Pacific Biosciences of California (PACB) 10-Q 12 Nov 13 2013 Q3 Quarterly report Financial data

Document_And_Entity_Informatio

Document And Entity Information	9 Months Ended
	Sep. 30, 2013	Oct. 31, 2013
Document And Entity Information [Abstract]	'	'
Document Type	'10-Q	'
Amendment Flag	'false	'
Document Period End Date	30-Sep-13	'
Document Fiscal Year Focus	'2013	'
Document Fiscal Period Focus	'Q3	'
Trading Symbol	'PACB	'
Entity Registrant Name	'PACIFIC BIOSCIENCES OF CALIFORNIA, INC.	'
Entity Central Index Key	'0001299130	'
Current Fiscal Year End Date	'--12-31	'
Entity Filer Category	'Accelerated Filer	'
Entity Common Stock, Shares Outstanding	'	66,152,099

Condensed_Consolidated_Balance

Condensed Consolidated Balance Sheets (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Current assets	'	'
Cash and cash equivalents	$64,767	$46,540
Investments	62,169	54,040
Accounts receivable	3,814	2,822
Inventory, net	9,819	9,592
Prepaid expenses and other current assets	1,194	2,006
Total current assets	141,763	115,000
Property and equipment, net	10,544	14,329
Other long-term assets	493	354
Total assets	152,800	129,683
Current liabilities	'	'
Accounts payable	3,413	2,988
Accrued expenses and other current liabilities	8,506	8,204
Deferred revenue, current	10,359	3,378
Facility financing obligation, current	201	173
Total current liabilities	22,479	14,743
Deferred revenue, non-current	28,875	800
Deferred rent and other long-term liabilities	1,378	2,145
Notes payable	13,173	'
Financing derivative	894	'
Facility financing obligation, non-current	2,458	2,613
Total liabilities	69,257	20,301
Commitments and contingencies (Note 6)	'	'
Stockholders' equity	'	'
Convertible Preferred Stock, $0.001 par value: Authorized 50,000 shares; No shares issued or outstanding	'	'
Common Stock and additional paid-in-capital, $0.001 par value: Authorized 1,000,000 shares; Issued and outstanding 66,143 shares at September 30, 2013 and 56,170 shares at December 31, 2012	681,614	645,372
Accumulated other comprehensive income	11	30
Accumulated deficit	-598,082	-536,020
Total stockholders' equity	83,543	109,382
Total liabilities and stockholders' equity	$152,800	$129,683

Condensed_Consolidated_Balance1

Condensed Consolidated Balance Sheets (Parenthetical) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Condensed Consolidated Balance Sheets [Abstract]	'	'
Convertible Preferred Stock, par value	$0.00	$0.00
Convertible Preferred Stock, shares authorized	50,000,000	50,000,000
Convertible Preferred Stock, shares issued	0	0
Convertible Preferred Stock, shares outstanding	0	0
Common Stock, par value	$0.00	$0.00
Common Stock, shares authorized	1,000,000,000	1,000,000,000
Common Stock, shares issued	66,143,000	56,170,000
Common Stock, shares outstanding	66,143,000	56,170,000

Condensed_Consolidated_Stateme

Condensed Consolidated Statements Of Operations And Comprehensive Loss (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Revenue:	'	'	'	'
Product revenue	$5,814	$1,268	$14,248	$15,810
Service and other revenue	1,607	1,283	4,528	3,620
Grant revenue	'	225	272	675
Total revenue	7,421	2,776	19,048	20,105
Cost of Revenue:	'	'	'	'
Cost of product revenue	4,616	960	11,138	14,949
Cost of service and other revenue	1,564	1,626	4,680	4,843
Total cost of revenue	6,180	2,586	15,818	19,792
Gross profit	1,241	190	3,230	313
Operating Expense:	'	'	'	'
Research and development	10,419	12,626	34,084	35,971
Sales, general and administrative	10,757	10,143	29,685	36,986
Total operating expense	21,176	22,769	63,769	72,957
Operating loss	-19,935	-22,579	-60,539	-72,644
Interest expense	-686	-68	-1,785	-207
Other income (expense), net	134	-82	262	55
Net loss	-20,487	-22,729	-62,062	-72,796
Other comprehensive income (loss):	'	'	'	'
Unrealized gain (loss) on investments	13	-9	-19	9
Comprehensive loss	($20,474)	($22,738)	($62,081)	($72,787)
Net loss per share:	'	'	'	'
Basic and diluted net loss per share	($0.31)	($0.41)	($1.01)	($1.31)
Shares used in computing basic and diluted net loss per share	65,523	55,877	61,636	55,582

Condensed_Consolidated_Stateme1

Condensed Consolidated Statements Of Cash Flows (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012
Cash flows from operating activities	'	'
Net loss	($62,062)	($72,796)
Adjustments to reconcile net loss to net cash used in operating activities	'	'
Depreciation	4,238	5,041
Amortization of debt discount and financing costs	418	'
Stock-based compensation	7,361	7,158
Other items	-73	270
Changes in assets and liabilities	'	'
Accounts receivable	-992	4,025
Inventory	171	4,151
Prepaid expenses and other assets	791	734
Accounts payable	425	-1,845
Accrued expenses and other current liabilities	302	-3,249
Deferred revenue	35,056	-1,297
Other long-term liabilities	-894	-791
Net cash used in operating activities	-15,259	-58,599
Cash flows from investing activities	'	'
Purchase of property and equipment	-807	-1,263
Purchase of investments	-141,549	-69,436
Sales of investments	'	7,896
Maturities of investments	133,391	92,392
Net cash provided by (used in) investing activities	-8,965	29,589
Cash flows from financing activities	'	'
Proceeds from issuance of common stock, net of issuance costs	22,685	2,703
Proceeds from issuance of debt facility, net of issuance costs	19,766	'
Net cash provided by financing activities	42,451	2,703
Net increase (decrease) in cash and cash equivalents	18,227	-26,307
Cash and cash equivalents at beginning of period	46,540	58,865
Cash and cash equivalents at end of period	$64,767	$32,558

Overview

Overview	9 Months Ended
	Sep. 30, 2013
Overview [Abstract]	'
Overview	'
	NOTE 1. OVERVIEW
	Pacific Biosciences of California, Inc., (“Pacific Biosciences”, the “Company”, “we”, “us”) has commercialized the PacBio RS High Resolution Genetic Analyzer and the PacBio RS II Sequencing System to help scientists solve genetically complex problems.  Based on our novel Single Molecule, Real-Time (SMRT) technology, our products enable scientists to increase their understanding of biological systems through targeted sequencing and insight into genetic variations.
	The names “Pacific Biosciences,” “PacBio,” “SMRT,” “SMRTbell” and our logo are our trademarks.

Summary_Of_Significant_Account

Summary Of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2013
Summary Of Significant Accounting Policies [Abstract]	'
Summary Of Significant Accounting Policies	'
	NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
	Basis of Presentation
	In the opinion of management, the accompanying unaudited Condensed Consolidated Financial Statements (“financial statements”) of Pacific Biosciences of California, Inc. and its wholly-owned subsidiaries have been prepared on a consistent basis with the December 31, 2012 audited Consolidated Financial Statements and include all adjustments, consisting of only normal recurring adjustments, necessary to fairly state the information set forth herein. Certain prior year amounts in the financial statements and notes thereto have been reclassified to conform to the current year’s presentation. The financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) and, therefore, omit certain information and footnote disclosures necessary to present the statements in accordance with U.S. generally accepted accounting principles (“GAAP”). These financial statements should be read in conjunction with the audited Consolidated Financial Statements and Notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2012, which was filed with the SEC on March 15, 2013. The results of operations for the first nine months of fiscal 2013 are not necessarily indicative of the results to be expected for the entire fiscal year or any future periods.
	Use of Estimates
	The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reporting periods. Our estimates include, but are not limited to, useful lives assigned to long-lived assets, assumptions used to compute stock-based compensation expense and valuing warrants, value the financing derivative and long-term notes, value and recognize revenue elements, determine delivery periods for revenue recognition, and to compute provisions for income taxes, inventory, and contingencies. Actual results could differ from our estimates, and such differences could be material to our financial position and results of operations.
	Fair Value of Financial Instruments
	Assets and liabilities measured at fair value on a recurring basis
	The following table sets forth the fair value of our financial assets and liabilities that were measured on a recurring basis as of September 30, 2013 and December 31, 2012, respectively:
	(in thousands)	September 30, 2013									December 31, 2012
		Level 1			Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
	Assets
	Cash and cash equivalents:
	Cash and money market funds	$	45,571		$	—	$	—	$	45,571	$	11,847	$	—	$	—	$	11,847
	Commercial paper		—			19,196		—		19,196		—		34,693		—		34,693
	Total cash and cash equivalents		45,571			19,196		—		64,767		11,847		34,693		—		46,540
	Investments:
	Commercial paper		—			53,697		—		53,697		—		28,866		—		28,866
	Corporate debt securities		—			1,638		—		1,638		—		13,203		—		13,203
	Asset backed securities		—			6,834		—		6,834		—		955		—		955
	Certificates of deposits		—			—		—		—		—		2,008		—		2,008
	U.S. government and agency securities		—			—		—		—		—		9,008		—		9,008
	Total investments		—			62,169		—		62,169		—		54,040		—		54,040
	Total assets measured at fair value	$	45,571		$	81,365	$	—	$	126,936	$	11,847	$	88,733	$	—	$	100,580
	Liabilities
	Financing derivative	$	—		$	—	$	894	$	894	$	—	$	—	$	—	$	—
	Total liabilities measured at fair value	$	—		$	—	$	894	$	894	$	—	$	—	$	—	$	—
	All of our cash deposits and money market funds are classified within Level 1 of the fair value hierarchy because they are valued using bank balances or quoted market prices. Our investments are classified as Level 2 instruments based on market pricing and other observable inputs. None of our investments are classified within Level 3 of the fair value hierarchy.
	During the nine-month periods ended September 30, 2013 and 2012, realized gains and losses on the sale of investments were immaterial and there were no material impairments of our investments.
	The fair value of the Financing Derivative (as defined in Note 7. Debt Facility) liability resulting from the debt facility we entered into during the first quarter of 2013 was determined using Level 3 inputs, or significant unobservable inputs.  Refer to Note 7. Debt Facility for a detailed description and valuation approach.  The following table provides the changes in the fair value of the Financial Derivative during the nine-month period ended September 30, 2013 (in thousands):
	Financial Derivative	Amount
	Balance as of December 31, 2012	$	—
	Value at issuance		967
	Gain on change in fair value of Financing Derivative		-73
	Balance as of September 30, 2013	$	894
	For the nine-month period ended September 30, 2013 there were no transfers between Level 1, Level 2, or Level 3 assets or liabilities reported at fair value on a recurring basis and valuation techniques did not change compared to the prior quarter.
	Financial assets and liabilities not measured at fair value on a recurring basis
	The carrying amount of our accounts receivable, prepaid expenses, other current assets, accounts payable, accrued expenses and other current liabilities, are determined to approximate fair value due to their short maturities. The carrying value of our facility financing obligation approximates fair value due to the time to maturity and prevailing market rates.
	We determined the fair value of the Notes (as defined in Note 7. Debt Facility) from the debt facility we entered into during the first quarter of 2013 using Level 3 inputs, or significant unobservable inputs.  The value of the Notes was determined by comparing the difference between the fair value of the Notes with and without the Financing Derivative by calculating the respective present values from future cash flows using a 20.8% weighted average market yield. Refer to Note 7. Debt Facility for additional details regarding the Notes. The estimated fair value and carrying value of the Notes are as follows (in thousands):
		September 30, 2013					December 31, 2012
		Fair Value			Carrying Value		Fair Value		Carrying Value
	Long-term notes payable	$	13,686		$	13,173	$	—	$	—
	Net Loss per Share
	The following table presents the computation of our basic and diluted net loss per share (in thousands, except per share amounts):
		Three-Months Ended					Nine-Months Ended
		September 30,					September 30,
		2013			2012		2013		2012
	Net loss per share
	Numerator:
	Net loss	$	-20,487		$	-22,729	$	-62,062	$	-72,796
	Denominator:
	Weighted average shares used in computation of basic and diluted net loss per share		65,523			55,877		61,636		55,582
	Basic and diluted net loss per share	$	-0.31		$	-0.41	$	-1.01	$	-1.31
	The following were excluded from the computation of our diluted net loss per share for the periods presented because including them would have had an anti-dilutive effect:
		As of September 30,
	(in thousands)	2013		2012
	Options outstanding	13,351		10,973
	Warrants to purchase common stock	5,504		10

Agreement_With_Roche

Agreement With Roche	9 Months Ended
	Sep. 30, 2013
Agreement With Roche [Abstract]	'
Agreement With Roche	'
	NOTE 3. AGREEMENT WITH ROCHE
	On September 24, 2013, we entered into a Development, Commercialization and License Agreement (the “Roche Agreement”) with F. Hoffman-La Roche Ltd (“Roche”), pursuant to which we: (i) will develop diagnostic products for clinical use including sequencing systems and consumables based on our proprietary SMRT technology; (ii) granted to Roche an exclusive right to commercialize, and an exclusive license to sell, the developed diagnostic products for clinical use; and (iii) will manufacture and supply certain products intended for clinical use as the exclusive supplier to Roche. We received a non-refundable up-front payment of $35.0 million and may receive up to an additional $40.0 million based upon the achievement of development milestones. The Roche Agreement has an initial term of thirteen years and provisions allowing Roche 5-year renewals.
	The Roche Agreement contains multiple elements, and the deliverables under the Roche Agreement consist of intellectual property licenses, research and development services, and participation on the joint steering committee (as defined in the Roche Agreement) with Roche. These deliverables are non-contingent in nature. We evaluated whether there is standalone value for each of the non-contingent deliverables and allocated the upfront payment of $35.0 million to each unit of accounting based on our best estimates of selling prices pursuant to Accounting Standard Codification (ASC) Topic 605-25, Revenue Recognition — Multiple Element Arrangements (ASC 605-25). We consider the intellectual property licenses and research and development services to be a combined unit of accounting. The intellectual property licenses do not have standalone value since the diagnostic products to which the license relates are in a very early stage of development. In addition, we believe that the joint steering committee obligation has standalone value and thus, is a separate unit of accounting.
	The amount allocated to the intellectual property licenses and research and development services will be recognized as revenue based on the proportional performance method over the expected development period, and the amount allocated to the deliverable of our participation on the joint steering committee will be recognized as revenue based on the proportional performance method over the term of the Roche Agreement, which represents the estimated obligation period of the joint steering committee. Revenue will be recognized on a straight-line basis over the delivery period to the extent that the pattern of performance is not expected to significantly differ from recognition using a proportional performance model. As of September 30, 2013, revenue relating to the $35.0 million upfront cash payment was deferred with $6.8 million and $28.2 million allocated to current and long-term deferred revenue, respectively.
	Our process for determining estimates of selling prices involves management’s judgment. Our process considers multiple factors such as estimated headcount, annual research and development budget, estimated length of the research and development period and estimated transfer price on cost, which may vary over time, depending upon the circumstances, and relate to each deliverable. If the estimated obligation period of one or more deliverables should change, the future amortization of the revenue would also change.
	In addition to the non-contingent deliverables above, the Roche Agreement includes contingent deliverables relating to the receipt of additional payments totaling $40.0 million upon the achievement of certain development milestones. Based on ASC Topic 605-28, Revenue Recognition — Milestone Method, we evaluate contingent milestones at inception of the agreement, and recognize consideration that is contingent upon the achievement of a milestone in its entirety as revenue in the period in which the milestone is achieved only if the milestone is considered substantive in its entirety. Milestones are considered substantive if the consideration earned from the achievement of the milestone (i) is consistent with performance required to achieve the milestone or the increase in value to the delivered item, (ii) relates solely to past performance and (iii) is reasonable relative to all of the other deliverables and payments within the arrangement. The milestone payments of $40.0 million will be recognized as revenue in their entirety upon our achievement of each substantive milestone.

Cash_Cash_Equivalents_And_Inve

Cash, Cash Equivalents And Investments	9 Months Ended
	Sep. 30, 2013
Cash, Cash Equivalents And Investments [Abstract]	'
Cash, Cash Equivalents And Investments	'
	NOTE 4. CASH, CASH EQUIVALENTS AND INVESTMENTS
	The following table summarizes our investments as of September 30, 2013 and December 31, 2012 (in thousands):
		As of September 30, 2013
				Gross		Gross
		Amortized		unrealized		unrealized		Fair
		Cost		gains		losses		Value
	Cash and cash equivalents:
	Cash and money market funds	$	45,571	$	—	$	—	$	45,571
	Commercial paper		19,194		2		—		19,196
	Total cash and cash equivalents		64,765		2		—		64,767
	Investments:
	Commercial paper		53,689		9		-1		53,697
	Corporate debt securities		1,637		1		—		1,638
	Asset backed securities		6,834		2		-2		6,834
	Total investments		62,160		12		-3		62,169
	Total cash, cash equivalents and investments	$	126,925	$	14	$	-3	$	126,936
		As of December 31, 2012
				Gross		Gross
		Amortized		unrealized		unrealized		Fair
		Cost		gains		losses		Value
	Cash and cash equivalents:
	Cash and money market funds	$	11,847	$	—	$	—	$	11,847
	Commercial paper		34,690		3		—		34,693
	Total cash and cash equivalents		46,537		3		—		46,540
	Investments:
	Commercial paper		28,859		7		—		28,866
	Corporate debt securities		13,190		13		—		13,203
	Asset backed securities		954		1		—		955
	Certificates of deposit		2,005		3		—		2,008
	U.S. government and agency securities		9,005		3		—		9,008
	Total investments		54,013		27		—		54,040
	Total cash, cash equivalents and investments	$	100,550	$	30	$	—	$	100,580
	The estimated fair value of marketable debt securities (commercial paper, corporate debt securities, asset backed securities and U.S. government and agency securities) as of September 30, 2013, by contractual maturity, are as follows:
	(in thousands)	Fair Value
	Due in one year or less	$	74,530
	Due after one year through 5 years		6,835
	Total investments in debt securities	$	81,365
	Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations without call or prepayment penalties.

Balance_Sheet_Components

Balance Sheet Components	9 Months Ended
	Sep. 30, 2013
Balance Sheet Components [Abstract]	'
Balance Sheet Components	'
	NOTE 5. BALANCE SHEET COMPONENTS
	As of September 30, 2013 and December 31, 2012 our inventory, net, consisted of the following components:
		September 30,		December 31,
	(in thousands)	2013		2012
	Purchased materials, net	$	3,152	$	3,823
	Work in process, net		4,217		3,494
	Finished goods, net		2,450		2,275
	Inventory, net	$	9,819	$	9,592

Contingencies

Contingencies	9 Months Ended
	Sep. 30, 2013
Contingencies [Abstract]	'
Contingencies	'
	NOTE 6. CONTINGENCIES
	We become subject to claims and assessments from time to time in the ordinary course of business. We accrue liabilities for such matters when it is probable that future expenditures will be made and such expenditures can be reasonably estimated.
	During October 2013 the Superior Court of the State of California, County of San Mateo granted final approval of a settlement of four class action lawsuits that had been consolidated as In re Pacific Biosciences of California Inc. S’holder Litig. In addition, the company has reached an agreement in principle to settle the claims of the single individual who opted out of the state court settlement. Upon its becoming final, the settlement of the state court action will have preclusive effect on claims previously asserted in the lawsuit filed in December 2011 in United States District Court for the Northern District of California, captioned Primo v. Pacific Biosciences of California, Inc., et al., Case No. 4:11-CV-06599.  All amounts payable to the plaintiffs and plaintiffs’ counsel had been previously accrued; therefore, no additional amounts were expensed during the period.
	Indemnification
	Pursuant to Delaware law and agreements entered into with each of our directors and officers, we may have obligations, under certain circumstances, to hold harmless and indemnify each of our directors and officers against losses suffered or incurred by the indemnified party in connection with their service to the Company, and judgments, fines, settlements and expenses related to claims arising against such directors and officers to the fullest extent permitted under Delaware law, our bylaws and certificate of incorporation. We also enter and have entered into indemnification agreements with our directors and officers that may require us to indemnify them against liabilities that arise by reason of their status or service as directors or officers, except as prohibited by applicable law.  In addition, we may have obligations to hold harmless and indemnify third parties involved with our fund raising efforts and their respective affiliates, directors, officers, employees, agents or other representatives against any and all losses, claims, damages and liabilities related to claims arising against such parties pursuant to the terms of agreements entered into between such third parties and the Company in connection with such fund raising efforts. To the extent that any such indemnification obligations apply to the lawsuits described above, any associated expenses incurred are included within the related accrued litigation expense amounts.  No additional liability associated with such indemnification obligations has been recorded at September 30, 2013.

Debt_Facility

Debt Facility	9 Months Ended
	Sep. 30, 2013
Debt Facility [Abstract]	'
Debt Facility	'
	NOTE 7. DEBT FACILITY
	On February 5, 2013, we entered into a Facility Agreement (the “Facility Agreement”) with entities affiliated with Deerfield Management Company, L.P. (collectively, “Deerfield”), pursuant to which Deerfield agreed to provide $20.5 million in funding to us (the “Facility”). Under the terms of the Facility Agreement, we issued to Deerfield promissory notes in the aggregate principal amount of $20.5 million (the “Notes”). The Notes bear simple interest at a rate of 8.75% per annum, payable quarterly in arrears commencing on April 1, 2013 and on the first business day of each January, April, July and October thereafter. We received net proceeds of $20.0 million, representing $20.5 million of gross proceeds, less a $500,000 facility fee, before deducting other expenses of the transaction.
	The Facility Agreement has a maximum term of seven years from inception; however it provides for the early repayment of principal in the event we have net sales (as defined in the Facility Agreement) of less than $41.0 million for the twelve-month period from the beginning of the second calendar quarter of 2014 through the first calendar quarter of 2015 (the “Milestone”). If the Milestone is not achieved, at Deerfield’s option, one-third of the original principal balance of the Facility will become due, on each of the third, fourth and fifth anniversaries of the date of the Facility Agreement.
	From and after the date of the Facility Agreement, at the election of the holders of Notes representing a majority of the aggregate principal amount of the outstanding Notes, we shall apply 25% of the net proceeds from any financing that includes an equity component, including without limitation, the sale or issuance of our common stock, options, warrants or other securities convertible or exchangeable for shares of our common stock, to the payment of the Notes. This right is subject to certain exceptions set forth in the Facility Agreement, including that the right will not apply until we have issued 15.0 million shares (as adjusted for any stock split or reverse stock split) of our common stock or rights to acquire our capital stock following the date of the Facility Agreement.
	Deerfield has the option to require us to repay the Notes if we complete a Major Transaction (as defined in the Facility Agreement), including a change of control or a sale of all or substantially all of our assets. Additionally, the principal balance of the Facility may become immediately due and payable upon an Event of Default (as defined in the Facility Agreement), in which case Deerfield would have the right to require us to repay 100% of the principal amount of the loan, plus any accrued and unpaid interest thereon. The Facility Agreement does not provide for a prepayment of the Notes at our option.
	The Facility Agreement also contains various representations and warranties, and affirmative and negative covenants, customary for financings of this type, including restrictions on the ability of the Company and its subsidiaries to incur additional indebtedness or liens on its assets, except as permitted under the Facility Agreement. In addition, we are required to maintain consolidated cash and cash equivalents on the last day of each calendar quarter of not less than $2.0 million. As security for our repayment of our obligations under the Facility Agreement, we granted to Deerfield a security interest in substantially all of our property and interests in property.
	Financing Derivative
	A number of features embedded in the Notes to the Facility Agreement required accounting for as a derivative, including the indemnification of certain withholding taxes and the acceleration of debt upon (a) a qualified financing, (b) an Event of Default, (c) a Major Transaction, and (d) the exercise of the Warrant via offset to debt principal.  These features represent a single derivative (the “Financing Derivative”) that was bifurcated from the debt instrument and accounted for as a liability at fair value, with changes in fair value between reporting periods recorded in other income (expense), net.  The fair value of the Financing Derivative as of February 5, 2013 and September 30, 2013, was $1.0 million and $0.9 million, respectively.
	The value of the Financing Derivative as of February 5, 2013 and September 30, 2013 was determined by comparing the difference between the fair value of the Notes with and without the Financing Derivative by calculating the respective present values from future cash flows using a 20.8%  weighted average market yield.
	Warrants
	In connection with the execution of the Facility Agreement, on February 5, 2013, we issued to Deerfield warrants to purchase an aggregate of 5,500,000 shares of common stock immediately exercisable at an exercise price per share initially equal to $2.63 (the “Warrants”). The number of shares of common stock into which the Warrants are exercisable and the exercise price will be adjusted to reflect any stock splits, payment of stock dividends, recapitalizations, reclassifications or other similar adjustments in the number of outstanding shares of common stock. The exercise price may also be adjusted to reflect certain dividends or other distributions, including distributions of stock or other securities, property or options by way of a dividend, spin off, reclassification, corporate rearrangement, scheme of arrangement or similar transaction.
	The Warrants are classified within additional paid-in capital and reported at their grant date fair value on February 5, 2013 of $6.4 million.  We estimated the fair value of the Warrants using the Black-Scholes option pricing model using the following assumptions:
	Expected term	7 years
	Expected volatility	50%
	Risk-free interest rate	1.4%
	Dividend yield	—
	Notes
	The Notes and Warrants were initially recorded at a value of $14.1 million and $6.4 million, respectively, based upon the relative fair value allocation of the $20.5 million of proceeds.  Additionally, facility fees and other issuance costs were allocated based on the relative fair value of the Facility and the Warrants.  The amount allocated to the Notes was then reduced by the $1.0 million fair value of the Financing Derivative, such that the Financing Derivative was recorded at its absolute fair value.  As a result, the carrying value of the Notes at the inception of the debt was $12.8 million, resulting in an original issue discount of $7.7 million. The discount is being accreted to the $20.5 million face value of the Notes over the expected maturity period of seven years using the effective interest method, with an effective interest rate of 20.6%.

Stockholders_Equity

Stockholders' Equity	9 Months Ended
	Sep. 30, 2013
Stockholders' Equity [Abstract]	'
Stockholders' Equity	'
	NOTE 8. STOCKHOLDERS’ EQUITY
	Stock Offering
	During April 2012, we filed a shelf registration statement on Form S-3 with the SEC pursuant to which we may, from time to time, sell up to an aggregate of $150.0 million of our common stock, warrants or debt securities.  On May 1, 2012, the registration statement was declared effective by the SEC.  On October 5, 2012, we entered into a Controlled Equity Offering Sales Agreement (the “Sales Agreement”) with Cantor Fitzgerald & Co. (“Cantor”), pursuant to which we may offer and sell, from time to time, through Cantor, shares of our common stock having an aggregate offering price of up to $30.0 million through an “at-the-market” offering.  We are not obligated to make any sales of shares under the Sales Agreement.  We pay Cantor a commission equal to 3.0% of the gross proceeds from the sale of shares of our common stock under the Sales Agreement and reimburse up to $50,000 of legal expenses incurred by Cantor.  During the quarter ended September 30, 2013, no shares were sold through our “at-the-market” offering. As of September 30, 2013, we have sold a total of 8.3 million shares of our common stock at an average price of $2.51 through our “at-the-market” offering.

Stock_Option_Plans

Stock Option Plans	9 Months Ended
	Sep. 30, 2013
Stock Option Plans [Abstract]	'
Stock Option Plans	'
	NOTE 9. STOCK OPTION PLANS
	As of September 30, 2013, we had three active equity compensation plans, the 2010 Equity Incentive Plan, or 2010 Plan, the 2010 Outside Director Equity Incentive Plan, or 2010 Director Plan, and the 2010 Employee Stock Purchase Plan, or “ESPP”.
	As of September 30, 2013, no shares of our common stock remain available for issuance under our ESPP. The Employee Stock Purchase Plan provides for an annual increase to the shares available for issuance at the beginning of each calendar year equal to two percent of the common shares then outstanding. Our ESPP permits eligible employees to purchase common stock at a discount through payroll deductions during defined offering periods. Each offering period generally consists of four purchase periods, each purchase period being six months. The price at which the stock is purchased is equal to the lower of 85% of the fair market value of the common stock at the beginning of an offering period or at the end of a purchase period.  Shares issued under the ESPP totaled 1,519,366 and 832,878 shares during the nine-month periods ended September 30, 2013 and 2012, respectively. We estimate the value of the employee stock purchase rights on the grant date using the Black-Scholes option pricing model.
	The following table summarizes stock option activity for all stock option plans (in thousands, except per share amounts):
				Stock Options Outstanding
									Weighted
		Shares available		Number					average
		for grant		of shares		Exercise price			exercise price
	Balances, December 31, 2012	2,872		12,016		$	0.20 – 16.00		$	5.37
	Additional shares reserved	3,370
	Options granted	-2,122		2,122			2.11 – 3.65			2.29
	Options exercised	—		-144			0.20 – 3.30			1.15
	Options canceled	643		-643			1.16 – 16.00			6.19
	Balances, September 30, 2013	4,763		13,351		$	0.20 – 16.00		$	4.88
	Stock-based Compensation
	Total stock-based compensation expense for employee stock options and stock purchases under the ESPP consists of the following (in thousands):
		Three-Month Periods Ended						Nine-Month Periods Ended
		September 30,						September 30,
		2013			2012			2013			2012
	Cost of revenue	$	107		$	84		$	343		$	393
	Research and development		835			1,181			3,077			3,384
	Sales, general and administrative		1,229			1,123			3,941			3,381
	Total stock-based compensation expense	$	2,171		$	2,388		$	7,361		$	7,158
	We estimated the fair value of employee stock options using the Black-Scholes option pricing model. The fair value of employee stock options is being amortized on a straight-line basis over the requisite service period of the awards.
	The fair value of employee stock options was estimated using the following weighted average assumptions:
		Three-Month Periods				Nine-Month Periods
		Ended September 30,				Ended September 30,
	Stock Option	2013		2012		2013		2012
	Expected term in years	6.1		6.1		6.1		6.1
	Expected volatility	65%		60%		65%		65%
	Risk-free interest rate	1.80%		0.90%		1.10%		1.10%
	Dividend yield	—		—		—		—
	The fair value of ESPP was estimated using the following assumptions:
		Three-Month Periods				Nine-Month Periods
		Ended September 30,				Ended September 30,
	ESPP	2013		2012		2013		2012
	Expected term in years	0.5-2.0		0.5-2.0		0.5-2.0		0.5-2.0
	Expected volatility	70%		90%		70%		90%
	Risk-free interest rate	0.1%-0.4%		0.1%-0.2%		0.1%-0.4%		0.1%-0.3%
	Dividend yield	—		—		—		—

Summary_Of_Significant_Account1

Summary Of Significant Accounting Policies (Policy)	9 Months Ended
	Sep. 30, 2013
Summary Of Significant Accounting Policies [Abstract]	'
Basis Of Presentation	'
	Basis of Presentation
	In the opinion of management, the accompanying unaudited Condensed Consolidated Financial Statements (“financial statements”) of Pacific Biosciences of California, Inc. and its wholly-owned subsidiaries have been prepared on a consistent basis with the December 31, 2012 audited Consolidated Financial Statements and include all adjustments, consisting of only normal recurring adjustments, necessary to fairly state the information set forth herein. Certain prior year amounts in the financial statements and notes thereto have been reclassified to conform to the current year’s presentation. The financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) and, therefore, omit certain information and footnote disclosures necessary to present the statements in accordance with U.S. generally accepted accounting principles (“GAAP”). These financial statements should be read in conjunction with the audited Consolidated Financial Statements and Notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2012, which was filed with the SEC on March 15, 2013. The results of operations for the first nine months of fiscal 2013 are not necessarily indicative of the results to be expected for the entire fiscal year or any future periods.
Use Of Estimates	'
	Use of Estimates
	The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reporting periods. Our estimates include, but are not limited to, useful lives assigned to long-lived assets, assumptions used to compute stock-based compensation expense and valuing warrants, value the financing derivative and long-term notes, value and recognize revenue elements, determine delivery periods for revenue recognition, and to compute provisions for income taxes, inventory, and contingencies. Actual results could differ from our estimates, and such differences could be material to our financial position and results of operations.
Fair Value Of Financial Instruments	'
	Fair Value of Financial Instruments
	Assets and liabilities measured at fair value on a recurring basis
	The following table sets forth the fair value of our financial assets and liabilities that were measured on a recurring basis as of September 30, 2013 and December 31, 2012, respectively:
	(in thousands)	September 30, 2013									December 31, 2012
		Level 1			Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
	Assets
	Cash and cash equivalents:
	Cash and money market funds	$	45,571		$	—	$	—	$	45,571	$	11,847	$	—	$	—	$	11,847
	Commercial paper		—			19,196		—		19,196		—		34,693		—		34,693
	Total cash and cash equivalents		45,571			19,196		—		64,767		11,847		34,693		—		46,540
	Investments:
	Commercial paper		—			53,697		—		53,697		—		28,866		—		28,866
	Corporate debt securities		—			1,638		—		1,638		—		13,203		—		13,203
	Asset backed securities		—			6,834		—		6,834		—		955		—		955
	Certificates of deposits		—			—		—		—		—		2,008		—		2,008
	U.S. government and agency securities		—			—		—		—		—		9,008		—		9,008
	Total investments		—			62,169		—		62,169		—		54,040		—		54,040
	Total assets measured at fair value	$	45,571		$	81,365	$	—	$	126,936	$	11,847	$	88,733	$	—	$	100,580
	Liabilities
	Financing derivative	$	—		$	—	$	894	$	894	$	—	$	—	$	—	$	—
	Total liabilities measured at fair value	$	—		$	—	$	894	$	894	$	—	$	—	$	—	$	—
	All of our cash deposits and money market funds are classified within Level 1 of the fair value hierarchy because they are valued using bank balances or quoted market prices. Our investments are classified as Level 2 instruments based on market pricing and other observable inputs. None of our investments are classified within Level 3 of the fair value hierarchy.
	During the nine-month periods ended September 30, 2013 and 2012, realized gains and losses on the sale of investments were immaterial and there were no material impairments of our investments.
	The fair value of the Financing Derivative (as defined in Note 7. Debt Facility) liability resulting from the debt facility we entered into during the first quarter of 2013 was determined using Level 3 inputs, or significant unobservable inputs.  Refer to Note 7. Debt Facility for a detailed description and valuation approach.  The following table provides the changes in the fair value of the Financial Derivative during the nine-month period ended September 30, 2013 (in thousands):
	Financial Derivative	Amount
	Balance as of December 31, 2012	$	—
	Value at issuance		967
	Gain on change in fair value of Financing Derivative		-73
	Balance as of September 30, 2013	$	894
	For the nine-month period ended September 30, 2013 there were no transfers between Level 1, Level 2, or Level 3 assets or liabilities reported at fair value on a recurring basis and valuation techniques did not change compared to the prior quarter.
	Financial assets and liabilities not measured at fair value on a recurring basis
	The carrying amount of our accounts receivable, prepaid expenses, other current assets, accounts payable, accrued expenses and other current liabilities, are determined to approximate fair value due to their short maturities. The carrying value of our facility financing obligation approximates fair value due to the time to maturity and prevailing market rates.
	We determined the fair value of the Notes (as defined in Note 7. Debt Facility) from the debt facility we entered into during the first quarter of 2013 using Level 3 inputs, or significant unobservable inputs.  The value of the Notes was determined by comparing the difference between the fair value of the Notes with and without the Financing Derivative by calculating the respective present values from future cash flows using a 20.8% weighted average market yield. Refer to Note 7. Debt Facility for additional details regarding the Notes. The estimated fair value and carrying value of the Notes are as follows (in thousands):
Net Loss Per Share	'
	Net Loss per Share
	The following table presents the computation of our basic and diluted net loss per share (in thousands, except per share amounts):
		Three-Months Ended					Nine-Months Ended
		September 30,					September 30,
		2013			2012		2013		2012
	Net loss per share
	Numerator:
	Net loss	$	-20,487		$	-22,729	$	-62,062	$	-72,796
	Denominator:
	Weighted average shares used in computation of basic and diluted net loss per share		65,523			55,877		61,636		55,582
	Basic and diluted net loss per share	$	-0.31		$	-0.41	$	-1.01	$	-1.31
	The following were excluded from the computation of our diluted net loss per share for the periods presented because including them would have had an anti-dilutive effect:
		As of September 30,
	(in thousands)	2013		2012
	Options outstanding	13,351		10,973
	Warrants to purchase common stock	5,504		10

Agreement_With_Roche_Policy

Agreement With Roche (Policy)	9 Months Ended
	Sep. 30, 2013
Agreement With Roche [Abstract]	'
Revenue Recognition	'
	Based on ASC Topic 605-28, Revenue Recognition — Milestone Method, we evaluate contingent milestones at inception of the agreement, and recognize consideration that is contingent upon the achievement of a milestone in its entirety as revenue in the period in which the milestone is achieved only if the milestone is considered substantive in its entirety. Milestones are considered substantive if the consideration earned from the achievement of the milestone (i) is consistent with performance required to achieve the milestone or the increase in value to the delivered item, (ii) relates solely to past performance and (iii) is reasonable relative to all of the other deliverables and payments within the arrangement. The milestone payments of $40.0 million will be recognized as revenue in their entirety upon our achievement of each substantive milestone.

Summary_Of_Significant_Account2

Summary Of Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2013
Summary Of Significant Accounting Policies [Abstract]	'
Summary Of Assets And Liabilities Measured At Fair Value Classified Based On Level Of Input	'
	(in thousands)	September 30, 2013									December 31, 2012
		Level 1			Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
	Assets
	Cash and cash equivalents:
	Cash and money market funds	$	45,571		$	—	$	—	$	45,571	$	11,847	$	—	$	—	$	11,847
	Commercial paper		—			19,196		—		19,196		—		34,693		—		34,693
	Total cash and cash equivalents		45,571			19,196		—		64,767		11,847		34,693		—		46,540
	Investments:
	Commercial paper		—			53,697		—		53,697		—		28,866		—		28,866
	Corporate debt securities		—			1,638		—		1,638		—		13,203		—		13,203
	Asset backed securities		—			6,834		—		6,834		—		955		—		955
	Certificates of deposits		—			—		—		—		—		2,008		—		2,008
	U.S. government and agency securities		—			—		—		—		—		9,008		—		9,008
	Total investments		—			62,169		—		62,169		—		54,040		—		54,040
	Total assets measured at fair value	$	45,571		$	81,365	$	—	$	126,936	$	11,847	$	88,733	$	—	$	100,580
	Liabilities
	Financing derivative	$	—		$	—	$	894	$	894	$	—	$	—	$	—	$	—
	Total liabilities measured at fair value	$	—		$	—	$	894	$	894	$	—	$	—	$	—	$	—
Changes In Fair Value Of Financial Derivative	'
	Financial Derivative	Amount
	Balance as of December 31, 2012	$	—
	Value at issuance		967
	Gain on change in fair value of Financing Derivative		-73
	Balance as of September 30, 2013	$	894
Estimated Fair Value And Carrying Value of Notes	'
		September 30, 2013					December 31, 2012
		Fair Value			Carrying Value		Fair Value		Carrying Value
	Long-term notes payable	$	13,686		$	13,173	$	—	$	—
Computation Of Basic And Diluted Net Loss Per Share	'
		Three-Months Ended					Nine-Months Ended
		September 30,					September 30,
		2013			2012		2013		2012
	Net loss per share
	Numerator:
	Net loss	$	-20,487		$	-22,729	$	-62,062	$	-72,796
	Denominator:
	Weighted average shares used in computation of basic and diluted net loss per share		65,523			55,877		61,636		55,582
	Basic and diluted net loss per share	$	-0.31		$	-0.41	$	-1.01	$	-1.31
Anti-dilutive Excluded From Computation Of Diluted Net Loss Per Share	'
		As of September 30,
	(in thousands)	2013		2012
	Options outstanding	13,351		10,973
	Warrants to purchase common stock	5,504		10

Cash_Cash_Equivalents_And_Inve1

Cash, Cash Equivalents And Investments (Tables)	9 Months Ended
	Sep. 30, 2013
Cash, Cash Equivalents And Investments [Abstract]	'
Summary Of Cash And Cash Equivalents And Investments	'
		As of September 30, 2013
				Gross		Gross
		Amortized		unrealized		unrealized		Fair
		Cost		gains		losses		Value
	Cash and cash equivalents:
	Cash and money market funds	$	45,571	$	—	$	—	$	45,571
	Commercial paper		19,194		2		—		19,196
	Total cash and cash equivalents		64,765		2		—		64,767
	Investments:
	Commercial paper		53,689		9		-1		53,697
	Corporate debt securities		1,637		1		—		1,638
	Asset backed securities		6,834		2		-2		6,834
	Total investments		62,160		12		-3		62,169
	Total cash, cash equivalents and investments	$	126,925	$	14	$	-3	$	126,936
		As of December 31, 2012
				Gross		Gross
		Amortized		unrealized		unrealized		Fair
		Cost		gains		losses		Value
	Cash and cash equivalents:
	Cash and money market funds	$	11,847	$	—	$	—	$	11,847
	Commercial paper		34,690		3		—		34,693
	Total cash and cash equivalents		46,537		3		—		46,540
	Investments:
	Commercial paper		28,859		7		—		28,866
	Corporate debt securities		13,190		13		—		13,203
	Asset backed securities		954		1		—		955
	Certificates of deposit		2,005		3		—		2,008
	U.S. government and agency securities		9,005		3		—		9,008
	Total investments		54,013		27		—		54,040
	Total cash, cash equivalents and investments	$	100,550	$	30	$	—	$	100,580
Estimated Fair Value Of Marketable Debt Securities	'
	(in thousands)	Fair Value
	Due in one year or less	$	74,530
	Due after one year through 5 years		6,835
	Total investments in debt securities	$	81,365

Balance_Sheet_Components_Table

Balance Sheet Components (Tables)	9 Months Ended
	Sep. 30, 2013
Balance Sheet Components [Abstract]	'
Components Of Inventory	'
		September 30,		December 31,
	(in thousands)	2013		2012
	Purchased materials, net	$	3,152	$	3,823
	Work in process, net		4,217		3,494
	Finished goods, net		2,450		2,275
	Inventory, net	$	9,819	$	9,592

Debt_Facility_Tables

Debt Facility (Tables)	9 Months Ended
	Sep. 30, 2013
Debt Facility [Abstract]	'
Fair Value Of Warrants	'
	Expected term	7 years
	Expected volatility	50%
	Risk-free interest rate	1.4%
	Dividend yield	—

Stock_Option_Plans_Tables

Stock Option Plans (Tables)	9 Months Ended
	Sep. 30, 2013
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]	'
Summary Of Stock Option Activity	'
				Stock Options Outstanding
									Weighted
		Shares available		Number					average
		for grant		of shares		Exercise price			exercise price
	Balances, December 31, 2012	2,872		12,016		$	0.20 – 16.00		$	5.37
	Additional shares reserved	3,370
	Options granted	-2,122		2,122			2.11 – 3.65			2.29
	Options exercised	—		-144			0.20 – 3.30			1.15
	Options canceled	643		-643			1.16 – 16.00			6.19
	Balances, September 30, 2013	4,763		13,351		$	0.20 – 16.00		$	4.88
Schedule Of Stock-Based Compensation Expense	'
		Three-Month Periods Ended						Nine-Month Periods Ended
		September 30,						September 30,
		2013			2012			2013			2012
	Cost of revenue	$	107		$	84		$	343		$	393
	Research and development		835			1,181			3,077			3,384
	Sales, general and administrative		1,229			1,123			3,941			3,381
	Total stock-based compensation expense	$	2,171		$	2,388		$	7,361		$	7,158
Schedule Of Fair Value Of Employee Stock Options	'
		Three-Month Periods				Nine-Month Periods
		Ended September 30,				Ended September 30,
	Stock Option	2013		2012		2013		2012
	Expected term in years	6.1		6.1		6.1		6.1
	Expected volatility	65%		60%		65%		65%
	Risk-free interest rate	1.80%		0.90%		1.10%		1.10%
	Dividend yield	—		—		—		—
Employee Stock Purchase Plan [Member]	'
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]	'
Schedule Of Fair Value Of Employee Stock Options	'
		Three-Month Periods				Nine-Month Periods
		Ended September 30,				Ended September 30,
	ESPP	2013		2012		2013		2012
	Expected term in years	0.5-2.0		0.5-2.0		0.5-2.0		0.5-2.0
	Expected volatility	70%		90%		70%		90%
	Risk-free interest rate	0.1%-0.4%		0.1%-0.2%		0.1%-0.4%		0.1%-0.3%
	Dividend yield	—		—		—		—

Summary_Of_Significant_Account3

Summary Of Significant Accounting Policies (Narrative) (Details) (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Mar. 31, 2013
Summary Of Significant Accounting Policies [Abstract]	'	'	'
Impairment charges on investments	$0	$0	'
Fair value assets liabilities transfer between levels	$0	'	'
Future cash flows weighted average market yield	'	'	20.80%

Summary_Of_Significant_Account4

Summary Of Significant Accounting Policies (Summary Of Assets And Liabilities Measured At Fair Value Classified Based On Level Of Input) (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Assets	'	'
Total assets measured at fair value	$126,936	$100,580
Liabilities	'	'
Total liabilities measured at fair value	894	'
Financing Derivative [Member]	'	'
Liabilities	'	'
Total liabilities measured at fair value	894	'
Cash And Cash Equivalents [Member]	'	'
Assets	'	'
Total cash and cash equivalents	64,767	46,540
Cash And Cash Equivalents [Member] | Cash And Money Market Funds [Member]	'	'
Assets	'	'
Total cash and cash equivalents	45,571	11,847
Cash And Cash Equivalents [Member] | Commercial Paper [Member]	'	'
Assets	'	'
Total cash and cash equivalents	19,196	34,693
Investments [Member]	'	'
Assets	'	'
Total investments	62,169	54,040
Investments [Member] | Commercial Paper [Member]	'	'
Assets	'	'
Total investments	53,697	28,866
Investments [Member] | Corporate Debt Securities [Member]	'	'
Assets	'	'
Total investments	1,638	13,203
Investments [Member] | Asset Backed Securities [Member]	'	'
Assets	'	'
Total investments	6,834	955
Investments [Member] | Certificates Of Deposits [Member]	'	'
Assets	'	'
Total investments	'	2,008
Investments [Member] | U.S. Government And Agency Securities [Member]	'	'
Assets	'	'
Total investments	'	9,008
Level 1 [Member]	'	'
Assets	'	'
Total assets measured at fair value	45,571	11,847
Level 1 [Member] | Cash And Cash Equivalents [Member]	'	'
Assets	'	'
Total cash and cash equivalents	45,571	11,847
Level 1 [Member] | Cash And Cash Equivalents [Member] | Cash And Money Market Funds [Member]	'	'
Assets	'	'
Total cash and cash equivalents	45,571	11,847
Level 2 [Member]	'	'
Assets	'	'
Total assets measured at fair value	81,365	88,733
Level 2 [Member] | Cash And Cash Equivalents [Member]	'	'
Assets	'	'
Total cash and cash equivalents	19,196	34,693
Level 2 [Member] | Cash And Cash Equivalents [Member] | Commercial Paper [Member]	'	'
Assets	'	'
Total cash and cash equivalents	19,196	34,693
Level 2 [Member] | Investments [Member]	'	'
Assets	'	'
Total investments	62,169	54,040
Level 2 [Member] | Investments [Member] | Commercial Paper [Member]	'	'
Assets	'	'
Total investments	53,697	28,866
Level 2 [Member] | Investments [Member] | Corporate Debt Securities [Member]	'	'
Assets	'	'
Total investments	1,638	13,203
Level 2 [Member] | Investments [Member] | Asset Backed Securities [Member]	'	'
Assets	'	'
Total investments	6,834	955
Level 2 [Member] | Investments [Member] | Certificates Of Deposits [Member]	'	'
Assets	'	'
Total investments	'	2,008
Level 2 [Member] | Investments [Member] | U.S. Government And Agency Securities [Member]	'	'
Assets	'	'
Total investments	'	9,008
Level 3 [Member]	'	'
Assets	'	'
Total assets measured at fair value	'	'
Liabilities	'	'
Total liabilities measured at fair value	894	'
Level 3 [Member] | Financing Derivative [Member]	'	'
Liabilities	'	'
Total liabilities measured at fair value	894	'
Level 3 [Member] | Cash And Cash Equivalents [Member]	'	'
Assets	'	'
Total cash and cash equivalents	'	'
Level 3 [Member] | Cash And Cash Equivalents [Member] | Cash And Money Market Funds [Member]	'	'
Assets	'	'
Total cash and cash equivalents	'	'
Level 3 [Member] | Cash And Cash Equivalents [Member] | Commercial Paper [Member]	'	'
Assets	'	'
Total cash and cash equivalents	'	'
Level 3 [Member] | Investments [Member]	'	'
Assets	'	'
Total investments	'	'
Level 3 [Member] | Investments [Member] | Commercial Paper [Member]	'	'
Assets	'	'
Total investments	'	'
Level 3 [Member] | Investments [Member] | Corporate Debt Securities [Member]	'	'
Assets	'	'
Total investments	'	'
Level 3 [Member] | Investments [Member] | Asset Backed Securities [Member]	'	'
Assets	'	'
Total investments	'	'
Level 3 [Member] | Investments [Member] | Certificates Of Deposits [Member]	'	'
Assets	'	'
Total investments	'	'
Level 3 [Member] | Investments [Member] | U.S. Government And Agency Securities [Member]	'	'
Assets	'	'
Total investments	'	'

Summary_Of_Significant_Account5

Summary Of Significant Accounting Policies (Changes In Fair Value Of Financial Derivative) (Details) (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Feb. 05, 2013
Summary Of Significant Accounting Policies [Abstract]	'	'
Balance as of December 31, 2012	'	$1,000
Value at issuance	967	'
Gain on change in fair value of Financing Derivative	-73	'
Balance as of September 30, 2013	$894	$1,000

Summary_Of_Significant_Account6

Summary Of Significant Accounting Policies (Estimated Fair Value And Carrying Value Of Notes) (Details) (USD $)	Sep. 30, 2013	Feb. 05, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Summary Of Significant Accounting Policies [Abstract]	'	'	'
Long-term notes payable, Fair Value	$13,686	'	'
Long-term notes payable, Carrying Value	$13,173	$12,800	'

Summary_Of_Significant_Account7

Summary Of Significant Accounting Policies (Computation Of Basic And Diluted Net Loss Per Share) (Details) (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Numerator:	'	'	'	'
Net loss	($20,487)	($22,729)	($62,062)	($72,796)
Denominator:	'	'	'	'
Weighted average shares used in computation of basic and diluted net loss per share	65,523	55,877	61,636	55,582
Basic and diluted net loss per share	($0.31)	($0.41)	($1.01)	($1.31)

Summary_Of_Significant_Account8

Summary Of Significant Accounting Policies (Anti-dilutive Excluded From Computation Of Diluted Net Loss Per Share) (Details)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012
Options Outstanding [Member]	'	'
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]	'	'
Stock excluded from the computation of diluted net loss per share	13,351	10,973
Warrants To Purchase Common Stock [Member]	'	'
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]	'	'
Stock excluded from the computation of diluted net loss per share	5,504	10

Agreement_With_Roche_Details

Agreement With Roche (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012	Sep. 24, 2013	Sep. 30, 2013
			Roche Agreement [Member]	Roche Agreement [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]	'	'	'	'
Non-refundable upfront payment	'	'	$35,000,000	$35,000,000
Additional payment based upon achievements of milestones	'	'	40,000,000	'
Arrangement term	'	'	'13 years	'
Arrangements renewal provision	'	'	'5 years	'
Deferred revenue	'	'	'	35,000,000
Deferred revenue, current	10,359,000	3,378,000	'	6,800,000
Deferred revenue, non-current	$28,875,000	$800,000	'	$28,200,000

Cash_Cash_Equivalents_And_Inve2

Cash, Cash Equivalents And Investments (Summary Of Cash And Cash Equivalents And Investments) (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Schedule of Available-for-sale Securities [Line Items]	'	'
Amortized Cost	$126,925	$100,550
Gross unrealized gains	14	30
Gross unrealized losses	-3	'
Fair Value	126,936	100,580
Cash And Cash Equivalents [Member]	'	'
Schedule of Available-for-sale Securities [Line Items]	'	'
Amortized Cost	64,765	46,537
Gross unrealized gains	2	3
Fair Value	64,767	46,540
Investments [Member]	'	'
Schedule of Available-for-sale Securities [Line Items]	'	'
Amortized Cost	62,160	54,013
Gross unrealized gains	12	27
Gross unrealized losses	-3	'
Fair Value	62,169	54,040
Cash And Money Market Funds [Member] | Cash And Cash Equivalents [Member]	'	'
Schedule of Available-for-sale Securities [Line Items]	'	'
Amortized Cost	45,571	11,847
Fair Value	45,571	11,847
Commercial Paper [Member] | Cash And Cash Equivalents [Member]	'	'
Schedule of Available-for-sale Securities [Line Items]	'	'
Amortized Cost	19,194	34,690
Gross unrealized gains	2	3
Fair Value	19,196	34,693
Commercial Paper Not Included With Cash And Cash Equivalents [Member] | Investments [Member]	'	'
Schedule of Available-for-sale Securities [Line Items]	'	'
Amortized Cost	53,689	28,859
Gross unrealized gains	9	7
Gross unrealized losses	-1	'
Fair Value	53,697	28,866
Corporate Debt Securities [Member] | Investments [Member]	'	'
Schedule of Available-for-sale Securities [Line Items]	'	'
Amortized Cost	1,637	13,190
Gross unrealized gains	1	13
Fair Value	1,638	13,203
Asset Backed Securities [Member] | Investments [Member]	'	'
Schedule of Available-for-sale Securities [Line Items]	'	'
Amortized Cost	6,834	954
Gross unrealized gains	2	1
Gross unrealized losses	-2	'
Fair Value	6,834	955
Certificates Of Deposits [Member] | Investments [Member]	'	'
Schedule of Available-for-sale Securities [Line Items]	'	'
Amortized Cost	'	2,005
Gross unrealized gains	'	3
Fair Value	'	2,008
U.S. Government And Agency Securities [Member] | Investments [Member]	'	'
Schedule of Available-for-sale Securities [Line Items]	'	'
Amortized Cost	'	9,005
Gross unrealized gains	'	3
Fair Value	'	$9,008

Cash_Cash_Equivalents_And_Inve3

Cash, Cash Equivalents And Investments (Estimated Fair Value Of Marketable Debt Securities) (Details) (USD $)	Sep. 30, 2013
In Thousands, unless otherwise specified
Cash, Cash Equivalents And Investments [Abstract]	'
Due in one year or less	$74,530
Due after one year through 5 years	6,835
Total investments in debt securities	$81,365

Balance_Sheet_Components_Compo

Balance Sheet Components (Components Of Inventory) (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Inventory Disclosure [Abstract]	'	'
Purchased materials, net	$3,152	$3,823
Work in process, net	4,217	3,494
Finished goods, net	2,450	2,275
Inventory, net	$9,819	$9,592

Contingencies_Details

Contingencies (Details) (USD $)	Sep. 30, 2013
In Thousands, unless otherwise specified
Contingencies [Abstract]	'
Additional liability associated with indemnification obligations	$0

Debt_Facility_Narrative_Detail

Debt Facility (Narrative) (Details) (USD $)	0 Months Ended	9 Months Ended
	Feb. 05, 2013	Sep. 30, 2013	Dec. 31, 2012
Line of Credit Facility [Line Items]	'	'	'
Principal amount of notes	$14,100,000	'	'
Principal early repayments maximum requirement of net sales amount	41,000,000	'	'
Facility due dates	'on each of the third, fourth and fifth anniversaries of the date of the Facility Agreement.	'	'
Percentage of net proceeds from out side financing or equity component	'	25.00%	'
Facility agreement exercisable limit	'	15,000,000	'
Percentage of principal amount repaid	'	100.00%	'
Cash and cash equivalent minimum amount quarterly required	'	2,000,000	'
Fair value of the financing derivative	1,000,000	894,000	'
Weighted average market yield of derivative	20.80%	20.80%	'
Purchase shares of common stock	5,500,000	'	'
Common stock aggregate exercise price	$2.63	'	'
Fair value of the warrants	6,400,000	'	'
Allocation of notes calculated on a relative fair value basis	20,500,000	'	'
Long-term notes payable, Carrying Value	12,800,000	13,173,000	'
Additional discount allocated to the warrants	7,700,000	'	'
Expected maturity period	'7 years	'	'
Effective interest rate	20.60%	'	'
Deerfield Promissory Notes [Member]	'	'	'
Line of Credit Facility [Line Items]	'	'	'
Principal amount of notes	20,500,000	'	'
Deerfield promissory notes simple interest	8.75%	'	'
Net proceeds of payable quarterly arrears	20,000,000	'	'
Facility fee	$500,000	'	'
Maximum [Member]	'	'	'
Line of Credit Facility [Line Items]	'	'	'
Facility agreement period	'7 years	'	'

Debt_Facility_Fair_Value_Of_Wa

Debt Facility (Fair Value Of Warrants) (Details)	9 Months Ended
	Sep. 30, 2013
Debt Facility [Abstract]	'
Expected term	'7 years
Expected volatility	50.00%
Risk-free interest rate	1.40%
Dividend yield	'

Stockholders_Equity_Details

Stockholders' Equity (Details) (USD $)	9 Months Ended		9 Months Ended		9 Months Ended
	Sep. 30, 2013	Apr. 30, 2012	Sep. 30, 2013	Oct. 05, 2012	Sep. 30, 2013
			Cantor [Member]	Cantor [Member]	At The Market Offering [Member]
Equity [Line Items]	'	'	'	'	'
Common stock, warrants or debt securities	'	$150,000,000	'	'	'
Common stock offering price Cantor shares	'	'	'	30,000,000	'
Commissions to Cantor	3.00%	'	'	'	'
Legal expenses incurred by Cantor	'	'	$50,000	'	'
Shares issued	'	'	'	'	8,300,000
Average common stock price per share	'	'	'	'	$2.51

Stock_Option_Plans_Narrative_D

Stock Option Plans (Narrative) (Details)	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'
Number of equity compensation plans	3	'
Number of purchase periods	4	'
Purchase period of ESPP	'6 months	'
Percentage of fair market value at which stock can be purchased	85.00%	'
Employee Stock Purchase Plan [Member]	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'
Common stock reserved for issuance	0	'
Percentage of outstanding common stock used to determine annual plan increase	2.00%	'
Shares issued under the ESPP	1,519,366	832,878

Stock_Option_Plans_Summary_Of_

Stock Option Plans (Summary Of Stock Option Activity) (Details) (Equity Option [Member], USD $)	9 Months Ended	12 Months Ended
	Sep. 30, 2013	Dec. 31, 2012
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]	'	'
Additional shares reserved, Shares available for grant	3,370,000	'
0.20 - 16.00 [Member]	'	'
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]	'	'
Balances, December 31, 2012, Shares available for grant	2,872,000	'
Balances, September 30, 2013, Shares available for grant	4,763,000	2,872,000
Balances, December 31, 2012, Number of shares	12,016,000	'
Balances, September 30, 2013, Number of shares	13,351,000	12,016,000
Exercise price, lower range	$0.20	$0.20
Exercise price, upper range	$16	$16
Balances, December 31, 2012, Weighted average exercise price per share	$5.37	'
Balances, September 30, 2013, Weighted average exercise price per share	$4.88	$5.37
2.11 - 3.65 [Member]	'	'
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]	'	'
Options granted, Shares available for grant	-2,122,000	'
Options granted, Number of shares	2,122,000	'
Exercise price, lower range	$2.11	'
Exercise price, upper range	$3.65	'
Options granted, Weighted average exercise price per share	$2.29	'
0.20 - 3.30 [Member]	'	'
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]	'	'
Options exercised, Shares available for grant	'	'
Options exercised, Number of shares	-144,000	'
Exercise price, lower range	$0.20	'
Exercise price, upper range	$3.30	'
Options exercised, Weighted average exercise price per share	$1.15	'
1.16 - 16.00 [Member]	'	'
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]	'	'
Options canceled, Shares available for grant	643,000	'
Options canceled, Number of shares	-643,000	'
Exercise price, lower range	$1.16	'
Exercise price, upper range	$16	'
Options canceled, Weighted average exercise price per share	$6.19	'

Stock_Option_Plans_Schedule_Of

Stock Option Plans (Schedule Of Stock-Based Compensation Expense) (Details) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]	'	'	'	'
Stock-based compensation	$2,171	$2,388	$7,361	$7,158
Cost Of Revenue [Member]	'	'	'	'
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]	'	'	'	'
Stock-based compensation	107	84	343	393
Research And Development [Member]	'	'	'	'
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]	'	'	'	'
Stock-based compensation	835	1,181	3,077	3,384
Sales, General And Administrative [Member]	'	'	'	'
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]	'	'	'	'
Stock-based compensation	$1,229	$1,123	$3,941	$3,381

Stock_Option_Plans_Schedule_Of1

Stock Option Plans (Schedule Of Fair Value Of Employee Stock Options (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]	'	'	'	'
Expected term in years	'6 years 1 month 6 days	'6 years 1 month 6 days	'6 years 1 month 6 days	'6 years 1 month 6 days
Expected volatility	65.00%	60.00%	65.00%	65.00%
Risk-free interest rate	1.80%	0.90%	1.10%	1.10%
Dividend yield	'	'	'	'
Employee Stock Purchase Plan [Member]	'	'	'	'
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]	'	'	'	'
Expected volatility	70.00%	90.00%	70.00%	90.00%
Risk-free interest rate, minimum	0.10%	0.10%	0.10%	0.10%
Risk-free interest rate, maximum	0.40%	0.20%	0.40%	0.30%
Dividend yield	'	'	'	'
Employee Stock Purchase Plan [Member] | Minimum [Member]	'	'	'	'
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]	'	'	'	'
Expected term in years	'6 months	'6 months	'6 months	'6 months
Employee Stock Purchase Plan [Member] | Maximum [Member]	'	'	'	'
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]	'	'	'	'
Expected term in years	'2 years	'2 years	'2 years	'2 years