Corcept Therapeutics (CORT) 10-Q 5 May 22 2022 Q1 Quarterly report Financial data

Cover Page

Cover Page - shares	3 Months Ended
	Mar. 31, 2022	Apr. 28, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2022
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		106,250,716
Amendment Flag	false
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q1
Entity Central Index Key	0001088856
Current Fiscal Year End Date	--12-31

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 61,862	$ 77,617
Short-term marketable securities	283,665	145,918
Trade receivables, net of allowances	27,178	27,625
Inventory	5,079	4,988
Prepaid expenses and other current assets	10,436	10,315
Total current assets	388,220	266,463
Strategic inventory	13,098	12,962
Operating lease right-of-use asset	2,816	514
Property and equipment, net of accumulated depreciation	726	1,002
Long-term marketable securities	22,566	112,277
Other assets	2,984	3,083
Deferred tax assets, net	37,713	27,455
Total assets	468,123	423,756
Current liabilities:
Accounts payable	9,269	6,908
Accrued research and development expenses	13,051	12,442
Accrued and other liabilities	32,660	27,665
Short-term operating lease liability	2,264	526
Total current liabilities	57,244	47,541
Long-term operating lease liability	552	0
Long-term accrued income taxes payable	2,516	409
Total liabilities	60,312	47,950
Stockholders’ equity:
Preferred stock	0	0
Common stock	128	127
Treasury stock	(417,448)	(410,411)
Additional paid-in capital	608,717	591,349
Accumulated other comprehensive loss	(1,351)	(227)
Retained earnings	217,765	194,968
Total stockholders’ equity	407,811	375,806
Total liabilities and stockholders’ equity	$ 468,123	$ 423,756

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Statement of Comprehensive Income [Abstract]
Product revenue, net	$ 93,688	$ 79,437
Operating expenses:
Cost of sales	1,250	1,268
Research and development	28,120	29,022
Selling, general and administrative	37,549	29,509
Total operating expenses	66,919	59,799
Income from operations	26,769	19,638
Interest and other income	80	275
Income before income taxes	26,849	19,913
Income tax (expense) benefit	(4,052)	3,552
Net income	22,797	23,465
Other comprehensive income:
Unrealized loss on available-for-sale investments, net of tax effect of $323 and $61, respectively	(1,019)	(192)
Foreign currency translation (loss) gain, net of tax	(105)	26
Total comprehensive income	$ 21,673	$ 23,299
Basic net income per share (in dollars per share)	$ 0.22	$ 0.20
Diluted net income per share (in dollars per share)	$ 0.20	$ 0.18
Weighted-average shares outstanding used in computing net income per share
Basic (in shares)	106,012	116,818
Diluted (in shares)	115,037	129,668

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Statement of Comprehensive Income [Abstract]
Net unrealized income (loss) on available-for-sale investments, tax impact	$ 323	$ 61

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Cash flows from operating activities:
Net income	$ 22,797	$ 23,465
Adjustments to reconcile net income to net cash provided by operations:
Stock-based compensation	10,761	10,101
Amortization of interest income	1,106	1,194
Depreciation and amortization of property and equipment	288	254
Deferred income taxes	(9,935)	(5,360)
Non-cash amortization of right-of-use asset	514	489
Changes in operating assets and liabilities:
Trade receivables	447	3,998
Inventory	(163)	866
Prepaid expenses and other current assets	(9)	(2,850)
Accounts payable	2,256	(3,493)
Accrued research and development expenses	609	(138)
Accrued and other liabilities	4,995	(3,217)
Long-term accrued income taxes	2,107	597
Operating lease liability	(526)	(484)
Net cash provided by operating activities	35,247	25,422
Cash flows from investing activities:
Purchases of property and equipment	(12)	(126)
Proceeds from maturities of marketable securities	42,127	124,230
Purchases of marketable securities	(92,611)	(127,388)
Net cash used in investing activities	(50,496)	(3,284)
Cash flows from financing activities:
Proceeds from exercise of stock options, net of issuance costs	1,382	4,038
Repurchase of common stock	0	(33,541)
Cash paid to satisfy statutory withholding requirement for net settlement of cashless option exercises	(1,888)	(16,444)
Net cash used in financing activities	(506)	(45,947)
Net decrease in cash and cash equivalents	(15,755)	(23,809)
Cash and cash equivalents, at beginning of period	77,617	76,190
Cash and cash equivalents, at end of period	61,862	52,381
Supplemental disclosure:
Cost of shares repurchased for net settlement of cashless option exercises	5,149	6,045
Recognition of right-of-use asset and lease liability	$ 2,816	$ 0

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Treasury Stock	Accumulated Other Comprehensive Income (Loss)	Retained Earnings
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)	1,800	1,832
Issuance of common stock upon exercise of options	$ 10,083	$ 2	10,081
Purchases of treasury stock (in shares)	(21,300)	(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	(800)	(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, 2021		105,940
Beginning balance at Dec. 31, 2021	$ 375,806	$ 127	591,349	(410,411)	(227)	194,968
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock upon exercise of options (in shares)	600	586
Issuance of common stock upon exercise of options	$ 6,544	$ 1	6,543
Purchases of treasury stock (in shares)	(21,600)
Shares purchased to satisfy cost and statutory withholding requirements for net settlement of cashless option exercises	(300)	(305)
Shares purchased to satisfy cost and statutory withholding requirements for net settlement of cashless option exercises	$ (7,037)			(7,037)
Stock-based compensation	10,825		10,825
Other comprehensive income (loss), net of tax	(1,124)				(1,124)
Net income	22,797					22,797
Ending balance (in shares) at Mar. 31, 2022		106,221
Ending balance at Mar. 31, 2022	$ 407,811	$ 128	$ 608,717	$ (417,448)	$ (1,351)	$ 217,765

Basis of Presentation and Summa

Basis of Presentation and Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2022
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 endocrine, metabolic, oncologic, and neurological disorders by modulating the effects of the hormone cortisol. In 2012, the United States Food and Drug Administration (“FDA”) approved Korlym (“mifepristone”) 300 mg tablets, as a once-daily oral medication for the treatment of hyperglycemia secondary to hypercortisolism in adult patients with endogenous Cushing’s syndrome who have type 2 diabetes mellitus or glucose intolerance and have failed surgery or are not candidates for surgery. We have discovered and patented four structurally distinct series of selective cortisol modulators, consisting of more than 1,000 compounds. We are developing compounds from these series as potential treatments for a broad range of serious disorders. We were incorporated in the State of Delaware in May 1998. Our headquarters are located in Menlo Park, California. Basis of Presentation We have prepared the following in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X: (i) condensed consolidated balance sheet as of March 31, 2022 and (ii) condensed consolidated statements of comprehensive income, cash flows and stockholders’ equity for the three-month periods ended March 31, 2022 and 2021. These do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation (which in the applicable periods consist only of normal, recurring adjustments) have been included. Operating results for the three months ended March 31, 2022 are not necessarily indicative of the results for the remainder of 2022 or any other period. These financial statements and notes should be read in conjunction with the financial statements for the year ended December 31, 2021 included in our Annual Report on Form 10-K. The December 31, 2021 balance sheet was derived from audited financial statements at that date. There have been no material changes to the significant accounting policies described in our Annual Report on Form 10-K for the year ended December 31, 2021.

Composition of Certain Balance

Composition of Certain Balance Sheet Items	3 Months Ended
	Mar. 31, 2022
Balance Sheet Related Disclosures [Abstract]
Composition of Certain Balance Sheet Items	Composition of Certain Balance Sheet Items Inventory March 31, December 31, (in thousands) Work in progress $ 12,637 $ 11,450 Finished goods 5,540 6,500 Total inventory 18,177 17,950 Less strategic inventory classified as non-current (13,098) (12,962) Total inventory classified as current $ 5,079 $ 4,988 Because we rely on a single manufacturer to produce Korlym’s active pharmaceutical ingredient (“API”), we have purchased and hold significant quantities of API, included in 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 March 31, December 31, (in thousands) Furniture and equipment $ 1,169 $ 1,157 Software 1,508 1,508 Leasehold improvements 1,262 1,262 Total property and equipment 3,939 3,927 Less accumulated depreciation and amortization (3,213) (2,925) Property and equipment, net of accumulated depreciation and amortization $ 726 $ 1,002 Accrued and other liabilities March 31, December 31, (in thousands) Government rebates $ 12,377 $ 11,174 Accrued income taxes payable 11,523 513 Accrued compensation 4,968 13,339 Legal fees 1,802 842 Accrued selling and marketing costs 861 1,351 Professional fees 652 150 Other 477 296 Total accrued and other liabilities $ 32,660 $ 27,665 Other assets As of March 31, 2022 and December 31, 2021, other assets included $2.8 million and $2.9 million of deposits for clinical trials, respectively.

Available-for-Sale Securities a

Available-for-Sale Securities and Fair Value Measurements	3 Months Ended
	Mar. 31, 2022
Available For Sale Securities And Fair Value Measurements [Abstract]
Available-for-Sale Securities and Fair Value Measurements	Available-for-Sale Securities and Fair Value Measurements The available-for-sale securities in our Condensed Consolidated Balance Sheets are as follows: March 31, December 31, (in thousands) Cash equivalents $ 24,266 $ 45,088 Short-term marketable securities 283,665 145,918 Long-term marketable securities 22,566 112,277 Total marketable securities $ 330,497 $ 303,283 The following table presents our available-for-sale securities grouped by asset type: Fair Value March 31, 2022 December 31, 2021 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 $ 147,177 $ 4 $ (1,023) $ 146,158 $ 125,370 $ 3 $ (276) $ 125,097 Commercial paper Level 2 56,751 — — 56,751 30,963 — — 30,963 Asset-backed securities Level 2 29,372 — (110) 29,262 57,801 — (67) 57,734 U.S. Treasury securities Level 1 74,363 — (303) 74,060 44,473 — (72) 44,401 Money market funds Level 1 24,266 — — 24,266 45,088 — — 45,088 Total marketable securities $ 331,929 $ 4 $ (1,436) $ 330,497 $ 303,695 $ 3 $ (415) $ 303,283 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. As of March 31, 2022 and December 31, 2021, unrealized losses on our available-for-sale debt securities were $1.4 million and $0.4 million, respectively. All of our investments, including those with unrealized losses, are not impaired. Unrealized losses on our investments are due to interest rate fluctuations. We do not intend to sell investments that currently have unrealized losses and it is highly unlikely that we will sell any investment before recovery of its amortized cost basis, which may be at maturity. Accordingly, we have not recorded an allowance for credit losses associated with these investments. We classified accrued interest on our marketable securities of $1.0 million and $1.4 million as of March 31, 2022 and December 31, 2021, respectively, as prepaid and other current assets on our condensed consolidated balance sheets.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2022
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, 2021. 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.

Leases

Leases	3 Months Ended
	Mar. 31, 2022
Leases [Abstract]
Leases	Leases We lease our office facilities in Menlo Park, California. In March 2022, we amended our lease to extend its term from March 31, 2022 to June 30, 2023. As a result of this amendment, we recognized an additional right-of-use asset and corresponding lease liability of $2.8 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 collateralized loan with monthly payments and a term equal to the monthly payments and remaining term of our lease. We recognize operating lease payments as expenses using the straight-line method over the term of the lease. Operating lease expense for each of the three months ended March 31, 2022 and 2021 was approximately $0.5 million. Our right-of-use assets and related lease liabilities were as follows (in thousands, except weighted average amounts) : Three Months Ended March 31, 2022 2021 Cash paid for operating lease liabilities $ 530 $ 514 Right-of-use assets obtained in exchange for new operating lease obligations $ 2,816 $ — Weighted-average remaining lease term 15 months 12 months Weighted-average discount rate 4.0 % 4.8 % As of March 31, 2022, future minimum lease payments under non-cancelable operating leases were as follows (in thousands) : 2022 (remainder) $ 1,735 2023 1,157 Total lease payments 2,892 Less imputed interest (76) Present value of operating lease liabilities $ 2,816

Stockholders' Equity

Stockholders' Equity	3 Months Ended
	Mar. 31, 2022
Equity [Abstract]
Stockholders’ Equity	Stockholders’ Equity Incentive Award Plan We have one stock option plan – the 2012 Incentive Award Plan (the “2012 Plan”). In December 2021, our Board of Directors authorized a 4.2 million increase in the shares available for grant under the 2012 Plan. Stock Options During the three months ended March 31, 2022, we issued 0.6 million shares of our common stock upon the exercise of stock options. 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 obligations arising from the exercise. During the three months ended March 31, 2022, we purchased 0.3 million shares in connection with such option net exercises. In connection with the shares purchased, during the three months ended March 31, 2022, we paid $1.9 million to satisfy associated tax withholding obligations. During the three months ended March 31, 2021, we issued 1.8 million shares of our common stock upon the exercise of stock options. We purchased 0.8 million shares in connection with option net exercises, at a total cost of $16.4 million, to satisfy associated tax withholding obligations. We recorded purchased shares as treasury stock on our condensed consolidated balance sheets at cost. As of March 31, 2022 and December 31, 2021, we had 21.6 million and 21.3 million treasury shares outstanding, respectively. Restricted Stock Units (“RSUs”) During the three months ended March 31, 2022, we granted employees 0.2 million RSUs with a weighted-average grant date fair value of $19.34 per share. No RSUs vested during the period. Employee Stock Purchase Plan (“ESPP”) In February 2022 we adopted an ESPP that allows employees to set aside, by means of payroll deductions, up to ten percent of their annual compensation for the purchase of our commons stock. Shares are issued to participating employees from the 2012 Plan on March 1st and September 1st of each year (or, if those dates fall on holidays, on the first business day thereafter) at the then-current fair market value of our stock, as determined at the close of trading on those days. Payroll deductions for participating employees began April 1, 2022, and the first purchase under the plan will take place on September 1, 2022. For each purchased share held for one year, the purchasing employee will receive one matching share, also issued from the 2012 Plan, net of any applicable tax withholding. There is no vesting requirement with respect to shares issued pursuant to the ESPP. Shares purchased pursuant to the ESPP as well as any matching shares issued upon satisfaction of the one-year holding requirement may be held, sold or otherwise transferred at the employee’s sole discretion. Stock-based Compensation Stock-based compensation expense associated with stock options and awards of restricted stock is measured at the grant date based on the fair value of the award, and is recognized, net of forfeitures, as expense over the remaining requisite service period on a straight-line basis. The Company values restricted stock at the closing market price of the Company’s common stock on the date of grant. The following table summarizes our stock-based compensation by account: Three Months Ended March 31, 2022 2021 (in thousands) Stock-based compensation capitalized in inventory $ 64 $ 41 Cost of sales 16 10 Research and development 3,371 3,505 Selling, general and administrative 7,374 6,586 Total stock-based compensation $ 10,825 $ 10,142

Net Income Per Share

Net Income Per Share	3 Months Ended
	Mar. 31, 2022
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, including potentially dilutive stock options and RSUs. We use the treasury stock method to determine the number of dilutive shares of common stock resulting from stock options and restricted stock. The following table shows the computation of net income per share for each period: Three Months Ended March 31, 2022 2021 (in thousands) Numerator: Net income $ 22,797 $ 23,465 Denominator: Weighted-average shares used to compute basic net income per share 106,012 116,818 Dilutive effect of employee stock options and restricted stock 9,025 12,850 Weighted-average shares used to compute diluted net income per share 115,037 129,668 Net income per share Basic $ 0.22 $ 0.20 Diluted $ 0.20 $ 0.18 As of March 31, 2022, we had 26.0 million stock options and 0.2 million RSUs outstanding. As of March 31, 2021, we had 26.8 million stock options outstanding.

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2022
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes We recorded income tax expense of $4.1 million for the three months ended March 31, 2022, and an income tax benefit of $3.6 million for the three months ended March 31, 2021. The increase in income tax expense during the three months ended March 31, 2022 was primarily due to increased income before income taxes and decreased excess tax deductions from stock-based compensation as compared to the corresponding period in 2021. 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 months ended March 31, 2022, unrecognized tax benefits increased by $0.4 million. As of March 31, 2022, the Company had unrecognized tax benefits of $7.7 million that, if recognized, would affect the Company’s effective tax rate and approximately $1.9 million of unrecognized tax benefits that 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 make use of 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. Beginning in 2022, the Tax Cuts and Jobs Act of 2017 (“TCJA”) eliminates the right to deduct research and development expenditures for tax purposes in the period the expenses were incurred and instead requires all U.S. and foreign research and development expenditures to be amortized over five and fifteen tax years, respectively. Although Congress is considering legislation that would defer the amortization requirement to later years, it is not certain that the provision will be repealed or otherwise modified. As of March 31, 2022, the requirement has not been modified. We have capitalized our research and development expenses, which caused our taxes payable to increase to $11.5 million as of March 31, 2022, compared to $0.5 million as of December 31, 2021.

Basis of Presentation and Sum_2

Basis of Presentation and Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2022
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation We have prepared the following in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X: (i) condensed consolidated balance sheet as of March 31, 2022 and (ii) condensed consolidated statements of comprehensive income, cash flows and stockholders’ equity for the three-month periods ended March 31, 2022 and 2021. These do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation (which in the applicable periods consist only of normal, recurring adjustments) have been included. Operating results for the three months ended March 31, 2022 are not necessarily indicative of the results for the remainder of 2022 or any other period. These financial statements and notes should be read in conjunction with the financial statements for the year ended December 31, 2021 included in our Annual Report on Form 10-K. The December 31, 2021 balance sheet was derived from audited financial statements at that date.

Composition of Certain Balanc_2

Composition of Certain Balance Sheet Items (Tables)	3 Months Ended
	Mar. 31, 2022
Balance Sheet Related Disclosures [Abstract]
Schedule of composition of inventory, current	Inventory March 31, December 31, (in thousands) Work in progress $ 12,637 $ 11,450 Finished goods 5,540 6,500 Total inventory 18,177 17,950 Less strategic inventory classified as non-current (13,098) (12,962) Total inventory classified as current $ 5,079 $ 4,988
Schedule of composition of inventory, noncurrent	Inventory March 31, December 31, (in thousands) Work in progress $ 12,637 $ 11,450 Finished goods 5,540 6,500 Total inventory 18,177 17,950 Less strategic inventory classified as non-current (13,098) (12,962) Total inventory classified as current $ 5,079 $ 4,988
Schedule of property and equipment	Property and equipment March 31, December 31, (in thousands) Furniture and equipment $ 1,169 $ 1,157 Software 1,508 1,508 Leasehold improvements 1,262 1,262 Total property and equipment 3,939 3,927 Less accumulated depreciation and amortization (3,213) (2,925) Property and equipment, net of accumulated depreciation and amortization $ 726 $ 1,002
Schedule of other accrued liabilities	Accrued and other liabilities March 31, December 31, (in thousands) Government rebates $ 12,377 $ 11,174 Accrued income taxes payable 11,523 513 Accrued compensation 4,968 13,339 Legal fees 1,802 842 Accrued selling and marketing costs 861 1,351 Professional fees 652 150 Other 477 296 Total accrued and other liabilities $ 32,660 $ 27,665

Available-for-Sale Securities_2

Available-for-Sale Securities and Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2022
Available For Sale Securities And Fair Value Measurements [Abstract]
Summary of the classification of available-for-sale securities in condensed consolidated balance sheets	The available-for-sale securities in our Condensed Consolidated Balance Sheets are as follows: March 31, December 31, (in thousands) Cash equivalents $ 24,266 $ 45,088 Short-term marketable securities 283,665 145,918 Long-term marketable securities 22,566 112,277 Total marketable securities $ 330,497 $ 303,283
Schedule of available-for-sale securities	The following table presents our available-for-sale securities grouped by asset type: Fair Value March 31, 2022 December 31, 2021 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 $ 147,177 $ 4 $ (1,023) $ 146,158 $ 125,370 $ 3 $ (276) $ 125,097 Commercial paper Level 2 56,751 — — 56,751 30,963 — — 30,963 Asset-backed securities Level 2 29,372 — (110) 29,262 57,801 — (67) 57,734 U.S. Treasury securities Level 1 74,363 — (303) 74,060 44,473 — (72) 44,401 Money market funds Level 1 24,266 — — 24,266 45,088 — — 45,088 Total marketable securities $ 331,929 $ 4 $ (1,436) $ 330,497 $ 303,695 $ 3 $ (415) $ 303,283

Leases (Tables)

Leases (Tables)	3 Months Ended
	Mar. 31, 2022
Leases [Abstract]
Schedule of information of leases asset and liabilities	Our right-of-use assets and related lease liabilities were as follows (in thousands, except weighted average amounts) : Three Months Ended March 31, 2022 2021 Cash paid for operating lease liabilities $ 530 $ 514 Right-of-use assets obtained in exchange for new operating lease obligations $ 2,816 $ — Weighted-average remaining lease term 15 months 12 months Weighted-average discount rate 4.0 % 4.8 %
Schedule of future minimum lease payments under non-cancelable operating leases	As of March 31, 2022, future minimum lease payments under non-cancelable operating leases were as follows (in thousands) : 2022 (remainder) $ 1,735 2023 1,157 Total lease payments 2,892 Less imputed interest (76) Present value of operating lease liabilities $ 2,816

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	3 Months Ended
	Mar. 31, 2022
Equity [Abstract]
Summary of stock-based compensation	The following table summarizes our stock-based compensation by account: Three Months Ended March 31, 2022 2021 (in thousands) Stock-based compensation capitalized in inventory $ 64 $ 41 Cost of sales 16 10 Research and development 3,371 3,505 Selling, general and administrative 7,374 6,586 Total stock-based compensation $ 10,825 $ 10,142

Net Income Per Share (Tables)

Net Income Per Share (Tables)	3 Months Ended
	Mar. 31, 2022
Earnings Per Share [Abstract]
Schedule of computation of net income per share	The following table shows the computation of net income per share for each period: Three Months Ended March 31, 2022 2021 (in thousands) Numerator: Net income $ 22,797 $ 23,465 Denominator: Weighted-average shares used to compute basic net income per share 106,012 116,818 Dilutive effect of employee stock options and restricted stock 9,025 12,850 Weighted-average shares used to compute diluted net income per share 115,037 129,668 Net income per share Basic $ 0.22 $ 0.20 Diluted $ 0.20 $ 0.18

Basis of Presentation and Sum_3

Basis of Presentation and Summary of Significant Accounting Policies (Details)	3 Months Ended
	Mar. 31, 2022series
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	Mar. 31, 2022	Dec. 31, 2021
Balance Sheet Related Disclosures [Abstract]
Work in progress	$ 12,637	$ 11,450
Finished goods	5,540	6,500
Total inventory	18,177	17,950
Less strategic inventory classified as non-current	(13,098)	(12,962)
Total inventory classified as current	$ 5,079	$ 4,988

Composition of Certain Balanc_4

Composition of Certain Balance Sheet Items - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 3,939	$ 3,927
Less accumulated depreciation and amortization	(3,213)	(2,925)
Property and equipment, net of accumulated depreciation	726	1,002
Furniture and equipment
Property, Plant and Equipment [Line Items]
Total property and equipment	1,169	1,157
Software
Property, Plant and Equipment [Line Items]
Total property and equipment	1,508	1,508
Leasehold improvements
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 1,262	$ 1,262

Composition of Certain Balanc_5

Composition of Certain Balance Sheet Items - Schedule of Other Accrued Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Balance Sheet Related Disclosures [Abstract]
Government rebates	$ 12,377	$ 11,174
Accrued income taxes payable	11,523	513
Accrued compensation	4,968	13,339
Legal fees	1,802	842
Accrued selling and marketing costs	861	1,351
Professional fees	652	150
Other	477	296
Total accrued and other liabilities	$ 32,660	$ 27,665

Composition of Certain Balanc_6

Composition of Certain Balance Sheet Items - Narrative (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Balance Sheet Related Disclosures [Abstract]
Deposits for clinical trials	$ 2.8	$ 2.9

Available-for-Sale Securities_3

Available-for-Sale Securities and Fair Value Measurements - Summary of the Classification of Available-for-Sale Securities in Condensed Consolidated Balance Sheets (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Debt Securities, Available-for-sale [Line Items]
Total marketable securities	$ 330,497	$ 303,283
Cash equivalents
Debt Securities, Available-for-sale [Line Items]
Total marketable securities	24,266	45,088
Short-term marketable securities
Debt Securities, Available-for-sale [Line Items]
Total marketable securities	283,665	145,918
Long-term marketable securities
Debt Securities, Available-for-sale [Line Items]
Total marketable securities	$ 22,566	$ 112,277

Available-for-Sale Securities_4

Available-for-Sale Securities and Fair Value Measurements - Schedule of Available-for-Sale Securities (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Debt Securities, Available-for-sale [Line Items]
Gross Unrealized Losses	$ (1,400)	$ (400)
Estimate of fair value measurement
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	331,929	303,695
Gross Unrealized Gains	4	3
Gross Unrealized Losses	(1,436)	(415)
Estimated Fair Value	330,497	303,283
Estimate of fair value measurement | Corporate bonds | Level 2
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	147,177	125,370
Gross Unrealized Gains	4	3
Gross Unrealized Losses	(1,023)	(276)
Estimated Fair Value	146,158	125,097
Estimate of fair value measurement | Commercial paper | Level 2
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	56,751	30,963
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Estimated Fair Value	56,751	30,963
Estimate of fair value measurement | Asset-backed securities | Level 2
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	29,372	57,801
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(110)	(67)
Estimated Fair Value	29,262	57,734
Estimate of fair value measurement | U.S. Treasury securities | Level 1
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	74,363	44,473
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(303)	(72)
Estimated Fair Value	74,060	44,401
Estimate of fair value measurement | Money market funds | Level 1
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	24,266	45,088
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Estimated Fair Value	$ 24,266	$ 45,088

Available-for-Sale Securities_5

Available-for-Sale Securities and Fair Value Measurements - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Gross Unrealized Losses	$ (1,400)	$ (400)
Interest receivable, current	$ 1,000	$ 1,400
Maximum maturity period	2 years
Weighted average maturity period	7 months
Minimum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long term marketable securities, remaining maturity	12 months
Maximum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long term marketable securities, remaining maturity	24 months

Commitments and Contingencies (

Commitments and Contingencies (Details)	3 Months Ended
	Mar. 31, 2022USD ($)
Commitments and Contingencies Disclosure [Abstract]
Losses for contingent liability	$ 0
Provision for a loss contingency	$ 0

Leases - Narrative (Details)

Leases - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021	Jan. 31, 2019
Leases [Abstract]
Operating lease right-of-use asset	$ 2,816		$ 514	$ 2,800
Total operating lease liabilities	2,816			$ 2,800
Operating lease expenses	$ 500	$ 500

Leases - Right-of-use Assets an

Leases - Right-of-use Assets and Related Liabilities (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Leases [Abstract]
Cash paid for operating lease liabilities	$ 530	$ 514
Right-of-use assets obtained in connection with operating lease obligations	$ 2,816	$ 0
Weighted-average remaining lease term (months)	15 months	12 months
Weighted-average discount rate (as a percent)	4.00%	4.80%

Leases - Future Minimum Lease P

Leases - Future Minimum Lease Payments (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Jan. 31, 2019
Leases [Abstract]
2022 (remainder)	$ 1,735
2023	1,157
Total lease payments	2,892
Less imputed interest	(76)
Present value of operating lease liabilities	$ 2,816	$ 2,800

Stockholders' Equity - Narrativ

Stockholders' Equity - Narrative (Details) $ / shares in Units, $ in Thousands	1 Months Ended	3 Months Ended
	Dec. 31, 2021shares	Mar. 31, 2022USD ($)stockOptionPlan$ / sharesshares	Mar. 31, 2021USD ($)shares
Shareholders Equity [Line Items]
Number of stock option plans | stockOptionPlan		1
Common shares issued upon exercise of options (in share)		600,000	1,800,000
Shares withheld for tax withholding obligation		300,000	800,000
Payment tax withholding share-based payment arrangement | $		$ 1,888	$ 16,444
Treasury stock shares acquired		21,600,000	21,300,000
Restricted Stock Units (RSUs)
Shareholders Equity [Line Items]
Grants in period (in shares)		200,000
Weighted average grant date fair value (in dollars per share) | $ / shares		$ 19.34
2012 Equity Incentive Award Plan
Shareholders Equity [Line Items]
Increase in shares authorized for grant (in shares)	4,200,000

Stockholders' Equity - Summary

Stockholders' Equity - Summary of Stock-Based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation capitalized in inventory	$ 64	$ 41
Total stock-based compensation	10,825	10,142
Cost of sales
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Allocated share-based compensation expense	16	10
Research and development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Allocated share-based compensation expense	3,371	3,505
Selling, general and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Allocated share-based compensation expense	$ 7,374	$ 6,586

Net Income Per Share - Schedule

Net Income Per Share - Schedule of Computation of Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Numerator:
Net income	$ 22,797	$ 23,465
Denominator:
Weighted-average shares used to compute basic net income per share (in shares)	106,012	116,818
Dilutive effect of employee stock options (in shares)	9,025	12,850
Weighted-average shares used to compute diluted net income per share (in shares)	115,037	129,668
Net income per share
Basic (in dollars per share)	$ 0.22	$ 0.20
Diluted (in dollars per share)	$ 0.20	$ 0.18

Net Income Per Share - Narrativ

Net Income Per Share - Narrative (Details) - shares shares in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Stock options outstanding (in shares)		26.8
Stock Options to Purchase Common Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Stock options outstanding (in shares)	26
Weighted average options excluded from the computation of diluted net income per share (in shares)	6.9	2.4
Restricted Stock Units (RSUs)
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Share-based compensation arrangement by share-based payment award, equity instruments other than options, nonvested, number (in shares)	0.2

Income taxes (Details)

Income taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Income Tax Disclosure [Abstract]
Income tax (benefit) expense	$ 4,052	$ (3,552)
Unrecognized tax benefits, period increase	400
Unrecognized tax benefits that would impact effective tax rate	7,700
Unrecognized tax benefits that would be offset by a change in valuation allowance	1,900
Taxes payable	$ 11,500		$ 500