Corcept Therapeutics (CORT) 10-Q 9 May 19 2019 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2019	May 01, 2019
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q1
Trading Symbol	CORT
Entity Registrant Name	CORCEPT THERAPEUTICS INC
Entity Central Index Key	0001088856
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		114,858,708

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 49,650	$ 41,625
Short-term marketable securities	137,255	165,135
Trade receivables, net of allowances	19,218	17,588
Inventory	5,000	4,732
Prepaid expenses and other current assets	5,741	7,740
Total current assets	216,864	236,820
Strategic inventory	10,360	11,510
Operating lease right-of-use asset	1,465
Property and equipment, net of accumulated depreciation	925	655
Long-term marketable securities	28,842	0
Other assets	75	50
Deferred tax assets, net	61,681	62,659
Total assets	320,212	311,694
Current liabilities:
Accounts payable	9,330	8,266
Accrued clinical expenses	4,537	3,521
Other accrued liabilities	18,830	23,786
Operating lease liability	1,521
Total current liabilities	34,218	35,573
Long-term accrued income taxes	239	239
Total liabilities	34,457	35,812
Commitments and contingencies (Note 5)
Stockholders’ equity:
Preferred stock	0	0
Common stock	118	117
Additional paid-in capital	427,317	417,228
Treasury stock	(42,312)	(23,657)
Accumulated other comprehensive gain (loss)	94	(70)
Accumulated deficit	(99,462)	(117,736)
Total stockholders’ equity	285,755	275,882
Total liabilities and stockholders’ equity	$ 320,212	$ 311,694

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Statement of Comprehensive Income [Abstract]
Product revenue, net	$ 64,829	$ 57,659
Operating expenses:
Cost of sales	1,240	1,174
Research and development	20,244	17,050
Selling, general and administrative	24,389	18,440
Total operating expenses	45,873	36,664
Income from operations	18,956	20,995
Interest and other income	1,097	294
Income before income taxes	20,053	21,289
Income tax expense	(1,779)	(3,830)
Net income	18,274	17,459
Other comprehensive income (loss):
Net unrealized income (loss) on available-for-sale investments, net of tax impact of $(52) and $48, respectively	164	(152)
Total comprehensive income	$ 18,438	$ 17,307
Basic net income per share (in dollars per share)	$ 0.16	$ 0.15
Diluted net income per share (in dollars per share)	$ 0.15	$ 0.14
Weighted-average shares outstanding used in computing net income per share
Basic (in shares)	114,844	114,882
Diluted (in shares)	123,895	127,733

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Statement of Comprehensive Income [Abstract]
Net unrealized income (loss) on available-for-sale investments, tax impact	$ (52)	$ 48

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Cash flows from operating activities:
Net income	$ 18,274,000	$ 17,459,000
Adjustments to reconcile net income to net cash generated from operations:
Stock-based compensation	6,696,000	4,954,000
Deferred income taxes	926,000	3,169,000
Excess tax benefits from stock option activity	0	54,000
Accretion of interest income	(634,000)	(198,000)
Depreciation and amortization of property and equipment	96,000	48,000
Non-cash amortization of right-of-use asset	413,000
Changes in operating assets and liabilities:
Trade receivables	(1,630,000)	(1,961,000)
Other receivable	0	12,876,000
Inventory	910,000	590,000
Prepaid expenses and other current assets	1,999,000	(635,000)
Other assets	(25,000)	(23,000)
Accounts payable	953,000	(759,000)
Accrued clinical expenses	1,016,000	1,239,000
Other accrued liabilities	(4,956,000)	(2,383,000)
Operating lease liability	(357,000)
Net cash provided by operating activities	23,681,000	34,430,000
Cash flows from investing activities:
Purchases of property and equipment	(257,000)	(77,000)
Purchases of marketable securities	70,825,000	16,650,000
Purchases of marketable securities	(70,935,000)	(50,866,000)
Cash used in investing activities	(367,000)	(34,293,000)
Cash flows from financing activities:
Proceeds from issuance of common stock upon exercise of options, net of issuance costs	2,435,000	1,922,000
Repurchase of common stock	(13,555,000)	0
Cash paid to satisfy statutory withholding requirement for net settlement of cashless option exercise	(4,169,000)	0
Net cash (used in) provided by financing activities	(15,289,000)	1,922,000
Net increase in cash and cash equivalents	8,025,000	2,059,000
Cash and cash equivalents, at beginning of period	41,625,000	31,062,000
Cash and cash equivalents, at end of period	49,650,000	33,121,000
Non-cash transactions:
Cost of shares tendered for net settlement of cashless option exercise	931,000	$ 0
Recognition of right-of-use asset and lease liability	$ 1,878,000

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Treasury Stock	Accumulated Other Comprehensive Loss	Accumulated Deficit
Beginning balance at Dec. 31, 2017	$ 190,968	$ 115	$ 384,074	$ 0	$ (75)	$ (193,146)
Beginning balance (in shares) at Dec. 31, 2017		114,717
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock upon exercise of options (in shares)		479
Issuance of common stock upon exercise of options	1,922		1,922
Stock-based compensation	4,954		4,954
Net unrealized gain (loss) on marketable securities, net of tax	(77)				(77)
Net income	17,459					17,459
Ending balance (in shares) at Mar. 31, 2018		115,196
Ending balance at Mar. 31, 2018	215,226	$ 115	390,950	0	(152)	(175,687)
Beginning balance at Dec. 31, 2018	275,882	$ 117	417,228	(23,657)	(70)	(117,736)
Beginning balance (in shares) at Dec. 31, 2018		115,031
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock upon exercise of options (in shares)		1,497
Issuance of common stock upon exercise of options	3,366	$ 1	3,365
Shares tendered to satisfy cost and statutory withholding requirements for net settlement of cashless option exercise (in shares)		(428)
Shares tendered to satisfy cost and statutory withholding requirements for net settlement of cashless option exercise	(5,100)			(5,100)
Stock-based compensation	6,724		6,724
Net unrealized gain (loss) on marketable securities, net of tax	164				164
Purchases of treasury stock (in shares)		(1,168)
Purchases of treasury stock	(13,555)			(13,555)
Net income	18,274					18,274
Ending balance (in shares) at Mar. 31, 2019		114,932
Ending balance at Mar. 31, 2019	$ 285,755	$ 118	$ 427,317	$ (42,312)	$ 94	$ (99,462)

Basis of Presentation and Summa

Basis of Presentation and Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2019
Accounting Policies [Abstract]
Basis of Presentation and Summary of Significant Accounting Policies	Basis of Presentation and Summary of Significant Accounting Policies Description of Business and Basis of Presentation Corcept Therapeutics Incorporated was incorporated in the State of Delaware in May 1998, and our headquarters are in Menlo Park, California. We are a commercial-stage pharmaceutical company engaged in the discovery, development and commercialization of medications that treat severe metabolic, oncologic and psychiatric disorders by modulating the effect of the stress hormone cortisol. In 2012, the U.S. Food and Drug Administration (“FDA”) approved our first product, Korlym® (“mifepristone”) 300 mg tablets, as a once-daily oral medication for treatment of hyperglycemia secondary to hypercortisolism in adult patients with endogenous Cushing’s syndrome who have type 2 diabetes mellitus or glucose intolerance and have failed surgery or are not candidates for surgery. We have discovered and patented three structurally distinct series of selective cortisol modulators, consisting of more than 500 compounds, and are developing compounds from these series as potential treatments for a broad range of serious disorders. Basis of Presentation We have prepared the March 31, 2019 condensed consolidated balance sheet and statements of comprehensive income, cash flows and stockholders' equity for the three months ended March 31, 2019 and 2018 in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. They do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation (which in the applicable periods consist only of normal, recurring adjustments) have been included. Operating results for the three months ended March 31, 2019 are not necessarily indicative of the results for the remainder of 2019 or any other period. These financial statements and notes should be read in conjunction with the financial statements for the year ended December 31, 2018 included in our Annual Report on Form 10-K. The December 31, 2018 balance sheet was derived from audited financial statements at that date. There have been no material changes in the significant accounting policies described in our Annual Report on Form 10-K for the year ended December 31, 2018 except for the adoption of the accounting pronouncements set forth below. Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, “Leases”, which requires lease transactions with terms longer than 12 months to be recognized on the balance sheet as a liability (“lease liabilities”), offset by an asset of equal amount (“right-of-use assets”). ASU No. 2016-02 supersedes the lease accounting requirements of ASC Topic 840, "Leases" and creates Topic 842, "Leases." We adopted this standard using the modified retrospective approach on January 1, 2019. Prior comparative periods were not adjusted under this approach. We have reviewed all contracts that may contain leases and we have determined that the only impact is to our accounting for our leased office space. We have elected to apply the package of practical expedients that allows us to not reassess lease classification for any expired or existing lease contracts. The adoption did not have a material impact on our retained earnings on the adoption date and increased our “operating right-of-use assets" and “operating lease liability” by approximately $1.9 million . See Note 4 for more information regarding our leased office space. In February 2018, the FASB issued ASU No. 2018-02, “Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” The standard allows companies to reclassify to retained earnings tax effects related to items that have been stranded in accumulated other comprehensive income as a result of the Tax Cuts and Jobs Act (the “Act”). An entity that elects to reclassify these amounts must reclassify stranded tax effects related to the Act’s change in US federal tax rate for all items accounted for in other comprehensive income. These entities can also elect to reclassify other stranded effects that relate to the Act but do not directly relate to the change in the federal rate. This standard is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018. We adopted this standard on January 1, 2019. It had no impact on our consolidated financial statements. In June 2018, the FASB issued ASU No. 2018-07, “Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting,” which expands the scope of ASC 718 to include all share-based payment arrangements related to the acquisition of goods and services from nonemployees. This standard is effective for fiscal years and interim periods within those years, beginning after December 15, 2018. We adopted this standard on January 1, 2019. It had no impact on our consolidated financial statements. Recently Issued Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments-Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments,” which changes the methodology for measuring credit losses on financial instruments and when such losses are recorded. This standard is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019. Early adoption is permitted beginning after December 15, 2018. We plan to adopt this standard on January 1, 2020. Although we have not concluded our analysis, we do not expect adoption of this standard to have a material impact on our consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13, “Fair Value Measurements (Topic 820),” which eliminates or modifies certain disclosure requirements for fair value measurements and requires disclosure of certain new information. This standard is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019. We plan to adopt this standard on January 1, 2020 and are currently evaluating the impact of this new standard on our consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-15, “Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract,” which requires a customer that is a party to a cloud computing service contract to follow the internal-use software guidance in ASC 350-40 to determine which implementation costs to defer and recognize as an asset. This standard is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019. We plan to adopt this standard on January 1, 2020 and are currently evaluating the impact of this new standard on our consolidated financial statements.

Composition of Certain Balance

Composition of Certain Balance Sheet Items	3 Months Ended
	Mar. 31, 2019
Balance Sheet Related Disclosures [Abstract]
Composition of Certain Balance Sheet Items	Composition of Certain Balance Sheet Items Inventory The composition of inventory was as follows: March 31, December 31, (in thousands) Raw materials $ 2,055 $ 4,195 Work in progress 6,936 5,624 Finished goods 6,369 6,423 Total inventory 15,360 16,242 Less strategic inventory classified as non-current (10,360 ) (11,510 ) Total inventory classified as current $ 5,000 $ 4,732 Because we rely on single-source manufacturers of both the active pharmaceutical ingredient (“API”) for Korlym and Korlym tablets, we have purchased and hold significant quantities of these materials. We classify inventory we do not expect to sell within 12 months of the balance sheet date as “Strategic Inventory,” a long-term asset. Other Accrued Liabilities Other accrued liabilities consisted of the following: March 31, December 31, (in thousands) Government rebates $ 10,829 $ 11,132 Accrued compensation 3,296 7,879 Income taxes payable 2,462 1,542 Legal fees 531 314 Professional fees 493 240 Accrued selling and marketing costs 699 261 Accrued manufacturing costs 70 2,032 Other 450 386 Total other accrued liabilities $ 18,830 $ 23,786

Available-for-Sale Securities a

Available-for-Sale Securities and Fair Value Measurements	3 Months Ended
	Mar. 31, 2019
Available For Sale Securities And Fair Value Measurements [Abstract]
Available-for-Sale Securities and Fair Value Measurements	Available-for-Sale Securities and Fair Value Measurements Our available-for-sale securities included: Fair Value Hierarchy Level Estimated Fair Value March 31, December 31, (in thousands) Corporate bonds Level 2 $ 70,545 $ 54,469 Commercial paper Level 2 35,738 67,906 Asset-backed securities Level 2 28,951 10,965 Repurchase agreements Level 2 15,000 15,000 U.S. treasury securities Level 1 30,863 39,287 Money market funds Level 1 12,364 4,583 Total Marketable securities $ 193,461 $ 192,210 Classified as: Cash equivalents $ 27,364 $ 27,075 Short-term marketable securities 137,255 165,135 Long-term marketable securities 28,842 — Total marketable securities $ 193,461 $ 192,210 We estimate the fair value of marketable securities classified as Level 1 using quoted market prices for these or similar investments obtained from a commercial pricing service. We estimate the fair value of marketable securities classified as Level 2 using inputs that may include benchmark yields, reported trades, broker/dealer quotes and issuer spreads. As of March 31, 2019 , all our marketable securities had original maturities of less than two years . The weighted-average maturity of our holdings was six months . As of March 31, 2019 , of our long-term marketable securities have a remaining maturity of 12 to 18 months. None of our marketable securities changed from one fair value hierarchy to another during the three months ended March 31, 2019 .

Leases

Leases	3 Months Ended
	Mar. 31, 2019
Leases [Abstract]
Leases	In February 2016, we extended the operating lease for our office space through 2019. In March 2017 we terminated and replaced it with a new lease effective until March 31, 2019 . We subsequently amended the lease to add additional space in June 2017, and again in November 2018, at which time it was extended through March 31, 2020. Based on the present value of the payments for the remaining term of our operating lease, we recognized a right-of-use asset and lease liability of approximately $1.9 million for our operating lease of approximately on January 1, 2019. Operating lease right-of-use assets and liabilities commencing after January 1, 2019 are recognized at a commencement date based on the present value of lease payments over the lease term. Because the rate implicit in our lease is not readily determinable, we use an incremental borrowing rate to determine the present value of the lease payments. All operating lease expense is recognized on a straight-line basis over the lease term. Operating lease expense for the three months ended March 31, 2019 was approximately $0.4 million . Information related to our right-of-use assets and related lease liabilities were as follows: Three Months Ended March 31, 2019 (in thousands) Cash paid for operating lease liability $ 379 Right-of-use assets obtained in exchange for new operating lease liability $ 1,878 Weighted-average remaining lease term 1 year Weighted-average discount rate 5.0 % As of March 31, 2019 , future minimum lease payments under non-cancelable operating leases due in each of the next two years were as follows (in thousands): 2019 (remainder) $ 1,172 2020 391 1,563 Less imputed interest (42 ) Total lease liability $ 1,521

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies There have been no material changes in our purchase commitments described in our Annual Report on Form 10-K for the year ended December 31, 2018. In the ordinary course of business, we may be subject to legal claims and regulatory actions that could have a material adverse effect on our business or financial position. We assess our potential liability in such situations by analyzing potential outcomes, assuming various litigation, regulatory and settlement strategies. If we determine a loss is probable and its amount can be reasonably estimated, we accrue an amount equal to the estimated loss. No losses and no provision for a loss contingency have been recorded to date.

Stockholder_s Equity

Stockholder’s Equity	3 Months Ended
	Mar. 31, 2019
Equity [Abstract]
Stockholder’s Equity	Stockholders' Equity Stock Option Plans We have two stock option plans – the 2004 Equity Incentive Plan (the “2004 Plan”) and the 2012 Incentive Award Plan (the “2012 Plan”). In February 2019, our Board of Directors authorized a 4.6 million increase in the shares available for grant under the 2012 Plan. During the three months ended March 31, 2019 , we issued 1.5 million shares of our common stock upon the exercise of stock options. Of these shares, 0.8 million were issued as part of a net-share settlement of a cashless option exercise and 0.4 million were tendered to satisfy the related cost and statutory withholding requirements. During the three months ended March 31, 2018 , we issued 0.5 million shares of our common stock upon the exercise of stock options. The following table summarizes our stock-based compensation: Three Months Ended 2019 2018 (in thousands) Stock-based compensation capitalized in inventory $ 28 $ — Cost of sales 28 — Research and development 1,979 1,464 Selling, general and administrative 4,689 3,490 Total stock-based compensation $ 6,724 $ 4,954 Stock Repurchase Program On August 9, 2018, we announced that our Board of Directors had approved a program to repurchase up to $100 million of our common stock (the “Stock Repurchase Program”). Unless it is terminated or suspended prior to its expiration, the Stock Repurchase Program will remain in effect until June 30, 2019 with the timing and amount of any repurchases to be determined based on market conditions, our stock price and other factors. The Stock Repurchase Program does not require us to acquire any specific number of shares and we may modify, suspended or discontinue it in our sole discretion at any time, without notice. Repurchases may be made through a variety of methods, including in the open market, in block trades, through privately negotiated transactions or accelerated share repurchase transactions or any combination of such methods. During the three months ended March 31, 2019 , we repurchased 1.2 million shares of common stock under the Stock Repurchase Program in open market transactions at an average price of $11.61 per share, for an aggregate purchase price of $13.6 million . Shares repurchased are recorded as treasury stock at cost on our consolidated balance sheet. At March 31, 2019 , $62.8 million of the current authorization remained available for the repurchase of shares of our common stock.

Net Income Per Share

Net Income Per Share	3 Months Ended
	Mar. 31, 2019
Earnings Per Share [Abstract]
Net Income Per Share	Net Income Per Share We compute basic and diluted net income per share by dividing our net income by the weighted-average number of common shares outstanding during the period. We used the treasury stock method to determine the number of dilutive shares of common stock resulting from the potential exercise of stock options. The statements of comprehensive income show the computation of net income per share for each period, including the number of weighted-average shares outstanding. The following table shows the computation of net income per share for each period: Three Months Ended 2019 2018 (in thousands) Numerator: Net income $ 18,274 $ 17,459 Denominator: Weighted-average shares used to compute basic net income per share 114,844 114,882 Dilutive effect of employee stock options 9,051 12,851 Weighted-average shares used to compute diluted net income per share 123,895 127,733 Net income per share Basic $ 0.16 $ 0.15 Diluted $ 0.15 $ 0.14 As of March 31, 2019 and 2018, we had 24.4 million and 23.1 million stock options outstanding, respectively. On a weighted-average basis, 8.5 million and 2.6 million stock options outstanding during the three months ended March 31, 2019 and 2018 , respectively, were excluded from the computation of diluted net income per share because including them would have reduced dilution.

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2019
Income Tax Disclosure [Abstract]
Income Taxes	Income taxes We recorded income tax expense of $1.8 million for the three months ended March 31, 2019 , net of a $2.8 million discrete benefit related to stock option exercises and dispositions for the three months ended March 31, 2019 compared to income tax expense of $3.8 million for the three months ended March 31, 2018 . Income tax expense for the three months ended March 31, 2019 was primarily due to the reduction of deferred tax assets of $0.9 million , caused by our utilization of federal and state net operating losses and income tax expense of 0.9 million , incurred in U.S. jurisdictions where we do not have net operating loss carryforwards to offset our tax obligations. Income tax expense for the three months ended March 31, 2018 was primarily due to a $3.2 million reduction of deferred tax assets caused by our utilization of federal and state net operating losses and a $0.6 million income tax expense incurred in states where we have no net operating loss carryforwards to offset our tax obligations. Our effective tax rate differed from the federal statutory rate due to state income taxes and non-deductible stock-based compensation, which increased our tax expense, offset by research and development tax credits and the reduction in taxable income arising from the exercise of employee stock options during the reporting period. Each quarter, we assess our ability to use our deferred tax assets to offset our expected federal and state taxable income. In the fourth quarter of 2017, we determined that it was more likely than not that we would generate sufficient taxable income to utilize our federal and state deferred tax assets in every state except California. We therefore included in our balance sheet the net value of all our deferred tax assets except those applicable to California.

Basis of Presentation and Sum_2

Basis of Presentation and Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2019
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation We have prepared the March 31, 2019 condensed consolidated balance sheet and statements of comprehensive income, cash flows and stockholders' equity for the three months ended March 31, 2019 and 2018 in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. They do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation (which in the applicable periods consist only of normal, recurring adjustments) have been included. Operating results for the three months ended March 31, 2019 are not necessarily indicative of the results for the remainder of 2019 or any other period. These financial statements and notes should be read in conjunction with the financial statements for the year ended December 31, 2018 included in our Annual Report on Form 10-K. The December 31, 2018 balance sheet was derived from audited financial statements at that date
Recently Adopted Accounting Pronouncements	Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, “Leases”, which requires lease transactions with terms longer than 12 months to be recognized on the balance sheet as a liability (“lease liabilities”), offset by an asset of equal amount (“right-of-use assets”). ASU No. 2016-02 supersedes the lease accounting requirements of ASC Topic 840, "Leases" and creates Topic 842, "Leases." We adopted this standard using the modified retrospective approach on January 1, 2019. Prior comparative periods were not adjusted under this approach. We have reviewed all contracts that may contain leases and we have determined that the only impact is to our accounting for our leased office space. We have elected to apply the package of practical expedients that allows us to not reassess lease classification for any expired or existing lease contracts. The adoption did not have a material impact on our retained earnings on the adoption date and increased our “operating right-of-use assets" and “operating lease liability” by approximately $1.9 million . See Note 4 for more information regarding our leased office space. In February 2018, the FASB issued ASU No. 2018-02, “Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” The standard allows companies to reclassify to retained earnings tax effects related to items that have been stranded in accumulated other comprehensive income as a result of the Tax Cuts and Jobs Act (the “Act”). An entity that elects to reclassify these amounts must reclassify stranded tax effects related to the Act’s change in US federal tax rate for all items accounted for in other comprehensive income. These entities can also elect to reclassify other stranded effects that relate to the Act but do not directly relate to the change in the federal rate. This standard is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018. We adopted this standard on January 1, 2019. It had no impact on our consolidated financial statements. In June 2018, the FASB issued ASU No. 2018-07, “Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting,” which expands the scope of ASC 718 to include all share-based payment arrangements related to the acquisition of goods and services from nonemployees. This standard is effective for fiscal years and interim periods within those years, beginning after December 15, 2018. We adopted this standard on January 1, 2019. It had no impact on our consolidated financial statements. Recently Issued Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments-Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments,” which changes the methodology for measuring credit losses on financial instruments and when such losses are recorded. This standard is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019. Early adoption is permitted beginning after December 15, 2018. We plan to adopt this standard on January 1, 2020. Although we have not concluded our analysis, we do not expect adoption of this standard to have a material impact on our consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13, “Fair Value Measurements (Topic 820),” which eliminates or modifies certain disclosure requirements for fair value measurements and requires disclosure of certain new information. This standard is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019. We plan to adopt this standard on January 1, 2020 and are currently evaluating the impact of this new standard on our consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-15, “Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract,” which requires a customer that is a party to a cloud computing service contract to follow the internal-use software guidance in ASC 350-40 to determine which implementation costs to defer and recognize as an asset. This standard is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019. We plan to adopt this standard on January 1, 2020 and are currently evaluating the impact of this new standard on our consolidated financial statements.
Income Taxes	Each quarter, we assess our ability to use our deferred tax assets to offset our expected federal and state taxable income. In the fourth quarter of 2017, we determined that it was more likely than not that we would generate sufficient taxable income to utilize our federal and state deferred tax assets in every state except California. We therefore included in our balance sheet the net value of all our deferred tax assets except those applicable to California.

Composition of Certain Balanc_2

Composition of Certain Balance Sheet Items (Tables)	3 Months Ended
	Mar. 31, 2019
Balance Sheet Related Disclosures [Abstract]
Schedule of Composition of Inventory	The composition of inventory was as follows: March 31, December 31, (in thousands) Raw materials $ 2,055 $ 4,195 Work in progress 6,936 5,624 Finished goods 6,369 6,423 Total inventory 15,360 16,242 Less strategic inventory classified as non-current (10,360 ) (11,510 ) Total inventory classified as current $ 5,000 $ 4,732
Schedule of Other Accrued Liabilities	Other accrued liabilities consisted of the following: March 31, December 31, (in thousands) Government rebates $ 10,829 $ 11,132 Accrued compensation 3,296 7,879 Income taxes payable 2,462 1,542 Legal fees 531 314 Professional fees 493 240 Accrued selling and marketing costs 699 261 Accrued manufacturing costs 70 2,032 Other 450 386 Total other accrued liabilities $ 18,830 $ 23,786

Available-for-Sale Securities_2

Available-for-Sale Securities and Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2019
Available For Sale Securities And Fair Value Measurements [Abstract]
Schedule of Available-for-Sale Securities	Our available-for-sale securities included: Fair Value Hierarchy Level Estimated Fair Value March 31, December 31, (in thousands) Corporate bonds Level 2 $ 70,545 $ 54,469 Commercial paper Level 2 35,738 67,906 Asset-backed securities Level 2 28,951 10,965 Repurchase agreements Level 2 15,000 15,000 U.S. treasury securities Level 1 30,863 39,287 Money market funds Level 1 12,364 4,583 Total Marketable securities $ 193,461 $ 192,210 Classified as: Cash equivalents $ 27,364 $ 27,075 Short-term marketable securities 137,255 165,135 Long-term marketable securities 28,842 — Total marketable securities $ 193,461 $ 192,210

Leases Leases (Tables)

Leases Leases (Tables)	3 Months Ended
	Mar. 31, 2019
Leases [Abstract]
Schedule of Information of Leases Asset and Liabilities	Information related to our right-of-use assets and related lease liabilities were as follows: Three Months Ended March 31, 2019 (in thousands) Cash paid for operating lease liability $ 379 Right-of-use assets obtained in exchange for new operating lease liability $ 1,878 Weighted-average remaining lease term 1 year Weighted-average discount rate 5.0 %
Schedule of Future Minimum Lease Payments under Non-Cancelable Operating Leases	As of March 31, 2019 , future minimum lease payments under non-cancelable operating leases due in each of the next two years were as follows (in thousands): 2019 (remainder) $ 1,172 2020 391 1,563 Less imputed interest (42 ) Total lease liability $ 1,521

Stockholder_s Equity (Tables)

Stockholder’s Equity (Tables)	3 Months Ended
	Mar. 31, 2019
Equity [Abstract]
Summary of Stock-Based Compensation	The following table summarizes our stock-based compensation: Three Months Ended 2019 2018 (in thousands) Stock-based compensation capitalized in inventory $ 28 $ — Cost of sales 28 — Research and development 1,979 1,464 Selling, general and administrative 4,689 3,490 Total stock-based compensation $ 6,724 $ 4,954

Net Income Per Share (Tables)

Net Income Per Share (Tables)	3 Months Ended
	Mar. 31, 2019
Earnings Per Share [Abstract]
Schedule of Computation of Net Income Per Share	The following table shows the computation of net income per share for each period: Three Months Ended 2019 2018 (in thousands) Numerator: Net income $ 18,274 $ 17,459 Denominator: Weighted-average shares used to compute basic net income per share 114,844 114,882 Dilutive effect of employee stock options 9,051 12,851 Weighted-average shares used to compute diluted net income per share 123,895 127,733 Net income per share Basic $ 0.16 $ 0.15 Diluted $ 0.15 $ 0.14

Basis of Presentation and Sum_3

Basis of Presentation and Summary of Significant Accounting Policies (Narrative) (Details) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2019USD ($)series	Dec. 31, 2018compound	Jan. 01, 2019USD ($)
Accounting Policies [Line Items]
Number of series of selective cortisol modulators | series	3
Number of compounds | compound		500
Total lease liability	$ 1,521
Operating lease right-of-use asset	$ 1,465
Accounting Standards Update 2016-02
Accounting Policies [Line Items]
Total lease liability			$ 1,900
Operating lease right-of-use asset			$ 1,900

Composition of Certain Balanc_3

Composition of Certain Balance Sheet Items (Composition of Inventory) (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Balance Sheet Related Disclosures [Abstract]
Raw materials	$ 2,055	$ 4,195
Work in progress	6,936	5,624
Finished goods	6,369	6,423
Total inventory	15,360	16,242
Less strategic inventory classified as non-current	(10,360)	(11,510)
Total inventory classified as current	$ 5,000	$ 4,732

Composition of Certain Balanc_4

Composition of Certain Balance Sheet Items (Other Accrued Liabilities) (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Balance Sheet Related Disclosures [Abstract]
Government rebates	$ 10,829	$ 11,132
Accrued compensation	3,296	7,879
Income taxes payable	2,462	1,542
Legal fees	531	314
Professional fees	493	240
Accrued selling and marketing costs	699	261
Accrued manufacturing costs	70	2,032
Other	450	386
Total other accrued liabilities	$ 18,830	$ 23,786

Available-for-Sale Securities_3

Available-for-Sale Securities and Fair Value Measurements (Schedule of Available-for-Sale Securities) (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Debt Securities, Available-for-sale [Line Items]
Short-term marketable securities	$ 137,255	$ 165,135
Long-term marketable securities	28,842	0
Estimated Fair Value
Debt Securities, Available-for-sale [Line Items]
Marketable securities	193,461	192,210
Cash equivalents	27,364	27,075
Short-term marketable securities	137,255	165,135
Long-term marketable securities	28,842	0
Corporate Bonds | Estimated Fair Value | Level 2
Debt Securities, Available-for-sale [Line Items]
Marketable securities	70,545	54,469
Commercial Paper | Estimated Fair Value | Level 2
Debt Securities, Available-for-sale [Line Items]
Marketable securities	35,738	67,906
Asset Backed Securities | Estimated Fair Value | Level 2
Debt Securities, Available-for-sale [Line Items]
Marketable securities	28,951	10,965
Repurchase Agreements | Estimated Fair Value | Level 2
Debt Securities, Available-for-sale [Line Items]
Marketable securities	15,000	15,000
U.S. Treasury Securities | Estimated Fair Value | Level 1
Debt Securities, Available-for-sale [Line Items]
Marketable securities	30,863	39,287
Money Market Funds | Estimated Fair Value | Level 1
Debt Securities, Available-for-sale [Line Items]
Marketable securities	$ 12,364	$ 4,583

Available-for-Sale Securities_4

Available-for-Sale Securities and Fair Value Measurements (Narrative) (Details)	3 Months Ended
	Mar. 31, 2019
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Maximum maturity period	2 years
Weighted average maturity period	6 months
Minimum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long term marketable securities, remaining maturity	12 months
Maximum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long term marketable securities, remaining maturity	18 months

Leases (Narrative) (Details)

Leases (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Jan. 01, 2019
Lessee, Lease, Description [Line Items]
Operating lease right-of-use asset	$ 1,465
Operating lease expenses	400
Cash paid for operating lease liability	379
Right-of-use assets obtained in exchange for new operating lease liability	$ 1,878
Weighted-average remaining lease term	1 year
Weighted-average discount rate	5.00%
Operating Lease Liabilities, Payments Due [Abstract]
2019 (remainder)	$ 1,172
2020	391
Total	1,563
Less imputed interest	(42)
Total lease liability	$ 1,521
Accounting Standards Update 2016-02
Lessee, Lease, Description [Line Items]
Operating lease right-of-use asset		$ 1,900
Operating Lease Liabilities, Payments Due [Abstract]
Total lease liability		$ 1,900

Commitments and Contingencies (

Commitments and Contingencies (Narrative) (Details)	3 Months Ended
	Mar. 31, 2019USD ($)
Commitments and Contingencies Disclosure [Abstract]
Losses for contingent liability	$ 0
Provision for a loss contingency	$ 0

Stockholder's Equity (Narrative

Stockholder's Equity (Narrative) (Details)	1 Months Ended	3 Months Ended
	Feb. 28, 2018shares	Mar. 31, 2019USD ($)stock_option_plan$ / sharesshares	Mar. 31, 2018shares	Aug. 09, 2018USD ($)
Shareholders Equity [Line Items]
Number of stock option plans | stock_option_plan		2
Net-share settlement (in shares)		800,000
Common stock repurchased | $		$ 13,555,000
Common Stock
Shareholders Equity [Line Items]
Common shares issued upon exercise of options (in shares)		1,497,000	479,000
Shares tendered to satisfy cost and withholding requirements (in shares)		428,000
Common stock repurchased (in shares)		1,168,000
Stock Repurchase Program | Common Stock
Shareholders Equity [Line Items]
Stock repurchase amount | $				$ 100,000,000
Common stock repurchased (in shares)		1,200,000
Common stock repurchased, average price (in dollars per share) | $ / shares		$ 11.61
Common stock repurchased | $		$ 13,600,000
Stock repurchase program, remaining authorized amount available for repurchase | $		$ 62,800,000
2012 Equity Incentive Award Plan
Shareholders Equity [Line Items]
Increase in shares authorized for grant (in shares)	4,600,000

Stockholder's Equity (Summary o

Stockholder's Equity (Summary of Stock-Based Compensation) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation capitalized in inventory	$ 28	$ 0
Total stock-based compensation	6,724	4,954
Cost of Sales [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Allocated share-based compensation expense	28	0
Research and development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Allocated share-based compensation expense	1,979	1,464
Selling, general and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Allocated share-based compensation expense	$ 4,689	$ 3,490

Net Income Per Share (Schedule

Net Income Per Share (Schedule of Computation of Net Income Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Numerator:
Net income	$ 18,274	$ 17,459
Denominator:
Weighted-average shares used to compute basic net income per share (in shares)	114,844	114,882
Dilutive effect of employee stock options (in shares)	9,051	12,851
Weighted-average shares used to compute diluted net income per share (in shares)	123,895	127,733
Net income per share
Basic (in dollars per share)	$ 0.16	$ 0.15
Diluted (in dollars per share)	$ 0.15	$ 0.14

Net Income Per Share (Narrative

Net Income Per Share (Narrative) (Details) - shares shares in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Stock options outstanding (in shares)	24.4	23.1
Stock Options to Purchase Common Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Weighted average options excluded from the computation of diluted net income per share (in shares)	8.5	2.6

Income Taxes - (Narrative) (Det

Income Taxes - (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Income Tax Disclosure [Abstract]
Income tax expense (benefit)	$ 1,779	$ 3,830
Discrete benefit from stock option exercises	2,800
Reduction of deferred tax assets	900	3,200
State income tax expense	$ 900	$ 600