Corcept Therapeutics (CORT) 10-Q 4 May 20 2020 Q1 Quarterly report Financial data

Cover Page

Cover Page - shares	3 Months Ended
	Mar. 31, 2020	Apr. 30, 2020
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2020
Document Transition Report	false
Entity File Number	000-50679
Entity Registrant Name	CORCEPT THERAPEUTICS INC
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	77-0487658
Entity Address, Address Line One	149 Commonwealth Drive
Entity Address, City or Town	Menlo Park
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	94025
City Area Code	650
Local Phone Number	327-3270
Title of 12(b) Security	Common Stock, $0.001 par value
Trading Symbol	CORT
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		114,601,708
Amendment Flag	false
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1
Entity Central Index Key	0001088856
Current Fiscal Year End Date	--12-31

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 84,477	$ 31,269
Short-term marketable securities	222,838	244,693
Trade receivables, net of allowances	26,684	19,928
Inventory	5,084	5,424
Prepaid expenses and other current assets	5,693	6,044
Total current assets	344,776	307,358
Strategic inventory	11,063	11,981
Operating lease right-of-use asset	3,082	3,446
Property and equipment, net of accumulated depreciation	880	1,050
Long-term marketable securities	41,690	39,352
Other assets	3,441	3,448
Deferred tax assets, net	40,562	45,677
Total assets	445,494	412,312
Current liabilities:
Accounts payable	4,976	7,537
Accrued clinical expenses	7,938	6,477
Accrued and other liabilities	19,590	23,269
Short-term operating lease liability	1,571	1,558
Total current liabilities	34,075	38,841
Long-term operating lease liability	1,541	1,903
Long-term accrued income taxes	389	386
Total liabilities	36,005	41,130
Stockholders’ equity:
Preferred stock	0	0
Common stock	120	120
Additional paid-in capital	465,528	457,060
Treasury stock	(62,979)	(62,704)
Accumulated other comprehensive income	310	261
Retained earnings (accumulated deficit)	6,510	(23,555)
Total stockholders’ equity	409,489	371,182
Total liabilities and stockholders’ equity	$ 445,494	$ 412,312

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Statement of Comprehensive Income [Abstract]
Product revenue, net	$ 93,247	$ 64,829
Operating expenses:
Cost of sales	1,878	1,240
Research and development	26,123	20,244
Selling, general and administrative	27,535	24,389
Total operating expenses	55,536	45,873
Income from operations	37,711	18,956
Interest and other income	1,471	1,097
Income before income taxes	39,182	20,053
Income tax expense	(9,117)	(1,779)
Net income	30,065	18,274
Other comprehensive income (loss):
Net unrealized gain on available-for-sale investments, net of tax impact of $(20) and $(52), respectively	61	164
Foreign currency translation loss, net of tax	(12)	0
Total comprehensive income	$ 30,114	$ 18,438
Basic net income per share (in dollars per share)	$ 0.26	$ 0.16
Diluted net income per share (in dollars per share)	$ 0.25	$ 0.15
Weighted-average shares outstanding used in computing net income per share
Basic (in shares)	114,575	114,844
Diluted (in shares)	122,226	123,895

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Statement of Comprehensive Income [Abstract]
Net unrealized income (loss) on available-for-sale investments, tax impact	$ (20)	$ (52)

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Cash flows from operating activities:
Net income	$ 30,065	$ 18,274
Adjustments to reconcile net income to net cash generated from operations:
Stock-based compensation	7,918	6,696
Deferred income taxes	5,095	926
Accretion of interest income	(177)	(634)
Depreciation and amortization of property and equipment	238	96
Non-cash amortization of right-of-use asset	364	413
Changes in operating assets and liabilities:
Trade receivables	(6,756)	(1,630)
Inventory	1,328	910
Prepaid expenses and other current assets	351	1,999
Other assets	7	(25)
Accounts payable	(2,600)	953
Accrued clinical expenses	1,461	1,016
Accrued and other liabilities	(3,676)	(4,956)
Operating lease liabilities	(349)	(357)
Net cash provided by operating activities	33,269	23,681
Cash flows from investing activities:
Purchases of property and equipment	(42)	(257)
Proceeds from maturities of marketable securities	68,245	70,825
Purchases of marketable securities	(48,469)	(70,935)
Net cash provided by (used in) investing activities	19,734	(367)
Cash flows from financing activities:
Proceeds from issuance of common stock upon exercise of options, net of issuance costs	480	2,435
Repurchase of common stock	(275)	(13,555)
Cash paid to satisfy statutory withholding requirement for net settlement of cashless option exercise	0	(4,169)
Net cash provided by (used in) financing activities	205	(15,289)
Net increase in cash and cash equivalents	53,208	8,025
Cash and cash equivalents, at beginning of period	31,269	41,625
Cash and cash equivalents, at end of period	84,477	49,650
Supplemental disclosure:
Exercise price of shares tendered in net settlement of cashless option exercise	0	931
Recognition of right-of-use asset and lease liability	$ 0	$ 1,878

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 Income (Loss)	Retained Earnings (Accumulated Deficit)
Beginning balance (in shares) at Dec. 31, 2018		115,031
Beginning balance at Dec. 31, 2018	$ 275,882	$ 117	$ 417,228	$ (23,657)	$ (70)	$ (117,736)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock upon exercise of options (in shares)	1,500	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 related to employee and director options	6,724		6,724
Other comprehensive income, 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)
Beginning balance (in shares) at Dec. 31, 2019		114,549
Beginning balance at Dec. 31, 2019	$ 371,182	$ 120	457,060	(62,704)	261	(23,555)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock upon exercise of options (in shares)	100	67
Issuance of common stock upon exercise of options	$ 480	$ 0	480
Stock-based compensation related to employee and director options	7,988		7,988
Other comprehensive income, net of tax	49				49
Purchases of treasury stock (in shares)		(20)
Purchases of treasury stock	(275)			(275)
Net income	30,065					30,065
Ending balance (in shares) at Mar. 31, 2020		114,596
Ending balance at Mar. 31, 2020	$ 409,489	$ 120	$ 465,528	$ (62,979)	$ 310	$ 6,510

Basis of Presentation and Summa

Basis of Presentation and Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2020
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 is a commercial-stage pharmaceutical company engaged in the discovery and development of medications that treat severe metabolic, oncologic and psychiatric disorders by modulating the effect of the hormone cortisol. In 2012, the U.S. Food and Drug Administration (“FDA”) approved Korlym ® (“mifepristone”) 300 mg tablets, as a once-daily oral medication for the 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 four structurally distinct series of selective cortisol modulators, consisting of more than 1,000 compounds. We are developing compounds from these series as potential treatments for a broad range of serious disorders. We were incorporated in the State of Delaware in May 1998. Our headquarters are located in Menlo Park, California. Basis of Presentation We have prepared the following 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: (i) condensed consolidated balance sheet as of March 31, 2020, (ii) statements of comprehensive income and stockholders’ equity for the three months ended March 31, 2020 and 2019 and (iii) statements of cash flows for the three months ended March 31, 2020 and 2019. These 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, 2020 are not necessarily indicative of the results for the remainder of 2020 or any other period. These financial statements and notes should be read in conjunction with the financial statements for the year ended December 31, 2019 included in our Annual Report on Form 10-K. The December 31, 2019 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, 2019 except for the adoption of the accounting pronouncements set forth below. Recently Adopted Accounting Pronouncements 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. We adopted this standard on January 1, 2020 using the modified retrospective approach with the cumulative effect of the adoption recorded as an adjustment to retained earnings. It had no impact on our condensed 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 additional information. This standard is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019. We adopted this standard on January 1, 2020 using the modified retrospective approach with the cumulative effect of the adoption recorded as an adjustment to retained earnings. It had no impact on our condensed 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 recognize as assets. This standard is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019. We adopted this standard on January 1, 2020 using the modified retrospective approach with the cumulative effect of the adoption recorded as an adjustment to retained earnings. It had no impact on our condensed consolidated financial statements. Recently Issued Accounting Pronouncements Not Yet Adopted In December 2019, the FASB issued ASU No. 2019-12 (ASC Topic 740), “Simplifying the Accounting for Income Taxes.” This standard simplifies accounting for income taxes by removing certain exceptions to the general principles and

Composition of Certain Balance

Composition of Certain Balance Sheet Items	3 Months Ended
	Mar. 31, 2020
Balance Sheet Related Disclosures [Abstract]
Composition of certain balance sheet items	Composition of Certain Balance Sheet Items Inventory March 31, December 31, (in thousands) Raw materials $ — $ 1,389 Work in progress 10,024 10,086 Finished goods 6,123 5,930 Total inventory 16,147 17,405 Less strategic inventory classified as non-current (11,063) (11,981) Total inventory classified as current $ 5,084 $ 5,424 Because we rely on a single manufacturer for the active pharmaceutical ingredient (“API”) for Korlym, we have purchased and hold significant quantities of API. We classify inventory we do not expect to sell within 12 months of the balance sheet date as “Strategic Inventory,” a long-term asset. Property and Equipment March 31, December 31, (in thousands) Furniture and equipment $ 304 $ 304 Software 1,609 1,541 Leasehold improvements 533 533 2,446 2,378 Less accumulated depreciation (1,566) (1,328) $ 880 $ 1,050 Accrued and other liabilities March 31, December 31, (in thousands) Government rebates $ 9,275 $ 8,209 Income taxes payable 4,210 472 Accrued compensation 3,837 12,331 Accrued selling and marketing costs 707 491 Legal fees 697 1,087 Professional fees 421 367 Accrued manufacturing costs 180 33 Other 263 279 Total accrued and other liabilities $ 19,590 $ 23,269

Available-for-Sale Securities a

Available-for-Sale Securities and Fair Value Measurements	3 Months Ended
	Mar. 31, 2020
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 The available-for-sale securities in our Condensed Consolidated Balance Sheets are as follows: March 31, December 31, (in thousands) Cash equivalents $ 67,227 $ 18,461 Short-term marketable securities 222,838 244,693 Long-term marketable securities 41,690 39,352 Total marketable securities $ 331,755 $ 302,506 The following table presents our available-for-sale securities grouped by asset type: Fair Value March 31, 2020 December 31, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value (in thousands) Corporate bonds Level 2 $ 115,877 $ 22 $ (300) $ 115,599 $ 109,780 $ 136 $ (6) $ 109,910 Commercial paper Level 2 34,191 — — 34,191 41,237 — — 41,237 Asset-backed securities Level 2 39,803 9 (93) 39,719 57,195 63 (5) 57,253 Repurchase agreements Level 2 — — — — 18,000 — — 18,000 U.S. treasury securities Level 1 74,337 682 — 75,019 75,574 71 — 75,645 Money market funds Level 1 67,227 — — 67,227 461 — — 461 Total Marketable securities $ 331,435 $ 713 $ (393) $ 331,755 $ 302,247 $ 270 $ (11) $ 302,506 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. We periodically review our debt securities to determine if any of our investments is impaired due to credit-related or other issues. If the fair value of our investment in any debt security is less than our amortized cost basis, we determine whether an allowance for credit losses is appropriate by assessing quantitative and subjective factors including, but not limited to, the nature of security, changes in credit ratings, analyst reports concerning the security’s issuer and industry, interest rate fluctuations and general market conditions. Unrealized losses on our available-for-sale debt securities as of March 31, 2020 were not significant and were primarily due to changes in interest rates, and not increased credit risk. Accordingly, we have not recorded an allowance for credit losses associated with these investments. We do not intend to sell the investments that are currently in an unrealized loss position, and it is highly unlikely that we will be required to sell the investments before recovery of their full amortized cost basis, which will most likely be at maturity We classified accrued interest on our marketable securities of $1.4 million and $1.0 million as of March 31, 2020 and December 31, 2019, respectively, within prepaid and other current assets on our condensed consolidated balance sheet.

Leases

Leases	3 Months Ended
	Mar. 31, 2020
Leases [Abstract]
Leases	LeasesWe lease our office facilities in Menlo Park, California. On January 1, 2019, we recognized a right-of-use asset and a corresponding lease liability of $1.9 million. Effective October 1, 2019, we amended the lease to extend its term from March 31, 2020 to March 31, 2022 and to add more space beginning April 1, 2020. As a result of this amendment, we recognized an additional right-of-use asset and corresponding lease liability of $3.0 million. The right-of-use asset and lease liability recognized equals the present value of the remaining payments due under our amended lease. As our operating lease does not include an expressly stated implicit interest rate, we calculated the present value of remaining lease payments using a discount rate equal to the interest rate we would pay on a loan with monthly payments and a term equal to the monthly payments and remaining term of our lease. We recognize operating lease payments as expenses using the straight-line method over the term of the lease. Operating lease expense for each of the three months ended March 31, 2020 and 2019 was approximately $0.4 million. For any future operating lease transactions, we will recognize operating lease right-of-use assets and liabilities equal to the present value of the expected lease payments at the lease commencement date. Our right-of-use assets and related lease liabilities were as follows: Three Months Ended March 31, 2020 Three Months Ended March 31, 2019 (in thousands) Cash paid for operating lease liability $ 391 $ 379 Right-of-use assets obtained in exchange for new operating lease liability $ — $ 1,878 Weighted-average remaining lease term 24 months 12 months Weighted-average discount rate 5.0 % 5.0 % As of March 31, 2020, future minimum lease payments under non-cancelable operating leases were as follows (in thousands ): 2020 (remainder) $ 1,598 2021 2,130 2022 535 4,263 Less imputed interest (1,151) Total lease liabilities $ 3,112

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies In March 2020, to ensure we have sufficient API to meet future demand for Korlym tablets, we committed to purchase an additional 400 kilograms of API from Produits Chimiques Auxiliaires et de Synthese SA (“PCAS,” a member of the Seqens Group) for a total price of $5.9 million. There have been no other material changes in our obligations under contractual agreements described in our Annual Report on Form 10-K for the year ended December 31, 2019. 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 under 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.

Stockholders' Equity

Stockholders' Equity	3 Months Ended
	Mar. 31, 2020
Equity [Abstract]
Stockholders' 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 2020, 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, 2020, we issued 0.1 million shares of our common stock upon the exercise of stock options, compared to 1.5 million shares during the same period of 2019. The following table summarizes our stock-based compensation: Three Months Ended March 31, 2020 2019 (in thousands) Stock-based compensation capitalized in inventory $ 70 $ 28 Cost of sales 23 28 Research and development 2,605 1,979 Selling, general and administrative 5,290 4,689 Total stock-based compensation $ 7,988 $ 6,724

Net Income Per Share

Net Income Per Share	3 Months Ended
	Mar. 31, 2020
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 condensed consolidated 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 March 31, 2020 2019 (in thousands) Numerator: Net income $ 30,065 $ 18,274 Denominator: Weighted-average shares used to compute basic net income per share 114,575 114,844 Dilutive effect of employee stock options 7,651 9,051 Weighted-average shares used to compute diluted net income per share 122,226 123,895 Net income per share Basic $ 0.26 $ 0.16 Diluted $ 0.25 $ 0.15 As of March 31, 2020 and 2019, we had 27.0 million and 24.4 million stock options outstanding, respectively.

Income taxes

Income taxes	3 Months Ended
	Mar. 31, 2020
Income Tax Disclosure [Abstract]
Income taxes	Income taxes We recorded income tax expense of $9.1 million for the three months ended March 31, 2020, net of discrete benefits related to stock option exercises and dispositions of $0.1 million. Income tax expense for the three months ended March 31, 2020 consisted primarily of reductions in our deferred tax assets of $5.1 million caused by utilization of our federal and state net operating losses and research tax credits, and income tax expense of $4.0 million for federal and in states where we do not have net operating loss carryforwards. In the three months ended March 31, 2019, our income tax expense was $1.8 million, consisting primarily of reductions of $0.9 million in our deferred tax assets caused by utilization of our federal and state net operating losses, and income tax expense of $0.9 million in states where we do not have net operating loss carryforwards. 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 excess tax deduction arising from the exercise of employee stock options, which reduced our tax expense. Each quarter, we assess the likelihood that we will generate sufficient taxable income to use our federal and state deferred tax assets. If we believe that recovery of these deferred tax assets is not more likely than not, we will establish a valuation allowance. Significant judgment is required in determining any valuation allowance recorded against deferred tax assets. In assessing the need for a valuation allowance, we consider all available evidence, including recent operating results, projections of future taxable income, our ability to utilize net operating losses and tax credit carryforwards, and the feasibility of tax planning strategies. Other than valuation allowances against our California net deferred tax assets, we have determined that it is more likely than not we will realize the benefit related to all other deferred tax assets. To the extent we increase a valuation allowance, we will include an expense in the Condensed Consolidated Statement of Comprehensive Income in the period in which such determination is made. On March 27, 2020, President Trump signed into U.S. federal law the CARES Act, which provides emergency assistance and health care for individuals, families, and businesses affected by the COVID-19 pandemic. Based on our preliminary analysis, the relief provisions will not have a material impact on our condensed consolidated financial statements.

Basis of Presentation and Sum_2

Basis of Presentation and Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2020
Accounting Policies [Abstract]
Basis of presentation	Basis of Presentation We have prepared the following 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: (i) condensed consolidated balance sheet as of March 31, 2020, (ii) statements of comprehensive income and stockholders’ equity for the three months ended March 31, 2020 and 2019 and (iii) statements of cash flows for the three months ended March 31, 2020 and 2019. These 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, 2020 are not necessarily indicative of the results for the remainder of 2020 or any other period. These financial statements and notes should be read in conjunction with the financial statements for the year ended December 31, 2019 included in our Annual Report on Form 10-K. The December 31, 2019 balance sheet was derived from audited financial statements at that date.
Recently adopted accounting pronouncements and recently issued accounting pronouncements not yet adopted	Recently Adopted Accounting Pronouncements 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. We adopted this standard on January 1, 2020 using the modified retrospective approach with the cumulative effect of the adoption recorded as an adjustment to retained earnings. It had no impact on our condensed 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 additional information. This standard is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019. We adopted this standard on January 1, 2020 using the modified retrospective approach with the cumulative effect of the adoption recorded as an adjustment to retained earnings. It had no impact on our condensed 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 recognize as assets. This standard is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019. We adopted this standard on January 1, 2020 using the modified retrospective approach with the cumulative effect of the adoption recorded as an adjustment to retained earnings. It had no impact on our condensed consolidated financial statements. Recently Issued Accounting Pronouncements Not Yet Adopted In December 2019, the FASB issued ASU No. 2019-12 (ASC Topic 740), “Simplifying the Accounting for Income Taxes.” This standard simplifies accounting for income taxes by removing certain exceptions to the general principles and
Income taxes	Each quarter, we assess the likelihood that we will generate sufficient taxable income to use our federal and state deferred tax assets. If we believe that recovery of these deferred tax assets is not more likely than not, we will establish a valuation allowance. Significant judgment is required in determining any valuation allowance recorded against deferred tax assets. In assessing the need for a valuation allowance, we consider all available evidence, including recent operating results, projections of future taxable income, our ability to utilize net operating losses and tax credit carryforwards, and the feasibility of tax planning strategies. Other than valuation allowances against our California net deferred tax assets, we have determined that it is more likely than not we will realize the benefit related to all other deferred tax assets. To the extent we increase a valuation allowance, we will include an expense in the Condensed Consolidated Statement of Comprehensive Income in the period in which such determination is made.

Composition of Certain Balanc_2

Composition of Certain Balance Sheet Items (Tables)	3 Months Ended
	Mar. 31, 2020
Balance Sheet Related Disclosures [Abstract]
Schedule of composition of inventory, current	Inventory March 31, December 31, (in thousands) Raw materials $ — $ 1,389 Work in progress 10,024 10,086 Finished goods 6,123 5,930 Total inventory 16,147 17,405 Less strategic inventory classified as non-current (11,063) (11,981) Total inventory classified as current $ 5,084 $ 5,424
Schedule of composition of inventory, noncurrent	Inventory March 31, December 31, (in thousands) Raw materials $ — $ 1,389 Work in progress 10,024 10,086 Finished goods 6,123 5,930 Total inventory 16,147 17,405 Less strategic inventory classified as non-current (11,063) (11,981) Total inventory classified as current $ 5,084 $ 5,424
Schedule of property and equipment	Property and Equipment March 31, December 31, (in thousands) Furniture and equipment $ 304 $ 304 Software 1,609 1,541 Leasehold improvements 533 533 2,446 2,378 Less accumulated depreciation (1,566) (1,328) $ 880 $ 1,050
Schedule of other accrued liabilities	Accrued and other liabilities March 31, December 31, (in thousands) Government rebates $ 9,275 $ 8,209 Income taxes payable 4,210 472 Accrued compensation 3,837 12,331 Accrued selling and marketing costs 707 491 Legal fees 697 1,087 Professional fees 421 367 Accrued manufacturing costs 180 33 Other 263 279 Total accrued and other liabilities $ 19,590 $ 23,269

Available-for-Sale Securities_2

Available-for-Sale Securities and Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2020
Available For Sale Securities And Fair Value Measurements [Abstract]
Summary of the classification of available-for-sale securities in condensed consolidated balance sheets	The available-for-sale securities in our Condensed Consolidated Balance Sheets are as follows: March 31, December 31, (in thousands) Cash equivalents $ 67,227 $ 18,461 Short-term marketable securities 222,838 244,693 Long-term marketable securities 41,690 39,352 Total marketable securities $ 331,755 $ 302,506
Schedule of available-for-sale securities	The following table presents our available-for-sale securities grouped by asset type: Fair Value March 31, 2020 December 31, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value (in thousands) Corporate bonds Level 2 $ 115,877 $ 22 $ (300) $ 115,599 $ 109,780 $ 136 $ (6) $ 109,910 Commercial paper Level 2 34,191 — — 34,191 41,237 — — 41,237 Asset-backed securities Level 2 39,803 9 (93) 39,719 57,195 63 (5) 57,253 Repurchase agreements Level 2 — — — — 18,000 — — 18,000 U.S. treasury securities Level 1 74,337 682 — 75,019 75,574 71 — 75,645 Money market funds Level 1 67,227 — — 67,227 461 — — 461 Total Marketable securities $ 331,435 $ 713 $ (393) $ 331,755 $ 302,247 $ 270 $ (11) $ 302,506

Leases (Tables)

Leases (Tables)	3 Months Ended
	Mar. 31, 2020
Leases [Abstract]
Schedule of information of leases asset and liabilities	Our right-of-use assets and related lease liabilities were as follows: Three Months Ended March 31, 2020 Three Months Ended March 31, 2019 (in thousands) Cash paid for operating lease liability $ 391 $ 379 Right-of-use assets obtained in exchange for new operating lease liability $ — $ 1,878 Weighted-average remaining lease term 24 months 12 months Weighted-average discount rate 5.0 % 5.0 %
Schedule of future minimum lease payments under non-cancelable operating leases	As of March 31, 2020, future minimum lease payments under non-cancelable operating leases were as follows (in thousands ): 2020 (remainder) $ 1,598 2021 2,130 2022 535 4,263 Less imputed interest (1,151) Total lease liabilities $ 3,112

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	3 Months Ended
	Mar. 31, 2020
Equity [Abstract]
Summary of stock-based compensation	The following table summarizes our stock-based compensation: Three Months Ended March 31, 2020 2019 (in thousands) Stock-based compensation capitalized in inventory $ 70 $ 28 Cost of sales 23 28 Research and development 2,605 1,979 Selling, general and administrative 5,290 4,689 Total stock-based compensation $ 7,988 $ 6,724

Net Income Per Share (Tables)

Net Income Per Share (Tables)	3 Months Ended
	Mar. 31, 2020
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 March 31, 2020 2019 (in thousands) Numerator: Net income $ 30,065 $ 18,274 Denominator: Weighted-average shares used to compute basic net income per share 114,575 114,844 Dilutive effect of employee stock options 7,651 9,051 Weighted-average shares used to compute diluted net income per share 122,226 123,895 Net income per share Basic $ 0.26 $ 0.16 Diluted $ 0.25 $ 0.15

Basis of Presentation and Sum_3

Basis of Presentation and Summary of Significant Accounting Policies (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2020USD ($)series	Dec. 31, 2019USD ($)	Oct. 01, 2019USD ($)	Jan. 01, 2019USD ($)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Number of series of selective cortisol modulators | series	4
Operating lease right-of-use asset	$ 3,082	$ 3,446
Operating lease liability	$ 3,112
ASU 2016-02
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating lease right-of-use asset				$ 1,900
Operating lease liability			$ 3,000

Composition of Certain Balanc_3

Composition of Certain Balance Sheet Items - Schedule of Composition of Inventory (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Balance Sheet Related Disclosures [Abstract]
Raw materials	$ 0	$ 1,389
Work in progress	10,024	10,086
Finished goods	6,123	5,930
Total inventory	16,147	17,405
Less strategic inventory classified as non-current	(11,063)	(11,981)
Total inventory classified as current	$ 5,084	$ 5,424

Composition of Certain Balanc_4

Composition of Certain Balance Sheet Items - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Property, Plant and Equipment [Line Items]
Proper and equipment and finance lease right-of-use asset, before accumulated depreciation and amortization	$ 2,446	$ 2,378
Less accumulated depreciation	(1,566)	(1,328)
Property and equipment, net	880	1,050
Furniture and equipment
Property, Plant and Equipment [Line Items]
Property and equipment	304	304
Software
Property, Plant and Equipment [Line Items]
Property and equipment	1,609	1,541
Leasehold improvements
Property, Plant and Equipment [Line Items]
Leasehold improvements	$ 533	$ 533

Composition of Certain Balanc_5

Composition of Certain Balance Sheet Items - Schedule of Other Accrued Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Balance Sheet Related Disclosures [Abstract]
Government rebates	$ 9,275	$ 8,209
Income taxes payable	4,210	472
Accrued compensation	3,837	12,331
Accrued selling and marketing costs	707	491
Legal fees	697	1,087
Professional fees	421	367
Accrued manufacturing costs	180	33
Other	263	279
Total accrued and other liabilities	$ 19,590	$ 23,269

Available-for-Sale Securities_3

Available-for-Sale Securities and Fair Value Measurements - Summary of the classification of available-for-sale securities in condensed consolidated balance sheets (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Debt Securities, Available-for-sale [Line Items]
Total marketable securities	$ 331,755	$ 302,506
Cash equivalents
Debt Securities, Available-for-sale [Line Items]
Total marketable securities	67,227	18,461
Short-term marketable securities
Debt Securities, Available-for-sale [Line Items]
Total marketable securities	222,838	244,693
Long-term marketable securities
Debt Securities, Available-for-sale [Line Items]
Total marketable securities	$ 41,690	$ 39,352

Available-for-Sale Securities_4

Available-for-Sale Securities and Fair Value Measurements - Schedule of Available-for-Sale Securities (Details) - Estimate of fair value measurement - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 331,435	$ 302,247
Gross Unrealized Gains	713	270
Gross Unrealized Losses	(393)	(11)
Estimated Fair Value	331,755	302,506
Corporate bonds | Level 2
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	115,877	109,780
Gross Unrealized Gains	22	136
Gross Unrealized Losses	(300)	(6)
Estimated Fair Value	115,599	109,910
Commercial paper | Level 2
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	34,191	41,237
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Estimated Fair Value	34,191	41,237
Asset-backed securities | Level 2
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	39,803	57,195
Gross Unrealized Gains	9	63
Gross Unrealized Losses	(93)	(5)
Estimated Fair Value	39,719	57,253
Repurchase agreements | Level 2
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	0	18,000
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Estimated Fair Value	0	18,000
U.S. treasury securities | Level 1
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	74,337	75,574
Gross Unrealized Gains	682	71
Gross Unrealized Losses	0	0
Estimated Fair Value	75,019	75,645
Money market funds | Level 1
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	67,227	461
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Estimated Fair Value	$ 67,227	$ 461

Available-for-Sale Securities_5

Available-for-Sale Securities and Fair Value Measurements - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Prepaid expenses and other current assets	$ 5,693	$ 6,044
Maximum maturity period	2 years
Weighted average maturity period	5 months
Interest Receivable, Current	$ 1,400	$ 1,000
Minimum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long term marketable securities, remaining maturity	13 months
Maximum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long term marketable securities, remaining maturity	16 months

Leases (Details)

Leases (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019	Oct. 01, 2019	Jan. 01, 2019
Lessee, Lease, Description [Line Items]
Operating lease right-of-use asset	$ 3,082		$ 3,446
Total lease liabilities	3,112
Operating lease expenses	400	$ 400
Cash paid for operating lease liability	391	$ 379
Right-of-use assets obtained in exchange for new operating lease liability	$ 0
Weighted-average remaining lease term	24 months	12 months
Weighted-average discount rate	5.00%	5.00%
Lessee, Operating Lease, Liability, Payment, Due [Abstract]
2020 (remainder)	$ 1,598
2021	2,130
2022	535
Total	4,263
Less imputed interest	$ (1,151)
ASU 2016-02
Lessee, Lease, Description [Line Items]
Operating lease right-of-use asset					$ 1,900
Total lease liabilities				$ 3,000
Right-of-use assets obtained in exchange for new operating lease liability		$ 1,878

Commitments and Contingencies (

Commitments and Contingencies (Details)	3 Months Ended
	Mar. 31, 2020USD ($)
Long-term Purchase Commitment [Line Items]
Losses for contingent liability	$ 0
Provision for a loss contingency	0
PCAS
Long-term Purchase Commitment [Line Items]
Purchase obligation	$ 5,900,000

Stockholders' Equity - Narrativ

Stockholders' Equity - Narrative (Details) $ / shares in Units, $ in Thousands	Feb. 26, 2020USD ($)$ / shares	Feb. 28, 2019shares	Mar. 31, 2020USD ($)stock_option_planshares	Mar. 31, 2019USD ($)shares
Shareholders Equity [Line Items]
Number of stock option plans | stock_option_plan			2
Common shares issued upon exercise of options (in shares)			100,000	1,500,000
Common stock repurchased | $			$ 275	$ 13,555
Chief Executive Officer
Shareholders Equity [Line Items]
Common stock repurchased | $	$ 300
Common stock repurchased, average price (in dollars per share) | $ / shares	$ 13.54
Common Stock
Shareholders Equity [Line Items]
Common shares issued upon exercise of options (in shares)			67,000	1,497,000
2012 Equity Incentive Award Plan
Shareholders Equity [Line Items]
Increase in shares authorized for grant (in shares)		4,600,000

Stockholders' Equity - Summary

Stockholders' Equity - Summary of Stock-Based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation capitalized in inventory	$ 70	$ 28
Total stock-based compensation	7,988	6,724
Cost of sales
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Allocated share-based compensation expense	23	28
Research and development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Allocated share-based compensation expense	2,605	1,979
Selling, general and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Allocated share-based compensation expense	$ 5,290	$ 4,689

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, 2020	Mar. 31, 2019
Numerator:
Net income	$ 30,065	$ 18,274
Denominator:
Weighted-average shares used to compute basic net income per share (in shares)	114,575	114,844
Dilutive effect of employee stock options (in shares)	7,651	9,051
Weighted-average shares used to compute diluted net income per share (in shares)	122,226	123,895
Net income per share
Basic (in dollars per share)	$ 0.26	$ 0.16
Diluted (in dollars per share)	$ 0.25	$ 0.15

Net Income Per Share - Narrativ

Net Income Per Share - Narrative (Details) - shares shares in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Stock options outstanding (in shares)	27	24.4
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)	12.5	8.5

Income taxes (Details)

Income taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Income Tax Disclosure [Abstract]
Income tax expense (benefit)	$ 9,117	$ 1,779
Discrete benefit from stock option exercises	100
Reduction of deferred tax assets	5,100	900
State income tax expense	$ 4,000	$ 900