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 |