Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2024 | Apr. 24, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
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, $0.001 par value | |
Trading Symbol | CORT | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 104,112,088 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0001088856 | |
Current Fiscal Year End Date | --12-31 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 149,750 | $ 135,551 |
Short-term marketable securities | 261,011 | 232,670 |
Trade receivables, net of allowances | 61,518 | 41,123 |
Insurance recovery receivable related to Melucci litigation (Note 4) | 0 | 14,000 |
Inventory | 7,190 | 7,730 |
Prepaid expenses and other current assets | 23,898 | 27,562 |
Total current assets | 503,367 | 458,636 |
Strategic inventory | 7,846 | 8,244 |
Operating lease right-of-use asset | 61 | 120 |
Property and equipment, net | 127 | 195 |
Long-term marketable securities | 40,276 | 57,176 |
Other assets | 6,388 | 6,541 |
Deferred tax assets, net | 97,870 | 90,605 |
Total assets | 655,935 | 621,517 |
Current liabilities: | ||
Accounts payable | 12,557 | 17,396 |
Accrued research and development expenses | 24,825 | 21,330 |
Accrued and other liabilities | 59,744 | 51,628 |
Accrued settlement related to Melucci litigation (Note 4) | 0 | 14,000 |
Short-term operating lease liability | 76 | 151 |
Total current liabilities | 97,202 | 104,505 |
Long-term accrued income taxes payable | 10,869 | 10,307 |
Total liabilities | 108,071 | 114,812 |
Commitments and contingencies (Note 4) | ||
Stockholders’ equity: | ||
Preferred stock | 0 | 0 |
Common stock | 133 | 133 |
Treasury stock | (641,059) | (635,078) |
Additional paid-in capital | 758,244 | 738,515 |
Accumulated other comprehensive income | 258 | 609 |
Retained earnings | 430,288 | 402,526 |
Total stockholders’ equity | 547,864 | 506,705 |
Total liabilities and stockholders’ equity | $ 655,935 | $ 621,517 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Product revenue, net | $ 146,808 | $ 105,654 |
Operating expenses: | ||
Cost of sales | 2,535 | 1,386 |
Research and development | 58,505 | 40,851 |
Selling, general and administrative | 56,268 | 48,564 |
Total operating expenses | 117,308 | 90,801 |
Income from operations | 29,500 | 14,853 |
Interest and other income | 5,493 | 3,581 |
Income before income taxes | 34,993 | 18,434 |
Income tax expense | (7,231) | (2,555) |
Net income | 27,762 | 15,879 |
Net income attributable to common stockholders, basic | 27,514 | 15,807 |
Net income attributable to common stockholders, diluted | $ 27,514 | $ 15,807 |
Basic net income per share (in dollars per share) | $ 0.27 | $ 0.15 |
Diluted net income per share (in dollars per share) | $ 0.25 | $ 0.14 |
Weighted-average shares outstanding used in computing net income per common share | ||
Basic (in shares) | 102,791 | 107,885 |
Diluted (in shares) | 109,915 | 115,425 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 27,762 | $ 15,879 |
Other comprehensive income (loss): | ||
Unrealized (loss) gain on available-for-sale investments, net of tax effect of $103 and $(192), respectively | (330) | 605 |
Foreign currency translation (loss) gain, net of tax | (21) | 111 |
Total comprehensive income | $ 27,411 | $ 16,595 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Unrealized gain (loss) on available-for-sale investments, tax expense (benefit) | $ 103 | $ (192) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash flows from operating activities: | ||
Net income | $ 27,762 | $ 15,879 |
Adjustments to reconcile net income to net cash provided by operations: | ||
Stock-based compensation | 13,249 | 11,141 |
(Accretion) of discount on marketable securities, net | (2,859) | (1,503) |
Amortization of cloud computing arrangements | 52 | 119 |
Depreciation and amortization of property and equipment | 68 | 172 |
Deferred income taxes | (7,162) | (6,726) |
Non-cash amortization of right-of-use asset | 59 | 568 |
Changes in operating assets and liabilities: | ||
Trade receivables | (20,395) | (1,500) |
Insurance recovery receivable related to Melucci litigation | 14,000 | 0 |
Inventory | 983 | 558 |
Prepaid expenses and other current assets | 3,612 | 729 |
Other assets | 153 | 0 |
Accounts payable | (4,861) | (649) |
Accrued research and development expenses | 3,494 | (592) |
Accrued and other liabilities | 9,114 | 8,027 |
Accrued Settlement related to Melucci litigation | (14,000) | 0 |
Long-term accrued income taxes | 562 | 302 |
Operating lease liability | (75) | (568) |
Net cash provided by operating activities | 23,756 | 25,957 |
Cash flows from investing activities: | ||
Proceeds from maturities of marketable securities | 68,862 | 207,475 |
Purchases of marketable securities | (77,876) | 0 |
Net cash (used in) provided by investing activities | (9,014) | 207,475 |
Cash flows from financing activities: | ||
Proceeds from issuance of common stock under our incentive award plan, net of issuance costs | 749 | 1,409 |
Proceeds from purchases under the Employee Stock Purchase Program | 940 | 0 |
Repurchase of common stock in connection with Stock Repurchase Program | (476) | 0 |
Cash paid to satisfy statutory withholding requirement for net settlement of cashless option exercises and vesting of restricted stock grants | (1,756) | (1,228) |
Net cash (used in) provided by financing activities | (543) | 181 |
Net increase in cash and cash equivalents | 14,199 | 233,613 |
Cash and cash equivalents, at beginning of period | 135,551 | 66,329 |
Cash and cash equivalents, at end of period | 149,750 | 299,942 |
Supplemental disclosure: | ||
Exercise cost of shares repurchased for net settlement of cashless option exercises | $ 1,798 | $ 5,246 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Treasury Stock | Accumulated Other Comprehensive (Loss) Income | Retained Earnings |
Beginning balance (in shares) at Dec. 31, 2022 | 107,835 | |||||
Beginning balance at Dec. 31, 2022 | $ 501,842 | $ 131 | $ 662,342 | $ (456,148) | $ (869) | $ 296,386 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock upon exercise of options (in shares) | 618 | |||||
Issuance of common stock under our incentive award plan | 6,540 | 6,540 | ||||
Shares purchased to satisfy cost and statutory withholding requirements for net settlement of cashless option exercises (in shares) | (297) | |||||
Shares tendered to satisfy cost and statutory withholding requirements for net settlement of cashless option exercises and vesting of restricted stock | (6,359) | (6,359) | ||||
Stock-based compensation | 10,966 | 10,966 | ||||
Other comprehensive income (loss), net of tax | 716 | 716 | ||||
Net income | 15,879 | 15,879 | ||||
Ending balance (in shares) at Mar. 31, 2023 | 108,156 | |||||
Ending balance at Mar. 31, 2023 | 529,584 | $ 131 | 679,848 | (462,507) | (153) | 312,265 |
Beginning balance (in shares) at Dec. 31, 2023 | 103,405 | |||||
Beginning balance at Dec. 31, 2023 | 506,705 | $ 133 | 738,515 | (635,078) | 609 | 402,526 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock upon exercise of options (in shares) | 786 | |||||
Issuance of common stock under our incentive award plan | 3,485 | 3,485 | ||||
Shares purchased to satisfy cost and statutory withholding requirements for net settlement of cashless option exercises (in shares) | (143) | |||||
Shares tendered to satisfy cost and statutory withholding requirements for net settlement of cashless option exercises and vesting of restricted stock | (3,554) | 2,032 | (5,586) | |||
Repurchase of common stock in connection with Stock Repurchase Program (in shares) | (20) | |||||
Repurchase of common stock in connection with Stock Repurchase Program | (476) | (476) | ||||
Excise tax related to net share repurchases | 81 | 81 | ||||
Stock-based compensation | 12,929 | 12,929 | ||||
Vesting of RSAs in connection with ESPP | 1,283 | 1,283 | ||||
Other comprehensive income (loss), net of tax | (351) | (351) | ||||
Net income | 27,762 | 27,762 | ||||
Ending balance (in shares) at Mar. 31, 2024 | 104,028 | |||||
Ending balance at Mar. 31, 2024 | $ 547,864 | $ 133 | $ 758,244 | $ (641,059) | $ 258 | $ 430,288 |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2024 | |
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 (collectively, “Corcept,” the “Company,” “we,” “us,” and “our”) is a commercial-stage pharmaceutical company engaged in the discovery and development of medications to treat severe endocrinologic, oncologic, metabolic and neurologic 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, 2024 and (ii) condensed consolidated statements of income, comprehensive income, cash flows and stockholders’ equity for the three-month periods ended March 31, 2024 and 2023. 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-month period ended March 31, 2024 are not necessarily indicative of the results for the remainder of 2024 or any other period. These financial statements and notes should be read in conjunction with the financial statements for the year ended December 31, 2023 included in our Annual Report on Form 10-K. The December 31, 2023 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, 2023. Recently Issued Accounting Pronouncements Not Yet Adopted In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2023-09, which requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as information on income taxes paid. The standard is intended to benefit investors by providing more detailed income tax disclosures that would be useful in making capital allocation decisions. This ASU is effective for public companies with annual periods beginning after December 15, 2024, with early adoption permitted. We plan to adopt this guidance for the fiscal year ending December 31, 2025. We are currently evaluating the effects adoption of this guidance will have on the condensed consolidated financial statements. In November 2023, the FASB issued ASU No. 2023-07, to improve the disclosures about a public entity’s reportable segments and address requests from investors for additional, more detailed information about a reportable segment’s expenses. The standard is effective for public companies with annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024 with early adoption permitted. We plan to adopt this guidance for the fiscal year ending December 31, 2024. We are currently evaluating the effects adoption of this guidance will have on the condensed consolidated financial statements. |
Composition of Certain Balance
Composition of Certain Balance Sheet Items | 3 Months Ended |
Mar. 31, 2024 | |
Balance Sheet Related Disclosures [Abstract] | |
Composition of Certain Balance Sheet Items | Composition of Certain Balance Sheet Items Inventory March 31, December 31, (in thousands) Raw materials $ 704 $ — Work in progress 7,132 8,233 Finished goods 7,200 7,741 Total inventory 15,036 15,974 Less strategic inventory classified as non-current (7,846) (8,244) Total inventory classified as current $ 7,190 $ 7,730 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 non-current asset. Prepaid expenses and other current assets March 31, December 31, (in thousands) Prepaid Expenses $ 5,542 $ 4,319 Other Current Assets 18,356 23,243 $ 23,898 $ 27,562 Accrued and other liabilities March 31, December 31, (in thousands) Government rebates $ 27,539 $ 18,468 Income taxes payable 13,458 1,814 Accrued compensation 11,110 25,457 Accrued selling and marketing costs 3,342 1,771 Legal fees 1,362 542 Excise tax payable 997 1,078 Professional fees 716 389 Accrued Manufacturing Costs 157 1,455 Other 1,063 654 Total accrued and other liabilities $ 59,744 $ 51,628 Other assets As of March 31, 2024 and December 31, 2023, other assets included $6.3 million and $6.4 million of deposits for clinical trials, respectively. |
Available-for-Sale Marketable S
Available-for-Sale Marketable Securities and Fair Value Measurements | 3 Months Ended |
Mar. 31, 2024 | |
Available For Sale Securities And Fair Value Measurements [Abstract] | |
Available-for-Sale Marketable Securities and Fair Value Measurements | Available-for-Sale Marketable 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 $ 112,895 $ 97,170 Short-term marketable securities 261,011 232,670 Long-term marketable securities 40,276 57,176 Total marketable securities $ 414,182 $ 387,016 The following table presents our available-for-sale securities grouped by asset type: Fair Value March 31, 2024 December 31, 2023 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 $ 180,474 $ 112 $ (64) $ 180,522 $ 120,508 $ 307 $ — $ 120,815 Commercial paper Level 2 65,035 8 (15) 65,028 75,308 20 (9) 75,319 U.S. Treasury securities Level 1 59,222 7 (3) 59,226 93,655 61 (4) 93,712 Money market funds Level 1 109,406 — — 109,406 97,170 — — 97,170 Total marketable securities $ 414,137 $ 127 $ (82) $ 414,182 $ 386,641 $ 388 $ (13) $ 387,016 We estimate the fair value of marketable securities classified as Level 1 using quoted market prices obtained from a commercial pricing service for these or identical investments. 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 the issuer’s poor credit or other reasons. If the fair value of our investment is less than our amortized cost, we evaluate quantitative and subjective factors – including, but not limited to, the nature of security, changes in credit ratings and analyst reports concerning the security’s issuer and industry, and interest rate fluctuations and general market conditions – to determine whether an allowance for credit losses is appropriate. None of our investments, including those with unrealized losses, are 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 for these investments. We classified accrued interest on our marketable securities of $2.0 million and $1.7 million as of March 31, 2024 and December 31, 2023, respectively, as prepaid and other current assets on our condensed consolidated balance sheets. As of March 31, 2024, all of our long-term marketable securities had original maturities of no more than 27 months and all our marketable securities classified as short-term have maturities of less than one year. The weighted-average maturity of our holdings was 6 months. As of March 31, 2024, our long-term marketable securities had remaining maturities between 12 months and 19 months. None of our marketable securities changed from one fair value hierarchy to another during the three months ended March 31, 2024. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2024 | |
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, 2023. 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. Melucci Litigation and Settlement On March 14, 2019, a purported securities class action complaint was filed in the United States District Court for the Northern District of California by Nicholas Melucci ( Melucci v. Corcept Therapeutics Incorporated , et al., Case No. 5:19-cv-01372-LHK) (the “Melucci litigation”). The complaint named us and certain of our executive officers as defendants asserting violations of Sections 10(b) and 20(a) of the Exchange Act and Rule 10b-5 promulgated thereunder and alleges that the defendants made false and materially misleading statements and failed to disclose adverse facts about our business, operations and prospects. The complaint asserts a putative class period extending from August 2, 2017 to February 5, 2019 and seeks unspecified monetary relief, interest and attorneys’ fees. On October 7, 2019, the Court appointed a lead plaintiff and lead counsel. The lead plaintiff’s consolidated complaint was filed on December 6, 2019. On February 8, 2023, we reached an agreement in principle (the “Proposed Settlement”) to resolve all claims in the Melucci litigation. Under the Proposed Settlement, we have agreed to make a one-time payment of $14.0 million, which will be covered in full by our insurers. In connection with the Proposed Settlement, we recorded a settlement expense of $14.0 million and corresponding insurance recovery of $14.0 million in operating expenses on our consolidated statement of income in the fourth quarter of 2022. The Court granted preliminary approval of the Proposed Settlement on January 4, 2024, following which we paid $14.0 million into escrow. Our insurers reimbursed us in full. Payment of any funds out of the designated escrow is pending the Court’s final approval of the Proposed Settlement, a hearing for which is scheduled for June 6, 2024. No losses and no provision for a loss contingency have been recorded to date. For further information about our ongoing legal matters, see Part II. Item 1, Legal Proceedings. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2024 | |
Leases [Abstract] | |
Leases | Leases We lease our office facilities in Menlo Park, California. On March 19, 2024, we entered into an amendment to extend our lease through July 31, 2024. The amendment extended the lease term by one month, for which we do not expect to record an additional right of use asset and corresponding lease liability. We will record $0.2 million of rent expense in connection with this lease amendment. As the operating lease for our facilities does not expressly state an 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, 2024 and 2023 was $0.6 million. Our right-of-use assets and related lease liabilities were as follows (in thousands, except weighted average amounts): Three Months Ended March 31, 2024 2023 Cash paid for operating lease liabilities $ 617 $ 578 Recognition of right-of-use asset in exchange for lease liability $ 297 $ — Weighted-average remaining lease term 4 months 3 months Weighted-average discount rate 8.0 % 4.0 % As of March 31, 2024, future minimum lease payments under non-cancelable operating leases were as follows (in thousands): 2024 (remainder) 77 Total operating lease payments 77 Less imputed interest (1) Present value of operating lease liabilities $ 76 As of March 31, 2024, future minimum lease payments under non-cancellable short-term leases were $0.7 million for the remainder of 2024. We do not recognize right-of-use assets or lease liabilities for leases with a term of twelve months or less, rather, we recognize the associated lease payments in the condensed consolidated statements of income on a straight-line basis over the lease term. As of March 31, 2024, we had one additional operating lease that has not yet commenced, with lease obligations of approximately $9.6 million for our new office lease. This operating lease will commence on or around July 1, 2024. See Note 9 “Subsequent Events” to our Unaudited Condensed Consolidated Financial Statements for more information on our new office lease. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Stockholders’ Equity | Stockholders’ Equity Treasury Stock In January 2024, our Board of Directors approved a program authorizing the repurchase of up to $200 million of our common stock (the “Stock Repurchase Program”). Purchases under this program may be made in the open market, in privately negotiated transactions or otherwise. The timing and amount of any repurchases will be determined based on market conditions, our stock price and other factors. The program does not require us to repurchase any specific number of shares of its common stock and may be modified, suspended or discontinued at any time without notice. During the three months ended March 31, 2024, we purchased less than 0.1 million shares of our common stock under the Stock Repurchase Program in open market transactions at an average price of $23.82 per share, for an aggregate purchase price of $0.5 million. As of March 31, 2024, $199.5 million of the current authorization remained available for the repurchase of shares of our common stock. We recorded purchased shares as treasury stock on our condensed consolidated balance sheets at cost. As of March 31, 2024 and December 31, 2023, we had 31.2 million and 30.9 million treasury shares outstanding, respectively. Incentive Award Plan We have one stock option plan – the Corcept Therapeutics Incorporated 2012 Incentive Award Plan (the “2012 Plan”). Stock Options During the three months ended March 31, 2024, we issued 0.4 million shares of our common stock upon the exercise of stock options. Some 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, shares equal in value to the associated exercise price and tax withholding obligations. During the three months ended March 31, 2024, we purchased 0.1 million shares in connection with option net exercises and paid $0.9 million to satisfy associated tax withholding obligations. During the three months ended March 31, 2023, we issued 0.5 million shares of our common stock upon the exercise of stock options. Some 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, shares equal in value to the associated exercise price and tax withholding obligations. During the three months ended March 31, 2023, we purchased 0.3 million shares in connection with option net exercises and paid $1.1 million to satisfy associated tax withholding obligations. Restricted Stock Awards (“RSAs”) During the three months ended March 31, 2024 and 2023, we granted employees 0.4 million and 0.3 million RSAs with a weighted-average grant date fair value of $23.14 and $22.39 per share, respectively. RSAs include voting and dividend rights and are therefore “participating” shares for the purpose of calculating basic and diluted net income per share. See “Note 7” below. Employee Stock Purchase Plan (“ESPP”) Our ESPP allows employees to set aside, by means of payroll deductions, up to ten percent of their annual compensation for the purchase of our common stock. Shares are issued to participating employees from the 2012 Plan on March 1st, June 1st, September 1st and December 1st (or, if those dates fall on holidays or weekends, 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. For each purchased share, the participating employee receives one matching share, also issued from the 2012 Plan if certain conditions are met. There is no vesting requirement for shares issued pursuant to the ESPP purchase. The matching share will be granted in the form of a RSA that will vest on the one-year anniversary of the respective ESPP purchase date, net of applicable tax withholding. The vesting condition on the RSA is that the participating employee hold the corresponding share purchased under the ESPP for one year from the purchase date. Shares purchased pursuant to the ESPP and any matching shares issued upon satisfaction of the one-year holding requirement may be held, sold or transferred at the employee’s sole discretion. During the three months ended March 31, 2024 and 2023, we issued less than 0.1 million and 0.1 million shares of our common stock in connection with our ESPP, respectively. As of March 31, 2024 and December 31, 2023, we recorded $1.4 million and $3.2 million, respectively, of stock-based compensation related to RSAs granted in connection with our ESPP in “Accrued and other liabilities” on our unaudited condensed consolidated balance sheet. 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. We value restricted stock at the closing market price of our common stock on the date of grant. The following table summarizes our stock-based compensation by account: Three Months Ended March 31, 2024 2023 (in thousands) Stock-based compensation capitalized in inventory $ 45 $ 92 Cost of sales 11 23 Research and development 3,921 3,484 Selling, general and administrative 9,317 7,634 Total stock-based compensation $ 13,294 $ 11,233 |
Net Income Per Share
Net Income Per Share | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | Net Income Per Share We compute our basic and diluted net income per share in conformity with the two-class method required for companies with participating shares. Under the two-class method, net income is determined by allocating net income between common stock and unvested RSAs. We compute basic net income per share by dividing our net income attributable to common stockholders by the weighted-average number of common shares outstanding during the period. We compute diluted net income per share by dividing our net income attributable to common stockholders by the weighted-average number of common shares outstanding during the period, including potentially dilutive stock options and unvested restricted stock unites (“RSUs”), less unvested RSAs. We use the treasury stock method to determine the number of dilutive shares of common stock resulting from stock options and unvested RSUs. The following table shows the computation of net income per share for each period: Three Months Ended March 31, 2024 2023 (in thousands) Numerator: Net income attributable to common stockholders $ 27,514 $ 15,807 Denominator: Weighted-average shares used to compute basic net income per common share 102,791 107,885 Dilutive effect of employee stock options and unvested RSUs 7,124 7,540 Weighted-average shares used to compute diluted net income per common share 109,915 115,425 Basic net income per common share $ 0.27 $ 0.15 Diluted net income per common share $ 0.25 $ 0.14 As of March 31, 2024, we had 26.1 million stock options, 0.1 million RSUs and 1.0 million RSAs outstanding. As of December 31, 2023, we had 23.4 million stock options, 0.1 million RSUs and 0.7 million RSAs outstanding. We excluded from the computation of diluted net income per share, on a weighted-average basis, 11.5 million stock options outstanding during the three months ended March 31, 2024 and 10.4 million stock options and unvested RSUs outstanding during the three months ended March 31, 2023, because including them would have reduced dilution. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes We recorded income tax expense of $7.2 million for the three months ended March 31, 2024, compared to $2.6 million for the three months ended March 31, 2023. The increase during the three months ended March 31, 2024 was primarily due to increased pretax book income compared to the corresponding period in 2023. 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 research and development 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, 2024, unrecognized tax benefits increased by $0.7 million. Each quarter, we assess the likelihood that we will generate sufficient taxable income to use our federal and state deferred tax assets. Except for the valuation allowances that offset the value of 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 Income in the period in which such determination is made. Beginning in 2022, the Tax Cuts and Jobs Act of 2017 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. Congress has considered legislation that would defer the amortization requirement to later years, but as of March 31, 2024, the requirement has not been modified. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Pharmaceutical Manufacturer Services Amendment Effective April 1, 2024, we amended the pharmaceutical manufacturer services agreement between us and Optime Care, Inc. (“Optime”), dated as of August 4, 2017 (the “Optime Agreement”), to extend its term to March 31, 2027, with automatic renewal for successive three-year terms. The material terms of the Optime Agreement are described in our Current Report on Form 8-K filed with the Securities and Exchange Commission (the “SEC”) on August 7, 2017, as qualified by reference to the original agreement, a copy of which was filed as an exhibit to our Quarterly Report on Form 10-Q filed with the SEC on November 2, 2017. New Office Sublease Agreement On April 12, 2024, we entered into a six-year sublease (the “Sublease”) with Zuora, Inc. for office space located at 101 Redwood Shores Parkway, Redwood City, California 94065 (the “Building”), effective from July 1, 2024. The leased property will serve as our new headquarters. The portion of the premises subject to the Sublease is approximately 50,632 rentable square feet. Pursuant to the Sublease, we will also have access to additional square feet of common amenities in the Building (“Shared Amenities Space”). The Sublease is expected to commence on or around July 1, 2024 and will end on June 30, 2030. We will be obligated to pay a base rent of an average of $1.4 million annually and a Shared Amenities Space base rent of an average of $0.2 million annually over the term of the lease. Pursuant to the Sublease, under certain circumstances, we also have the right to sublease additional space in the Building. As a result of the agreement, we expect to record a right-of-use asset and corresponding lease liability related to the leased property based on the present value of lease payments in the third quarter of fiscal year 2024. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024 and (ii) condensed consolidated statements of income, comprehensive income, cash flows and stockholders’ equity for the three-month periods ended March 31, 2024 and 2023. 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-month period ended March 31, 2024 are not necessarily indicative of the results for the remainder of 2024 or any other period. These financial statements and notes should be read in conjunction with the financial statements for the year ended December 31, 2023 included in our Annual Report on Form 10-K. The December 31, 2023 balance sheet was derived from audited financial statements at that date. |
Recently Issued Accounting Pronouncements Not Yet Adopted | Recently Issued Accounting Pronouncements Not Yet Adopted In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2023-09, which requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as information on income taxes paid. The standard is intended to benefit investors by providing more detailed income tax disclosures that would be useful in making capital allocation decisions. This ASU is effective for public companies with annual periods beginning after December 15, 2024, with early adoption permitted. We plan to adopt this guidance for the fiscal year ending December 31, 2025. We are currently evaluating the effects adoption of this guidance will have on the condensed consolidated financial statements. In November 2023, the FASB issued ASU No. 2023-07, to improve the disclosures about a public entity’s reportable segments and address requests from investors for additional, more detailed information about a reportable segment’s expenses. The standard is effective for public companies with annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024 with early adoption permitted. We plan to adopt this guidance for the fiscal year ending December 31, 2024. We are currently evaluating the effects adoption of this guidance will have on the condensed consolidated financial statements. |
Composition of Certain Balanc_2
Composition of Certain Balance Sheet Items (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of composition of inventory, current | Inventory March 31, December 31, (in thousands) Raw materials $ 704 $ — Work in progress 7,132 8,233 Finished goods 7,200 7,741 Total inventory 15,036 15,974 Less strategic inventory classified as non-current (7,846) (8,244) Total inventory classified as current $ 7,190 $ 7,730 |
Schedule of composition of inventory, noncurrent | Inventory March 31, December 31, (in thousands) Raw materials $ 704 $ — Work in progress 7,132 8,233 Finished goods 7,200 7,741 Total inventory 15,036 15,974 Less strategic inventory classified as non-current (7,846) (8,244) Total inventory classified as current $ 7,190 $ 7,730 |
Schedule of prepaid expenses and other current assets | Prepaid expenses and other current assets March 31, December 31, (in thousands) Prepaid Expenses $ 5,542 $ 4,319 Other Current Assets 18,356 23,243 $ 23,898 $ 27,562 |
Schedule of other accrued liabilities | Accrued and other liabilities March 31, December 31, (in thousands) Government rebates $ 27,539 $ 18,468 Income taxes payable 13,458 1,814 Accrued compensation 11,110 25,457 Accrued selling and marketing costs 3,342 1,771 Legal fees 1,362 542 Excise tax payable 997 1,078 Professional fees 716 389 Accrued Manufacturing Costs 157 1,455 Other 1,063 654 Total accrued and other liabilities $ 59,744 $ 51,628 |
Available-for-Sale Marketable_2
Available-for-Sale Marketable Securities and Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 $ 112,895 $ 97,170 Short-term marketable securities 261,011 232,670 Long-term marketable securities 40,276 57,176 Total marketable securities $ 414,182 $ 387,016 |
Schedule of available-for-sale securities | The following table presents our available-for-sale securities grouped by asset type: Fair Value March 31, 2024 December 31, 2023 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 $ 180,474 $ 112 $ (64) $ 180,522 $ 120,508 $ 307 $ — $ 120,815 Commercial paper Level 2 65,035 8 (15) 65,028 75,308 20 (9) 75,319 U.S. Treasury securities Level 1 59,222 7 (3) 59,226 93,655 61 (4) 93,712 Money market funds Level 1 109,406 — — 109,406 97,170 — — 97,170 Total marketable securities $ 414,137 $ 127 $ (82) $ 414,182 $ 386,641 $ 388 $ (13) $ 387,016 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024 2023 Cash paid for operating lease liabilities $ 617 $ 578 Recognition of right-of-use asset in exchange for lease liability $ 297 $ — Weighted-average remaining lease term 4 months 3 months Weighted-average discount rate 8.0 % 4.0 % |
Schedule of future minimum lease payments under non-cancelable operating leases | As of March 31, 2024, future minimum lease payments under non-cancelable operating leases were as follows (in thousands): 2024 (remainder) 77 Total operating lease payments 77 Less imputed interest (1) Present value of operating lease liabilities $ 76 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Summary of stock-based compensation | The following table summarizes our stock-based compensation by account: Three Months Ended March 31, 2024 2023 (in thousands) Stock-based compensation capitalized in inventory $ 45 $ 92 Cost of sales 11 23 Research and development 3,921 3,484 Selling, general and administrative 9,317 7,634 Total stock-based compensation $ 13,294 $ 11,233 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024 2023 (in thousands) Numerator: Net income attributable to common stockholders $ 27,514 $ 15,807 Denominator: Weighted-average shares used to compute basic net income per common share 102,791 107,885 Dilutive effect of employee stock options and unvested RSUs 7,124 7,540 Weighted-average shares used to compute diluted net income per common share 109,915 115,425 Basic net income per common share $ 0.27 $ 0.15 Diluted net income per common share $ 0.25 $ 0.14 |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies (Details) compound in Thousands | 3 Months Ended |
Mar. 31, 2024 compound series | |
Accounting Policies [Line Items] | |
Number of series of selective cortisol modulators | series | 4 |
Minimum | |
Accounting Policies [Line Items] | |
Number of compounds (more than) | compound | 1 |
Composition of Certain Balanc_3
Composition of Certain Balance Sheet Items - Schedule of Composition of Inventory (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Balance Sheet Related Disclosures [Abstract] | ||
Raw materials | $ 704 | $ 0 |
Work in progress | 7,132 | 8,233 |
Finished goods | 7,200 | 7,741 |
Total inventory | 15,036 | 15,974 |
Less strategic inventory classified as non-current | (7,846) | (8,244) |
Total inventory classified as current | $ 7,190 | $ 7,730 |
Composition of Certain Balanc_4
Composition of Certain Balance Sheet Items - Schedule of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Prepaid Expenses | $ 5,542 | $ 4,319 |
Other Current Assets | 18,356 | 23,243 |
Prepaid expenses and other current assets | $ 23,898 | $ 27,562 |
Composition of Certain Balanc_5
Composition of Certain Balance Sheet Items - Schedule of Other Accrued Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Balance Sheet Related Disclosures [Abstract] | ||
Government rebates | $ 27,539 | $ 18,468 |
Income taxes payable | 13,458 | 1,814 |
Accrued compensation | 11,110 | 25,457 |
Accrued selling and marketing costs | 3,342 | 1,771 |
Legal fees | 1,362 | 542 |
Excise tax payable | 997 | 1,078 |
Professional fees | 716 | 389 |
Accrued Manufacturing Costs | 157 | 1,455 |
Other | 1,063 | 654 |
Total accrued and other liabilities | $ 59,744 | $ 51,628 |
Composition of Certain Balanc_6
Composition of Certain Balance Sheet Items - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Balance Sheet Related Disclosures [Abstract] | ||
Deposits for clinical trials | $ 6.3 | $ 6.4 |
Available-for-Sale Marketable_3
Available-for-Sale Marketable 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, 2024 | Dec. 31, 2023 |
Debt Securities, Available-for-sale [Line Items] | ||
Total marketable securities | $ 414,182 | $ 387,016 |
Cash equivalents | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total marketable securities | 112,895 | 97,170 |
Short-term marketable securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total marketable securities | 261,011 | 232,670 |
Long-term marketable securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total marketable securities | $ 40,276 | $ 57,176 |
Available-for-Sale Marketable_4
Available-for-Sale Marketable Securities and Fair Value Measurements - Schedule of Available-for-Sale Securities (Details) - Estimate of fair value measurement - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 414,137 | $ 386,641 |
Gross Unrealized Gains | 127 | 388 |
Gross Unrealized Losses | (82) | (13) |
Estimated Fair Value | 414,182 | 387,016 |
Corporate bonds | Level 2 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 180,474 | 120,508 |
Gross Unrealized Gains | 112 | 307 |
Gross Unrealized Losses | (64) | 0 |
Estimated Fair Value | 180,522 | 120,815 |
Commercial paper | Level 2 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 65,035 | 75,308 |
Gross Unrealized Gains | 8 | 20 |
Gross Unrealized Losses | (15) | (9) |
Estimated Fair Value | 65,028 | 75,319 |
U.S. Treasury securities | Level 1 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 59,222 | 93,655 |
Gross Unrealized Gains | 7 | 61 |
Gross Unrealized Losses | (3) | (4) |
Estimated Fair Value | 59,226 | 93,712 |
Money market funds | Level 1 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 109,406 | 97,170 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | $ 109,406 | $ 97,170 |
Available-for-Sale Marketable_5
Available-for-Sale Marketable Securities and Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | |
Debt Securities, Available-for-sale [Line Items] | ||
Interest receivable, current | $ 2 | $ 1.7 |
Maximum maturity period | 27 months | |
Maximum maturity period, short-term securities | 1 year | |
Weighted average maturity period | 6 months | |
Minimum | ||
Debt Securities, Available-for-sale [Line Items] | ||
Long-term marketable securities remaining maturity | 12 months | |
Maximum | ||
Debt Securities, Available-for-sale [Line Items] | ||
Long-term marketable securities remaining maturity | 19 months |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) | 3 Months Ended | |||
Feb. 08, 2023 | Mar. 31, 2024 | Dec. 31, 2022 | Dec. 31, 2023 | |
Loss Contingencies [Line Items] | ||||
Accrued liability, litigation | $ 0 | $ 14,000,000 | ||
Insurance recovery receivable | 0 | $ 14,000,000 | ||
Other losses for contingent liability | 0 | |||
Other provisions for a loss contingency | 0 | |||
Melucci | Settled Litigation | ||||
Loss Contingencies [Line Items] | ||||
Payment awarded to other party | $ 14,000,000 | |||
Litigation settlement, expense | $ 14,000,000 | |||
Insurance recoveries | $ 14,000,000 | |||
Insurance recovery receivable | $ 14,000,000 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||||
Mar. 19, 2024 | Mar. 31, 2024 | Mar. 31, 2023 | Jul. 01, 2024 | Dec. 31, 2023 | |
Operating Leased Assets [Line Items] | |||||
Operating lease, term extension | 1 month | ||||
Operating lease expenses | $ 600 | $ 600 | |||
Short-term lease, liability, to be paid, remainder of fiscal year | 700 | ||||
Short-term operating lease liability | 76 | $ 151 | |||
Operating lease right-of-use asset | $ 61 | $ 120 | |||
Lease Amendment | |||||
Operating Leased Assets [Line Items] | |||||
Operating lease expenses | $ 200 | ||||
Forecast | |||||
Operating Leased Assets [Line Items] | |||||
Total operating lease payments | $ 9,600 |
Leases - Right-of-use Assets an
Leases - Right-of-use Assets and Related Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Leases [Abstract] | ||
Cash paid for operating lease liabilities | $ 617 | $ 578 |
Recognition of right-of-use asset in exchange for lease liability | $ 297 | $ 0 |
Weighted-average remaining lease term | 4 months | 3 months |
Weighted-average discount rate | 8% | 4% |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments (Details) $ in Thousands | Mar. 31, 2024 USD ($) |
Leases [Abstract] | |
2024 (remainder) | $ 77 |
Total operating lease payments | 77 |
Less imputed interest | (1) |
Present value of operating lease liabilities | $ 76 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) $ / shares in Units, $ in Thousands, shares in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2024 USD ($) plan $ / shares shares | Mar. 31, 2023 USD ($) $ / shares shares | Dec. 31, 2023 USD ($) shares | Jan. 31, 2024 USD ($) | |
Shareholders Equity [Line Items] | ||||
Repurchase of common stock in connection with Stock Repurchase Program | $ 476 | $ 0 | ||
Number of stock option plans | plan | 1 | |||
Payment tax withholding share-based payment arrangement | $ 1,756 | $ 1,228 | ||
Stock Repurchase Program | ||||
Shareholders Equity [Line Items] | ||||
Repurchase of common stock in connection with Stock Repurchase Program (in shares) | shares | 0.1 | |||
Common stock repurchased, average price (in dollars per share) | $ / shares | $ 23.82 | |||
Repurchase of common stock in connection with Stock Repurchase Program | $ 500 | |||
Stock repurchase program, remaining authorized amount available for repurchase | $ 199,500 | |||
Stock Repurchase Program | Common Stock | ||||
Shareholders Equity [Line Items] | ||||
Stock repurchase amount | $ 200,000 | |||
Stock Options | ||||
Shareholders Equity [Line Items] | ||||
Number of treasury shares outstanding (in shares) | shares | 31.2 | 30.9 | ||
Common shares issued upon exercise of options (in share) | shares | 0.4 | 0.5 | ||
Shares withheld for tax withholding obligation (in shares) | shares | 0.1 | 0.3 | ||
Payment tax withholding share-based payment arrangement | $ 900 | $ 1,100 | ||
Restricted Stock Awards (RSAs) | ||||
Shareholders Equity [Line Items] | ||||
Grants in period (in shares) | shares | 0.4 | 0.3 | ||
Weighted average grant date fair value (in dollars per share) | $ / shares | $ 23.14 | $ 22.39 | ||
Allocated share-based compensation expense | $ 1,400 | $ 3,200 | ||
Employee Stock | ||||
Shareholders Equity [Line Items] | ||||
ESPP maximum employee subscription rate | 10% | |||
Award holding period | 1 year | |||
Shares issued in period (in shares) | shares | 0.1 | 0.1 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Stock-Based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation capitalized in inventory | $ 45 | $ 92 |
Total stock-based compensation | 13,294 | 11,233 |
Cost of sales | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Allocated share-based compensation expense | 11 | 23 |
Research and development | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Allocated share-based compensation expense | 3,921 | 3,484 |
Selling, general and administrative | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Allocated share-based compensation expense | $ 9,317 | $ 7,634 |
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, 2024 | Mar. 31, 2023 | |
Numerator: | ||
Net income attributable to common stockholders, basic | $ 27,514 | $ 15,807 |
Net income attributable to common stockholders, diluted | $ 27,514 | $ 15,807 |
Denominator: | ||
Weighted-average shares used to compute basic net income per share (in shares) | 102,791 | 107,885 |
Dilutive effect of employee stock options and unvested RSUs (in shares) | 7,124 | 7,540 |
Weighted-average shares used to compute diluted net income per share (in shares) | 109,915 | 115,425 |
Basic net income per common share (in dollars per share) | $ 0.27 | $ 0.15 |
Diluted net income per common share (in dollars per share) | $ 0.25 | $ 0.14 |
Net Income Per Share - Narrativ
Net Income Per Share - Narrative (Details) - shares shares in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Restricted Stock Units and Stock Options | |||
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) | 11.5 | 10.4 | |
Stock Options to Purchase Common Stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Stock options outstanding (in shares) | 26.1 | 23.4 | |
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) | 0.1 | 0.1 | |
Restricted Stock Awards (RSAs) | |||
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) | 1 | 0.7 |
Income taxes (Details)
Income taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense | $ 7,231 | $ 2,555 |
Unrecognized tax benefits, period increase | $ 700 |
Subsequent Events (Details)
Subsequent Events (Details) $ in Millions | 3 Months Ended | |||
Mar. 31, 2024 USD ($) | Mar. 31, 2023 USD ($) | Apr. 12, 2024 USD ($) ft² | Apr. 01, 2024 | |
Subsequent Event [Line Items] | ||||
Rent expense | $ 0.6 | $ 0.6 | ||
Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Lease term | 6 years | |||
Rentable area | ft² | 50,632 | |||
Obligated base rent | $ 1.4 | |||
Obligated shared amenities space base rent | $ 0.2 | |||
Subsequent Event | Optime Care, Inc. | ||||
Subsequent Event [Line Items] | ||||
Services agreement, renewal term | 3 years |