Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Aug. 04, 2016 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | ARENA PHARMACEUTICALS INC | |
Trading Symbol | ARNA | |
Entity Central Index Key | 1,080,709 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 243,256,092 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | [1] |
Current assets: | |||
Cash and cash equivalents | $ 121,986 | $ 156,184 | |
Accounts receivable | 3,343 | 4,934 | |
Inventory | 9,472 | 9,502 | |
Prepaid expenses and other current assets | 4,971 | 4,218 | |
Total current assets | 139,772 | 174,838 | |
Land, property and equipment, net | 68,190 | 71,828 | |
Intangibles, net | 7,624 | 7,775 | |
Other non-current assets | 2,261 | 2,351 | |
Total assets | 217,847 | 256,792 | |
Current liabilities: | |||
Accounts payable and other accrued liabilities | 10,374 | 8,334 | |
Accrued clinical and preclinical study fees | 4,424 | 3,286 | |
Payable to Eisai | 11,467 | 12,080 | |
Accrued restructuring charges | 5,083 | 1,793 | |
Current portion of deferred revenues | 20,021 | 21,425 | |
Current portion of lease financing obligations | 3,241 | 2,978 | |
Total current liabilities | 54,610 | 49,896 | |
Other long-term liabilities | 835 | 470 | |
Deferred revenues, less current portion | 85,260 | 87,617 | |
Lease financing obligations, less current portion | 63,583 | 65,267 | |
Commitments and contingencies | |||
Stockholders’ equity: | |||
Common stock | 24 | 24 | |
Additional paid-in capital | 1,438,313 | 1,430,917 | |
Accumulated other comprehensive income (loss) | 173 | (1,179) | |
Accumulated deficit | (1,424,951) | (1,376,220) | |
Total stockholders’ equity | 13,559 | 53,542 | |
Total liabilities and stockholders’ equity | $ 217,847 | $ 256,792 | |
[1] | The balance sheet data at December 31, 2015, 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 Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Revenues: | ||||
Net product sales | $ 4,263 | $ 4,285 | $ 7,781 | $ 10,903 |
Toll manufacturing | 1,025 | 1,390 | 2,048 | 1,736 |
Total revenues | 9,512 | 9,181 | 19,359 | 21,437 |
Operating Costs and Expenses: | ||||
Cost of product sales | 851 | 1,303 | 3,279 | 4,494 |
Cost of toll manufacturing | 1,758 | 1,812 | 2,946 | 2,214 |
Research and development | 18,546 | 24,201 | 37,048 | 46,169 |
General and administrative | 8,465 | 8,844 | 15,389 | 17,283 |
Restructuring charges | 6,115 | 0 | 6,115 | 0 |
Total operating costs and expenses | 35,735 | 36,160 | 64,777 | 70,160 |
Loss from operations | (26,223) | (26,979) | (45,418) | (48,723) |
Interest and Other Income (Expense): | ||||
Interest income | 105 | 34 | 193 | 68 |
Interest expense | (1,619) | (1,754) | (3,298) | (3,450) |
Gain (loss) from valuation of derivative liabilities | 0 | 1,171 | 0 | (378) |
Other | 554 | 721 | (208) | 1,381 |
Total interest and other income (expense), net | (960) | 172 | (3,313) | (2,379) |
Net loss | $ (27,183) | $ (26,807) | $ (48,731) | $ (51,102) |
Net loss per share: | ||||
Basic, in dollars per share | $ (0.11) | $ (0.11) | $ (0.20) | $ (0.21) |
Diluted, in dollars per share | $ (0.11) | $ (0.11) | $ (0.20) | $ (0.21) |
Shares used in calculating net loss per share: | ||||
Basic, in shares | 243,076 | 242,067 | 242,976 | 238,903 |
Diluted, in shares | 243,076 | 242,067 | 242,976 | 238,903 |
Comprehensive Loss: | ||||
Net loss | $ (27,183) | $ (26,807) | $ (48,731) | $ (51,102) |
Foreign currency translation gain (loss) | (1,239) | 527 | 1,352 | 382 |
Comprehensive loss | (28,422) | (26,280) | (47,379) | (50,720) |
Eisai | ||||
Revenues: | ||||
Net product sales | 2,852 | 3,893 | 5,311 | 8,329 |
Other collaborative revenue | 1,975 | 3,213 | 5,201 | 5,349 |
Total revenues | 4,827 | 7,106 | 10,512 | 13,678 |
Other | ||||
Revenues: | ||||
Other collaborative revenue | $ 2,249 | $ 293 | $ 4,329 | $ 3,449 |
Condensed Consolidated Stateme4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | ||
Operating Activities | |||
Net loss | $ (48,731) | $ (51,102) | |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Depreciation and amortization | 4,709 | 4,949 | |
Amortization of intangibles | 104 | 90 | |
Share-based compensation | 7,080 | 7,947 | |
Loss from valuation of derivative liabilities | 0 | 378 | |
Amortization of prepaid financing costs | 68 | 68 | |
Gain on sale of property and equipment | (161) | 0 | |
Changes in assets and liabilities: | |||
Accounts receivable | 1,665 | (412) | |
Inventory | 545 | 807 | |
Prepaid expenses and other assets | (720) | 768 | |
Payables and accrued liabilities | 5,516 | (20,894) | |
Deferred revenues | (4,206) | 10,367 | |
Other long-term liabilities | 365 | 54 | |
Net cash used in operating activities | (33,766) | (46,980) | |
Investing Activities | |||
Purchases of property and equipment | (377) | (1,769) | |
Proceeds from sale of property and equipment | 161 | 0 | |
Other non-current assets | 0 | (55) | |
Net cash used in investing activities | (216) | (1,824) | |
Financing Activities | |||
Principal payments on lease financing obligations | (1,421) | (1,184) | |
Proceeds from issuance of common stock | 230 | 102,663 | |
Net cash provided by (used in) financing activities | (1,191) | 101,479 | |
Effect of exchange rate changes on cash | 975 | 817 | |
Net increase (decrease) in cash and cash equivalents | (34,198) | 53,492 | |
Cash and cash equivalents at beginning of period | 156,184 | [1] | 163,209 |
Cash and cash equivalents at end of period | $ 121,986 | $ 216,701 | |
[1] | The balance sheet data at December 31, 2015, 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 | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
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, 2015, as filed with the Securities and Exchange Commission, or SEC, from which we derived our balance sheet as of December 31, 2015. 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. In May 2014, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update, or ASU, No. 2014-09, “Revenue from Contracts with Customers.” ASU No. 2014-09 outlines a comprehensive revenue recognition model and supersedes most current revenue recognition guidance. ASU No. 2014-09 is effective for annual reporting periods, and interim periods within those periods, beginning after December 15, 2017. ASU No. 2014-09 allows for two methods of adoption: (a) “full retrospective” adoption, meaning the standard is applied to all periods presented, or (b) “modified retrospective” adoption, meaning the cumulative effect of applying ASU No. 2014-09 is recognized as an adjustment to the opening retained earnings balance for the year of implementation. We have not yet selected an adoption method as we are currently evaluating the impact of ASU No. 2014-09 on our consolidated financial statements. In August 2014, the FASB issued ASU No. 2014-15, “Presentation of Financial Statements – Going Concern: Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern.” ASU No. 2014-15 requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date the financial statements are issued and provides guidance on determining when and how to disclose going concern uncertainties in the financial statements. Certain disclosures will be required if conditions give rise to substantial doubt about an entity’s ability to continue as a going concern. ASU No. 2014-15 applies to all entities and is effective for annual and interim periods ending after December 15, 2016, with early adoption permitted. We do not expect the adoption of ASU No. 2014-15 to have a material impact on our consolidated financial statements. In January 2016, the FASB issued ASU No. 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities.” ASU No. 2016-01 supersedes and amends the guidance to classify equity securities with readily determinable fair values into different categories (that is, trading or available-for-sale) and require equity securities to be measured at fair value with changes in the fair value recognized through net income. The amendments allow equity investments that do not have readily determinable fair values to be remeasured at fair value either upon the occurrence of an observable price change or upon identification of an impairment. The amendments also require enhanced disclosures about those investments. ASU No. 2016-01 is effective for annual reporting periods, and interim periods within those periods, beginning after December 15, 2017, and calls for prospective application, with early application permitted. We do not expect the adoption of ASU No. 2016-01 to have a material impact on our consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, “Leases.” ASU No. 2016-02 amends the accounting guidance for leases. The amendments contain principles that will require lessees to recognize most leases on the balance sheet by recording a right-of-use asset and a lease liability, unless the lease is a short-term lease that has an accounting lease term of twelve months or less. The amendments also contain other changes to the current lease guidance that may result in changes to how entities determine which contractual arrangements qualify as a lease, the accounting for executory costs (such as property taxes and insurance), as well as which lease origination costs will be capitalizable. The new standard also requires expanded quantitative and qualitative disclosures. ASU No. 2016-02 is effective for annual reporting periods, and interim periods within those periods, beginning after December 15, 2018, with early adoption permitted. ASU No. 2016-02 requires the use of the modified retrospective transition method, whereby the new guidance will be applied at the beginning of the earliest period presented in the financial statements of the period of adoption. We are currently evaluating the impact of ASU No. 2016-02 on our consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, “Improvements to Employee Share-Based Payment Accounting.” ASU No. 2016-09 is designed to simplify several aspects of accounting for share-based payment award transactions, including income tax consequences, classification of awards as either equity or liabilities, classification on the statement of cash flows and forfeiture rate calculations. ASU No. 2016-09 is effective for annual reporting periods, and interim periods within those periods, beginning after December 15, 2016, with early adoption permitted. We are currently evaluating the impact of ASU No. 2016-09 on our consolidated financial statements. 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 | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
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, in thousands: Fair Value Measurements at June 30, 2016 Balance Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Money market funds 1 $ 76,274 $ 76,274 $ 0 $ 0 Fair Value Measurements at December 31, 2015 Balance Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Money market funds 1 $ 113,080 $ 113,080 $ 0 $ 0 (1) Included in cash and cash equivalents on our condensed consolidated balance sheets. |
Inventory
Inventory | 6 Months Ended |
Jun. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Inventory | 3. Inventory Inventory consisted of the following, in thousands: June 30, 2016 December 31, 2015 Raw materials $ 2,616 $ 2,487 Work in process 3,144 2,781 Finished goods at Arena GmbH 1,269 165 Finished goods at Eisai 2,228 3,309 Finished goods at Ildong 215 760 Total inventory $ 9,472 $ 9,502 |
Land, Property and Equipment
Land, Property and Equipment | 6 Months Ended |
Jun. 30, 2016 | |
Property Plant And Equipment [Abstract] | |
Land, Property and Equipment | 4. Land, Property and Equipment Land, property and equipment consisted of the following, in thousands: June 30, 2016 December 31, 2015 Cost $ 170,894 $ 172,729 Less accumulated depreciation and amortization (102,704 ) (100,901 ) Land, property and equipment, net $ 68,190 $ 71,828 |
Accounts Payable and Other Accr
Accounts Payable and Other Accrued Liabilities | 6 Months Ended |
Jun. 30, 2016 | |
Payables And Accruals [Abstract] | |
Accounts Payable and Other Accrued Liabilities | 5. Accounts Payable and Other Accrued Liabilities Accounts payable and other accrued liabilities consisted of the following, in thousands: June 30, 2016 December 31, 2015 Accounts payable $ 4,149 $ 2,078 Accrued compensation 4,857 5,118 Other accrued liabilities 1,368 1,138 Total accounts payable and other accrued liabilities $ 10,374 $ 8,334 |
Marketing and Supply Agreement
Marketing and Supply Agreement with Eisai | 6 Months Ended |
Jun. 30, 2016 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Marketing and Supply Agreement with Eisai | 6. Marketing and Supply Agreement with Eisai The following table summarizes the revenues we recognized under our collaboration with Eisai Inc. and Eisai Co., Ltd., which we collectively refer to as Eisai, in thousands: Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 Net product sales $ 2,852 $ 3,893 $ 5,311 $ 8,329 Amortization of upfront payments 1,885 1,885 3,770 3,770 Reimbursement of development expenses 0 1,156 1,231 1,347 Reimbursement of patent and trademark expenses 90 172 200 232 Subtotal other Eisai collaborative revenue 1,975 3,213 5,201 5,349 Total $ 4,827 $ 7,106 $ 10,512 $ 13,678 The following table summarizes the deferred revenues under our collaboration with Eisai, in thousands: June 30, 2016 December 31, 2015 Upfront payments $ 83,163 $ 86,933 Net product sales 6,613 10,754 Total deferred revenues attributable to Eisai 89,776 97,687 Less current portion (14,154 ) (18,295 ) Deferred revenues attributable to Eisai, less current portion $ 75,622 $ 79,392 |
Share-based Activity
Share-based Activity | 6 Months Ended |
Jun. 30, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-based Activity | 7. Share-based Activity Share-based Compensation. We recognized share-based compensation expense as follows, in thousands: Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 Cost of product sales $ 0 $ 0 $ 20 $ 0 Research and development 1,977 2,185 3,740 4,241 General and administrative 1,262 1,929 2,288 3,706 Restructuring charges 1,032 0 1,032 0 Total share-based compensation expense $ 4,271 $ 4,114 $ 7,080 $ 7,947 Total share-based compensation expense capitalized into inventory $ 48 $ 43 $ 85 $ 105 Share-based Award Activity. The following table summarizes our stock option activity during the six months ended June 30, 2016, in thousands (except per share data): Options Weighted- Average Exercise Price Outstanding at January 1, 2016 16,407 $ 5.01 Granted 14,266 1.60 Exercised (38 ) 1.62 Forfeited/cancelled/expired (1,475 ) 5.80 Outstanding at June 30, 2016 29,160 $ 3.31 The following table summarizes activity with respect to our time-based restricted stock unit awards, or RSUs, during the six months ended June 30, 2016, in thousands (except per share data): RSUs Weighted- Average Grant-Date Fair Value Unvested at January 1, 2016 273 $ 4.67 Granted 0 Vested (157 ) 4.27 Forfeited/cancelled (9 ) 4.31 Unvested at June 30, 2016 107 $ 5.29 During the six months ended June 30, 2016, the remaining Total Stockholder Return, or TSR, performance restricted stock unit, or PRSU, awards that we granted to our executive officers in March 2013 were forfeited without any earnout based on the TSR of our common stock relative to the TSR of the NASDAQ Biotechnology Index over the three-year performance period that began on March 1, 2013. In the aggregate, the target number of shares of common stock that could have been earned under the PRSUs granted in March 2013 was 780,000. Except for those cancelled due to employment separation from Arena, the PRSU awards granted in March 2014 and March 2015 are still outstanding at June 30, 2016. |
Concentrations of Credit Risk a
Concentrations of Credit Risk and Major Customers | 6 Months Ended |
Jun. 30, 2016 | |
Risks And Uncertainties [Abstract] | |
Concentrations of Credit Risk and Major Customers | 8. Concentrations 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, under our Second Amended and Restated Marketing and Supply Agreement, or Eisai Agreement, and Ildong Pharmaceutical Co., Ltd., or Ildong, under our Marketing and Supply Agreement, or Ildong Agreement, are the exclusive distributors of BELVIQ in the United States and South Korea, respectively. Eisai also has the exclusive rights to distribute BELVIQ XR and VENESPRI in the United States and Mexico, respectively. These are the only jurisdictions for which lorcaserin has received approval. We also produce drug products for Siegfried AG, or Siegfried, and, to a lesser extent, another third party under toll manufacturing agreements. In May 2015, Arena Pharmaceuticals GmbH, or Arena GmbH, which is our wholly owned subsidiary, and Roivant Sciences, Ltd., or Roivant, entered into a Development, Marketing and Supply Agreement, or Axovant Agreement, under which Arena GmbH granted Roivant exclusive worldwide rights to develop and commercialize nelotanserin, subject to regulatory approval. In October 2015, Roivant assigned the Axovant Agreement to its subsidiary, Axovant Sciences Ltd., or Axovant. We also provide certain services and will manufacture and sell nelotanserin to Axovant. In December 2015, we and Boehringer Ingelheim GmbH entered into an exclusive agreement, or Boehringer Ingelheim Agreement, to conduct joint research to identify drug candidates targeting an undisclosed GPCR that belongs to the group of orphan central nervous system, or CNS, receptors. Percentages of our total revenues are as follows: Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 Eisai Agreement 50.7 % 77.4 % 54.3 % 63.8 % Boehringer Ingelheim Agreement 15.3 % 0.0 % 14.4 % 0.0 % Ildong Agreement 16.0 % 5.3 % 13.8 % 26.9 % Toll manufacturing agreements 10.8 % 15.2 % 10.6 % 8.1 % Axovant Agreement 6.5 % 1.1 % 6.3 % 0.5 % Other collaborative agreements 0.7 % 1.0 % 0.6 % 0.7 % Total percentage of revenues 100.0 % 100.0 % 100.0 % 100.0 % |
Net Loss Per Share
Net Loss Per Share | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | 9. 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, in addition to excluding potentially dilutive out-of-the money securities, we exclude from our calculation of diluted net loss per share all potentially dilutive in-the-money (i) stock options, (ii) RSUs, (iii) PRSUs, (iv) unvested restricted stock in our deferred compensation plan and (v) our previously outstanding warrant, and our diluted net loss per share is the same as our basic net loss per share. The following table presents the weighted-average number of potentially dilutive securities that were excluded from our calculation of diluted net loss per share, in thousands: Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 Stock options 26,681 17,671 22,886 16,815 RSUs and unvested restricted stock 239 526 276 519 Warrant 0 0 0 66 Total 26,920 18,197 23,162 17,400 Because the market conditions for the PRSUs were not satisfied at June 30, 2016, and June 30, 2015, such securities are excluded from the table above. |
Legal Proceedings
Legal Proceedings | 6 Months Ended |
Jun. 30, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
Legal Proceedings | 10. 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 were 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 sought 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 March 28, 2013, the Court dismissed the consolidated amended complaint without prejudice. On May 13, 2013, the lead plaintiff filed a second consolidated amended complaint. On November 5, 2013, the Court dismissed the second 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 second consolidated amended complaint. On March 20, 2014, the Court denied plaintiff’s motion and dismissed the second consolidated amended complaint with prejudice. On April 18, 2014, the lead plaintiff filed a notice of appeal, and on August 27, 2014, the lead plaintiff filed his appellate brief in the US Court of Appeals for the Ninth Circuit. On October 24, 2014, we filed our answering brief in response to the lead plaintiff’s appeal. On December 5, 2014, the lead plaintiff filed his reply brief. A panel of the US Court of Appeals for the Ninth Circuit heard oral argument on the appeal on May 4, 2016. 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. |
Restructuring Charges
Restructuring Charges | 6 Months Ended |
Jun. 30, 2016 | |
Restructuring And Related Activities [Abstract] | |
Restructuring Charges | 11. Restructuring Charges In October 2015, we committed to a reduction in our US workforce of approximately 35%, or approximately 80 employees, which we substantially completed by December 31, 2015. In November 2015, we committed to a reduction in our Swiss workforce of approximately 17%, or approximately 14 employees, which we substantially completed by the second quarter of 2016. As a result of these workforce reductions, we recorded a restructuring charge in the fourth quarter of 2015 for termination benefits of $4.0 million, and at June 30, 2016, all of this charge has been paid. In June 2016, we committed to a reduction in our US workforce of approximately 73%, or approximately 100 employees, which we plan to substantially complete by August 31, 2016. As a result of this workforce reduction, we recorded estimated restructuring charges during the second quarter of 2016 of $6.1 million in connection with one-time employee termination costs, including severance and other benefits. Included within this amount is non-cash, share-based compensation expense of $1.0 million related to the accelerated vesting of stock options and the extension of the exercise period of vested options for employees impacted by the workforce reduction. |
Management Changes
Management Changes | 6 Months Ended |
Jun. 30, 2016 | |
Compensation And Retirement Disclosure [Abstract] | |
Management Changes | 12. Management Changes Appointment of President and Chief Executive Officer. In May 2016, our Board of Directors appointed Amit Munshi as our President, Chief Executive Officer and interim principal financial officer, and he joined our Board of Directors in June 2016 following our 2016 Annual Stockholders’ Meeting. Harry F. Hixson, Jr., Ph.D., who served as our interim Chief Executive Officer and interim principal financial officer from October 2015 to May 2016, continues to serve on our Board of Directors. In connection with Mr. Munshi’s appointment as an officer, our Board of Directors’ Compensation Committee approved an inducement stock option grant to Mr. Munshi to purchase 3,800,000 shares of our common stock under our 2013 Long-Term Incentive Plan, as amended in May 2016 to reserve an additional 3,800,000 shares of common stock for inducement awards. The nonstatutory stock options have a seven-year term and will vest over four years, with 25% of the shares subject to vesting one year after grant and the remainder of the shares vesting quarterly over the following three years in equal installments, subject to his continued service through the applicable vesting dates and possible acceleration in specified circumstances. Termination of Chief Medical Officer. In June 2016, our Board of Directors terminated without cause our Senior Vice President and Chief Medical Officer, William R. Shanahan, Jr., M.D., J.D. In connection with Dr. Shanahan’s termination, and in accordance with our Amended and Restated Severance Benefit Plan, as amended, we will provide him the following termination benefits: (1) a cash severance payment of approximately $0.5 million (subject to applicable withholdings); (2) continuation of health insurance coverage for a period of 12 months; (3) acceleration of the stock options and RSUs (other than PRSUs) held by Dr. Shanahan that would otherwise have vested through the 12-month period following the date of his termination, provided that, for purposes of calculating such vesting acceleration, any unvested portion of such equity awards that were scheduled to vest in annual installments are treated as if the original grant provided for vesting in equal monthly installments rather than annually; and (4) continued stock option exercisability until the later of (i) the original post-termination exercise period provided in the applicable stock option agreement or (ii) 12 months (but not beyond the original contractual life of the option). In addition, with respect to outstanding PRSUs, when our Board of Directors’ Compensation Committee determines our relative performance for an applicable performance period, a pro-rata portion of the relevant PRSUs held by Dr. Shanahan is eligible to vest (based on the percentage of the performance period that Dr. Shanahan provided service prior to his termination). The pro-rata vesting may be accelerated if we undergo a change in control before the scheduled end of the performance period. We recorded a charge of $1.0 million in the second quarter of 2016 related to these benefits, including non-cash, share-based compensation expense of $0.4 million, which is included in research and development expense in our consolidated statement of operations and comprehensive loss for the three and six months ended June 30, 2016. As of June 30, 2016, there are remaining accruals for these benefits of $0.6 million included in accounts payable and other accrued expenses, the majority of which we expect to pay in the fourth quarter of 2016. Appointment of Chief Financial Officer. In June 2016, our Board of Directors appointed Kevin R. Lind as our Executive Vice President and Chief Financial Officer. In connection with such appointment, our Board’s Compensation Committee approved an inducement stock option grant to Mr. Lind to purchase 800,000 shares of our common stock under our 2013 Long-Term Incentive Plan, as amended in May 2016 and June 2016, to reserve an additional 800,000 shares of common stock for inducement awards in addition to the 3,800,000 shares it previously reserved for such awards. The nonstatutory stock options have a seven-year term and will vest over 4 years, with 25% of the shares subject to vesting one year after grant and the remainder of the shares vesting monthly over the following three years in equal installments, subject to his continued service through the applicable vesting dates and possible acceleration in specified circumstances. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | 13. Subsequent Events In July 2016, the US Food and Drug Administration approved the New Drug Application for our once-daily formulation of lorcaserin for chronic weight management under the brand name BELVIQ XR. Eisai will pay us a $10.0 million milestone payment that is related to this achievement. In July 2016, the Federal Commission for the Protection Against Sanitary Risk approved the Marketing Authorization Application in Mexico for our twice-daily formulation of lorcaserin for chronic weight management. The product will be sold under the brand name VENESPRI. Eisai will pay us a $1.0 million milestone payment that is related to this achievement. In July 2016, we committed to a reduction of our manufacturing workforce in Zofingen, Switzerland of approximately 26%, or approximately 17 employees, which we plan to substantially complete by February 28, 2017. As a result of this workforce reduction, we estimate that we will incur restructuring charges, primarily in the third quarter of 2016, of approximately $0.3 million (a majority of which are cash expenditures) in connection with one-time employee termination costs, including severance and other benefits. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
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, 2015, as filed with the Securities and Exchange Commission, or SEC, from which we derived our balance sheet as of December 31, 2015. 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. |
New Accounting Guidance | In May 2014, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update, or ASU, No. 2014-09, “Revenue from Contracts with Customers.” ASU No. 2014-09 outlines a comprehensive revenue recognition model and supersedes most current revenue recognition guidance. ASU No. 2014-09 is effective for annual reporting periods, and interim periods within those periods, beginning after December 15, 2017. ASU No. 2014-09 allows for two methods of adoption: (a) “full retrospective” adoption, meaning the standard is applied to all periods presented, or (b) “modified retrospective” adoption, meaning the cumulative effect of applying ASU No. 2014-09 is recognized as an adjustment to the opening retained earnings balance for the year of implementation. We have not yet selected an adoption method as we are currently evaluating the impact of ASU No. 2014-09 on our consolidated financial statements. In August 2014, the FASB issued ASU No. 2014-15, “Presentation of Financial Statements – Going Concern: Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern.” ASU No. 2014-15 requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date the financial statements are issued and provides guidance on determining when and how to disclose going concern uncertainties in the financial statements. Certain disclosures will be required if conditions give rise to substantial doubt about an entity’s ability to continue as a going concern. ASU No. 2014-15 applies to all entities and is effective for annual and interim periods ending after December 15, 2016, with early adoption permitted. We do not expect the adoption of ASU No. 2014-15 to have a material impact on our consolidated financial statements. In January 2016, the FASB issued ASU No. 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities.” ASU No. 2016-01 supersedes and amends the guidance to classify equity securities with readily determinable fair values into different categories (that is, trading or available-for-sale) and require equity securities to be measured at fair value with changes in the fair value recognized through net income. The amendments allow equity investments that do not have readily determinable fair values to be remeasured at fair value either upon the occurrence of an observable price change or upon identification of an impairment. The amendments also require enhanced disclosures about those investments. ASU No. 2016-01 is effective for annual reporting periods, and interim periods within those periods, beginning after December 15, 2017, and calls for prospective application, with early application permitted. We do not expect the adoption of ASU No. 2016-01 to have a material impact on our consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, “Leases.” ASU No. 2016-02 amends the accounting guidance for leases. The amendments contain principles that will require lessees to recognize most leases on the balance sheet by recording a right-of-use asset and a lease liability, unless the lease is a short-term lease that has an accounting lease term of twelve months or less. The amendments also contain other changes to the current lease guidance that may result in changes to how entities determine which contractual arrangements qualify as a lease, the accounting for executory costs (such as property taxes and insurance), as well as which lease origination costs will be capitalizable. The new standard also requires expanded quantitative and qualitative disclosures. ASU No. 2016-02 is effective for annual reporting periods, and interim periods within those periods, beginning after December 15, 2018, with early adoption permitted. ASU No. 2016-02 requires the use of the modified retrospective transition method, whereby the new guidance will be applied at the beginning of the earliest period presented in the financial statements of the period of adoption. We are currently evaluating the impact of ASU No. 2016-02 on our consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, “Improvements to Employee Share-Based Payment Accounting.” ASU No. 2016-09 is designed to simplify several aspects of accounting for share-based payment award transactions, including income tax consequences, classification of awards as either equity or liabilities, classification on the statement of cash flows and forfeiture rate calculations. ASU No. 2016-09 is effective for annual reporting periods, and interim periods within those periods, beginning after December 15, 2016, with early adoption permitted. We are currently evaluating the impact of ASU No. 2016-09 on our consolidated financial statements. |
Use of Estimates | 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 Measurements | 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. |
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, under our Second Amended and Restated Marketing and Supply Agreement, or Eisai Agreement, and Ildong Pharmaceutical Co., Ltd., or Ildong, under our Marketing and Supply Agreement, or Ildong Agreement, are the exclusive distributors of BELVIQ in the United States and South Korea, respectively. Eisai also has the exclusive rights to distribute BELVIQ XR and VENESPRI in the United States and Mexico, respectively. These are the only jurisdictions for which lorcaserin has received approval. We also produce drug products for Siegfried AG, or Siegfried, and, to a lesser extent, another third party under toll manufacturing agreements. In May 2015, Arena Pharmaceuticals GmbH, or Arena GmbH, which is our wholly owned subsidiary, and Roivant Sciences, Ltd., or Roivant, entered into a Development, Marketing and Supply Agreement, or Axovant Agreement, under which Arena GmbH granted Roivant exclusive worldwide rights to develop and commercialize nelotanserin, subject to regulatory approval. In October 2015, Roivant assigned the Axovant Agreement to its subsidiary, Axovant Sciences Ltd., or Axovant. We also provide certain services and will manufacture and sell nelotanserin to Axovant. In December 2015, we and Boehringer Ingelheim GmbH entered into an exclusive agreement, or Boehringer Ingelheim Agreement, to conduct joint research to identify drug candidates targeting an undisclosed GPCR that belongs to the group of orphan central nervous system, or CNS, receptors. Percentages of our total revenues are as follows: Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 Eisai Agreement 50.7 % 77.4 % 54.3 % 63.8 % Boehringer Ingelheim Agreement 15.3 % 0.0 % 14.4 % 0.0 % Ildong Agreement 16.0 % 5.3 % 13.8 % 26.9 % Toll manufacturing agreements 10.8 % 15.2 % 10.6 % 8.1 % Axovant Agreement 6.5 % 1.1 % 6.3 % 0.5 % Other collaborative agreements 0.7 % 1.0 % 0.6 % 0.7 % Total percentage of revenues 100.0 % 100.0 % 100.0 % 100.0 % |
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, in addition to excluding potentially dilutive out-of-the money securities, we exclude from our calculation of diluted net loss per share all potentially dilutive in-the-money (i) stock options, (ii) RSUs, (iii) PRSUs, (iv) unvested restricted stock in our deferred compensation plan and (v) our previously outstanding warrant, and our diluted net loss per share is the same as our basic net loss per share. |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
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, in thousands: Fair Value Measurements at June 30, 2016 Balance Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Money market funds 1 $ 76,274 $ 76,274 $ 0 $ 0 Fair Value Measurements at December 31, 2015 Balance Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Money market funds 1 $ 113,080 $ 113,080 $ 0 $ 0 (1) Included in cash and cash equivalents on our condensed consolidated balance sheets. |
Inventory (Tables)
Inventory (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Components of Inventory | Inventory consisted of the following, in thousands: June 30, 2016 December 31, 2015 Raw materials $ 2,616 $ 2,487 Work in process 3,144 2,781 Finished goods at Arena GmbH 1,269 165 Finished goods at Eisai 2,228 3,309 Finished goods at Ildong 215 760 Total inventory $ 9,472 $ 9,502 |
Land, Property and Equipment (T
Land, Property and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Property Plant And Equipment [Abstract] | |
Land, Property and Equipment | Land, property and equipment consisted of the following, in thousands: June 30, 2016 December 31, 2015 Cost $ 170,894 $ 172,729 Less accumulated depreciation and amortization (102,704 ) (100,901 ) Land, property and equipment, net $ 68,190 $ 71,828 |
Accounts Payable and Other Ac22
Accounts Payable and Other Accrued Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Payables And Accruals [Abstract] | |
Accounts Payable and Other Accrued Liabilities | Accounts payable and other accrued liabilities consisted of the following, in thousands: June 30, 2016 December 31, 2015 Accounts payable $ 4,149 $ 2,078 Accrued compensation 4,857 5,118 Other accrued liabilities 1,368 1,138 Total accounts payable and other accrued liabilities $ 10,374 $ 8,334 |
Marketing and Supply Agreemen23
Marketing and Supply Agreement with Eisai (Tables) - Eisai | 6 Months Ended |
Jun. 30, 2016 | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Revenues Recognized under Eisai Agreement | The following table summarizes the revenues we recognized under our collaboration with Eisai Inc. and Eisai Co., Ltd., which we collectively refer to as Eisai, in thousands: Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 Net product sales $ 2,852 $ 3,893 $ 5,311 $ 8,329 Amortization of upfront payments 1,885 1,885 3,770 3,770 Reimbursement of development expenses 0 1,156 1,231 1,347 Reimbursement of patent and trademark expenses 90 172 200 232 Subtotal other Eisai collaborative revenue 1,975 3,213 5,201 5,349 Total $ 4,827 $ 7,106 $ 10,512 $ 13,678 |
Deferred Revenues Attributable to Eisai | The following table summarizes the deferred revenues under our collaboration with Eisai, in thousands: June 30, 2016 December 31, 2015 Upfront payments $ 83,163 $ 86,933 Net product sales 6,613 10,754 Total deferred revenues attributable to Eisai 89,776 97,687 Less current portion (14,154 ) (18,295 ) Deferred revenues attributable to Eisai, less current portion $ 75,622 $ 79,392 |
Share-based Activity (Tables)
Share-based Activity (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share Based Compensation Expense | We recognized share-based compensation expense as follows, in thousands: Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 Cost of product sales $ 0 $ 0 $ 20 $ 0 Research and development 1,977 2,185 3,740 4,241 General and administrative 1,262 1,929 2,288 3,706 Restructuring charges 1,032 0 1,032 0 Total share-based compensation expense $ 4,271 $ 4,114 $ 7,080 $ 7,947 Total share-based compensation expense capitalized into inventory $ 48 $ 43 $ 85 $ 105 |
Summary of Stock Option Activity | The following table summarizes our stock option activity during the six months ended June 30, 2016, in thousands (except per share data): Options Weighted- Average Exercise Price Outstanding at January 1, 2016 16,407 $ 5.01 Granted 14,266 1.60 Exercised (38 ) 1.62 Forfeited/cancelled/expired (1,475 ) 5.80 Outstanding at June 30, 2016 29,160 $ 3.31 |
Summary of Restricted Stock Unit Awards Activity | The following table summarizes activity with respect to our time-based restricted stock unit awards, or RSUs, during the six months ended June 30, 2016, in thousands (except per share data): RSUs Weighted- Average Grant-Date Fair Value Unvested at January 1, 2016 273 $ 4.67 Granted 0 Vested (157 ) 4.27 Forfeited/cancelled (9 ) 4.31 Unvested at June 30, 2016 107 $ 5.29 |
Concentrations of Credit Risk25
Concentrations of Credit Risk and Major Customers (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Sales Revenue, Net | |
Concentration Risk [Line Items] | |
Percentages of Total Revenues | Percentages of our total revenues are as follows: Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 Eisai Agreement 50.7 % 77.4 % 54.3 % 63.8 % Boehringer Ingelheim Agreement 15.3 % 0.0 % 14.4 % 0.0 % Ildong Agreement 16.0 % 5.3 % 13.8 % 26.9 % Toll manufacturing agreements 10.8 % 15.2 % 10.6 % 8.1 % Axovant Agreement 6.5 % 1.1 % 6.3 % 0.5 % Other collaborative agreements 0.7 % 1.0 % 0.6 % 0.7 % Total percentage of revenues 100.0 % 100.0 % 100.0 % 100.0 % |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Potentially Dilutive Securities Excluded from Calculation of Diluted Net Income Loss Per Share | The following table presents the weighted-average number of potentially dilutive securities that were excluded from our calculation of diluted net loss per share, in thousands: Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 Stock options 26,681 17,671 22,886 16,815 RSUs and unvested restricted stock 239 526 276 519 Warrant 0 0 0 66 Total 26,920 18,197 23,162 17,400 |
Marketing and Supply Agreemen27
Marketing and Supply Agreement with Eisai - Revenues Recognized under Collaboration with Eisai (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||
Net product sales | $ 4,263 | $ 4,285 | $ 7,781 | $ 10,903 |
Total revenues | 9,512 | 9,181 | 19,359 | 21,437 |
Eisai | ||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||
Net product sales | 2,852 | 3,893 | 5,311 | 8,329 |
Amortization of upfront payments | 1,885 | 1,885 | 3,770 | 3,770 |
Subtotal other Eisai collaborative revenue | 1,975 | 3,213 | 5,201 | 5,349 |
Total revenues | 4,827 | 7,106 | 10,512 | 13,678 |
Eisai | Research and development | ||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||
Reimbursement of expenses | 0 | 1,156 | 1,231 | 1,347 |
Eisai | Patent and trademark expenses | ||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||
Reimbursement of expenses | $ 90 | $ 172 | $ 200 | $ 232 |
Marketing and Supply Agreemen28
Marketing and Supply Agreement with Eisai - Deferred Revenues under Collaboration with Eisai (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | |
Deferred Revenue Arrangement [Line Items] | |||
Less current portion | $ (20,021) | $ (21,425) | [1] |
Deferred revenues, less current portion | 85,260 | 87,617 | [1] |
Eisai | |||
Deferred Revenue Arrangement [Line Items] | |||
Total deferred revenues | 89,776 | 97,687 | |
Less current portion | (14,154) | (18,295) | |
Deferred revenues, less current portion | 75,622 | 79,392 | |
Eisai | Upfront payments | |||
Deferred Revenue Arrangement [Line Items] | |||
Total deferred revenues | 83,163 | 86,933 | |
Eisai | Net product sales | |||
Deferred Revenue Arrangement [Line Items] | |||
Total deferred revenues | $ 6,613 | $ 10,754 | |
[1] | The balance sheet data at December 31, 2015, 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. |
Concentrations of Credit Risk29
Concentrations of Credit Risk and Major Customers - Percentages of Total Revenues (Detail) - Sales Revenue, Net | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Concentration Risk [Line Items] | ||||
Percentage of revenues | 100.00% | 100.00% | 100.00% | 100.00% |
Eisai Agreement | ||||
Concentration Risk [Line Items] | ||||
Percentage of revenues | 50.70% | 77.40% | 54.30% | 63.80% |
Boehringer Ingelheim Agreement | ||||
Concentration Risk [Line Items] | ||||
Percentage of revenues | 15.30% | 0.00% | 14.40% | 0.00% |
Ildong Agreement | ||||
Concentration Risk [Line Items] | ||||
Percentage of revenues | 16.00% | 5.30% | 13.80% | 26.90% |
Toll manufacturing agreements | ||||
Concentration Risk [Line Items] | ||||
Percentage of revenues | 10.80% | 15.20% | 10.60% | 8.10% |
Axovant Agreement | ||||
Concentration Risk [Line Items] | ||||
Percentage of revenues | 6.50% | 1.10% | 6.30% | 0.50% |
Other collaborative agreements | ||||
Concentration Risk [Line Items] | ||||
Percentage of revenues | 0.70% | 1.00% | 0.60% | 0.70% |
Fair Value Disclosures - Financ
Fair Value Disclosures - Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - Fair Value Measurements, Recurring - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Assets: | ||
Money market funds | $ 76,274 | $ 113,080 |
Quoted Prices in Active Markets (Level 1) | ||
Assets: | ||
Money market funds | 76,274 | 113,080 |
Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Money market funds | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Money market funds | $ 0 | $ 0 |
Inventory - Components of Inven
Inventory - Components of Inventory (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | |
Inventory [Line Items] | |||
Raw materials | $ 2,616 | $ 2,487 | |
Work in process | 3,144 | 2,781 | |
Inventory | 9,472 | 9,502 | [1] |
Arena GmbH | |||
Inventory [Line Items] | |||
Finished goods | 1,269 | 165 | |
Eisai | |||
Inventory [Line Items] | |||
Finished goods | 2,228 | 3,309 | |
Ildong | |||
Inventory [Line Items] | |||
Finished goods | $ 215 | $ 760 | |
[1] | The balance sheet data at December 31, 2015, 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. |
Land, Property and Equipment (D
Land, Property and Equipment (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | |
Property Plant And Equipment [Abstract] | |||
Cost | $ 170,894 | $ 172,729 | |
Less accumulated depreciation and amortization | (102,704) | (100,901) | |
Land, property and equipment, net | $ 68,190 | $ 71,828 | [1] |
[1] | The balance sheet data at December 31, 2015, 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 Ac33
Accounts Payable and Other Accrued Liabilities (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | |
Payables And Accruals [Abstract] | |||
Accounts payable | $ 4,149 | $ 2,078 | |
Accrued compensation | 4,857 | 5,118 | |
Other accrued liabilities | 1,368 | 1,138 | |
Total accounts payable and other accrued liabilities | $ 10,374 | $ 8,334 | [1] |
[1] | The balance sheet data at December 31, 2015, 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. |
Share-based Activity - Share Ba
Share-based Activity - Share Based Compensation Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 4,271 | $ 4,114 | $ 7,080 | $ 7,947 |
Total share-based compensation expense capitalized into inventory | 48 | 43 | 85 | 105 |
Cost of product sales | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | 0 | 0 | 20 | 0 |
Research and development | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | 1,977 | 2,185 | 3,740 | 4,241 |
General and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | 1,262 | 1,929 | 2,288 | 3,706 |
Restructuring charges | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 1,032 | $ 0 | $ 1,032 | $ 0 |
Share-based Activity - Summary
Share-based Activity - Summary of Stock Option Activity (Detail) - Stock options shares in Thousands | 6 Months Ended |
Jun. 30, 2016$ / sharesshares | |
Number of stock options | |
Outstanding at January 1, 2016 | shares | 16,407 |
Granted | shares | 14,266 |
Exercised | shares | (38) |
Forfeited/cancelled/expired | shares | (1,475) |
Outstanding at June 30, 2016 | shares | 29,160 |
Weighted- Average Exercise Price | |
Outstanding at January 1, 2016 | $ / shares | $ 5.01 |
Granted | $ / shares | 1.60 |
Exercised | $ / shares | 1.62 |
Forfeited/cancelled/expired | $ / shares | 5.80 |
Outstanding at June 30, 2016 | $ / shares | $ 3.31 |
Share-based Activity - Summar36
Share-based Activity - Summary of Restricted Stock Unit Awards Activity (Detail) - Restricted Stock Units (RSU) shares in Thousands | 6 Months Ended |
Jun. 30, 2016$ / sharesshares | |
Number of Restricted Stock Units | |
Unvested at January 1, 2016 | 273 |
Granted | 0 |
Vested | (157) |
Forfeited/cancelled | (9) |
Unvested at June 30, 2016 | 107 |
Weighted- Average Grant-Date Fair Value | |
Unvested at January 1, 2016 | $ / shares | $ 4.67 |
Vested | $ / shares | 4.27 |
Forfeited/cancelled | $ / shares | 4.31 |
Unvested at June 30, 2016 | $ / shares | $ 5.29 |
Share-based Activity - Addition
Share-based Activity - Additional Information (Detail) - Performance restricted stock units | 1 Months Ended |
Mar. 31, 2013shares | |
Stockholders Equity [Line Items] | |
Performance period | 3 years |
Units granted (shares) | 780,000 |
Net Loss Per Share - Potentiall
Net Loss Per Share - Potentially Dilutive Securities Excluded From Calculation of Diluted Net Loss Per Share (Detail) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total antidilutive securities excluded from calculation of diluted net loss per share (shares) | 26,920 | 18,197 | 23,162 | 17,400 |
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 (shares) | 26,681 | 17,671 | 22,886 | 16,815 |
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 (shares) | 239 | 526 | 276 | 519 |
Warrant | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total antidilutive securities excluded from calculation of diluted net loss per share (shares) | 0 | 0 | 0 | 66 |
Restructuring Charges (Details)
Restructuring Charges (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
Nov. 30, 2015employee | Oct. 31, 2015employee | Jun. 30, 2016USD ($) | Dec. 31, 2015USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($)employee | Jun. 30, 2015USD ($) | |
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring charges | $ 6,115 | $ 4,000 | $ 0 | $ 6,115 | $ 0 | ||
Non-cash share-based compensation expense | 4,271 | 4,114 | 7,080 | 7,947 | |||
Restructuring charges | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Non-cash share-based compensation expense | $ 1,032 | $ 0 | $ 1,032 | $ 0 | |||
UNITED STATES | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Positions to be eliminated | 35.00% | 73.00% | |||||
Number of positions to be eliminated | employee | 80 | 100 | |||||
SWITZERLAND | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Positions to be eliminated | 17.00% | ||||||
Number of positions to be eliminated | employee | 14 |
Management Changes (Details)
Management Changes (Details) - USD ($) $ in Thousands | May 31, 2016 | Jun. 30, 2016 | Jun. 30, 2016 | Jun. 30, 2016 | Jun. 30, 2015 |
Management Changes [Line Items] | |||||
Share-based compensation | $ 7,080 | $ 7,947 | |||
Chief Medical Officer | |||||
Management Changes [Line Items] | |||||
Cash severance payment | $ 500 | ||||
Duration | 12 months | ||||
Expense | $ 1,000 | ||||
Share-based compensation | 400 | $ 400 | |||
Benefits | $ 600 | $ 600 | $ 600 | ||
2013 Long-Term Incentive Plan as Amended | Chief Executive Officer | |||||
Management Changes [Line Items] | |||||
Options granted (shares) | 3,800,000 | ||||
Additional shares authorized (shares) | 3,800,000 | ||||
Term | 7 years | ||||
Vesting period | 4 years | ||||
Vesting percentage | 25.00% | ||||
2013 Long-Term Incentive Plan as Amended | Chief Financial Officer | |||||
Management Changes [Line Items] | |||||
Options granted (shares) | 800,000 | ||||
Additional shares authorized (shares) | 3,800,000 | 800,000 | |||
Term | 7 years | ||||
Vesting period | 4 years | ||||
Vesting percentage | 25.00% | ||||
2013 Long-Term Incentive Plan as Amended | Cliff Vesting After One Year | Chief Executive Officer | |||||
Management Changes [Line Items] | |||||
Vesting period | 1 year | ||||
2013 Long-Term Incentive Plan as Amended | Cliff Vesting After One Year | Chief Financial Officer | |||||
Management Changes [Line Items] | |||||
Vesting period | 1 year | ||||
2013 Long-Term Incentive Plan as Amended | Quarterly Vesting Years Two Through Four | Chief Executive Officer | |||||
Management Changes [Line Items] | |||||
Vesting period | 3 years | ||||
2013 Long-Term Incentive Plan as Amended | Quarterly Vesting Years Two Through Four | Chief Financial Officer | |||||
Management Changes [Line Items] | |||||
Vesting period | 3 years |
Subsequent Events (Details)
Subsequent Events (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
Jul. 31, 2016USD ($)employee | Nov. 30, 2015employee | Jun. 30, 2016USD ($) | Dec. 31, 2015USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | |
Subsequent Event [Line Items] | |||||||
Restructuring charges | $ 6,115 | $ 4,000 | $ 0 | $ 6,115 | $ 0 | ||
SWITZERLAND | |||||||
Subsequent Event [Line Items] | |||||||
Positions to be eliminated | 17.00% | ||||||
Number of positions to be eliminated | employee | 14 | ||||||
Subsequent Event | SWITZERLAND | |||||||
Subsequent Event [Line Items] | |||||||
Positions to be eliminated | 26.00% | ||||||
Number of positions to be eliminated | employee | 17 | ||||||
Restructuring charges | $ 300 | ||||||
FDA New Drug Application Approval | Subsequent Event | Eisai | |||||||
Subsequent Event [Line Items] | |||||||
Milestone payment | 10,000 | ||||||
Federal Commission for the Protection Against Sanitary Risk Mexico Approval | Subsequent Event | Eisai | |||||||
Subsequent Event [Line Items] | |||||||
Milestone payment | $ 1,000 |