Corcept Therapeutics (CORT) 10-Q 4 Aug 20 2020 Q2 Quarterly report Financial data

Cover Page

Cover Page - shares	6 Months Ended
	Jun. 30, 2020	Jul. 28, 2020
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 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		115,557,656
Amendment Flag	false
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q2
Entity Central Index Key	0001088856
Current Fiscal Year End Date	--12-31

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 58,523	$ 31,269
Short-term marketable securities	346,835	244,693
Trade receivables, net of allowances	22,725	19,928
Inventory	4,927	5,424
Prepaid expenses and other current assets	5,323	6,044
Total current assets	438,333	307,358
Strategic inventory	11,193	11,981
Operating lease right-of-use asset	3,472	3,446
Property and equipment, net of accumulated depreciation	619	1,050
Long-term marketable securities	4,200	39,352
Other assets	4,536	3,448
Deferred tax assets, net	35,470	45,677
Total assets	497,823	412,312
Current liabilities:
Accounts payable	6,304	7,537
Accrued clinical expenses	11,289	6,477
Accrued and other liabilities	22,631	23,269
Short-term operating lease liability	2,019	1,558
Total current liabilities	42,243	38,841
Long-term operating lease liability	1,486	1,903
Long-term accrued income taxes	396	386
Total liabilities	44,125	41,130
Stockholders’ equity:
Preferred stock	0	0
Common stock	121	120
Additional paid-in capital	481,714	457,060
Treasury stock	(63,814)	(62,704)
Accumulated other comprehensive income	840	261
Retained earnings (accumulated deficit)	34,837	(23,555)
Total stockholders’ equity	453,698	371,182
Total liabilities and stockholders’ equity	$ 497,823	$ 412,312

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Statement of Comprehensive Income [Abstract]
Product revenue, net	$ 88,565	$ 72,257	$ 181,812	$ 137,086
Revenue, Product and Service [Extensible List]	us-gaap:ProductMember	us-gaap:ProductMember	us-gaap:ProductMember	us-gaap:ProductMember
Operating expenses:
Cost of sales	$ 1,234	$ 1,377	$ 3,112	$ 2,617
Research and development	26,497	21,656	52,620	41,900
Selling, general and administrative	25,572	24,591	53,107	48,980
Total operating expenses	53,303	47,624	108,839	93,497
Income from operations	35,262	24,633	72,973	43,589
Interest and other income	1,010	1,178	2,481	2,275
Income before income taxes	36,272	25,811	75,454	45,864
Income tax expense	(7,945)	(5,625)	(17,062)	(7,404)
Net income	28,327	20,186	58,392	38,460
Other comprehensive income (loss):
Net unrealized gain on available-for-sale investments, net of tax impact of $(170), $(73), $(190) and $(124), respectively	545	227	606	391
Foreign currency translation loss, net of tax	(15)	0	(27)	0
Total comprehensive income	$ 28,857	$ 20,413	$ 58,971	$ 38,851
Basic net income per share (in dollars per share)	$ 0.25	$ 0.18	$ 0.51	$ 0.34
Diluted net income per share (in dollars per share)	$ 0.23	$ 0.17	$ 0.48	$ 0.31
Weighted-average shares outstanding used in computing net income per share
Basic (in shares)	115,006	114,340	114,790	114,590
Diluted (in shares)	123,234	121,783	122,756	122,831
Net unrealized income (loss) on available-for-sale investments, tax impact	$ (170)	$ (73)	$ (190)	$ (124)

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Statement of Comprehensive Income [Abstract]
Net unrealized income (loss) on available-for-sale investments, tax impact	$ (170)	$ (73)	$ (190)	$ (124)

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Cash flows from operating activities:
Net income	$ 58,392	$ 38,460
Adjustments to reconcile net income to net cash generated from operations:
Stock-based compensation	16,407	14,432
Deferred income taxes	10,017	5,834
Accretion of interest income	(72)	(1,053)
Depreciation and amortization of property and equipment	362	263
Non-cash amortization of right-of-use asset	749	772
Others	148	0
Changes in operating assets and liabilities:
Trade receivables	(2,797)	(2,186)
Inventory	1,414	(1,543)
Prepaid expenses and other current assets	721	1,538
Other assets	(1,088)	(100)
Accounts payable	(1,251)	(1,299)
Accrued clinical expenses	4,812	2,197
Accrued and other liabilities	(628)	(7,349)
Operating lease liabilities	(731)	(730)
Net cash provided by operating activities	86,455	49,236
Cash flows from investing activities:
Purchases of property and equipment	(89)	(667)
Proceeds from maturities of marketable securities	153,193	130,145
Purchases of marketable securities	(219,314)	(131,001)
Net cash used in investing activities	(66,210)	(1,523)
Cash flows from financing activities:
Proceeds from issuance of common stock upon exercise of options, net of issuance costs	7,347	3,947
Repurchase of common stock	(275)	(30,975)
Cash paid to satisfy statutory withholding requirement for net settlement of cashless option exercise	(63)	(4,169)
Net cash provided by (used in) financing activities	7,009	(31,197)
Net increase in cash and cash equivalents	27,254	16,516
Cash and cash equivalents, at beginning of period	31,269	41,625
Cash and cash equivalents, at end of period	58,523	58,141
Supplemental disclosure:
Exercise price of shares tendered in net settlement of cashless option exercise	772,000	931
Recognition of right-of-use asset and lease liability	$ 775,000	$ 1,878

CONDENSED CONSOLIDATED STATEM_4

CONDENSED 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)		1,497
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, 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)	1,800
Net income	$ 38,460
Ending balance (in shares) at Jun. 30, 2019		113,637
Ending balance at Jun. 30, 2019	298,053	$ 118	436,622	(59,732)	321	(79,276)
Beginning balance (in shares) at Mar. 31, 2019		114,932
Beginning balance at Mar. 31, 2019	$ 285,755	$ 118	427,317	(42,312)	94	(99,462)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock upon exercise of options (in shares)	300	317
Issuance of common stock upon exercise of options	$ 1,514	$ 0	1,514
Stock-based compensation related to employee and director options	7,791		7,791
Other comprehensive income, net of tax	227				227
Purchases of treasury stock (in shares)		(1,612)
Purchases of treasury stock	(17,420)			(17,420)
Net income	20,186					20,186
Ending balance (in shares) at Jun. 30, 2019		113,637
Ending balance at Jun. 30, 2019	298,053	$ 118	436,622	(59,732)	321	(79,276)
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)		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
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)	1,100
Net income	$ 58,392
Ending balance (in shares) at Jun. 30, 2020		115,553
Ending balance at Jun. 30, 2020	453,698	$ 121	481,714	(63,814)	840	34,837
Beginning balance (in shares) at Mar. 31, 2020		114,596
Beginning balance at Mar. 31, 2020	$ 409,489	$ 120	465,528	(62,979)	310	6,510
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock upon exercise of options (in shares)	1,000	1,011
Issuance of common stock upon exercise of options	$ 7,639	$ 1	7,638
Shares tendered to satisfy cost and statutory withholding requirements for net settlement of cashless option exercise (in shares)		(54)
Shares tendered to satisfy cost and statutory withholding requirements for net settlement of cashless option exercise	(835)			(835)
Stock-based compensation related to employee and director options	8,548		8,548
Other comprehensive income, net of tax	530				530
Net income	28,327					28,327
Ending balance (in shares) at Jun. 30, 2020		115,553
Ending balance at Jun. 30, 2020	$ 453,698	$ 121	$ 481,714	$ (63,814)	$ 840	$ 34,837

Basis of Presentation and Summa

Basis of Presentation and Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 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 June 30, 2020, (ii) statements of comprehensive income and stockholders’ equity for the three and six months ended June 30, 2020 and 2019 and (iii) statements of cash flows for the six months ended June 30, 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 and six months ended June 30, 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 for determining 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. 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 clarifying existing guidance. This standard will be effective for fiscal years, and interim periods within those years, beginning after December 15, 2021. Early adoption is permitted. We are assessing the impact of this standard on our consolidated financial statements.

Composition of Certain Balance

Composition of Certain Balance Sheet Items	6 Months Ended
	Jun. 30, 2020
Balance Sheet Related Disclosures [Abstract]
Composition of Certain Balance Sheet Items	Composition of Certain Balance Sheet Items Inventory June 30, December 31, (in thousands) Raw materials $ — $ 1,389 Work in progress 9,413 10,086 Finished goods 6,707 5,930 Total inventory 16,120 17,405 Less strategic inventory classified as non-current (11,193) (11,981) Total inventory classified as current $ 4,927 $ 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 June 30, December 31, (in thousands) Furniture and equipment $ 304 $ 304 Software 1,472 1,541 Leasehold improvements 533 533 2,309 2,378 Less accumulated depreciation (1,690) (1,328) $ 619 $ 1,050 Accrued and other liabilities June 30, December 31, (in thousands) Government rebates $ 9,160 $ 8,209 Accrued compensation 5,615 12,331 Income taxes payable 5,417 472 Legal fees 918 1,087 Accrued selling and marketing costs 664 491 Professional fees 463 367 Accrued manufacturing costs 113 33 Other 281 279 Total accrued and other liabilities $ 22,631 $ 23,269 Other assets As of June 30, 2020 and December 31, 2019, Other assets included $4.4 million and $3.3 million of deposits for clinical trials, respectively.

Available-for-Sale Securities a

Available-for-Sale Securities and Fair Value Measurements	6 Months Ended
	Jun. 30, 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: June 30, December 31, (in thousands) Cash equivalents $ 34,758 $ 18,461 Short-term marketable securities 346,835 244,693 Long-term marketable securities 4,200 39,352 Total marketable securities $ 385,793 $ 302,506 The following table presents our available-for-sale securities grouped by asset type: Fair Value June 30, 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 $ 120,055 $ 352 $ (4) $ 120,403 $ 109,780 $ 136 $ (6) $ 109,910 Commercial paper Level 2 62,107 1 — 62,108 41,237 — — 41,237 Asset-backed securities Level 2 39,560 78 — 39,638 57,195 63 (5) 57,253 Repurchase agreements Level 2 — — — — 18,000 — — 18,000 U.S. treasury securities Level 1 128,449 438 (1) 128,886 75,574 71 — 75,645 Money market funds Level 1 34,758 — — 34,758 461 — — 461 Total Marketable securities $ 384,929 $ 869 $ (5) $ 385,793 $ 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 June 30, 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 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 $1.2 million and $1.0 million as of June 30, 2020 and December 31, 2019, respectively, as prepaid and other current assets on our condensed consolidated balance sheet.

Leases

Leases	6 Months Ended
	Jun. 30, 2020
Leases [Abstract]
Leases	Leases We 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. Effective June 17, 2020, we amended the lease commencement date for the additional space to June 15, 2020. As a result of this amendment, we recognized an additional right-of-use asset and corresponding lease liability of $0.8 million. The right-of-use asset and lease liability recognized equals the present value of the remaining payments due under our amended lease. As the operating lease for our facilities does not include an expressly stated 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 and six months ended June 30, 2020 was approximately $0.4 million and $0.8 million, respectively. 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 June 30, Six Months Ended June 30, 2020 2019 2020 2019 (in thousands) Cash paid for operating lease liability $ 422 $ 391 $ 812 $ 769 Right-of-use assets obtained in exchange for new operating lease liability $ 775 $ — $ 775 $ 1,878 As of June 30, 2020, our operating lease had a weighted average remaining lease term of 21 months and a weighted average discount rate of 4.8 percent. As of June 30, 2020, future minimum lease payments under non-cancelable operating leases were as follows (in thousands ): 2020 (remainder) $ 1,055 2021 2,109 2022 530 3,694 Less imputed interest (189) Total lease liabilities $ 3,505

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 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	6 Months Ended
	Jun. 30, 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 and six months ended June 30, 2020, we issued 1.0 million and 1.1 million shares, respectively, of our common stock upon the exercise of stock options, compared to 0.3 million and 1.8 million shares during the same period of 2019, respectively. Of the shares exercised during the three and six months ended June 30, 2020, 0.1 million were issued as part of a net-share settlement of cashless option exercises. The following table summarizes our stock-based compensation: Three Months Ended June 30, Six Months Ended June 30, 2020 2020 2019 2020 2019 (in thousands) (in thousands) Stock-based compensation capitalized in inventory $ 59 $ 55 $ 129 $ 83 Cost of sales 15 55 38 83 Research and development 2,794 2,505 5,399 4,484 Selling, general and administrative 5,680 5,176 10,970 9,865 Total stock-based compensation $ 8,548 $ 7,791 $ 16,536 $ 14,515

Net Income Per Share

Net Income Per Share	6 Months Ended
	Jun. 30, 2020
Earnings Per Share [Abstract]
Net Income Per Share	Net Income Per ShareWe 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 June 30, Six Months Ended June 30, 2020 2020 2019 2020 2019 (in thousands) (in thousands) Numerator: Net income $ 28,327 $ 20,186 $ 58,392 $ 38,460 Denominator: Weighted-average shares used to compute basic net income per share 115,006 114,340 114,790 114,590 Dilutive effect of employee stock options 8,228 7,443 7,966 8,241 Weighted-average shares used to compute diluted net income per share 123,234 121,783 122,756 122,831 Net income per share Basic $ 0.25 $ 0.18 $ 0.51 $ 0.34 Diluted $ 0.23 $ 0.17 $ 0.48 $ 0.31 As of June 30, 2020 and 2019, we had 26.4 million and 24.7 million stock options outstanding, respectively.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2020
Income Tax Disclosure [Abstract]
Income Taxes	Income taxes We recorded income tax expense of $7.9 million and $17.1 million for the three and six months ended June 30, 2020, net of discrete benefits related to stock option exercises and dispositions of $1.0 million and $1.1 million, respectively. Income tax expense for the three and six months ended June 30, 2020 consisted primarily of reductions in our deferred tax assets of $4.9 million and $10.0 million, respectively, caused by utilization of our federal and state net operating losses and research tax credits, and income tax expense of $3.0 million and $7.0 million, respectively, for federal and in states where we do not have net operating loss carryforwards. In the three and six months ended June 30, 2019, our income tax expense was $5.6 million and $7.4 million, respectively, consisting primarily of reductions of $4.9 million and $5.8 million, respectively, in our deferred tax assets caused by utilization of our federal and state net operating losses, and income tax expense of $0.7 million and $1.6 million, respectively, 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. If we increase a valuation allowance, we will include an expense of equal amount 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. On June 29, 2020, the California governor signed Assembly Bill 85 (“AB 85”) into law. AB 85 limits the use of business incentive tax credits and suspends the use of California net operating losses for 2020, 2021 and 2022 for companies with

Basis of Presentation and Sum_2

Basis of Presentation and Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 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 June 30, 2020, (ii) statements of comprehensive income and stockholders’ equity for the three and six months ended June 30, 2020 and 2019 and (iii) statements of cash flows for the six months ended June 30, 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 and six months ended June 30, 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 for determining 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. 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 clarifying existing guidance. This standard will be effective for fiscal years, and interim periods within those years, beginning after December 15, 2021. Early adoption is permitted. We are assessing the impact of this standard on our consolidated financial statements.
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. If we increase a valuation allowance, we will include an expense of equal amount 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)	6 Months Ended
	Jun. 30, 2020
Balance Sheet Related Disclosures [Abstract]
Schedule of composition of inventory, current	Inventory June 30, December 31, (in thousands) Raw materials $ — $ 1,389 Work in progress 9,413 10,086 Finished goods 6,707 5,930 Total inventory 16,120 17,405 Less strategic inventory classified as non-current (11,193) (11,981) Total inventory classified as current $ 4,927 $ 5,424
Schedule of composition of inventory, noncurrent	Inventory June 30, December 31, (in thousands) Raw materials $ — $ 1,389 Work in progress 9,413 10,086 Finished goods 6,707 5,930 Total inventory 16,120 17,405 Less strategic inventory classified as non-current (11,193) (11,981) Total inventory classified as current $ 4,927 $ 5,424
Schedule of property and equipment	Property and Equipment June 30, December 31, (in thousands) Furniture and equipment $ 304 $ 304 Software 1,472 1,541 Leasehold improvements 533 533 2,309 2,378 Less accumulated depreciation (1,690) (1,328) $ 619 $ 1,050
Schedule of other accrued liabilities	Accrued and other liabilities June 30, December 31, (in thousands) Government rebates $ 9,160 $ 8,209 Accrued compensation 5,615 12,331 Income taxes payable 5,417 472 Legal fees 918 1,087 Accrued selling and marketing costs 664 491 Professional fees 463 367 Accrued manufacturing costs 113 33 Other 281 279 Total accrued and other liabilities $ 22,631 $ 23,269

Available-for-Sale Securities_2

Available-for-Sale Securities and Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 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: June 30, December 31, (in thousands) Cash equivalents $ 34,758 $ 18,461 Short-term marketable securities 346,835 244,693 Long-term marketable securities 4,200 39,352 Total marketable securities $ 385,793 $ 302,506
Schedule of available-for-sale securities	The following table presents our available-for-sale securities grouped by asset type: Fair Value June 30, 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 $ 120,055 $ 352 $ (4) $ 120,403 $ 109,780 $ 136 $ (6) $ 109,910 Commercial paper Level 2 62,107 1 — 62,108 41,237 — — 41,237 Asset-backed securities Level 2 39,560 78 — 39,638 57,195 63 (5) 57,253 Repurchase agreements Level 2 — — — — 18,000 — — 18,000 U.S. treasury securities Level 1 128,449 438 (1) 128,886 75,574 71 — 75,645 Money market funds Level 1 34,758 — — 34,758 461 — — 461 Total Marketable securities $ 384,929 $ 869 $ (5) $ 385,793 $ 302,247 $ 270 $ (11) $ 302,506

Leases (Tables)

Leases (Tables)	6 Months Ended
	Jun. 30, 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 June 30, Six Months Ended June 30, 2020 2019 2020 2019 (in thousands) Cash paid for operating lease liability $ 422 $ 391 $ 812 $ 769 Right-of-use assets obtained in exchange for new operating lease liability $ 775 $ — $ 775 $ 1,878
Schedule of future minimum lease payments under non-cancelable operating leases	As of June 30, 2020, future minimum lease payments under non-cancelable operating leases were as follows (in thousands ): 2020 (remainder) $ 1,055 2021 2,109 2022 530 3,694 Less imputed interest (189) Total lease liabilities $ 3,505

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	6 Months Ended
	Jun. 30, 2020
Equity [Abstract]
Summary of stock-based compensation	The following table summarizes our stock-based compensation: Three Months Ended June 30, Six Months Ended June 30, 2020 2020 2019 2020 2019 (in thousands) (in thousands) Stock-based compensation capitalized in inventory $ 59 $ 55 $ 129 $ 83 Cost of sales 15 55 38 83 Research and development 2,794 2,505 5,399 4,484 Selling, general and administrative 5,680 5,176 10,970 9,865 Total stock-based compensation $ 8,548 $ 7,791 $ 16,536 $ 14,515

Net Income Per Share (Tables)

Net Income Per Share (Tables)	6 Months Ended
	Jun. 30, 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 June 30, Six Months Ended June 30, 2020 2020 2019 2020 2019 (in thousands) (in thousands) Numerator: Net income $ 28,327 $ 20,186 $ 58,392 $ 38,460 Denominator: Weighted-average shares used to compute basic net income per share 115,006 114,340 114,790 114,590 Dilutive effect of employee stock options 8,228 7,443 7,966 8,241 Weighted-average shares used to compute diluted net income per share 123,234 121,783 122,756 122,831 Net income per share Basic $ 0.25 $ 0.18 $ 0.51 $ 0.34 Diluted $ 0.23 $ 0.17 $ 0.48 $ 0.31

Basis of Presentation and Sum_3

Basis of Presentation and Summary of Significant Accounting Policies (Details)	6 Months Ended
	Jun. 30, 2020series
Accounting Policies [Abstract]
Number of series of selective cortisol modulators	4

Composition of Certain Balanc_3

Composition of Certain Balance Sheet Items - Schedule of Composition of Inventory (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Balance Sheet Related Disclosures [Abstract]
Raw materials	$ 0	$ 1,389
Work in progress	9,413	10,086
Finished goods	6,707	5,930
Total inventory	16,120	17,405
Less strategic inventory classified as non-current	(11,193)	(11,981)
Total inventory classified as current	$ 4,927	$ 5,424

Composition of Certain Balanc_4

Composition of Certain Balance Sheet Items - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands	Jun. 30, 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	$ 2,309	$ 2,378
Less accumulated depreciation	(1,690)	(1,328)
Property and equipment, net	619	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	1,472	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	Jun. 30, 2020	Dec. 31, 2019
Balance Sheet Related Disclosures [Abstract]
Government rebates	$ 9,160	$ 8,209
Accrued compensation	5,615	12,331
Income taxes payable	5,417	472
Legal fees	918	1,087
Accrued selling and marketing costs	664	491
Professional fees	463	367
Accrued manufacturing costs	113	33
Other	281	279
Total accrued and other liabilities	$ 22,631	$ 23,269

Composition of Certain Balanc_6

Composition of Certain Balance Sheet Items - Narrative (Details) - USD ($) $ in Millions	Jun. 30, 2020	Dec. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Deposits for clinical trials included in other assets	$ 4.4	$ 3.3

Available-for-Sale Securities_3

Available-for-Sale Securities and Fair Value Measurements - Summary of Classification of Available-for-Sale Securities (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Debt Securities, Available-for-sale [Line Items]
Total marketable securities	$ 385,793	$ 302,506
Cash equivalents
Debt Securities, Available-for-sale [Line Items]
Total marketable securities	34,758	18,461
Short-term marketable securities
Debt Securities, Available-for-sale [Line Items]
Total marketable securities	346,835	244,693
Long-term marketable securities
Debt Securities, Available-for-sale [Line Items]
Total marketable securities	$ 4,200	$ 39,352

Available-for-Sale Securities_4

Available-for-Sale Securities and Fair Value Measurements - Schedule of Available-for-Sale Securities (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Debt Securities, Available-for-sale [Line Items]
Estimated Fair Value	$ 385,793	$ 302,506
Estimate of fair value measurement
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	384,929	302,247
Gross Unrealized Gains	869	270
Gross Unrealized Losses	(5)	(11)
Estimated Fair Value	385,793	302,506
Estimate of fair value measurement | Corporate bonds | Level 2
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	120,055	109,780
Gross Unrealized Gains	352	136
Gross Unrealized Losses	(4)	(6)
Estimated Fair Value	120,403	109,910
Estimate of fair value measurement | Commercial paper | Level 2
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	62,107	41,237
Gross Unrealized Gains	1	0
Gross Unrealized Losses	0	0
Estimated Fair Value	62,108	41,237
Estimate of fair value measurement | Asset-backed securities | Level 2
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	39,560	57,195
Gross Unrealized Gains	78	63
Gross Unrealized Losses	0	(5)
Estimated Fair Value	39,638	57,253
Estimate of fair value measurement | 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
Estimate of fair value measurement | U.S. treasury securities | Level 1
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	128,449	75,574
Gross Unrealized Gains	438	71
Gross Unrealized Losses	(1)	0
Estimated Fair Value	128,886	75,645
Estimate of fair value measurement | Money market funds | Level 1
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	34,758	461
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Estimated Fair Value	$ 34,758	$ 461

Available-for-Sale Securities_5

Available-for-Sale Securities and Fair Value Measurements - Narrative (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
Available For Sale Securities And Fair Value Measurements [Abstract]
Prepaid expenses and other current assets	$ 5,323	$ 6,044
Accrued interest	$ 1,200	$ 1,000
Maximum maturity period	2 years
Weighted average maturity period	6 months
Long term marketable securities, remaining maturity	13 months

Leases (Details)

Leases (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Jun. 17, 2020	Dec. 31, 2019	Oct. 01, 2019	Jan. 01, 2019
Lessee, Lease, Description [Line Items]
Operating lease right-of-use asset	$ 3,472		$ 3,472			$ 3,446
Lease liabilities	3,505		3,505
Operating lease expenses	400		800
Cash paid for operating lease liability	422	$ 391	$ 812	$ 769
Right-of-use assets obtained in exchange for new operating lease liability	$ 775	$ 0
Weighted average remaining lease term	21 months		21 months
Weighted average discount rate	480.00%		480.00%
Lessee, Operating Lease, Liability, Payment, Due [Abstract]
2020 (remainder)	$ 1,055		$ 1,055
2021	2,109		2,109
2022	530		530
Total	3,694		3,694
Less imputed interest	$ (189)		(189)
ASU 2016-02
Lessee, Lease, Description [Line Items]
Operating lease right-of-use asset					$ 800		$ 3,000	$ 1,900
Lease liabilities					$ 800		$ 3,000	$ 1,900
Right-of-use assets obtained in exchange for new operating lease liability			$ 775	$ 1,878

Commitments and Contingencies (

Commitments and Contingencies (Details)	1 Months Ended	6 Months Ended
	Mar. 31, 2020kg	Jun. 30, 2020USD ($)
Long-term Purchase Commitment [Line Items]
Number of additional kilograms of API the company committed to purchase | kg	400
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. 29, 2020shares	Jun. 30, 2020shares	Mar. 31, 2020USD ($)shares	Jun. 30, 2019USD ($)shares	Mar. 31, 2019USD ($)shares	Jun. 30, 2020stock_option_planshares	Jun. 30, 2019shares
Shareholders Equity [Line Items]
Number of stock option plans | stock_option_plan							2
Common shares issued upon exercise of options (in shares)			1,000,000		300,000		1,100,000	1,800,000
Net-share settlement of cashless option exercise (in shares)			100,000				100,000
Common stock repurchased | $				$ 275	$ 17,420	$ 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)			1,011,000	67,000	317,000	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		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation capitalized in inventory	$ 59	$ 55	$ 129	$ 83
Total stock-based compensation	8,548	7,791	16,536	14,515
Cost of sales
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Allocated share-based compensation expense	15	55	38	83
Research and development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Allocated share-based compensation expense	2,794	2,505	5,399	4,484
Selling, general and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Allocated share-based compensation expense	$ 5,680	$ 5,176	$ 10,970	$ 9,865

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				6 Months Ended
	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2020	Jun. 30, 2019
Numerator:
Net income	$ 28,327	$ 30,065	$ 20,186	$ 18,274	$ 58,392	$ 38,460
Denominator:
Weighted-average shares used to compute basic net income per share (in shares)	115,006		114,340		114,790	114,590
Dilutive effect of employee stock options (in shares)	8,228		7,443		7,966	8,241
Weighted-average shares used to compute diluted net income per share (in shares)	123,234		121,783		122,756	122,831
Net income per share
Basic (in dollars per share)	$ 0.25		$ 0.18		$ 0.51	$ 0.34
Diluted (in dollars per share)	$ 0.23		$ 0.17		$ 0.48	$ 0.31

Net Income Per Share - Narrativ

Net Income Per Share - Narrative (Details) - shares shares in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Stock options outstanding (in shares)	26.4	24.7	26.4	24.7
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)	13.4	10.8	13	9.8

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Income Tax Disclosure [Abstract]
Income tax expense (benefit)	$ 7,945	$ 5,625	$ 17,062	$ 7,404
Discrete benefit from stock option exercises	1,000		1,100
Reduction of deferred tax assets	4,900	4,900	10,000	5,800
State income tax expense	$ 3,000	$ 700	$ 7,000	$ 1,600