Corcept Therapeutics (CORT) 10-Q 29 Jul 21 2021 Q2 Quarterly report Financial data

Cover Page

Cover Page - shares	6 Months Ended
	Jun. 30, 2021	Jul. 22, 2021
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2021
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		115,926,629
Amendment Flag	false
Document Fiscal Year Focus	2021
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, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 95,430	$ 76,190
Short-term marketable securities	274,552	364,506
Trade receivables, net of allowances	27,620	26,198
Inventory	4,669	4,910
Prepaid expenses and other current assets	8,999	6,697
Total current assets	411,270	478,501
Strategic inventory	14,734	16,247
Operating lease right-of-use asset	1,524	2,509
Property and equipment, net of accumulated depreciation	1,414	1,675
Long-term marketable securities	101,657	36,196
Other assets	4,140	5,000
Deferred tax assets, net	33,741	31,603
Total assets	568,480	571,731
Current liabilities:
Accounts payable	9,216	10,554
Accrued clinical expenses	13,113	13,704
Accrued and other liabilities	21,514	21,186
Short-term operating lease liability	1,559	2,050
Total current liabilities	45,402	47,494
Long-term operating lease liability	0	501
Long-term accrued income taxes	403	398
Total liabilities	45,805	48,393
Commitments and contingencies (Note 4)
Stockholders’ equity:
Preferred stock	0	0
Common stock	125	122
Additional paid-in capital	554,154	516,140
Treasury stock	(164,263)	(75,795)
Accumulated other comprehensive income	215	415
Retained earnings	132,444	82,456
Total stockholders’ equity	522,675	523,338
Total liabilities and stockholders’ equity	$ 568,480	$ 571,731

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Statement of Comprehensive Income [Abstract]
Product revenue, net	$ 91,588	$ 88,565	$ 171,025	$ 181,812
Operating expenses:
Cost of sales	1,384	1,234	2,652	3,112
Research and development	28,232	26,497	57,254	52,620
Selling, general and administrative	30,029	25,572	59,538	53,107
Total operating expenses	59,645	53,303	119,444	108,839
Income from operations	31,943	35,262	51,581	72,973
Interest and other income	110	1,010	385	2,481
Income before income taxes	32,053	36,272	51,966	75,454
Income tax expense	(5,530)	(7,945)	(1,978)	(17,062)
Net income	26,523	28,327	49,988	58,392
Other comprehensive income:
Net unrealized gain (loss) on available-for-sale investments, net of tax effect of $16, $(170), $77 and $(190), respectively	(50)	545	(242)	606
Foreign currency translation gain (loss), net of tax	16	(15)	42	(27)
Total comprehensive income	$ 26,489	$ 28,857	$ 49,788	$ 58,971
Basic net income per share (in dollars per share)	$ 0.23	$ 0.25	$ 0.43	$ 0.51
Diluted net income per share (in dollars per share)	$ 0.21	$ 0.23	$ 0.39	$ 0.48
Weighted-average shares outstanding used in computing net income per share
Basic (in shares)	116,294	115,006	116,555	114,790
Diluted (in shares)	126,680	123,234	128,204	122,756

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Statement of Comprehensive Income [Abstract]
Net unrealized income (loss) on available-for-sale investments, tax impact	$ 16	$ (170)	$ 77	$ (190)

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Cash flows from operating activities:
Net income	$ 49,988	$ 58,392
Adjustments to reconcile net income to net cash provided by operations:
Stock-based compensation	21,169	16,407
Deferred income taxes	(2,061)	10,017
Amortization (accretion) of interest income	2,471	(72)
Depreciation and amortization of property and equipment	514	362
Non-cash amortization of right-of-use asset	985	749
Others	0	148
Changes in operating assets and liabilities:
Trade receivables	(1,422)	(2,797)
Inventory	1,858	1,414
Prepaid expenses and other current assets	(2,047)	721
Other assets	860	(1,088)
Accounts payable	(1,304)	(1,251)
Accrued clinical expenses	(591)	4,812
Accrued and other liabilities	333	(628)
Operating lease liability	(992)	(731)
Net cash provided by operating activities	69,761	86,455
Cash flows from investing activities:
Purchases of property and equipment	(245)	(89)
Proceeds from maturities of marketable securities	244,971	153,193
Purchases of marketable securities	(223,268)	(219,314)
Net cash provided by (used in) investing activities	21,458	(66,210)
Cash flows from financing activities:
Proceeds from exercise of stock options, net of issuance costs	8,786	7,347
Repurchase of common stock	(62,711)	(275)
Cash paid to satisfy statutory withholding requirement for net settlement of cashless option exercises	(18,054)	(63)
Net cash (used in) provided by financing activities	(71,979)	7,009
Net increase in cash and cash equivalents	19,240	27,254
Cash and cash equivalents, at beginning of period	76,190	31,269
Cash and cash equivalents, at end of period	95,430	58,523
Supplemental disclosure:
Cost of shares repurchased for net settlement of cashless option exercises	7,704	772
Recognition of right-of-use asset and lease liability	$ 0	$ 775

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Treasury Stock	Accumulated Other Comprehensive Income	Retained Earnings (Accumulated Deficit)
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		480
Purchases of treasury stock (in shares)		(20)
Purchases of treasury stock	(275)			(275)
Stock-based compensation	7,988		7,988
Other comprehensive income (loss), net of tax	49				49
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
Shares purchased to satisfy cost and statutory withholding requirements for net settlement of cashless option exercises	(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 purchased to satisfy cost and statutory withholding requirements for net settlement of cashless option exercises	(100)	(54)
Shares purchased to satisfy cost and statutory withholding requirements for net settlement of cashless option exercises	$ (835)			(835)
Stock-based compensation	8,548		8,548
Other comprehensive income (loss), 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
Beginning balance (in shares) at Dec. 31, 2020		116,735
Beginning balance at Dec. 31, 2020	523,338	$ 122	516,140	(75,795)	415	82,456
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock upon exercise of options (in shares)		1,832
Issuance of common stock upon exercise of options	10,083	$ 2	10,081
Purchases of treasury stock (in shares)		(1,282)
Purchases of treasury stock	(33,540)			(33,540)
Shares purchased to satisfy cost and statutory withholding requirements for net settlement of cashless option exercises		(808)
Shares purchased to satisfy cost and statutory withholding requirements for net settlement of cashless option exercises	(22,520)			(22,520)
Stock-based compensation	10,142		10,142
Other comprehensive income (loss), net of tax	(166)				(166)
Net income	23,465					23,465
Ending balance (in shares) at Mar. 31, 2021		116,477
Ending balance at Mar. 31, 2021	510,802	$ 124	536,363	(131,855)	249	105,921
Beginning balance (in shares) at Dec. 31, 2020		116,735
Beginning balance at Dec. 31, 2020	$ 523,338	$ 122	516,140	(75,795)	415	82,456
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock upon exercise of options (in shares)	2,700
Shares purchased to satisfy cost and statutory withholding requirements for net settlement of cashless option exercises	(1,000)
Net income	$ 49,988
Ending balance (in shares) at Jun. 30, 2021		115,821
Ending balance at Jun. 30, 2021	522,675	$ 125	554,154	(164,263)	215	132,444
Beginning balance (in shares) at Mar. 31, 2021		116,477
Beginning balance at Mar. 31, 2021	$ 510,802	$ 124	536,363	(131,855)	249	105,921
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock upon exercise of options (in shares)	900	855
Issuance of common stock upon exercise of options	$ 6,661	$ 1	6,660
Purchases of treasury stock (in shares)		(1,365)
Purchases of treasury stock	$ (29,170)			(29,170)
Shares purchased to satisfy cost and statutory withholding requirements for net settlement of cashless option exercises	(100)	(146)
Shares purchased to satisfy cost and statutory withholding requirements for net settlement of cashless option exercises	$ (3,238)			(3,238)
Stock-based compensation	11,131		11,131
Other comprehensive income (loss), net of tax	(34)				(34)
Net income	26,523					26,523
Ending balance (in shares) at Jun. 30, 2021		115,821
Ending balance at Jun. 30, 2021	$ 522,675	$ 125	$ 554,154	$ (164,263)	$ 215	$ 132,444

Basis of Presentation and Summa

Basis of Presentation and Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2021
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 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, 2021 and (ii) condensed consolidated statements of comprehensive income and stockholders’ equity for the three- and six-month periods ended June 30, 2021 and 2020 and (iii) condensed consolidated statements of cash flows for the six-month periods ended June 30, 2021 and 2020. 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-month periods ended June 30, 2021 are not necessarily indicative of the results for the remainder of 2021 or any other period. These financial statements and notes should be read in conjunction with the consolidated financial statements for the year ended December 31, 2020 included in our Annual Report on Form 10-K. The December 31, 2020 consolidated 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, 2020. Recently Adopted Accounting Pronouncement 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, and is effective for fiscal years, and interim periods within those years, beginning after December 15, 2020. We adopted this standard on January 1, 2021. The adoption had no impact on our condensed consolidated financial statements.

Composition of Certain Balance

Composition of Certain Balance Sheet Items	6 Months Ended
	Jun. 30, 2021
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 $ — $ 1,685 Work in progress 14,379 12,916 Finished goods 5,024 6,556 Total inventory 19,403 21,157 Less strategic inventory classified as non-current (14,734) (16,247) Total inventory classified as current $ 4,669 $ 4,910 Because we rely on a single manufacturer for the active pharmaceutical ingredient (“API”) for Korlym, we have purchased and hold significant quantities of API, including API held in our work in progress inventory. 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 $ 1,034 $ 810 Software 1,485 1,485 Leasehold improvements 1,262 1,233 Total property and equipment 3,781 3,528 Less accumulated depreciation (2,367) (1,853) Property and equipment, net of accumulated depreciation $ 1,414 $ 1,675 Accrued and other liabilities June 30, December 31, (in thousands) Government rebates $ 10,638 $ 9,412 Accrued compensation 7,740 10,144 Professional fees 760 151 Accrued selling and marketing costs 729 665 Legal fees 670 612 Income taxes payable 665 — Other 312 202 Total accrued and other liabilities $ 21,514 $ 21,186 Other assets As of June 30, 2021 and December 31, 2020, Other assets included $3.9 million and $4.8 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, 2021
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 $ 69,303 $ 50,524 Short-term marketable securities 274,552 364,506 Long-term marketable securities 101,657 36,196 Total marketable securities $ 445,512 $ 451,226 The following table presents our available-for-sale securities grouped by asset type: Fair Value June 30, 2021 December 31, 2020 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 $ 103,226 $ 15 $ (38) $ 103,203 $ 96,999 $ 74 $ (9) $ 97,064 Commercial paper Level 2 125,882 — — 125,882 139,791 — — 139,791 Asset-backed securities Level 2 57,007 6 (19) 56,994 39,243 15 (1) 39,257 U.S. treasury securities Level 1 90,127 10 (7) 90,130 124,461 131 (2) 124,590 Money market funds Level 1 69,303 — — 69,303 50,524 — — 50,524 Total marketable securities $ 445,545 $ 31 $ (64) $ 445,512 $ 451,018 $ 220 $ (12) $ 451,226 We estimate the fair value of marketable securities classified as Level 1 using quoted market prices for these or identical 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, 2021 were insignificant. Accordingly, we have not recorded an allowance for credit losses associated with these investments. We do not intend to sell the investments that currently have unrealized losses. It is highly unlikely that we will sell any of our investments before recovery of their amortized cost basis, which may be at maturity. We classified accrued interest on our marketable securities of $1.4 million and $1.3 million as of June 30, 2021 and December 31, 2020, respectively, as prepaid and other current assets on our condensed consolidated balance sheets.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2021
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies There have been no material changes in our obligations under contractual agreements described in our Annual Report on Form 10-K for the year ended December 31, 2020. 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, 2021
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 2021, our Board of Directors authorized a 4.7 million increase in the shares available for grant under the 2012 Plan. During the three and six months ended June 30, 2021, we issued 0.9 million and 2.7 million shares of our common stock upon the exercise of stock options, respectively. Certain option holders exercised their options on a “net exercise” basis, pursuant to which they surrendered to us, and we purchased from them at the current market price, enough shares to cover the exercise price and tax withholding requirements arising from the exercise. During the three and six months ended June 30, 2021, we purchased 0.1 million and 1.0 million shares in connection with such option net exercises, respectively. In connection with the shares purchased, during the three and six months ended June 30, 2021, we paid $1.6 million and $18.1 million, respectively, to satisfy the tax withholding obligations associated with the net-share settlement of these cashless option exercises. We recorded these shares as treasury stock on our condensed consolidated balance sheets, at cost. During the three and six months ended June 30, 2020, we issued 1.0 million and 1.1 million shares of our common stock upon the exercise of stock options, respectively. During each of the three and six months ended June 30, 2020, we purchased 0.1 million shares in connection with net option exercises, at a total cost of $0.1 million. Stock Repurchase Program In November 2020, we announced that our Board of Directors approved a program to repurchase up to $200 million of our common stock (the “Stock Repurchase Program”). Unless it is terminated or suspended prior to its expiration, the Stock Repurchase Program will remain in effect until September 30, 2021. The timing and amount of any repurchases pursuant to it will be determined based on market conditions, stock price and other factors. The Stock Repurchase Program does not require us to acquire any specific number of shares and it may be modified, suspended or discontinued at any time without notice. Repurchases pursuant to the Stock Repurchase Program may be made through a variety of methods, including open market purchases, privately negotiated transactions, block trades and accelerated share repurchase transactions. During the three and six months ended June 30, 2021, we repurchased 1.4 million and 2.6 million shares of common stock under the Stock Repurchase Program in open market transactions at an average price of $21.38 and $23.69 per share, for an aggregate purchase price of $29.2 million and $62.7 million, respectively. As of June 30, 2021, $127.6 million of the current authorization remained available for the repurchase of shares of our common stock. We recorded repurchased shares as treasury stock on our condensed consolidated balance sheets, at cost. As of June 30, 2021 and December 31, 2020 we had 9.5 million and 5.9 million treasury shares outstanding, respectively. Stock-based compensation The following table summarizes our stock-based compensation by account: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (in thousands) Stock-based compensation capitalized in inventory $ 63 $ 59 $ 104 $ 129 Cost of sales 16 15 26 38 Research and development 3,825 2,794 7,330 5,399 Selling, general and administrative 7,227 5,680 13,813 10,970 Total stock-based compensation $ 11,131 $ 8,548 $ 21,273 $ 16,536

Net Income Per Share

Net Income Per Share	6 Months Ended
	Jun. 30, 2021
Earnings Per Share [Abstract]
Net Income Per Share	Net Income Per Share We compute basic and diluted net income per share by dividing our net income by the weighted-average number of common shares outstanding during the period, including potentially dilutive shares. 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 following table shows the computation of net income per share for each period: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (in thousands) Numerator: Net income $ 26,523 $ 28,327 $ 49,988 $ 58,392 Denominator: Weighted-average shares used to compute basic net income per share 116,294 115,006 116,555 114,790 Dilutive effect of employee stock options 10,386 8,228 11,649 7,966 Weighted-average shares used to compute diluted net income per share 126,680 123,234 128,204 122,756 Net income per share Basic $ 0.23 $ 0.25 $ 0.43 $ 0.51 Diluted $ 0.21 $ 0.23 $ 0.39 $ 0.48 As of June 30, 2021 and 2020, we had 26.0 million and 26.4 million stock options outstanding, respectively.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2021
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes We recorded income tax expense of $5.5 million and $2.0 million for the three and six months ended June 30, 2021, respectively. In the three and six months ended June 30, 2020, respectively, our income tax expense was $7.9 million and $17.1 million. The decrease is primarily related to lower profit before tax as well as increased excess tax benefits for stock option exercises recorded in the three and six months ended June 30, 2021, as compared to the corresponding periods in 2020. Our effective tax rate differs from the federal statutory rate due to state income taxes and the non-deductible portion of our stock-based compensation, which increased our tax expense, offset by tax benefits for research and development tax credits and the excess tax deduction arising from the exercise of employee stock options, which reduced our taxable income. During the three and six months ended June 30, 2021, unrecognized tax benefits increased by $0.6 million and $0.8 million, respectively. As of June 30, 2021, the Company had unrecognized tax benefits of $6.7 million that, if recognized, would affect the Company’s effective tax rate and approximately $1.6 million of unrecognized tax benefits would not impact the effective tax rate as they would be offset by a corresponding change in valuation allowance. 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 establish a valuation allowance offsetting such assets on our balance sheet. Significant judgment is required in assessing the need for a valuation allowance. We consider all available evidence, including our recent operating results and our forecasts of future taxable income. Other than valuation allowances against our California net deferred tax assets, we have determined that it is more likely than not we will realize the benefit related to all other deferred tax assets. To the extent we increase a valuation allowance, we will include an expense in the Condensed Consolidated Statement of Comprehensive Income in the period in which such determination is made.

Basis of Presentation and Sum_2

Basis of Presentation and Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2021
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, 2021 and (ii) condensed consolidated statements of comprehensive income and stockholders’ equity for the three- and six-month periods ended June 30, 2021 and 2020 and (iii) condensed consolidated statements of cash flows for the six-month periods ended June 30, 2021 and 2020. 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-month periods ended June 30, 2021 are not necessarily indicative of the results for the remainder of 2021 or any other period. These financial statements and notes should be read in conjunction with the consolidated financial statements for the year ended December 31, 2020 included in our Annual Report on Form 10-K. The December 31, 2020 consolidated balance sheet was derived from audited financial statements at that date.
Recently Adopted Accounting Pronouncement	Recently Adopted Accounting Pronouncement 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, and is effective for fiscal years, and interim periods within those years, beginning after December 15, 2020. We adopted this standard on January 1, 2021. The adoption had no impact on our condensed consolidated financial statements.

Composition of Certain Balanc_2

Composition of Certain Balance Sheet Items (Tables)	6 Months Ended
	Jun. 30, 2021
Balance Sheet Related Disclosures [Abstract]
Schedule of composition of inventory, current	Inventory June 30, December 31, (in thousands) Raw materials $ — $ 1,685 Work in progress 14,379 12,916 Finished goods 5,024 6,556 Total inventory 19,403 21,157 Less strategic inventory classified as non-current (14,734) (16,247) Total inventory classified as current $ 4,669 $ 4,910
Schedule of composition of inventory, noncurrent	Inventory June 30, December 31, (in thousands) Raw materials $ — $ 1,685 Work in progress 14,379 12,916 Finished goods 5,024 6,556 Total inventory 19,403 21,157 Less strategic inventory classified as non-current (14,734) (16,247) Total inventory classified as current $ 4,669 $ 4,910
Schedule of property and equipment	Property and Equipment June 30, December 31, (in thousands) Furniture and equipment $ 1,034 $ 810 Software 1,485 1,485 Leasehold improvements 1,262 1,233 Total property and equipment 3,781 3,528 Less accumulated depreciation (2,367) (1,853) Property and equipment, net of accumulated depreciation $ 1,414 $ 1,675
Schedule of other accrued liabilities	Accrued and other liabilities June 30, December 31, (in thousands) Government rebates $ 10,638 $ 9,412 Accrued compensation 7,740 10,144 Professional fees 760 151 Accrued selling and marketing costs 729 665 Legal fees 670 612 Income taxes payable 665 — Other 312 202 Total accrued and other liabilities $ 21,514 $ 21,186

Available-for-Sale Securities_2

Available-for-Sale Securities and Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2021
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 $ 69,303 $ 50,524 Short-term marketable securities 274,552 364,506 Long-term marketable securities 101,657 36,196 Total marketable securities $ 445,512 $ 451,226
Schedule of available-for-sale securities	The following table presents our available-for-sale securities grouped by asset type: Fair Value June 30, 2021 December 31, 2020 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 $ 103,226 $ 15 $ (38) $ 103,203 $ 96,999 $ 74 $ (9) $ 97,064 Commercial paper Level 2 125,882 — — 125,882 139,791 — — 139,791 Asset-backed securities Level 2 57,007 6 (19) 56,994 39,243 15 (1) 39,257 U.S. treasury securities Level 1 90,127 10 (7) 90,130 124,461 131 (2) 124,590 Money market funds Level 1 69,303 — — 69,303 50,524 — — 50,524 Total marketable securities $ 445,545 $ 31 $ (64) $ 445,512 $ 451,018 $ 220 $ (12) $ 451,226

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	6 Months Ended
	Jun. 30, 2021
Equity [Abstract]
Summary of stock-based compensation	The following table summarizes our stock-based compensation by account: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (in thousands) Stock-based compensation capitalized in inventory $ 63 $ 59 $ 104 $ 129 Cost of sales 16 15 26 38 Research and development 3,825 2,794 7,330 5,399 Selling, general and administrative 7,227 5,680 13,813 10,970 Total stock-based compensation $ 11,131 $ 8,548 $ 21,273 $ 16,536

Net Income Per Share (Tables)

Net Income Per Share (Tables)	6 Months Ended
	Jun. 30, 2021
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, 2021 2020 2021 2020 (in thousands) Numerator: Net income $ 26,523 $ 28,327 $ 49,988 $ 58,392 Denominator: Weighted-average shares used to compute basic net income per share 116,294 115,006 116,555 114,790 Dilutive effect of employee stock options 10,386 8,228 11,649 7,966 Weighted-average shares used to compute diluted net income per share 126,680 123,234 128,204 122,756 Net income per share Basic $ 0.23 $ 0.25 $ 0.43 $ 0.51 Diluted $ 0.21 $ 0.23 $ 0.39 $ 0.48

Basis of Presentation and Sum_3

Basis of Presentation and Summary of Significant Accounting Policies (Details)	6 Months Ended
	Jun. 30, 2021series
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, 2021	Dec. 31, 2020
Balance Sheet Related Disclosures [Abstract]
Raw materials	$ 0	$ 1,685
Work in progress	14,379	12,916
Finished goods	5,024	6,556
Total inventory	19,403	21,157
Less strategic inventory classified as non-current	(14,734)	(16,247)
Total inventory classified as current	$ 4,669	$ 4,910

Composition of Certain Balanc_4

Composition of Certain Balance Sheet Items - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 3,781	$ 3,528
Less accumulated depreciation	(2,367)	(1,853)
Property and equipment, net of accumulated depreciation	1,414	1,675
Furniture and equipment
Property, Plant and Equipment [Line Items]
Total property and equipment	1,034	810
Software
Property, Plant and Equipment [Line Items]
Total property and equipment	1,485	1,485
Leasehold improvements
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 1,262	$ 1,233

Composition of Certain Balanc_5

Composition of Certain Balance Sheet Items - Schedule of Other Accrued Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Balance Sheet Related Disclosures [Abstract]
Government rebates	$ 10,638	$ 9,412
Accrued compensation	7,740	10,144
Professional fees	760	151
Accrued selling and marketing costs	729	665
Legal fees	670	612
Income taxes payable	665	0
Other	312	202
Total accrued and other liabilities	$ 21,514	$ 21,186

Composition of Certain Balanc_6

Composition of Certain Balance Sheet Items - Narrative (Details) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Balance Sheet Related Disclosures [Abstract]
Deposits for clinical trials	$ 3.9	$ 4.8

Available-for-Sale Securities_3

Available-for-Sale Securities and Fair Value Measurements - Summary of the classification of available-for-sale securities in condensed consolidated balance sheets (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Debt Securities, Available-for-sale [Line Items]
Total marketable securities	$ 445,512	$ 451,226
Cash equivalents
Debt Securities, Available-for-sale [Line Items]
Total marketable securities	69,303	50,524
Short-term marketable securities
Debt Securities, Available-for-sale [Line Items]
Total marketable securities	274,552	364,506
Long-term marketable securities
Debt Securities, Available-for-sale [Line Items]
Total marketable securities	$ 101,657	$ 36,196

Available-for-Sale Securities_4

Available-for-Sale Securities and Fair Value Measurements - Schedule of Available-for-Sale Securities (Details) - Estimate of fair value measurement - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 445,545	$ 451,018
Gross Unrealized Gains	31	220
Gross Unrealized Losses	(64)	(12)
Estimated Fair Value	445,512	451,226
Corporate bonds | Level 2
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	103,226	96,999
Gross Unrealized Gains	15	74
Gross Unrealized Losses	(38)	(9)
Estimated Fair Value	103,203	97,064
Commercial paper | Level 2
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	125,882	139,791
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Estimated Fair Value	125,882	139,791
Asset-backed securities | Level 2
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	57,007	39,243
Gross Unrealized Gains	6	15
Gross Unrealized Losses	(19)	(1)
Estimated Fair Value	56,994	39,257
U.S. treasury securities | Level 1
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	90,127	124,461
Gross Unrealized Gains	10	131
Gross Unrealized Losses	(7)	(2)
Estimated Fair Value	90,130	124,590
Money market funds | Level 1
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	69,303	50,524
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Estimated Fair Value	$ 69,303	$ 50,524

Available-for-Sale Securities_5

Available-for-Sale Securities and Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Interest receivable, current	$ 1.4	$ 1.3
Maximum maturity period	2 years
Weighted average maturity period	8 months
Minimum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long term marketable securities, remaining maturity	14 months
Maximum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long term marketable securities, remaining maturity	21 months

Commitments and Contingencies (

Commitments and Contingencies (Details)	6 Months Ended
	Jun. 30, 2021USD ($)
Commitments and Contingencies Disclosure [Abstract]
Losses for contingent liability	$ 0
Provision for a loss contingency	$ 0

Stockholders' Equity - Narrativ

Stockholders' Equity - Narrative (Details) $ / shares in Units, shares in Millions	1 Months Ended	3 Months Ended				6 Months Ended
	Feb. 28, 2021shares	Jun. 30, 2021USD ($)$ / sharesshares	Mar. 31, 2021USD ($)	Jun. 30, 2020USD ($)shares	Mar. 31, 2020USD ($)	Jun. 30, 2021USD ($)stockOptionPlan$ / sharesshares	Jun. 30, 2020USD ($)shares	Dec. 31, 2020shares	Nov. 30, 2020USD ($)
Shareholders Equity [Line Items]
Number of stock option plans | stockOptionPlan						2
Common shares issued upon exercise of options | shares		0.9		1		2.7	1.1
Shares withheld for tax withholding obligation | shares		0.1		0.1		1	0.1
Payment tax withholding share-based payment arrangement | $		$ 1,600,000		$ 100,000		$ 18,054,000	$ 63,000
Common stock repurchased | $		$ 29,170,000	$ 33,540,000		$ 275,000
Treasury stock, shares | shares		9.5				9.5		5.9
Stock Repurchase Program
Shareholders Equity [Line Items]
Stock repurchase amount | $									$ 200,000,000
Treasury stock shares acquired | shares		1.4				2.6
Common stock repurchased, average price (in dollars per share) | $ / shares		$ 21.38				$ 23.69
Common stock repurchased | $		$ 29,200,000				$ 62,700,000
Stock repurchase program, remaining authorized amount available for repurchase | $		$ 127,600,000				$ 127,600,000
2012 Equity Incentive Award Plan
Shareholders Equity [Line Items]
Increase in shares authorized for grant | shares	4.7

Stockholders' Equity - Summary

Stockholders' Equity - Summary of Stock-Based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation capitalized in inventory	$ 63	$ 59	$ 104	$ 129
Total stock-based compensation	11,131	8,548	21,273	16,536
Cost of sales
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Allocated share-based compensation expense	16	15	26	38
Research and development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Allocated share-based compensation expense	3,825	2,794	7,330	5,399
Selling, general and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Allocated share-based compensation expense	$ 7,227	$ 5,680	$ 13,813	$ 10,970

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, 2021	Mar. 31, 2021	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2021	Jun. 30, 2020
Numerator:
Net income	$ 26,523	$ 23,465	$ 28,327	$ 30,065	$ 49,988	$ 58,392
Denominator:
Weighted-average shares used to compute basic net income per share	116,294		115,006		116,555	114,790
Dilutive effect of employee stock options (in shares)	10,386		8,228		11,649	7,966
Weighted-average shares used to compute diluted net income per share	126,680		123,234		128,204	122,756
Net income per share
Basic (in dollars per share)	$ 0.23		$ 0.25		$ 0.43	$ 0.51
Diluted (in dollars per share)	$ 0.21		$ 0.23		$ 0.39	$ 0.48

Net Income Per Share - Narrativ

Net Income Per Share - Narrative (Details) - shares shares in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Stock options outstanding (in shares)	26	26.4	26	26.4
Stock Options to Purchase Common Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Weighted average options excluded from the computation of diluted net income per share	4.6	13.4	3.5	13

Income taxes (Details)

Income taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Income Tax Disclosure [Abstract]
Income tax expense	$ 5,530	$ 7,945	$ 1,978	$ 17,062
Unrecognized tax benefits, period increase	600		800
Unrecognized tax benefits that would impact effective tax rate	6,700		6,700
Unrecognized tax benefits that would be offset by a change in valuation allowance	$ 1,600		$ 1,600