Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 24, 2016 | Jun. 30, 2015 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | ARENA PHARMACEUTICALS INC | ||
Entity Central Index Key | 1,080,709 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Trading Symbol | ARNA | ||
Entity Common Stock, Shares Outstanding | 242,871,179 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 1.1 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 156,184 | $ 163,209 |
Accounts receivable | 4,934 | 3,712 |
Total inventory | 9,502 | 10,831 |
Prepaid expenses and other current assets | 4,218 | 4,144 |
Total current assets | 174,838 | 181,896 |
Land, property and equipment, net | 71,828 | 82,919 |
Intangibles, net | 7,775 | 8,482 |
Other non-current assets | 2,351 | 3,088 |
Total assets | 256,792 | 276,385 |
Current liabilities: | ||
Accounts payable and other accrued liabilities | 10,127 | 10,209 |
Accrued clinical and preclinical study fees | 3,286 | 7,027 |
Payable to Eisai | 12,080 | 23,705 |
Current portion of deferred revenues | 21,425 | 15,238 |
Current portion of lease financing obligations | 2,978 | 2,492 |
Payable to Siegfried for acquisition of land and building | 0 | 8,217 |
Derivative liabilities | 0 | 474 |
Total current liabilities | 49,896 | 67,362 |
Deferred rent | 470 | 369 |
Deferred revenues, less current portion | 87,617 | 93,064 |
Lease financing obligations, less current portion | $ 65,267 | $ 68,245 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred stock, $0.0001 par value: 7,500,000 shares authorized and 0 shares issued and outstanding at December 31, 2015, and 2014 | $ 0 | $ 0 |
Common stock, $0.0001 par value: 367,500,000 shares authorized at December 31, 2015, and 2014; 242,871,179 shares issued and outstanding at December 31, 2015; 220,321,645 shares issued and outstanding at December 31, 2014 | 24 | 22 |
Additional paid-in capital | 1,430,917 | 1,312,656 |
Accumulated other comprehensive income (loss) | (1,179) | 2,908 |
Accumulated deficit | (1,376,220) | (1,268,241) |
Total stockholders’ equity | 53,542 | 47,345 |
Total liabilities and stockholders’ equity | $ 256,792 | $ 276,385 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 7,500,000 | 7,500,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 367,500,000 | 367,500,000 |
Common stock, shares issued | 242,871,179 | 220,321,645 |
Common stock, shares outstanding | 242,871,179 | 220,321,645 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues: | |||
Net product sales | $ 19,726 | $ 15,983 | $ 5,702 |
Toll manufacturing | 4,250 | 1,497 | 2,690 |
Total revenues | 38,326 | 36,970 | 81,394 |
Operating Costs and Expenses: | |||
Cost of product sales | 8,590 | 6,369 | 1,803 |
Cost of toll manufacturing | 4,585 | 1,390 | 4,377 |
Research and development | 88,411 | 100,347 | 66,468 |
General and administrative | 35,966 | 34,137 | 31,681 |
Restructuring charges | 3,972 | 0 | 0 |
Total operating costs and expenses | 141,524 | 142,243 | 104,329 |
Loss from operations | (103,198) | (105,273) | (22,935) |
Interest and Other Income (Expense): | |||
Interest income | 158 | 83 | 89 |
Interest expense | (6,828) | (6,915) | (7,091) |
Gain from valuation of derivative liabilities | 474 | 4,418 | 10,150 |
Gain on sale of available-for-sale securities | 0 | 49,553 | 0 |
Other | 1,415 | (2,374) | 352 |
Total interest and other income (expense), net | (4,781) | 44,765 | 3,500 |
Net loss | $ (107,979) | $ (60,508) | $ (19,435) |
Net loss per share allocable to common stockholders: | |||
Basic ($ per share) | $ (0.45) | $ (0.28) | $ (0.09) |
Diluted ($ per share) | $ (0.45) | $ (0.28) | $ (0.09) |
Number of shares used in calculating net loss per share allocable to common stockholders: | |||
Basic (shares) | 240,671,335 | 219,733,539 | 218,104,323 |
Diluted (shares) | 240,671,335 | 219,733,539 | 218,104,323 |
Comprehensive Loss: | |||
Net loss | $ (107,979) | $ (60,508) | $ (19,435) |
Foreign currency translation gain (loss) | (4,087) | (2,820) | 239 |
Comprehensive loss | (112,066) | (63,328) | (19,196) |
Eisai | |||
Revenues: | |||
Net product sales | 14,236 | 15,983 | 5,702 |
Subtotal other Eisai collaborative revenue | 9,505 | 18,611 | 72,416 |
Total revenues | 23,741 | 34,594 | 78,118 |
Other | |||
Revenues: | |||
Subtotal other Eisai collaborative revenue | $ 4,845 | $ 879 | $ 586 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit |
Beginning Balance at Dec. 31, 2012 | $ 98,639 | $ 22 | $ 1,281,426 | $ 5,489 | $ (1,188,298) |
Beginning Balance (in shares) at Dec. 31, 2012 | 217,476,458 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock (shares) | 10,000 | ||||
Issuance of common stock | 88 | 88 | |||
Issuance of common stock upon exercise of options (in shares) | 954,174 | ||||
Issuance of common stock upon exercise of options | $ 2,375 | 2,375 | |||
Issuance of common stock under employee stock purchase plan (in shares) | 334,360 | 334,360 | |||
Issuance of common stock under employee stock purchase plan | $ 852 | 852 | |||
Issuance of common stock upon vesting of restricted stock unit awards (in shares) | 41,250 | ||||
Share-based compensation expense | Expensed | 9,024 | 9,024 | |||
Share-based compensation expense | Capitalized Cost | 75 | 75 | |||
Translation gain (loss) | 239 | 239 | |||
Net loss | (19,435) | (19,435) | |||
Ending Balance (in shares) at Dec. 31, 2013 | 218,816,242 | ||||
Ending Balance at Dec. 31, 2013 | 91,857 | $ 22 | 1,293,840 | 5,728 | (1,207,733) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock upon exercise of options (in shares) | 1,115,068 | ||||
Issuance of common stock upon exercise of options | $ 4,078 | 4,078 | |||
Issuance of common stock under employee stock purchase plan (in shares) | 304,085 | 304,085 | |||
Issuance of common stock under employee stock purchase plan | $ 1,148 | 1,148 | |||
Issuance of common stock upon vesting of restricted stock unit awards (in shares) | 86,250 | ||||
Share-based compensation expense | Expensed | 13,509 | 13,509 | |||
Share-based compensation expense | Capitalized Cost | 81 | 81 | |||
Translation gain (loss) | (2,820) | (2,820) | |||
Net loss | (60,508) | (60,508) | |||
Ending Balance (in shares) at Dec. 31, 2014 | 220,321,645 | ||||
Ending Balance at Dec. 31, 2014 | 47,345 | $ 22 | 1,312,656 | 2,908 | (1,268,241) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock (shares) | 21,000,000 | ||||
Issuance of common stock | 100,658 | $ 2 | 100,656 | ||
Issuance of common stock upon exercise of options (in shares) | 1,154,084 | ||||
Issuance of common stock upon exercise of options | $ 2,211 | 2,211 | |||
Issuance of common stock under employee stock purchase plan (in shares) | 327,950 | 327,950 | |||
Issuance of common stock under employee stock purchase plan | $ 758 | 758 | |||
Issuance of common stock upon vesting of restricted stock unit awards (in shares) | 67,500 | ||||
Share-based compensation expense | Expensed | 14,463 | 14,463 | |||
Share-based compensation expense | Capitalized Cost | 173 | 173 | |||
Translation gain (loss) | (4,087) | (4,087) | |||
Net loss | (107,979) | (107,979) | |||
Ending Balance (in shares) at Dec. 31, 2015 | 242,871,179 | ||||
Ending Balance at Dec. 31, 2015 | $ 53,542 | $ 24 | $ 1,430,917 | $ (1,179) | $ (1,376,220) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating Activities | |||
Net loss | $ (107,979) | $ (60,508) | $ (19,435) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 9,804 | 8,655 | 7,733 |
Amortization of intangibles | 238 | 506 | 469 |
Share-based compensation | 14,463 | 13,509 | 9,024 |
Gain from valuation of derivative liabilities | (474) | (4,418) | (10,150) |
Gain on sale of available-for-sale securities | 0 | (49,553) | 0 |
Amortization of prepaid financing costs | 136 | 136 | 136 |
Loss on disposal or sale of equipment | 1,007 | 172 | 49 |
Changes in assets and liabilities: | |||
Accounts receivable | (1,425) | 6,407 | (4,473) |
Inventory | 1,858 | 870 | (6,065) |
Prepaid expenses and other assets | 575 | (772) | (65) |
Payables and accrued liabilities | (16,970) | 13,240 | 19,572 |
Deferred revenues | 553 | (29,764) | 75,880 |
Deferred rent | 101 | 122 | 125 |
Net cash provided by (used in) operating activities | (98,113) | (101,398) | 72,800 |
Investing Activities | |||
Proceeds from sale of available-for-sale securities | 0 | 49,553 | 0 |
Purchases of land, property and equipment | (10,992) | (8,905) | (9,164) |
Proceeds from sale of equipment | 2,232 | 47 | 60 |
Other non-current assets | 609 | 209 | 439 |
Net cash provided by (used in) investing activities | (8,151) | 40,904 | (8,665) |
Financing Activities | |||
Principal payments on lease financing obligations | (2,492) | (2,057) | (1,664) |
Proceeds from issuance of common stock | 103,628 | 5,225 | 3,315 |
Net cash provided by financing activities | 101,136 | 3,168 | 1,651 |
Effect of exchange rate changes on cash | (1,897) | (1,343) | 1 |
Net increase (decrease) in cash and cash equivalents | (7,025) | (58,669) | 65,787 |
Cash and cash equivalents at beginning of year | 163,209 | 221,878 | 156,091 |
Cash and cash equivalents at end of year | 156,184 | 163,209 | 221,878 |
Supplemental Disclosure Of Cash Flow Information: | |||
Interest paid | 6,562 | 6,778 | 6,954 |
Siegfried | |||
Supplemental Disclosure Of Non-Cash Investing and Financing Information: | |||
Payable to Siegfried for acquisition of land and building | $ 0 | $ 8,217 | $ 0 |
The Company and Summary of Sign
The Company and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
The Company and Summary of Significant Accounting Policies | The Company and Summary of Significant Accounting Policies The Company Arena Pharmaceuticals, Inc., or Arena, was incorporated on April 14, 1997, and commenced operations in July 1997. We are a biopharmaceutical company focused on discovering, developing and commercializing novel drugs that target G protein-coupled receptors, or GPCRs, to address unmet medical needs. We operate in one business segment. Our US operations are located in San Diego, California, and our operations outside of the United States, including our commercial manufacturing facility, are located in Zofingen, Switzerland. Our internally discovered drug, lorcaserin, has been approved for marketing in the United States and South Korea for weight management, and is being marketed under the brand name BELVIQ® (which is pronounced as “BEL-VEEK”). In June 2013 and February 2015, BELVIQ was made available to patients by prescription by our collaborators in the United States and South Korea, respectively. BELVIQ is our first and only drug approved for marketing by any regulatory agency. Our wholly owned subsidiary, Arena Pharmaceuticals GmbH, or Arena GmbH, granted Eisai Inc. and Eisai Inc.’s parent company, Eisai Co., Ltd. (collectively with Eisai Inc., Eisai) exclusive commercialization rights to market lorcaserin in all of the countries in the world, except for South Korea, Taiwan, Australia, New Zealand and Israel. Arena GmbH also granted exclusive commercialization rights to market lorcaserin for weight loss or weight management to Ildong Pharmaceutical Co., Ltd., or Ildong, for South Korea; to CY Biotech Company Limited, or CYB, for Taiwan; and to Teva Pharmaceuticals Ltd.’s Israeli subsidiary, Abic Marketing Limited, or Teva, for Israel. We intend to continue our research and development efforts to advance our earlier-stage drug candidates and to discover and advance additional compounds. Lorcaserin and our earlier-stage drug candidates and compounds have resulted from our GPCR-focused drug discovery and development approach, specialized expertise and technologies. Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with US generally accepted accounting principles, or GAAP, and reflect all of our activities, including those of our wholly owned subsidiaries. All material intercompany accounts and transactions have been eliminated in consolidation. 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 annual 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.” Under GAAP, continuation of a reporting entity as a going concern is presumed as the basis for preparing financial statements unless and until the entity’s liquidation becomes imminent. Preparation of financial statements under this presumption is commonly referred to as the going concern basis of accounting. If and when an entity’s liquidation becomes imminent, financial statements should be prepared under the liquidation basis of accounting. Even when an entity’s liquidation is not imminent, there may be conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern. In those situations, financial statements should continue to be prepared under the going concern basis of accounting, but ASU No. 2014-15 should be followed to determine whether to disclose information about any relevant conditions and events. ASU No. 2014-15 is effective for the annual reporting period ending after December 15, 2016, and for annual and interim periods thereafter. We do not expect the adoption of ASU No. 2014-15 to have a material impact on our consolidated financial statements. In November 2015, FASB issued ASU No. 2015-17, “Balance Sheet Classification of Deferred Taxes.” ASU No. 2015-17 requires entities that present a classified balance sheet to classify all deferred taxes as noncurrent assets or noncurrent liabilities. ASU No. 2015-17 is effective for annual reporting periods, and interim periods within those annual periods, beginning after December 15, 2016 and early adoption is permitted. We elected to early adopt this standard in 2015. The adoption of ASU No. 2015-17 did not 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 beginning after December 15, 2017, including interim periods within the year of adoption, 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. Use of Estimates The preparation of financial statements in conformity 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. Cash and Cash Equivalents Cash and cash equivalents consist of cash and highly liquid investments with remaining maturities of three months or less when purchased. Inventory Inventory is stated at the lower of cost or market. We determine cost, which includes amounts related to materials, labor and overhead, using a first-in, first-out basis. We evaluate our inventory each period to identify potential obsolete, excess or otherwise non-saleable items. If non-saleable items are observed and there are no alternate uses for the inventory, we will record a write-down to net realizable value in the period that the decline in value is first recognized. Concentrations of Risk and Geographical Data 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 or 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 and Ildong are the exclusive distributors of BELVIQ in the United States and South Korea, respectively, which are the only jurisdictions for which BELVIQ has received regulatory approval for marketing. We also produce drug products for Siegfried AG, or Siegfried, and, to a lesser extent, another third party under toll manufacturing agreements. Percentages of our total revenues are as follows: Years ended December 31, 2015 2014 2013 Eisai Agreement (See Note 12) 61.9 % 93.6 % 96.0 % Ildong Agreement (See Note 12) 23.2 % 1.0 % 0.6 % Toll manufacturing agreements 11.1 % 4.0 % 3.3 % Other collaborative agreements 3.8 % 1.4 % 0.1 % Total percentage of revenues 100.0 % 100.0 % 100.0 % Percentages of our total accounts receivable are as follows: December 31, 2015 2014 2013 Eisai Agreement (See Note 12) 77.5 % 93.1 % 94.5 % Ildong Agreement (See Note 12) 1.3 % 0.4 % 1.0 % Toll manufacturing agreements 9.6 % 0.0 % 4.3 % Other collaborative agreements 11.6 % 6.5 % 0.2 % Total percentage of accounts receivable 100.0 % 100.0 % 100.0 % We purchase raw materials, starting materials, intermediates, API, excipients and other materials from commercial sources. To decrease the risk of an interruption to our supply, when we believe it is reasonable for us to do so, we source these materials from multiple suppliers so that, in general, the loss of any one source of supply would not have a material adverse effect on commercial production, project timelines or inventory of supplies for our studies or clinical trials. However, currently we have only one or a limited number of suppliers for some of these materials for BELVIQ and for other of our programs. The loss of a primary source of supply would potentially delay our production of BELVIQ or our development projects and potentially those of current or future collaborators. We intend to maintain a safety stock of certain of these materials to help avoid delays in production, but we do not know whether such stock will be sufficient. Our facility in Zofingen, Switzerland is the only manufacturer of finished drug product for BELVIQ. We believe that it could take longer than one year to secure a second source of supply for finished drug product of BELVIQ. Long-lived assets located in the United States and Switzerland were $41.5 million and $38.1 million , respectively, at December 31, 2015 . Long-lived assets located in the United States and Switzerland were $49.0 million and $42.4 million , respectively, at December 31, 2014 . Property and Equipment Property and equipment are stated at cost and depreciated over the estimated useful lives of the assets (generally 3 to 15 years ) using the straight-line method. Buildings are stated at cost and depreciated over an estimated useful life of approximately 20 years using the straight-line method. Leasehold improvements are stated at cost and amortized over the shorter of the estimated useful lives of the assets or the lease term using the straight-line method. Capital improvements are stated at cost and amortized over the estimated useful lives of the underlying assets using the straight-line method. Intangibles Intangible assets consist of our manufacturing facility production licenses we acquired from Siegfried in January 2008 and are amortized using the straight-line method over their estimated useful life of 20 years . Long-lived Assets If indicators of impairment exist, we assess the recoverability of the affected long-lived assets by determining whether the carrying value of such assets can be recovered through undiscounted cash flows. If impairment is indicated, we measure the impairment loss by comparing the fair value of the asset, estimated using discounted cash flows expected to be generated from the asset, to the carrying value. Deferred Rent For financial reporting purposes, rent expense is recognized on a straight-line basis over the term of the lease. The difference between rent expense and amounts paid under lease agreements is recorded as deferred rent in the liability section of our consolidated balance sheets. Derivative Liabilities We account for warrants and other derivative financial instruments as either equity or liabilities based upon the characteristics and provisions of each instrument. Warrants classified as equity are recorded as additional paid-in capital on our consolidated balance sheets and no further adjustments to their valuation are made. Warrants classified as derivative liabilities and other derivative financial instruments that require separate accounting as liabilities are recorded on our consolidated balance sheets at their fair value on the date of issuance and are revalued on each balance sheet date until such instruments are exercised or expire, with changes in the fair value between reporting periods recorded as other income or expense. We estimate the fair value of warrants classified as derivative liabilities using the Black-Scholes option pricing model. Foreign Currency The functional currency of our wholly owned subsidiary in Switzerland, Arena GmbH, is the Swiss franc. Accordingly, all assets and liabilities of this subsidiary are translated to US dollars based on the applicable exchange rate on the balance sheet date. Revenue and expense components are translated to US dollars at weighted-average exchange rates in effect during the period. Gains and losses resulting from foreign currency translation are reported as a separate component of accumulated other comprehensive income or loss in the stockholders’ equity section of our consolidated balance sheets. Foreign currency transaction gains and losses, which are primarily the result of remeasuring US dollar-denominated receivables and payables at Arena GmbH, are recorded in the interest and other income (expense) section of our consolidated statement of operations and comprehensive loss. For the year ended December 31, 2015 , we recognized foreign currency transaction gains, net of $2.0 million . For the year ended December 31, 2014 , we recognized foreign currency transaction losses, net of $2.2 million . For the year ended December 31, 2013 , we recognized foreign currency transaction gains, net of $0.3 million . Share-based Compensation Our share-based awards are measured at fair value and recognized over the requisite service or performance period. The fair value of each stock option is estimated on the date of grant using the Black-Scholes option pricing model, based on the market price of the underlying common stock, expected life, expected stock price volatility and expected risk-free interest rate. Expected volatility is computed using a combination of historical volatility for a period equal to the expected term and implied volatilities from traded options to buy our common stock, with historical volatility being weighted at 75% . The expected life of options is determined based on historical experience of similar awards, giving consideration to the contractual terms of the share-based awards, vesting schedules and post-vesting terminations. The risk-free interest rates are based on the US Treasury yield curve, with a remaining term approximately equal to the expected term used in the option pricing model. The fair value of each restricted stock unit award is estimated based on the market price of the underlying common stock on the date of the grant. The fair value of restricted stock unit awards that include market-based performance conditions is estimated on the date of grant using a Monte Carlo simulation model, based on the market price of the underlying common stock, expected performance measurement period, expected stock price volatility and expected risk-free interest rate. We estimate forfeitures at the time of grant and revise our estimate in subsequent periods if actual forfeitures differ from those estimates. Revenue Recognition Our revenues to date have been generated primarily through collaborative agreements and, to a lesser extent, toll manufacturing agreements. Our collaborative agreements may contain multiple elements including commercialization rights, services (joint steering committee and research and development services) and manufactured products. Consideration we receive under these arrangements may include upfront payments, research and development funding, cost reimbursements, milestone payments and payments for net product sales. We recognize revenue when (i) persuasive evidence of an arrangement exists, (ii) delivery has occurred and title has passed, (iii) the price is fixed or determinable and (iv) collectability is reasonably assured. Any advance payments we receive in excess of amounts earned are classified as deferred revenues. We defer recognition of revenue at the time we sell BELVIQ to our collaborators because we presently do not have the ability to estimate product that may be returned to us. Instead, we recognize revenues from net product sales when our collaborators ship BELVIQ to their distributors. See Note 12. We evaluate deliverables in a multiple-element arrangement to determine whether each deliverable represents a separate unit of accounting. A deliverable constitutes a separate unit of accounting when it has standalone value to the customer. If the delivered element does not have standalone value without one of the undelivered elements in the arrangement, we combine such elements and account for them as a single unit of accounting. We allocate the consideration to each unit of accounting at the inception of the arrangement based on the relative selling price. Non-refundable upfront payments received under our collaborative agreements for commercialization rights have been deferred as such rights have not been deemed to have standalone value without the ongoing services required under the agreement. Such amounts are recognized as revenue on a straight-line basis over the period in which we expect to perform the services. Amounts we receive as reimbursement for our research and development expenditures are recognized as revenue as the services are performed. Under the milestone method, we recognize revenue that is contingent upon the achievement of a substantive milestone in its entirety in the period in which the milestone is achieved. A milestone is an event (i) that can be achieved in whole or in part on either our performance or on the occurrence of a specific outcome resulting from our performance, (ii) for which there is substantive uncertainty at the date the arrangement is entered into that the event will be achieved and (iii) that would result in additional payments being due us. A milestone payment is considered substantive when the consideration payable to us for each milestone (a) is consistent with our performance necessary to achieve the milestone or the increase in value to the collaboration resulting from our performance, (b) relates solely to our past performance and (c) is reasonable relative to all of the other deliverables and payments under the arrangement. In making this assessment, we consider all facts and circumstances relevant to the arrangement, including factors such as the scientific, regulatory, commercial and other risks that must be overcome to achieve the respective milestone, the level of effort and investment required to achieve the respective milestone and whether any portion of the milestone consideration is related to future performance or deliverables. Other contingent-based payments received are recognized when earned. We also manufacture drug products under toll manufacturing agreements. Upon the customer’s acceptance of drug products manufactured by us under these agreements, we recognize toll manufacturing revenues. Research and Development Expenses Research and development expenses, which consist primarily of salaries and other personnel costs, clinical trial costs and preclinical study fees, manufacturing costs for non-commercial products, and the development of earlier-stage programs and technologies, are expensed as incurred when these expenditures have no alternative future uses. We accrue clinical trial expenses based on work performed. In determining the amount to accrue, we rely on estimates of total costs incurred based on enrollment, the completion of trials and other events. We follow this method because we believe reasonably dependable estimates of the costs applicable to various stages of a clinical trial can be made. However, the actual costs and timing of clinical trials are highly uncertain, subject to risks and may change depending on a number of factors. Differences between the actual clinical trial costs and the estimated clinical trial costs that we have accrued in any prior period are recognized in the subsequent period in which the actual costs become known. Historically, these differences have not been material; however, material differences could occur in the future. Payments made to reimburse collaborators for our share of their research and development activities are recorded as research and development expenses, and are recognized as the work is performed. Comprehensive Loss Comprehensive loss is defined as the change in equity during a period from transactions and other events and circumstances from non-owner sources. We report components of comprehensive loss in the period in which they are recognized. For the years ended December 31, 2015 , 2014 , and 2013 , comprehensive loss consisted of net loss and foreign currency translation gains and losses. 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 have excluded from our calculation of diluted net loss per share all potentially dilutive in-the-money (i) stock options, (ii) restricted stock unit awards, or RSUs, (iii) Total Stockholder Return, or TSR, performance restricted stock unit, or PRSU, awards, (iv) unvested restricted stock in our deferred compensation plan and (v) our previously outstanding warrants, and our diluted net loss per share is the same as our basic net loss per share. The table below presents the weighted-average number of potentially dilutive securities that were excluded from our calculation of diluted net loss per share for the years presented, in thousands. Years ended December 31, 2015 2014 2013 Stock options 17,030 15,530 14,435 Warrants 19 370 776 RSUs and unvested restricted stock 547 476 306 Total 17,596 16,376 15,517 Because the market condition for the PRSUs was not satisfied at December 31, 2015 , 2014 , and 2013 , such securities are excluded from the table above. Income Taxes We use the asset and liability method of accounting for income taxes. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Our deferred tax assets and liabilities are determined using the enacted tax rates expected to be in effect for the years in which those tax assets are expected to be realized. The realization of our deferred tax assets is dependent upon our ability to generate sufficient future taxable income. We establish a valuation allowance when it is more-likely-than-not the future realization of all or some of the deferred tax assets will not be achieved. The evaluation of the need for a valuation allowance is performed on a jurisdiction-by-jurisdiction basis, and includes a review of all available evidence, both positive and negative. The impact of an uncertain income tax position is recognized at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant taxing authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. |
Fair Value Disclosures
Fair Value Disclosures | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures | 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 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 Fair Value Measurements at December 31, 2014 Balance Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Money market funds 1 $ 143,913 $ 143,913 $ 0 $ 0 Liabilities: Warrant derivative liabilities 2 $ 474 $ 0 $ 474 $ 0 (1) Included in cash and cash equivalents on our consolidated balance sheets. (2) The warrant expired pursuant to its terms in August 2015. See Note 9. |
Short-term Investments, Availab
Short-term Investments, Available-for-Sale | 12 Months Ended |
Dec. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Short-term Investments, Available-for-Sale | Short-term Investments, Available-for-Sale We 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 prior 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 former 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 former investment in TaiGen of 29.6 million shares based on its fair value of approximately $49.1 million . We began recording our former investment in TaiGen at fair value based on the trading price of TaiGen’s common stock, and the remaining former investment was revalued on each balance sheet date. Gains and losses on the sale of available-for-sale securities are determined using the specific-identification method. During the year ended December 31, 2014, we sold all of our shares of TaiGen and recorded a realized gain of $49.6 million . |
Inventory
Inventory | 12 Months Ended |
Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Inventory | Inventory Inventory consisted of the following, in thousands: December 31, 2015 2014 Raw materials $ 2,487 $ 1,167 Work in process 2,781 3,520 Finished goods at Arena GmbH 165 3,681 Finished goods at Eisai 3,309 2,463 Finished goods at Ildong 760 0 Total inventory $ 9,502 $ 10,831 |
Land, Property and Equipment
Land, Property and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Land, Property and Equipment | Land, Property and Equipment Land, property and equipment consisted of the following, in thousands: December 31, 2015 2014 Land $ 8,131 $ 11,339 Building and capital improvements 74,663 74,629 Leasehold improvements 18,025 17,984 Machinery and equipment 53,790 53,247 Computers and software 15,893 15,363 Furniture and office equipment 2,227 2,376 172,729 174,938 Less accumulated depreciation and amortization (100,901 ) (92,019 ) Land, property and equipment, net $ 71,828 $ 82,919 |
Intangibles
Intangibles | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangibles | Intangibles Intangibles consisted of the following, in thousands: December 31, 2015 2014 Acquired manufacturing production licenses – gross $ 12,958 $ 13,049 Acquired manufacturing production licenses – accumulated amortization (5,183 ) (4,567 ) Intangibles, net $ 7,775 $ 8,482 We capitalize into inventory amortization expense related to the manufacturing of BELVIQ. Such amortization will subsequently be recognized as cost of product sales when the related inventory is sold. Using the exchange rate in effect on December 31, 2015 , we expect to record amortization of $0.6 million per year through 2027 for our manufacturing facility production licenses. |
Accounts Payable and Other Accr
Accounts Payable and Other Accrued Liabilities | 12 Months Ended |
Dec. 31, 2015 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Other Accrued Liabilities | Accounts Payable and Other Accrued Liabilities Accounts payable and other accrued liabilities consisted of the following, in thousands: December 31, 2015 2014 Accounts payable $ 2,078 $ 2,844 Accrued compensation 5,118 4,792 Accrued workforce reduction expenses 1,793 0 Other accrued liabilities 1,138 2,573 Total accounts payable and other accrued liabilities $ 10,127 $ 10,209 |
Agreements with Siegfried
Agreements with Siegfried | 12 Months Ended |
Dec. 31, 2015 | |
Contractors [Abstract] | |
Agreements with Siegfried | Agreements with Siegfried In January 2008, we acquired from Siegfried certain drug product facility assets, including manufacturing facility production licenses, fixtures, equipment, other personal property and real estate assets in Zofingen, Switzerland, under an asset purchase agreement. These assets are being used to manufacture and package lorcaserin as well as certain drug products for Siegfried. From time to time, we may also use this facility to manufacture and package tablets and capsules for other of our programs or for other entities. In connection with this transaction, we also entered into a long-term supply agreement for the active pharmaceutical ingredient of lorcaserin, a toll manufacturing agreement and a technical services agreement with Siegfried. For the years ended December 31, 2015 , 2014 and 2013 , we recognized expenses of $1.3 million , $2.5 million and $2.8 million , respectively, for services incurred under the technical services agreement. The technical services agreement provides us with administrative and other services to operate the facility. The real estate assets we acquired in January 2008 pursuant to the asset purchase agreement consisted of approximately 67,000 square feet of space in a building that consists of approximately 134,000 square feet of space along with an option to purchase the remaining Siegfried-occupied portion of the building along with the underlying land at a price of CHF 15.0 million , plus an inflation adjustment. Siegfried also had the option to sell us such remaining portion of the building with the underlying land at a price of CHF 8.0 million , plus an inflation adjustment. In July 2014, Siegfried provided us notice of its exercise of the option to sell us the remaining Siegfried-occupied portion of the building with the underlying land. In December 2014, we took title of the remaining portion of the building with the underlying land, and in July 2015 we paid the purchase price of CHF 8.2 million to Siegfried. In connection with the exercise of the option, we entered into an agreement to lease this newly acquired building space back to Siegfried through December 31, 2016 , for an annual base rent amount of CHF 0.4 million . Siegfried has the right to partially or fully terminate this lease with six months’ notice. Siegfried has an annual option to extend the lease for an additional year with the last extension term ending on December 31, 2019 . At any time during the extension terms, we have the right to partially or fully terminate this lease with six months’ notice, but with a termination date no earlier than December 31, 2017 . |
Derivative Liabilities
Derivative Liabilities | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Liabilities | Derivative Liabilities In June 2006 and August 2008, we issued seven -year warrants, which we refer to as the Series B Warrants, to purchase 829,856 and 1,106,344 shares of our common stock, respectively, at an exercise price of $15.49 and $7.71 per share, respectively. As a result of the warrants’ anti-dilution provision and certain of our subsequent equity issuances, the number of shares issuable upon exercise of the warrants increased and the exercise price decreased. In June 2013, a portion of the June 2006 Series B Warrant was exercised to purchase 10,000 shares of our common stock, resulting in net proceeds to us of $0.1 million , and the remaining portion of the June 2006 Series B Warrant to purchase shares of common stock expired pursuant to its terms in June 2013. Therefore, we recorded a gain in our consolidated statement of operations and comprehensive loss for the year ended December 31, 2013 . In August 2015, the August 2008 Series B Warrant, which was recorded as a current derivative liability of $0.5 million on our consolidated balance sheet at December 31, 2014 , expired pursuant to its terms. Therefore, we recorded a gain in our consolidated statement of operations and comprehensive loss for the year ended December 31, 2015 . The warrants were 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 consolidated statements of operations and comprehensive loss. |
Commitments
Commitments | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments | Commitments We occupy four US properties under sale and leaseback agreements that allow us the option to repurchase these properties at various dates between 2017 and 2027 and, in some cases, include renewal options. The terms of these leases stipulate annual increases in monthly rental payments of 2.5% . We accounted for our sale and leaseback transactions using the required financing method because our options to repurchase these properties in the future are considered continued involvement. Under the financing method, the book value of the properties and related accumulated depreciation remain on our balance sheet and no sale is recognized. Instead, the sales price of the properties is recorded as a financing obligation, and a portion of each lease payment is recorded as interest expense. We recorded interest expense of $6.7 million , $6.9 million and $7.1 million for the years ended December 31, 2015 , 2014 , and 2013 , respectively, related to these leases. We expect interest expense related to our facilities to total $43.9 million from December 31, 2015 , through the remaining terms of the leases. At December 31, 2015 , the total financing obligation for these facilities was $68.2 million . The aggregate residual value of the facilities at the end of the lease terms is $10.0 million . We lease an additional US property under an operating lease, which expires in May 2027, and contains a purchase option and stipulates annual increases in monthly rental payments of 2.5% . We also lease space in various facilities in Zofingen, Switzerland that can be terminated with 12 months written notice under an agreement that expires in 2032 . We also lease a separate office space in Zofingen under an operating lease which expires in August 2020. In accordance with the lease terms for certain of our US properties, we are required to maintain deposits for the benefit of the landlord throughout the term of the leases. A total of $0.8 million and $1.4 million was recorded in other non-current assets on our consolidated balance sheets at December 31, 2015 , and 2014 , respectively, related to such leases. We recognize rent expense on a straight-line basis over the term of each lease. Rent expense of $1.1 million , $1.1 million and $1.1 million was recognized for the years ended December 31, 2015 , 2014 , and 2013 , respectively. Annual future obligations at December 31, 2015 , are as follows, in thousands: Year ending December 31, Financing Obligations Operating Leases 2016 $ 8,499 $ 1,053 2017 9,494 1,146 2018 9,731 1,168 2019 8,053 1,191 2020 8,254 1,126 Thereafter 58,074 6,699 Total minimum lease payments 102,105 $ 12,383 Less amounts representing interest (43,850 ) Add amounts representing residual value 9,990 Lease financing obligations 68,245 Less current portion (2,978 ) $ 65,267 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Equity Compensation Plans. On June 10, 2013, our stockholders approved our 2013 Long-Term Incentive Plan, or 2013 LTIP. Upon such approval, our 2012 Long-Term Incentive Plan, or 2012 LTIP, was terminated. However, notwithstanding such termination or the previous termination of our 2009 Long-Term Incentive Plan, 2006 Long-Term Incentive Plan, as amended, 2002 Equity Compensation Plan, Amended and Restated 2000 Equity Compensation Plan, and Amended and Restated 1998 Equity Compensation Plan (together with the 2012 LTIP, the “Prior Plans”), all outstanding awards under the Prior Plans will continue to be governed under the terms of the Prior Plans. The number of shares of common stock authorized for issuance under the 2013 LTIP may be increased by the number of shares subject to any stock awards under the Prior Plans that are forfeited, expire or otherwise terminate without the issuance of such shares and would otherwise be returned to the share reserve under the Prior Plans but for their termination and as otherwise provided in the 2013 LTIP. The 2013 LTIP provides for the grant of a total of 30 million shares of our common stock (subject to adjustment for certain corporate events), as (i) decreased for grants made under the Prior Plans between December 31, 2012, and the approval of the 2013 LTIP and (ii) increased by the number of shares subject to any stock awards under the Prior Plans that, between December 31, 2012, and the approval of the 2013 LTIP, are forfeited, expire or settled for cash and as otherwise provided in the 2013 LTIP. Shares under the 2013 LTIP may be granted as incentive stock options, nonstatutory stock options, stock appreciation rights, restricted stock awards, restricted stock unit awards and performance awards. Subject to certain limited exceptions, stock options and stock appreciation rights granted under the 2013 LTIP reduce the available number of shares by one share for every share issued while awards other than stock options and stock appreciation rights granted under the 2013 LTIP reduce the available number of shares by 1.25 shares for every share issued. In addition, shares that are released from awards granted under the Prior Plans or the 2013 LTIP because the awards expire, are forfeited or are settled for cash will increase the number of shares available under the 2013 LTIP by one share for each share released from a stock option or stock appreciation right and by 1.25 shares for each share released from awards other than stock options and stock appreciation rights. Stock options granted under the 2013 LTIP generally vest 25% a year for 4 years and are exercisable for up to 7 years from the date of grant. The recipient of a restricted stock award has all rights of a stockholder at the date of grant, subject to certain restrictions on transferability and a risk of forfeiture. Restricted stock unit awards generally vest over one or 4 years from the date of grant. The minimum performance period under a performance award is 12 months . Neither the exercise price of an option nor the grant price of a stock appreciation right may be less than 100% of the fair market value of the common stock on the date such equity award is granted, except in specified situations. The 2013 LTIP prohibits option and stock appreciation right repricings (other than to reflect stock splits, spin-offs or certain other corporate events) without stockholder approval. In 2003, we set up a deferred compensation plan for our executive officers, whereby executive officers elected to contribute their shares of restricted stock into the plan. There were 79,169 shares of restricted stock in the plan at December 31, 2015 , 2014 , and 2013 . The following table summarizes our stock option activity under the Prior Plans and the 2013 LTIP, or collectively, our Equity Compensation Plans, for the year ended December 31, 2015 , in thousands (except per share data): Options Weighted- Average Exercise Price Weighted-Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding at December 31, 2014 15,831 $ 5.25 Granted 4,322 $ 3.69 Exercised (1,154 ) $ 1.92 Forfeited/cancelled/expired (2,592 ) $ 5.64 Outstanding at December 31, 2015 16,407 $ 5.01 4.44 $ 1,090 Vested and expected to vest at December 31, 2015 15,835 $ 5.04 4.37 $ 1,071 Vested and exercisable at December 31, 2015 10,206 $ 5.37 3.53 $ 906 The aggregate intrinsic value in the above table is calculated as the difference between the closing price of our common stock at December 31, 2015 , of $1.90 per share and the exercise price of stock options that had strike prices below the closing price. The intrinsic value of all stock options exercised during the years ended December 31, 2015 , 2014 , and 2013 , was $2.2 million , $2.7 million and $4.6 million , respectively. During the year ended December 31, 2015 , cash of $2.2 million was received from stock option exercises and cash of $0.8 million was received from stock purchases under the employee stock purchase plans. There is no tax impact related to share-based compensation or stock option exercises because we are in a net operating loss position with a full valuation allowance. In June 2015 , we granted to our non-employee directors 281,015 RSUs that vest in equal monthly installments over one year from the date of grant, and will convert to the underlying common shares at the earliest of (i) the three-year anniversary of the grant date, (ii) the director’s separation from service or (iii) a change in control of Arena. The following table summarizes activity with respect to our time-based RSUs under our Equity Compensation Plans for the year ended December 31, 2015 , in thousands (except per share data): RSUs Weighted-Average Grant-Date Fair Value Aggregate Intrinsic Value Unvested at December 31, 2014 456 $ 5.72 Granted 281 $ 4.11 Vested (384 ) $ 5.47 Forfeited/cancelled (80 ) $ 4.88 Unvested at December 31, 2015 273 $ 4.67 Outstanding at December 31, 2015 810 $ 5.80 $ 4,698 The total fair value of RSUs vested during the years ended December 31, 2015 , 2014 , and 2013 , was $2.1 million , $1.8 million and $0.9 million , respectively. The weighted-average estimated grant-date fair value of RSUs granted during the years ended December 31, 2015 , 2014 , and 2013 , was $4.11 , $5.23 and $6.91 respectively. In March 2015 , March 2014 and March 2013 , we granted our executive officers 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 of the year granted of the NASDAQ Biotech Index. In the aggregate, the target number of shares of common stock that could be earned under the PRSUs granted in March 2015 , March 2014 and March 2013 were originally 745,000 , 695,000 and 780,000 , respectively; however, the actual number of shares that could be earned ranges from 0% to 200% of such amounts. In addition, there is a cap on the number of shares that could be earned under the PRSUs equal to six times the grant-date fair value of each 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 the grant-date fair value, which totaled $3.4 million , $5.0 million and $5.9 million for the March 2015, 2014 and March 2013 grants, respectively, and which is being recognized over the performance period. Of the target number of shares of 745,000 for the March 2015 grants, 695,000 for the March 2014 grants and 780,000 for the March 2013 grants, 276,389 , 169,445 and 113,334 , respectively, will not be eligible to vest at the end of the performance period due to our former Chief Executive Officer’s retirement in October 2015, and our former Chief Financial Officer’s resignation in July 2015. (See Note 16.) All other PRSUs granted to date were outstanding and unvested at December 31, 2015 . Employee Stock Purchase Plans. In June 2015, our stockholders approved our 2009 Employee Stock Purchase Plan, as amended, or 2009 ESPP. Under the 2009 ESPP substantially all employees can choose to have up to 15% of their annual compensation withheld to purchase up to 625 shares of common stock per purchase period, subject to certain limitations. The shares of common stock may be purchased over an offering period with a maximum duration of 24 months and at a price of not less than 85% of the lesser of the fair market value of the common stock on (i) the first trading day of the applicable offering period or (ii) the last trading day of the applicable three-month purchase period. Under applicable accounting guidance, the 2009 ESPP is considered a compensatory plan. At December 31, 2015 , a total of 1,256,585 shares of common stock were available for issuance under the 2009 ESPP. During the years ended December 31, 2015 , 2014 , and 2013 , 327,950 , 304,085 and 334,360 shares, respectively, were purchased under the 2009 ESPP. Share-based Compensation. We estimate the grant-date fair value of all of our share-based awards in determining our share-based compensation expense. Our share-based awards include (i) stock options, (ii) options to purchase stock granted under our employee stock purchase plan, (iii) RSUs, and (iv) PRSU awards. The table below sets forth the weighted-average assumptions and estimated fair value of stock options we granted under our Equity Compensation Plans during the years presented: Years ended December 31, 2015 2014 2013 Risk-free interest rate 1.8 % 1.8 % 1.3 % Dividend yield 0 % 0 % 0 % Expected volatility 80 % 81 % 80 % Expected life (years) P6Y1M2D 6.17 6.24 Weighted-average estimated fair value per share of stock options granted $ 2.55 $ 4.37 $ 5.25 The table below sets forth the assumptions and estimated fair value of the options to purchase stock granted under our employee stock purchase plan for multiple offering periods during the years presented: Years ended December 31, 2015 2014 2013 Risk-free interest rate 0.0% - 1.0% 0.0% - 0.6% 0.0% - 0.5% Dividend yield 0% 0% 0% Expected volatility 52% - 78% 53% - 81% 79% - 105% Expected life (years) .25 - 2.0 .25 - 2.0 .25 - 2.0 Range of fair value per share of options granted under employee stock purchase plan $0.78 to $2.94 $1.37 to $4.22 $0.90 to $5.44 The table below sets forth the assumptions and estimated fair value of PRSU awards granted during the years presented: Years ended December 31, 2015 2014 2013 Risk-free interest rate 1.1 % 0.7 % 0.4 % Dividend yield 0 % 0 % 0 % Expected volatility 75 % 78 % 89 % Performance period (years) 2.97 2.99 2.99 Estimated fair value per share of PRSUs granted $ 4.50 $ 7.16 $ 7.50 We recognized share-based compensation expense as follows for the years presented, in thousands, except per share data: Years ended December 31, 2015 2014 2013 Cost of product sales $ 29 $ 0 $ 17 Research and development 7,582 7,118 4,318 General and administrative 6,710 6,391 4,689 Restructuring charges 142 0 0 Total share-based compensation expense and impact on net loss $ 14,463 $ 13,509 $ 9,024 Impact on net loss per share, basic and diluted $ 0.06 $ 0.06 $ 0.04 Total share-based compensation capitalized into inventory $ 173 $ 81 $ 75 We capitalize into inventory share-based compensation related to awards granted to employees involved with the manufacturing of BELVIQ. Such compensation will subsequently be recognized as cost of product sales when the related inventory is sold. The table below sets forth our total unrecognized estimated compensation expense at December 31, 2015 , by type of award and the weighted-average remaining requisite service period over which such expense is expected to be recognized: Unrecognized Expense (in thousands) Remaining Weighted-Average Recognition Period (in years) Unvested stock options $ 12,660 2.47 RSUs 1,199 1.32 PRSUs 2,735 1.04 Common Stock Reserved for Future Issuance. The following shares of our common stock are reserved for future issuance at December 31, 2015 , in thousands: Equity Compensation Plans 40,537 2009 ESPP 1,257 Deferred compensation plan 79 Total 41,873 |
Collaborations
Collaborations | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Collaborations | Collaborations Lorcaserin collaborations Eisai. In November 2013, Arena GmbH and Eisai entered into the Second Amended and Restated Marketing and Supply Agreement, or Eisai Agreement. The Eisai Agreement expanded Eisai’s exclusive commercialization rights for lorcaserin to all of the countries in the world, except for South Korea, Taiwan, Australia, New Zealand and Israel. Lorcaserin is approved in the United States and marketed as BELVIQ for chronic weight management in adults who are overweight with a comorbidity or obese, and 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 manufacture and sell lorcaserin to Eisai and provide Eisai with services related to development and regulatory activities. Under the Eisai Agreement, we have received an upfront payment and payments from sales of lorcaserin, and are entitled to receive payments from future sales of lorcaserin, milestone payments based on the achievement of regulatory filings and approvals, one-time purchase price adjustment payments and other payments. 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 lorcaserin 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 for the periods presented, in thousands: Years ended December 31, From Inception Through December 31, 2015 2015 2014 2013 Net product sales $ 14,236 $ 15,983 $ 5,702 $ 35,921 Amortization of upfront payments 7,541 7,630 4,035 28,067 Reimbursement of development expenses 1,538 10,037 2,020 16,958 Milestone payments 0 500 66,000 86,500 Reimbursement of patent and trademark expenses 426 444 361 1,318 Subtotal other Eisai collaborative revenue 9,505 18,611 72,416 132,843 Total $ 23,741 $ 34,594 $ 78,118 $ 168,764 The following table summarizes the deferred revenues under our collaboration with Eisai, in thousands: December 31, 2015 2014 Upfront payments $ 86,933 $ 94,474 Net product sales 10,754 7,081 Total deferred revenues attributable to Eisai 97,687 101,555 Less current portion (18,295 ) (14,622 ) Deferred revenues attributable to Eisai, less current portion $ 79,392 $ 86,933 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, 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 lorcaserin at our facility in Switzerland, and sell lorcaserin 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 and product samples is based on our cost of goods sold. In addition to payments for purchases of lorcaserin, 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 lorcaserin 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 in 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 lorcaserin product supply is based on Eisai’s estimated price at the time the order is shipped, which is Eisai’s estimate of the Eisai Product Purchase Price, and is subject to change on April 1 and October 1 of each year. 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 Eisai 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. The Eisai Product Purchase Price for the product Eisai has sold has been lower than the estimated price that Eisai paid us for such product, primarily due to an increase in deductions from savings cards and returns, partially offset by a decrease in vouchers. In January 2015, Eisai announced the launch of a new savings card which enables eligible patients without commercial coverage for BELVIQ to pay no more than $75 for each monthly prescription while those patients with commercial coverage for BELVIQ are able to use the card to obtain additional savings if their copay is greater than $50 per monthly prescription. Subsequent to the end of Eisai’s fiscal year, we refund the portion of these excess payments, which total the $12.1 million classified as Payable to Eisai on our consolidated balance sheet at December 31, 2015 , 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 and approval of a once-daily formulation of lorcaserin, as well as potentially exploring, including as part of the CVOT, BELVIQ’s effect on conversion to type 2 diabetes and improvements in cardiovascular outcomes. The chart below 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 lorcaserin at such party’s own expense. For the years ended December 31, 2015 , 2014 , and 2013 , we recognized expenses of $16.2 million , $35.3 million and $11.7 million , respectively, for external clinical study fees related to lorcaserin and internal non-commercial manufacturing costs primarily related to lorcaserin. Cost Sharing for Development with Eisai United States Rest of North and South America Remaining Territories BELVIQ - Pre-approval* Not Applicable General Eisai: 90%; Arena: 10% Certain stability work Eisai: 50%; Arena: 50% Up to total of $100.0 million** Eisai: 50%; Arena: 50% Thereafter, Eisai: 100% BELVIQ - Post-approval* General Eisai: 90%; Arena 10% Non-FDA required portion of CVOT Up to $80.0 million - Eisai: 50%; Arena: 50% Thereafter, Eisai: 100% Certain pediatric studies Eisai: 50%; Arena: 50% General Eisai: 90%; Arena: 10% Certain stability work Eisai: 50%; Arena: 50% Up to total of $50.0 million - Eisai: 50%; Arena: 50% Thereafter, Eisai: 90%; Arena: 10% Lorcaserin products other than BELVIQ - Pre-approval Up to a total of $250.0 million (as reduced by up to $80.0 million for non-FDA required portion of CVOT)** - Eisai: 50%; Arena: 50% Lorcaserin products other than BELVIQ - Post-approval Up to a total of $100.0 million in the aggregate across all additional products - Eisai: 50%; Arena: 50% Thereafter, Eisai: 90%; Arena: 10% ______________________ * Development required by a regulatory authority, with the exception of the non-FDA required portion of the CVOT. ** Under the collaborative agreement, the amount for BELVIQ pre-approval in the Remaining Territories was decreased and the amount for lorcaserin products other than BELVIQ pre-approval was increased by such amount. Certain other terms. Eisai and we have agreed to limitations on the ability to commercialize outside of the Eisai Agreement any weight management product or addiction disorder product in the territories under the agreement. The agreement includes a stand-still provision limiting Eisai’s ability to acquire our securities and assets. Eisai will indemnify us for losses resulting from certain third-party claims, including for (a) Eisai’s negligence, willful misconduct or violation of law, but excluding product liability claims, (b) Eisai’s breach of the Eisai Agreement or related agreements, but excluding product liability claims, (c) certain uses or misuses of a lorcaserin product, (d) certain governmental investigations of Eisai related to a lorcaserin product, and (e) infringement relating to Eisai’s use of certain trademarks, tag lines and logos related to a lorcaserin product. Arena GmbH will indemnify Eisai for losses resulting from certain third-party claims, including for (i) Arena GmbH’s negligence, willful misconduct, failure to comply with law, breach of any agreement with a third party with respect to product development prior to the effective date of the original agreement with Eisai, but excluding product liability claims, (ii) Arena GmbH’s negligence or willful misconduct with respect to certain uses or misuses of a lorcaserin product outside of the agreement, (iii) certain uses or misuses of a lorcaserin product after the term of the agreement, in any territory no longer under the agreement or with respect to any product after the termination of the agreement with respect to such product, (iv) Arena GmbH’s negligence, willful misconduct or violation of law, but excluding product liability claims, (v) Arena GmbH’s breach of the Eisai Agreement or related agreements, but excluding product liability claims, (vi) certain infringement of intellectual rights of a third party, and (vii) infringement relating to Eisai’s use of certain trademarks related to a lorcaserin product. We are unable to predict the maximum potential amount of any indemnification claims. At December 31, 2015, we have not incurred any losses under these indemnification provisions. In addition, Arena GmbH and Eisai will, in general, share equally in losses resulting from third-party product liability claims, except where one party’s acts or omissions did not contribute to the events or circumstances leading to such product liability claim and the other party’s actual willful misconduct, violation of law or breach of its obligations under the Eisai Agreement or certain other agreements between Arena GmbH and Eisai were the sole and direct cause of the product liability claim. We are unable to predict the range of loss from future product liability claims. Eisai may terminate the Eisai Agreement with respect to any country in the territory following the later of the expiration of all issued lorcaserin patents in such country and 12 years after the first commercial sale of the first lorcaserin product in such country. Arena GmbH and Eisai each has the right to terminate the agreement early in certain circumstances in its entirety or with respect to the applicable country or product, including (a) if the other party is in material breach, (b) for commercialization concerns, and (c) for certain intellectual property infringement. Eisai also has the right to terminate the agreement early in its entirety or with respect to each country in certain circumstances, including (i) termination in a country if sales of generic equivalents of a lorcaserin product in such country exceed sales of the lorcaserin product in that country (based on volume), and (ii) if Eisai is acquired by a company that has a product that competes with a lorcaserin product. In addition, Arena GmbH can terminate the agreement early in its entirety or with respect to each country in the non-US territories in North and South America in certain circumstances, including termination in each country if Eisai does not satisfy certain regulatory filing and commercialization diligence requirements in such country. Ildong Pharmaceutical Co., Ltd. In November 2012, Arena GmbH and Ildong entered into the Marketing and Supply Agreement, or Ildong BELVIQ Agreement. Under this agreement, we granted Ildong exclusive rights to commercialize BELVIQ in South Korea for weight loss or weight management in obese and overweight patients. We also provide certain services and manufacture and sell BELVIQ to Ildong. Ildong has agreed not to conduct activities outside of our agreement related to the approval or commercialization of any other pharmaceutical product for weight loss, weight management or obesity in South Korea, with the exception of phentermine. In connection with entering into the Ildong BELVIQ Agreement, we received from Ildong an upfront payment of $5.0 million , less withholding taxes. Revenues from this upfront payment were deferred, as we determined that the exclusive rights did not have standalone value without our ongoing development and regulatory activities. Accordingly, this payment is recognized ratably as revenue over the period in which we expect the services to be rendered, which is approximately 14 years . In addition to the upfront payment, we received a milestone payment of $3.0 million , less withholding taxes, in March 2015, which we earned upon the February 2015 approval of BELVIQ for marketing in South Korea for weight management. We manufacture BELVIQ at our facility in Switzerland, and sell BELVIQ to Ildong for a purchase price starting at the higher of the defined minimum amount or 35% of Ildong’s annual net product sales (which are the gross invoiced sales less certain deductions described in the Ildong Agreement), or the Ildong Product Purchase Price. The Ildong Product Purchase Price increases on a tiered basis up to the higher of the defined minimum amount or 45% on the portion of annual net product sales exceeding $15.0 million . However, in no event shall the Ildong Product Purchase Price be less than a defined minimum amount adjusted annually based upon a consumer price index. For the year ended December 31, 2015 , the Ildong Product Purchase Price equaled the defined minimum amount (which exceeded the amounts calculated using the applicable percentages for the applicable tiers of Ildong’s annual net product sales). If certain annual net product sales amounts are not met, we can convert Ildong’s right to commercialize BELVIQ in South Korea to be non-exclusive. At December 31, 2015 , our consolidated balance sheet included $0.4 million and $3.5 million for the current and non-current portion, respectively, of the deferred revenue attributable to the upfront payment. For the years ended December 31, 2015 , 2014 , and 2013 , we recognized revenues of $8.9 million (including $5.5 million from our portion of Ildong net product sales of BELVIQ and the $3.0 million milestone payment), $0.4 million and $0.5 million respectively, under this agreement. Ildong will indemnify us for losses resulting from certain third-party claims, including for (a) Ildong’s negligence, willful misconduct or violation of law, (b) Ildong’s breach of the marketing and supply agreement or related agreements, (c) certain uses or misuses of lorcaserin (including any product liability claim and other claims relating to sales or development of lorcaserin in South Korea), (d) certain governmental investigations of Ildong related to lorcaserin, and (e) infringement relating to Ildong’s use of trademarks related to lorcaserin. Arena GmbH will indemnify Ildong for losses resulting from certain third-party claims, including for (i) Arena GmbH’s negligence, willful misconduct or violation of law, and (ii) Arena GmbH’s breach of the marketing and supply agreement or related agreements. Unless terminated earlier, the agreement with Ildong will continue in effect until the later of the expiration of all issued patents relating to BELVIQ in South Korea and 12 years after the first commercial sale of lorcaserin in South Korea. Either party has the right to terminate the agreement early in certain circumstances, including (a) if the other party is in material breach, (b) for certain commercialization concerns, and (c) for certain intellectual property concerns. Ildong also has the right to terminate the agreement early if we notify Ildong that Ildong’s right to commercialize lorcaserin in South Korea will become non-exclusive. CY Biotech Company Limited In July 2013, Arena GmbH entered into the CYB Agreement. Under this agreement, we granted CYB exclusive rights to commercialize BELVIQ in Taiwan for weight loss or weight management in obese and overweight patients, subject to regulatory approval of BELVIQ by the Taiwan Food and Drug Administration, or TFDA. We also provide certain services and will manufacture and sell BELVIQ to CYB. CYB has agreed not to conduct outside of our agreement activities related to the approval or commercialization of any other pharmaceutical product for weight loss, weight management or obesity in Taiwan. We will receive payments from sales of BELVIQ under the CYB Agreement, and are eligible to receive purchase price adjustment payments based on CYB’s annual net product sales, as well as a milestone payment upon approval of the first additional indication for lorcaserin by the TFDA. We received from CYB an upfront payment of $2.0 million , less withholding taxes, which was recorded as deferred revenue and will be recognized as revenue ratably over approximately 14 years, which is the period in which we expect to provide services under the arrangement. For the years ended December 31, 2015 , 2014 , and 2013 , we recognized revenues of $0.2 million , $0.2 million and $0.1 million , respectively, under this agreement. Abic Marketing Limited (Teva) In July 2014, Arena GmbH entered into the Teva Agreement. Under this agreement, we granted Teva exclusive rights to commercialize BELVIQ in Israel for weight loss or weight management in obese and overweight patients, subject to regulatory approval of BELVIQ by the Israeli Ministry of Health, or MOH. We also provide certain services and will manufacture and sell BELVIQ to Teva. Teva has agreed not to conduct outside of our agreement activities related to the approval or commercialization of any other pharmaceutical product for weight loss, weight management or obesity in Israel. We will receive payments from sales of BELVIQ under the Teva Agreement. We received from Teva an upfront payment of $500,000 and a milestone payment of $250,000 earned upon its application for regulatory approval of BELVIQ in Israel. We recorded the upfront payment as deferred revenue and are recognizing it as revenue ratably over approximately nine years, which is the period in which we expect to provide services under the arrangement. For the years ended December 31, 2015 , and 2014 , we recognized revenues of $0.1 million and $0.3 million , respectively, under the Teva Agreement. Other collaborations Nelotanserin - Axovant Sciences Ltd. In May 2015, Arena GmbH entered into the Axovant Agreement. In October 2015, Roivant Sciences, Ltd., or Roivant, assigned the exclusive rights to develop and commercialize nelotanserin to its subsidiary, Axovant Sciences Ltd., or Axovant. Under this agreement, Axovant has exclusive worldwide rights to develop and commercialize nelotanserin, subject to regulatory approval. We also provide certain services and will manufacture and sell nelotanserin to Axovant. We received an upfront payment of $4.0 million , which was recorded as deferred revenue and is being recognized as revenue ratably over approximately five years, which is the period in which we expect to provide services under the arrangement. We will receive payments from sales of nelotanserin under the Axovant Agreement, and are eligible to receive purchase price adjustment payments based on Axovant’s annual net product sales, as well as $41.5 million in development and regulatory milestone payments. For the year ended December 31, 2015 , we recognized revenues of $1.1 million under this agreement. Temanogrel - Ildong Pharmaceutical Co., Ltd. In November 2012, we entered into the Ildong Temanogrel Agreement for temanogrel, our internally discovered inverse agonist of the serotonin 2A receptor. Under such agreement, we granted Ildong exclusive rights to commercialize temanogrel in South Korea for myocardial infarction, acute coronary syndrome, stroke, peripheral artery disease, and other cardiovascular diseases, subject to further development and regulatory approval of temanogrel. Initially, Ildong will be responsible for funding and conducting, under the direction of a joint steering committee, the ongoing Phase 1 clinical trial in healthy volunteers to investigate the safety of co-administration with clopidogrel and aspirin and a planned Phase 2a proof-of-concept trial in patients. We will maintain ownership of temanogrel outside of South Korea, and have the rights to use data generated by Ildong for the development and potential commercialization of temanogrel outside of South Korea by us or other Arena licensees. In addition, Ildong has agreed to pay us a $2.0 million development milestone if the planned additional Phase 1 and Phase 2a clinical trials conducted by Ildong support continued development and we or another Arena licensee initiates a Phase 2b clinical trial of temanogrel. We are also eligible to receive a royalty on net product sales of temanogrel in South Korea, and Ildong is eligible to receive a share of future payments received by us related to licensing transactions and sales of temanogrel in other territories. CNS Receptor - Boehringer Ingelheim International GmbH In December 2015, Arena GmbH and Boehringer Ingelheim 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. Under this agreement, we granted Boehringer Ingelheim exclusive rights to our internally discovered, novel compounds and intellectual property for an orphan CNS receptor. We will jointly conduct research with Boehringer Ingelheim to identify additional drug candidates that are suitable for continued research and development as therapeutic compounds for various disease indications, with the initial focus expected to be psychiatric diseases such as schizophrenia. The agreement grants Boehringer Ingelheim exclusive worldwide rights to develop, manufacture and commercialize products resulting from the collaboration. In part consideration of the rights to our intellectual property necessary or useful to conduct the joint research under the Boehringer Ingelheim Agreement, we received from Boehringer Ingelheim an upfront payment of $7.5 million in January 2016, less withholding taxes which are refundable to us. Revenues from this upfront payment will be deferred, as we determined that the exclusive rights did not have standalone value without our ongoing participation in the joint research. Accordingly, this payment will be recognized ratably as revenue over the period in which we expect the services to be rendered, which is approximately two years. In addition to the upfront payment, we are eligible to receive up to an aggregate of $254 million in research funding and success milestones in case of full commercial success of multiple drug products. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans 401(k) Plan. All of our US employees are eligible to participate in our defined contribution retirement plan that complies with Section 401(k) of the Internal Revenue Code, or IRC. We match 100% of each participant’s voluntary contributions, subject to a maximum of 6% of the participant’s eligible compensation. Our matching portion, which totaled $1.9 million , $1.6 million and $1.5 million for the years ended December 31, 2015 , 2014 , and 2013 , respectively, vests over a five -year period from the date of hire. Pension Plan. Arena GmbH contributes to a multiemployer defined benefit pension plan, established under an affiliated group of employers, for the purpose of providing mandatory occupational pension benefits for its employees. The risks of participating in a multiemployer plan are different from a single-employer plan in that (i) assets contributed to the multiemployer plan by one employer may be used to provide benefits to employees of other participating employers, (ii) if a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers, (iii) if Arena GmbH elects to stop participating in the multiemployer plan, Arena GmbH may be required to pay the plan an amount based on the underfunded status of the plan, referred to as a withdrawal liability, and (iv) Arena GmbH has no involvement in the management of the multiemployer plan’s investments. We currently have no intention of withdrawing from the multiemployer plan. Our contributions to the multiemployer plan were $0.7 million , $0.7 million and $0.7 million for the years ended December 31, 2015 , 2014 , and 2013 , respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The following table summarizes our loss before benefit for income taxes by region for the years presented, in thousands: Years ended December 31, 2015 2014 2013 United States $ (64,109 ) $ (16,607 ) $ 11,573 Foreign (43,870 ) (43,901 ) (31,008 ) Total loss before income taxes $ (107,979 ) $ (60,508 ) $ (19,435 ) We have not recorded a benefit for income taxes for the years ended December 31, 2015 , 2014 , and 2013 because we have a full valuation allowance. Our effective income tax rate differs from the statutory Federal rate of 34% for the years presented due to the following, in thousands: Years ended December 31, 2015 2014 2013 Benefit for income taxes at statutory Federal rate $ (36,713 ) $ (20,573 ) $ (6,608 ) State income tax, net of Federal benefit and valuation allowance 0 0 0 Permanent differences and other 4,190 2,318 2,122 Gain from valuation of derivative liabilities (162 ) (1,507 ) (3,922 ) Foreign losses at lower effective rates 15,041 13,318 9,527 Research and development and Orphan Drug credits (3,666 ) (2,992 ) (2,594 ) Adjustment to research and development credits and net operating losses, or NOLs 0 0 (59,790 ) Change in Federal and foreign valuation allowance 21,310 9,436 61,265 Benefit for income taxes $ 0 $ 0 $ 0 The components of our net deferred tax assets are as follows, in thousands: December 31, 2015 2014 Deferred tax assets: Foreign NOL carryforwards $ 7,060 $ 9,518 Federal and California NOL carryforwards 236,334 216,906 Federal and California research and development credit carryforwards 48,768 44,022 Deferred revenues 33,548 36,448 Depreciation 4,475 3,714 Share-based compensation expense 10,737 8,549 Other, net 3,578 4,011 Total deferred tax assets 344,500 323,168 Deferred tax liabilities (660 ) (767 ) Net deferred tax assets 343,840 322,401 Valuation allowance (343,840 ) (322,401 ) Net deferred tax liabilities $ 0 $ 0 A valuation allowance is recorded against all of our deferred tax assets, as realization of such assets is not more-likely-than-not. The realization of our deferred tax assets is dependent upon future taxable income. Our ability to generate taxable income is analyzed regularly on a jurisdiction-by-jurisdiction basis. At such time as it is more-likely-than-not that we will generate taxable income in a jurisdiction, we will reduce or remove the valuation allowance. The valuation allowance increased by $21.4 million from December 31, 2014 , to December 31, 2015 . At December 31, 2015 , we had Federal NOL carryforwards of $604.8 million that will begin to expire after 2023 unless previously utilized. At the same date, we had California NOL carryforwards of $586.7 million , which begin expiring after 2016 and foreign NOL carryforwards of $86.0 million , which begin expiring after 2016 . At December 31, 2015 , approximately $8.9 million of the Federal and California NOL carryforwards related to stock option exercise windfalls, which will result in an increase to additional paid-in capital, or APIC, and a decrease in income taxes payable at the time such carryforwards are utilized. At December 31, 2015 , we also had Federal and California research and development tax credit carryforwards, net of reserves, of $30.1 million and $23.0 million , respectively. At December 31, 2015 , we had a Federal Orphan Drug Credit carryforward of $3.5 million . Federal credit carryforwards will begin to expire after 2026 unless previously utilized. The California research and development credit carries forward indefinitely. Sections 382 and 383 of the IRC limit the utilization of tax attribute carryforwards that arise prior to certain cumulative changes in a corporation’s ownership. We have completed an IRC Section 382/383 analysis through 2015 and identified ownership changes that limit our utilization of tax attribute carryforwards. We reduced deferred tax assets associated with such tax attribute carryforwards to remove deferred tax assets that will expire prior to utilization. In accordance with authoritative guidance, the impact of an uncertain income tax position on the income tax return must be recognized at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant taxing authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. The following table reconciles the beginning and ending amount of unrecognized tax benefits for the years presented, in thousands: Years ended December 31, 2015 2014 2013 Gross unrecognized tax benefits at the beginning of the year $ 5,214 $ 4,629 $ 0 Additions from tax positions taken in the current year 405 585 541 Additions from tax positions taken in prior years 0 0 4,088 Reductions from tax positions taken in prior years 0 0 0 Tax settlements 0 0 0 Gross unrecognized tax benefits at end of the year $ 5,619 $ 5,214 $ 4,629 Of our total unrecognized tax benefits at December 31, 2015 , $4.2 million will impact our effective tax rate in the event the valuation allowance is removed. We do not anticipate that there will be a substantial change in unrecognized tax benefits within the next 12 months . Our practice is to recognize interest and/or penalties related to income tax matters in income tax expense. Because we have incurred net losses since our inception, we did not have any accrued interest or penalties included in our consolidated balance sheets at December 31, 2015 , or 2014 , and did not recognize any interest and/or penalties in our consolidated statements of operations and comprehensive loss for the years ended December 31, 2015 , 2014 , and 2013 . We have elected the “with and without method – direct effects only”, prescribed in accordance with authoritative guidance, with respect to recognition of stock option windfall tax benefits within APIC and will utilize general NOLs to offset taxable income before utilization of NOLs attributable to windfall tax benefits. We are subject to income taxation in the United States at the Federal and state levels. All tax years are subject to examination by US and California tax authorities due to the carryforward of unutilized NOLs and tax credits. We are also subject to foreign income taxes in the countries in which we operate. To our knowledge, we are not currently under examination by any taxing authorities. At December 31, 2015 , no foreign subsidiaries have accumulated earnings and, as such, there are no unrepatriated earnings. Our Swiss subsidiary, Arena GmbH, has been granted a conditional incentive tax holiday by the Canton of Aargau for its operations in Switzerland. Without a tax holiday or other tax incentives, the standard effective tax rate of a company located in Aargau is approximately 19% . As a result of the tax holiday and other tax incentives, we expect the effective tax rate for Arena GmbH to be approximately half of such rate. The tax holiday came into effect on January 1, 2013, and will continue for a period of up to 10 years , not to extend beyond December 31, 2022 . As a result of foreign losses and a full valuation allowance, no net tax benefit was derived for the years ended December 31, 2015 , 2014 , and 2013 , as a result of the tax holiday. |
Legal Proceedings
Legal Proceedings | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Proceedings | 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. 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 | 12 Months Ended |
Dec. 31, 2015 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Charges | Restructuring Charges In October 2015, we committed to a reduction in our US workforce of approximately 35% , or a total of 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 a total of approximately 14 employees, which we plan to substantially complete by the end of 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 , including non-cash, share-based compensation expense of $0.1 million , which is reflected as a separate line item in our consolidated statement of operations and comprehensive loss for the year ended December 31, 2015 . As of December 31, 2015 , $2.2 million of this charge has been paid, resulting in a remaining accrual of $1.8 million . |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | Quarterly Financial Data (Unaudited) The following tables present quarterly data for the years presented, in thousands, except per share data: 2015 Quarter ended December 31 Quarter ended September 30 Quarter ended June 30 Quarter ended March 31 Year ended December 31 Revenues $ 7,751 $ 9,138 $ 9,181 $ 12,256 $ 38,326 Operating costs and expenses $ 37,045 $ 34,319 $ 36,160 $ 34,000 $ 141,524 Net loss $ (30,459 ) $ (26,418 ) $ (26,807 ) $ (24,295 ) $ (107,979 ) Net loss per share, basic and diluted $ (0.13 ) $ (0.11 ) $ (0.11 ) $ (0.10 ) $ (0.45 ) 2014 Quarter ended December 31 Quarter ended September 30 Quarter ended June 30 Quarter ended March 31 Year ended December 31 Revenues $ 9,191 $ 8,164 $ 12,801 $ 6,814 $ 36,970 Operating costs and expenses $ 39,351 $ 34,373 $ 38,167 $ 30,352 $ 142,243 Net loss $ (32,061 ) $ (10,672 ) $ 7,480 $ (25,255 ) $ (60,508 ) Net loss per share, basic and diluted $ (0.15 ) $ (0.05 ) $ 0.03 $ (0.12 ) $ (0.28 ) |
Retirement of Former President
Retirement of Former President and Chief Executive Officer | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Retirement of Former President and Chief Executive Officer | Retirement of Former President and Chief Executive Officer In October 2015, at the request of our Board of Directors, Jack Lief, our former President, Chief Executive Officer and principal financial officer, retired from the company, including from our Board of Directors. In connection with his retirement, we entered into a separation agreement with Mr. Lief, which provides that he will be entitled to receive the following severance compensation and other benefits (which amounts are consistent with our Amended and Restated Severance Benefit Plan, dated effective December 30, 2008, as amended): (1) a cash severance payment of approximately $1.8 million (subject to applicable withholdings); (2) continuation of health insurance coverage for a period of 18 months ; (3) acceleration of the stock options and restricted stock units (other than performance-based restricted stock units, or PRSUs) held by Mr. Lief that would otherwise have vested through the 18-month period following the date of his resignation; 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) 18 months (but not beyond the original contractual life of the option). In addition, with respect to outstanding PRSUs, when the Compensation Committee of our Board of Directors determines our relative performance for an applicable performance period, a pro-rata portion of the relevant PRSUs held by Mr. Lief is eligible to vest (based on the percentage of the performance period that Mr. Lief provided service prior to his retirement). 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 in the fourth quarter of 2015 related to these benefits of $2.9 million , including non-cash, share-based compensation expense of $1.1 million , which is included in general and administrative expenses in our consolidated statement of operations and comprehensive loss for the year ended December 31, 2015. As of December 31, 2015, there are remaining accruals for these benefits of $1.8 million included in accounts payable and other accrued expenses, the majority of which is expected to be paid in the second quarter of 2016. |
The Company and Summary of Si25
The Company and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with US generally accepted accounting principles, or GAAP, and reflect all of our activities, including those of our wholly owned subsidiaries. All material intercompany accounts and transactions have been eliminated in consolidation. |
New Accounting Guidance | 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 annual 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.” Under GAAP, continuation of a reporting entity as a going concern is presumed as the basis for preparing financial statements unless and until the entity’s liquidation becomes imminent. Preparation of financial statements under this presumption is commonly referred to as the going concern basis of accounting. If and when an entity’s liquidation becomes imminent, financial statements should be prepared under the liquidation basis of accounting. Even when an entity’s liquidation is not imminent, there may be conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern. In those situations, financial statements should continue to be prepared under the going concern basis of accounting, but ASU No. 2014-15 should be followed to determine whether to disclose information about any relevant conditions and events. ASU No. 2014-15 is effective for the annual reporting period ending after December 15, 2016, and for annual and interim periods thereafter. We do not expect the adoption of ASU No. 2014-15 to have a material impact on our consolidated financial statements. In November 2015, FASB issued ASU No. 2015-17, “Balance Sheet Classification of Deferred Taxes.” ASU No. 2015-17 requires entities that present a classified balance sheet to classify all deferred taxes as noncurrent assets or noncurrent liabilities. ASU No. 2015-17 is effective for annual reporting periods, and interim periods within those annual periods, beginning after December 15, 2016 and early adoption is permitted. We elected to early adopt this standard in 2015. The adoption of ASU No. 2015-17 did not 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 beginning after December 15, 2017, including interim periods within the year of adoption, 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. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity 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. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist of cash and highly liquid investments with remaining maturities of three months or less when purchased. |
Inventory | Inventory Inventory is stated at the lower of cost or market. We determine cost, which includes amounts related to materials, labor and overhead, using a first-in, first-out basis. We evaluate our inventory each period to identify potential obsolete, excess or otherwise non-saleable items. If non-saleable items are observed and there are no alternate uses for the inventory, we will record a write-down to net realizable value in the period that the decline in value is first recognized. |
Concentrations of Risk and Geographical Data | Concentrations of Risk and Geographical Data 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 or 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 and Ildong are the exclusive distributors of BELVIQ in the United States and South Korea, respectively, which are the only jurisdictions for which BELVIQ has received regulatory approval for marketing. We also produce drug products for Siegfried AG, or Siegfried, and, to a lesser extent, another third party under toll manufacturing agreements. Percentages of our total revenues are as follows: Years ended December 31, 2015 2014 2013 Eisai Agreement (See Note 12) 61.9 % 93.6 % 96.0 % Ildong Agreement (See Note 12) 23.2 % 1.0 % 0.6 % Toll manufacturing agreements 11.1 % 4.0 % 3.3 % Other collaborative agreements 3.8 % 1.4 % 0.1 % Total percentage of revenues 100.0 % 100.0 % 100.0 % Percentages of our total accounts receivable are as follows: December 31, 2015 2014 2013 Eisai Agreement (See Note 12) 77.5 % 93.1 % 94.5 % Ildong Agreement (See Note 12) 1.3 % 0.4 % 1.0 % Toll manufacturing agreements 9.6 % 0.0 % 4.3 % Other collaborative agreements 11.6 % 6.5 % 0.2 % Total percentage of accounts receivable 100.0 % 100.0 % 100.0 % We purchase raw materials, starting materials, intermediates, API, excipients and other materials from commercial sources. To decrease the risk of an interruption to our supply, when we believe it is reasonable for us to do so, we source these materials from multiple suppliers so that, in general, the loss of any one source of supply would not have a material adverse effect on commercial production, project timelines or inventory of supplies for our studies or clinical trials. However, currently we have only one or a limited number of suppliers for some of these materials for BELVIQ and for other of our programs. The loss of a primary source of supply would potentially delay our production of BELVIQ or our development projects and potentially those of current or future collaborators. We intend to maintain a safety stock of certain of these materials to help avoid delays in production, but we do not know whether such stock will be sufficient. Our facility in Zofingen, Switzerland is the only manufacturer of finished drug product for BELVIQ. We believe that it could take longer than one year to secure a second source of supply for finished drug product of BELVIQ. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost and depreciated over the estimated useful lives of the assets (generally 3 to 15 years ) using the straight-line method. Buildings are stated at cost and depreciated over an estimated useful life of approximately 20 years using the straight-line method. Leasehold improvements are stated at cost and amortized over the shorter of the estimated useful lives of the assets or the lease term using the straight-line method. Capital improvements are stated at cost and amortized over the estimated useful lives of the underlying assets using the straight-line method. |
Intangibles | Intangibles Intangible assets consist of our manufacturing facility production licenses we acquired from Siegfried in January 2008 and are amortized using the straight-line method over their estimated useful life of 20 years . |
Long-lived Assets | Long-lived Assets If indicators of impairment exist, we assess the recoverability of the affected long-lived assets by determining whether the carrying value of such assets can be recovered through undiscounted cash flows. If impairment is indicated, we measure the impairment loss by comparing the fair value of the asset, estimated using discounted cash flows expected to be generated from the asset, to the carrying value. |
Deferred Rent | Deferred Rent For financial reporting purposes, rent expense is recognized on a straight-line basis over the term of the lease. The difference between rent expense and amounts paid under lease agreements is recorded as deferred rent in the liability section of our consolidated balance sheets. |
Derivative Liabilities | Derivative Liabilities We account for warrants and other derivative financial instruments as either equity or liabilities based upon the characteristics and provisions of each instrument. Warrants classified as equity are recorded as additional paid-in capital on our consolidated balance sheets and no further adjustments to their valuation are made. Warrants classified as derivative liabilities and other derivative financial instruments that require separate accounting as liabilities are recorded on our consolidated balance sheets at their fair value on the date of issuance and are revalued on each balance sheet date until such instruments are exercised or expire, with changes in the fair value between reporting periods recorded as other income or expense. We estimate the fair value of warrants classified as derivative liabilities using the Black-Scholes option pricing model. |
Foreign Currency | Foreign Currency The functional currency of our wholly owned subsidiary in Switzerland, Arena GmbH, is the Swiss franc. Accordingly, all assets and liabilities of this subsidiary are translated to US dollars based on the applicable exchange rate on the balance sheet date. Revenue and expense components are translated to US dollars at weighted-average exchange rates in effect during the period. Gains and losses resulting from foreign currency translation are reported as a separate component of accumulated other comprehensive income or loss in the stockholders’ equity section of our consolidated balance sheets. Foreign currency transaction gains and losses, which are primarily the result of remeasuring US dollar-denominated receivables and payables at Arena GmbH, are recorded in the interest and other income (expense) section of our consolidated statement of operations and comprehensive loss. |
Share-based Compensation | Share-based Compensation Our share-based awards are measured at fair value and recognized over the requisite service or performance period. The fair value of each stock option is estimated on the date of grant using the Black-Scholes option pricing model, based on the market price of the underlying common stock, expected life, expected stock price volatility and expected risk-free interest rate. Expected volatility is computed using a combination of historical volatility for a period equal to the expected term and implied volatilities from traded options to buy our common stock, with historical volatility being weighted at 75% . The expected life of options is determined based on historical experience of similar awards, giving consideration to the contractual terms of the share-based awards, vesting schedules and post-vesting terminations. The risk-free interest rates are based on the US Treasury yield curve, with a remaining term approximately equal to the expected term used in the option pricing model. The fair value of each restricted stock unit award is estimated based on the market price of the underlying common stock on the date of the grant. The fair value of restricted stock unit awards that include market-based performance conditions is estimated on the date of grant using a Monte Carlo simulation model, based on the market price of the underlying common stock, expected performance measurement period, expected stock price volatility and expected risk-free interest rate. We estimate forfeitures at the time of grant and revise our estimate in subsequent periods if actual forfeitures differ from those estimates. |
Revenue Recognition | Revenue Recognition Our revenues to date have been generated primarily through collaborative agreements and, to a lesser extent, toll manufacturing agreements. Our collaborative agreements may contain multiple elements including commercialization rights, services (joint steering committee and research and development services) and manufactured products. Consideration we receive under these arrangements may include upfront payments, research and development funding, cost reimbursements, milestone payments and payments for net product sales. We recognize revenue when (i) persuasive evidence of an arrangement exists, (ii) delivery has occurred and title has passed, (iii) the price is fixed or determinable and (iv) collectability is reasonably assured. Any advance payments we receive in excess of amounts earned are classified as deferred revenues. We defer recognition of revenue at the time we sell BELVIQ to our collaborators because we presently do not have the ability to estimate product that may be returned to us. Instead, we recognize revenues from net product sales when our collaborators ship BELVIQ to their distributors. See Note 12. We evaluate deliverables in a multiple-element arrangement to determine whether each deliverable represents a separate unit of accounting. A deliverable constitutes a separate unit of accounting when it has standalone value to the customer. If the delivered element does not have standalone value without one of the undelivered elements in the arrangement, we combine such elements and account for them as a single unit of accounting. We allocate the consideration to each unit of accounting at the inception of the arrangement based on the relative selling price. Non-refundable upfront payments received under our collaborative agreements for commercialization rights have been deferred as such rights have not been deemed to have standalone value without the ongoing services required under the agreement. Such amounts are recognized as revenue on a straight-line basis over the period in which we expect to perform the services. Amounts we receive as reimbursement for our research and development expenditures are recognized as revenue as the services are performed. Under the milestone method, we recognize revenue that is contingent upon the achievement of a substantive milestone in its entirety in the period in which the milestone is achieved. A milestone is an event (i) that can be achieved in whole or in part on either our performance or on the occurrence of a specific outcome resulting from our performance, (ii) for which there is substantive uncertainty at the date the arrangement is entered into that the event will be achieved and (iii) that would result in additional payments being due us. A milestone payment is considered substantive when the consideration payable to us for each milestone (a) is consistent with our performance necessary to achieve the milestone or the increase in value to the collaboration resulting from our performance, (b) relates solely to our past performance and (c) is reasonable relative to all of the other deliverables and payments under the arrangement. In making this assessment, we consider all facts and circumstances relevant to the arrangement, including factors such as the scientific, regulatory, commercial and other risks that must be overcome to achieve the respective milestone, the level of effort and investment required to achieve the respective milestone and whether any portion of the milestone consideration is related to future performance or deliverables. Other contingent-based payments received are recognized when earned. We also manufacture drug products under toll manufacturing agreements. Upon the customer’s acceptance of drug products manufactured by us under these agreements, we recognize toll manufacturing revenues. |
Research and Development Costs | Research and Development Expenses Research and development expenses, which consist primarily of salaries and other personnel costs, clinical trial costs and preclinical study fees, manufacturing costs for non-commercial products, and the development of earlier-stage programs and technologies, are expensed as incurred when these expenditures have no alternative future uses. We accrue clinical trial expenses based on work performed. In determining the amount to accrue, we rely on estimates of total costs incurred based on enrollment, the completion of trials and other events. We follow this method because we believe reasonably dependable estimates of the costs applicable to various stages of a clinical trial can be made. However, the actual costs and timing of clinical trials are highly uncertain, subject to risks and may change depending on a number of factors. Differences between the actual clinical trial costs and the estimated clinical trial costs that we have accrued in any prior period are recognized in the subsequent period in which the actual costs become known. Historically, these differences have not been material; however, material differences could occur in the future. Payments made to reimburse collaborators for our share of their research and development activities are recorded as research and development expenses, and are recognized as the work is performed. |
Comprehensive Loss | Comprehensive Loss Comprehensive loss is defined as the change in equity during a period from transactions and other events and circumstances from non-owner sources. We report components of comprehensive loss in the period in which they are recognized. For the years ended December 31, 2015 , 2014 , and 2013 , comprehensive loss consisted of net loss and foreign currency translation gains and losses. |
Net Loss Per Share | 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 have excluded from our calculation of diluted net loss per share all potentially dilutive in-the-money (i) stock options, (ii) restricted stock unit awards, or RSUs, (iii) Total Stockholder Return, or TSR, performance restricted stock unit, or PRSU, awards, (iv) unvested restricted stock in our deferred compensation plan and (v) our previously outstanding warrants, and our diluted net loss per share is the same as our basic net loss per share. |
Income Taxes | Income Taxes We use the asset and liability method of accounting for income taxes. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Our deferred tax assets and liabilities are determined using the enacted tax rates expected to be in effect for the years in which those tax assets are expected to be realized. The realization of our deferred tax assets is dependent upon our ability to generate sufficient future taxable income. We establish a valuation allowance when it is more-likely-than-not the future realization of all or some of the deferred tax assets will not be achieved. The evaluation of the need for a valuation allowance is performed on a jurisdiction-by-jurisdiction basis, and includes a review of all available evidence, both positive and negative. The impact of an uncertain income tax position is recognized at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant taxing authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. |
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. |
Investments | We 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 prior 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 former investment in TaiGen, which previously had been accounted for as a cost method investment with a cost basis of zero , became readily determinable. |
Other Intangible Assets | We capitalize into inventory amortization expense related to the manufacturing of BELVIQ. Such amortization will subsequently be recognized as cost of product sales when the related inventory is sold. |
Sale and leaseback agreements and operating leases | We occupy four US properties under sale and leaseback agreements that allow us the option to repurchase these properties at various dates between 2017 and 2027 and, in some cases, include renewal options. The terms of these leases stipulate annual increases in monthly rental payments of 2.5% . We accounted for our sale and leaseback transactions using the required financing method because our options to repurchase these properties in the future are considered continued involvement. Under the financing method, the book value of the properties and related accumulated depreciation remain on our balance sheet and no sale is recognized. Instead, the sales price of the properties is recorded as a financing obligation, and a portion of each lease payment is recorded as interest expense. |
The Company and Summary of Si26
The Company and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Potentially Dilutive Securities Excluded from Calculation of Diluted Net Loss Per Share | The table below presents the weighted-average number of potentially dilutive securities that were excluded from our calculation of diluted net loss per share for the years presented, in thousands. Years ended December 31, 2015 2014 2013 Stock options 17,030 15,530 14,435 Warrants 19 370 776 RSUs and unvested restricted stock 547 476 306 Total 17,596 16,376 15,517 |
Sales Revenue, Net | |
Percentages of Total Revenues and Accounts Receivable | Percentages of our total revenues are as follows: Years ended December 31, 2015 2014 2013 Eisai Agreement (See Note 12) 61.9 % 93.6 % 96.0 % Ildong Agreement (See Note 12) 23.2 % 1.0 % 0.6 % Toll manufacturing agreements 11.1 % 4.0 % 3.3 % Other collaborative agreements 3.8 % 1.4 % 0.1 % Total percentage of revenues 100.0 % 100.0 % 100.0 % |
Accounts Receivable | |
Percentages of Total Revenues and Accounts Receivable | Percentages of our total accounts receivable are as follows: December 31, 2015 2014 2013 Eisai Agreement (See Note 12) 77.5 % 93.1 % 94.5 % Ildong Agreement (See Note 12) 1.3 % 0.4 % 1.0 % Toll manufacturing agreements 9.6 % 0.0 % 4.3 % Other collaborative agreements 11.6 % 6.5 % 0.2 % Total percentage of accounts receivable 100.0 % 100.0 % 100.0 % |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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 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 Fair Value Measurements at December 31, 2014 Balance Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Money market funds 1 $ 143,913 $ 143,913 $ 0 $ 0 Liabilities: Warrant derivative liabilities 2 $ 474 $ 0 $ 474 $ 0 (1) Included in cash and cash equivalents on our consolidated balance sheets. (2) The warrant expired pursuant to its terms in August 2015. See Note 9. |
Inventory (Tables)
Inventory (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Components of Inventory | Inventory consisted of the following, in thousands: December 31, 2015 2014 Raw materials $ 2,487 $ 1,167 Work in process 2,781 3,520 Finished goods at Arena GmbH 165 3,681 Finished goods at Eisai 3,309 2,463 Finished goods at Ildong 760 0 Total inventory $ 9,502 $ 10,831 |
Land, Property and Equipment (T
Land, Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Land, Property and Equipment | Land, property and equipment consisted of the following, in thousands: December 31, 2015 2014 Land $ 8,131 $ 11,339 Building and capital improvements 74,663 74,629 Leasehold improvements 18,025 17,984 Machinery and equipment 53,790 53,247 Computers and software 15,893 15,363 Furniture and office equipment 2,227 2,376 172,729 174,938 Less accumulated depreciation and amortization (100,901 ) (92,019 ) Land, property and equipment, net $ 71,828 $ 82,919 |
Intangibles (Tables)
Intangibles (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangibles | Intangibles consisted of the following, in thousands: December 31, 2015 2014 Acquired manufacturing production licenses – gross $ 12,958 $ 13,049 Acquired manufacturing production licenses – accumulated amortization (5,183 ) (4,567 ) Intangibles, net $ 7,775 $ 8,482 |
Accounts Payable and Other Ac31
Accounts Payable and Other Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Other Accrued Liabilities | Accounts payable and other accrued liabilities consisted of the following, in thousands: December 31, 2015 2014 Accounts payable $ 2,078 $ 2,844 Accrued compensation 5,118 4,792 Accrued workforce reduction expenses 1,793 0 Other accrued liabilities 1,138 2,573 Total accounts payable and other accrued liabilities $ 10,127 $ 10,209 |
Commitments (Tables)
Commitments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Annual Future obligations | Annual future obligations at December 31, 2015 , are as follows, in thousands: Year ending December 31, Financing Obligations Operating Leases 2016 $ 8,499 $ 1,053 2017 9,494 1,146 2018 9,731 1,168 2019 8,053 1,191 2020 8,254 1,126 Thereafter 58,074 6,699 Total minimum lease payments 102,105 $ 12,383 Less amounts representing interest (43,850 ) Add amounts representing residual value 9,990 Lease financing obligations 68,245 Less current portion (2,978 ) $ 65,267 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Stock Option Activity | The following table summarizes our stock option activity under the Prior Plans and the 2013 LTIP, or collectively, our Equity Compensation Plans, for the year ended December 31, 2015 , in thousands (except per share data): Options Weighted- Average Exercise Price Weighted-Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding at December 31, 2014 15,831 $ 5.25 Granted 4,322 $ 3.69 Exercised (1,154 ) $ 1.92 Forfeited/cancelled/expired (2,592 ) $ 5.64 Outstanding at December 31, 2015 16,407 $ 5.01 4.44 $ 1,090 Vested and expected to vest at December 31, 2015 15,835 $ 5.04 4.37 $ 1,071 Vested and exercisable at December 31, 2015 10,206 $ 5.37 3.53 $ 906 |
Summary of Restricted Stock Activity | The following table summarizes activity with respect to our time-based RSUs under our Equity Compensation Plans for the year ended December 31, 2015 , in thousands (except per share data): RSUs Weighted-Average Grant-Date Fair Value Aggregate Intrinsic Value Unvested at December 31, 2014 456 $ 5.72 Granted 281 $ 4.11 Vested (384 ) $ 5.47 Forfeited/cancelled (80 ) $ 4.88 Unvested at December 31, 2015 273 $ 4.67 Outstanding at December 31, 2015 810 $ 5.80 $ 4,698 |
Assumptions and Estimated Fair Value of Options | The table below sets forth the weighted-average assumptions and estimated fair value of stock options we granted under our Equity Compensation Plans during the years presented: Years ended December 31, 2015 2014 2013 Risk-free interest rate 1.8 % 1.8 % 1.3 % Dividend yield 0 % 0 % 0 % Expected volatility 80 % 81 % 80 % Expected life (years) P6Y1M2D 6.17 6.24 Weighted-average estimated fair value per share of stock options granted $ 2.55 $ 4.37 $ 5.25 |
Assumptions and Estimated Fair Value of Options to Purchase Stock granted Under Employee Stock Purchase Plan | The table below sets forth the assumptions and estimated fair value of the options to purchase stock granted under our employee stock purchase plan for multiple offering periods during the years presented: Years ended December 31, 2015 2014 2013 Risk-free interest rate 0.0% - 1.0% 0.0% - 0.6% 0.0% - 0.5% Dividend yield 0% 0% 0% Expected volatility 52% - 78% 53% - 81% 79% - 105% Expected life (years) .25 - 2.0 .25 - 2.0 .25 - 2.0 Range of fair value per share of options granted under employee stock purchase plan $0.78 to $2.94 $1.37 to $4.22 $0.90 to $5.44 |
Assumptions and Estimated Fair Value of Performance Restricted Stock Unit Awards | The table below sets forth the assumptions and estimated fair value of PRSU awards granted during the years presented: Years ended December 31, 2015 2014 2013 Risk-free interest rate 1.1 % 0.7 % 0.4 % Dividend yield 0 % 0 % 0 % Expected volatility 75 % 78 % 89 % Performance period (years) 2.97 2.99 2.99 Estimated fair value per share of PRSUs granted $ 4.50 $ 7.16 $ 7.50 |
Share Based Compensation Expense | We recognized share-based compensation expense as follows for the years presented, in thousands, except per share data: Years ended December 31, 2015 2014 2013 Cost of product sales $ 29 $ 0 $ 17 Research and development 7,582 7,118 4,318 General and administrative 6,710 6,391 4,689 Restructuring charges 142 0 0 Total share-based compensation expense and impact on net loss $ 14,463 $ 13,509 $ 9,024 Impact on net loss per share, basic and diluted $ 0.06 $ 0.06 $ 0.04 Total share-based compensation capitalized into inventory $ 173 $ 81 $ 75 |
Total Unrecognized Estimated Compensation Expense | The table below sets forth our total unrecognized estimated compensation expense at December 31, 2015 , by type of award and the weighted-average remaining requisite service period over which such expense is expected to be recognized: Unrecognized Expense (in thousands) Remaining Weighted-Average Recognition Period (in years) Unvested stock options $ 12,660 2.47 RSUs 1,199 1.32 PRSUs 2,735 1.04 |
Shares of Common Stock Reserved for Future Issuance | The following shares of our common stock are reserved for future issuance at December 31, 2015 , in thousands: Equity Compensation Plans 40,537 2009 ESPP 1,257 Deferred compensation plan 79 Total 41,873 |
Collaborations (Tables)
Collaborations (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Revenues Recognized under Eisai Agreement | The following table summarizes the revenues we recognized under our collaboration with Eisai for the periods presented, in thousands: Years ended December 31, From Inception Through December 31, 2015 2015 2014 2013 Net product sales $ 14,236 $ 15,983 $ 5,702 $ 35,921 Amortization of upfront payments 7,541 7,630 4,035 28,067 Reimbursement of development expenses 1,538 10,037 2,020 16,958 Milestone payments 0 500 66,000 86,500 Reimbursement of patent and trademark expenses 426 444 361 1,318 Subtotal other Eisai collaborative revenue 9,505 18,611 72,416 132,843 Total $ 23,741 $ 34,594 $ 78,118 $ 168,764 |
Deferred Revenues Attributable to Eisai | The following table summarizes the deferred revenues under our collaboration with Eisai, in thousands: December 31, 2015 2014 Upfront payments $ 86,933 $ 94,474 Net product sales 10,754 7,081 Total deferred revenues attributable to Eisai 97,687 101,555 Less current portion (18,295 ) (14,622 ) Deferred revenues attributable to Eisai, less current portion $ 79,392 $ 86,933 |
Summary of Cost Sharing Allocation | The chart below 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 lorcaserin at such party’s own expense. For the years ended December 31, 2015 , 2014 , and 2013 , we recognized expenses of $16.2 million , $35.3 million and $11.7 million , respectively, for external clinical study fees related to lorcaserin and internal non-commercial manufacturing costs primarily related to lorcaserin. Cost Sharing for Development with Eisai United States Rest of North and South America Remaining Territories BELVIQ - Pre-approval* Not Applicable General Eisai: 90%; Arena: 10% Certain stability work Eisai: 50%; Arena: 50% Up to total of $100.0 million** Eisai: 50%; Arena: 50% Thereafter, Eisai: 100% BELVIQ - Post-approval* General Eisai: 90%; Arena 10% Non-FDA required portion of CVOT Up to $80.0 million - Eisai: 50%; Arena: 50% Thereafter, Eisai: 100% Certain pediatric studies Eisai: 50%; Arena: 50% General Eisai: 90%; Arena: 10% Certain stability work Eisai: 50%; Arena: 50% Up to total of $50.0 million - Eisai: 50%; Arena: 50% Thereafter, Eisai: 90%; Arena: 10% Lorcaserin products other than BELVIQ - Pre-approval Up to a total of $250.0 million (as reduced by up to $80.0 million for non-FDA required portion of CVOT)** - Eisai: 50%; Arena: 50% Lorcaserin products other than BELVIQ - Post-approval Up to a total of $100.0 million in the aggregate across all additional products - Eisai: 50%; Arena: 50% Thereafter, Eisai: 90%; Arena: 10% ______________________ * Development required by a regulatory authority, with the exception of the non-FDA required portion of the CVOT. ** Under the collaborative agreement, the amount for BELVIQ pre-approval in the Remaining Territories was decreased and the amount for lorcaserin products other than BELVIQ pre-approval was increased by such amount. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Summary of Loss Before Provision (Benefit) for Income Taxes by Region | The following table summarizes our loss before benefit for income taxes by region for the years presented, in thousands: Years ended December 31, 2015 2014 2013 United States $ (64,109 ) $ (16,607 ) $ 11,573 Foreign (43,870 ) (43,901 ) (31,008 ) Total loss before income taxes $ (107,979 ) $ (60,508 ) $ (19,435 ) |
Reconciliation of Provision (Benefit) for Income Taxes at Statutory Federal Rate to Provision (Benefit) for Income Taxes | Our effective income tax rate differs from the statutory Federal rate of 34% for the years presented due to the following, in thousands: Years ended December 31, 2015 2014 2013 Benefit for income taxes at statutory Federal rate $ (36,713 ) $ (20,573 ) $ (6,608 ) State income tax, net of Federal benefit and valuation allowance 0 0 0 Permanent differences and other 4,190 2,318 2,122 Gain from valuation of derivative liabilities (162 ) (1,507 ) (3,922 ) Foreign losses at lower effective rates 15,041 13,318 9,527 Research and development and Orphan Drug credits (3,666 ) (2,992 ) (2,594 ) Adjustment to research and development credits and net operating losses, or NOLs 0 0 (59,790 ) Change in Federal and foreign valuation allowance 21,310 9,436 61,265 Benefit for income taxes $ 0 $ 0 $ 0 |
Components of Net Deferred Tax Assets | The components of our net deferred tax assets are as follows, in thousands: December 31, 2015 2014 Deferred tax assets: Foreign NOL carryforwards $ 7,060 $ 9,518 Federal and California NOL carryforwards 236,334 216,906 Federal and California research and development credit carryforwards 48,768 44,022 Deferred revenues 33,548 36,448 Depreciation 4,475 3,714 Share-based compensation expense 10,737 8,549 Other, net 3,578 4,011 Total deferred tax assets 344,500 323,168 Deferred tax liabilities (660 ) (767 ) Net deferred tax assets 343,840 322,401 Valuation allowance (343,840 ) (322,401 ) Net deferred tax liabilities $ 0 $ 0 |
Reconciliation of Unrecognized Tax Benefits | The following table reconciles the beginning and ending amount of unrecognized tax benefits for the years presented, in thousands: Years ended December 31, 2015 2014 2013 Gross unrecognized tax benefits at the beginning of the year $ 5,214 $ 4,629 $ 0 Additions from tax positions taken in the current year 405 585 541 Additions from tax positions taken in prior years 0 0 4,088 Reductions from tax positions taken in prior years 0 0 0 Tax settlements 0 0 0 Gross unrecognized tax benefits at end of the year $ 5,619 $ 5,214 $ 4,629 |
Quarterly Financial Data (Una36
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Data | The following tables present quarterly data for the years presented, in thousands, except per share data: 2015 Quarter ended December 31 Quarter ended September 30 Quarter ended June 30 Quarter ended March 31 Year ended December 31 Revenues $ 7,751 $ 9,138 $ 9,181 $ 12,256 $ 38,326 Operating costs and expenses $ 37,045 $ 34,319 $ 36,160 $ 34,000 $ 141,524 Net loss $ (30,459 ) $ (26,418 ) $ (26,807 ) $ (24,295 ) $ (107,979 ) Net loss per share, basic and diluted $ (0.13 ) $ (0.11 ) $ (0.11 ) $ (0.10 ) $ (0.45 ) 2014 Quarter ended December 31 Quarter ended September 30 Quarter ended June 30 Quarter ended March 31 Year ended December 31 Revenues $ 9,191 $ 8,164 $ 12,801 $ 6,814 $ 36,970 Operating costs and expenses $ 39,351 $ 34,373 $ 38,167 $ 30,352 $ 142,243 Net loss $ (32,061 ) $ (10,672 ) $ 7,480 $ (25,255 ) $ (60,508 ) Net loss per share, basic and diluted $ (0.15 ) $ (0.05 ) $ 0.03 $ (0.12 ) $ (0.28 ) |
The Company and Summary of Si37
The Company and Summary of Significant Accounting Policies - Additional Information (Detail) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015USD ($)Segment | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Schedule Of Significant Accounting Policies [Line Items] | |||
Number of business segments | Segment | 1 | ||
Intangible assets, estimated useful life | 20 years | ||
Foreign currency transaction gain (loss) | $ 2 | $ (2.2) | $ 0.3 |
Weighted average volatility | 75.00% | ||
UNITED STATES | |||
Schedule Of Significant Accounting Policies [Line Items] | |||
Long-lived assets | $ 41.5 | 49 | |
SWITZERLAND | |||
Schedule Of Significant Accounting Policies [Line Items] | |||
Long-lived assets | $ 38.1 | $ 42.4 | |
Building | |||
Schedule Of Significant Accounting Policies [Line Items] | |||
Property and equipment, estimated useful life | 20 years | ||
Minimum | |||
Schedule Of Significant Accounting Policies [Line Items] | |||
Property and equipment, estimated useful life | 3 years | ||
Maximum | |||
Schedule Of Significant Accounting Policies [Line Items] | |||
Property and equipment, estimated useful life | 15 years |
The Company and Summary of Si38
The Company and Summary of Significant Accounting Policies - Percentages of Total Revenues (Detail) - Sales Revenue, Net | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Concentration Risk [Line Items] | |||
Percentage of revenues | 100.00% | 100.00% | 100.00% |
Eisai Agreement (See Note 12) | |||
Concentration Risk [Line Items] | |||
Percentage of revenues | 61.90% | 93.60% | 96.00% |
Ildong Agreement (See Note 12) | |||
Concentration Risk [Line Items] | |||
Percentage of revenues | 23.20% | 1.00% | 0.60% |
Toll manufacturing agreements | |||
Concentration Risk [Line Items] | |||
Percentage of revenues | 11.10% | 4.00% | 3.30% |
Other collaborative agreements | |||
Concentration Risk [Line Items] | |||
Percentage of revenues | 3.80% | 1.40% | 0.10% |
The Company and Summary of Si39
The Company and Summary of Significant Accounting Policies - Percentages of Total Accounts Receivable (Detail) - Accounts Receivable | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Concentration Risk [Line Items] | |||
Percentage of accounts receivable | 100.00% | 100.00% | 100.00% |
Eisai Agreement (See Note 12) | |||
Concentration Risk [Line Items] | |||
Percentage of accounts receivable | 77.50% | 93.10% | 94.50% |
Ildong Agreement (See Note 12) | |||
Concentration Risk [Line Items] | |||
Percentage of accounts receivable | 1.30% | 0.40% | 1.00% |
Toll manufacturing agreements | |||
Concentration Risk [Line Items] | |||
Percentage of accounts receivable | 9.60% | 0.00% | 4.30% |
Other collaborative agreements | |||
Concentration Risk [Line Items] | |||
Percentage of accounts receivable | 11.60% | 6.50% | 0.20% |
The Company and Summary of Si40
The Company and Summary of Significant Accounting Policies - Potentially Dilutive Securities Excluded From Calculation of Diluted Net Loss Per Share (Detail) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total antidilutive securities (shares) excluded from calculation of diluted net loss per share | 17,596 | 16,376 | 15,517 |
Stock options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total antidilutive securities (shares) excluded from calculation of diluted net loss per share | 17,030 | 15,530 | 14,435 |
Warrants | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total antidilutive securities (shares) excluded from calculation of diluted net loss per share | 19 | 370 | 776 |
RSUs and unvested restricted stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total antidilutive securities (shares) excluded from calculation of diluted net loss per share | 547 | 476 | 306 |
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 | Dec. 31, 2015 | Dec. 31, 2014 |
Assets: | ||
Money market funds | $ 113,080 | $ 143,913 |
Liabilities: | ||
Warrant derivative liabilities2 | 474 | |
Quoted Prices in Active Markets (Level 1) | ||
Assets: | ||
Money market funds | 113,080 | 143,913 |
Liabilities: | ||
Warrant derivative liabilities2 | 0 | |
Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Money market funds | 0 | 0 |
Liabilities: | ||
Warrant derivative liabilities2 | 474 | |
Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Money market funds | $ 0 | 0 |
Liabilities: | ||
Warrant derivative liabilities2 | $ 0 |
Short-term Investments, Avail42
Short-term Investments, Available-for-Sale - Additional Information (Detail) - TaiGen Biotechnology Co., Ltd. - USD ($) shares in Millions | 12 Months Ended | ||
Dec. 31, 2014 | Jan. 17, 2014 | Dec. 31, 2011 | |
Investment Holdings [Line Items] | |||
Equity investment | $ 0 | ||
Investment, number of shares | 29.6 | ||
Investment, fair value | $ 49,100,000 | ||
Realized gains from sale of shares | $ 49,600,000 |
Inventory - Components of Inven
Inventory - Components of Inventory (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Inventory [Line Items] | ||
Raw materials | $ 2,487 | $ 1,167 |
Work in process | 2,781 | 3,520 |
Total inventory | 9,502 | 10,831 |
Arena GmbH | ||
Inventory [Line Items] | ||
Finished goods | 165 | 3,681 |
Eisai | ||
Inventory [Line Items] | ||
Finished goods | 3,309 | 2,463 |
lldong BELVIQ | ||
Inventory [Line Items] | ||
Finished goods | $ 760 | $ 0 |
Land, Property and Equipment (D
Land, Property and Equipment (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment [Line Items] | ||
Land, property and equipment, gross | $ 172,729 | $ 174,938 |
Less accumulated depreciation and amortization | (100,901) | (92,019) |
Land, property and equipment, net | 71,828 | 82,919 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Land, property and equipment, gross | 8,131 | 11,339 |
Building and capital improvements | ||
Property, Plant and Equipment [Line Items] | ||
Land, property and equipment, gross | 74,663 | 74,629 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Land, property and equipment, gross | 18,025 | 17,984 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Land, property and equipment, gross | 53,790 | 53,247 |
Computers and software | ||
Property, Plant and Equipment [Line Items] | ||
Land, property and equipment, gross | 15,893 | 15,363 |
Furniture and office equipment | ||
Property, Plant and Equipment [Line Items] | ||
Land, property and equipment, gross | $ 2,227 | $ 2,376 |
Intangibles (Detail)
Intangibles (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Acquired manufacturing production licenses – gross | $ 12,958 | $ 13,049 |
Acquired manufacturing production licenses – accumulated amortization | (5,183) | (4,567) |
Intangibles, net | $ 7,775 | $ 8,482 |
Intangibles - Additional Inform
Intangibles - Additional Information (Detail) $ in Millions | Dec. 31, 2015USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Expected annual amortization expense next year | $ 0.6 |
Expected annual amortization expense year two | 0.6 |
Expected annual amortization expense year three | 0.6 |
Expected annual amortization expense year four | 0.6 |
Expected annual amortization expense year five | 0.6 |
Expected annual amortization expense years six through twelve | $ 0.6 |
Accounts Payable and Other Ac47
Accounts Payable and Other Accrued Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Payables and Accruals [Abstract] | ||
Accounts payable | $ 2,078 | $ 2,844 |
Accrued compensation | 5,118 | 4,792 |
Accrued workforce reduction expenses | 1,793 | 0 |
Other accrued liabilities | 1,138 | 2,573 |
Total accounts payable and other accrued liabilities | $ 10,127 | $ 10,209 |
Agreements with Siegfried - Add
Agreements with Siegfried - Additional Information (Detail) ft² in Thousands, SFr in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | ||||
Jul. 31, 2014CHF (SFr) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Jul. 31, 2015CHF (SFr) | Jan. 31, 2008CHF (SFr)ft² | |
Contractors [Abstract] | ||||||
Expenses incurred under technical services agreement | $ | $ 1.3 | $ 2.5 | $ 2.8 | |||
Asset purchase agreement, area of building acquired (square feet) | ft² | 67 | |||||
Asset purchase agreement, total area of building (square feet) | ft² | 134 | |||||
Company's optional purchase price of remaining portion of the building | SFr 15 | |||||
Seller's optional selling price of remaining portion of the building | SFr 8 | |||||
Real estate property purchase price | SFr 8.2 | |||||
Cash payment date | 2015-07 | |||||
Lease agreement, expiration date | Dec. 31, 2016 | |||||
Annual base rent amount | SFr 0.4 | |||||
Termination notice | 6 months | |||||
Extended lease expiration date | Dec. 31, 2019 | |||||
Early termination date lessor option | Dec. 31, 2017 |
Derivative Liabilities - Additi
Derivative Liabilities - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | |||
Jun. 30, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Aug. 31, 2008 | Jun. 30, 2006 | |
Derivative [Line Items] | |||||
Issuance of warrant to purchase stock, number of shares | 1,106,344 | 829,856 | |||
Original exercise price of warrant ($ per share) | $ 7.71 | $ 15.49 | |||
Number of shares of common stock into which expired warrant could have been converted | 10,000 | ||||
Net proceeds from exercise of warrant to purchase stock | $ 0.1 | ||||
Deerfield Acceleration Right | |||||
Derivative [Line Items] | |||||
Fair value of embedded liabilities | $ 0.5 | ||||
Warrants | |||||
Derivative [Line Items] | |||||
Term of instrument | 7 years |
Commitments - Additional Inform
Commitments - Additional Information (Detail) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($)Property | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Commitments [Line Items] | |||
Number of properties under sale and leaseback agreements | Property | 4 | ||
Sale and leaseback transaction, interest expense | $ 6,700 | $ 6,900 | $ 7,100 |
Less amounts representing interest | 43,850 | ||
Sale and leaseback transaction, total financing obligation | 68,245 | ||
Add amounts representing residual value | 9,990 | ||
Deposits related to leases | 800 | 1,400 | |
Rent expense | $ 1,100 | $ 1,100 | $ 1,100 |
Minimum | |||
Commitments [Line Items] | |||
Sale and leaseback transaction optional repurchase date, year | 2,017 | ||
Maximum | |||
Commitments [Line Items] | |||
Sale and leaseback transaction optional repurchase date, year | 2,027 | ||
Properties under sale and leaseback agreements | |||
Commitments [Line Items] | |||
Percentage of annual increase in monthly rental payments | 2.50% | ||
Properties under operating lease | SWITZERLAND | |||
Commitments [Line Items] | |||
Lease termination period | 12 months | ||
Operating lease agreement expiration year | 2,032 | ||
Operating lease agreement expiration date | 2020-08 | ||
Properties under operating lease | UNITED STATES | |||
Commitments [Line Items] | |||
Percentage of annual increase in monthly rental payments | 2.50% | ||
Operating lease agreement expiration date | 2027-05 |
Commitments - Annual Future Obl
Commitments - Annual Future Obligations (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Financing Obligations | ||
2,016 | $ 8,499 | |
2,017 | 9,494 | |
2,018 | 9,731 | |
2,019 | 8,053 | |
2,020 | 8,254 | |
Thereafter | 58,074 | |
Total minimum lease payments | 102,105 | |
Less amounts representing interest | (43,850) | |
Add amounts representing residual value | 9,990 | |
Lease financing obligations | 68,245 | |
Current portion of lease financing obligations | (2,978) | $ (2,492) |
Lease financing obligations, less current portion | 65,267 | $ 68,245 |
Operating Leases | ||
2,016 | 1,053 | |
2,017 | 1,146 | |
2,018 | 1,168 | |
2,019 | 1,191 | |
2,020 | 1,126 | |
Thereafter | 6,699 | |
Total minimum lease payments | $ 12,383 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | ||||||
Jun. 30, 2015shares | Mar. 31, 2015USD ($)shares | Mar. 31, 2014USD ($)shares | Mar. 31, 2013USD ($)shares | Dec. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2014USD ($)$ / sharesshares | Dec. 31, 2013USD ($)$ / sharesshares | Jun. 10, 2013shares | |
Stockholders Equity [Line Items] | ||||||||
Common stock closing price ($ per share) | $ / shares | $ 1.90 | |||||||
Intrinsic value of stock options exercised | $ | $ 2.2 | $ 2.7 | $ 4.6 | |||||
Proceeds from stock option exercises | $ | $ 2.2 | |||||||
Number of shares available for issuance | 1,256,585 | |||||||
Common stock issued under employee stock purchase plan (shares) | 327,950 | 304,085 | 334,360 | |||||
RSUs | ||||||||
Stockholders Equity [Line Items] | ||||||||
RSUs and restricted stock unvested (shares) | 273,000 | 456,000 | ||||||
Units granted (shares) | 281,000 | |||||||
Total fair value of RSUs vested | $ | $ 2.1 | $ 1.8 | $ 0.9 | |||||
Estimated fair value per share of PRSUs granted ($ per share) | $ / shares | $ 4.11 | $ 5.23 | $ 6.91 | |||||
RSUs | Non Employee Directors | ||||||||
Stockholders Equity [Line Items] | ||||||||
Vesting period | 1 year | |||||||
Units granted (shares) | 281,015 | |||||||
Conversion to underlying common shares description | Convert to the underlying common shares at the earliest of (i) the three-year anniversary of the grant date, (ii) the director’s separation from service or (iii) a change in control of Arena | |||||||
PRSUs | ||||||||
Stockholders Equity [Line Items] | ||||||||
Vesting period | 3 years | |||||||
Units granted (shares) | 745,000 | 695,000 | 780,000 | |||||
Estimated fair value per share of PRSUs granted ($ per share) | $ / shares | $ 4.50 | $ 7.16 | $ 7.50 | |||||
Multiplier of grant-date fair value for cap on number of PRSUs that may be granted | 6 | |||||||
Cap on percentage of funding if the absolute 3-year TSR is negative | 100.00% | |||||||
PRSU grant-date fair value | $ | $ 3.4 | $ 5 | $ 5.9 | |||||
PRSUs | Share-based Compensation Award, Tranche One | Share Based Compensation | ||||||||
Stockholders Equity [Line Items] | ||||||||
Units granted (shares) | 276,389 | 169,445 | 113,334 | |||||
PRSUs | Minimum | ||||||||
Stockholders Equity [Line Items] | ||||||||
Number of shares to be awarded as a percentage of target amounts | 0.00% | |||||||
PRSUs | Maximum | ||||||||
Stockholders Equity [Line Items] | ||||||||
Number of shares to be awarded as a percentage of target amounts | 200.00% | |||||||
Deferred compensation plan | ||||||||
Stockholders Equity [Line Items] | ||||||||
RSUs and restricted stock unvested (shares) | 79,169 | 79,169 | 79,169 | |||||
Long Term Incentive Plan Twenty Thirteen | ||||||||
Stockholders Equity [Line Items] | ||||||||
Number of shares authorized | 30,000,000 | |||||||
Stock options exercisable period | 7 years | |||||||
Long Term Incentive Plan Twenty Thirteen | Stock Options And Stock Appreciation Rights | ||||||||
Stockholders Equity [Line Items] | ||||||||
Reduction in number of shares available for grant for every share issued | 1 | |||||||
Increase in number of shares available for grant for every share released | 1 | |||||||
Long Term Incentive Plan Twenty Thirteen | Other Than Stock Options And Stock Appreciation Rights | ||||||||
Stockholders Equity [Line Items] | ||||||||
Reduction in number of shares available for grant for every share issued | 1.25 | |||||||
Increase in number of shares available for grant for every share released | 1.25 | |||||||
Long Term Incentive Plan Twenty Thirteen | Unvested stock options | ||||||||
Stockholders Equity [Line Items] | ||||||||
Vesting percentage | 25.00% | |||||||
Vesting period | 4 years | |||||||
Long Term Incentive Plan Twenty Thirteen | RSUs | Minimum | ||||||||
Stockholders Equity [Line Items] | ||||||||
Vesting period | 1 year | |||||||
Long Term Incentive Plan Twenty Thirteen | RSUs | Maximum | ||||||||
Stockholders Equity [Line Items] | ||||||||
Vesting period | 4 years | |||||||
Long Term Incentive Plan Twenty Thirteen | PRSUs | Minimum | ||||||||
Stockholders Equity [Line Items] | ||||||||
Vesting period | 12 months | |||||||
Long Term Incentive Plan Twenty Thirteen | Stock Options and Stock Appreciation Rights (SARs) | Minimum | ||||||||
Stockholders Equity [Line Items] | ||||||||
Purchase price of common shares as a percentage of fair market value | 100.00% | |||||||
2009 ESPP | ||||||||
Stockholders Equity [Line Items] | ||||||||
Proceeds from stock issued under employee stock purchase plans | $ | $ 0.8 | |||||||
Maximum Percentage of Annual Compensation contributable to ESPP | 15.00% | |||||||
Maximum number of shares allowed to purchase per PURCHASE period | 625 | |||||||
Maximum ESPP offering period | 24 months | |||||||
2009 ESPP | Minimum | ||||||||
Stockholders Equity [Line Items] | ||||||||
Purchase price of common shares as a percentage of fair market value | 85.00% |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Stock Option Activity (Detail) - Unvested stock options $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($)$ / sharesshares | |
Number of stock options | |
Outstanding at December 31, 2014 | shares | 15,831 |
Granted | shares | 4,322 |
Exercised | shares | (1,154) |
Forfeited/cancelled/expired | shares | (2,592) |
Outstanding at December 31, 2015 | shares | 16,407 |
Vested and expected to vest at December 31, 2015 | shares | 15,835 |
Vested and exercisable at December 31, 2015 | shares | 10,206 |
Weighted Average Exercise Price ($ per share) | |
Outstanding at December 31, 2014 | $ / shares | $ 5.25 |
Granted | $ / shares | 3.69 |
Exercised | $ / shares | 1.92 |
Forfeited/cancelled/expired | $ / shares | 5.64 |
Outstanding at December 31, 2015 | $ / shares | 5.01 |
Vested and expected to vest at December 31, 2015 | $ / shares | 5.04 |
Vested and exercisable at December 31, 2015 | $ / shares | $ 5.37 |
Weighted-Average Remaining Contractual Term (in years) | |
Outstanding at December 31, 2015 | 4 years 5 months 9 days |
Vested and expected to vest at December 31, 2015 | 4 years 4 months 13 days |
Vested and exercisable at December 31, 2015 | 3 years 6 months 11 days |
Aggregate Intrinsic Value | |
Outstanding at December 31, 2015 | $ | $ 1,090 |
Vested and expected to vest at December 31, 2015 | $ | 1,071 |
Vested and exercisable at December 31, 2015 | $ | $ 906 |
Stockholders' Equity - Summar54
Stockholders' Equity - Summary of Restricted Stock Units Activity (Detail) - RSUs - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Restricted Stock Units (shares) | |||
Unvested at December 31, 2014 | 456 | ||
Granted | 281 | ||
Vested | (384) | ||
Forfeited/cancelled | (80) | ||
Unvested at December 31, 2015 | 273 | 456 | |
Outstanding at December 31, 2015 | 810 | ||
Weighted-Average Grant-Date Fair Value ($ per share) | |||
Unvested at December 31, 2014 | $ 5.72 | ||
Granted | 4.11 | $ 5.23 | $ 6.91 |
Vested | 5.47 | ||
Forfeited/cancelled | 4.88 | ||
Unvested at December 31, 2015 | 4.67 | $ 5.72 | |
Outstanding at December 31, 2015 | $ 5.80 | ||
Aggregate Intrinsic Value | |||
Outstanding at December 31, 2015 | $ 4,698 |
Stockholders' Equity - Weighted
Stockholders' Equity - Weighted-Average Assumptions and Estimated Fair Value of Stock Options (Detail) - Unvested stock options - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 1.80% | 1.80% | 1.30% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Expected volatility | 80.00% | 81.00% | 80.00% |
Expected life (years) | 6 years 1 month 2 days | 6 years 2 months 1 day | 6 years 2 months 27 days |
Weighted-average estimated fair value ($ per share) of stock options granted | $ 2.55 | $ 4.37 | $ 5.25 |
Stockholders' Equity - Assumpti
Stockholders' Equity - Assumptions and Estimated Fair Value of Options (Detail) - 2009 ESPP - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate Minimum | 0.00% | 0.00% | 0.00% |
Risk-free interest rate Maximum | 1.00% | 0.60% | 0.50% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Expected volatility Minimum | 52.00% | 53.00% | 79.00% |
Expected volatility Maximum | 78.00% | 81.00% | 105.00% |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected life (years) | 3 months | 3 months | 3 months |
Range of fair value ($ per share) of options granted under our employee stock purchase plans | $ 0.78 | $ 1.37 | $ 0.90 |
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected life (years) | 2 years | 2 years | 2 years |
Range of fair value ($ per share) of options granted under our employee stock purchase plans | $ 2.94 | $ 4.22 | $ 5.44 |
Stockholders' Equity - Assump57
Stockholders' Equity - Assumptions and Estimated Fair Value of Performance Restricted Stock Unit Awards (Detail) - PRSUs - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 1.10% | 0.70% | 0.40% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Expected volatility | 75.00% | 78.00% | 89.00% |
Performance period (years) | 2 years 11 months 19 days | 2 years 11 months 27 days | 2 years 11 months 27 days |
Estimated fair value per share of PRSUs granted ($ per share) | $ 4.50 | $ 7.16 | $ 7.50 |
Stockholders' Equity - Share Ba
Stockholders' Equity - Share Based Compensation Expense (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 14,463 | $ 13,509 | $ 9,024 |
Impact on net loss per share, basic and diluted ($ per share) | $ 0.06 | $ 0.06 | $ 0.04 |
Total share-based compensation capitalized into inventory | $ 173 | $ 81 | $ 75 |
Cost of product sales | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 29 | 0 | 17 |
Research and development | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 7,582 | 7,118 | 4,318 |
General and administrative | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 6,710 | 6,391 | 4,689 |
Restructuring Charges [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 142 | $ 0 | $ 0 |
Stockholders' Equity - Total Un
Stockholders' Equity - Total Unrecognized Estimated Compensation Expense (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Unvested stock options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Expense (in thousands) | $ 12,660 |
Remaining Weighted-Average Recognition Period (in years) | 2 years 5 months 19 days |
RSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Expense (in thousands) | $ 1,199 |
Remaining Weighted-Average Recognition Period (in years) | 1 year 3 months 26 days |
PRSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Expense (in thousands) | $ 2,735 |
Remaining Weighted-Average Recognition Period (in years) | 1 year 15 days |
Stockholders' Equity - Common S
Stockholders' Equity - Common Stock Reserved for Future Issuance (Detail) shares in Thousands | Dec. 31, 2015shares |
Class of Stock [Line Items] | |
Common stock shares reserved for future issuance | 41,873 |
Equity Compensation Plans | |
Class of Stock [Line Items] | |
Common stock shares reserved for future issuance | 40,537 |
2009 ESPP | |
Class of Stock [Line Items] | |
Common stock shares reserved for future issuance | 1,257 |
Deferred compensation plan | |
Class of Stock [Line Items] | |
Common stock shares reserved for future issuance | 79 |
Collaborations - Additional Inf
Collaborations - Additional Information (Detail) | 1 Months Ended | 3 Months Ended | 12 Months Ended | 66 Months Ended | |||||||||||||||||||
Jan. 31, 2016USD ($) | May. 31, 2015USD ($) | Mar. 31, 2015USD ($) | Jan. 31, 2015$ / prescription | Jul. 31, 2014USD ($) | Nov. 30, 2013USD ($) | Nov. 30, 2013USD ($) | Jul. 31, 2013USD ($) | Nov. 30, 2012USD ($) | May. 31, 2012USD ($) | Jul. 31, 2010USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Sep. 30, 2014USD ($) | Jun. 30, 2014USD ($) | Mar. 31, 2014USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2015USD ($) | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||||||||||||||||||
Payable to Eisai | $ 12,080,000 | $ 23,705,000 | $ 12,080,000 | $ 23,705,000 | $ 12,080,000 | ||||||||||||||||||
Current portion of deferred revenues | 21,425,000 | 15,238,000 | 21,425,000 | 15,238,000 | 21,425,000 | ||||||||||||||||||
Deferred revenues, less current portion | 87,617,000 | 93,064,000 | 87,617,000 | 93,064,000 | 87,617,000 | ||||||||||||||||||
Net product sales | 19,726,000 | 15,983,000 | $ 5,702,000 | ||||||||||||||||||||
Total revenues | 7,751,000 | $ 9,138,000 | $ 9,181,000 | $ 12,256,000 | 9,191,000 | $ 8,164,000 | $ 12,801,000 | $ 6,814,000 | 38,326,000 | 36,970,000 | 81,394,000 | ||||||||||||
Eisai | |||||||||||||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||||||||||||||||||
Recognized milestone revenue | 0 | 500,000 | 66,000,000 | 86,500,000 | |||||||||||||||||||
Payable to Eisai | 12,100,000 | 12,100,000 | 12,100,000 | ||||||||||||||||||||
Current portion of deferred revenues | 18,295,000 | 14,622,000 | 18,295,000 | 14,622,000 | 18,295,000 | ||||||||||||||||||
Deferred revenues, less current portion | 79,392,000 | $ 86,933,000 | 79,392,000 | 86,933,000 | 79,392,000 | ||||||||||||||||||
Amortization of upfront payments | 7,541,000 | 7,630,000 | 4,035,000 | 28,067,000 | |||||||||||||||||||
Net product sales | $ 14,236,000 | 15,983,000 | 5,702,000 | 35,921,000 | |||||||||||||||||||
Expiration period after first commercial sale of BELVIQ | 12 years | ||||||||||||||||||||||
Total revenues | $ 23,741,000 | 34,594,000 | 78,118,000 | 168,764,000 | |||||||||||||||||||
Eisai | Maximum | |||||||||||||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||||||||||||||||||
Prescription cost | $ / prescription | 75 | ||||||||||||||||||||||
Eisai | Minimum | |||||||||||||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||||||||||||||||||
Copay threshold | $ / prescription | 50 | ||||||||||||||||||||||
Lorcaserin | |||||||||||||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||||||||||||||||||
Expenses incurred related to lorcaserin | 16,200,000 | 35,300,000 | 11,700,000 | ||||||||||||||||||||
lldong BELVIQ | |||||||||||||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||||||||||||||||||
Collaborative agreement upfront payments | $ 5,000,000 | ||||||||||||||||||||||
Collaborative agreement revenue recognition period | 14 years | ||||||||||||||||||||||
Recognized milestone revenue | $ 3,000,000 | ||||||||||||||||||||||
Purchase price range minimum | 35.00% | ||||||||||||||||||||||
Annual net product sales threshold for maximum purchase price | $ 15,000,000 | ||||||||||||||||||||||
Purchase price range maximum | 45.00% | ||||||||||||||||||||||
Current portion of deferred revenues | 400,000 | 400,000 | 400,000 | ||||||||||||||||||||
Deferred revenues, less current portion | 3,500,000 | 3,500,000 | 3,500,000 | ||||||||||||||||||||
Amortization of upfront payments | 8,900,000 | 400,000 | 500,000 | ||||||||||||||||||||
Net product sales | 5,500,000 | ||||||||||||||||||||||
CY Biotech Company Limited | |||||||||||||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||||||||||||||||||
Collaborative agreement upfront payments | $ 2,000,000 | ||||||||||||||||||||||
Collaborative agreement revenue recognition period | 14 years | ||||||||||||||||||||||
Amortization of upfront payments | 200,000 | 200,000 | $ 100,000 | ||||||||||||||||||||
TEVA Agreement | |||||||||||||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||||||||||||||||||
Collaborative agreement upfront payments | $ 500,000 | ||||||||||||||||||||||
Collaborative agreement revenue recognition period | 9 years | ||||||||||||||||||||||
Recognized milestone revenue | 250,000 | ||||||||||||||||||||||
Total revenues | 100,000 | $ 300,000 | |||||||||||||||||||||
Roivant | |||||||||||||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||||||||||||||||||
Collaborative agreement upfront payments | $ 4,000,000 | ||||||||||||||||||||||
Collaborative agreement revenue recognition period | 5 years | ||||||||||||||||||||||
Additional milestone payments on achievement | 41,500,000 | 41,500,000 | 41,500,000 | ||||||||||||||||||||
Amortization of upfront payments | 1,100,000 | ||||||||||||||||||||||
lldong Temanogrel | |||||||||||||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||||||||||||||||||
Additional milestone payments on achievement | 2,000,000 | 2,000,000 | 2,000,000 | ||||||||||||||||||||
Boehringer Ingelheim | |||||||||||||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||||||||||||||||||
Additional milestone payments on achievement | 254,385,416.7 | 254,385,416.7 | 254,385,416.7 | ||||||||||||||||||||
Boehringer Ingelheim | Subsequent Event | |||||||||||||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||||||||||||||||||
Collaborative agreement upfront payments | $ 7,500,000 | ||||||||||||||||||||||
Collaborative agreement revenue recognition period | 2 years | ||||||||||||||||||||||
UNITED STATES | Eisai | |||||||||||||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||||||||||||||||||
Purchase price range minimum | 31.50% | ||||||||||||||||||||||
Annual net product sales threshold for maximum purchase price | $ 750,000,000 | ||||||||||||||||||||||
UNITED STATES | Eisai | Maximum | |||||||||||||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||||||||||||||||||
Purchase price range minimum | 36.50% | ||||||||||||||||||||||
Non US Territories Other Than Europe, China and Japan | Eisai | |||||||||||||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||||||||||||||||||
Purchase price range minimum | 30.75% | ||||||||||||||||||||||
Annual net product sales threshold for maximum purchase price | $ 750,000,000 | ||||||||||||||||||||||
Non US Territories Other Than Europe, China and Japan | Eisai | Maximum | |||||||||||||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||||||||||||||||||
Purchase price range minimum | 35.75% | ||||||||||||||||||||||
Europe, China and Japan | Eisai | |||||||||||||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||||||||||||||||||
Purchase price range minimum | 27.50% | ||||||||||||||||||||||
Annual net product sales threshold for maximum purchase price | $ 500,000,000 | ||||||||||||||||||||||
Europe, China and Japan | Eisai | Maximum | |||||||||||||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||||||||||||||||||
Purchase price range minimum | 35.00% | ||||||||||||||||||||||
Original Agreement | |||||||||||||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||||||||||||||||||
Collaborative agreement initiation date | 2010-07 | ||||||||||||||||||||||
Collaborative agreement upfront payments | $ 50,000,000 | ||||||||||||||||||||||
Collaborative agreement revenue recognition period | 16 years | ||||||||||||||||||||||
Eisai First Amended Agreement | |||||||||||||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||||||||||||||||||
Collaborative agreement initiation date | 2012-05 | ||||||||||||||||||||||
Collaborative agreement upfront payments | $ 5,000,000 | ||||||||||||||||||||||
Collaborative agreement revenue recognition period | 15 years | ||||||||||||||||||||||
Eisai Second Amended Agreement | |||||||||||||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||||||||||||||||||
Collaborative agreement initiation date | 2013-11 | ||||||||||||||||||||||
Collaborative agreement upfront payments | $ 60,000,000 | ||||||||||||||||||||||
Collaborative agreement revenue recognition period | 15 years | ||||||||||||||||||||||
Recognized milestone revenue | 86,500,000 | ||||||||||||||||||||||
Additional milestone payments on achievement | 176,000,000 | 176,000,000 | 176,000,000 | ||||||||||||||||||||
Aggregate one-time purchase price adjustments | 1,560,000,000 | 1,560,000,000 | 1,560,000,000 | ||||||||||||||||||||
Eisai Second Amended Agreement | All Territories | |||||||||||||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||||||||||||||||||
Aggregate one-time purchase price adjustments | 1,190,000,000 | 1,190,000,000 | 1,190,000,000 | ||||||||||||||||||||
First annual net sales threshold to earn purchase price adjustments | $ 250,000,000 | ||||||||||||||||||||||
Last annual net sales threshold to earn purchase price adjustments | 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 | ||||||||||||||||||||||
Eisai Second Amended Agreement | All Non-US territories | |||||||||||||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||||||||||||||||||
Additional one-time purchase price adjustment payments | 370,000,000 | 370,000,000 | 370,000,000 | ||||||||||||||||||||
Eisai Second Amended Agreement | Non US Territories in North and South America | |||||||||||||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||||||||||||||||||
Additional one-time purchase price adjustment payments | 185,000,000 | 185,000,000 | 185,000,000 | ||||||||||||||||||||
First annual net sales threshold to earn purchase price adjustments outside of US | 100,000,000 | ||||||||||||||||||||||
Last annual net sales threshold to earn purchase price adjustments outside of US | 1,000,000,000 | ||||||||||||||||||||||
Eisai Second Amended Agreement | Territories Outside of North and South America | |||||||||||||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||||||||||||||||||
Additional one-time purchase price adjustment payments | $ 185,000,000 | $ 185,000,000 | $ 185,000,000 | ||||||||||||||||||||
First annual net sales threshold to earn purchase price adjustments outside of US | 100,000,000 | ||||||||||||||||||||||
Last annual net sales threshold to earn purchase price adjustments outside of US | $ 1,000,000,000 |
Collaborations - Revenues Recog
Collaborations - Revenues Recognized under Collaboration with Eisai (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | 66 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2015 | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||||
Net product sales | $ 19,726 | $ 15,983 | $ 5,702 | |||||||||
Total | $ 7,751 | $ 9,138 | $ 9,181 | $ 12,256 | $ 9,191 | $ 8,164 | $ 12,801 | $ 6,814 | 38,326 | 36,970 | 81,394 | |
Eisai | ||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||||
Net product sales | 14,236 | 15,983 | 5,702 | $ 35,921 | ||||||||
Amortization of upfront payments | 7,541 | 7,630 | 4,035 | 28,067 | ||||||||
Milestone payments | 0 | 500 | 66,000 | 86,500 | ||||||||
Subtotal other Eisai collaborative revenue | 9,505 | 18,611 | 72,416 | 132,843 | ||||||||
Total | 23,741 | 34,594 | 78,118 | 168,764 | ||||||||
Eisai | Research and development | ||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||||
Reimbursement of development expenses | 1,538 | 10,037 | 2,020 | 16,958 | ||||||||
Eisai | Reimbursement of patent and trademark expenses | ||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||||
Reimbursement of development expenses | 426 | 444 | 361 | $ 1,318 | ||||||||
CY Biotech Company Limited | ||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||||
Amortization of upfront payments | $ 200 | $ 200 | $ 100 |
Collaborations - Deferred Reven
Collaborations - Deferred Revenues under Collaboration with Eisai (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred Revenue Arrangement [Line Items] | ||
Less current portion | $ (21,425) | $ (15,238) |
Deferred revenues, less current portion | 87,617 | 93,064 |
Eisai | ||
Deferred Revenue Arrangement [Line Items] | ||
Total deferred revenues | 97,687 | 101,555 |
Less current portion | (18,295) | (14,622) |
Deferred revenues, less current portion | 79,392 | 86,933 |
Eisai | Upfront payments | ||
Deferred Revenue Arrangement [Line Items] | ||
Total deferred revenues | 86,933 | 94,474 |
Eisai | Net product sales | ||
Deferred Revenue Arrangement [Line Items] | ||
Total deferred revenues | $ 10,754 | $ 7,081 |
Collaborations - Summary of Cos
Collaborations - Summary of Cost Sharing Allocation (Detail) | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Belviq Product Pre Approval Up To One Hundred Million Dollars | Territories Outside of North and South America | Arena GmbH | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Aggregate expense cap on equal split of development expenses | $ 100,000,000 |
Portion of expenses | 50.00% |
Belviq Product Pre Approval Up To One Hundred Million Dollars | Territories Outside of North and South America | Eisai | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Portion of expenses | 50.00% |
Belviq Product Pre Approval More Than One Hundred Million Dollars | Territories Outside of North and South America | Eisai | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Portion of expenses | 100.00% |
Belviq Product Post Approval Up To Fifty Million Dollars | Territories Outside of North and South America | Arena GmbH | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Aggregate expense cap on equal split of development expenses | $ 50,000,000 |
Portion of expenses | 50.00% |
Belviq Product Post Approval Up To Fifty Million Dollars | Territories Outside of North and South America | Eisai | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Portion of expenses | 50.00% |
Belviq Product Post Approval More Than Fifty Million Dollars | Territories Outside of North and South America | Arena GmbH | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Portion of expenses | 10.00% |
Belviq Product Post Approval More Than Fifty Million Dollars | Territories Outside of North and South America | Eisai | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Portion of expenses | 90.00% |
Belviq Product Pre Approval | Non US Territories in North and South America | Arena GmbH | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Portion of expenses | 10.00% |
Belviq Product Pre Approval | Non US Territories in North and South America | Eisai | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Portion of expenses | 90.00% |
Belviq Product Pre Approval Certain Stability Work | Non US Territories in North and South America | Arena GmbH | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Portion of expenses | 50.00% |
Belviq Product Pre Approval Certain Stability Work | Non US Territories in North and South America | Eisai | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Portion of expenses | 50.00% |
Belviq Product Post Approval | Non US Territories in North and South America | Arena GmbH | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Portion of expenses | 10.00% |
Belviq Product Post Approval | Non US Territories in North and South America | Eisai | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Portion of expenses | 90.00% |
Belviq Product Post Approval | UNITED STATES | Arena GmbH | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Portion of expenses | 10.00% |
Belviq Product Post Approval | UNITED STATES | Eisai | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Portion of expenses | 90.00% |
Belviq Product Post Approval Certain Stability Work | Non US Territories in North and South America | Arena GmbH | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Portion of expenses | 50.00% |
Belviq Product Post Approval Certain Stability Work | Non US Territories in North and South America | Eisai | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Portion of expenses | 50.00% |
Belviq Product Post Approval Certain Pediatric Studies | UNITED STATES | Arena GmbH | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Portion of expenses | 50.00% |
Belviq Product Post Approval Certain Pediatric Studies | UNITED STATES | Eisai | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Portion of expenses | 50.00% |
Belviq Product Post Approval Non Fda Required Portion Of Cardiovascular Outcomes Trial Up To Eighty Million Dollars | UNITED STATES | Arena GmbH | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Aggregate expense cap on equal split of development expenses | $ 80,000,000 |
Portion of expenses | 50.00% |
Belviq Product Post Approval Non Fda Required Portion Of Cardiovascular Outcomes Trial Up To Eighty Million Dollars | UNITED STATES | Eisai | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Portion of expenses | 50.00% |
Belviq Product Post Approval Non Fda Required Portion Of Cardiovascular Outcomes Trial More Than Eighty Million Dollars | UNITED STATES | Eisai | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Portion of expenses | 100.00% |
Lorcaserin Product Other Than Belviq Pre Approval | Arena GmbH | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Portion of expenses | 50.00% |
Lorcaserin Product Other Than Belviq Pre Approval | Arena GmbH | Maximum | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Aggregate expense cap on equal split of development expenses | $ 250,000,000 |
Lorcaserin Product Other Than Belviq Pre Approval | Eisai | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Portion of expenses | 50.00% |
Lorcaserin Product Other Than Belviq Post Approval Up To One Hundred Million Dollars | Arena GmbH | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Aggregate expense cap on equal split of development expenses | $ 100,000,000 |
Portion of expenses | 50.00% |
Lorcaserin Product Other Than Belviq Post Approval Up To One Hundred Million Dollars | Eisai | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Portion of expenses | 50.00% |
Lorcaserin Product Other Than Belviq Post Approval More Than One Hundred Million Dollars | Arena GmbH | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Portion of expenses | 10.00% |
Lorcaserin Product Other Than Belviq Post Approval More Than One Hundred Million Dollars | Eisai | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Portion of expenses | 90.00% |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information - 401 (K) Plan (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Compensation and Retirement Disclosure [Abstract] | |||
Defined contribution plan, percentage employer matching contribution of first 6% contributed | 100.00% | ||
Maximum employer matching contribution percentage per employee | 6.00% | ||
Employer matching contributions | $ 1.9 | $ 1.6 | $ 1.5 |
Defined contribution plan, employer matching contribution vesting period in Years | 5 years |
Employee Benefit Plans - Addi66
Employee Benefit Plans - Additional Information - Pension Plans (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Compensation and Retirement Disclosure [Abstract] | |||
Multi-employer plan, employer contributions | $ 0.7 | $ 0.7 | $ 0.7 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Line Items] | |||
Statutory federal rate | 34.00% | 34.00% | 34.00% |
Increase in valuation allowance | $ 21,400,000 | ||
Unrecognized tax benefits, that would impact the effective tax rate | 4,200,000 | ||
Accrued interest or penalties | 0 | $ 0 | $ 0 |
Recognize interest and/or penalties expense | 0 | $ 0 | $ 0 |
Foreign subsidiaries accumulated earnings | 0 | ||
Foreign subsidiaries repatriated earnings | $ 0 | ||
Maximum | |||
Income Tax Disclosure [Line Items] | |||
Income tax holiday expiration term | 10 years | ||
Income tax holiday termination date | Dec. 31, 2022 | ||
California | |||
Income Tax Disclosure [Line Items] | |||
NOL carryforwards | $ 586,700,000 | ||
California | Minimum | |||
Income Tax Disclosure [Line Items] | |||
NOL carryforwards expiration date, year | 2,016 | ||
California | Stock Option Exercises | |||
Income Tax Disclosure [Line Items] | |||
NOL carryforwards | $ 8,900,000 | ||
California | Research and Development Tax Credit | |||
Income Tax Disclosure [Line Items] | |||
Tax credit carryforwards amount | 23,000,000 | ||
Foreign | |||
Income Tax Disclosure [Line Items] | |||
NOL carryforwards | $ 86,000,000 | ||
Foreign | Minimum | |||
Income Tax Disclosure [Line Items] | |||
NOL carryforwards expiration date, year | 2,016 | ||
SWITZERLAND | |||
Income Tax Disclosure [Line Items] | |||
Standard effective tax rate | 19.00% | ||
Federal | |||
Income Tax Disclosure [Line Items] | |||
NOL carryforwards | $ 604,800,000 | ||
Federal | Minimum | |||
Income Tax Disclosure [Line Items] | |||
NOL carryforwards expiration date, year | 2,023 | ||
Tax credit carryforwards expiration year | 2,026 | ||
Federal | Stock Option Exercises | |||
Income Tax Disclosure [Line Items] | |||
NOL carryforwards | $ 0 | ||
Federal | Research and Development Tax Credit | |||
Income Tax Disclosure [Line Items] | |||
Tax credit carryforwards amount | 30,100,000 | ||
Federal | Orphan Drug Credit | Minimum | |||
Income Tax Disclosure [Line Items] | |||
Tax credit carryforwards amount | $ 3,500,000 |
Income Taxes - Summary of Loss
Income Taxes - Summary of Loss Before Provision (Benefit) for Income Taxes by Region (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
United States | $ (64,109) | $ (16,607) | $ 11,573 |
Foreign | (43,870) | (43,901) | (31,008) |
Total loss before income taxes | $ (107,979) | $ (60,508) | $ (19,435) |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Provision (Benefit) for Income Taxes at Statutory Federal Rate to Provision (Benefit) for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reconciliation Of Income Taxes [Line Items] | |||
Benefit for income taxes at statutory Federal rate | $ (36,713) | $ (20,573) | $ (6,608) |
State income tax, net of Federal benefit and valuation allowance | 0 | 0 | 0 |
Foreign losses at lower effective rates | 15,041 | 13,318 | 9,527 |
Research and development and Orphan Drug credits | (3,666) | (2,992) | (2,594) |
Change in Federal and foreign valuation allowance | 21,310 | 9,436 | 61,265 |
Benefit for income taxes | 0 | 0 | 0 |
Permanent differences and other | |||
Reconciliation Of Income Taxes [Line Items] | |||
Other adjustments | 4,190 | 2,318 | 2,122 |
Gain from valuation of derivative liabilities | |||
Reconciliation Of Income Taxes [Line Items] | |||
Other adjustments | (162) | (1,507) | (3,922) |
Adjustment to research and development credits and net operating losses, or NOLs | |||
Reconciliation Of Income Taxes [Line Items] | |||
Other adjustments | $ 0 | $ 0 | $ (59,790) |
Income Taxes - Components of Ne
Income Taxes - Components of Net Deferred Tax Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets: | ||
Foreign NOL carryforwards | $ 7,060 | $ 9,518 |
Federal and California NOL carryforwards | 236,334 | 216,906 |
Federal and California research and development credit carryforwards | 48,768 | 44,022 |
Deferred revenues | 33,548 | 36,448 |
Depreciation | 4,475 | 3,714 |
Share-based compensation expense | 10,737 | 8,549 |
Other, net | 3,578 | 4,011 |
Total deferred tax assets | 344,500 | 323,168 |
Deferred tax liabilities | (660) | (767) |
Net deferred tax assets | 343,840 | 322,401 |
Valuation allowance | (343,840) | (322,401) |
Net deferred tax liabilities | $ 0 | $ 0 |
Income Taxes - Reconciliation71
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Gross unrecognized tax benefits at the beginning of the year | $ 5,214 | $ 4,629 | $ 0 |
Additions from tax positions taken in the current year | 405 | 585 | 541 |
Additions from tax positions taken in prior years | 0 | 0 | 4,088 |
Reductions from tax positions taken in prior years | 0 | 0 | 0 |
Tax settlements | 0 | 0 | 0 |
Gross unrecognized tax benefits at end of the year | $ 5,619 | $ 5,214 | $ 4,629 |
Restructuring Charges (Details)
Restructuring Charges (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Oct. 31, 2015employee | Jan. 31, 2016employee | Dec. 31, 2015USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Restructuring Cost and Reserve [Line Items] | ||||||
Reduction in workforce | 35.00% | |||||
Number of positions to be eliminated | employee | 80 | |||||
Restructuring charges | $ 4,000 | |||||
Share-based compensation | 100 | $ 14,463 | $ 13,509 | $ 9,024 | ||
Payments for restructuring | 2,200 | |||||
Accrual | $ 1,793 | $ 1,793 | $ 0 | |||
Scenario, Forecast | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Reduction in workforce | 17.00% | |||||
Number of positions to be eliminated | employee | 14 |
Quarterly Financial Data (Una73
Quarterly Financial Data (Unaudited) (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenues | $ 7,751 | $ 9,138 | $ 9,181 | $ 12,256 | $ 9,191 | $ 8,164 | $ 12,801 | $ 6,814 | $ 38,326 | $ 36,970 | $ 81,394 |
Operating costs and expenses | 37,045 | 34,319 | 36,160 | 34,000 | 39,351 | 34,373 | 38,167 | 30,352 | 141,524 | 142,243 | 104,329 |
Net loss | $ (30,459) | $ (26,418) | $ (26,807) | $ (24,295) | $ (32,061) | $ (10,672) | $ 7,480 | $ (25,255) | $ (107,979) | $ (60,508) | $ (19,435) |
Net income (loss) per share, basic and diluted ($ per share) | $ (0.13) | $ (0.11) | $ (0.11) | $ (0.10) | $ (0.15) | $ (0.05) | $ 0.03 | $ (0.12) | $ (0.45) | $ (0.28) |
Retirement of Former Presiden74
Retirement of Former President and Chief Executive Officer (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Oct. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Share-based compensation | $ 100 | $ 14,463 | $ 13,509 | $ 9,024 | |
President | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Benefits | $ 1,800 | ||||
Duration | 18 months | ||||
Expense | 2,900 | ||||
Share-based compensation | $ 1,100 |