Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Jul. 31, 2016 | |
Document and Entity Information | ||
Entity Registrant Name | ACCELERON PHARMA INC | |
Entity Central Index Key | 1,280,600 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2016 | |
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 | 37,596,691 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 36,995 | $ 27,783 |
Collaboration receivables (all amounts are with related party) | 3,239 | 3,628 |
Prepaid expenses and other current assets | 3,081 | 2,458 |
Short-term investments | 83,724 | 77,064 |
Total current assets | 127,039 | 110,933 |
Property and equipment, net | 4,190 | 3,106 |
Restricted cash | 996 | 796 |
Other assets | 8 | 368 |
Long-term investments | 141,997 | 31,134 |
Total assets | 274,230 | 146,337 |
Current liabilities: | ||
Accounts payable | 566 | 875 |
Accrued expenses | 11,824 | 12,400 |
Deferred revenue | 541 | 555 |
Deferred rent | 762 | 661 |
Total current liabilities | 13,693 | 14,491 |
Deferred revenue, net of current portion | 3,973 | 4,239 |
Deferred rent, net of current portion | 1,340 | 1,157 |
Warrants to purchase common stock | 11,368 | 17,187 |
Total liabilities | 30,374 | 37,074 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Undesignated preferred stock, $0.001 par value: 25,000,000 shares authorized and no shares issued or outstanding | 0 | 0 |
Common stock, $0.001 par value: 175,000,000 shares authorized; 37,328,903 and 33,313,355 shares issued and outstanding at June 30, 2016 and December 31, 2015, respectively | 38 | 34 |
Additional paid-in capital | 567,999 | 416,926 |
Accumulated deficit | (324,433) | (307,477) |
Accumulated other comprehensive income (loss) | 252 | (220) |
Total stockholders’ equity | 243,856 | 109,263 |
Total liabilities and stockholders’ equity | $ 274,230 | $ 146,337 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 25,000,000 | 25,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 175,000,000 | 175,000,000 |
Common stock, shares issued | 37,328,903 | 33,313,355 |
Common stock, shares outstanding | 37,328,903 | 33,313,355 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Collaboration revenue: | ||||
License and milestone | $ 135 | $ 431 | $ 15,279 | $ 803 |
Cost-sharing, net | 3,060 | 5,286 | 6,117 | 9,336 |
Total revenue (all amounts are with related party) | 3,195 | 5,717 | 21,396 | 10,139 |
Costs and expenses: | ||||
Research and development | 16,138 | 14,150 | 32,390 | 28,930 |
General and administrative | 6,712 | 4,661 | 12,618 | 9,360 |
Total costs and expenses | 22,850 | 18,811 | 45,008 | 38,290 |
Loss from operations | (19,655) | (13,094) | (23,612) | (28,151) |
Other (expense) income, net: | ||||
Other (expense) income, net | (2,864) | 2,557 | 5,819 | 2,979 |
Interest income | 503 | 154 | 837 | 217 |
Total other (expense) income, net | (2,361) | 2,711 | 6,656 | 3,196 |
Net loss applicable to common stockholders | $ (22,016) | $ (10,383) | $ (16,956) | $ (24,955) |
Net loss per share applicable to common stockholders-basic and diluted (in dollars per share) | $ (0.59) | $ (0.32) | $ (0.46) | $ (0.76) |
Weighted-average number of common shares used in computing net loss per share applicable to common stockholders-basic and diluted (in shares) | 37,272 | 32,870 | 37,092 | 32,754 |
Other comprehensive loss: | ||||
Net loss | $ (22,016) | $ (10,383) | $ (16,956) | $ (24,955) |
Net unrealized holding gains (losses) on short-term and long-term investments during the period | 227 | (19) | 472 | (62) |
Comprehensive loss | $ (21,789) | $ (10,402) | $ (16,484) | $ (25,017) |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Operating Activities | ||
Net loss | $ (16,956) | $ (24,955) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 715 | 574 |
Loss on disposition of fixed assets | 19 | 12 |
Stock-based compensation | 8,800 | 5,231 |
Change in fair value of warrants | (5,819) | (2,979) |
Net amortization of premium on investments | (432) | (777) |
Changes in assets and liabilities: | ||
Prepaid expenses and other assets | (619) | 648 |
Collaboration receivables | 389 | (1,919) |
Accounts payable | (309) | 1,066 |
Accrued expenses | (525) | 1,373 |
Restricted cash | (200) | 0 |
Deferred revenue | (280) | (803) |
Deferred rent | 284 | (244) |
Net cash used in operating activities | (14,933) | (22,773) |
Investing Activities | ||
Purchase of investments | (160,798) | (132,709) |
Proceeds from maturities of investments | 44,178 | 14,985 |
Purchases of property and equipment | (1,560) | (244) |
Net cash used in investing activities | (118,180) | (117,968) |
Financing Activities | ||
Proceeds from issuance of common stock from public offering, net issuance costs | 140,391 | 0 |
Proceeds from exercise of stock options and warrants to purchase common stock | 1,550 | 2,130 |
Proceeds from issuances of common stock related to employee stock purchase plan | 384 | 307 |
Net cash provided by financing activities | 142,325 | 2,437 |
Net increase (decrease) in cash and cash equivalents | 9,212 | (138,304) |
Cash and cash equivalents at beginning of period | 27,783 | 176,460 |
Cash and cash equivalents at end of period | 36,995 | 38,156 |
Supplemental Disclosure of Non-Cash Investing and Financing Activities: | ||
Reclassification of warrant liability to additional paid-in capital | 0 | 465 |
Purchase of property and equipment included in accounts payable and accrued expenses | $ 258 | $ 157 |
Nature of Business
Nature of Business | 6 Months Ended |
Jun. 30, 2016 | |
Nature of Business | |
Nature of Business | Nature of Business Acceleron Pharma Inc. (Acceleron or the Company) is a Cambridge, Massachusetts-based clinical stage biopharmaceutical company focused on the discovery, development and commercialization of highly innovative therapeutics to treat serious and rare diseases. The Company’s research focuses on key natural regulators of cellular growth and repair, particularly the Transforming Growth Factor-Beta (TGF-beta) protein superfamily. By combining its discovery and development expertise, including its proprietary knowledge of the TGF-beta superfamily, and its internal protein engineering and manufacturing capabilities, the Company has built a highly productive discovery and development platform that has generated innovative therapeutic candidates with novel mechanisms of action. The Company has four internally discovered therapeutic candidates that are currently in clinical trials. The Company is subject to risks common to companies in the biotechnology industry, including, but not limited to, risk that the Company never achieves profitability, the need for substantial additional financing, risk of relying on third parties, risks of clinical trial failures, dependence on key personnel, protection of proprietary technology and compliance with government regulations. |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying interim condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP). Any reference in these notes to applicable guidance is meant to refer to the authoritative United States generally accepted accounting principles as found in the Accounting Standards Codification (ASC) and Accounting Standards Update (ASU) of the Financial Accounting Standards Board (FASB). The accompanying interim condensed consolidated financial statements are unaudited. The unaudited interim financial statements have been prepared on the same basis as the audited annual financial statements as of and for the year ended December 31, 2015 , and, in the opinion of management, reflect all adjustments, consisting of normal recurring adjustments, necessary for the fair presentation of the Company’s financial position as of June 30, 2016 , and the results of its operations and its cash flows for the three and six months ended June 30, 2016 and 2015 . The results for the three and six months ended June 30, 2016 are not necessarily indicative of the results to be expected for the year ending December 31, 2016 , any other interim periods, or any future year or period. These interim financial statements should be read in conjunction with the audited financial statements as of and for the year ended December 31, 2015 , and the notes thereto, together with Management’s Discussion and Analysis of Financial Condition and Results of Operations, contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 . On January 11, 2016, the Company completed its underwritten public offering of 3,750,000 shares of common stock at a public offering price of $40.00 per share. The aggregate net proceeds received by the Company, after underwriting discounts and commissions and other offering expenses, were $140.3 million . The accompanying interim condensed consolidated financial statements reflect the application of certain significant accounting policies as described below and elsewhere in these notes to the financial statements. As of June 30, 2016 , the Company’s significant accounting policies and estimates, which are detailed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 , have not changed. |
Use of Estimates
Use of Estimates | 6 Months Ended |
Jun. 30, 2016 | |
Use of Estimates | |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts expensed during the reporting period. Management considers many factors in selecting appropriate financial accounting policies and controls, and in developing the estimates and assumptions that are used in the preparation of these consolidated financial statements. Management must apply significant judgment in this process. In addition, other factors may affect estimates, including: expected business and operational changes, sensitivity and volatility associated with the assumptions used in developing estimates, and whether historical trends are expected to be representative of future trends. The estimation process often may yield a range of potentially reasonable estimates of the ultimate future outcomes and management must select an amount that falls within that range of reasonable estimates. This process may result in actual results differing materially from those estimated amounts used in the preparation of the consolidated financial statements if these results differ from historical experience, or other assumptions do not turn out to be substantially accurate, even if such assumptions are reasonable when made. In preparing these consolidated financial statements, management used significant estimates in the following areas, among others: revenue recognition, stock-based compensation expense, the determination of the fair value of stock-based awards, the fair value of liability-classified warrants, accrued expenses, and the recoverability of the Company’s net deferred tax assets and related valuation allowance. |
Cash Equivalents and Short-term
Cash Equivalents and Short-term and Long-term Investments | 6 Months Ended |
Jun. 30, 2016 | |
Cash and Cash Equivalents [Abstract] | |
Cash Equivalents and Short-term and Long-term Investments | Cash Equivalents and Short-term and Long-term Investments The Company considers all highly liquid investments purchased with original maturities of 90 days or less at acquisition to be cash equivalents. Cash and cash equivalents include cash held in banks and amounts held primarily in interest-bearing money market accounts. Cash equivalents are carried at cost, which approximates their fair market value. The Company determines the appropriate classification of marketable securities at the time of purchase and reevaluates such designation at each balance sheet date. The Company has classified all of its marketable securities at June 30, 2016 as “available-for-sale” pursuant to ASC 320, Investments – Debt and Equity Securities. The Company records available-for-sale securities at fair value, with the unrealized gains and losses included in accumulated other comprehensive income (loss) in stockholders’ equity. There were no realized gains or losses on marketable securities for the three and six months ended June 30, 2016 and 2015 . Investments not classified as cash equivalents are presented as either short-term or long-term investments based on both their maturities as well as the time period the Company intends to hold such securities. The Company adjusts the cost of available-for-sale debt securities for amortization of premiums and accretion of discounts to maturity. The Company includes such amortization and accretion in interest income. The cost of securities sold is based on the specific identification method. The Company includes in interest income interest and dividends on securities classified as available-for-sale. The Company reviews marketable securities for other-than-temporary impairment whenever the fair value of a marketable security is less than the amortized cost and evidence indicates that a marketable security’s carrying amount is not recoverable within a reasonable period of time. Other-than-temporary impairments of investments are recognized in the consolidated statements of operations if the Company has experienced a credit loss, has the intent to sell the marketable security, or if it is more likely than not that the Company will be required to sell the marketable security before recovery of the amortized cost basis. Evidence considered in this assessment includes reasons for the impairment, compliance with the Company’s investment policy, the severity and the duration of the impairment and changes in value subsequent to the end of the period. The following is a summary of cash, cash equivalents and investments as of June 30, 2016 and December 31, 2015 (in thousands): June 30, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Cash and cash equivalents due in 90 days or less $ 36,995 $ — $ — $ 36,995 Available-for-sale securities: Corporate obligations due in one year or less 45,836 10 (10 ) 45,836 Corporate obligations due in more than one year 53,187 155 (9 ) 53,333 U.S. Treasury securities due in one year or less 7,497 7 — 7,504 U.S. Treasury securities due in more than one year 26,535 86 — 26,621 Certificates of deposit due in one year or less 19,116 — — 19,116 Certificates of deposit due in more than one year 11,746 — — 11,746 Mortgage and other asset backed securities due in one year or less 11,267 3 (2 ) 11,268 Mortgage and other asset backed securities due in more than one year 50,285 18 (6 ) 50,297 Total available-for-sale securities 225,469 279 (27 ) 225,721 Total cash, cash equivalents and available-for-sale securities $ 262,464 $ 279 $ (27 ) $ 262,716 December 31, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Cash and cash equivalents due in 90 days or less $ 27,783 $ — $ — $ 27,783 Available-for-sale securities: Corporate obligations due in one year or less 53,243 — (81 ) $ 53,162 Corporate obligations due in more than one year 14,112 — (72 ) 14,040 U.S. Treasury securities due in one year or less 6,016 — (4 ) 6,012 U.S. Treasury securities due in more than one year 4,995 — (15 ) 4,980 Certificates of deposit due in one year or less 11,890 — — 11,890 Certificates of deposit due in more than one year 4,886 — — 4,886 Mortgage and other asset backed securities due in one year or less 6,010 — (10 ) 6,000 Mortgage and other asset backed securities due in more than one year 7,266 — (38 ) 7,228 Total available-for-sale securities $ 108,418 $ — $ (220 ) $ 108,198 Total cash, cash equivalents and available-for-sale securities $ 136,201 $ — $ (220 ) $ 135,981 |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision maker, or decision making group, in making decisions on how to allocate resources and assess performance. The Company’s chief operating decision maker is the chief executive officer. The Company and the chief executive officer view the Company’s operations and manage its business as one operating segment, which is the discovery, development and commercialization of highly innovative therapeutics to treat serious and rare diseases. The Company does use contract research organizations and research institutions located outside the United States. Some of these expenses are subject to collaboration reimbursement which is presented as a component of cost sharing, net in the consolidated statements of operations and comprehensive loss. |
Restricted Cash
Restricted Cash | 6 Months Ended |
Jun. 30, 2016 | |
Receivables [Abstract] | |
Restricted Cash | Restricted Cash As of June 30, 2016 the Company maintained letters of credit totaling $1.0 million held in the form of certificates of deposit and money market funds as collateral for the Company’s facility lease obligations and its credit cards. As of December 31, 2015 , the Company maintained letters of credit totaling $0.8 million held in the form of certificates of deposit. |
Concentrations of Credit Risk a
Concentrations of Credit Risk and Off-Balance Sheet Risk | 6 Months Ended |
Jun. 30, 2016 | |
Risks and Uncertainties [Abstract] | |
Concentrations of Credit Risk and Off-Balance Sheet Risk | Concentrations of Credit Risk and Off-Balance Sheet Risk The Company has no off-balance sheet risk, such as foreign exchange contracts, option contracts, or other foreign hedging arrangements. Financial instruments that potentially subject the Company to concentrations of credit risk primarily consist of cash, cash equivalents, restricted cash, short-term and long-term investments and collaboration receivables. The Company maintains its cash and cash equivalent balances and short-term and long-term investments with financial institutions that management believes are creditworthy. Short-term and long-term investments consist of investment grade corporate obligations, treasury notes, asset backed securities, and certificates of deposit. The Company’s investment policy includes guidelines on the quality of the institutions and financial instruments and defines allowable investments that the Company believes minimizes the exposure to concentrations of credit risk. The Company routinely assesses the creditworthiness of its customers and collaboration partners. The Company has not experienced any material losses related to receivables from individual customers and collaboration partners, or groups of customers. The Company does not require collateral. Due to these factors, no additional credit risk beyond amounts provided for collection losses is believed by management to be probable in the Company’s collaboration receivables. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The following tables set forth the Company’s financial instruments carried at fair value using the lowest level of input applicable to each financial instrument as of June 30, 2016 and December 31, 2015 (in thousands): June 30, 2016 Quoted Prices in Active Markets for Identical Items (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Assets: Money market funds $ 35,292 $ — $ — $ 35,292 Corporate obligations — 101,172 — 101,172 U.S. Treasury securities — 34,125 — 34,125 Certificates of deposit — 30,862 — 30,862 Mortgage and other asset backed securities — 61,565 — 61,565 Restricted cash 996 — — 996 Total assets $ 36,288 $ 227,724 $ — $ 264,012 Liabilities: Warrants to purchase common stock $ — $ — $ 11,368 $ 11,368 Total liabilities $ — $ — $ 11,368 11,368 December 31, 2015 Quoted Prices in Active Markets for Identical Items (Level 1) Significant other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Assets: Money market funds $ 24,811 $ — $ — $ 24,811 Corporate obligations — 67,706 — 67,706 U.S. Treasury securities — 10,991 — 10,991 Certificates of deposit — 16,776 — 16,776 Mortgage and other asset backed securities — 13,228 — 13,228 Restricted cash 796 — — 796 Total assets $ 25,607 $ 108,701 $ — $ 134,308 Liabilities: Warrants to purchase common stock $ — $ — $ 17,187 $ 17,187 Total liabilities $ — $ — $ 17,187 $ 17,187 The money market funds noted above are included in cash and cash equivalents in the accompanying balance sheets. The Company recognizes transfers between levels of the fair value hierarchy as of the end of the reporting period. There were no transfers within the hierarchy during the six months ended June 30, 2016 or the year ended December 31, 2015 . Items measured at fair value on a recurring basis include warrants to purchase common stock (Note 13). During the periods presented, the Company has not changed the manner in which it values assets and liabilities that are measured at fair value using Level 3 inputs. The following table sets forth a summary of changes in the fair value of the Company’s common stock warrant liability, which has been classified within Level 3 of the fair value hierarchy, wherein fair value is estimated using significant unobservable inputs (in thousands): Six Months Ended June 30, 2016 2015 Beginning balance $ 17,187 $ 14,124 Change in fair value (5,819 ) (2,979 ) Exercises — (465 ) Repurchases — — Conversions — — Ending balance $ 11,368 $ 10,680 The fair value of the warrants to purchase common stock on the date of issuance and on each re-measurement date for those warrants classified as liabilities was estimated using either the Monte Carlo simulation framework, which incorporates future financing events over the remaining life of the warrants to purchase common stock, or for certain re-measurement dates, when the warrants are deeply in the money, the Black-Scholes option pricing model. At each reporting period the Company evaluates the best valuation methodology, and at June 30, 2016 , the Monte Carlo simulation framework was used. Due to the nature of these inputs, the valuation of the warrants is considered a Level 3 measurement. The Company measures eligible assets and liabilities at fair value, with changes in value recognized in earnings. Fair value treatment may be elected either upon initial recognition of an eligible asset or liability or, for an existing asset or liability, if an event triggers a new basis of accounting. The Company did not elect to re-measure any of its existing financial assets or liabilities, and did not elect the fair value option for any financial assets and liabilities transacted in the six months ended June 30, 2016 or the year ended December 31, 2015 . |
Net Loss Per Share
Net Loss Per Share | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | Net Loss Per Share The following common stock equivalents were excluded from the calculation of diluted net loss per share for the periods indicated because their inclusion would have had an anti-dilutive effect (in thousands): Three Months Ended Six Months Ended 2016 2015 2016 2015 Outstanding stock options 3,503 3,477 3,503 3,477 Common stock warrants 397 400 397 400 Shares issuable under employee stock purchase plan 13 11 13 11 Restricted stock units 608 28 608 28 4,521 3,916 4,521 3,916 |
Comprehensive Income (Loss)
Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2016 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Comprehensive income (loss) is defined as the change in equity of a business enterprise during a period from transactions, other events, and circumstances from non-owner sources. Accumulated other comprehensive income (loss) is presented separately on the consolidated balance sheets and consists entirely of cumulative unrealized gains and losses from short-term and long-term investments as of June 30, 2016 . |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events The Company considers events or transactions that occur after the balance sheet date but prior to the issuance of the financial statements to provide additional evidence relative to certain estimates or to identify matters that require additional disclosure. The Company has evaluated all subsequent events and determined that there are no material recognized or unrecognized subsequent events requiring disclosure. |
Recently Adopted Accounting Pro
Recently Adopted Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2016 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements From time to time, new accounting pronouncements are issued by the FASB or other standard setting bodies and adopted by the Company as of the specified effective date. Unless otherwise discussed, the Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on its financial position or results of operations upon adoption. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) , which supersedes all existing revenue recognition requirements, including most industry-specific guidance. The new standard requires a company to recognize revenue when it transfers goods or services to customers in an amount that reflects the consideration that the company expects to receive for those goods or services. The new standard will be effective for the Company on January 1, 2018. The Company is currently evaluating the method of adoption and the potential impact that Topic 606 may have on its financial position and results of operations. In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements—Going Concern (Subtopic 205-40) . The ASU requires all entities to evaluate for the existence of conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the issuance date of the financial statements. The accounting standard is effective for interim and annual periods ending after December 15, 2016, and will not have a material impact on the consolidated financial statements, but may impact the Company’s footnote disclosures. In February 2015, the FASB issued ASU 2015-02, Consolidation (Topic 810), Amendments to the Consolidation Analysis , which updated accounting guidance on consolidation requirements. This update changes the guidance with respect to the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. This guidance is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015, with early adoption permitted. The Company adopted this standard on January 1, 2016 and the adoption did not have a material impact on the Company’s consolidated financial statements. In November 2015, the FASB issued ASU No. 2015-17, Income Taxes (Topic 740) , Balance Sheet Classification of Deferred Taxes . The new standard requires that deferred tax assets and liabilities be classified as non-current in a classified statement of financial position. The new standard will be effective for the Company on January 1, 2017. The Company is currently evaluating the method of adoption and the potential impact that Topic 740 may have on its financial position and results of operations. In February 2016 the FASB issued ASU 2016-02, Leases (Topic 842), Amendments to the FASB Accounting Standards Codification, which replaces the existing guidance for leases. ASU 2016-02 requires the identification of arrangements that should be accounted for as leases by lessees. In general, for lease arrangements exceeding a twelve month term, these arrangements must now be recognized as assets and liabilities on the balance sheet of the lessee. Under ASU 2016-02, a right-of-use asset and lease obligation will be recorded for all leases, whether operating or financing, while the income statement will reflect lease expense for operating leases and amortization/interest expense for financing leases. The balance sheet amount recorded for existing leases at the date of adoption of ASU 2016-02 must be calculated using the applicable incremental borrowing rate at the date of adoption. In addition, ASU 2016-02 requires the use of the modified retrospective method, which will require adjustment to all comparative periods presented in the consolidated financial statements. This guidance is effective for annual and interim periods beginning after December 15, 2018 and requires retrospective application. The Company is currently assessing the impact that adopting ASU 2016-02 will have on its consolidated financial statements and related disclosures. In March 2016 the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718), Improvements to Employee Share-Based Payment Accounting . ASU 2016-09 identifies areas for simplification involving several aspects of accounting for share based payments, including income tax consequences, classification of awards as either equity, or liabilities, an option to make a policy election to recognize gross share based compensation expense with actual forfeitures recognized as they occur as well as certain classification changes on the statement of cash flows. This guidance is effective for annual and interim reporting periods beginning after December 15, 2016, with early adoption permitted. The Company is currently assessing the impact that adopting ASU 2016-09 will have on its consolidated financial statements and related disclosures. |
Warrants
Warrants | 6 Months Ended |
Jun. 30, 2016 | |
Warrants and Rights Note Disclosure [Abstract] | |
Warrants | Warrants Below is a summary of the number of shares issuable upon exercise of outstanding warrants and the terms and accounting treatment for the outstanding warrants (in thousands, except per share data): Warrants as of Weighted- Average Exercise Balance Sheet Classification June 30, 2016 December 31, 2015 Price Per Share Expiration June 30, 2016 December 31, 2015 Warrants to purchase common stock 393 393 $ 5.88 June 10, 2020 - July 9, 2020 Liability Liability Warrants to purchase common stock 4 5 4.00 - 7.40 March 28, 2017 - December 31, 2017 Equity(1) (2) Equity(2) All warrants 397 398 $ 5.88 (1) In March 2016, the warrant holders exercised warrants to purchase 1,317 shares of Common Stock on a net basis, resulting in the issuance of 1,109 shares of Common Stock. (2) Warrants to purchase common stock were issued in connection with various debt financing transactions that were consummated in periods prior to December 31, 2012. See discussion below for further details. In connection with the Series E redeemable convertible preferred stock (Series E Preferred Stock) financing transactions that took place in June 2010 and July 2010, the Company issued warrants to purchase up to 871,580 shares of common stock. Each warrant was immediately exercisable and expires ten years from the original date of issuance. The warrants to purchase shares of the Company’s common stock have an exercise price equal to the estimated fair value of the underlying instrument as of the initial date such warrants were issued. Each warrant is exercisable on either a physical settlement or net share settlement basis from the date of issuance. The warrant agreement contains a provision requiring an adjustment to the number of shares in the event the Company issues common stock, or securities convertible into or exercisable for common stock, at a price per share lower than the warrant exercise price. The Company concluded the anti-dilution feature required the warrants to be classified as liabilities under ASC Topic 815, Derivatives and Hedging—Contracts in Entity’s Own Equity (ASC 815). The warrants are measured at fair value, with changes in fair value recognized as a gain or loss to other income (expense) in the statements of operations and comprehensive income (loss) for each reporting period thereafter. The fair value of the common stock warrants were recorded as a discount to the preferred stock issued of $3.0 million , and the preferred stock was being accreted to the redemption value. At the end of each reporting period or through the life of the instrument, the Company re-measured the fair value of the outstanding warrants, using current assumptions, resulting in an increase in fair value of $2.9 million and a decrease of $2.6 million for the three months ended June 30, 2016 and 2015 , respectively, and a decrease in fair value of $5.8 million and $3.0 million for the six months ended June 30, 2016 and 2015 , respectively, which was recorded in other (expense) income in the accompanying consolidated statements of operations and comprehensive loss. The Company will continue to re-measure the fair value of the liability associated with the warrants to purchase common stock at the end of each reporting period until the earlier of the exercise or the expiration of the applicable warrants. All remaining outstanding warrants were fully vested and exercisable as of June 30, 2016 and December 31, 2015 . |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal Proceedings The Company, from time to time, may be party to litigation arising in the ordinary course of its business. The Company was not subject to any material legal proceedings during the three months ended June 30, 2016 , and, to the best of its knowledge, no material legal proceedings are currently pending or threatened. Other The Company is also party to various agreements, principally relating to licensed technology, that require future payments relating to milestones not met at June 30, 2016 and December 31, 2015 , or royalties on future sales of specified products. No royalty payments under these agreements are expected to be payable in the immediate future. See Note 15 for discussion of these arrangements. The Company enters into standard indemnification agreements in the ordinary course of business. Pursuant to the agreements, the Company indemnifies, holds harmless, and agrees to reimburse the indemnified party for losses suffered or incurred by the indemnified party, generally the Company’s business partners or customers, in connection with any U.S. patent or any copyright or other intellectual property infringement claim by any third party with respect to the Company’s products. The term of these indemnification agreements is generally perpetual any time after execution of the agreement. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is unlimited. The Company has never incurred costs to defend lawsuits or settle claims related to these indemnification agreements. |
Significant Agreements
Significant Agreements | 6 Months Ended |
Jun. 30, 2016 | |
Significant Agreements [Abstract] | |
Significant Agreements | Significant Agreements Celgene Overview On February 20, 2008 the Company entered into a collaboration, license, and option agreement with Celgene Corporation (Celgene) relating to sotatercept (the Sotatercept Agreement). On August 2, 2011, the Company entered into a second collaboration, license and option agreement with Celgene for luspatercept (the Luspatercept Agreement), and also amended certain terms of the Sotatercept Agreement. These agreements provide Celgene exclusive licenses for sotatercept and luspatercept in all indications, as well as exclusive rights to obtain a license to certain future compounds. Celgene is an integrated global biopharmaceutical company engaged primarily in the discovery, development and commercialization of innovative therapies for the treatment of cancer and inflammatory diseases through next-generation solutions in protein homeostasis, immuno-oncology, epigenetics, immunology and neuro-inflammation. There have been no material changes to the key terms of the Sotatercept and Luspatercept Agreements since December 31, 2015 . For further information on the terms of the agreements as well as the historical accounting analysis, please see the notes to the consolidated financial statements included in the Company’s Form 10-K for the year ended December 31, 2015 . Sotatercept Agreement Under the terms of the Sotatercept Agreement, the Company and Celgene collaborate worldwide for the joint development and commercialization of sotatercept. The Company also granted Celgene an option to license three discovery stage compounds. Under the terms of the agreement, the Company and Celgene will jointly develop, manufacture and commercialize sotatercept. The Company retained responsibility for research and development through the end of Phase 2a clinical trials, as well as manufacturing the clinical supplies for these trials. These activities were substantially completed in 2011. Celgene is conducting the ongoing Phase 2 trials and will be responsible for any Phase 3 clinical trials, as well as additional Phase 2 clinical trials, and will be responsible for overseeing the manufacture of Phase 3 and commercial supplies by third party contract manufacturing organizations. Through June 30, 2016 , the Company has received $43.3 million in research and development funding and milestone payments for sotatercept under the original and modified agreements. The next likely clinical milestone payment would be $10.0 million and result from Celgene’s start of a Phase 3 study in chronic kidney disease. Luspatercept Agreement Under the terms of the Luspatercept Agreement, the Company and Celgene collaborate worldwide for the joint development and commercialization of luspatercept. The Company also granted Celgene an option for future products for which Acceleron files an Investigational New Drug application for the treatment of anemia. The Company retains responsibility for research and development through the end of Phase 1 and initial Phase 2 clinical trials, as well as manufacturing the clinical supplies for these studies. Celgene will conduct subsequent Phase 2 and Phase 3 clinical studies. Acceleron will manufacture luspatercept for the Phase 1 and Phase 2 clinical trials and Celgene will be responsible for overseeing the manufacture of Phase 3 and commercial supplies by third party contract manufacturing organizations. Through June 30, 2016 , the Company has received $81.6 million in research and development funding and milestone payments for luspatercept. The next likely clinical milestone payment would be $25.0 million and result from U.S. Food and Drug Administration or European Medical Association acceptance of a Biologics Licensing Application or equivalent for luspatercept in either myelodysplastic syndromes or beta-thalassemia. The Company has not yet identified additional compounds for the treatment of anemia. Accordingly, there is no assurance that the Company will generate future value from additional programs. Both Agreements The Company and Celgene shared development costs under the Sotatercept and Luspatercept Agreements through December 31, 2012. As of January 1, 2013, Celgene has been responsible for paying 100% of worldwide development costs under both agreements. Celgene will be responsible for all commercialization costs worldwide. The Company has the right to co-promote sotatercept, luspatercept and future products under both agreements in North America. Celgene’s option to buy down royalty rates for sotatercept and luspatercept expired unexercised and, therefore, the Company will receive tiered royalties in the low-to-mid twenty percent range on net sales of sotatercept and luspatercept. The royalty schedules for sotatercept and luspatercept are the same. Accounting Analysis During the three months ended June 30, 2016 and 2015 , the Company recognized $0.1 million and $0.4 million , respectively, and during the six months ended June 30, 2016 and 2015 , $0.3 million and $0.8 million , respectively, of the total deferred revenue as license and milestone revenue in the accompanying consolidated statements of operations and comprehensive loss. As noted above, under the terms of the Luspatercept Agreement the Company retained responsibility for certain research and development activities through the completion of Phase 1 and initial Phase 2 clinical trials, as well as manufacturing the clinical supplies for these studies. Celgene is responsible for the conduct of subsequent Phase 2 and Phase 3 clinical studies. In November 2013, the Company agreed to conduct additional activities for the benefit of the luspatercept program including certain clinical and non-clinical services such as multiple toxicology studies and associated assay development and sample testing, clinical extension studies, and market development work. These activities are reimbursed under the same terms and rates of the existing Agreements. The Company evaluated the additional services to be provided and determined that as the Company is under no obligation to conduct these additional activities, these services do not represent a deliverable under or modification to the Luspatercept Agreement, but rather, represent a separate services arrangement which should be accounted for as the services are delivered. Pursuant to the terms of the agreement, Celgene and the Company shared development costs, with Celgene responsible for substantially more than half of the costs for sotatercept and luspatercept until December 31, 2012 and 100% of the costs from January 1, 2013 and thereafter. Payments from Celgene with respect to research and development costs incurred by the Company are recorded as cost-sharing revenue. Payments by the Company to Celgene for research and development costs incurred by Celgene are recorded as a reduction to cost-sharing revenue. The Company recorded net cost-sharing revenue of $3.1 million and $5.3 million during the three months ended June 30, 2016 and 2015 , respectively, and $6.1 million and $9.3 million during the six months ended June 30, 2016 and 2015 , respectively. Other Agreements Other In 2004, the Company entered into a license agreement with a non-profit institution for an exclusive, sublicensable, worldwide, royalty-bearing license to certain patents developed by the institution (Primary Licensed Products). In addition, the Company was granted a non-exclusive, non-sub-licensable license for Secondary Licensed Products. As compensation for the licenses, the Company issued 62,500 shares of its common stock to the institution, the fair value of which was $25,000 , and was expensed during 2004 to research and development expense. The Company also agreed to pay specified development milestone payments totaling up to $2.0 million for sotatercept and $0.7 million for luspatercept. In addition, the Company is obligated to pay milestone fees based on the Company’s research and development progress, and U.S. sublicensing revenue ranging from 10% - 25% , as well as a royalty ranging from 1.0% - 3.5% of net sales on any products under the licenses. During the three months ended June 30, 2016 and 2015 , the Company expensed $0.1 million and $0.1 million , respectively, and during the six months ended June 30, 2016 and 2015 , respectively, the Company expensed $1.0 million and $0.1 million of milestones and fees defined under the agreement. In 2004, the Company entered into another license agreement with certain individuals for an exclusive, sublicensable, worldwide, royalty-bearing license to certain patents developed by the individuals. The Company agreed to pay specified development and sales milestone payments aggregating up to $1.0 million relating to the development and commercialization of dalantercept. In addition, the Company is required to pay royalties in the low single-digits on worldwide net product sales of dalantercept, with royalty obligations continuing at a 50% reduced rate for a period of time after patent expiration. If the Company sublicenses its patent rights, it will owe a percentage of sublicensing revenue, excluding payments based on the level of sales, profits or other levels of commercialization. During the three and six months ended June 30, 2016 and 2015 , the Company did no t reach any milestones defined under the agreement and, therefore, no amounts have been paid or expensed. During 2012, the Company executed a license agreement with a research institution for an exclusive, sublicensable, worldwide, royalty-bearing license. The Company is obligated to pay development milestones and commercial milestone fees relating to dalantercept totaling up to $1.0 million . The Company will also pay $25,000 annually upon first commercial sale as well as royalties of 1.5% of net sales on any products developed under the patents. During the three and six months ended June 30, 2016 and 2015 , the Company did no t reach any milestones defined under the agreement and, therefore, no amounts have been paid or expensed. In May 2014, the Company executed a collaboration agreement with a research technology company. The Company paid an upfront research fee of $0.3 million upon execution of the agreement. The Company also received an option to obtain a commercial license to the molecules developed during the collaboration. During the three months ended June 30, 2016 and 2015 , the Company expensed $0.2 million and $0.4 million , respectively, and during the six months ended June 30, 2016 and 2015 , the Company expensed $0.5 million and $0.8 million , respectively, of milestones and fees, which is recorded as research and development expense. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The Company recognized stock-based compensation expense related to stock options, restricted stock units and the 2013 Employee Stock Purchase Plan (2013 ESPP) totaling $4.6 million , $2.7 million , $8.8 million and $5.2 million during the three months ended June 30, 2016 and 2015 and the six months ended June 30, 2016 and 2015, respectively. Total compensation cost recognized for all stock-based compensation awards in the consolidated statements of operations and comprehensive loss is as follows (in thousands): Three Months Ended Six Months Ended 2016 2015 2016 2015 Research and development $ 1,850 $ 1,019 $ 3,676 $ 2,101 General and administrative 2,701 1,641 5,124 3,130 $ 4,551 $ 2,660 $ 8,800 $ 5,231 Stock Options The fair value of each stock option issued to employees was estimated at the date of grant using the Black-Scholes option pricing model with the following weighted-average assumptions: Three Months Ended Six Months Ended 2016 2015 2016 2015 Expected volatility 64.5 % 66.8 % 64.4 % 67.1 % Expected term (in years) 6.0 6.0 5.9 6.0 Risk-free interest rate 1.5 % 1.6 % 1.4 % 1.7 % Expected dividend yield — % — % — % — % The following table summarizes the stock option activity under the Company’s 2003 Stock Option and Restricted Stock Plan and 2013 Equity Incentive Plan during the six months ended June 30, 2016 (in thousands): Number of Grants Weighted- Average Exercise Price Per Share Weighted- Average Contractual Life (in years) Aggregate Intrinsic Value(1) Outstanding at December 31, 2015 3,191 $ 18.85 6.31 Granted 582 $ 28.23 Exercised (247 ) $ 6.28 Canceled or forfeited (23 ) $ 35.09 Outstanding at June 30, 2016 3,503 $ 21.18 6.62 $ 51,317 Exercisable at June 30, 2016 2,093 $ 14.21 5.19 $ 43,957 Vested and expected to vest at June 30, 2016 (2) 3,449 $ 21.01 6.58 $ 51,101 (1) The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying options and the estimated fair value of the common stock for the options that were in the money at June 30, 2016 . (2) This represents the number of vested options at June 30, 2016 , plus the number of unvested options expected to vest at June 30, 2016 , based on the unvested options outstanding at June 30, 2016 , adjusted for the estimated forfeiture rate. During the six months ended June 30, 2016 , the Company granted stock options to purchase an aggregate of 582,240 shares of its common stock, with a weighted-average grant date fair value of options granted of $28.23 . During the six months ended June 30, 2016 , current and former employees of the Company exercised a total of 246,727 options, resulting in total proceeds of $1.6 million . The aggregate intrinsic value of options exercised during the six months ended June 30, 2016 was $6.4 million . As of June 30, 2016 , there was $23.5 million of unrecognized compensation expense related to unvested stock options that is expected to be recognized over a weighted-average period of 2.49 years . Restricted Stock Units The following table summarizes the restricted stock unit (RSU) activity under the 2013 Equity Incentive Plan during the six months ended June 30, 2016 (in thousands): Number Weighted- Unvested balance at December 31, 2015 521 $ 31.57 Granted 96 28.33 Vested — — Forfeited (9 ) 34.14 Unvested balance at June 30, 2016 608 $ 31.04 During the six months ended June 30, 2016 , the Company issued 83,980 RSUs to employees. These RSUs are subject to time-based vesting. As of June 30, 2016 , there was approximately $3.5 million of unrecognized compensation cost related to the time-based RSUs, which the Company expects to recognize over a remaining weighted-average period of 2.28 years . 131,910 restricted stock units remained unvested and outstanding at June 30, 2016 . During the six months ended June 30, 2016 , the Company issued 12,565 performance-based RSUs in addition to the 464,000 issued in 2015. The vesting of these performance-based RSUs is accelerated upon the occurrence of certain milestone events, but otherwise these RSUs vest in September 2019. As a result, when probable, compensation cost is recognized over the estimated period of achievement. If achievement is not considered probable the expense is recognized over the vesting period. As of June 30, 2016 , there was approximately $10.4 million of unrecognized compensation cost related to the performance-based RSUs, which the Company expects to recognize over a remaining weighted-average period of 2.34 years . All 476,565 of these performance-based RSUs remained outstanding at June 30, 2016 . Employee Stock Purchase Plan During the three months ended June 30, 2016 and 2015 , the Company recorded $0.1 million and $0.1 million , respectively, and during the six months ended June 30, 2016 and 2015 , the Company recorded $0.1 million and $0.1 million , respectively, of stock-based compensation expense related to the 2013 ESPP. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes For the three and six months ended June 30, 2016 and 2015 , the Company did not record a current or deferred income tax expense or benefit. The Company has evaluated the positive and negative evidence bearing upon the realizability of its deferred tax assets. Based on the Company’s history of operating losses, the Company has concluded that it is more likely than not that the benefit of its deferred tax assets will not be realized. Accordingly, the Company has provided a full valuation allowance for deferred tax assets as of June 30, 2016 and December 31, 2015 . The Company files income tax returns in the United States, and various state and foreign jurisdictions. The federal, state and foreign income tax returns are generally subject to tax examinations for the tax years ended December 31, 2012 through December 31, 2015 . To the extent the Company has tax attribute carryforwards, the tax years in which the attribute was generated may still be adjusted upon examination by the Internal Revenue Service, state or foreign tax authorities to the extent utilized in a future period. The Company accounts for uncertain tax positions in accordance with the provisions of ASC 740. When uncertain tax positions exist, the Company recognizes the tax benefit of tax positions to the extent that the benefit will more likely than not be realized. The determination as to whether the tax benefit will more likely than not be realized is based upon the technical merits of the tax position as well as consideration of the available facts and circumstances. As of June 30, 2016 and December 31, 2015 , the Company did not have any significant uncertain tax positions. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Celgene Corporation In connection with prior arrangements, Celgene owned 12.9% and 12.3% of the Company’s fully diluted equity as of June 30, 2016 and December 31, 2015 , respectively. Refer to Note 15 for additional information regarding this collaboration arrangement. During the three and six months ended June 30, 2016 and 2015 , all revenue recognized by the Company was recognized under the Celgene collaboration arrangement and, as of June 30, 2016 , the Company had $4.5 million of deferred revenue related to the Celgene collaboration arrangement. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | The accompanying interim condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP). Any reference in these notes to applicable guidance is meant to refer to the authoritative United States generally accepted accounting principles as found in the Accounting Standards Codification (ASC) and Accounting Standards Update (ASU) of the Financial Accounting Standards Board (FASB). The accompanying interim condensed consolidated financial statements are unaudited. The unaudited interim financial statements have been prepared on the same basis as the audited annual financial statements as of and for the year ended December 31, 2015 , and, in the opinion of management, reflect all adjustments, consisting of normal recurring adjustments, necessary for the fair presentation of the Company’s financial position as of June 30, 2016 , and the results of its operations and its cash flows for the three and six months ended June 30, 2016 and 2015 . The results for the three and six months ended June 30, 2016 are not necessarily indicative of the results to be expected for the year ending December 31, 2016 , any other interim periods, or any future year or period. These interim financial statements should be read in conjunction with the audited financial statements as of and for the year ended December 31, 2015 , and the notes thereto, together with Management’s Discussion and Analysis of Financial Condition and Results of Operations, contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 . On January 11, 2016, the Company completed its underwritten public offering of 3,750,000 shares of common stock at a public offering price of $40.00 per share. The aggregate net proceeds received by the Company, after underwriting discounts and commissions and other offering expenses, were $140.3 million . The accompanying interim condensed consolidated financial statements reflect the application of certain significant accounting policies as described below and elsewhere in these notes to the financial statements. As of June 30, 2016 , the Company’s significant accounting policies and estimates, which are detailed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 , have not changed. |
Use of Estimates | The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts expensed during the reporting period. Management considers many factors in selecting appropriate financial accounting policies and controls, and in developing the estimates and assumptions that are used in the preparation of these consolidated financial statements. Management must apply significant judgment in this process. In addition, other factors may affect estimates, including: expected business and operational changes, sensitivity and volatility associated with the assumptions used in developing estimates, and whether historical trends are expected to be representative of future trends. The estimation process often may yield a range of potentially reasonable estimates of the ultimate future outcomes and management must select an amount that falls within that range of reasonable estimates. This process may result in actual results differing materially from those estimated amounts used in the preparation of the consolidated financial statements if these results differ from historical experience, or other assumptions do not turn out to be substantially accurate, even if such assumptions are reasonable when made. In preparing these consolidated financial statements, management used significant estimates in the following areas, among others: revenue recognition, stock-based compensation expense, the determination of the fair value of stock-based awards, the fair value of liability-classified warrants, accrued expenses, and the recoverability of the Company’s net deferred tax assets and related valuation allowance. |
Recently Adopted Accounting Pronouncements | From time to time, new accounting pronouncements are issued by the FASB or other standard setting bodies and adopted by the Company as of the specified effective date. Unless otherwise discussed, the Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on its financial position or results of operations upon adoption. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) , which supersedes all existing revenue recognition requirements, including most industry-specific guidance. The new standard requires a company to recognize revenue when it transfers goods or services to customers in an amount that reflects the consideration that the company expects to receive for those goods or services. The new standard will be effective for the Company on January 1, 2018. The Company is currently evaluating the method of adoption and the potential impact that Topic 606 may have on its financial position and results of operations. In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements—Going Concern (Subtopic 205-40) . The ASU requires all entities to evaluate for the existence of conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the issuance date of the financial statements. The accounting standard is effective for interim and annual periods ending after December 15, 2016, and will not have a material impact on the consolidated financial statements, but may impact the Company’s footnote disclosures. In February 2015, the FASB issued ASU 2015-02, Consolidation (Topic 810), Amendments to the Consolidation Analysis , which updated accounting guidance on consolidation requirements. This update changes the guidance with respect to the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. This guidance is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015, with early adoption permitted. The Company adopted this standard on January 1, 2016 and the adoption did not have a material impact on the Company’s consolidated financial statements. In November 2015, the FASB issued ASU No. 2015-17, Income Taxes (Topic 740) , Balance Sheet Classification of Deferred Taxes . The new standard requires that deferred tax assets and liabilities be classified as non-current in a classified statement of financial position. The new standard will be effective for the Company on January 1, 2017. The Company is currently evaluating the method of adoption and the potential impact that Topic 740 may have on its financial position and results of operations. In February 2016 the FASB issued ASU 2016-02, Leases (Topic 842), Amendments to the FASB Accounting Standards Codification, which replaces the existing guidance for leases. ASU 2016-02 requires the identification of arrangements that should be accounted for as leases by lessees. In general, for lease arrangements exceeding a twelve month term, these arrangements must now be recognized as assets and liabilities on the balance sheet of the lessee. Under ASU 2016-02, a right-of-use asset and lease obligation will be recorded for all leases, whether operating or financing, while the income statement will reflect lease expense for operating leases and amortization/interest expense for financing leases. The balance sheet amount recorded for existing leases at the date of adoption of ASU 2016-02 must be calculated using the applicable incremental borrowing rate at the date of adoption. In addition, ASU 2016-02 requires the use of the modified retrospective method, which will require adjustment to all comparative periods presented in the consolidated financial statements. This guidance is effective for annual and interim periods beginning after December 15, 2018 and requires retrospective application. The Company is currently assessing the impact that adopting ASU 2016-02 will have on its consolidated financial statements and related disclosures. In March 2016 the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718), Improvements to Employee Share-Based Payment Accounting . ASU 2016-09 identifies areas for simplification involving several aspects of accounting for share based payments, including income tax consequences, classification of awards as either equity, or liabilities, an option to make a policy election to recognize gross share based compensation expense with actual forfeitures recognized as they occur as well as certain classification changes on the statement of cash flows. This guidance is effective for annual and interim reporting periods beginning after December 15, 2016, with early adoption permitted. The Company is currently assessing the impact that adopting ASU 2016-09 will have on its consolidated financial statements and related disclosures. |
Cash Equivalents and Short-te25
Cash Equivalents and Short-term and Long-term Investments (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Cash and Cash Equivalents [Abstract] | |
Available-for-sale Securities | The following is a summary of cash, cash equivalents and investments as of June 30, 2016 and December 31, 2015 (in thousands): June 30, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Cash and cash equivalents due in 90 days or less $ 36,995 $ — $ — $ 36,995 Available-for-sale securities: Corporate obligations due in one year or less 45,836 10 (10 ) 45,836 Corporate obligations due in more than one year 53,187 155 (9 ) 53,333 U.S. Treasury securities due in one year or less 7,497 7 — 7,504 U.S. Treasury securities due in more than one year 26,535 86 — 26,621 Certificates of deposit due in one year or less 19,116 — — 19,116 Certificates of deposit due in more than one year 11,746 — — 11,746 Mortgage and other asset backed securities due in one year or less 11,267 3 (2 ) 11,268 Mortgage and other asset backed securities due in more than one year 50,285 18 (6 ) 50,297 Total available-for-sale securities 225,469 279 (27 ) 225,721 Total cash, cash equivalents and available-for-sale securities $ 262,464 $ 279 $ (27 ) $ 262,716 December 31, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Cash and cash equivalents due in 90 days or less $ 27,783 $ — $ — $ 27,783 Available-for-sale securities: Corporate obligations due in one year or less 53,243 — (81 ) $ 53,162 Corporate obligations due in more than one year 14,112 — (72 ) 14,040 U.S. Treasury securities due in one year or less 6,016 — (4 ) 6,012 U.S. Treasury securities due in more than one year 4,995 — (15 ) 4,980 Certificates of deposit due in one year or less 11,890 — — 11,890 Certificates of deposit due in more than one year 4,886 — — 4,886 Mortgage and other asset backed securities due in one year or less 6,010 — (10 ) 6,000 Mortgage and other asset backed securities due in more than one year 7,266 — (38 ) 7,228 Total available-for-sale securities $ 108,418 $ — $ (220 ) $ 108,198 Total cash, cash equivalents and available-for-sale securities $ 136,201 $ — $ (220 ) $ 135,981 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of financial instruments carried at fair value | The following tables set forth the Company’s financial instruments carried at fair value using the lowest level of input applicable to each financial instrument as of June 30, 2016 and December 31, 2015 (in thousands): June 30, 2016 Quoted Prices in Active Markets for Identical Items (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Assets: Money market funds $ 35,292 $ — $ — $ 35,292 Corporate obligations — 101,172 — 101,172 U.S. Treasury securities — 34,125 — 34,125 Certificates of deposit — 30,862 — 30,862 Mortgage and other asset backed securities — 61,565 — 61,565 Restricted cash 996 — — 996 Total assets $ 36,288 $ 227,724 $ — $ 264,012 Liabilities: Warrants to purchase common stock $ — $ — $ 11,368 $ 11,368 Total liabilities $ — $ — $ 11,368 11,368 December 31, 2015 Quoted Prices in Active Markets for Identical Items (Level 1) Significant other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Assets: Money market funds $ 24,811 $ — $ — $ 24,811 Corporate obligations — 67,706 — 67,706 U.S. Treasury securities — 10,991 — 10,991 Certificates of deposit — 16,776 — 16,776 Mortgage and other asset backed securities — 13,228 — 13,228 Restricted cash 796 — — 796 Total assets $ 25,607 $ 108,701 $ — $ 134,308 Liabilities: Warrants to purchase common stock $ — $ — $ 17,187 $ 17,187 Total liabilities $ — $ — $ 17,187 $ 17,187 |
Summary of changes in the fair value of the preferred and common stock warrant liability | The following table sets forth a summary of changes in the fair value of the Company’s common stock warrant liability, which has been classified within Level 3 of the fair value hierarchy, wherein fair value is estimated using significant unobservable inputs (in thousands): Six Months Ended June 30, 2016 2015 Beginning balance $ 17,187 $ 14,124 Change in fair value (5,819 ) (2,979 ) Exercises — (465 ) Repurchases — — Conversions — — Ending balance $ 11,368 $ 10,680 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of anti-dilutive common stock equivalents excluded from the calculation of diluted net loss per share | The following common stock equivalents were excluded from the calculation of diluted net loss per share for the periods indicated because their inclusion would have had an anti-dilutive effect (in thousands): Three Months Ended Six Months Ended 2016 2015 2016 2015 Outstanding stock options 3,503 3,477 3,503 3,477 Common stock warrants 397 400 397 400 Shares issuable under employee stock purchase plan 13 11 13 11 Restricted stock units 608 28 608 28 4,521 3,916 4,521 3,916 |
Warrants (Tables)
Warrants (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Warrants and Rights Note Disclosure [Abstract] | |
Summary of the number of shares issuable upon exercise of outstanding warrants and the terms and accounting treatment for the outstanding warrants | Below is a summary of the number of shares issuable upon exercise of outstanding warrants and the terms and accounting treatment for the outstanding warrants (in thousands, except per share data): Warrants as of Weighted- Average Exercise Balance Sheet Classification June 30, 2016 December 31, 2015 Price Per Share Expiration June 30, 2016 December 31, 2015 Warrants to purchase common stock 393 393 $ 5.88 June 10, 2020 - July 9, 2020 Liability Liability Warrants to purchase common stock 4 5 4.00 - 7.40 March 28, 2017 - December 31, 2017 Equity(1) (2) Equity(2) All warrants 397 398 $ 5.88 (1) In March 2016, the warrant holders exercised warrants to purchase 1,317 shares of Common Stock on a net basis, resulting in the issuance of 1,109 shares of Common Stock. (2) Warrants to purchase common stock were issued in connection with various debt financing transactions that were consummated in periods prior to December 31, 2012. See discussion below for further details. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Compensation Costs Recognized | Total compensation cost recognized for all stock-based compensation awards in the consolidated statements of operations and comprehensive loss is as follows (in thousands): Three Months Ended Six Months Ended 2016 2015 2016 2015 Research and development $ 1,850 $ 1,019 $ 3,676 $ 2,101 General and administrative 2,701 1,641 5,124 3,130 $ 4,551 $ 2,660 $ 8,800 $ 5,231 |
Schedule of Weighted-Average Assumptions Used for Estimating Fair Value | The fair value of each stock option issued to employees was estimated at the date of grant using the Black-Scholes option pricing model with the following weighted-average assumptions: Three Months Ended Six Months Ended 2016 2015 2016 2015 Expected volatility 64.5 % 66.8 % 64.4 % 67.1 % Expected term (in years) 6.0 6.0 5.9 6.0 Risk-free interest rate 1.5 % 1.6 % 1.4 % 1.7 % Expected dividend yield — % — % — % — % |
Summary of Stock Option Activity | The following table summarizes the stock option activity under the Company’s 2003 Stock Option and Restricted Stock Plan and 2013 Equity Incentive Plan during the six months ended June 30, 2016 (in thousands): Number of Grants Weighted- Average Exercise Price Per Share Weighted- Average Contractual Life (in years) Aggregate Intrinsic Value(1) Outstanding at December 31, 2015 3,191 $ 18.85 6.31 Granted 582 $ 28.23 Exercised (247 ) $ 6.28 Canceled or forfeited (23 ) $ 35.09 Outstanding at June 30, 2016 3,503 $ 21.18 6.62 $ 51,317 Exercisable at June 30, 2016 2,093 $ 14.21 5.19 $ 43,957 Vested and expected to vest at June 30, 2016 (2) 3,449 $ 21.01 6.58 $ 51,101 (1) The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying options and the estimated fair value of the common stock for the options that were in the money at June 30, 2016 . (2) This represents the number of vested options at June 30, 2016 , plus the number of unvested options expected to vest at June 30, 2016 , based on the unvested options outstanding at June 30, 2016 , adjusted for the estimated forfeiture rate. |
Schedule of Nonvested Restricted Stock Units Activity | The following table summarizes the restricted stock unit (RSU) activity under the 2013 Equity Incentive Plan during the six months ended June 30, 2016 (in thousands): Number Weighted- Unvested balance at December 31, 2015 521 $ 31.57 Granted 96 28.33 Vested — — Forfeited (9 ) 34.14 Unvested balance at June 30, 2016 608 $ 31.04 |
Nature of Business (Details)
Nature of Business (Details) | 6 Months Ended |
Jun. 30, 2016protein_therapeutic | |
Nature of Business | |
Number of therapeutics candidates discovered | 4 |
Basis of Presentation Narrative
Basis of Presentation Narrative (Details) $ / shares in Units, $ in Millions | Jan. 11, 2016USD ($)$ / sharesshares |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of shares issued in transaction (in shares) | shares | 3,750,000 |
Price per share (in dollars per share) | $ / shares | $ 40 |
Consideration received on transaction | $ | $ 140.3 |
Segment Information (Details)
Segment Information (Details) | 6 Months Ended |
Jun. 30, 2016segment | |
Segment Information | |
Number of operating segments | 1 |
Cash Equivalents and Short-te33
Cash Equivalents and Short-term and Long-term Investments (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2014 |
Schedule of Available-for-sale Securities [Line Items] | ||||
Cash and cash equivalents due in 90 days or less | $ 36,995 | $ 27,783 | $ 38,156 | $ 176,460 |
Available-for-sale securities: | ||||
Amortized Cost | 225,469 | 108,418 | ||
Gross Unrealized Gains | 279 | 0 | ||
Gross Unrealized Losses | (27) | (220) | ||
Estimated Fair Value | 225,721 | 108,198 | ||
Total cash, cash equivalents and available-for-sale securities | ||||
Amortized Cost | 262,464 | 136,201 | ||
Gross Unrealized Gains | 279 | 0 | ||
Gross Unrealized Losses | (27) | (220) | ||
Estimated Fair Value | 262,716 | 135,981 | ||
Corporate obligations due in one year or less | ||||
Available-for-sale securities: | ||||
Amortized Cost | 45,836 | 53,243 | ||
Gross Unrealized Gains | 10 | 0 | ||
Gross Unrealized Losses | (10) | (81) | ||
Estimated Fair Value | 45,836 | 53,162 | ||
Corporate obligations due in more than one year | ||||
Available-for-sale securities: | ||||
Amortized Cost | 53,187 | 14,112 | ||
Gross Unrealized Gains | 155 | 0 | ||
Gross Unrealized Losses | (9) | (72) | ||
Estimated Fair Value | 53,333 | 14,040 | ||
U.S. Treasury securities due in one year or less | ||||
Available-for-sale securities: | ||||
Amortized Cost | 7,497 | 6,016 | ||
Gross Unrealized Gains | 7 | 0 | ||
Gross Unrealized Losses | 0 | (4) | ||
Estimated Fair Value | 7,504 | 6,012 | ||
U.S. Treasury securities due in more than one year | ||||
Available-for-sale securities: | ||||
Amortized Cost | 26,535 | 4,995 | ||
Gross Unrealized Gains | 86 | 0 | ||
Gross Unrealized Losses | 0 | (15) | ||
Estimated Fair Value | 26,621 | 4,980 | ||
Certificates of deposit due in one year or less | ||||
Available-for-sale securities: | ||||
Amortized Cost | 19,116 | 11,890 | ||
Gross Unrealized Gains | 0 | 0 | ||
Gross Unrealized Losses | 0 | 0 | ||
Estimated Fair Value | 19,116 | 11,890 | ||
Certificates of deposit due in more than one year | ||||
Available-for-sale securities: | ||||
Amortized Cost | 11,746 | 4,886 | ||
Gross Unrealized Gains | 0 | 0 | ||
Gross Unrealized Losses | 0 | 0 | ||
Estimated Fair Value | 11,746 | 4,886 | ||
Mortgage and other asset backed securities due in one year or less | ||||
Available-for-sale securities: | ||||
Amortized Cost | 11,267 | 6,010 | ||
Gross Unrealized Gains | 3 | 0 | ||
Gross Unrealized Losses | (2) | (10) | ||
Estimated Fair Value | 11,268 | 6,000 | ||
Mortgage and other asset backed securities due in more than one year | ||||
Available-for-sale securities: | ||||
Amortized Cost | 50,285 | 7,266 | ||
Gross Unrealized Gains | 18 | 0 | ||
Gross Unrealized Losses | (6) | (38) | ||
Estimated Fair Value | $ 50,297 | $ 7,228 |
Restricted Cash (Details)
Restricted Cash (Details) - Letter of Credit - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Certificates of Deposits and Money Market Funds | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Letters of credit held in the form of a money market account as collateral for lease obligations and credit cards | $ 1 | |
Certificates of deposit | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Letters of credit held in the form of a money market account as collateral for lease obligations and credit cards | $ 0.8 |
Fair Value Measurements Financi
Fair Value Measurements Financial Instrument at Fair Value Schedule (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Liabilities: | ||
Fair value measurement transfers between levels | $ 0 | $ 0 |
Recurring | ||
Assets: | ||
Total assets | 264,012,000 | 134,308,000 |
Liabilities: | ||
Total liabilities | 11,368,000 | 17,187,000 |
Recurring | Common stock warrants | ||
Liabilities: | ||
Total liabilities | 11,368,000 | 17,187,000 |
Recurring | Money market funds | ||
Assets: | ||
Total assets | 35,292,000 | 24,811,000 |
Recurring | Corporate obligations | ||
Assets: | ||
Total assets | 101,172,000 | 67,706,000 |
Recurring | U.S. Treasury securities | ||
Assets: | ||
Total assets | 34,125,000 | 10,991,000 |
Recurring | Certificates of deposit | ||
Assets: | ||
Total assets | 30,862,000 | 16,776,000 |
Recurring | Mortgage and other asset backed securities | ||
Assets: | ||
Total assets | 61,565,000 | 13,228,000 |
Recurring | Restricted cash | ||
Assets: | ||
Total assets | 996,000 | 796,000 |
Recurring | Quoted Prices in Active Markets for Identical Items (Level 1) | ||
Assets: | ||
Total assets | 36,288,000 | 25,607,000 |
Liabilities: | ||
Total liabilities | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Items (Level 1) | Common stock warrants | ||
Liabilities: | ||
Total liabilities | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Items (Level 1) | Money market funds | ||
Assets: | ||
Total assets | 35,292,000 | 24,811,000 |
Recurring | Quoted Prices in Active Markets for Identical Items (Level 1) | Corporate obligations | ||
Assets: | ||
Total assets | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Items (Level 1) | U.S. Treasury securities | ||
Assets: | ||
Total assets | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Items (Level 1) | Certificates of deposit | ||
Assets: | ||
Total assets | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Items (Level 1) | Mortgage and other asset backed securities | ||
Assets: | ||
Total assets | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Items (Level 1) | Restricted cash | ||
Assets: | ||
Total assets | 996,000 | 796,000 |
Recurring | Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Total assets | 227,724,000 | 108,701,000 |
Liabilities: | ||
Total liabilities | 0 | 0 |
Recurring | Significant Other Observable Inputs (Level 2) | Common stock warrants | ||
Liabilities: | ||
Total liabilities | 0 | 0 |
Recurring | Significant Other Observable Inputs (Level 2) | Money market funds | ||
Assets: | ||
Total assets | 0 | 0 |
Recurring | Significant Other Observable Inputs (Level 2) | Corporate obligations | ||
Assets: | ||
Total assets | 101,172,000 | 67,706,000 |
Recurring | Significant Other Observable Inputs (Level 2) | U.S. Treasury securities | ||
Assets: | ||
Total assets | 34,125,000 | 10,991,000 |
Recurring | Significant Other Observable Inputs (Level 2) | Certificates of deposit | ||
Assets: | ||
Total assets | 30,862,000 | 16,776,000 |
Recurring | Significant Other Observable Inputs (Level 2) | Mortgage and other asset backed securities | ||
Assets: | ||
Total assets | 61,565,000 | 13,228,000 |
Recurring | Significant Other Observable Inputs (Level 2) | Restricted cash | ||
Assets: | ||
Total assets | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Total assets | 0 | 0 |
Liabilities: | ||
Total liabilities | 11,368,000 | 17,187,000 |
Recurring | Significant Unobservable Inputs (Level 3) | Common stock warrants | ||
Liabilities: | ||
Total liabilities | 11,368,000 | 17,187,000 |
Recurring | Significant Unobservable Inputs (Level 3) | Money market funds | ||
Assets: | ||
Total assets | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | Corporate obligations | ||
Assets: | ||
Total assets | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | U.S. Treasury securities | ||
Assets: | ||
Total assets | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | Certificates of deposit | ||
Assets: | ||
Total assets | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | Mortgage and other asset backed securities | ||
Assets: | ||
Total assets | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | Restricted cash | ||
Assets: | ||
Total assets | $ 0 | $ 0 |
Fair Value Measurements Preferr
Fair Value Measurements Preferred and Common Stock Warrant Liability Rollforward (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Summary of changes in the fair value of the preferred and common stock warrant liability classified within Level 3 of the fair value hierarchy | ||
Beginning balance | $ 17,187 | $ 14,124 |
Change in fair value | (5,819) | (2,979) |
Exercises | 0 | (465) |
Repurchases | 0 | 0 |
Conversions | 0 | 0 |
Ending balance | $ 11,368 | $ 10,680 |
Net Loss Per Share (Details)
Net Loss Per Share (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Net Income (Loss) Per Share | ||||
Anti-dilutive common stock equivalents excluded from the calculation of diluted net loss per share (in shares) | 4,521 | 3,916 | 4,521 | 3,916 |
Outstanding stock options | ||||
Net Income (Loss) Per Share | ||||
Anti-dilutive common stock equivalents excluded from the calculation of diluted net loss per share (in shares) | 3,503 | 3,477 | 3,503 | 3,477 |
Common stock warrants | ||||
Net Income (Loss) Per Share | ||||
Anti-dilutive common stock equivalents excluded from the calculation of diluted net loss per share (in shares) | 397 | 400 | 397 | 400 |
Shares issuable under employee stock purchase plan | ||||
Net Income (Loss) Per Share | ||||
Anti-dilutive common stock equivalents excluded from the calculation of diluted net loss per share (in shares) | 13 | 11 | 13 | 11 |
Restricted stock units | ||||
Net Income (Loss) Per Share | ||||
Anti-dilutive common stock equivalents excluded from the calculation of diluted net loss per share (in shares) | 608 | 28 | 608 | 28 |
Warrants (Details)
Warrants (Details) - USD ($) $ / shares in Units, $ in Thousands | Jul. 31, 2010 | Mar. 31, 2016 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Warrants | ||||||||
Number of shares issuable upon exercise of outstanding warrants (in shares) | 397,000 | 397,000 | 398,000 | |||||
Weighted-average exercise price per share (in dollars per share) | $ 5.88 | $ 5.88 | ||||||
Class of warrant or right number of warrants exercised on net basis (in shares) | 1,317 | |||||||
Stock issued during period shares warrants exercise on net basis (in shares) | 1,109 | |||||||
Increase (decrease) in fair value of warrants | $ (5,819) | $ (2,979) | ||||||
Warrants to purchase Common stock expiring between June 10, 2020 to July 9, 2020 | ||||||||
Warrants | ||||||||
Number of shares issuable upon exercise of outstanding warrants (in shares) | 393,000 | 393,000 | 393,000 | |||||
Weighted-average exercise price per share (in dollars per share) | $ 5.88 | $ 5.88 | ||||||
Increase (decrease) in fair value of warrants | $ (2,900) | $ 2,600 | $ 5,800 | $ 3,000 | ||||
Warrants to purchase Common stock expiring between June 10, 2020 to July 9, 2020 | Warrants issued in connection with financing transactions | ||||||||
Warrants | ||||||||
Number of shares issuable upon exercise of outstanding warrants (in shares) | 871,580 | |||||||
Expiration period | 10 years | |||||||
Warrants to purchase Common stock expiring between June 10, 2020 to July 9, 2020 | Series E Preferred Stock | ||||||||
Warrants | ||||||||
Discount recorded to the preferred stock issued | $ 3,000 | |||||||
Warrants to purchase Common stock expiring between March 26, 2015 to December 31, 2017 | ||||||||
Warrants | ||||||||
Number of shares issuable upon exercise of outstanding warrants (in shares) | [1],[2] | 4,000 | 4,000 | 5,000 | ||||
Minimum | Warrants to purchase Common stock expiring between March 26, 2015 to December 31, 2017 | ||||||||
Warrants | ||||||||
Weighted-average exercise price per share (in dollars per share) | [1],[2] | $ 4 | $ 4 | |||||
Maximum | Warrants to purchase Common stock expiring between March 26, 2015 to December 31, 2017 | ||||||||
Warrants | ||||||||
Weighted-average exercise price per share (in dollars per share) | [1],[2] | $ 7.40 | $ 7.40 | |||||
[1] | In March 2016, the warrant holders exercised warrants to purchase 1,317 shares of Common Stock on a net basis, resulting in the issuance of 1,109 shares of Common Stock. | |||||||
[2] | Warrants to purchase common stock were issued in connection with various debt financing transactions that were consummated in periods prior to December 31, 2012. See discussion below for further details. |
Significant Agreements - Celgen
Significant Agreements - Celgene (Details) $ in Thousands | Feb. 20, 2008discovery_stage_compound | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) |
Significant Agreements | |||||
Cost-sharing, net | $ 3,060 | $ 5,286 | $ 6,117 | $ 9,336 | |
Investor | Collaboration, License, and Option Agreement | |||||
Significant Agreements | |||||
Deferred revenue recognized | 100 | 400 | 300 | 800 | |
Cost-sharing, net | 3,100 | $ 5,300 | 6,100 | $ 9,300 | |
Investor | Collaboration, License, and Option Agreement | Sotarcept | |||||
Significant Agreements | |||||
Number of license options granted | discovery_stage_compound | 3 | ||||
Payments received | $ 43,300 | ||||
Percentage of development costs for which collaborator is responsible | 100.00% | ||||
Investor | Collaboration, License, and Option Agreement | Luspatercept | |||||
Significant Agreements | |||||
Payments received | $ 81,600 | ||||
Investor | Collaboration, License, and Option Agreement | Clinical milestones | Sotarcept | |||||
Significant Agreements | |||||
Milestone payment receivable on commencement of Phase 2b clinical trial | 10,000 | 10,000 | |||
Investor | Collaboration, License, and Option Agreement | Clinical milestones | Luspatercept | |||||
Significant Agreements | |||||
Milestone payment receivable on commencement of Phase 2b clinical trial | $ 25,000 | $ 25,000 | |||
Investor | Collaboration, License, and Option Agreement | Weighted Average | Sotarcept | |||||
Significant Agreements | |||||
Potential royalty rate (as a percent) | 20.00% |
Significant Agreements - Other
Significant Agreements - Other Agreements (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
May 31, 2014 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2012 | Dec. 31, 2004 | |
Significant Agreements | |||||||
Milestones and fees | $ 16,138,000 | $ 14,150,000 | $ 32,390,000 | $ 28,930,000 | |||
License agreement with research institution | |||||||
Significant Agreements | |||||||
Milestones and fees expensed | 0 | 0 | 0 | 0 | |||
License Agreement | Common Stock | License agreement with a non-profit institution | |||||||
Significant Agreements | |||||||
Number of shares issued as compensation for licenses (in shares) | 62,500 | ||||||
Fair value of shares issued as compensation for licenses | $ 25,000 | ||||||
License Agreement | Minimum | License agreement with a non-profit institution | |||||||
Significant Agreements | |||||||
Milestone fees payable as percentage of research and U.S. development progress and sublicensing revenue | 10.00% | ||||||
Royalty payable as percentage of net sales | 1.00% | ||||||
License Agreement | Maximum | License agreement with a non-profit institution | |||||||
Significant Agreements | |||||||
Milestone fees payable as percentage of research and U.S. development progress and sublicensing revenue | 25.00% | ||||||
Royalty payable as percentage of net sales | 3.50% | ||||||
License Agreement | Dalantercept | License agreement with certain individuals | |||||||
Significant Agreements | |||||||
Percentage of reduction in royalty rate for a period of time after patent expiration | 50.00% | ||||||
Milestones and fees expensed | 0 | 0 | 0 | 0 | |||
License Agreement | Dalantercept | License agreement with research institution | |||||||
Significant Agreements | |||||||
Royalty payable as percentage of net sales | 1.50% | ||||||
Annual payment upon first commercial sale | $ 25,000 | ||||||
License Agreement | Development milestone | Sotarcept | Maximum | License agreement with a non-profit institution | |||||||
Significant Agreements | |||||||
Total potential milestone payments | $ 2,000,000 | ||||||
License Agreement | Development milestone | Luspatercept | Maximum | License agreement with a non-profit institution | |||||||
Significant Agreements | |||||||
Total potential milestone payments | 700,000 | ||||||
License Agreement | Development and sales milestone | Dalantercept | Maximum | License agreement with certain individuals | |||||||
Significant Agreements | |||||||
Total potential milestone payments | $ 1,000,000 | ||||||
License Agreement | Development and commercial milestone | Dalantercept | Maximum | License agreement with research institution | |||||||
Significant Agreements | |||||||
Total potential milestone payments | $ 1,000,000 | ||||||
Non-collaborative Arrangement Transactions | License Agreement with Non Profit Institution | |||||||
Significant Agreements | |||||||
Milestones and fees | 200,000 | 400,000 | 500,000 | 800,000 | |||
Collaborative Arrangement | License agreement with antibody technology company | |||||||
Significant Agreements | |||||||
Milestones and fees expensed | $ 300,000 | $ 100,000 | $ 100,000 | $ 1,000,000 | $ 100,000 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Stock-based compensation expense | $ 4,551 | $ 2,660 | $ 8,800 | $ 5,231 |
Employee Stock Purchase Plan 2013 | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Stock-based compensation expense | $ 100 | $ 100 | $ 100 | $ 100 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Stock-Based Compensation Costs Recognized (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost | ||||
Stock-based compensation expense | $ 4,551 | $ 2,660 | $ 8,800 | $ 5,231 |
Research and Development | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost | ||||
Stock-based compensation expense | 1,850 | 1,019 | 3,676 | 2,101 |
General and Administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost | ||||
Stock-based compensation expense | $ 2,701 | $ 1,641 | $ 5,124 | $ 3,130 |
Stock-Based Compensation - Sc43
Stock-Based Compensation - Schedule of Weighted-Average Assumptions Used for Estimating Fair Value (Details) - Stock Option | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Expected volatility | 64.50% | 66.80% | 64.40% | 67.10% |
Expected term (in years) | 6 years | 6 years | 5 years 11 months 9 days | 6 years |
Risk-free interest rate | 1.50% | 1.60% | 1.40% | 1.70% |
Expected dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2016 | Dec. 31, 2015 | ||
Number of Grants | |||
Granted (in shares) | 582,240 | ||
Exercised (in shares) | (246,727) | ||
Aggregate Intrinsic Value | |||
Weighted average grant date fair value (in usd per share) | $ 28.23 | ||
Total proceeds from options exercised | $ 1,600 | ||
Aggregate intrinsic value of options exercised | $ 6,400 | ||
Stock Option | |||
Number of Grants | |||
Outstanding at the beginning of period (in shares) | 3,191,000 | ||
Granted (in shares) | 582,000 | ||
Exercised (in shares) | (247,000) | ||
Canceled or forfeited (in shares) | (23,000) | ||
Outstanding at the end of the period (in shares) | 3,503,000 | 3,191,000 | |
Exercisable at the end of the period (in shares) | 2,093,000 | ||
Vested and expected to vest at the end of the period (in shares) | [1] | 3,449,000 | |
Weighted- Average Exercise Price Per Share | |||
Outstanding at the beginning of period (in usd per share) | $ 18.85 | ||
Granted (in usd per share) | 28.23 | ||
Exercised (in usd per share) | 6.28 | ||
Canceled or forfeited (in usd per share) | 35.09 | ||
Outstanding at the end of the period (in usd per share) | 21.18 | $ 18.85 | |
Exercisable at the end of the period (in usd per share) | 14.21 | ||
Vested and expected to vest at the end of the period (in usd per share) | [1] | $ 21.01 | |
Weighted- Average Contractual Life | |||
Outstanding at the beginning of the period (in years) | 6 years 6 months 45 days | 6 years 3 months 23 days | |
Outstanding at the end of the period (in years) | 6 years 6 months 45 days | 6 years 3 months 23 days | |
Exercisable at the end of the period (in years) | 5 years 1 month 40 days | ||
Vested and expected to vest at the end of the period (in years) | [1] | 6 years 5 months 60 days | |
Aggregate Intrinsic Value | |||
Outstanding at the end of the period (in usd) | [2] | $ 51,317 | |
Exercisable at the end of the period (in usd) | [2] | 43,957 | |
Vested and expected to vest at the end of the period (in usd) | [1],[2] | 51,101 | |
Unrecognized compensation expense | $ 23,500 | ||
Weighted-average period for recognition (in years) | 2 years 5 months 25 days | ||
[1] | This represents the number of vested options at June 30, 2016, plus the number of unvested options expected to vest at June 30, 2016, based on the unvested options outstanding at June 30, 2016, adjusted for the estimated forfeiture rate. | ||
[2] | The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying options and the estimated fair value of the common stock for the options that were in the money at June 30, 2016. |
Stock-Based Compensation - Sc45
Stock-Based Compensation - Schedule of Nonvested Restricted Stock Activity (Details) - USD ($) $ / shares in Units, $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Restricted stock units | ||
Number of Grants | ||
Unvested balance at beginning of the period (in shares) | 521,000 | |
Granted (in shares) | 96,000 | |
Vested (in shares) | 0 | |
Forfeited (in shares) | (9,000) | |
Unvested balance at end of the period (in shares) | 608,000 | 521,000 |
Weighted- Average Grant Date Fair Value | ||
Unvested balance at beginning of the period (in usd per share) | $ 31.57 | |
Granted (in usd per share) | 28.33 | |
Vested (in usd per share) | 0 | |
Forfeited (in usd per share) | 34.14 | |
Unvested balance at end of the period (in usd per share) | $ 31.04 | $ 31.57 |
Certain Individuals | Restricted stock units | ||
Number of Grants | ||
Granted (in shares) | 83,980 | |
Unvested balance at end of the period (in shares) | 131,910 | |
Weighted- Average Grant Date Fair Value | ||
Unrecognized compensation cost | $ 3.5 | |
Weighted-average period for recognition (in years) | 2 years 2 months 40 days | |
Certain Individuals | Performance-Based Restricted Stock Units | ||
Number of Grants | ||
Granted (in shares) | 12,565 | 464,000 |
Unvested balance at end of the period (in shares) | 476,565 | |
Weighted- Average Grant Date Fair Value | ||
Unrecognized compensation cost | $ 10.4 | |
Weighted-average period for recognition (in years) | 2 years 3 months 34 days |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | ||||
Provision for (benefit from) income taxes | $ 0 | $ 0 | $ 0 | $ 0 |
Related Party Transactions (Det
Related Party Transactions (Details) - Celgene - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Related Party Transactions | ||
Ownership percentage of entity's fully diluted equity | 12.90% | 12.30% |
Deferred revenue | $ 4.5 |