Omeros (OMER) 10-Q10 May 212021 Q1 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Mar. 31, 2021	May 06, 2021
Document Document and Entity Information [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Mar. 31, 2021
Entity File Number	001-34475
Entity Registrant Name	OMEROS CORPORATION
Entity Incorporation, State or Country Code	WA
Entity Tax Identification Number	91-1663741
Entity Address, Address Line One	201 Elliott Avenue West
Entity Address, City or Town	Seattle
Entity Address, State or Province	WA
Entity Address, Postal Zip Code	98119
City Area Code	206
Local Phone Number	676-5000
Title of 12(b) Security	Common Stock
Trading Symbol	OMER
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		62,328,370
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q1
Entity Central Index Key	0001285819
Amendment Flag	false

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 9,028	$ 10,501
Short-term investments	91,455	124,452
Receivables, net	24,826	3,841
Inventory	1,191	1,355
Prepaid expense and other assets	5,982	11,136
Total current assets	132,482	151,285
Property and equipment, net	2,173	2,551
Right of use assets	24,994	25,526
Restricted investments	1,054	1,055
Advanced payments, non-current	741	625
Total assets	161,444	181,042
Current liabilities:
Accounts payable	11,499	4,199
Accrued expenses	28,132	28,755
Current portion of lease liabilities	3,803	3,782
Total current liabilities	43,434	36,736
Lease liabilities, non-current	27,806	28,770
Unsecured convertible senior notes, net	312,159	236,288
Commitments and contingencies (Note 9)
Shareholders' deficit:
Preferred stock, par value $0.01 per share, 20,000,000 shares authorized; none issued and outstanding at March 31, 2021 and December 31, 2020.
Common stock, par value $0.01 per share, 150,000,000 shares authorized at March 31, 2021 and December 31, 2020; 62,252,012 and 61,671,231 shares issued and outstanding at March 31, 2021 and December 31, 2020, respectively.	622	616
Additional paid-in capital	689,882	751,304
Accumulated deficit	(912,459)	(872,672)
Total shareholders' deficit	(221,955)	(120,752)
Total liabilities and shareholders' deficit	$ 161,444	$ 181,042

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
Preferred stock, par value (USD per share)	$ 0.01	$ 0.01
Preferred stock, authorized shares	20,000,000	20,000,000
Preferred stock, Issued shares	0	0
Preferred stock, outstanding shares	0	0
Common stock, par value (USD per share)	$ 0.01	$ 0.01
Common stock, authorized shares	150,000,000	150,000,000
Common stock, Issued shares	62,252,012	61,671,231
Common stock, outstanding shares	62,252,012	61,671,231

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
Product sales, net	$ 21,061	$ 23,537
Costs and expenses:
Cost of product sales	263	267
Research and development	33,358	28,911
Selling, general and administrative	18,052	18,036
Total costs and expenses	51,673	47,214
Loss from operations	(30,612)	(23,677)
Interest expense	(4,897)	(5,903)
Other income	419	549
Net loss	(35,090)	(29,031)
Comprehensive loss	$ (35,090)	$ (29,031)
Basic and diluted net loss per share (USD per share)	$ (0.57)	$ (0.53)
Weighted-average shares used to compute basic and diluted net loss per share ( in shares)	61,928,511	54,299,813
Revenue, Product and Service [Extensible List]	us-gaap:ProductMember	us-gaap:ProductMember
Cost, Product and Service [Extensible List]	us-gaap:ProductMember	us-gaap:ProductMember

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Operating activities:
Net loss	$ (35,090)	$ (29,031)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation expense	3,271	3,476
Non-cash interest expense	396	2,533
Depreciation and amortization	390	402
Changes in operating assets and liabilities:
Receivables	(20,985)	11,068
Inventory	164	(64)
Prepaid expenses and other assets	5,038	628
Accounts payable and accrued expenses	6,562	1,847
Net cash used in operating activities	(40,254)	(9,141)
Investing activities:
Purchases of property and equipment	(12)	(66)
Purchases of investments	(3)	(3,176)
Proceeds from the sale and maturities of investments	33,000	14,018
Net cash provided by investing activities	32,985	10,776
Financing activities:
Proceeds upon exercise of stock options and warrants	6,333	2,712
At the market offering costs	(241)
Payments on finance lease obligations	(296)	(313)
Net cash provided by financing activities	5,796	2,399
Net (decrease) increase in cash and cash equivalents	(1,473)	4,034
Cash and cash equivalents at beginning of period	10,501	3,084
Cash and cash equivalents at end of period	9,028	7,118
Supplemental cash flow information
Cash paid for interest	$ 5,995	89
Property acquired under finance lease		$ 22

Description of Business

Description of Business	3 Months Ended
Description of Business	Mar. 31, 2021
Description of Business
Description of Business	Note 1—Description of Business Description of Business We are a commercial-stage biopharmaceutical company committed to discovering, developing and commercializing small-molecule and protein therapeutics for large-market as well as orphan indications targeting inflammation, complement-mediated diseases, disorders of the central nervous system, addiction and immune-related diseases, including cancers. Our first drug product, OMIDRIA ® (phenylephrine and ketorolac intraocular solution) 1%/0.3% Our drug candidate narsoplimab is the subject of a biologics license application (“BLA”) under priority review by the U.S. Food and Drug Administration (“FDA”) for the treatment of hematopoietic stem cell transplant-associated thrombotic microangiopathy (“HSCT-TMA”). We also have multiple late-stage clinical development programs in our pipeline, which are focused on: complement-mediated disorders, including immunoglobulin A (“IgA”) nephropathy, atypical hemolytic uremic syndrome (“aHUS”) and COVID-19. Basis of Presentation Our condensed consolidated financial statements include the financial position and results of operations of Omeros Corporation (“Omeros”) and our wholly owned subsidiaries. All intercompany transactions have been eliminated, and we have determined we operate in one segment. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. The information as of March 31,2021 and December 31, 2020 and for the three months ended March 31, 2021 and 2020 includes all adjustments, which include normal recurring adjustments, necessary to present fairly our interim financial information. The Condensed Consolidated Balance Sheet at December 31, 2020 has been derived from our audited financial statements but does not include all of the information and footnotes required by GAAP for audited annual financial information. The accompanying unaudited condensed consolidated financial statements and related notes thereto should be read in conjunction with the audited consolidated financial statements and related notes thereto that are included in our Annual Report on Form 10-K for the year ended December 31, 2020, which was filed with the U.S. Securities and Exchange Commission (“SEC”) on March 1, 2021. Risks and Uncertainties The COVID-19 pandemic and the responses to it by various governmental authorities, the medical community and others have had a significant impact on our business. It is not possible to estimate precisely the future impact of COVID-19 on our business, operations or financial results due to the unknown magnitude, duration and outcome of the pandemic. We have filed with FDA our narsoplimab BLA for HSCT-TMA, which has been granted priority review with an FDA action date of July 17, 2021 under the Prescription Drug User Fee Act. We anticipate, but cannot guarantee, that narsoplimab will receive FDA approval and will launch in the U.S. in 2021. If approved, we cannot fully predict the timing or the magnitude of narsoplimab revenues, but we believe they will be significant. Our sales and marketing strategies for the launch of narsoplimab for HSCT-TMA include various milestones at which we commit to incremental spending, providing for flexibility in the timing of costs incurred should the approval of narsoplimab be delayed. We plan to continue to fund our operations for the next twelve months with our cash and investments from sales of OMIDRIA and, if FDA approval is granted, from sales of narsoplimab for HSCT-TMA. In addition, we may utilize funds available under our line of credit, which allows us to borrow up to 85% of our available accounts receivable borrowing base, less certain reserves, or $50.0 million, whichever is less. We also entered into a sales agreement to sell shares of our common stock, from time to time, up to an aggregate offering amount of $150.0 million through an “at the market” equity offering program. Should it be necessary or determined to be strategically advantageous, we could pursue debt financings as well as public and private offerings of our equity securities, similar to those we have previously completed, or other strategic transactions, which may include licensing a portion of our existing technology. Should it be necessary to manage our operating expenses, we would reduce our projected cash requirements by delaying clinical trials, reducing selected research and development efforts, or implementing other restructuring activities. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Significant items subject to such estimates include revenue recognition, stock-based compensation expense and accruals for clinical trials as well as manufacturing of drug product. We base our estimates on historical experience and on various other factors, including the impact of the COVID-19 pandemic, that we believe are reasonable under the circumstances; however, actual results could differ from these estimates.

Significant Accounting Policies

Significant Accounting Policies	3 Months Ended
Significant Accounting Policies	Mar. 31, 2021
Significant Accounting Policies
Significant Accounting Policies	Note 2—Significant Accounting Policies Revenue Recognition When we enter into a customer contract, we perform the following five steps: (i) identify the contract with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) we satisfy a performance obligation. We generally record revenue from product sales when the product is delivered to our wholesalers. Product sales are recorded net of wholesaler distribution fees and estimated chargebacks, rebates, returns and purchase-volume discounts. Accruals or allowances are established for these deductions in the same period when revenue is recognized, and actual amounts incurred are offset against the applicable accruals or allowances. We reflect each of these accruals or allowances as either a reduction in the related accounts receivable or as an accrued liability depending on how the amount is expected to be settled. Inventory Inventory is stated at the lower of cost or market determined on a specific identification basis in a manner that approximates the first-in, first-out (“FIFO”) method. Costs include amounts related to third-party manufacturing, transportation and internal labor and overhead. Capitalization of costs as inventory begins when regulatory approval of the product candidate is reasonably assured in the U.S. or the European Union (“EU”). We expense inventory costs related to product candidates as research and development expenses prior to receiving regulatory approval in the respective territory. Inventory is reduced to net realizable value for excess and obsolete inventories based on forecasted demand. Right of Use Assets and Related Lease Liabilities We record operating leases as right-of-use assets and recognize the related lease liabilities equal to the fair value of the lease payments using our incremental borrowing rate when the implicit rate in the lease agreement is not readily available. We recognize variable lease payments when incurred. Costs associated with operating lease assets are recognized on a straight-line basis within operating expenses over the term of the lease. We record finance leases as a component of property and equipment and amortize these assets within operating expenses on a straight-line basis to their residual values over the shorter of the term of the underlying lease or the estimated useful life of the equipment. The interest component of a finance lease is included in interest expense and recognized using the effective interest method over the lease term. We account for leases with initial terms of 12 months or less as operating expenses on a straight-line basis over the lease term. Stock-Based Compensation Stock-based compensation expense is recognized for all share-based payments based on estimated fair values as of the date of grant. The fair value of our stock options is calculated using the Black-Scholes option-pricing model, which requires judgmental assumptions around volatility, forfeiture rates and expected option term. Compensation expense is recognized over the optionees’ requisite service periods, which is generally the vesting period, using the straight-line method. Forfeiture expense is estimated at the time of grant and revised in subsequent periods if actual forfeitures differ from those estimates. Income Taxes Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their tax bases. Deferred tax assets and liabilities are measured using enacted tax rates applied to taxable income in the years in which those temporary differences are expected to be recovered or settled. We recognize the effect of income tax positions only if those positions are more likely than not of being sustained upon an examination. A valuation allowance is established when it is more likely than not that the deferred tax assets will not be realized. Recently Adopted Pronouncements On January 1, 2021, we adopted Accounting Standard Update (“ Debt—Debt with Conversion Options and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40) on a modified retrospective basis. ASU 2020-06 removes the separate liability and equity accounting for our convertible senior notes. Consequently, we now account for our convertible senior notes wholly as debt. (See “Note 3 – Net Loss Per Share” and “Note 7 – Unsecured Convertible Senior Notes” for further information) On January 1, 2021, we adopted ASU 2019-12, Income Taxes (Topic 740), which is intended to simplify various aspects of the income tax accounting guidance, including elimination of the exception to the incremental approach of intra-period tax allocation when there is a loss from continuing operations and income or gain from other items (for example, other comprehensive income). We adopted the standard on a prospective basis and the impact to our consolidated financial statements for the three months ended March 31,2021 was immaterial.

Net Loss Per Share

Net Loss Per Share	3 Months Ended
Net Loss Per Share	Mar. 31, 2021
Net Loss Per Share
Net Loss Per Share	Note 3—Net Loss Per Share Our potentially dilutive securities include potential common shares related to our stock options, warrant and unsecured convertible senior notes. Diluted earnings per share (“Diluted EPS”) considers the impact of potentially dilutive securities except in periods in which there is a loss because the inclusion of the potential common shares would have an anti-dilutive effect. Shares issuable under the unsecured convertible notes are calculated using the if-converted method and are excluded from the below table as their impact is anti-dilutive. Diluted EPS excludes the impact of potential common shares related to our stock options in periods in which the option exercise price is greater than the average market price of our common stock for the period. Potentially dilutive securities excluded from Diluted EPS are as follows: Three Months Ended March 31, 2021 2020 Outstanding options to purchase common stock 3,453,133 1,659,029 Outstanding warrants to purchase common stock — 10,901 Total potentially dilutive shares excluded from loss per share 3,453,133 1,669,930

Certain Balance Sheet Accounts

Certain Balance Sheet Accounts	3 Months Ended
Certain Balance Sheet Accounts	Mar. 31, 2021
Certain Balance Sheet Accounts
Certain Balance Sheet Accounts	Note 4—Certain Balance Sheet Accounts Accounts Receivable, net Accounts receivable, net consist of the following: March 31, December 31, 2021 2020 (In thousands) Trade receivables, net $ 24,576 $ 3,771 Sublease and other receivables 250 70 Total accounts receivables, net $ 24,826 $ 3,841 Trade receivables net of product return and chargeback allowances were $1.5 million and $1.2 million as of March 31, 2021 and December 31, 2020, respectively. Inventory Inventory consists of the following: March 31, December 31, 2021 2020 (In thousands) Raw materials $ 242 $ 109 Work-in-progress 405 462 Finished goods 544 784 Total inventory $ 1,191 $ 1,355 Property and Equipment, Net Property and equipment, net consists of the following: March 31, December 31, 2021 2020 (In thousands) Finance leases $ 5,690 $ 5,690 Laboratory equipment 2,910 2,898 Computer equipment 985 985 Office equipment and furniture 625 625 Total cost 10,210 10,198 Less accumulated depreciation and amortization (8,037) (7,647) Total property and equipment, net $ 2,173 $ 2,551 For the three months ended March 31, 2021 and 2020, depreciation and amortization expenses were $0.4 million. Accrued Expenses Accrued expenses consist of the following: March 31, December 31, 2021 2020 (In thousands) Sales rebates, fees and discounts $ 6,871 $ 3,326 Contract research and development 6,146 7,952 Consulting and professional fees 5,002 5,393 Interest payable 3,703 5,205 Employee compensation 3,665 3,948 Clinical trials 2,007 2,121 Other accrued expenses 738 810 Total accrued expenses $ 28,132 $ 28,755

Fair-Value Measurements

Fair-Value Measurements	3 Months Ended
Fair-Value Measurements	Mar. 31, 2021
Fair-Value Measurements
Fair-Value Measurements	Note 5—Fair-Value Measurements As of March 31, 2021, and December 31, 2020, all investments were classified as short-term and available-for-sale on the accompanying Condensed Consolidated Balance Sheets. Investment income, which was included as a component of other income, consists of interest earned. On a recurring basis, we measure certain financial assets at fair value. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability, an exit price, in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The accounting standard establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs, where available. The following summarizes the three levels of inputs required: Level 1—Observable inputs for identical assets or liabilities, such as quoted prices in active markets; Level 2—Inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3—Unobservable inputs in which little or no market data exists, therefore they are developed using estimates and assumptions developed by us, which reflect those that a market participant would use. Our fair value hierarchy for our financial assets and liabilities measured at fair value on a recurring basis are as follows: March 31, 2021 Level 1 Level 2 Level 3 Total (In thousands) Assets: Money-market funds classified as non-current restricted investments $ 1,054 $ — $ — $ 1,054 Money-market funds classified as short-term investments 91,455 — — 91,455 Total $ 92,509 $ — $ — $ 92,509 December 31, 2020 Level 1 Level 2 Level 3 Total (In thousands) Assets: Money-market funds classified as non-current restricted investments $ 1,055 $ — $ — $ 1,055 Money-market funds classified as short-term investments 124,452 — — 124,452 Total $ 125,507 $ — $ — $ 125,507 Cash held in demand deposit accounts of $9.0 million and $10.5 million is excluded from our fair-value hierarchy disclosure as of March 31, 2021 and December 31, 2020, respectively. There were no unrealized gains or losses associated with our investments as of March 31, 2021 or December 31, 2020. The carrying amounts reported in the accompanying Condensed Consolidated Balance Sheets for receivables, accounts payable, other current monetary assets and liabilities approximate fair value. See “Note7—Unsecured Convertible Senior Notes” for the carrying amount and estimated fair value of our outstanding convertible senior notes.

Line of Credit

Line of Credit	3 Months Ended
Line of Credit	Mar. 31, 2021
Line of Credit
Line of Credit	Note 6—Line of Credit We have a Loan and Security Agreement with Silicon Valley Bank, which provides for a $50.0 million revolving line of credit facility (the “Line of Credit Agreement”). Under the Line of Credit Agreement, we may draw, on a revolving basis, up to the lesser of $50.0 million or 85.0% of our eligible accounts receivable, less certain reserves. Interest on amounts outstanding is payable monthly at the greater of 5.5% or the prime rate. The line of credit is secured by all our assets excluding intellectual property and development program inventories. As of March 31, 2021 and December 31, 2020, no amounts were outstanding under the Line of Credit Agreement.

Unsecured Convertible Senior No

Unsecured Convertible Senior Notes	3 Months Ended
Unsecured Convertible Senior Notes	Mar. 31, 2021
Unsecured Convertible Senior Notes
Unsecured Convertible Senior Notes	Note 7—Unsecured Convertible Senior Notes On January 1, 2021, we early adopted ASU 2020-06 convertible Unsecured convertible senior notes outstanding at March 31, 2021 and December 31, 2020 are as follows: Balance as of March 31, 2021 2023 Notes 2026 Notes Total (In thousands) Principal amount $ 95,000 $ 225,030 $ 320,030 Unamortized debt issuance costs (1,749) (6,122) (7,871) Total unsecured convertible senior notes, net $ 93,251 $ 218,908 $ 312,159 Fair value of outstanding unsecured convertible senior notes (1) $ 114,119 $ 279,431 Amount by which the unsecured convertible senior notes if-converted value exceeds their principal amount $ 19,119 $ 54,401 Balance as of December 31, 2020 2023 Notes 2026 Notes Total (In thousands) Principal amount $ 95,000 $ 225,030 $ 320,030 Unamortized discount (17,101) (60,544) (77,645) Unamortized issuance costs attributable to liability component (1,481) (4,616) (6,097) Total unsecured convertible senior notes, net $ 76,418 $ 159,870 $ 236,288 Fair value of outstanding unsecured convertible senior notes (1) $ 101,769 $ 246,779 Amount by which the unsecured convertible senior notes if-converted value exceeds their principal amount $ 6,769 $ 21,749 Equity component $ 25,854 $ 63,544 Unamortized issuance costs (837) (1,916) Net carrying amount of equity component (2) $ 25,017 $ 61,628 (1) The fair value is classified as Level 3 due to the limited trading activity for the unsecured convertible senior notes. (2) Included in the Condensed Consolidated Balance Sheet within additional paid-in capital at December 31, 2020. Upon early adoption of ASU 2020-06 on January 1, 2021, amounts were reclassified to unsecured convertible senior notes, net. 2023 Unsecured Convertible Senior Notes On November 15, 2018, we issued $210.0 million in aggregate principal amount of our 6.25% convertible senior notes (the “2023 Notes”). The 2023 Notes accrue interest at an annual rate of 6.25% per annum, payable semi-annually in arrears on May 15 and November 15 of each year. The 2023 Notes mature on November 15, 2023 unless earlier purchased, redeemed or converted in accordance with their terms. On August 14, 2020, we issued the 5.25% convertible senior notes (the “2026 Notes”) and used approximately $125.6 million of the net proceeds to repurchase $115.0 million principal amount of the 2023 Notes (see “2026 Unsecured Convertible Senior Notes” below). The 2023 Notes are convertible into cash, shares of our common stock or a combination thereof, as we elect at our sole discretion. The initial conversion rate is 52.0183 shares of our common stock per $1,000 of note principal (equivalent to an initial conversion price of approximately $19.22 per share of common stock), subject to adjustment in certain circumstances. To reduce the dilutive impact or potential cash expenditure associated with the conversion of the 2023 Notes, we entered into a capped call transaction (the “2023 Capped Call”), which covers the number of shares of our common stock underlying the 2023 Notes when our common stock is trading between the initial conversion price of $19.22 per share and $28.84 per share. In connection with the partial repurchase of the 2023 Notes, we entered into a capped call termination contract to unwind a proportionate amount of the 2023 Capped Call. As of March 31, 2021, approximately 4.9 million shares remained outstanding on the 2023 Capped Call. The following table sets forth total interest expense recognized in connection with the 2023 Notes: Three Months Ended March 31, 2021 2020 (In thousands) Contractual interest expense $ 1,484 $ 3,281 Amortization of debt issuance costs 150 202 Amortization of debt discount — 2,331 Total $ 1,634 $ 5,814 2026 Unsecured Convertible Senior Notes The 2026 Notes are unsecured and accrue interest at an annual rate of 5.25% per annum, payable semi-annually in arrears on February 15 and August 15 of each year. The 2026 Notes mature on February 15, 2026, unless earlier purchased, redeemed or converted in accordance with their terms. The initial conversion rate is 54.0906 shares of our common stock per $1,000 of note principal (equivalent to an initial conversion price of approximately $18.4875 per share of common stock), which equals approximately 12.2 million shares issuable upon conversion, subject to adjustment in certain circumstances. The 2026 Notes are convertible at the option of the holders on or after November 15, 2025 at any time prior to the close of business on February 12, 2026. Additionally, holders may convert their 2026 Notes at their option at specified times prior to the maturity date only if: (1) during any calendar quarter, beginning after September 30, 2020, that the last reported sale price per share of our common stock exceeds 130% of the conversion price of the 2026 Notes for each of at least 20 trading days in the period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter; (2) during the five consecutive business days immediately after any five -consecutive-trading-day period (such five -consecutive-trading-day period, the “measurement period”) in which the trading price per $1,000 principal amount of 2026 Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price per share of our common stock on such trading day and the conversion rate on such trading day; (3) there is an occurrence of one or more certain corporate events or distributions of our common stock; or (4) we call the 2026 Notes for redemption. At our sole discretion, we may elect to convert the 2026 Notes into cash, shares of our common stock or a combination thereof at maturity. Subject to the satisfaction of certain conditions, beginning August 15, 2023, we may redeem in whole or in part the 2026 Notes at our option at a cash redemption price equal to the principal amount of the 2026 Notes plus any accrued and unpaid interest. In order to reduce the dilutive impact or potential cash expenditure associated with the conversion of the 2026 Notes, we entered into capped call transactions (the “2026 Capped Calls”). The 2026 Capped Calls will cover the number of shares of common stock underlying the 2026 Notes when our common stock is trading within the range of approximately $18.49 and $26.10 . However, should the market price of our common stock exceed the $26.10 cap, then the conversion of the 2026 Notes would have a dilutive impact or may require a cash expenditure to the extent the market price exceeds the cap price. The following table sets forth interest expense recognized related to the 2026 Notes: Three Months Ended March 31, 2021 (In thousands) Contractual interest expense $ 2,954 Amortization of debt issuance costs 246 Total $ 3,200 Future minimum payments for the 2023 and 2026 Notes as of March 31, 2021 are as follows: (In thousands) 2021 $ — 2022 — 2023 95,000 2024 — 2025 — 2026 225,030 Total future minimum payments under the convertible senior notes $ 320,030

Leases

Leases	3 Months Ended
Leases	Mar. 31, 2021
Leases
Leases	Note 8—Leases We have an operating lease for our office and laboratory facilities with an initial term that ends in 2027 with two options to extend the lease term by five years. We carry various finance leases for laboratory equipment. Supplemental lease information is as follows: Three Months Ended 2021 2020 (In thousands) Lease cost Operating lease cost $ 1,583 $ 1,509 Finance lease cost: Amortization 323 357 Interest 63 89 Variable lease cost 813 542 Sublease income (418) (293) Net lease cost $ 2,364 $ 2,204 Cash paid for amounts included in the measurement of lease liabilities is as follows: Three Months Ended 2021 2020 (In thousands) Cash payments for operating leases $ 3,381 $ 2,136 Cash payments for financing leases $ 354 $ 402

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
Commitments and Contingencies	Mar. 31, 2021
Commitments and Contingencies.
Commitments and Contingencies	Note 9—Commitments and Contingencies Contracts We have various agreements with third parties that would collectively require payment of termination fees if we cancelled work as of March 31, 2021. Development Milestones and Product Royalties We have licensed a variety of intellectual property from third parties that we are currently developing or may develop in the future. These licenses may require milestone payments in connection with clinical development or commercial milestones as well as low single to low double-digit royalties on the net income or net sales of the product. For the three months ended March 31, 2021 and 2020, development milestone expenses were insignificant. We do not owe any royalties on OMIDRIA. Should narsoplimab be approved, we would owe milestone payments to development partners and be obligated to pay low single-digit royalties on net sales of the product.

Shareholders' Deficit

Shareholders' Deficit	3 Months Ended
Shareholders' Deficit	Mar. 31, 2021
Shareholders' Deficit
Shareholders' Deficit	Note 10—Shareholders’ Deficit Common Stock and Warrants On March 1, 2021, we entered into a sales agreement to sell shares of our common stock having an aggregate offering price of up to $150.0 million, from time to time, through an “at the market” equity offering program. As of March 31, 2021, we have not sold any shares under this program. During the three months ended March 31, 2021, a cashless exercise was executed for 43,115 warrants, resulting in the issuance of 24,901 shares of our common stock. As of March 31, 2021, 200,000 warrants remained outstanding with an exercise price of $23.00 per share. The warrants expire on April 12, 2023. Interim Condensed Consolidated Statements of Shareholders’ Deficit The changes in interim balances of the components of our shareholders’ deficit are as follows: Additional Common Paid-In Accumulated Stock Capital Deficit Total (In thousands) Balance January 1, 2021 $ 616 $ 751,304 $ (872,672) $ (120,752) Exercise of stock options 6 6,327 — 6,333 At the market offering costs — (241) — (241) Cumulative effect of adopting ASU 2020-06 — (70,779) (4,697) (75,476) Stock-based compensation expense — 3,271 — 3,271 Net loss — — (35,090) (35,090) Balance March 31, 2021 $ 622 $ 689,882 $ (912,459) $ (221,955) Additional Common Paid-In Accumulated Stock Capital Deficit Total (In thousands) Balance January 1, 2020 $ 542 $ 625,048 $ (734,611) $ (109,021) Exercise of stock options 3 2,709 — 2,712 Stock-based compensation expense — 3,476 — 3,476 Net loss — — (29,031) (29,031) Balance March 31, 2020 $ 545 $ 631,233 $ (763,642) $ (131,864)

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
Stock-Based Compensation	Mar. 31, 2021
Stock-Based Compensation.
Stock-Based Compensation	Note 11—Stock-Based Compensation Stock-based compensation expense is as follows: Three Months Ended March 31, 2021 2020 (In thousands) Research and development $ 1,480 $ 1,447 Selling, general and administrative 1,791 2,029 Total $ 3,271 $ 3,476 The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model. The following assumptions were applied to all stock option grants: Three Months Ended March 31, 2021 Estimated weighted-average fair value $ 13.15 Weighted-average assumptions: Expected volatility 81 % Expected life, in years 6.1 Risk-free interest rate 0.71 % Expected dividend yield — % Stock option activity for all stock plans and related information is as follows: Weighted- Average Aggregate Exercise Remaining Intrinsic Options Price per Contractual Life Value Outstanding Share (In years) (In thousands) Balance at December 31, 2020 11,938,528 $ 11.92 Granted 244,500 19.09 Exercised (555,880) 11.39 Canceled (69,603) 15.26 Balance at March 31, 2021 11,557,545 $ 12.08 5.9 $ 67,933 Vested and expected to vest at March 31, 2021 11,223,195 $ 12.03 5.8 $ 66,493 Exercisable at March 31, 2021 8,591,292 $ 11.55 4.9 $ 54,999 As of March 31, 2021, there were 3.0 million unvested options outstanding that will vest over a weighted-average period of 2.5 years and 3.9 million shares were available to grant. The total estimated compensation expense yet to be recognized on outstanding options is $22.7 million.

Significant Accounting Polici_2

Significant Accounting Policies (Policies)	3 Months Ended
Significant Accounting Policies (Policies)	Mar. 31, 2021
Significant Accounting Policies
Description of Business	Description of Business We are a commercial-stage biopharmaceutical company committed to discovering, developing and commercializing small-molecule and protein therapeutics for large-market as well as orphan indications targeting inflammation, complement-mediated diseases, disorders of the central nervous system, addiction and immune-related diseases, including cancers. Our first drug product, OMIDRIA ® (phenylephrine and ketorolac intraocular solution) 1%/0.3% Our drug candidate narsoplimab is the subject of a biologics license application (“BLA”) under priority review by the U.S. Food and Drug Administration (“FDA”) for the treatment of hematopoietic stem cell transplant-associated thrombotic microangiopathy (“HSCT-TMA”). We also have multiple late-stage clinical development programs in our pipeline, which are focused on: complement-mediated disorders, including immunoglobulin A (“IgA”) nephropathy, atypical hemolytic uremic syndrome (“aHUS”) and COVID-19.
Basis of Presentation	Basis of Presentation Our condensed consolidated financial statements include the financial position and results of operations of Omeros Corporation (“Omeros”) and our wholly owned subsidiaries. All intercompany transactions have been eliminated, and we have determined we operate in one segment. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. The information as of March 31,2021 and December 31, 2020 and for the three months ended March 31, 2021 and 2020 includes all adjustments, which include normal recurring adjustments, necessary to present fairly our interim financial information. The Condensed Consolidated Balance Sheet at December 31, 2020 has been derived from our audited financial statements but does not include all of the information and footnotes required by GAAP for audited annual financial information. The accompanying unaudited condensed consolidated financial statements and related notes thereto should be read in conjunction with the audited consolidated financial statements and related notes thereto that are included in our Annual Report on Form 10-K for the year ended December 31, 2020, which was filed with the U.S. Securities and Exchange Commission (“SEC”) on March 1, 2021.
Risks and Uncertainties	Risks and Uncertainties The COVID-19 pandemic and the responses to it by various governmental authorities, the medical community and others have had a significant impact on our business. It is not possible to estimate precisely the future impact of COVID-19 on our business, operations or financial results due to the unknown magnitude, duration and outcome of the pandemic. We have filed with FDA our narsoplimab BLA for HSCT-TMA, which has been granted priority review with an FDA action date of July 17, 2021 under the Prescription Drug User Fee Act. We anticipate, but cannot guarantee, that narsoplimab will receive FDA approval and will launch in the U.S. in 2021. If approved, we cannot fully predict the timing or the magnitude of narsoplimab revenues, but we believe they will be significant. Our sales and marketing strategies for the launch of narsoplimab for HSCT-TMA include various milestones at which we commit to incremental spending, providing for flexibility in the timing of costs incurred should the approval of narsoplimab be delayed. We plan to continue to fund our operations for the next twelve months with our cash and investments from sales of OMIDRIA and, if FDA approval is granted, from sales of narsoplimab for HSCT-TMA. In addition, we may utilize funds available under our line of credit, which allows us to borrow up to 85% of our available accounts receivable borrowing base, less certain reserves, or $50.0 million, whichever is less. We also entered into a sales agreement to sell shares of our common stock, from time to time, up to an aggregate offering amount of $150.0 million through an “at the market” equity offering program. Should it be necessary or determined to be strategically advantageous, we could pursue debt financings as well as public and private offerings of our equity securities, similar to those we have previously completed, or other strategic transactions, which may include licensing a portion of our existing technology. Should it be necessary to manage our operating expenses, we would reduce our projected cash requirements by delaying clinical trials, reducing selected research and development efforts, or implementing other restructuring activities.
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 amounts reported in the financial statements and accompanying notes. Significant items subject to such estimates include revenue recognition, stock-based compensation expense and accruals for clinical trials as well as manufacturing of drug product. We base our estimates on historical experience and on various other factors, including the impact of the COVID-19 pandemic, that we believe are reasonable under the circumstances; however, actual results could differ from these estimates.
Revenue Recognition	Revenue Recognition When we enter into a customer contract, we perform the following five steps: (i) identify the contract with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) we satisfy a performance obligation. We generally record revenue from product sales when the product is delivered to our wholesalers. Product sales are recorded net of wholesaler distribution fees and estimated chargebacks, rebates, returns and purchase-volume discounts. Accruals or allowances are established for these deductions in the same period when revenue is recognized, and actual amounts incurred are offset against the applicable accruals or allowances. We reflect each of these accruals or allowances as either a reduction in the related accounts receivable or as an accrued liability depending on how the amount is expected to be settled.
Inventory	Inventory Inventory is stated at the lower of cost or market determined on a specific identification basis in a manner that approximates the first-in, first-out (“FIFO”) method. Costs include amounts related to third-party manufacturing, transportation and internal labor and overhead. Capitalization of costs as inventory begins when regulatory approval of the product candidate is reasonably assured in the U.S. or the European Union (“EU”). We expense inventory costs related to product candidates as research and development expenses prior to receiving regulatory approval in the respective territory. Inventory is reduced to net realizable value for excess and obsolete inventories based on forecasted demand.
Right-of-Use Assets and Related Lease Liabilities	Right of Use Assets and Related Lease Liabilities We record operating leases as right-of-use assets and recognize the related lease liabilities equal to the fair value of the lease payments using our incremental borrowing rate when the implicit rate in the lease agreement is not readily available. We recognize variable lease payments when incurred. Costs associated with operating lease assets are recognized on a straight-line basis within operating expenses over the term of the lease. We record finance leases as a component of property and equipment and amortize these assets within operating expenses on a straight-line basis to their residual values over the shorter of the term of the underlying lease or the estimated useful life of the equipment. The interest component of a finance lease is included in interest expense and recognized using the effective interest method over the lease term. We account for leases with initial terms of 12 months or less as operating expenses on a straight-line basis over the lease term.
Stock-Based Compensation	Stock-Based Compensation Stock-based compensation expense is recognized for all share-based payments based on estimated fair values as of the date of grant. The fair value of our stock options is calculated using the Black-Scholes option-pricing model, which requires judgmental assumptions around volatility, forfeiture rates and expected option term. Compensation expense is recognized over the optionees’ requisite service periods, which is generally the vesting period, using the straight-line method. Forfeiture expense is estimated at the time of grant and revised in subsequent periods if actual forfeitures differ from those estimates.
Income Taxes	Income Taxes Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their tax bases. Deferred tax assets and liabilities are measured using enacted tax rates applied to taxable income in the years in which those temporary differences are expected to be recovered or settled. We recognize the effect of income tax positions only if those positions are more likely than not of being sustained upon an examination. A valuation allowance is established when it is more likely than not that the deferred tax assets will not be realized.
Recently Adopted Pronouncements	Recently Adopted Pronouncements On January 1, 2021, we adopted Accounting Standard Update (“ Debt—Debt with Conversion Options and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40) on a modified retrospective basis. ASU 2020-06 removes the separate liability and equity accounting for our convertible senior notes. Consequently, we now account for our convertible senior notes wholly as debt. (See “Note 3 – Net Loss Per Share” and “Note 7 – Unsecured Convertible Senior Notes” for further information) On January 1, 2021, we adopted ASU 2019-12, Income Taxes (Topic 740), which is intended to simplify various aspects of the income tax accounting guidance, including elimination of the exception to the incremental approach of intra-period tax allocation when there is a loss from continuing operations and income or gain from other items (for example, other comprehensive income). We adopted the standard on a prospective basis and the impact to our consolidated financial statements for the three months ended March 31,2021 was immaterial.

Net Loss Per Share (Tables)

Net Loss Per Share (Tables)	3 Months Ended
Net Loss Per Share (Tables)	Mar. 31, 2021
Net Loss Per Share
Calculation of Historical Outstanding Dilutive Securities Not Included in Diluted Loss per Share	Three Months Ended March 31, 2021 2020 Outstanding options to purchase common stock 3,453,133 1,659,029 Outstanding warrants to purchase common stock — 10,901 Total potentially dilutive shares excluded from loss per share 3,453,133 1,669,930

Certain Balance Sheet Accounts

Certain Balance Sheet Accounts (Tables)	3 Months Ended
Certain Balance Sheet Accounts (Tables)	Mar. 31, 2021
Certain Balance Sheet Accounts
Schedule of accounts receivable	March 31, December 31, 2021 2020 (In thousands) Trade receivables, net $ 24,576 $ 3,771 Sublease and other receivables 250 70 Total accounts receivables, net $ 24,826 $ 3,841
Schedule of Inventory, Current	March 31, December 31, 2021 2020 (In thousands) Raw materials $ 242 $ 109 Work-in-progress 405 462 Finished goods 544 784 Total inventory $ 1,191 $ 1,355
Property, Plant and Equipment	March 31, December 31, 2021 2020 (In thousands) Finance leases $ 5,690 $ 5,690 Laboratory equipment 2,910 2,898 Computer equipment 985 985 Office equipment and furniture 625 625 Total cost 10,210 10,198 Less accumulated depreciation and amortization (8,037) (7,647) Total property and equipment, net $ 2,173 $ 2,551
Accrued Expenses	March 31, December 31, 2021 2020 (In thousands) Sales rebates, fees and discounts $ 6,871 $ 3,326 Contract research and development 6,146 7,952 Consulting and professional fees 5,002 5,393 Interest payable 3,703 5,205 Employee compensation 3,665 3,948 Clinical trials 2,007 2,121 Other accrued expenses 738 810 Total accrued expenses $ 28,132 $ 28,755

Fair-Value Measurements (Tables

Fair-Value Measurements (Tables)	3 Months Ended
Fair-Value Measurements (Tables)	Mar. 31, 2021
Fair-Value Measurements
Financial Assets and Liabilities Measured at Fair Value on Recurring Basis	March 31, 2021 Level 1 Level 2 Level 3 Total (In thousands) Assets: Money-market funds classified as non-current restricted investments $ 1,054 $ — $ — $ 1,054 Money-market funds classified as short-term investments 91,455 — — 91,455 Total $ 92,509 $ — $ — $ 92,509 December 31, 2020 Level 1 Level 2 Level 3 Total (In thousands) Assets: Money-market funds classified as non-current restricted investments $ 1,055 $ — $ — $ 1,055 Money-market funds classified as short-term investments 124,452 — — 124,452 Total $ 125,507 $ — $ — $ 125,507

Unsecured Convertible Senior _2

Unsecured Convertible Senior Notes (Tables)	3 Months Ended
Unsecured Convertible Senior Notes (Tables)	Mar. 31, 2021
Debt Instrument [Line Items]
Summary of unsecured convertible senior notes outstanding	Balance as of March 31, 2021 2023 Notes 2026 Notes Total (In thousands) Principal amount $ 95,000 $ 225,030 $ 320,030 Unamortized debt issuance costs (1,749) (6,122) (7,871) Total unsecured convertible senior notes, net $ 93,251 $ 218,908 $ 312,159 Fair value of outstanding unsecured convertible senior notes (1) $ 114,119 $ 279,431 Amount by which the unsecured convertible senior notes if-converted value exceeds their principal amount $ 19,119 $ 54,401 Balance as of December 31, 2020 2023 Notes 2026 Notes Total (In thousands) Principal amount $ 95,000 $ 225,030 $ 320,030 Unamortized discount (17,101) (60,544) (77,645) Unamortized issuance costs attributable to liability component (1,481) (4,616) (6,097) Total unsecured convertible senior notes, net $ 76,418 $ 159,870 $ 236,288 Fair value of outstanding unsecured convertible senior notes (1) $ 101,769 $ 246,779 Amount by which the unsecured convertible senior notes if-converted value exceeds their principal amount $ 6,769 $ 21,749 Equity component $ 25,854 $ 63,544 Unamortized issuance costs (837) (1,916) Net carrying amount of equity component (2) $ 25,017 $ 61,628 (1) The fair value is classified as Level 3 due to the limited trading activity for the unsecured convertible senior notes. (2) Included in the Condensed Consolidated Balance Sheet within additional paid-in capital at December 31, 2020. Upon early adoption of ASU 2020-06 on January 1, 2021, amounts were reclassified to unsecured convertible senior notes, net.
Schedule of future minimum payments of debt	(In thousands) 2021 $ — 2022 — 2023 95,000 2024 — 2025 — 2026 225,030 Total future minimum payments under the convertible senior notes $ 320,030
2023 Unsecured Convertible Senior Notes
Debt Instrument [Line Items]
Schedule of total interest expense recognized	Three Months Ended March 31, 2021 2020 (In thousands) Contractual interest expense $ 1,484 $ 3,281 Amortization of debt issuance costs 150 202 Amortization of debt discount — 2,331 Total $ 1,634 $ 5,814
2026 Unsecured Convertible Senior Notes
Debt Instrument [Line Items]
Schedule of total interest expense recognized	Three Months Ended March 31, 2021 (In thousands) Contractual interest expense $ 2,954 Amortization of debt issuance costs 246 Total $ 3,200

Leases (Tables)

Leases (Tables)	3 Months Ended
Leases (Tables)	Mar. 31, 2021
Leases
Schedule of lease costs	Three Months Ended 2021 2020 (In thousands) Lease cost Operating lease cost $ 1,583 $ 1,509 Finance lease cost: Amortization 323 357 Interest 63 89 Variable lease cost 813 542 Sublease income (418) (293) Net lease cost $ 2,364 $ 2,204
Schedule of supplemental cash flow information	Three Months Ended 2021 2020 (In thousands) Cash payments for operating leases $ 3,381 $ 2,136 Cash payments for financing leases $ 354 $ 402

Shareholders' Deficit (Tables)

Shareholders' Deficit (Tables)	3 Months Ended
Shareholders' Deficit (Tables)	Mar. 31, 2021
Shareholders' Deficit
Schedule of Shareholders' Deficit	Additional Common Paid-In Accumulated Stock Capital Deficit Total (In thousands) Balance January 1, 2021 $ 616 $ 751,304 $ (872,672) $ (120,752) Exercise of stock options 6 6,327 — 6,333 At the market offering costs — (241) — (241) Cumulative effect of adopting ASU 2020-06 — (70,779) (4,697) (75,476) Stock-based compensation expense — 3,271 — 3,271 Net loss — — (35,090) (35,090) Balance March 31, 2021 $ 622 $ 689,882 $ (912,459) $ (221,955) Additional Common Paid-In Accumulated Stock Capital Deficit Total (In thousands) Balance January 1, 2020 $ 542 $ 625,048 $ (734,611) $ (109,021) Exercise of stock options 3 2,709 — 2,712 Stock-based compensation expense — 3,476 — 3,476 Net loss — — (29,031) (29,031) Balance March 31, 2020 $ 545 $ 631,233 $ (763,642) $ (131,864)

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	3 Months Ended
Stock-Based Compensation (Tables)	Mar. 31, 2021
Stock-Based Compensation.
Stock-Based Compensation Expense	Three Months Ended March 31, 2021 2020 (In thousands) Research and development $ 1,480 $ 1,447 Selling, general and administrative 1,791 2,029 Total $ 3,271 $ 3,476
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions	Three Months Ended March 31, 2021 Estimated weighted-average fair value $ 13.15 Weighted-average assumptions: Expected volatility 81 % Expected life, in years 6.1 Risk-free interest rate 0.71 % Expected dividend yield — %
Schedule of Stock Option Activity	Weighted- Average Aggregate Exercise Remaining Intrinsic Options Price per Contractual Life Value Outstanding Share (In years) (In thousands) Balance at December 31, 2020 11,938,528 $ 11.92 Granted 244,500 19.09 Exercised (555,880) 11.39 Canceled (69,603) 15.26 Balance at March 31, 2021 11,557,545 $ 12.08 5.9 $ 67,933 Vested and expected to vest at March 31, 2021 11,223,195 $ 12.03 5.8 $ 66,493 Exercisable at March 31, 2021 8,591,292 $ 11.55 4.9 $ 54,999

Description of Business (Detail

Description of Business (Details) $ in Millions	3 Months Ended
Description of Business (Details) $ in Millions	Mar. 31, 2021USD ($)segment	Mar. 01, 2021USD ($)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Number of operating segments \| segment	1
At The Market (ATM) Program
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Maximum aggregate offering price		$ 150
Line of Credit Agreement
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Borrowing option - percentage of eligible accounts receivable	85.00%
Maximum borrowing capacity	$ 50

Net Loss Per Share (Details)

Net Loss Per Share (Details) - shares	3 Months Ended
Net Loss Per Share (Details) - shares	Mar. 31, 2021	Mar. 31, 2020
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Outstanding dilutive securities not included in diluted loss per share calculation	3,453,133	1,669,930
Outstanding options to purchase common stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Outstanding dilutive securities not included in diluted loss per share calculation	3,453,133	1,659,029
Outstanding warrants to purchase common stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Outstanding dilutive securities not included in diluted loss per share calculation		10,901

Certain Balance Sheet Account_2

Certain Balance Sheet Accounts - Accounts Receivable, Net (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Certain Balance Sheet Accounts
Trade receivables, net	$ 24,576	$ 3,771
Sublease and other receivables	250	70
Total accounts receivables, net	24,826	3,841
Chargeback and product return allowances	$ 1,500	$ 1,200

Certain Balance Sheet Account_3

Certain Balance Sheet Accounts - Inventory (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Inventory Disclosure [Abstract]
Raw materials	$ 242	$ 109
Work-in-progress	405	462
Finished goods	544	784
Total inventory	$ 1,191	$ 1,355

Certain Balance Sheet Account_4

Certain Balance Sheet Accounts - Property and Equipment, Net (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Property, Plant and Equipment [Line Items]
Total cost	$ 10,210		$ 10,198
Less accumulated depreciation and amortization	(8,037)		(7,647)
Total property and equipment, net	2,173		2,551
Depreciation and amortization	390	$ 402
Finance leases
Property, Plant and Equipment [Line Items]
Total cost	5,690		5,690
Laboratory equipment
Property, Plant and Equipment [Line Items]
Total cost	2,910		2,898
Computer equipment
Property, Plant and Equipment [Line Items]
Total cost	985		985
Office equipment and furniture
Property, Plant and Equipment [Line Items]
Total cost	$ 625		$ 625

Certain Balance Sheet Account_5

Certain Balance Sheet Accounts - Accrued Expenses (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Accrued expenses
Sales rebates, fees and discounts	$ 6,871	$ 3,326
Contract research and development	6,146	7,952
Consulting and professional fees	5,002	5,393
Interest payable	3,703	5,205
Employee compensation	3,665	3,948
Clinical trials	2,007	2,121
Other accrued expenses	738	810
Total accrued expenses	$ 28,132	$ 28,755

Fair-Value Measurements - Recur

Fair-Value Measurements - Recurring Basis (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Money-market funds classified as non-current restricted investments	$ 1,054	$ 1,055
Money-market funds classified as short-term investments	91,455	124,452
Fair Value, Measurements, Recurring \| Money Market Funds
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Money-market funds classified as non-current restricted investments	1,054	1,055
Money-market funds classified as short-term investments	91,455	124,452
Total	92,509	125,507
Fair Value, Measurements, Recurring \| Level 1 \| Money Market Funds
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Money-market funds classified as non-current restricted investments	1,054	1,055
Money-market funds classified as short-term investments	91,455	124,452
Total	$ 92,509	$ 125,507

Fair-Value Measurements - Narra

Fair-Value Measurements - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2021	Dec. 31, 2020
Fair-Value Measurements
Cash and cash equivalents	$ 9,028	$ 10,501
Unrealized gain (loss) on investments	$ 0	$ 0

Line of Credit (Details)

Line of Credit (Details) - USD ($) $ in Thousands	3 Months Ended
Line of Credit (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Debt Instrument
Outstanding amount	$ 312,159	$ 236,288
Line of Credit Agreement
Debt Instrument
Maximum borrowing capacity	$ 50,000
Borrowing option - percentage of eligible accounts receivable	85.00%
Outstanding amount	$ 0	$ 0
Prime Rate \| Line of Credit Agreement
Debt Instrument
Basis for variable rate	5.50%

Unsecured Convertible Senior _3

Unsecured Convertible Senior Notes - Unsecured convertible senior notes outstanding (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2021	Dec. 31, 2020	Jan. 01, 2021
Debt Instrument [Line Items]
Principal amount	$ 320,030	$ 320,030
Unamortized discount	(7,871)	(77,645)
Unamortized issuance costs attributable to liability component		(6,097)
Total unsecured convertible senior notes, net	312,159	236,288
Accumulated deficit	(912,459)	(872,672)
2023 Unsecured Convertible Senior Notes
Debt Instrument [Line Items]
Principal amount	95,000	95,000
Unamortized discount	(1,749)	(17,101)
Unamortized issuance costs attributable to liability component		(1,481)
Total unsecured convertible senior notes, net	93,251	76,418
Fair value of outstanding unsecured convertible senior notes	114,119	101,769
Amount by which the unsecured convertible senior notes if-converted value exceeds their principal amount	19,119	6,769
Equity component		25,854
Unamortized issuance costs		(837)
Net carrying amount of equity component		25,017
2026 Unsecured Convertible Senior Notes
Debt Instrument [Line Items]
Principal amount	225,030	225,030
Unamortized discount	(6,122)	(60,544)
Unamortized issuance costs attributable to liability component		(4,616)
Total unsecured convertible senior notes, net	218,908	159,870
Fair value of outstanding unsecured convertible senior notes	279,431	246,779
Amount by which the unsecured convertible senior notes if-converted value exceeds their principal amount	$ 54,401	21,749
Equity component		63,544
Unamortized issuance costs		(1,916)
Net carrying amount of equity component		$ 61,628
Cumulative effect adjustment \| Accounting Standards Update 2020-06
Debt Instrument [Line Items]
Accumulated deficit			$ (75,500)
Convertible Debt			$ 75,500

Unsecured Convertible Senior _4

Unsecured Convertible Senior Notes - 2023 Unsecured Convertible Senior Notes (Details) - 2023 Unsecured Convertible Senior Notes $ / shares in Units, shares in Millions	Aug. 14, 2020USD ($)	Nov. 15, 2018USD ($)$ / shares	Mar. 31, 2021shares
Debt Instrument [Line Items]
Principal amount		$ 210,000,000
Interest rate (as a percent)		6.25%
Conversion rate		0.0520183
Value used in calculation of conversion rate		$ 1,000
Conversion price \| $ / shares		$ 19.22
Proceeds from 2026 debt issuance used to repurchase 2023 Notes	$ 125,600,000
Principal amount of debt repurchased	$ 115,000,000
Number of shares outstanding on the 2023 Capped Call \| shares			4.9
Minimum
Debt Instrument [Line Items]
Conversion price \| $ / shares		19.22
Maximum
Debt Instrument [Line Items]
Conversion price \| $ / shares		$ 28.84

Unsecured Convertible Senior _5

Unsecured Convertible Senior Notes - Interest expense recognized (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
2023 Unsecured Convertible Senior Notes
Interest Expense, Debt [Abstract]
Contractual interest expense	$ 1,484	$ 3,281
Amortization of debt issuance costs	150	202
Amortization of debt discount		2,331
Total	1,634	$ 5,814
2026 Unsecured Convertible Senior Notes
Interest Expense, Debt [Abstract]
Contractual interest expense	2,954
Amortization of debt issuance costs	246
Total	$ 3,200

Unsecured Convertible Senior _6

Unsecured Convertible Senior Notes - 2026 Unsecured Convertible Senior Notes (Details) - 2026 Unsecured Convertible Senior Notes $ / shares in Units, shares in Millions	Aug. 14, 2020USD ($)D$ / sharesshares
Debt Instrument [Line Items]
Interest rate (as a percent)	5.25%
Conversion rate	0.0540906
Value used in calculation of conversion rate \| $	$ 1,000
Conversion price	$ 18.4875
Shares upon conversion \| shares	12.2
Debt Conversion, After September 30, 2020
Debt Instrument [Line Items]
Stock price trigger (as a percent)	130.00%
Trading days, number \| D	20
Consecutive trading days, period \| D	30
Consecutive business days, period	5 days
Consecutive trading-day period	5 days
Maximum product of the closing sale price of shares of the Company's common stock and the applicable conversion rate for such trading day (as a percent)	98.00%
Minimum
Debt Instrument [Line Items]
Conversion price	$ 18.49
Maximum
Debt Instrument [Line Items]
Conversion price	$ 26.10

Unsecured Convertible Senior _7

Unsecured Convertible Senior Notes - Future minimum payments (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Long-term Debt, Fiscal Year Maturity [Abstract]
Total future minimum payments under the convertible senior notes	$ 320,030	$ 320,030
2023 and 2026 Convertible Senior Notes
Long-term Debt, Fiscal Year Maturity [Abstract]
2023	95,000
2026	225,030
Total future minimum payments under the convertible senior notes	$ 320,030

Leases (Details)

Leases (Details) $ in Thousands	3 Months Ended
Leases (Details) $ in Thousands	Mar. 31, 2021USD ($)item	Mar. 31, 2020USD ($)
Leases
Number of options to extend lease term \| item	2
Expected lease term	5 years
Lease cost
Operating lease cost	$ 1,583	$ 1,509
Amortization	323	357
Interest	63	89
Variable lease cost	813	542
Sublease income	(418)	(293)
Net lease cost	2,364	2,204
Operating cash flows used for operating leases	3,381	2,136
Operating cash flows used for finance leases	$ 354	$ 402

Shareholders' Deficit - Narrati

Shareholders' Deficit - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 01, 2021
Class of Warrant or Right [Line Items]
Issuance of common stock upon exercise of stock options (in shares)	555,880
Cashless exercise of warrants	43,115
Warrants outstanding	200,000
Warrant exercise price (in USD per share)	$ 23
Outstanding warrants to purchase common stock
Class of Warrant or Right [Line Items]
Issuance of common stock upon exercise of stock options (in shares)	24,901
At The Market (ATM) Program
Class of Warrant or Right [Line Items]
Maximum aggregate offering price		$ 150

Shareholders' Deficit- Equity T

Shareholders' Deficit- Equity Table (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Class of Stock [Line Items]
Balance	$ (120,752)	$ (109,021)
Exercise of stock options	6,333	2,712
At the market offering costs	(241)
Stock-based compensation expense	3,271	3,476
Net loss	(35,090)	(29,031)
Balance	(221,955)	(131,864)
Cumulative effect adjustment
Class of Stock [Line Items]
Balance	(75,476)
Common Stock
Class of Stock [Line Items]
Balance	616	542
Exercise of stock options	6	3
Balance	622	545
Additional Paid-in Capital
Class of Stock [Line Items]
Balance	751,304	625,048
Exercise of stock options	6,327	2,709
At the market offering costs	(241)
Stock-based compensation expense	3,271	3,476
Balance	689,882	631,233
Additional Paid-in Capital \| Cumulative effect adjustment
Class of Stock [Line Items]
Balance	(70,779)
Accumulated Deficit
Class of Stock [Line Items]
Balance	(872,672)	(734,611)
Net loss	(35,090)	(29,031)
Balance	(912,459)	$ (763,642)
Accumulated Deficit \| Cumulative effect adjustment
Class of Stock [Line Items]
Balance	$ (4,697)

Stock-Based Compensation - Stoc

Stock-Based Compensation - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 3,271	$ 3,476
Research and development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	1,480	1,447
Selling, general and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 1,791	$ 2,029

Stock-Based Compensation - Fair

Stock-Based Compensation - Fair Value of Employee Option Grant Estimated on Date of Grant (Details) - Outstanding options to purchase common stock	3 Months Ended
	Mar. 31, 2021$ / shares
Share-based Compensation Arrangement by Share-based Payment Award
Estimated weighted-average fair value (USD per share)	$ 13.15
Weighted Average
Weighted-average assumptions
Expected volatility	81.00%
Expected life, in years	6 years 1 month 6 days
Risk-free interest rate	0.71%
Expected dividend yield	0.00%

Stock-Based Compensation - Summ

Stock-Based Compensation - Summary of Stock Option Activity and Related Information (Details) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2021USD ($)$ / sharesshares
Options Outstanding
Beginning balance (shares) \| shares	11,938,528
Granted (shares) \| shares	244,500
Exercised (shares) \| shares	(555,880)
Canceled (shares) \| shares	(69,603)
Ending balance (shares) \| shares	11,557,545
Vested and expected to vest (shares) \| shares	11,223,195
Exercisable (shares) \| shares	8,591,292
Weighted-Average Exercise Price per Share
Beginning balance (USD per share) \| $ / shares	$ 11.92
Granted (USD per share) \| $ / shares	19.09
Exercised (USD per share) \| $ / shares	11.39
Canceled (USD per share) \| $ / shares	15.26
Ending balance (USD per share) \| $ / shares	12.08
Vested and expected to vest (USD per share) \| $ / shares	12.03
Exercisable (USD per share) \| $ / shares	$ 11.55
Weighted- Average Remaining Contractual Life
Balance (in years)	5 years 10 months 24 days
Vested and expected to vest (in years)	5 years 9 months 18 days
Exercisable (in years)	4 years 10 months 24 days
Aggregate Intrinsic Value
Balance \| $	$ 67,933
Vested and expected to vest \| $	66,493
Exercisable \| $	$ 54,999

Stock-Based Compensation - Narr

Stock-Based Compensation - Narrative (Details) - Outstanding options to purchase common stock shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2021USD ($)shares
Share-based Compensation Arrangement by Share-based Payment Award
Unvested options outstanding (shares)	3
Period for recognition	2 years 6 months
Shares available for future grants (shares)	3.9
Unrecognized compensation expense \| $	$ 22.7

Significant Accounting Polici_3

Significant Accounting Policies (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Jan. 01, 2021	Dec. 31, 2020
Accumulated deficit	$ (912,459)		$ (872,672)
Accounting Standards Update 2020-06 \| Cumulative effect adjustment
Accumulated deficit		$ (75,500)
Convertible Debt		$ 75,500