, we recorded our investment in TaiGen based on its fair value of approximately $49.1 million, with the unrealized gain of $49.1 million recorded as a component of accumulated other comprehensive income in the stockholders’ equity section of our condensed consolidated balance sheets. At March 31, 2014, our investment in TaiGen had a fair value of approximately $53.2 million (see Note 2). We began recording our investment in TaiGen at fair value based on the trading price of TaiGen’s common stock, and it is revalued on each balance sheet date, with any unrealized gains or losses recorded as a component of accumulated other comprehensive income (loss) in the stockholders’ equity section of our condensed consolidated balance sheets. |
Inventory
Inventory | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Inventory | ' | ||||||||
4. Inventory | |||||||||
All of our inventory relates to BELVIQ, and consisted of the following as of March 31, 2014, and December 31, 2013, in thousands: | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Raw materials | $ | 692 | $ | 657 | |||||
Work in process | 4,028 | 4,104 | |||||||
Finished goods at Arena GmbH | 0 | 0 | |||||||
Finished goods at Eisai | 7,227 | 7,998 | |||||||
Total inventory | $ | 11,947 | $ | 12,759 | |||||
Accounts_Payable_and_Other_Acc
Accounts Payable and Other Accrued Liabilities | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Accounts Payable and Other Accrued Liabilities | ' | ||||||||
5. Accounts Payable and Other Accrued Liabilities | |||||||||
Accounts payable and other accrued liabilities consisted of the following as of March 31, 2014, and December 31, 2013, in thousands: | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Accounts payable | $ | 2,863 | $ | 3,721 | |||||
Accrued expenses | 1,346 | 1,477 | |||||||
Accrued clinical and preclinical study fees | 2,067 | 1,317 | |||||||
Loss provision | 497 | 567 | |||||||
Other accrued liabilities | 33 | 235 | |||||||
Total accounts payable and other accrued liabilities | $ | 6,806 | $ | 7,317 | |||||
Derivative_Liabilities
Derivative Liabilities | 3 Months Ended |
Mar. 31, 2014 | |
Derivative Liabilities | ' |
6. Derivative Liabilities | |
In August 2008, we issued a warrant to purchase 1,106,344 shares of our common stock at an exercise price of $7.71 per share that expires on August 14, 2015. As a result of the warrant’s anti-dilution provision and certain subsequent equity issuances at prices below the adjustment price of $6.72 defined in the warrant agreement, the number of shares issuable upon exercise of the warrant increased and the exercise price decreased. As of March 31, 2014, the number of shares issuable upon exercise of the outstanding warrant was 1,965,418 at an exercise price of $4.34 per share. The outstanding warrant, which was valued at $5.0 million and $4.9 million as of March 31, 2014, and December 31, 2013, respectively, is recorded as a long-term derivative liability on our condensed consolidated balance sheets. | |
Our outstanding warrant is revalued on each balance sheet date, with changes in the fair value between reporting periods recorded in the interest and other income (expense) section of our condensed consolidated statements of operations and comprehensive income (loss). We recognized a loss of $0.1 million in the three months ended March 31, 2014, and a gain of $3.9 million in the three months ended March 31, 2013, from revaluation of the warrants outstanding in each period. |
Marketing_and_Supply_Agreement
Marketing and Supply Agreement with Eisai | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Marketing and Supply Agreement with Eisai | ' | ||||||||
7. Marketing and Supply Agreement with Eisai | |||||||||
In November 2013, Arena Pharmaceuticals GmbH, or Arena GmbH, our wholly owned subsidiary, and Eisai Inc. and Eisai Inc.’s parent company, Eisai Co., Ltd. (collectively with Eisai Inc., Eisai) entered into the Second Amended and Restated Marketing and Supply Agreement, or Eisai Agreement. The Eisai Agreement amended and restated the previous agreement and expanded Eisai’s exclusive commercialization rights for BELVIQ to all of the countries in the world, except for South Korea, Taiwan, Australia, New Zealand and Israel. BELVIQ is approved in the United States for chronic weight management in adults who are overweight with a comorbidity or obese, and it was made available to patients by prescription in the United States by Eisai in June 2013. In addition to providing commercialization rights, which are subject to applicable regulatory approval, we provide Eisai with services related to development and regulatory activities, and manufacture and sell BELVIQ to Eisai. Under the Eisai Agreement, we received an upfront payment and are entitled to receive milestone payments based on the achievement of regulatory filings and approvals, one-time purchase price adjustment payments and other payments, and payments from sales of BELVIQ. | |||||||||
Prior to entering into the Eisai Agreement, Arena GmbH and Eisai Inc. entered into the original marketing and supply agreement in July 2010, under which we granted Eisai Inc. exclusive commercialization rights for BELVIQ solely in the United States and its territories and possessions. In May 2012, Arena GmbH and Eisai Inc. amended and restated such agreement by entering into the first amended agreement, which expanded Eisai Inc.’s exclusive commercialization rights to include most of North and South America. | |||||||||
The following table summarizes the revenues we recognized under our collaboration with Eisai in the three months ended March 31, 2014, and 2013, in thousands: | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Net product sales | $ | 2,882 | $ | 0 | |||||
Amortization of upfront payments | 1,975 | 861 | |||||||
Reimbursement of research and development expenses | 745 | 2 | |||||||
Milestone payments | 500 | 500 | |||||||
Reimbursement of patent and trademark expenses | 127 | 132 | |||||||
Subtotal Eisai collaborative revenue | 3,347 | 1,495 | |||||||
Total | $ | 6,229 | $ | 1,495 | |||||
The following table summarizes the deferred revenues under our collaboration with Eisai as of March 31, 2014, and December 31, 2013, in thousands: | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Upfront payments | $ | 100,130 | $ | 102,104 | |||||
Net product sales | 27,836 | 30,299 | |||||||
Total deferred revenues attributable to Eisai | 127,966 | 132,403 | |||||||
Less current portion | (34,839 | ) | (37,301 | ) | |||||
Deferred revenues attributable to Eisai, less current portion | $ | 93,127 | $ | 95,102 | |||||
Upfront and Milestone Payments | |||||||||
In connection with entering into the Eisai Agreement, we received from Eisai an upfront payment of $60.0 million. This payment is in addition to the $50.0 million and $5.0 million in upfront payments we received from Eisai in connection with entering into the original agreement and the first amended agreement, respectively. Revenues from these upfront payments were deferred, as we determined that the exclusive rights did not have standalone value without our ongoing development and regulatory activities. Accordingly, these payments are recognized ratably as revenue over the periods in which we expect the services to be rendered, which are approximately 15 years for the Eisai Agreement and first amended agreement and 16 years for the original agreement. In addition to the upfront payments, we have received from Eisai a total of $86.5 million in milestones payments, including $0.5 million earned in March 2014 upon Eisai filing for regulatory approval of BELVIQ in Brazil, and we are eligible to receive up to an aggregate of $176.0 million in additional regulatory and development milestone payments. | |||||||||
Product Purchase Price and Purchase Price Adjustment Payments | |||||||||
We manufacture BELVIQ at our facility in Switzerland, and sell BELVIQ to Eisai for Eisai’s commercialization in the United States and, subject to applicable regulatory approval, in the other territories under the Eisai Agreement (other than Europe, China and Japan) for a purchase price starting at 31.5% and 30.75%, respectively (and starting at 27.5% in Europe, China and Japan), of Eisai’s aggregate annual net product sales (which are the gross invoiced sales less certain deductions described in the Eisai Agreement), or the Product Purchase Price, in the respective territory. The Product Purchase Price will increase on a tiered basis in the United States and the other territories (other than Europe, China and Japan) to as high as 36.5% and 35.75%, respectively, on the portion of Eisai’s annual aggregate net product sales exceeding $750.0 million in all territories other than Europe, China and Japan. The Product Purchase Price will increase to 35% in Europe, China and Japan on the portion of Eisai’s annual aggregate net product sales exceeding $500.0 million in such territories. The Product Purchase Price is subject to reduction (for sales in a particular country), including in the event of generic competition in the applicable country. The revenue we recognize for BELVIQ product revenue related to redemption of vouchers is based on our cost of goods sold. | |||||||||
In addition to payments for purchases of BELVIQ, we are eligible to receive up to an aggregate of $1.56 billion in one-time purchase price adjustment payments and other payments. These payments include up to an aggregate of $1.19 billion that are based on Eisai’s annual net product sales of BELVIQ in all of the territories under the Eisai Agreement on an aggregate basis, with the first and last amounts payable with annual net product sales of $250.0 million and $2.5 billion, respectively. Of these payments, Eisai will pay us a total of $330.0 million for annual net product sales of up to $1.0 billion. The $1.56 billion also includes $370.0 million in one-time purchase price adjustment payments we are eligible to receive based on annual net product sales in the non-US territories, comprised of $185.0 million based on Eisai’s annual net product sales in the non-US territories in North and South America and $185.0 million based on Eisai’s annual net product sales the territories outside of North and South America. The first and last amounts are payable upon first achievement of annual net product sales of $100.0 million and $1.0 billion, respectively, with respect to each of the following areas: (i) the non-US territories in North and South America and (ii) the territories outside of North and South America. In addition, we are also eligible to receive certain payments by Eisai if certain annual minimum sales requirements in Mexico, Canada and Brazil are not met during the first ten years after initial commercial sale in such territories. | |||||||||
The amount that Eisai pays us for BELVIQ product supply is based on Eisai’s estimated price at the time the order is shipped, which is Eisai’s estimate of the Product Purchase Price, and is subject to change on April 1 and October 1 of each year. Eisai’s estimate of the Product Purchase Price was changed as of October 1, 2013, and there was no further change as of April 1, 2014. At the end of Eisai’s fiscal year (March 31), the estimated price paid to us for product that Eisai sold to their distributors is compared to the Product Purchase Price of such product, and the difference is either refunded back to Eisai (for overpayments) or paid to us (for underpayments). On a monthly basis, Eisai provides us the total amount of net product sales for the month, details of the total deductions from gross to net product sales and the sales in units. We recognize our revenues monthly based on our percentage of Eisai’s monthly net product sales figures. When the revenues we recognize differ from the estimated price that Eisai paid us for such product, the difference is reclassified from deferred revenues to a receivable or payable account, as appropriate. We also adjust the deferred revenues balance for the product supply held at Eisai based on the most current net product sales figures provided to us, with the difference reclassified from deferred revenues to a receivable or payable account. | |||||||||
We recognized total revenues from BELVIQ net product sales of $2.9 million in the three months ended March 31, 2014, of which $2.7 million related to sales at the Product Purchase Price and $0.2 million related to redemptions of vouchers. The Product Purchase Price for the product Eisai has sold to date was lower than the initial estimated price that Eisai paid us for such product, primarily because the price that Eisai paid us did not include deductions for the use of vouchers, savings cards and deductions for certain items related to product launch. These excess payments, which reflect both the amounts Eisai has sold to date and the product supply remaining in Eisai’s inventory at March 31, 2014, are included in the $19.3 million classified as Payable to Eisai on our condensed consolidated balance sheets. On an annual basis, subsequent to the end of Eisai’s fiscal year, we will refund to Eisai the portion of these excess payments related to product sold by Eisai to their distributors through March 31. | |||||||||
Development Payments | |||||||||
In connection with the US approval of BELVIQ, the US Food and Drug Administration, or FDA, is requiring (i) an evaluation as part of the cardiovascular outcomes trial, or CVOT, of the effect of long-term treatment with BELVIQ on the incidence of major adverse cardiovascular events, or MACE, in overweight and obese patients with cardiovascular disease or multiple cardiovascular risk factors and (ii) the conduct of postmarketing studies to assess the safety and efficacy of BELVIQ for weight management in obese pediatric patients. In addition to the FDA-required studies, we and Eisai are prioritizing the development areas of smoking cessation, a once-daily formulation, co-administration with phentermine, as well as exploring, including as part of the CVOT, BELVIQ’s effect on conversion to type 2 diabetes and improvements in cardiovascular outcomes. | |||||||||
The below chart summarizes the general agreement regarding cost sharing between Eisai and us for significant development activities under the Eisai Agreement. In addition, Eisai or we may from time to time conduct approved development of BELVIQ at such party’s own expense. For example, Eisai is responsible for the expenses of the pilot study of 12-week duration to preliminarily assess BELVIQ and phentermine when co-administered. | |||||||||
Eisai Second Amended and Restated Marketing and Supply Agreement: Cost Sharing for Development | |||||||||
United States | Rest of | Remaining Territories | |||||||
North and South America | |||||||||
BELVIQ for weight management | Not Applicable | General | Up to total of $100.0 million - | ||||||
- Pre-approval* | Eisai: 90%; Arena: 10% | Eisai: 50%; Arena: 50% | |||||||
Certain stability work | Thereafter, Eisai: 100% | ||||||||
Eisai: 50%; Arena: 50% | |||||||||
BELVIQ for weight management | General - Eisai: 90%; Arena 10% | General | Up to total of $50.0 million - | ||||||
- Post-approval* | Eisai: 90%; Arena: 10% | Eisai: 50%; Arena: 50% | |||||||
Non-FDA required portion of CVOT | |||||||||
Up to $80.0 million - | Certain stability work | Thereafter, Eisai: 90%; | |||||||
Eisai: 50%; Arena: 50% | Eisai: 50%; Arena: 50% | Arena: 10% | |||||||
Thereafter, Eisai: 100% | |||||||||
Certain pediatric studies | |||||||||
Eisai: 50%; Arena: 50% | |||||||||
Products other than BELVIQ for weight management | Up to total of $250.0 million (as reduced by up to $80.0 million for non-FDA required portion of CVOT) - | ||||||||
- Pre-approval | Eisai: 50%; Arena: 50% | ||||||||
Products other than BELVIQ for weight management | Up to a total of $100.0 million in the aggregate across all additional products - | ||||||||
- Post-approval | Eisai: 50%; Arena: 50% | ||||||||
Thereafter, Eisai: 90%; Arena: 10% | |||||||||
* | Development required by a regulatory authority, with the exception of the non-FDA required portions of the CVOT. | ||||||||
Certain Other Terms | |||||||||
Please refer to our Annual Report on Form 10-K for the year ended December 31, 2013, for additional information regarding termination, indemnification, product liability, certain limitations and other provisions included in the Eisai Agreement. |
Sharebased_Activity
Share-based Activity | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Share-based Activity | ' | ||||||||
8. Share-based Activity | |||||||||
Share-based Compensation | |||||||||
We recognized share-based compensation expense as follows, in thousands: | |||||||||
Three months ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Cost of product sales | $ | 0 | $ | 17 | |||||
Research and development | 1,781 | 725 | |||||||
General and administrative | 1,420 | 1,043 | |||||||
Total share-based compensation expense | $ | 3,201 | $ | 1,785 | |||||
Total share-based compensation expense capitalized into inventory | $ | 0 | $ | 11 | |||||
Share-based Award Activity | |||||||||
The following table summarizes our stock option activity during the three months ended March 31, 2014, in thousands (except per share data): | |||||||||
Options | Weighted- | ||||||||
Average | |||||||||
Exercise Price | |||||||||
Outstanding at January 1, 2014 | 14,681 | $ | 4.99 | ||||||
Granted | 2,091 | 6.81 | |||||||
Exercised | (594 | ) | 4.4 | ||||||
Forfeited/cancelled/expired | (10 | ) | 10.67 | ||||||
Outstanding at March 31, 2014 | 16,168 | $ | 5.24 | ||||||
The following table summarizes activity with respect to our time-based restricted stock unit awards, or RSUs, during the three months ended March 31, 2014, in thousands (except per share data): | |||||||||
RSUs | Weighted- | ||||||||
Average | |||||||||
Grant-Date | |||||||||
Fair Value | |||||||||
Unvested at January 1, 2014 | 369 | $ | 7.23 | ||||||
Granted | 0 | ||||||||
Vested | (33 | ) | 8.81 | ||||||
Forfeited/cancelled | 0 | ||||||||
Unvested at March 31, 2014 | 336 | $ | 7.07 | ||||||
In the three months ended March 31, 2014, we granted our executive officers Total Stockholder Return, or TSR, performance restricted stock unit, or PRSU, awards. The PRSUs may be earned and converted into outstanding shares of our common stock based on the TSR of our common stock relative to the TSR over a three-year performance period beginning March 1, 2014, of the NASDAQ Biotechnology Index. In the aggregate, the target number of shares of common stock that may be earned under the PRSUs is 695,000; however, the actual number of shares that may be earned ranges from 0% to 200% of such amount. In addition, there is a cap on the number of shares that can be earned under the PRSUs equal to six times the grant-date fair value of the award, and funding is capped at 100% if the absolute 3-year TSR is negative even if performance is above the median. As these awards contain a market condition, we used a Monte Carlo simulation model to estimate their grant-date fair value, which totaled $5.0 million and will be recognized over the performance period. The table below sets forth the assumptions used to value the PRSUs granted in 2014 and their estimated grant-date fair value: | |||||||||
Risk-free interest rate | 0.7 | % | |||||||
Dividend yield | 0 | % | |||||||
Expected volatility | 78 | % | |||||||
Remaining performance period (years) | 2.99 | ||||||||
Estimated fair value per share of PRSUs granted | $ | 7.16 | |||||||
In the three months ended March 31, 2013, we granted our executive officers PRSUs with substantially the same terms as the PRSUs granted in 2014. In the aggregate, the target number of shares of common stock that may be earned under the 2013 PRSUs is 780,000; however, the actual number of shares that may be earned ranges from 0% to 200% of such amount. The three-year performance period for the 2013 PRSUs began March 1, 2013. | |||||||||
All of the PRSUs granted to date were outstanding and unvested at March 31, 2014. |
Concentration_of_Credit_Risk_a
Concentration of Credit Risk and Major Customers | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Concentration of Credit Risk and Major Customers | ' | ||||||||
9. Concentration of Credit Risk and Major Customers | |||||||||
Financial instruments, which potentially subject us to concentrations of credit risk, consist primarily of cash and cash equivalents. We limit our exposure to credit loss by holding our cash primarily in US dollars or, from time to time, placing our cash and investments in US government, agency and government-sponsored enterprise obligations and in corporate debt instruments that are rated investment grade, in accordance with an investment policy approved by our Board of Directors. | |||||||||
Eisai is the exclusive distributor and our only customer for BELVIQ in the United States, which is the only jurisdiction for which BELVIQ has received regulatory approval for marketing. We also produce drug products for Siegfried AG, or Siegfried, under a manufacturing services agreement, and all of our manufacturing services revenues are attributable to Siegfried. | |||||||||
Percentages of our total revenues are as follows: | |||||||||
Three months ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Eisai marketing and supply agreement | 91.4 | % | 63 | % | |||||
Manufacturing services agreement with Siegfried | 6.6 | % | 32.2 | % | |||||
Other collaborative agreements | 2 | % | 4.8 | % | |||||
Total percentage of revenues | 100 | % | 100 | % | |||||
Our investment in TaiGen equity securities is subject to market price volatility. See Note 3. Fluctuations in the market price of publicly traded securities may result from perceived changes in the underlying economic characteristics of the issuer, the relative price of alternative investments, general market conditions and other factors. |
Net_Loss_Per_Share
Net Loss Per Share | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Net Loss Per Share | ' | ||||||||
10. Net Loss Per Share | |||||||||
We calculate basic and diluted net loss per share using the weighted-average number of shares of common stock outstanding during the period. | |||||||||
Since we are in a net loss position, we have excluded from our calculation of diluted net loss per share all potentially dilutive (i) stock options, (ii) RSUs, (iii) PRSUs, (iv) unvested restricted stock in our deferred compensation plan and (v) warrants, and our diluted net loss per share is the same as our basic net loss per share. The table below presents the potentially dilutive securities that were excluded from our calculation of diluted net loss per share for the periods presented, in thousands. | |||||||||
Three months ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Stock options | 4,581 | 5,961 | |||||||
Warrants | 679 | 982 | |||||||
RSUs and unvested restricted stock | 99 | 82 | |||||||
Total | 5,359 | 7,025 | |||||||
Legal_Proceedings
Legal Proceedings | 3 Months Ended |
Mar. 31, 2014 | |
Legal Proceedings | ' |
11. Legal Proceedings | |
Beginning on September 20, 2010, a number of complaints were filed in the US District Court for the Southern District of California against us and certain of our current and former employees and directors on behalf of certain purchasers of our common stock. The complaints have been brought as purported stockholder class actions, and, in general, include allegations that we and certain of our current and former employees and directors violated federal securities laws by making materially false and misleading statements regarding our BELVIQ program, thereby artificially inflating the price of our common stock. The plaintiffs are seeking unspecified monetary damages and other relief. On August 8, 2011, the Court consolidated the actions and appointed a lead plaintiff and lead counsel. On November 1, 2011, the lead plaintiff filed a consolidated amended complaint. On December 30, 2011, we filed a motion to dismiss the consolidated amended complaint. On March 28, 2013, the Court granted our motion to dismiss the consolidated amended complaint without prejudice. On May 13, 2013, the lead plaintiff filed a new consolidated amended complaint. On June 14, 2013, we filed a motion to dismiss the new consolidated amended complaint. On November 5, 2013, the Court granted our motion to dismiss the new consolidated amended complaint without prejudice as to all parties except for Robert E. Hoffman, who was dismissed from the action with prejudice. On November 27, 2013, the lead plaintiff filed a motion for leave to amend the now-dismissed new consolidated amended complaint. On March 20, 2014, the Court denied plaintiff’s motion for leave to amend and dismissed the consolidated amended complaint with prejudice. On April 18, 2014, the lead plaintiff filed a notice of appeal. | |
In addition to the class actions, a complaint involving similar legal and factual issues has been brought by an individual stockholder. On December 30, 2011, we filed a motion to dismiss the individual stockholder’s complaint in federal court. On March 29, 2013, the Court granted our motion to dismiss, in part without prejudice. On May 13, 2013, the individual stockholder filed a new amended complaint. On June 14, 2013, we filed a motion to dismiss the new amended complaint. On March 20, 2014, the Court granted our motion to dismiss in part and remanded the remaining claims to state court. | |
Due to the stage of these proceedings, we are not able to predict or reasonably estimate the ultimate outcome or possible losses relating to these claims. |
Fair_Value_Disclosures_Tables
Fair Value Disclosures (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | ' | ||||||||||||||||
The following tables present our valuation hierarchy for our financial assets and liabilities that are measured at fair value on a recurring basis as of March 31, 2014, and December 31, 2013, in thousands: | |||||||||||||||||
Fair Value Measurements at March 31, 2014 | |||||||||||||||||
Balance at | Quoted | Significant | Significant | ||||||||||||||
March 31, | Prices in | Other | Unobservable | ||||||||||||||
2014 | Active | Observable | Inputs | ||||||||||||||
Markets | Inputs | (Level 3) | |||||||||||||||
(Level 1) | (Level 2) | ||||||||||||||||
Assets: | |||||||||||||||||
Money market funds 1 | $ | 183,861 | $ | 183,861 | $ | 0 | $ | 0 | |||||||||
TaiGen equity securities 2 | $ | 53,234 | $ | 53,234 | $ | 0 | $ | 0 | |||||||||
Liabilities: | |||||||||||||||||
Warrant derivative liabilities | $ | 5,002 | $ | 0 | $ | 5,002 | $ | 0 | |||||||||
1 | Included in cash and cash equivalents on our condensed consolidated balance sheets. | ||||||||||||||||
2 | Included in short-term investments, available-for-sale on our condensed consolidated balance sheets. | ||||||||||||||||
Fair Value Measurements at December 31, 2013 | |||||||||||||||||
Balance at | Quoted | Significant | Significant | ||||||||||||||
December 31, | Prices in | Other | Unobservable | ||||||||||||||
2013 | Active | Observable | Inputs | ||||||||||||||
Markets | Inputs | (Level 3) | |||||||||||||||
(Level 1) | (Level 2) | ||||||||||||||||
Assets: | |||||||||||||||||
Money market funds 1 | $ | 208,833 | $ | 208,833 | $ | 0 | $ | 0 | |||||||||
Liabilities: | |||||||||||||||||
Warrant derivative liabilities | $ | 4,892 | $ | 0 | $ | 4,892 | $ | 0 | |||||||||
1 | Included in cash and cash equivalents on our condensed consolidated balance sheets. |
Inventory_Tables
Inventory (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Components of Inventory | ' | ||||||||
All of our inventory relates to BELVIQ, and consisted of the following as of March 31, 2014, and December 31, 2013, in thousands: | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Raw materials | $ | 692 | $ | 657 | |||||
Work in process | 4,028 | 4,104 | |||||||
Finished goods at Arena GmbH | 0 | 0 | |||||||
Finished goods at Eisai | 7,227 | 7,998 | |||||||
Total inventory | $ | 11,947 | $ | 12,759 | |||||
Accounts_Payable_and_Other_Acc1
Accounts Payable and Other Accrued Liabilities (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Accounts Payable and Other Accrued Liabilities | ' | ||||||||
Accounts payable and other accrued liabilities consisted of the following as of March 31, 2014, and December 31, 2013, in thousands: | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Accounts payable | $ | 2,863 | $ | 3,721 | |||||
Accrued expenses | 1,346 | 1,477 | |||||||
Accrued clinical and preclinical study fees | 2,067 | 1,317 | |||||||
Loss provision | 497 | 567 | |||||||
Other accrued liabilities | 33 | 235 | |||||||
Total accounts payable and other accrued liabilities | $ | 6,806 | $ | 7,317 | |||||
Marketing_and_Supply_Agreement1
Marketing and Supply Agreement with Eisai (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Revenues Recognized under Eisai Agreement | ' | ||||||||
The following table summarizes the revenues we recognized under our collaboration with Eisai in the three months ended March 31, 2014, and 2013, in thousands: | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Net product sales | $ | 2,882 | $ | 0 | |||||
Amortization of upfront payments | 1,975 | 861 | |||||||
Reimbursement of research and development expenses | 745 | 2 | |||||||
Milestone payments | 500 | 500 | |||||||
Reimbursement of patent and trademark expenses | 127 | 132 | |||||||
Subtotal Eisai collaborative revenue | 3,347 | 1,495 | |||||||
Total | $ | 6,229 | $ | 1,495 | |||||
Deferred Revenues Attributable to Eisai | ' | ||||||||
The following table summarizes the deferred revenues under our collaboration with Eisai as of March 31, 2014, and December 31, 2013, in thousands: | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Upfront payments | $ | 100,130 | $ | 102,104 | |||||
Net product sales | 27,836 | 30,299 | |||||||
Total deferred revenues attributable to Eisai | 127,966 | 132,403 | |||||||
Less current portion | (34,839 | ) | (37,301 | ) | |||||
Deferred revenues attributable to Eisai, less current portion | $ | 93,127 | $ | 95,102 | |||||
Summary of Cost Sharing Allocation | ' | ||||||||
Eisai Second Amended and Restated Marketing and Supply Agreement: Cost Sharing for Development | |||||||||
United States | Rest of | Remaining Territories | |||||||
North and South America | |||||||||
BELVIQ for weight management | Not Applicable | General | Up to total of $100.0 million - | ||||||
- Pre-approval* | Eisai: 90%; Arena: 10% | Eisai: 50%; Arena: 50% | |||||||
Certain stability work | Thereafter, Eisai: 100% | ||||||||
Eisai: 50%; Arena: 50% | |||||||||
BELVIQ for weight management | General - Eisai: 90%; Arena 10% | General | Up to total of $50.0 million - | ||||||
- Post-approval* | Eisai: 90%; Arena: 10% | Eisai: 50%; Arena: 50% | |||||||
Non-FDA required portion of CVOT | |||||||||
Up to $80.0 million - | Certain stability work | Thereafter, Eisai: 90%; | |||||||
Eisai: 50%; Arena: 50% | Eisai: 50%; Arena: 50% | Arena: 10% | |||||||
Thereafter, Eisai: 100% | |||||||||
Certain pediatric studies | |||||||||
Eisai: 50%; Arena: 50% | |||||||||
Products other than BELVIQ for weight management | Up to total of $250.0 million (as reduced by up to $80.0 million for non-FDA required portion of CVOT) - | ||||||||
- Pre-approval | Eisai: 50%; Arena: 50% | ||||||||
Products other than BELVIQ for weight management | Up to a total of $100.0 million in the aggregate across all additional products - | ||||||||
- Post-approval | Eisai: 50%; Arena: 50% | ||||||||
Thereafter, Eisai: 90%; Arena: 10% | |||||||||
* | Development required by a regulatory authority, with the exception of the non-FDA required portions of the CVOT. |
Sharebased_Activity_Tables
Share-based Activity (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Share Based Compensation Expense | ' | ||||||||
We recognized share-based compensation expense as follows, in thousands: | |||||||||
Three months ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Cost of product sales | $ | 0 | $ | 17 | |||||
Research and development | 1,781 | 725 | |||||||
General and administrative | 1,420 | 1,043 | |||||||
Total share-based compensation expense | $ | 3,201 | $ | 1,785 | |||||
Total share-based compensation expense capitalized into inventory | $ | 0 | $ | 11 | |||||
Summary of Stock Option Activity | ' | ||||||||
The following table summarizes our stock option activity during the three months ended March 31, 2014, in thousands (except per share data): | |||||||||
Options | Weighted- | ||||||||
Average | |||||||||
Exercise Price | |||||||||
Outstanding at January 1, 2014 | 14,681 | $ | 4.99 | ||||||
Granted | 2,091 | 6.81 | |||||||
Exercised | (594 | ) | 4.4 | ||||||
Forfeited/cancelled/expired | (10 | ) | 10.67 | ||||||
Outstanding at March 31, 2014 | 16,168 | $ | 5.24 | ||||||
Summary of Restricted Stock Activity | ' | ||||||||
The following table summarizes activity with respect to our time-based restricted stock unit awards, or RSUs, during the three months ended March 31, 2014, in thousands (except per share data): | |||||||||
RSUs | Weighted- | ||||||||
Average | |||||||||
Grant-Date | |||||||||
Fair Value | |||||||||
Unvested at January 1, 2014 | 369 | $ | 7.23 | ||||||
Granted | 0 | ||||||||
Vested | (33 | ) | 8.81 | ||||||
Forfeited/cancelled | 0 | ||||||||
Unvested at March 31, 2014 | 336 | $ | 7.07 | ||||||
Assumptions and Estimated Fair Value of Performance Restricted Stock Unit Awards | ' | ||||||||
The table below sets forth the assumptions used to value the PRSUs granted in 2014 and their estimated grant-date fair value: | |||||||||
Risk-free interest rate | 0.7 | % | |||||||
Dividend yield | 0 | % | |||||||
Expected volatility | 78 | % | |||||||
Remaining performance period (years) | 2.99 | ||||||||
Estimated fair value per share of PRSUs granted | $ | 7.16 |
Concentration_of_Credit_Risk_a1
Concentration of Credit Risk and Major Customers (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Percentages of Total Revenues | ' | ||||||||
Percentages of our total revenues are as follows: | |||||||||
Three months ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Eisai marketing and supply agreement | 91.4 | % | 63 | % | |||||
Manufacturing services agreement with Siegfried | 6.6 | % | 32.2 | % | |||||
Other collaborative agreements | 2 | % | 4.8 | % | |||||
Total percentage of revenues | 100 | % | 100 | % | |||||
Net_Loss_Per_Share_Tables
Net Loss Per Share (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Potentially Dilutive Securities Excluded from Calculation of Diluted Net Loss Per Share | ' | ||||||||
The table below presents the potentially dilutive securities that were excluded from our calculation of diluted net loss per share for the periods presented, in thousands. | |||||||||
Three months ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Stock options | 4,581 | 5,961 | |||||||
Warrants | 679 | 982 | |||||||
RSUs and unvested restricted stock | 99 | 82 | |||||||
Total | 5,359 | 7,025 | |||||||
Financial_Assets_and_Liabiliti
Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Liabilities: | ' | ' | ||
Warrant derivative liabilities | $5,000 | $4,900 | ||
Fair Value, Measurements, Recurring | ' | ' | ||
Assets: | ' | ' | ||
Money market funds | 183,861 | [1] | 208,833 | [1] |
TaiGen equity securities | 53,234 | [2] | ' | |
Liabilities: | ' | ' | ||
Warrant derivative liabilities | 5,002 | 4,892 | ||
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets (Level 1) | ' | ' | ||
Assets: | ' | ' | ||
Money market funds | 183,861 | [1] | 208,833 | [1] |
TaiGen equity securities | 53,234 | [2] | ' | |
Liabilities: | ' | ' | ||
Warrant derivative liabilities | 0 | 0 | ||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ' | ' | ||
Assets: | ' | ' | ||
Money market funds | 0 | [1] | 0 | [1] |
TaiGen equity securities | 0 | [2] | ' | |
Liabilities: | ' | ' | ||
Warrant derivative liabilities | 5,002 | 4,892 | ||
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | ' | ' | ||
Assets: | ' | ' | ||
Money market funds | 0 | [1] | 0 | [1] |
TaiGen equity securities | 0 | [2] | ' | |
Liabilities: | ' | ' | ||
Warrant derivative liabilities | $0 | $0 | ||
[1] | Included in cash and cash equivalents on our condensed consolidated balance sheets. | |||
[2] | Included in short-term investments, available-for-sale on our condensed consolidated balance sheets. |
Recovered_Sheet1
Short-Term Investments Available-for-Sale - Additional Information (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Jan. 17, 2014 | Dec. 31, 2011 | |
TaiGen Biotechnology Co., Ltd. | TaiGen Biotechnology Co., Ltd. | TaiGen Biotechnology Co., Ltd. | ||||
Investment Holdings [Line Items] | ' | ' | ' | ' | ' | |
Equity investment | ' | ' | ' | ' | $0 | |
Investment, fair value | $53,234,000 | $0 | [1] | $53,234,000 | $49,100,000 | ' |
[1] | The balance sheet data at December 31, 2013, has been derived from audited financial statements at that date. It does not include, however, all of the information and notes required by US generally accepted accounting principles for complete financial statements. |
Components_of_Inventory_Detail
Components of Inventory (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | |
In Thousands, unless otherwise specified | |||
Inventory [Line Items] | ' | ' | |
Raw materials | $692 | $657 | |
Work in process | 4,028 | 4,104 | |
Total inventory | 11,947 | 12,759 | [1] |
Arena GmbH | ' | ' | |
Inventory [Line Items] | ' | ' | |
Finished goods | 0 | 0 | |
Eisai BELVIQ Agreement | ' | ' | |
Inventory [Line Items] | ' | ' | |
Finished goods | $7,227 | $7,998 | |
[1] | The balance sheet data at December 31, 2013, has been derived from audited financial statements at that date. It does not include, however, all of the information and notes required by US generally accepted accounting principles for complete financial statements. |
Accounts_Payable_and_Other_Acc2
Accounts Payable and Other Accrued Liabilities (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | |
In Thousands, unless otherwise specified | |||
Accounts Payable and Accrued Liabilities, Current [Abstract] | ' | ' | |
Accounts payable | $2,863 | $3,721 | |
Accrued expenses | 1,346 | 1,477 | |
Accrued clinical and preclinical study fees | 2,067 | 1,317 | |
Loss provision | 497 | 567 | |
Other accrued liabilities | 33 | 235 | |
Total accounts payable and other accrued liabilities | $6,806 | $7,317 | [1] |
[1] | The balance sheet data at December 31, 2013, has been derived from audited financial statements at that date. It does not include, however, all of the information and notes required by US generally accepted accounting principles for complete financial statements. |
Derivative_Liabilities_Additio
Derivative Liabilities - Additional Information (Detail) (USD $) | 1 Months Ended | 3 Months Ended | ||
Aug. 31, 2008 | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | |
Derivative [Line Items] | ' | ' | ' | ' |
Issuance of warrant to purchase stock, number of shares | 1,106,344 | ' | ' | ' |
Original exercise price of warrant | 7.71 | ' | ' | ' |
Warrant expiration date | 14-Aug-15 | ' | ' | ' |
Revised exercise price of warrant | ' | 4.34 | ' | ' |
Warrant outstanding | ' | 1,965,418 | ' | ' |
Adjustment price of warrant in anti-dilution provision | $6.72 | ' | ' | ' |
Fair value of warrant outstanding | ' | $5,000,000 | ' | $4,900,000 |
Gain (Loss) on valuation of derivative liabilities | ' | ($110,000) | $3,859,000 | ' |
Marketing_and_Supply_Agreement2
Marketing and Supply Agreement with Eisai - Additional Information (Detail) (USD $) | 3 Months Ended | 1 Months Ended | 45 Months Ended | 1 Months Ended | 45 Months Ended | 1 Months Ended | ||||||||||||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Nov. 30, 2013 | Nov. 30, 2013 | Nov. 30, 2013 | Nov. 30, 2013 | Mar. 31, 2014 | Nov. 30, 2013 | Nov. 30, 2013 | Nov. 30, 2013 | Nov. 30, 2013 | Jul. 31, 2010 | 31-May-12 | Mar. 31, 2014 | |
Product Purchase Price | Voucher Redemption | Eisai BELVIQ Agreement | Eisai BELVIQ Agreement | Eisai BELVIQ Agreement | Eisai BELVIQ Agreement | Eisai BELVIQ Agreement | Eisai Second Amended Agreement | Eisai Second Amended Agreement | Eisai Second Amended Agreement | Eisai Second Amended Agreement | Eisai Second Amended Agreement | Eisai Second Amended Agreement | Original Agreement | Eisai First Amended Agreement | BELVIQ in Brazil | |||
UNITED STATES | Non US Territories Other Than Europe, China and Japan | Europe, China and Japan | All Territories | All Non-US territories | Non-US Territories in North and South America | Territories Outside of North and South America | Eisai BELVIQ Agreement | |||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Collaborative agreement initiation date | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2013-11 | ' | ' | ' | ' | ' | '2010-07 | '2012-05 | ' |
Collaborative agreement upfront payments | ' | ' | ' | ' | ' | ' | ' | ' | ' | $60,000,000 | ' | ' | ' | ' | ' | $50,000,000 | $5,000,000 | ' |
Collaborative Agreement Revenue Recognition Period | ' | ' | ' | ' | ' | ' | ' | ' | ' | '15 years | ' | ' | ' | ' | ' | '16 years | '15 years | ' |
Recognized revenues | 6,814,000 | 2,373,000 | ' | ' | 6,229,000 | 1,495,000 | ' | ' | ' | ' | 86,500,000 | ' | ' | ' | ' | ' | ' | 500,000 |
Additional milestone payments on achievement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 176,000,000 | ' | ' | ' | ' | ' | ' | ' |
Purchase price range minimum | ' | ' | ' | ' | ' | ' | 31.50% | 30.75% | 27.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase price range maximum | ' | ' | ' | ' | ' | ' | 36.50% | 35.75% | 35.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Annual net product sales threshold for maximum purchase price | ' | ' | ' | ' | ' | ' | 750,000,000 | 750,000,000 | 500,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate one-time purchase price adjustments | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,560,000,000 | ' | 1,190,000,000 | ' | ' | ' | ' | ' | ' |
First annual net sales threshold to earn purchase price adjustments in all territories | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 250,000,000 | ' | ' | ' | ' | ' | ' |
Last annual net sales threshold to earn purchase price adjustments in all territories | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,500,000,000 | ' | ' | ' | ' | ' | ' |
Portion of purchase price adjustment payments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 330,000,000 | ' | ' | ' | ' | ' | ' |
Annual net sales threshold to earn portion of purchase price adjustments in all territories | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000,000 | ' | ' | ' | ' | ' | ' |
Additional one-time purchase price adjustment payments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 370,000,000 | 185,000,000 | 185,000,000 | ' | ' | ' |
First annual net sales threshold to earn purchase price adjustments outside of the US | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000,000 | 100,000,000 | ' | ' | ' |
Last annual net sales threshold to earn additional purchase price adjustments outside of the US | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000,000 | 1,000,000,000 | ' | ' | ' |
Net product sales | 2,882,000 | 0 | 2,700,000 | 200,000 | 2,882,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payable to collaborators | $19,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues_Recognized_under_Coll
Revenues Recognized under Collaboration with Eisai BELVIQ Agreement (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ' | ' |
Net product sales | $2,882 | $0 |
Total revenues | 6,814 | 2,373 |
Eisai BELVIQ Agreement | ' | ' |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ' | ' |
Net product sales | 2,882 | 0 |
Amortization of upfront payments | 1,975 | 861 |
Milestone payments | 500 | 500 |
Subtotal Eisai collaborative revenue | 3,347 | 1,495 |
Total revenues | 6,229 | 1,495 |
Eisai BELVIQ Agreement | Research and development | ' | ' |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ' | ' |
Reimbursement revenue | 745 | 2 |
Eisai BELVIQ Agreement | Patents and Trademarks | ' | ' |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ' | ' |
Reimbursement revenue | $127 | $132 |
Deferred_Revenues_Recognized_u
Deferred Revenues Recognized under Collaboration with Eisai Agreement (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | |
In Thousands, unless otherwise specified | |||
Deferred Revenue Arrangement [Line Items] | ' | ' | |
Less current portion | ($35,393) | ($37,861) | [1] |
Deferred revenues, less current portion | 99,225 | 101,329 | [1] |
Eisai BELVIQ Agreement | ' | ' | |
Deferred Revenue Arrangement [Line Items] | ' | ' | |
Total deferred revenues | 127,966 | 132,403 | |
Less current portion | -34,839 | -37,301 | |
Deferred revenues, less current portion | 93,127 | 95,102 | |
Eisai BELVIQ Agreement | Up-front Payment Arrangement | ' | ' | |
Deferred Revenue Arrangement [Line Items] | ' | ' | |
Total deferred revenues | 100,130 | 102,104 | |
Eisai BELVIQ Agreement | Sales Revenue, Goods, Net | ' | ' | |
Deferred Revenue Arrangement [Line Items] | ' | ' | |
Total deferred revenues | $27,836 | $30,299 | |
[1] | The balance sheet data at December 31, 2013, has been derived from audited financial statements at that date. It does not include, however, all of the information and notes required by US generally accepted accounting principles for complete financial statements. |
Summary_of_Cost_Sharing_Alloca
Summary of Cost Sharing Allocation (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | |
BELVIQ Product For Weight Management Pre Approval Up To One Hundred Million Dollars | Territories Outside of North and South America | ' | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ' | |
Aggregate expense cap on equal split of development expenses | $100 | [1] |
Portion of expenses | 50.00% | [1] |
BELVIQ Product For Weight Management Pre Approval Up To One Hundred Million Dollars | Territories Outside of North and South America | Eisai BELVIQ Agreement | ' | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ' | |
Portion of expenses | 50.00% | [1] |
BELVIQ Product For Weight Management Pre Approval More Than One Hundred Million Dollars | Territories Outside of North and South America | Eisai BELVIQ Agreement | ' | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ' | |
Portion of expenses | 100.00% | [1] |
BELVIQ Product For Weight Management Post Approval Up To Fifty Million Dollars | Territories Outside of North and South America | ' | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ' | |
Aggregate expense cap on equal split of development expenses | 50 | [1] |
Portion of expenses | 50.00% | [1] |
BELVIQ Product For Weight Management Post Approval Up To Fifty Million Dollars | Territories Outside of North and South America | Eisai BELVIQ Agreement | ' | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ' | |
Portion of expenses | 50.00% | [1] |
BELVIQ Product For Weight Management Post Approval More Than Fifty Million Dollars | Territories Outside of North and South America | ' | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ' | |
Portion of expenses | 10.00% | [1] |
BELVIQ Product For Weight Management Post Approval More Than Fifty Million Dollars | Territories Outside of North and South America | Eisai BELVIQ Agreement | ' | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ' | |
Portion of expenses | 90.00% | [1] |
BELVIQ Product For Weight Management Pre Approval | Non-US Territories in North and South America | ' | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ' | |
Portion of expenses | 10.00% | [1] |
BELVIQ Product For Weight Management Pre Approval | Non-US Territories in North and South America | Eisai BELVIQ Agreement | ' | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ' | |
Portion of expenses | 90.00% | [1] |
BELVIQ Product For Weight Management Pre Approval Certain Stability Work | Non-US Territories in North and South America | ' | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ' | |
Portion of expenses | 50.00% | [1] |
BELVIQ Product For Weight Management Pre Approval Certain Stability Work | Non-US Territories in North and South America | Eisai BELVIQ Agreement | ' | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ' | |
Portion of expenses | 50.00% | [1] |
BELVIQ Product For Weight Management Post Approval | Non-US Territories in North and South America | ' | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ' | |
Portion of expenses | 10.00% | [1] |
BELVIQ Product For Weight Management Post Approval | Non-US Territories in North and South America | Eisai BELVIQ Agreement | ' | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ' | |
Portion of expenses | 90.00% | [1] |
BELVIQ Product For Weight Management Post Approval | UNITED STATES | ' | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ' | |
Portion of expenses | 10.00% | [1] |
BELVIQ Product For Weight Management Post Approval | UNITED STATES | Eisai BELVIQ Agreement | ' | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ' | |
Portion of expenses | 90.00% | [1] |
BELVIQ Product For Weight Management Post Approval Certain Stability Work | Non-US Territories in North and South America | ' | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ' | |
Portion of expenses | 50.00% | [1] |
BELVIQ Product For Weight Management Post Approval Certain Stability Work | Non-US Territories in North and South America | Eisai BELVIQ Agreement | ' | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ' | |
Portion of expenses | 50.00% | [1] |
BELVIQ Product for Weight Management Post Approval Certain Pediatric Studies | UNITED STATES | ' | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ' | |
Portion of expenses | 50.00% | [1] |
BELVIQ Product for Weight Management Post Approval Certain Pediatric Studies | UNITED STATES | Eisai BELVIQ Agreement | ' | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ' | |
Portion of expenses | 50.00% | [1] |
BELVIQ Product For Weight Management Post Approval Non FDA Required Portion of Cardiovascular Outcomes Trial Up To Eighty Million Dollars | UNITED STATES | ' | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ' | |
Aggregate expense cap on equal split of development expenses | 80 | [1] |
Portion of expenses | 50.00% | [1] |
BELVIQ Product For Weight Management Post Approval Non FDA Required Portion of Cardiovascular Outcomes Trial Up To Eighty Million Dollars | UNITED STATES | Eisai BELVIQ Agreement | ' | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ' | |
Portion of expenses | 50.00% | [1] |
BELVIQ Product For Weight Management Post Approval Non FDA Required Portion of Cardiovascular Outcomes Trial More than Eighty Million Dollars | UNITED STATES | Eisai BELVIQ Agreement | ' | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ' | |
Portion of expenses | 100.00% | [1] |
BELVIQ Product Not For Weight Management Pre-Approval | ' | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ' | |
Portion of expenses | 50.00% | |
BELVIQ Product Not For Weight Management Pre-Approval | Maximum | ' | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ' | |
Aggregate expense cap on equal split of development expenses | 250 | |
BELVIQ Product Not For Weight Management Pre-Approval | Eisai BELVIQ Agreement | ' | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ' | |
Portion of expenses | 50.00% | |
BELVIQ Product Not For Weight Management Post-Approval Up To One Hundred Million Dollars | ' | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ' | |
Aggregate expense cap on equal split of development expenses | $100 | |
Portion of expenses | 50.00% | |
BELVIQ Product Not For Weight Management Post-Approval Up To One Hundred Million Dollars | Eisai BELVIQ Agreement | ' | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ' | |
Portion of expenses | 50.00% | |
BELVIQ Product Not For Weight Management Post-Approval More Than One Hundred Million Dollars | ' | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ' | |
Portion of expenses | 10.00% | |
BELVIQ Product Not For Weight Management Post-Approval More Than One Hundred Million Dollars | Eisai BELVIQ Agreement | ' | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ' | |
Portion of expenses | 90.00% | |
[1] | Development required by a regulatory authority, with the exception of the non-FDA required portions of the CVOT. |
Share_Based_Compensation_Expen
Share Based Compensation Expense (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Share-based compensation expense | $3,201 | $1,785 |
Total share-based compensation expense capitalized into inventory | 0 | 11 |
Cost of product sales | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Share-based compensation expense | 0 | 17 |
Research and development | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Share-based compensation expense | 1,781 | 725 |
General and administrative | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Share-based compensation expense | $1,420 | $1,043 |
Summary_of_Stock_Option_Activi
Summary of Stock Option Activity (Detail) (Stock Options, USD $) | 3 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 |
Stock Options | ' |
Number of stock options | ' |
Outstanding at January 1, 2014 | 14,681 |
Granted | 2,091 |
Exercised | -594 |
Forfeited/cancelled/expired | -10 |
Outstanding at March 31, 2014 | 16,168 |
Weighted Average Exercise Price | ' |
Outstanding at January 1, 2014 | $4.99 |
Granted | $6.81 |
Exercised | $4.40 |
Forfeited/cancelled/expired | $10.67 |
Outstanding at March 31, 2014 | $5.24 |
Summary_of_Restricted_Stock_Ac
Summary of Restricted Stock Activity (Detail) (Restricted Stock Units (RSU), USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Restricted Stock Units (RSU) | ' |
Restricted Stock Units | ' |
Unvested at January 1, 2014 | 369,000 |
Granted | 0 |
Vested | -33,000 |
Forfeited/cancelled | 0 |
Unvested at March 31, 2014 | 336,000 |
Weighted-Average Grant-Date Fair Value | ' |
Unvested at January 1, 2014 | $7.23 |
Granted | ' |
Vested | $8.81 |
Forfeited/cancelled | ' |
Unvested at March 31, 2014 | $7.07 |
ShareBased_Activity_Additional
Share-Based Activity - Additional Information (Detail) (Performance restricted stock units, USD $) | 3 Months Ended | |
In Millions, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
PRSUs granted | 695,000 | 780,000 |
Multipier of grant-date fair value for cap on number of PRSUs that may be granted | 6 | ' |
Vesting period | '3 years | ' |
Cap on percentage of funding if the absolute 3-year TSR is negative | 100.00% | ' |
PRSU grant-date fair value | $5 | ' |
Minimum | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Expected number of shares to be awarded as a percentage of target amounts | 0.00% | 0.00% |
Maximum | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Expected number of shares to be awarded as a percentage of target amounts | 200.00% | 200.00% |
Assumptions_used_to_Value_Perf
Assumptions used to Value Performance Restricted Stock Units Granted and Estimated Grant Date Fair Value (Detail) (Performance restricted stock units, USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Performance restricted stock units | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Risk-free interest rate | 0.70% |
Dividend yield | 0.00% |
Expected volatility | 78.00% |
Remaining performance period (years) | '2 years 11 months 27 days |
Estimated fair value per share of PRSUs granted | $7.16 |
Percentages_of_Total_Revenues_
Percentages of Total Revenues (Detail) (Revenue) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Concentration Risk [Line Items] | ' | ' |
Percentage of revenues | 100.00% | 100.00% |
Eisai marketing and supply agreement | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Percentage of revenues | 91.40% | 63.00% |
Manufacturing services agreement with Siegfried | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Percentage of revenues | 6.60% | 32.20% |
Other collaborative agreements | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Percentage of revenues | 2.00% | 4.80% |
Potentially_Dilutive_Securitie
Potentially Dilutive Securities Excluded From Calculation of Diluted Net Loss Per Share (Detail) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Total antidilutive securities excluded from calculation of diluted net loss per share | 5,359 | 7,025 |
Stock Options | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Total antidilutive securities excluded from calculation of diluted net loss per share | 4,581 | 5,961 |
Series B Warrants | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Total antidilutive securities excluded from calculation of diluted net loss per share | 679 | 982 |
RSUs and Unvested Restricted Stock | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Total antidilutive securities excluded from calculation of diluted net loss per share | 99 | 82 |