Insmed (INSM) 10-Q 6 Nov 15 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Oct. 31, 2015
Document and Entity Information
Entity Registrant Name	INSMED INC
Entity Central Index Key	1,104,506
Document Type	10-Q
Document Period End Date	Sep. 30, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		61,803,749
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q3

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 310,969	$ 159,226
Prepaid expenses and other current assets	8,289	5,488
Total current assets	319,258	164,714
In-process research and development	58,200	58,200
Fixed assets, net	8,052	7,534
Other assets	231	416
Total assets	385,741	230,864
Current liabilities:
Accounts payable	10,857	9,249
Accrued expenses	9,903	9,638
Other current liabilities	682	743
Current portion of long-term debt	25,256
Total current liabilities	46,698	19,630
Long-term liabilities:
Other long-term liabilities	44	141
Debt, long-term		24,856
Total liabilities	46,742	44,627
Shareholders' equity:
Common stock, $0.01 par value; 500,000,000 authorized shares, 61,803,749 and 49,806,131 issued and outstanding shares at September 30, 2015 and December 31, 2014, respectively	618	498
Additional paid-in capital	896,099	656,519
Accumulated deficit	(557,718)	(470,780)
Total shareholders' equity	338,999	186,237
Total liabilities and shareholders' equity	$ 385,741	$ 230,864

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2015	Dec. 31, 2014
Consolidated Balance Sheets
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, authorized shares	500,000,000	500,000,000
Common stock, issued shares	61,803,749	49,806,131
Common stock, outstanding shares	61,803,749	49,806,131

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Operating expenses:
Research and development	$ 19,221	$ 15,200	$ 54,631	$ 41,493
General and administrative	11,024	8,204	30,272	22,806
Total operating expenses	30,245	23,404	84,903	64,299
Operating loss	(30,245)	(23,404)	(84,903)	(64,299)
Investment income	75	12	166	41
Interest expense	(725)	(594)	(2,165)	(1,795)
Other (expense) / income, net	(67)	(4)	(36)	152
Loss before income taxes	(30,962)	(23,990)	(86,938)	(65,901)
Benefit from income taxes				(4,389)
Net loss and comprehensive loss	$ (30,962)	$ (23,990)	$ (86,938)	$ (61,512)
Basic and diluted net loss per share (in dollars per share)	$ (0.50)	$ (0.54)	$ (1.51)	$ (1.50)
Weighted average basic and diluted common shares outstanding (in shares)	61,774	44,082	57,565	40,882

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Operating activities
Net loss	$ (86,938)	$ (61,512)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	1,342	697
Stock based compensation expense	11,757	8,592
Amortization of debt discount and debt issuance costs	343	283
Accrual of the end of term charge on the debt	57	86
Changes in operating assets and liabilities:
Prepaid expenses and other assets	(2,616)	(1,358)
Accounts payable	1,340	2,546
Accrued expenses and other current liabilities	1,562	(818)
Net cash used in operating activities	(73,153)	(51,484)
Investing activities
Purchase of fixed assets	(3,047)	(3,814)
Net cash used in investing activities	(3,047)	(3,814)
Financing activities
Payments on capital lease obligations		(48)
Proceeds from exercise of stock options	5,001	847
Proceeds from issuance of common stock, net	222,942	108,016
Payment of debt issuance costs		(100)
Net cash provided by financing activities	227,943	108,715
Net increase in cash and cash equivalents	151,743	53,417
Cash and cash equivalents at beginning of period	159,226	113,894
Cash and cash equivalents at end of period	310,969	167,311
Supplemental disclosures of cash flow information:
Cash paid for interest	2,230	1,403
Cash received for taxes (proceeds from sales of New Jersey net operating losses)	$ 994	$ 4,389

The Company and Basis of Presen

The Company and Basis of Presentation	9 Months Ended
	Sep. 30, 2015
The Company and Basis of Presentation
The Company and Basis of Presentation	1. The Company and Basis of Presentation Insmed is a global biopharmaceutical company focused on the unmet needs of patients with rare diseases. The Company’s lead product candidate is ARIKAYCE, or liposomal amikacin for inhalation (LAI), which is in late-stage development for patients with nontuberculous mycobacteria (NTM) lung disease, a rare and often chronic infection that is capable of causing irreversible lung damage and which can be fatal when left untreated. The Company’s earlier stage pipeline includes INS1009, a nebulized prodrug formulation of treprostinil that the Company is developing for the treatment of pulmonary arterial hypertension (PAH), a chronic, life-threatening disorder characterized by abnormally high blood pressure in the arteries between the heart and lungs. The Company was incorporated in the Commonwealth of Virginia on November 29, 1999 and its principal executive offices are located in Bridgewater, New Jersey. During 2015 the Company formed subsidiaries in a number of countries in Europe in preparation for the commercialization of ARIKAYCE, upon approval in the European Union, and to support its global tax structure. The Company has operations in the United States (U.S.), Ireland, Germany, France, the United Kingdom and the Netherlands. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Transave, LLC, Insmed Pharmaceuticals, Inc., Insmed Limited, Celtrix Pharmaceuticals, Inc., Insmed Holdings Limited, Insmed Ireland Limited, Insmed France SAS, Insmed Germany GmbH and Insmed Netherlands B.V. All intercompany transactions and balances have been eliminated in consolidation. The accompanying unaudited interim consolidated financial statements have been prepared pursuant to the rules and regulations for reporting on Form 10-Q. Accordingly, certain information and disclosures required by accounting principles generally accepted in the United States for complete consolidated financial statements are not included herein. The interim statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Form 10-K for the year ended December 31, 2014. The results of operations of any interim period are not necessarily indicative of the results of operations for the full year. The unaudited interim consolidated financial information presented herein reflects all normal adjustments that are, in the opinion of management, necessary for a fair statement of the financial position, results of operations and cash flows for the periods presented. The Company is responsible for the unaudited interim consolidated financial statements included in this report. Subsequent Events — The Company has evaluated all events and transactions since September 30, 2015 and identified no significant events requiring disclosure in or adjustment to these financial statements.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2015
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies The following are interim updates to certain of the policies described in “Note 2” to the Company’s audited consolidated financial statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014: Foreign currency — The Company has operations in the United States, Ireland, Germany, France, the United Kingdom and the Netherlands. The results of its non-U.S. dollar based operations are translated to U.S. dollars at the average exchange rates during the period. Assets and liabilities are translated at the exchange rate prevailing at the balance sheet date. Equity is translated at the prevailing exchange rate at the date of the equity transaction. Translation adjustments, when material, will be reflected in shareholders’ equity and included as a component of other comprehensive loss. The Company realizes foreign currency transaction gains/(losses) in the normal course of business based on movements in the applicable exchange rates. These gains/(losses) are included as a component of other (expense) / income, net. Fair Value Measurements - The Company categorizes its financial assets and liabilities measured and reported at fair value in the financial statements on a recurring basis based upon the level of judgments associated with the inputs used to measure their fair value. Hierarchical levels, which are directly related to the amount of subjectivity associated with the inputs used to determine the fair value of financial assets and liabilities, are as follows: · Level 1 — Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. · Level 2 — Inputs (other than quoted prices included in Level 1) are either directly or indirectly observable for the assets or liability through correlation with market data at the measurement date and for the duration of the instrument’s anticipated life. · Level 3 — Inputs reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model. Each major category of financial assets and liabilities measured at fair value on a recurring basis are categorized based upon the lowest level of significant input to the valuations. The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Financial instruments in Level 1 generally include U.S. treasuries and mutual funds listed in active markets. The Company’s only assets and liabilities which were measured at fair value as of September 30, 2015 and December 31, 2014 were Level 1 and were comprised of cash and cash equivalents of $311.0 million and $159.2 million, respectively. The Company’s cash and cash equivalents permit daily redemption and the fair values of these investments are based upon the quoted prices in active markets provided by the holding financial institutions. Cash equivalents consist of liquid investments with a maturity of three months or less from the date of purchase. The Company recognizes transfers between levels within the fair value hierarchy, if any, at the end of each quarter. There were no transfers in or out of Level 1, Level 2 or Level 3 during the three and nine months ended September 30, 2015 and 2014. As of September 30, 2015 and December 31, 2014, the Company held no securities that were in an unrealized gain or loss position. The Company reviews the status of each security quarterly to determine whether an other-than-temporary impairment has occurred. In making its determination, the Company considers a number of factors, including: (1) the significance of the decline; (2) whether the securities were rated below investment grade; (3) how long the securities have been in an unrealized loss position; and (4) the Company’s ability and intent to retain the investment for a sufficient period of time for it to recover. Net Loss Per Common Share - Basic net loss per common share is computed by dividing net loss by the weighted average number of common shares outstanding during the period. Diluted net loss per common share is computed by dividing net loss by the weighted average number of common shares and other dilutive securities outstanding during the period. Potentially dilutive securities from stock options, restricted stock units and warrants to purchase common stock would be antidilutive as the Company incurred a net loss. Potentially dilutive common shares resulting from the assumed exercise of outstanding stock options and warrants are determined based on the treasury stock method. The following table sets forth the reconciliation of the weighted average number of shares used to compute basic and diluted net loss per share for the three and nine months ended September 30, 2015 and 2014: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (In thousands, except per share amounts) Numerator: Net loss $ ) $ ) $ ) $ ) Denominator: Weighted average common shares used in calculation of basic net loss per share Effect of dilutive securities: Common stock options — — — — Restricted stock and restricted stock units — — — — Common stock warrant — — — — Weighted average common shares outstanding used in calculation of diluted net loss per share Net loss per share: Basic and diluted net loss per share $ ) $ ) $ ) $ ) The following potentially dilutive securities have been excluded from the computations of diluted weighted average common shares outstanding as of September 30, 2015 and 2014 as their effect would have been anti-dilutive (in thousands): 2015 2014 Stock options to purchase common stock Restricted stock units

Identifiable Intangible Assets

Identifiable Intangible Assets	9 Months Ended
	Sep. 30, 2015
Identifiable Intangible Assets
Identifiable Intangible Assets	3. Identifiable Intangible Assets The Company believes there are no indicators of impairment relating to its in-process research and development intangible assets as of September 30, 2015.

Accrued Expenses

Accrued Expenses	9 Months Ended
	Sep. 30, 2015
Accrued Expenses
Accrued Expenses	4. Accrued Expenses Accrued expenses consist of the following: As of September 30, As of December 31, 2015 2014 (in thousands) Accrued clinical trial expenses $ $ Accrued compensation Accrued technical operation expenses Accrued office construction costs — Accrued professional fees Accrued interest payable Other accrued expenses $ $

Debt

Debt	9 Months Ended
	Sep. 30, 2015
Debt
Debt	5. Debt On June 29, 2012, the Company and its domestic subsidiaries, as co-borrowers, entered into a Loan and Security Agreement with Hercules Technology Growth Capital, Inc. (“Hercules”) that originally allowed the Company to borrow up to $20.0 million (“Loan Agreement”) at an interest rate of 9.25%. On December 15, 2014, the Company and Hercules entered into a third amendment (the “Third Amendment”) to the Loan Agreement. In connection with the Third Amendment, the Company paid a commitment fee of $25,000, and at the closing, paid a facility fee of $125,000. Under the Third Amendment, the amount of borrowings was increased by $5.0 million to a total of $25.0 million and the interest-only period was extended through December 31, 2015. In addition, in the event the Company receives at least $90.0 million in cash proceeds from the completion of certain types of equity financings, subordinated debt financings, and/or up-front cash payments from corporate transactions prior to December 31, 2015, the Company has the option to extend the maturity date of the loan to January 1, 2018. If the Company elects to exercise such option, it must pay Hercules a $250,000 fee. The Company completed an equity financing in April 2015 of $222.9 million which qualifies as a financing event under the Loan Agreement. The following table presents the components of the Company’s debt balance as of September 30, 2015 (in thousands): Debt: Notes payable $ Accretion of end of term charge Issuance fees paid to lender ) Discount from warrant ) Current portion of long-term debt ) Long-term debt $ — As of September 30, 2015, future principal repayments of the debt for each of the years ending December 31, 2015 and 2016 were as follows (in thousands): Year Ending in December 31: 2015 $ — 2016 (due in full January 1, 2016) $ The estimated fair value of the debt (categorized as a Level 2 liability for fair value measurement purposes) is determined using current market factors and the ability of the Company to obtain debt at comparable terms to those that are currently in place. The Company believes the estimated fair value at September 30, 2015 approximates the carrying amount.

Shareholders' Equity

Shareholders' Equity	9 Months Ended
	Sep. 30, 2015
Shareholders' Equity
Shareholders' Equity	6. Shareholders’ Equity Common Stock — As of September 30, 2015, the Company had 500,000,000 shares of common stock authorized with a par value of $0.01 and 61,803,749 shares of common stock issued and outstanding. In addition, as of September 30, 2015, the Company had reserved 5,240,590 shares of common stock for issuance upon the exercise of outstanding common stock options and 43,798 for issuance upon the vesting of restricted stock units. On April 6, 2015, the Company completed an underwritten public offering of 11,500,000 shares of the Company’s common stock, which included the underwriter’s exercise in full of its over-allotment option of 1,500,000 shares, at a price to the public of $20.65 per share. The Company’s net proceeds from the sale of the shares, after deducting the underwriter’s discount and offering expenses of $14.5 million, were $222.9 million. On August 18, 2014, the Company completed an underwritten public offering of 10,235,000 shares of the Company’s common stock, which included the underwriter’s exercise in full of its over-allotment option of 1,335,000 shares, at a price to the public of $11.25 per share. The Company’s net proceeds from the sale of the shares, after deducting the underwriter’s discount and offering expenses of $7.1 million, were $108.0 million. Preferred Stock — As of September 30, 2015 and December 31, 2014, the Company had 200,000,000 shares of preferred stock authorized with a par value of $0.01 and no shares of preferred stock were issued and outstanding.

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Sep. 30, 2015
Stock-Based Compensation
Stock-Based Compensation	7. Stock-Based Compensation The Company’s current equity compensation plan, the 2015 Incentive Plan, was approved by shareholders at the Company’s Annual Meeting of Shareholders on May 21, 2015. The 2015 Incentive Plan is administered by the Compensation Committee and the Board of Directors of the Company. Under the terms of the 2015 Incentive Plan, the Company is authorized to grant a variety of incentive awards based on its common stock, including stock options (both incentive stock options and non-qualified stock options), performance options/shares and other stock awards, as well as the payment of incentive bonuses to all employees and non-employee directors. On May 21, 2015, 5,000,000 shares of the Company’s common stock were authorized and as of September 30, 2015, there were 4,338,355 shares remaining for future grants (or issuances) of stock options, stock appreciation rights, restricted stock, restricted stock units and incentive bonuses under the 2015 Incentive Plan. The 2015 Incentive Plan will terminate on April 9, 2025 unless it is extended or terminated earlier pursuant to its terms. In addition, from time to time, the Company makes inducement grants of stock options. These awards are made pursuant to the NASDAQ inducement grant exception as a component of new hires’ employment compensation in connection with the Company’s equity grant program. During the nine months ended September 30, 2015, the Company granted 227,000 inducement stock options to new employees. Stock Options - The Company calculates the fair value of stock options granted using the Black-Scholes valuation model. The following table summarizes the Company’s grant date fair value and assumptions used in determining the fair value of all stock options granted: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Volatility 78.1%-79.1% 84.1%-85.4% 78.1%-82.3% 83.1%-85.5% Risk-free interest rate 1.49%-1.72% 1.62%-1.83% 1.31%-1.72% 1.46%-1.83% Dividend yield 0.0% 0.0% 0.0% 0.0% Expected option term (in years) 6.25 6.25 6.25 6.25 Weighted average fair value of stock options granted $17.32 $10.10 $14.38 $11.74 For all periods presented, the volatility factor was based on the Company’s historical volatility since the closing of the Company’s merger with Transave on December 1, 2010. The expected life was determined using the simplified method as described in ASC Topic 718, “Accounting for Stock Compensation”, which is the midpoint between the vesting date and the end of the contractual term. The risk-free interest rate is based on the U.S. Treasury yield in effect at the date of grant. Forfeitures are based on the actual percentage of option forfeitures since the closing of the Company’s merger with Transave on December 1, 2010, and this is the basis for future forfeiture expectations. From time to time, the Company grants performance-condition options to certain of the Company’s employees. Vesting of these options is subject to the Company achieving certain performance criteria established at the date of grant and the individuals fulfilling a service condition (continued employment). As of September 30, 2015 the Company had performance options totaling 168,334 shares outstanding which have not met the recognition criteria to date. For the three months ended March 31, 2015, approximately $1.5 million of non-cash compensation expense was recorded related to certain performance based options as the recognition criteria was met upon the marketing authorization application for ARIKAYCE being accepted for filing by the European Medicines Agency in February 2015. The following table summarizes the Company’s aggregate stock option activity for the nine months ended September 30, 2015: Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life in Years Aggregate Intrinsic Value (in thousands) Options outstanding at December 31, 2014 $ Granted $ Exercised ) $ Forfeited or expired ) $ Options outstanding at September 30, 2015 $ $ Vested and expected to vest at September 30, 2015 $ $ Exercisable at September 30, 2015 $ $ The total intrinsic value of stock options exercised during the three months ended September 30, 2015 and 2014 was $0.7 million and $0.8 million, respectively, and during the nine months ended September 30, 2015 and 2014 was $4.6 million and $1.5 million, respectively. As of September 30, 2015, there was $30.5 million of unrecognized compensation expense related to unvested stock options which is expected to be recognized over a weighted average period of 2.6 years. Included above in unrecognized compensation expense was $1.4 million related to outstanding performance-based options. The following table summarizes the range of exercise prices and the number of stock options outstanding and exercisable: Outstanding as of September 30, 2015 Exercisable as of September 30, 2015 Weighted Average Remaining Weighted Range of Exercise Number of Contractual Average Number of Weighted Average Prices ($) Options Term (in years) Exercise Price (S) Options Exercise Price ($) — — — — Restricted Stock and Restricted Stock Units — The Company may grant Restricted Stock (“RS”) and Restricted Stock Units (“RSUs”) to eligible employees, including its executives, and non-employee directors. Each RS and RSU represents a right to receive one share of the Company’s common stock upon the completion of a specific period of continued service or achievement of a certain milestone. RS and RSU awards granted are generally valued at the market price of the Company’s common stock on the date of grant. The Company recognizes noncash compensation expense for the fair values of these RS and RSUs on a straight-line basis over the requisite service period of these awards. The following table summarizes the Company’s RSU award activity during the nine months ended September 30, 2015: Weighted Number of Average RSUs Grant Price Outstanding at December 31, 2014 $ Granted Released ) Outstanding at September 30, 2015 $ Expected to vest $ The following table summarizes the aggregate stock-based compensation recorded in the Consolidated Statements of Comprehensive Loss related to stock options and RSUs during the three and nine months ended September 30, 2015 and 2014: Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 (in millions) (in millions) Research and development expenses $ $ $ $ General and administrative expenses Total $ $ $ $

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2015
Income Taxes
Income Taxes	8. Income Taxes The benefit for income taxes was $0 and $4.4 million for the nine months ended September 30, 2015 and 2014, respectively. The benefit for income taxes recorded for the nine months ended September 30, 2014 solely reflects the reversal of a valuation allowance previously recorded against the Company’s New Jersey State net operating losses (“NOLs”) that resulted from the Company’s sale of a portion of its New Jersey State NOLs under the State of New Jersey’s Technology Business Tax Certificate Transfer Program (the “Program”) for cash of $4.4 million, net of commissions. The Program allows qualified technology and biotechnology businesses in New Jersey to sell unused amounts of NOLs and defined research and development tax credits for cash. The Company is subject to U.S. federal, state and foreign income taxes. The statute of limitations for tax audit is open for the federal tax returns for the years ended 2011 and later and is generally open for certain states for the years 2010 and later. The Company’s U.S. federal tax return for the year ended December 31, 2013 is currently under audit by the Internal Revenue Service. The Company has incurred net operating losses since inception, with the exception of 2009. Such loss carryforwards would be subject to audit in any tax year in which those losses are utilized, notwithstanding the year of origin. The Company’s policy is to recognize interest accrued related to unrecognized tax benefits and penalties in income tax expense. The Company has recorded no such expense. As of September 30, 2015 and December 31, 2014, the Company has recorded no reserves for unrecognized income tax benefits, nor has it recorded any accrued interest or penalties related to uncertain tax positions. The Company does not anticipate any material changes in the amount of unrecognized tax positions over the next twelve months. At December 31, 2014, the Company had federal net operating loss carryforwards for income tax purposes of approximately $461.8 million. Due to the limitation on NOLs as more fully discussed below, $283.5 million of the NOLs are available to offset future taxable income, if any. The NOL carryovers and general business tax credits expire in various years beginning in 2018. For state tax purposes, the Company has approximately $63 million of New Jersey NOLs available to offset against future taxable income or to be sold as part of the New Jersey Transfer Program. The Company also has California and Virginia NOLs that are entirely limited due to Section 382 (as discussed below), in addition to changing state apportionment allocations, as the Company is now 100% resident in New Jersey. During 2014, the Company completed an Internal Revenue Code Section 382 (“Section 382”) analysis in order to determine the amount of losses that are currently available for potential offset against future taxable income, if any. It was determined that the utilization of the Company’s NOL and general business tax credit carryforwards generated in tax periods up to and including December 2010 (the “December 2010 and prior NOLs”) were subject to substantial limitations under Section 382 due to ownership changes that occurred at various points from the Company’s original organization through December 2010. In general, an ownership change, as defined by Section 382, results from transactions increasing the ownership of certain shareholders or public groups in the stock of a corporation by more than 50 percentage points over a three-year period. Since the Company’s formation, it has raised capital through the issuance of common stock on several occasions which, combined with the purchasing shareholders’ subsequent disposition of those shares, resulted in multiple changes in ownership, as defined by Section 382 since the Company’s formation in 1999. These ownership changes resulted in substantial limitations on the use of the Company’s NOLs and general business tax credit carryforwards up to and including December 2010. The Company continues to track all of its NOLs and tax credit carryforwards but has provided a full valuation allowance to offset those amounts.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2015
Commitments and Contingencies
Commitments and Contingencies	9. Commitments and Contingencies Commitments The Company has an operating lease for office and laboratory space located in Bridgewater, NJ, its corporate headquarters, that terminates in November 2019. Future minimum rental payments under this lease are $3.1 million. The Company also holds a lease that expires in October 2016 for office space in Richmond, VA, the Company’s former corporate headquarters. Future minimum rental payments under this lease total approximately $0.5 million. During 2011, the Company recorded a net present value charge of $1.2 million in general and administrative expenses associated with vacating the Richmond facility. The remaining accrual for this charge was $0.2 million as of September 30, 2015. In December 2014, the Company entered into an agreement to sublet this space for the remainder of the lease term. Rent expense charged to operations was $0.2 million and $0.4 million for the three months ended September 30, 2015 and 2014, respectively, and $0.6 million and $1.0 million for the nine months ended September 30, 2015 and 2014, respectively. Future minimum rental payments (net of sublease) required under the Company’s operating leases for the period from October 1, 2015 to December 31, 2015 and for each of the next five years are as follows (in thousands): Year Ending December 31: 2015 (remaining) $ 2016 2017 2018 2019 2020 — $ On September 15, 2015, the Company entered into a Commercial Fill/Finish Services Agreement (the “Fill/Finish Agreement”) with Ajinomoto Althea, Inc., a Delaware corporation (“Althea”), for Althea to produce, on a non-exclusive basis, ARIKAYCE in finished dosage form. Under the Fill/Finish Agreement, the Company is obligated to pay a minimum of $2.7 million for the batches of ARIKAYCE produced each calendar year during the term of the Fill/Finish Agreement. The Fill/Finish Agreement is effective as of January 1, 2015, has an initial term that ends on December 31, 2017 and may be extended for additional two year periods upon mutual written agreement of the Company and Althea at least one year prior to the expiration of its then-current term. Legal Proceedings From time to time, the Company is a party to various other lawsuits, claims and other legal proceedings that arise in the ordinary course of business. While the outcomes of these matters are uncertain, management does not expect that the ultimate costs to resolve these matters will have a material adverse effect on the Company’s consolidated financial position, results of operations or cash flows.

Summary of Significant Accoun15

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2015
Summary of Significant Accounting Policies
Foreign currency	Foreign currency — The Company has operations in the United States, Ireland, Germany, France, the United Kingdom and the Netherlands. The results of its non-U.S. dollar based operations are translated to U.S. dollars at the average exchange rates during the period. Assets and liabilities are translated at the exchange rate prevailing at the balance sheet date. Equity is translated at the prevailing exchange rate at the date of the equity transaction. Translation adjustments, when material, will be reflected in shareholders’ equity and included as a component of other comprehensive loss. The Company realizes foreign currency transaction gains/(losses) in the normal course of business based on movements in the applicable exchange rates. These gains/(losses) are included as a component of other (expense) / income, net.
Fair Value Measurements	Fair Value Measurements - The Company categorizes its financial assets and liabilities measured and reported at fair value in the financial statements on a recurring basis based upon the level of judgments associated with the inputs used to measure their fair value. Hierarchical levels, which are directly related to the amount of subjectivity associated with the inputs used to determine the fair value of financial assets and liabilities, are as follows: · Level 1 — Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. · Level 2 — Inputs (other than quoted prices included in Level 1) are either directly or indirectly observable for the assets or liability through correlation with market data at the measurement date and for the duration of the instrument’s anticipated life. · Level 3 — Inputs reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model. Each major category of financial assets and liabilities measured at fair value on a recurring basis are categorized based upon the lowest level of significant input to the valuations. The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Financial instruments in Level 1 generally include U.S. treasuries and mutual funds listed in active markets. The Company’s only assets and liabilities which were measured at fair value as of September 30, 2015 and December 31, 2014 were Level 1 and were comprised of cash and cash equivalents of $311.0 million and $159.2 million, respectively. The Company’s cash and cash equivalents permit daily redemption and the fair values of these investments are based upon the quoted prices in active markets provided by the holding financial institutions. Cash equivalents consist of liquid investments with a maturity of three months or less from the date of purchase. The Company recognizes transfers between levels within the fair value hierarchy, if any, at the end of each quarter. There were no transfers in or out of Level 1, Level 2 or Level 3 during the three and nine months ended September 30, 2015 and 2014. As of September 30, 2015 and December 31, 2014, the Company held no securities that were in an unrealized gain or loss position. The Company reviews the status of each security quarterly to determine whether an other-than-temporary impairment has occurred. In making its determination, the Company considers a number of factors, including: (1) the significance of the decline; (2) whether the securities were rated below investment grade; (3) how long the securities have been in an unrealized loss position; and (4) the Company’s ability and intent to retain the investment for a sufficient period of time for it to recover.
Net Loss Per Common Share	Net Loss Per Common Share - Basic net loss per common share is computed by dividing net loss by the weighted average number of common shares outstanding during the period. Diluted net loss per common share is computed by dividing net loss by the weighted average number of common shares and other dilutive securities outstanding during the period. Potentially dilutive securities from stock options, restricted stock units and warrants to purchase common stock would be antidilutive as the Company incurred a net loss. Potentially dilutive common shares resulting from the assumed exercise of outstanding stock options and warrants are determined based on the treasury stock method. The following table sets forth the reconciliation of the weighted average number of shares used to compute basic and diluted net loss per share for the three and nine months ended September 30, 2015 and 2014: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (In thousands, except per share amounts) Numerator: Net loss $ ) $ ) $ ) $ ) Denominator: Weighted average common shares used in calculation of basic net loss per share Effect of dilutive securities: Common stock options — — — — Restricted stock and restricted stock units — — — — Common stock warrant — — — — Weighted average common shares outstanding used in calculation of diluted net loss per share Net loss per share: Basic and diluted net loss per share $ ) $ ) $ ) $ ) The following potentially dilutive securities have been excluded from the computations of diluted weighted average common shares outstanding as of September 30, 2015 and 2014 as their effect would have been anti-dilutive (in thousands): 2015 2014 Stock options to purchase common stock Restricted stock units

Summary of Significant Accoun16

Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2015
Summary of Significant Accounting Policies
Reconciliation of the weighted average number of shares used to compute basic and diluted net loss per share	Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (In thousands, except per share amounts) Numerator: Net loss $ ) $ ) $ ) $ ) Denominator: Weighted average common shares used in calculation of basic net loss per share Effect of dilutive securities: Common stock options — — — — Restricted stock and restricted stock units — — — — Common stock warrant — — — — Weighted average common shares outstanding used in calculation of diluted net loss per share Net loss per share: Basic and diluted net loss per share $ ) $ ) $ ) $ )
Potentially dilutive securities excluded from computations of diluted weighted-average shares outstanding	The following potentially dilutive securities have been excluded from the computations of diluted weighted average common shares outstanding as of September 30, 2015 and 2014 as their effect would have been anti-dilutive (in thousands): 2015 2014 Stock options to purchase common stock Restricted stock units

Accrued Expenses (Tables)

Accrued Expenses (Tables)	9 Months Ended
	Sep. 30, 2015
Accrued Expenses
Accrued Expenses	As of September 30, As of December 31, 2015 2014 (in thousands) Accrued clinical trial expenses $ $ Accrued compensation Accrued technical operation expenses Accrued office construction costs — Accrued professional fees Accrued interest payable Other accrued expenses $ $

Debt (Tables)

Debt (Tables)	9 Months Ended
	Sep. 30, 2015
Debt
Components of the Company's debt balances	The following table presents the components of the Company’s debt balance as of September 30, 2015 (in thousands): Debt: Notes payable $ Accretion of end of term charge Issuance fees paid to lender ) Discount from warrant ) Current portion of long-term debt ) Long-term debt $ —
Future principal repayments of the Notes	As of September 30, 2015, future principal repayments of the debt for each of the years ending December 31, 2015 and 2016 were as follows (in thousands): Year Ending in December 31: 2015 $ — 2016 (due in full January 1, 2016) $

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2015
Stock-Based Compensation
Summary of Company's grant date fair value and assumptions used in determining fair value of stock options	Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Volatility 78.1%-79.1% 84.1%-85.4% 78.1%-82.3% 83.1%-85.5% Risk-free interest rate 1.49%-1.72% 1.62%-1.83% 1.31%-1.72% 1.46%-1.83% Dividend yield 0.0% 0.0% 0.0% 0.0% Expected option term (in years) 6.25 6.25 6.25 6.25 Weighted average fair value of stock options granted $17.32 $10.10 $14.38 $11.74
Summary of Company's stock option activity	Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life in Years Aggregate Intrinsic Value (in thousands) Options outstanding at December 31, 2014 $ Granted $ Exercised ) $ Forfeited or expired ) $ Options outstanding at September 30, 2015 $ $ Vested and expected to vest at September 30, 2015 $ $ Exercisable at September 30, 2015 $ $
Summary of range of exercise prices and the number of stock options outstanding and exercisable	Outstanding as of September 30, 2015 Exercisable as of September 30, 2015 Weighted Average Remaining Weighted Range of Exercise Number of Contractual Average Number of Weighted Average Prices ($) Options Term (in years) Exercise Price (S) Options Exercise Price ($) — — — —
Summary of Company's RSU activity	Weighted Number of Average RSUs Grant Price Outstanding at December 31, 2014 $ Granted Released ) Outstanding at September 30, 2015 $ Expected to vest $
Summary of aggregate stock-based compensation recorded in the Consolidated Statements of Comprehensive Loss	Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 (in millions) (in millions) Research and development expenses $ $ $ $ General and administrative expenses Total $ $ $ $

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	Sep. 30, 2015
Commitments and Contingencies
Future minimum rental payments required under operating leases	Future minimum rental payments (net of sublease) required under the Company’s operating leases for the period from October 1, 2015 to December 31, 2015 and for each of the next five years are as follows (in thousands): Year Ending December 31: 2015 (remaining) $ 2016 2017 2018 2019 2020 — $

Summary of Significant Accoun21

Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions	Sep. 30, 2015	Dec. 31, 2014
Summary of Significant Accounting Policies
Cash and cash equivalents	$ 311	$ 159.2
Securities that were in an unrealized loss or gain position	$ 0	$ 0

Summary of Significant Accoun22

Summary of Significant Accounting Policies (Details 2) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Numerator:
Net loss	$ (30,962)	$ (23,990)	$ (86,938)	$ (61,512)
Denominator:
Weighted average common shares used in calculation of basic net loss per share	61,774	44,082	57,565	40,882
Weighted average common shares outstanding used in calculation of diluted net loss per share	61,774	44,082	57,565	40,882
Net loss per share:
Basic and diluted (in dollars per share)	$ (0.50)	$ (0.54)	$ (1.51)	$ (1.50)

Summary of Significant Accoun23

Summary of Significant Accounting Policies (Details 3) - shares shares in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Stock options
Anti-dilutive securities excluded from computations of diluted weighted-average common shares outstanding
Potentially dilutive securities excluded from computations of diluted weighted-average shares outstanding (in shares)	5,241	4,674
Restricted stock units
Anti-dilutive securities excluded from computations of diluted weighted-average common shares outstanding
Potentially dilutive securities excluded from computations of diluted weighted-average shares outstanding (in shares)	44	21

Accrued Expenses (Details)

Accrued Expenses (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Accrued Expenses
Accrued clinical trial expenses	$ 4,258	$ 2,113
Accrued compensation	3,208	4,317
Accrued technical operation expenses	1,136	762
Accrued office construction costs		1,500
Accrued professional fees	931	542
Accrued interest payable	193	258
Other accrued expenses	177	146
Total accrued expenses	$ 9,903	$ 9,638

Debt (Details)

Debt (Details) - USD ($)	Apr. 06, 2015	Dec. 15, 2014	Aug. 18, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014	Jun. 29, 2012
Debt
Net proceeds from the sale of shares	$ 222,900,000		$ 108,000,000	$ 222,942,000	$ 108,016,000
Debt:
Notes payable				25,000,000
Accretion of end of term charge				371,000
Issuance fees paid to lender				(77,000)
Discount from warrant				(38,000)
Current portion of long-term debt				(25,256,000)
Long-term debt						$ 24,856,000
Future principal repayments of the Notes
2016 (due in full January 1, 2016)				25,000,000
Total				$ 25,000,000
Loan and Security Agreement
Debt
Maximum borrowing capacity of term loan		$ 25,000,000					$ 20,000,000
Interest rate (as a percent)							9.25%
Commitment fee		25,000
Facility fee		125,000
Increase in borrowing capacity		5,000,000
Maturity date extension fee		250,000
Loan and Security Agreement | Minimum
Debt
Amount of cash proceeds required to extend maturity date of loan		$ 90,000,000

Shareholders' Equity (Details)

Shareholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands	Apr. 06, 2015	Aug. 18, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Shareholders' Equity
Common stock, authorized shares			500,000,000		500,000,000
Common stock, par value (in dollars per share)			$ 0.01		$ 0.01
Common stock, issued shares			61,803,749		49,806,131
Common stock, outstanding shares			61,803,749		49,806,131
Common stock disclosures
Number of shares issued under underwritten public offering	11,500,000	10,235,000
Number of share's exercise in full of over-allotment option by underwriter	1,500,000	1,335,000
Shares price (in dollars per share)	$ 20.65	$ 11.25
Underwriter's discount and offering expenses	$ 14,500	$ 7,100
Net proceeds from the sale of shares	$ 222,900	$ 108,000	$ 222,942	$ 108,016
Preferred stock
Preferred stock, authorized			200,000,000		200,000,000
Preferred stock, par value			$ 0.01		$ 0.01
Preferred stock, shares issued			0		0
Preferred stock, shares outstanding			0		0
Stock options
Common stock disclosures
Common stock shares reserved for issuance			5,240,590
Restricted stock units
Common stock disclosures
Common stock shares reserved for issuance			43,798

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) - shares	9 Months Ended
	Sep. 30, 2015	May. 21, 2015
Stock-Based Compensation
Shares available for grant	4,338,355	5,000,000
Inducement stock option granted to new employees	227,000

Stock-Based Compensation (Det28

Stock-Based Compensation (Details 2) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended			9 Months Ended
	Sep. 30, 2015	Mar. 31, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Number of Shares
Options outstanding (in shares)		4,400,106		4,400,106
Granted (in shares)				1,740,150
Exercised (in shares)				(471,138)
Forfeited or expired (in shares)				(428,528)
Options outstanding (in shares)	5,240,590			5,240,590
Vested and expected to vest (in shares)	5,002,447			5,002,447
Exercisable (in shares)	1,787,295			1,787,295
Weighted Average Exercise Price
Options outstanding (in dollars per share)		$ 10.59		$ 10.59
Granted (in dollars per share)				20.68
Exercised (in dollars per share)				10.61
Forfeited or expired (in dollars per share)				14.93
Options outstanding (in dollars per share)	$ 13.59			13.59
Vested and expected to vest (in dollars per share)	13.38			13.38
Exercisable (in dollars per share)	$ 8.48			$ 8.48
Weighted Average Remaining Contractual Life
Options outstanding				8 years 3 months 7 days
Vested and expected to vest				8 years 2 months 23 days
Exercisable				7 years 5 months 1 day
Aggregate Intrinsic Value
Options outstanding (in dollars)	$ 56,828			$ 56,828
Vested and expected to vest (in dollars)	55,303			55,303
Exercisable (in dollars)	$ 28,484			$ 28,484
Stock options
Fair value and assumptions used in determining fair value of stock options
Dividend yield (as a percent)	0.00%		0.00%	0.00%	0.00%
Expected option term	6 years 3 months		6 years 3 months	6 years 3 months	6 years 3 months
Weighted-average fair value of stock options granted (in dollars per share)	$ 17.32		$ 10.10	$ 14.38	$ 11.74
Stock options | Minimum
Fair value and assumptions used in determining fair value of stock options
Volatility (as a percent)	78.10%		84.10%	78.10%	83.10%
Risk-free interest rate (as a percent)	1.49%		1.62%	1.31%	1.46%
Stock options | Maximum
Fair value and assumptions used in determining fair value of stock options
Volatility (as a percent)	79.10%		85.40%	82.30%	85.50%
Risk-free interest rate (as a percent)	1.72%		1.83%	1.72%	1.83%
Performance shares
Stock Option disclosures
Non-cash compensation expense		$ 1,500
Number of Shares
Options outstanding (in shares)	168,334			168,334

Stock-Based Compensation (Det29

Stock-Based Compensation (Details 3) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Stock options
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range
Total intrinsic value of stock options exercised during the period	$ 0.7	$ 0.8	$ 4.6	$ 1.5
Unrecognized compensation expense related to unvested stock options	30.5		$ 30.5
Expected weighted average period for recognizing unrecognized compensation expense			2 years 7 months 6 days
Performance shares
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range
Unrecognized compensation expense related to unvested stock options	$ 1.4		$ 1.4
$3.03 to $3.29
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range
Range of Exercise Prices lower range limit (in dollars per share)			$ 3.03
Range of Exercise Prices upper range limit (in dollars per share)			$ 3.29
Number of Options outstanding (in shares)	153,878		153,878
Weighted Average Remaining Contractual Term			6 years 3 months 4 days
Outstanding Options, Weighted Average Exercise Price (in dollars per share)	$ 3.05		$ 3.05
Number of Options exercisable (in shares)	128,915		128,915
Exercisable Options, Weighted Average Exercise Price (in dollars per share)	$ 3.05		$ 3.05
$3.40 to $3.40
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range
Range of Exercise Prices lower range limit (in dollars per share)			3.40
Range of Exercise Prices upper range limit (in dollars per share)			$ 3.40
Number of Options outstanding (in shares)	708,314		708,314
Weighted Average Remaining Contractual Term			6 years 11 months 12 days
Outstanding Options, Weighted Average Exercise Price (in dollars per share)	$ 3.40		$ 3.40
Number of Options exercisable (in shares)	531,236		531,236
Exercisable Options, Weighted Average Exercise Price (in dollars per share)	$ 3.40		$ 3.40
$3.60 to $6.90
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range
Range of Exercise Prices lower range limit (in dollars per share)			3.60
Range of Exercise Prices upper range limit (in dollars per share)			$ 6.90
Number of Options outstanding (in shares)	584,572		584,572
Weighted Average Remaining Contractual Term			7 years 2 months 12 days
Outstanding Options, Weighted Average Exercise Price (in dollars per share)	$ 6.01		$ 6.01
Number of Options exercisable (in shares)	343,412		343,412
Exercisable Options, Weighted Average Exercise Price (in dollars per share)	$ 5.95		$ 5.95
$6.96 to $12.44
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range
Range of Exercise Prices lower range limit (in dollars per share)			6.96
Range of Exercise Prices upper range limit (in dollars per share)			$ 12.44
Number of Options outstanding (in shares)	702,620		702,620
Weighted Average Remaining Contractual Term			7 years 7 months 28 days
Outstanding Options, Weighted Average Exercise Price (in dollars per share)	$ 11.34		$ 11.34
Number of Options exercisable (in shares)	351,382		351,382
Exercisable Options, Weighted Average Exercise Price (in dollars per share)	$ 11.23		$ 11.23
$12.58 to $13.94
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range
Range of Exercise Prices lower range limit (in dollars per share)			12.58
Range of Exercise Prices upper range limit (in dollars per share)			$ 13.94
Number of Options outstanding (in shares)	545,475		545,475
Weighted Average Remaining Contractual Term			8 years 7 months 28 days
Outstanding Options, Weighted Average Exercise Price (in dollars per share)	$ 12.77		$ 12.77
Number of Options exercisable (in shares)	131,828		131,828
Exercisable Options, Weighted Average Exercise Price (in dollars per share)	$ 12.78		$ 12.78
$14.04 to $16.07
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range
Range of Exercise Prices lower range limit (in dollars per share)			14.04
Range of Exercise Prices upper range limit (in dollars per share)			$ 16.07
Number of Options outstanding (in shares)	808,650		808,650
Weighted Average Remaining Contractual Term			8 years 9 months
Outstanding Options, Weighted Average Exercise Price (in dollars per share)	$ 15.34		$ 15.34
Number of Options exercisable (in shares)	120,324		120,324
Exercisable Options, Weighted Average Exercise Price (in dollars per share)	$ 14.43		$ 14.43
$16.19 to $20.49
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range
Range of Exercise Prices lower range limit (in dollars per share)			16.19
Range of Exercise Prices upper range limit (in dollars per share)			$ 20.49
Number of Options outstanding (in shares)	646,581		646,581
Weighted Average Remaining Contractual Term			8 years 7 months 2 days
Outstanding Options, Weighted Average Exercise Price (in dollars per share)	$ 19.53		$ 19.53
Number of Options exercisable (in shares)	174,573		174,573
Exercisable Options, Weighted Average Exercise Price (in dollars per share)	$ 19.65		$ 19.65
$20.92 to $22.14
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range
Range of Exercise Prices lower range limit (in dollars per share)			20.92
Range of Exercise Prices upper range limit (in dollars per share)			$ 22.14
Number of Options outstanding (in shares)	107,300		107,300
Weighted Average Remaining Contractual Term			9 years 4 months 24 days
Outstanding Options, Weighted Average Exercise Price (in dollars per share)	$ 21.54		$ 21.54
Number of Options exercisable (in shares)	5,625		5,625
Exercisable Options, Weighted Average Exercise Price (in dollars per share)	$ 21.54		$ 21.54
$22.76 to $22.76
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range
Range of Exercise Prices lower range limit (in dollars per share)			22.76
Range of Exercise Prices upper range limit (in dollars per share)			$ 22.76
Number of Options outstanding (in shares)	823,700		823,700
Weighted Average Remaining Contractual Term			9 years 7 months 24 days
Outstanding Options, Weighted Average Exercise Price (in dollars per share)	$ 22.76		$ 22.76
$22.84 to $27.38
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range
Range of Exercise Prices lower range limit (in dollars per share)			22.84
Range of Exercise Prices upper range limit (in dollars per share)			$ 27.38
Number of Options outstanding (in shares)	159,500		159,500
Weighted Average Remaining Contractual Term			9 years 8 months 5 days
Outstanding Options, Weighted Average Exercise Price (in dollars per share)	$ 23.80		$ 23.80

Stock-Based Compensation (Det30

Stock-Based Compensation (Details 4) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Stock options and RSUs
Weighted Average Grant Price
Allocated share-based compensation expense	$ 3.8	$ 3.2	$ 11.8	$ 8.6
Stock options and RSUs | Research and development expenses
Weighted Average Grant Price
Allocated share-based compensation expense	0.8	1.4	3.1	3.6
Stock options and RSUs | General and administrative expenses
Weighted Average Grant Price
Allocated share-based compensation expense	$ 3	$ 1.8	$ 8.7	$ 5
Restricted stock units
Number of RSUs
Outstanding, beginning balance (in shares)			20,502
Granted (in shares)			49,776
Released (in shares)			(26,480)
Outstanding, ending balance (in shares)	43,798		43,798
Expected to Vest (in shares)	43,798		43,798
Weighted Average Grant Price
Outstanding weighted average grant price (in dollars per share)			$ 19.47
Granted (in dollars per share)			16.07
Released (in dollars per share)			18.72
Outstanding weighted average grant price (in dollars per share)	$ 16.06		16.06
Expected to Vest (in dollars per share)	$ 16.06		$ 16.06
Restricted Stock and Restricted Stock Units
Stock Based Compensation disclosures
Number of common shares each award holder is entitled to receive			1

Income Taxes (Details)

Income Taxes (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2015USD ($)	Sep. 30, 2014USD ($)	Dec. 31, 2014USD ($)
Income Taxes
Benefit from income taxes		$ 4,389
NOL carryforwards
Percentage Company is resident of NJ			100
Unrecognized tax benefits disclosures
Unrecognized tax benefits, interest and penalties accrued	$ 0
Unrecognized tax benefits, reserves	$ 0		$ 0
IRS
NOL carryforwards
Net operating loss carryforwards for income tax purposes			461,800
Net operating loss carryforwards available to offset future taxable income			283,500
Ownership change, as defined in Section 382, which could limit utilization of NOLs (as a percent)	50.00%
Period of time for measuring ownership changes under Section 382	3 years
New Jersey
NOL carryforwards
Cash proceeds from sale of NOLs, net of commissions	$ 4,400
Net operating loss carryforwards available to offset future taxable income			$ 63,000

Commitments and Contingencies32

Commitments and Contingencies (Details) - USD ($) $ in Thousands	Sep. 15, 2015	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2011
Commitments
Future minimum rental payments under leases		$ 3,668		$ 3,668
Net present value charge						$ 1,200
Remaining rental accrual		200		200
Rent expense charged to operations		200	$ 400	600	$ 1,000
Future minimum rental payments under operating leases
2015 (remaining)		303		303
2,016		1,144		1,144
2,017		741		741
2,018		762		762
2,019		718		718
Total		3,668		3,668
Fill/Finish Agreement
Future minimum rental payments under operating leases
Minimum obligation	$ 2,700
Extension period	2 years
Period prior to expiration for extension	1 year
Bridgewater New Jersey Facility
Commitments
Future minimum rental payments under leases		3,100		3,100
Future minimum rental payments under operating leases
Total		3,100		3,100
Richmond facility
Commitments
Future minimum rental payments under leases		500		500
Future minimum rental payments under operating leases
Total		$ 500		$ 500