Document_And_Entity_Informatio
Document And Entity Information | 3 Months Ended | |
Mar. 31, 2015 | Apr. 30, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | PACB | |
Entity Registrant Name | PACIFIC BIOSCIENCES OF CALIFORNIA, INC. | |
Entity Central Index Key | 1299130 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 74,565,783 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Current assets | ||
Cash and cash equivalents | $30,271 | $36,449 |
Investments | 48,878 | 64,899 |
Accounts receivable | 5,287 | 3,406 |
Inventory | 13,457 | 11,335 |
Prepaid expenses and other current assets | 1,629 | 1,671 |
Total current assets | 99,522 | 117,760 |
Property and equipment, net | 6,743 | 6,601 |
Other long-term assets | 156 | 162 |
Total assets | 106,421 | 124,523 |
Current liabilities | ||
Accounts payable | 6,924 | 5,608 |
Accrued expenses | 9,438 | 11,441 |
Deferred service revenue, current | 6,254 | 6,121 |
Deferred contractual revenue, current | 14,385 | 6,785 |
Other liabilities, current | 1,410 | 1,534 |
Total current liabilities | 38,411 | 31,489 |
Deferred service revenue, non-current | 1,605 | 1,129 |
Deferred contractual revenue, non-current | 8,539 | 19,735 |
Other liabilities, non-current | 2,192 | 2,153 |
Notes payable | 14,339 | 14,124 |
Financing derivative | 863 | 944 |
Total liabilities | 65,949 | 69,574 |
Commitments and contingencies | ||
Stockholders' equity | ||
Preferred Stock, $0.001 par value: Authorized 50,000 shares; No shares issued or outstanding | ||
Common Stock, $0.001 par value: Authorized 1,000,000 shares; Issued and outstanding 74,542 shares at March 31, 2015 and 73,927 shares at December 31, 2014 | 75 | 74 |
Additional paid-in-capital | 742,027 | 736,339 |
Accumulated other comprehensive income | 16 | 9 |
Accumulated deficit | -701,646 | -681,473 |
Total stockholders' equity | 40,472 | 54,949 |
Total liabilities and stockholders' equity | $106,421 | $124,523 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Condensed Consolidated Balance Sheets [Abstract] | ||
Preferred Stock, par value | $0.00 | $0.00 |
Preferred Stock, shares authorized | 50,000,000 | 50,000,000 |
Preferred Stock, shares issued | 0 | 0 |
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 | 74,542,000 | 73,927,000 |
Common Stock, shares outstanding | 74,542,000 | 73,927,000 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements Of Operations And Comprehensive Loss (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Revenue: | ||
Product revenue | $11,308 | $7,865 |
Service and other revenue | 2,741 | 2,081 |
Contractual revenue | 3,596 | 1,696 |
Total revenue | 17,645 | 11,642 |
Cost of Revenue: | ||
Cost of product revenue | 9,732 | 7,169 |
Cost of service and other revenue | 1,986 | 1,797 |
Total cost of revenue | 11,718 | 8,966 |
Gross profit | 5,927 | 2,676 |
Operating Expense: | ||
Research and development | 14,483 | 11,771 |
Sales, general and administrative | 10,772 | 9,150 |
Total operating expense | 25,255 | 20,921 |
Operating loss | -19,328 | -18,245 |
Interest expense | -697 | -686 |
Other income (expense), net | -148 | 45 |
Net loss | -20,173 | -18,886 |
Other comprehensive income (loss): | ||
Unrealized gain on investments | 7 | 4 |
Comprehensive loss | ($20,166) | ($18,882) |
Net loss per share: | ||
Basic and diluted net loss per share | ($0.27) | ($0.28) |
Shares used in computing basic and diluted net loss per share | 74,149 | 67,861 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements Of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cash flows from operating activities | ||
Net loss | ($20,173) | ($18,886) |
Adjustments to reconcile net loss to net cash used in operating activities | ||
Depreciation | 908 | 1,221 |
Amortization of debt discount and financing costs | 220 | 182 |
Stock-based compensation | 3,255 | 2,270 |
Other items | -69 | 20 |
Changes in assets and liabilities | ||
Accounts receivable | -1,881 | -637 |
Inventory | -2,122 | 1,749 |
Prepaid expenses and other assets | 43 | -507 |
Accounts payable | 983 | 2,209 |
Accrued expenses | -2,003 | -1,489 |
Deferred service revenue | 609 | 258 |
Deferred contractual revenue | -3,596 | -1,696 |
Other liabilities | -85 | -950 |
Net cash used in operating activities | -23,911 | -16,256 |
Cash flows from investing activities | ||
Purchase of property and equipment | -717 | -477 |
Purchase of investments | -25,265 | -36,515 |
Sales of investments | 6,817 | |
Maturities of investments | 34,464 | 45,190 |
Net cash provided by investing activities | 15,299 | 8,198 |
Cash flows from financing activities | ||
Proceeds from issuance of common stock from equity plans | 2,434 | 2,311 |
Proceeds from issuance of common stock from at-the-market equity offering, net of issuance costs | 20,646 | |
Net cash provided by financing activities | 2,434 | 22,957 |
Net increase (decrease) in cash and cash equivalents | -6,178 | 14,899 |
Cash and cash equivalents at beginning of period | 36,449 | 26,362 |
Cash and cash equivalents at end of period | $30,271 | $41,261 |
Overview
Overview | 3 Months Ended |
Mar. 31, 2015 | |
Overview [Abstract] | |
Overview | NOTE 1. OVERVIEW |
Pacific Biosciences of California, Inc., (“Pacific Biosciences”, the “Company”, “we”, “us”) has commercialized the PacBio RS II High Resolution Genetic Analyzer to help scientists solve genetically complex problems. Based on our novel Single Molecule, Real-Time (SMRT®) technology, our products enable: de novo genome assembly to finish genomes in order to more fully identify, annotate and decipher genomic structures; full-length transcript analysis to improve annotations in reference genomes, characterize alternatively spliced isoforms and find novel genes; targeted sequencing to more comprehensively characterize genetic variations; and DNA base modification identification to help characterize epigenetic regulation and DNA damage. Our technology combines very high consensus accuracy and long read lengths with the ability to detect real-time kinetic information. | |
The names “Pacific Biosciences,” “PacBio,” “SMRT,” “SMRTbell” and our logo are our trademarks. | |
Summary_Of_Significant_Account
Summary Of Significant Accounting Policies | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
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. have been prepared on a consistent basis with our December 31, 2014 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 presentation. The Financial Statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) and, as permitted by such rules and regulations, 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, 2014. The results of operations for the three-month period ended March 31, 2015 are not necessarily indicative of the results to be expected for the entire 2015 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 amounts reported in the financial statements and accompanying notes to the financial statements. Our estimates include, but are not limited to, the valuation of inventory, revenue valuation, the valuation of financing derivative and long-term notes, the valuation and recognition of share-based compensation, the valuation of warrants, the delivery period for collaboration agreements, the useful lives assigned to long-lived assets, and the computation provisions for income taxes. Actual results could differ materially from these estimates. | ||||||||||||||||||||||||
During the three-month period ended March 31, 2015 we revised the service period related to our contractual revenue amortization based on increasing certainty of the development time on a prospective approach. As a result, we will, on a prospective basis, recognize the remaining deferred contractual revenue associated with upfront payment received under the Roche Agreement over the revised estimated remaining development period. There have been no other material changes to our critical accounting policies and estimates discussed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2014. | ||||||||||||||||||||||||
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 measured on a recurring basis as of March 31, 2015 and December 31, 2014: | ||||||||||||||||||||||||
(in thousands) | 31-Mar-15 | 31-Dec-14 | ||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
Assets | ||||||||||||||||||||||||
Cash and cash equivalents: | ||||||||||||||||||||||||
Cash and money market funds | $ | 9,799 | $ | — | $ | — | $ | 9,799 | $ | 21,952 | $ | — | $ | — | $ | 21,952 | ||||||||
Commercial paper | — | 20,472 | — | 20,472 | — | 14,497 | — | 14,497 | ||||||||||||||||
Total cash and cash equivalents | 9,799 | 20,472 | — | 30,271 | 21,952 | 14,497 | — | 36,449 | ||||||||||||||||
Investments: | ||||||||||||||||||||||||
Commercial paper | — | 24,953 | — | 24,953 | — | 43,653 | — | 43,653 | ||||||||||||||||
Corporate debt securities | — | 8,149 | — | 8,149 | — | 8,173 | — | 8,173 | ||||||||||||||||
Asset backed securities | — | 15,776 | — | 15,776 | — | 13,073 | — | 13,073 | ||||||||||||||||
Total investments | — | 48,878 | — | 48,878 | — | 64,899 | — | 64,899 | ||||||||||||||||
Total assets measured at fair value | $ | 9,799 | $ | 69,350 | $ | — | $ | 79,149 | $ | 21,952 | $ | 79,396 | $ | — | $ | 101,348 | ||||||||
Liabilities | ||||||||||||||||||||||||
Financing derivative | $ | — | $ | — | $ | 863 | $ | 863 | $ | — | $ | — | $ | 944 | $ | 944 | ||||||||
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 three-month periods ended March 31, 2015 and 2014, there were no impairments of our investments. | ||||||||||||||||||||||||
The estimated fair value of the Financing Derivative liability (as defined in Note 6. Notes Payable) was determined using Level 3 inputs, or significant unobservable inputs. Changes to the estimated fair value of the Financing Derivative are recorded in “Other income (expense), net” in the condensed consolidated statements of operations and comprehensive loss. The following table provides the changes in the estimated fair value of the Financial Derivative during the three-month period ended March 31, 2015 (in thousands): | ||||||||||||||||||||||||
Financial Derivative | Amount | |||||||||||||||||||||||
Balance as of December 31, 2014 | $ | 944 | ||||||||||||||||||||||
Gain on change in estimated fair value | -81 | |||||||||||||||||||||||
Balance as of March 31, 2015 | $ | 863 | ||||||||||||||||||||||
During the three-month period ended March 31, 2015 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 established practice. | ||||||||||||||||||||||||
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 liabilities, current, approximate fair value due to their short maturities. The carrying value of our other liabilities, non-current, approximates fair value due to the time to maturity and prevailing market rates. | ||||||||||||||||||||||||
We determined the estimated fair value of the Notes (as defined in Note 6. Notes Payable) from the debt facility using Level 3 inputs, or significant unobservable inputs. The estimated fair value of the Notes was determined by comparing the difference between the estimated fair value of the Notes with and without the Financing Derivative by calculating the respective present values from future cash flows using an 18.4% and 19.5% weighted average market yield at March 31, 2015 and December 31, 2014, respectively. | ||||||||||||||||||||||||
The estimated fair value and carrying value of the Notes are as follows (in thousands): | ||||||||||||||||||||||||
31-Mar-15 | 31-Dec-14 | |||||||||||||||||||||||
Fair Value | Carrying Value | Fair Value | Carrying Value | |||||||||||||||||||||
Long-term notes payable | $ | 15,210 | $ | 14,339 | $ | 14,817 | $ | 14,124 | ||||||||||||||||
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-Month Periods Ended March 31, | ||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||
Net loss per share | ||||||||||||||||||||||||
Numerator: | ||||||||||||||||||||||||
Net loss | $ | -20,173 | $ | -18,886 | ||||||||||||||||||||
Denominator: | ||||||||||||||||||||||||
Weighted average shares used in computation of basic and diluted net loss per share | 74,149 | 67,861 | ||||||||||||||||||||||
Basic and diluted net loss per share | $ | -0.27 | $ | -0.28 | ||||||||||||||||||||
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 March 31, | ||||||||||||||||||||||||
(in thousands) | 2015 | 2014 | ||||||||||||||||||||||
Options outstanding | 18,796 | 15,714 | ||||||||||||||||||||||
Warrants to purchase common stock | 5,500 | 5,500 | ||||||||||||||||||||||
Recent Accounting Pronouncements | ||||||||||||||||||||||||
In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers, requiring entities to recognize revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The updated standard will replace most existing revenue recognition guidance in GAAP when it becomes effective and permits the use of either a retrospective or cumulative effect transition method. The updated standard is effective for the Company in the first quarter of fiscal year 2017 and early adoption is not permitted. We are currently in the process of evaluating the impact of adopting this ASU on our financial statements and related disclosures. | ||||||||||||||||||||||||
In August 2014, the FASB issued ASU No. 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. This ASU introduces an explicit requirement for management to assess if there is substantial doubt about an entity’s ability to continue as a going concern, and to provide related footnote disclosures in certain circumstances. Disclosures are required if conditions give rise to substantial doubt. This ASU is effective for us in the first quarter of fiscal year 2017. We are currently in the process of evaluating the impact of adopting this ASU on our financial statements and related disclosures. | ||||||||||||||||||||||||
In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs, which changes the presentation of debt issuance costs in financial statements. This ASU requires an entity to present such costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of the costs will continue to be reported as interest expense. This ASU is effective for the Company’s annual report periods beginning after December 15, 2016 and is effective for us in the first quarter of fiscal year 2016. Early adoption is permitted. The new guidance will be applied retrospectively to each prior period presented. We are currently in the process of evaluating the impact of adopting this ASU on our financial statements and related disclosures. | ||||||||||||||||||||||||
Contractual_Revenue
Contractual Revenue | 3 Months Ended |
Mar. 31, 2015 | |
Contractual Revenue [Abstract] | |
Contractual Revenue | NOTE 3. CONTRACTUAL REVENUE |
During September 2013, we entered into a Development, Commercialization and License Agreement (the “Roche Agreement”) with F. Hoffman-La Roche Ltd (“Roche”), pursuant to which we account for, and recognize as revenue, the up-front payment using the proportional performance method over the periods in which the delivery of elements of the agreement occurs. We recognize revenue using a straight-line convention over the service periods of the deliverables as this method approximates our performance of services pursuant to the contract. Out of the $35.0 million upfront cash payment received, quarterly amortization of $1.7 million has been recognized as contractual revenue from the fourth quarter of 2013 to the fourth quarter of 2014. | |
During the three-month period ended March 31, 2015 we revised the estimated development period related to our contractual revenue amortization based on increasing certainty of the development time on a prospective approach. This change in estimate resulted in $1.9 million of additional contractual revenue being recognized in the first quarter of 2015 with a total of $3.6 million of quarterly amortization for the period. As a result, we will, on a prospective basis, recognize the remaining deferred revenue of $22.9 million associated with upfront payment received under the Roche Agreement over the revised estimated remaining development period. This additional contractual revenue of $1.9 million had a 100% margin thus decreased our net loss by the same amount and improved our net loss per share by $0.03 per share. | |
In addition to the deliverables above, the Roche Agreement provides for additional payments totaling up to $40.0 million upon the achievement of certain development milestones. During August 2014, we achieved the first development milestone and we recorded the related $10.0 million as contractual revenue. In addition, we achieved the second development milestone subsequent to March 31, 2015. Please refer to Note 8 Subsequent Event for further information. | |
Cash_Cash_Equivalents_And_Inve
Cash, Cash Equivalents And Investments | 3 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
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 March 31, 2015 and December 31, 2014 (in thousands): | ||||||||||||
31-Mar-15 | ||||||||||||
Gross | Gross | |||||||||||
Amortized | unrealized | unrealized | Fair | |||||||||
Cost | gains | losses | Value | |||||||||
Cash and cash equivalents: | ||||||||||||
Cash and money market funds | $ | 9,799 | $ | — | $ | — | $ | 9,799 | ||||
Commercial paper | 20,471 | 1 | — | 20,472 | ||||||||
Total cash and cash equivalents | 30,270 | 1 | — | 30,271 | ||||||||
Investments: | ||||||||||||
Commercial paper | 24,950 | 3 | — | 24,953 | ||||||||
Corporate debt securities | 8,138 | 11 | — | 8,149 | ||||||||
Asset backed securities | 15,775 | 2 | -1 | 15,776 | ||||||||
Total investments | 48,863 | 16 | -1 | 48,878 | ||||||||
Total cash, cash equivalents and investments | $ | 79,133 | $ | 17 | $ | -1 | $ | 79,149 | ||||
31-Dec-14 | ||||||||||||
Gross | Gross | |||||||||||
Amortized | unrealized | unrealized | Fair | |||||||||
Cost | gains | losses | Value | |||||||||
Cash and cash equivalents: | ||||||||||||
Cash and money market funds | $ | 21,952 | $ | — | $ | — | $ | 21,952 | ||||
Commercial paper | 14,496 | 1 | — | 14,497 | ||||||||
Total cash and cash equivalents | 36,448 | 1 | — | 36,449 | ||||||||
Investments: | ||||||||||||
Commercial paper | 43,648 | 5 | — | 43,653 | ||||||||
Corporate debt securities | 8,170 | 7 | -4 | 8,173 | ||||||||
Asset backed securities | 13,073 | 4 | -4 | 13,073 | ||||||||
Total investments | 64,891 | 16 | -8 | 64,899 | ||||||||
Total cash, cash equivalents and investments | $ | 101,339 | $ | 17 | $ | -8 | $ | 101,348 | ||||
The following table summarizes the contractual maturities of our cash equivalents and available-for-sale investments, excluding money market funds, as of March 31, 2015: | ||||||||||||
(in thousands) | Fair Value | |||||||||||
Due in one year or less | $ | 69,350 | ||||||||||
Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations without call or prepayment penalties. | ||||||||||||
Inventory
Inventory | 3 Months Ended | |||||
Mar. 31, 2015 | ||||||
Inventory [Abstract] | ||||||
Inventory | NOTE 5. INVENTORY | |||||
Inventory | ||||||
As of March 31, 2015 and December 31, 2014, our inventory, net, consisted of the following components: | ||||||
March 31, | December 31, | |||||
(in thousands) | 2015 | 2014 | ||||
Purchased materials | $ | 2,064 | $ | 3,150 | ||
Work in process | 9,751 | 6,115 | ||||
Finished goods | 1,642 | 2,070 | ||||
Inventory | $ | 13,457 | $ | 11,335 | ||
Notes_Payable
Notes Payable | 3 Months Ended |
Mar. 31, 2015 | |
Notes Payable [Abstract] | |
Notes Payable | NOTE 6. NOTES PAYABLE |
Pursuant to a Facility Agreement (the “Facility Agreement”) we entered into with entities affiliated with Deerfield Management Company, L.P. (collectively, “Deerfield”) during February 2013, we issued 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. In connection with the execution of the Facility Agreement, we issued 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”). In addition, the Facility Agreement requires us 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. | |
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 (i) a qualified financing, (ii) an Event of Default, (iii) a Major Transaction, and (iv) 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 estimated fair value of the Financing Derivative 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 an 18.4% and 19.5% weighted average market yield at March 31, 2015 and December 31, 2014, respectively. The estimated fair value of the Financing Derivative as of each of March 31, 2015 and December 31, 2014 was $0.9 million. | |
Notes | |
We initially recorded the Notes and Warrants 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. 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. As of March 31, 2015 and December 31, 2014, debt discount of $6.2 million and $6.4 million remained to be amortized through February 2020, the maturity of the Notes. | |
Stockholders_Equity_And_ShareB
Stockholders' Equity And Share-Based Compensation | 3 Months Ended | |||||||||
Mar. 31, 2015 | ||||||||||
Stockholders' Equity And Share-Based Compensation [Abstract] | ||||||||||
Stockholders' Equity And Share-Based Compensation | NOTE 7. STOCKHOLDERS’ EQUITY AND SHARE-BASED COMPENSATION | |||||||||
Warrants | ||||||||||
As of March 31, 2015, we had outstanding warrants to purchase an aggregate of 5,500,000 shares of common stock. | ||||||||||
Equity Plans | ||||||||||
As of March 31, 2015, we had three active equity compensation plans: the 2010 Equity Incentive Plan, the 2010 Outside Director Equity Incentive Plan, and the 2010 Employee Stock Purchase Plan (“ESPP”). | ||||||||||
The following table summarizes stock option activity for all stock option plans for the three-month period ended March 31, 2015 (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, 2014 | 4,874 | 16,491 | $ | 0.70 – 16.00 | $ | 5.10 | ||||
Additional shares reserved | 4,435 | |||||||||
Options granted | -2,474 | 2,474 | 5.72 – 7.59 | 6.55 | ||||||
Options exercised | — | -72 | 0.70 – 5.18 | 2.40 | ||||||
Options canceled | 97 | -97 | 1.16 – 15.98 | 6.63 | ||||||
Balances, March 31, 2015 | 6,932 | 18,796 | $ | 0.70 – 16.00 | $ | 5.30 | ||||
Shares issued under the ESPP totaled 532,217 and 1,048,604 shares during the three-month periods ended March 31, 2015 and 2014, respectively. As of March 31, 2015, 946,329 shares of our common stock remain available for issuance under our ESPP. | ||||||||||
Stock-based Compensation | ||||||||||
Total stock-based compensation expense consists of the following (in thousands): | ||||||||||
Three-Month Periods Ended March 31, | ||||||||||
2015 | 2014 | |||||||||
Cost of revenue | $ | 298 | $ | 141 | ||||||
Research and development | 1,255 | 886 | ||||||||
Sales, general and administrative | 1,702 | 1,243 | ||||||||
Total stock-based compensation expense | $ | 3,255 | $ | 2,270 | ||||||
We estimated the fair value of employee stock options on the grant date using the Black-Scholes option pricing model. The estimated fair value of employee stock options is 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 Ended March 31, | ||||||||||
Stock Option | 2015 | 2014 | ||||||||
Expected term in years | 6.1 | 6.1 | ||||||||
Expected volatility | 70% | 70% | ||||||||
Risk-free interest rate | 1.60% | 1.90% | ||||||||
Dividend yield | — | — | ||||||||
We estimate the value of the employee stock purchase rights on the grant date using the Black-Scholes option pricing model. The fair value of ESPP was estimated using the following assumptions: | ||||||||||
Three-Month Periods Ended March 31, | ||||||||||
ESPP | 2015 | 2014 | ||||||||
Expected term in years | 0.5-2.0 | 0.5-2.0 | ||||||||
Expected volatility | 70% | 70% | ||||||||
Risk-free interest rate | 0.1%-0.6% | 0.1%-0.3% | ||||||||
Dividend yield | — | — | ||||||||
Subsequent_Event
Subsequent Event | 3 Months Ended |
Mar. 31, 2015 | |
Subsequent Event [Abstract] | |
Subsequent Event | |
NOTE 8. SUBSEQUENT EVENT | |
During April 2015, we achieved the second development milestone under the Roche Agreement, entitling us to a milestone payment of $10.0 million. The achievement of the development milestone will be recognized as contractual revenue for the quarter ending June 30, 2015. We may receive up to an additional $20.0 million based on additional milestone achievement in the future. | |
Summary_Of_Significant_Account1
Summary Of Significant Accounting Policies (Policy) | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
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. have been prepared on a consistent basis with our December 31, 2014 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 presentation. The Financial Statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) and, as permitted by such rules and regulations, 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, 2014. The results of operations for the three-month period ended March 31, 2015 are not necessarily indicative of the results to be expected for the entire 2015 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 amounts reported in the financial statements and accompanying notes to the financial statements. Our estimates include, but are not limited to, the valuation of inventory, revenue valuation, the valuation of financing derivative and long-term notes, the valuation and recognition of share-based compensation, the valuation of warrants, the delivery period for collaboration agreements, the useful lives assigned to long-lived assets, and the computation provisions for income taxes. Actual results could differ materially from these estimates. | ||||||||||||||||||||||||
During the three-month period ended March 31, 2015 we revised the service period related to our contractual revenue amortization based on increasing certainty of the development time on a prospective approach. As a result, we will, on a prospective basis, recognize the remaining deferred contractual revenue associated with upfront payment received under the Roche Agreement over the revised estimated remaining development period. There have been no other material changes to our critical accounting policies and estimates discussed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2014. | ||||||||||||||||||||||||
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 measured on a recurring basis as of March 31, 2015 and December 31, 2014: | ||||||||||||||||||||||||
(in thousands) | 31-Mar-15 | 31-Dec-14 | ||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
Assets | ||||||||||||||||||||||||
Cash and cash equivalents: | ||||||||||||||||||||||||
Cash and money market funds | $ | 9,799 | $ | — | $ | — | $ | 9,799 | $ | 21,952 | $ | — | $ | — | $ | 21,952 | ||||||||
Commercial paper | — | 20,472 | — | 20,472 | — | 14,497 | — | 14,497 | ||||||||||||||||
Total cash and cash equivalents | 9,799 | 20,472 | — | 30,271 | 21,952 | 14,497 | — | 36,449 | ||||||||||||||||
Investments: | ||||||||||||||||||||||||
Commercial paper | — | 24,953 | — | 24,953 | — | 43,653 | — | 43,653 | ||||||||||||||||
Corporate debt securities | — | 8,149 | — | 8,149 | — | 8,173 | — | 8,173 | ||||||||||||||||
Asset backed securities | — | 15,776 | — | 15,776 | — | 13,073 | — | 13,073 | ||||||||||||||||
Total investments | — | 48,878 | — | 48,878 | — | 64,899 | — | 64,899 | ||||||||||||||||
Total assets measured at fair value | $ | 9,799 | $ | 69,350 | $ | — | $ | 79,149 | $ | 21,952 | $ | 79,396 | $ | — | $ | 101,348 | ||||||||
Liabilities | ||||||||||||||||||||||||
Financing derivative | $ | — | $ | — | $ | 863 | $ | 863 | $ | — | $ | — | $ | 944 | $ | 944 | ||||||||
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 three-month periods ended March 31, 2015 and 2014, there were no impairments of our investments. | ||||||||||||||||||||||||
The estimated fair value of the Financing Derivative liability (as defined in Note 6. Notes Payable) was determined using Level 3 inputs, or significant unobservable inputs. Changes to the estimated fair value of the Financing Derivative are recorded in “Other income (expense), net” in the condensed consolidated statements of operations and comprehensive loss. The following table provides the changes in the estimated fair value of the Financial Derivative during the three-month period ended March 31, 2015 (in thousands): | ||||||||||||||||||||||||
Financial Derivative | Amount | |||||||||||||||||||||||
Balance as of December 31, 2014 | $ | 944 | ||||||||||||||||||||||
Gain on change in estimated fair value | -81 | |||||||||||||||||||||||
Balance as of March 31, 2015 | $ | 863 | ||||||||||||||||||||||
During the three-month period ended March 31, 2015 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 established practice. | ||||||||||||||||||||||||
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 liabilities, current, approximate fair value due to their short maturities. The carrying value of our other liabilities, non-current, approximates fair value due to the time to maturity and prevailing market rates. | ||||||||||||||||||||||||
We determined the estimated fair value of the Notes (as defined in Note 6. Notes Payable) from the debt facility using Level 3 inputs, or significant unobservable inputs. The estimated fair value of the Notes was determined by comparing the difference between the estimated fair value of the Notes with and without the Financing Derivative by calculating the respective present values from future cash flows using an 18.4% and 19.5% weighted average market yield at March 31, 2015 and December 31, 2014, respectively. | ||||||||||||||||||||||||
The estimated fair value and carrying value of the Notes are as follows (in thousands): | ||||||||||||||||||||||||
31-Mar-15 | 31-Dec-14 | |||||||||||||||||||||||
Fair Value | Carrying Value | Fair Value | Carrying Value | |||||||||||||||||||||
Long-term notes payable | $ | 15,210 | $ | 14,339 | $ | 14,817 | $ | 14,124 | ||||||||||||||||
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-Month Periods Ended March 31, | ||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||
Net loss per share | ||||||||||||||||||||||||
Numerator: | ||||||||||||||||||||||||
Net loss | $ | -20,173 | $ | -18,886 | ||||||||||||||||||||
Denominator: | ||||||||||||||||||||||||
Weighted average shares used in computation of basic and diluted net loss per share | 74,149 | 67,861 | ||||||||||||||||||||||
Basic and diluted net loss per share | $ | -0.27 | $ | -0.28 | ||||||||||||||||||||
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 March 31, | ||||||||||||||||||||||||
(in thousands) | 2015 | 2014 | ||||||||||||||||||||||
Options outstanding | 18,796 | 15,714 | ||||||||||||||||||||||
Warrants to purchase common stock | 5,500 | 5,500 | ||||||||||||||||||||||
Recent Accounting Pronouncements | Recent Accounting Pronouncements | |||||||||||||||||||||||
In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers, requiring entities to recognize revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The updated standard will replace most existing revenue recognition guidance in GAAP when it becomes effective and permits the use of either a retrospective or cumulative effect transition method. The updated standard is effective for the Company in the first quarter of fiscal year 2017 and early adoption is not permitted. We are currently in the process of evaluating the impact of adopting this ASU on our financial statements and related disclosures. | ||||||||||||||||||||||||
In August 2014, the FASB issued ASU No. 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. This ASU introduces an explicit requirement for management to assess if there is substantial doubt about an entity’s ability to continue as a going concern, and to provide related footnote disclosures in certain circumstances. Disclosures are required if conditions give rise to substantial doubt. This ASU is effective for us in the first quarter of fiscal year 2017. We are currently in the process of evaluating the impact of adopting this ASU on our financial statements and related disclosures. | ||||||||||||||||||||||||
In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs, which changes the presentation of debt issuance costs in financial statements. This ASU requires an entity to present such costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of the costs will continue to be reported as interest expense. This ASU is effective for the Company’s annual report periods beginning after December 15, 2016 and is effective for us in the first quarter of fiscal year 2016. Early adoption is permitted. The new guidance will be applied retrospectively to each prior period presented. We are currently in the process of evaluating the impact of adopting this ASU on our financial statements and related disclosures. | ||||||||||||||||||||||||
Summary_Of_Significant_Account2
Summary Of Significant Accounting Policies (Tables) | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
Summary Of Significant Accounting Policies [Abstract] | ||||||||||||||||||||||||
Summary Of Assets And Liabilities Measured At Fair Value Classified Based On Level Of Input | ||||||||||||||||||||||||
(in thousands) | 31-Mar-15 | 31-Dec-14 | ||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
Assets | ||||||||||||||||||||||||
Cash and cash equivalents: | ||||||||||||||||||||||||
Cash and money market funds | $ | 9,799 | $ | — | $ | — | $ | 9,799 | $ | 21,952 | $ | — | $ | — | $ | 21,952 | ||||||||
Commercial paper | — | 20,472 | — | 20,472 | — | 14,497 | — | 14,497 | ||||||||||||||||
Total cash and cash equivalents | 9,799 | 20,472 | — | 30,271 | 21,952 | 14,497 | — | 36,449 | ||||||||||||||||
Investments: | ||||||||||||||||||||||||
Commercial paper | — | 24,953 | — | 24,953 | — | 43,653 | — | 43,653 | ||||||||||||||||
Corporate debt securities | — | 8,149 | — | 8,149 | — | 8,173 | — | 8,173 | ||||||||||||||||
Asset backed securities | — | 15,776 | — | 15,776 | — | 13,073 | — | 13,073 | ||||||||||||||||
Total investments | — | 48,878 | — | 48,878 | — | 64,899 | — | 64,899 | ||||||||||||||||
Total assets measured at fair value | $ | 9,799 | $ | 69,350 | $ | — | $ | 79,149 | $ | 21,952 | $ | 79,396 | $ | — | $ | 101,348 | ||||||||
Liabilities | ||||||||||||||||||||||||
Financing derivative | $ | — | $ | — | $ | 863 | $ | 863 | $ | — | $ | — | $ | 944 | $ | 944 | ||||||||
Changes In Fair Value Of Financial Derivative | ||||||||||||||||||||||||
Financial Derivative | Amount | |||||||||||||||||||||||
Balance as of December 31, 2014 | $ | 944 | ||||||||||||||||||||||
Gain on change in estimated fair value | -81 | |||||||||||||||||||||||
Balance as of March 31, 2015 | $ | 863 | ||||||||||||||||||||||
Estimated Fair Value And Carrying Value of Notes | ||||||||||||||||||||||||
31-Mar-15 | 31-Dec-14 | |||||||||||||||||||||||
Fair Value | Carrying Value | Fair Value | Carrying Value | |||||||||||||||||||||
Long-term notes payable | $ | 15,210 | $ | 14,339 | $ | 14,817 | $ | 14,124 | ||||||||||||||||
Computation Of Basic And Diluted Net Loss Per Share | ||||||||||||||||||||||||
Three-Month Periods Ended March 31, | ||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||
Net loss per share | ||||||||||||||||||||||||
Numerator: | ||||||||||||||||||||||||
Net loss | $ | -20,173 | $ | -18,886 | ||||||||||||||||||||
Denominator: | ||||||||||||||||||||||||
Weighted average shares used in computation of basic and diluted net loss per share | 74,149 | 67,861 | ||||||||||||||||||||||
Basic and diluted net loss per share | $ | -0.27 | $ | -0.28 | ||||||||||||||||||||
Anti-dilutive Excluded From Computation Of Diluted Net Loss Per Share | ||||||||||||||||||||||||
As of March 31, | ||||||||||||||||||||||||
(in thousands) | 2015 | 2014 | ||||||||||||||||||||||
Options outstanding | 18,796 | 15,714 | ||||||||||||||||||||||
Warrants to purchase common stock | 5,500 | 5,500 | ||||||||||||||||||||||
Cash_Cash_Equivalents_And_Inve1
Cash, Cash Equivalents And Investments (Tables) | 3 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Cash, Cash Equivalents And Investments [Abstract] | ||||||||||||
Summary Of Cash, Cash Equivalents And Investments | ||||||||||||
31-Mar-15 | ||||||||||||
Gross | Gross | |||||||||||
Amortized | unrealized | unrealized | Fair | |||||||||
Cost | gains | losses | Value | |||||||||
Cash and cash equivalents: | ||||||||||||
Cash and money market funds | $ | 9,799 | $ | — | $ | — | $ | 9,799 | ||||
Commercial paper | 20,471 | 1 | — | 20,472 | ||||||||
Total cash and cash equivalents | 30,270 | 1 | — | 30,271 | ||||||||
Investments: | ||||||||||||
Commercial paper | 24,950 | 3 | — | 24,953 | ||||||||
Corporate debt securities | 8,138 | 11 | — | 8,149 | ||||||||
Asset backed securities | 15,775 | 2 | -1 | 15,776 | ||||||||
Total investments | 48,863 | 16 | -1 | 48,878 | ||||||||
Total cash, cash equivalents and investments | $ | 79,133 | $ | 17 | $ | -1 | $ | 79,149 | ||||
31-Dec-14 | ||||||||||||
Gross | Gross | |||||||||||
Amortized | unrealized | unrealized | Fair | |||||||||
Cost | gains | losses | Value | |||||||||
Cash and cash equivalents: | ||||||||||||
Cash and money market funds | $ | 21,952 | $ | — | $ | — | $ | 21,952 | ||||
Commercial paper | 14,496 | 1 | — | 14,497 | ||||||||
Total cash and cash equivalents | 36,448 | 1 | — | 36,449 | ||||||||
Investments: | ||||||||||||
Commercial paper | 43,648 | 5 | — | 43,653 | ||||||||
Corporate debt securities | 8,170 | 7 | -4 | 8,173 | ||||||||
Asset backed securities | 13,073 | 4 | -4 | 13,073 | ||||||||
Total investments | 64,891 | 16 | -8 | 64,899 | ||||||||
Total cash, cash equivalents and investments | $ | 101,339 | $ | 17 | $ | -8 | $ | 101,348 | ||||
Summary Of Contractual Maturities Of Cash Equivalents And Available-For-Sale Investments | ||||||||||||
(in thousands) | Fair Value | |||||||||||
Due in one year or less | $ | 69,350 | ||||||||||
Inventory_Tables
Inventory (Tables) | 3 Months Ended | |||||
Mar. 31, 2015 | ||||||
Inventory [Abstract] | ||||||
Components Of Inventory | ||||||
March 31, | December 31, | |||||
(in thousands) | 2015 | 2014 | ||||
Purchased materials | $ | 2,064 | $ | 3,150 | ||
Work in process | 9,751 | 6,115 | ||||
Finished goods | 1,642 | 2,070 | ||||
Inventory | $ | 13,457 | $ | 11,335 | ||
Stockholders_Equity_And_ShareB1
Stockholders' Equity And Share-Based Compensation (Tables) | 3 Months Ended | |||||||||
Mar. 31, 2015 | ||||||||||
Stockholders' Equity And Share-Based Compensation [Abstract] | ||||||||||
Summary Of Stock Option Activity | ||||||||||
Stock Options Outstanding | ||||||||||
Weighted | ||||||||||
Shares available | Number | average | ||||||||
for grant | of shares | Exercise price | exercise price | |||||||
Balances, December 31, 2014 | 4,874 | 16,491 | $ | 0.70 – 16.00 | $ | 5.10 | ||||
Additional shares reserved | 4,435 | |||||||||
Options granted | -2,474 | 2,474 | 5.72 – 7.59 | 6.55 | ||||||
Options exercised | — | -72 | 0.70 – 5.18 | 2.40 | ||||||
Options canceled | 97 | -97 | 1.16 – 15.98 | 6.63 | ||||||
Balances, March 31, 2015 | 6,932 | 18,796 | $ | 0.70 – 16.00 | $ | 5.30 | ||||
Schedule Of Stock-Based Compensation Expense | ||||||||||
Three-Month Periods Ended March 31, | ||||||||||
2015 | 2014 | |||||||||
Cost of revenue | $ | 298 | $ | 141 | ||||||
Research and development | 1,255 | 886 | ||||||||
Sales, general and administrative | 1,702 | 1,243 | ||||||||
Total stock-based compensation expense | $ | 3,255 | $ | 2,270 | ||||||
Schedule Of Fair Value Of Employee Stock Options | ||||||||||
Three-Month Periods Ended March 31, | ||||||||||
Stock Option | 2015 | 2014 | ||||||||
Expected term in years | 6.1 | 6.1 | ||||||||
Expected volatility | 70% | 70% | ||||||||
Risk-free interest rate | 1.60% | 1.90% | ||||||||
Dividend yield | — | — | ||||||||
Schedule Of Fair Value Of Employee Stock Purchase Plan | ||||||||||
Three-Month Periods Ended March 31, | ||||||||||
ESPP | 2015 | 2014 | ||||||||
Expected term in years | 0.5-2.0 | 0.5-2.0 | ||||||||
Expected volatility | 70% | 70% | ||||||||
Risk-free interest rate | 0.1%-0.6% | 0.1%-0.3% | ||||||||
Dividend yield | — | — | ||||||||
Summary_Of_Significant_Account3
Summary Of Significant Accounting Policies (Narrative) (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
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 | 18.40% | 19.50% |
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 $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Assets | ||
Total assets measured at fair value | $79,149 | $101,348 |
Financing Derivative [Member] | ||
Liabilities | ||
Total liabilities measured at fair value | 863 | 944 |
Cash and cash equivalents [Member] | ||
Assets | ||
Total cash and cash equivalents | 30,271 | 36,449 |
Cash and cash equivalents [Member] | Cash and money market funds [Member] | ||
Assets | ||
Total cash and cash equivalents | 9,799 | 21,952 |
Cash and cash equivalents [Member] | Commercial paper [Member] | ||
Assets | ||
Total cash and cash equivalents | 20,472 | 14,497 |
Investments [Member] | ||
Assets | ||
Total investments | 48,878 | 64,899 |
Investments [Member] | Commercial paper [Member] | ||
Assets | ||
Total investments | 24,953 | 43,653 |
Investments [Member] | Corporate debt securities [Member] | ||
Assets | ||
Total investments | 8,149 | 8,173 |
Investments [Member] | Asset backed securities [Member] | ||
Assets | ||
Total investments | 15,776 | 13,073 |
Level 1 [Member] | ||
Assets | ||
Total assets measured at fair value | 9,799 | 21,952 |
Level 1 [Member] | Cash and cash equivalents [Member] | ||
Assets | ||
Total cash and cash equivalents | 9,799 | 21,952 |
Level 1 [Member] | Cash and cash equivalents [Member] | Cash and money market funds [Member] | ||
Assets | ||
Total cash and cash equivalents | 9,799 | 21,952 |
Level 2 [Member] | ||
Assets | ||
Total assets measured at fair value | 69,350 | 79,396 |
Level 2 [Member] | Cash and cash equivalents [Member] | ||
Assets | ||
Total cash and cash equivalents | 20,472 | 14,497 |
Level 2 [Member] | Cash and cash equivalents [Member] | Commercial paper [Member] | ||
Assets | ||
Total cash and cash equivalents | 20,472 | 14,497 |
Level 2 [Member] | Investments [Member] | ||
Assets | ||
Total investments | 48,878 | 64,899 |
Level 2 [Member] | Investments [Member] | Commercial paper [Member] | ||
Assets | ||
Total investments | 24,953 | 43,653 |
Level 2 [Member] | Investments [Member] | Corporate debt securities [Member] | ||
Assets | ||
Total investments | 8,149 | 8,173 |
Level 2 [Member] | Investments [Member] | Asset backed securities [Member] | ||
Assets | ||
Total investments | 15,776 | 13,073 |
Level 3 [Member] | ||
Assets | ||
Total assets measured at fair value | ||
Level 3 [Member] | Financing Derivative [Member] | ||
Liabilities | ||
Total liabilities measured at fair value | 863 | 944 |
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 |
Summary_Of_Significant_Account5
Summary Of Significant Accounting Policies (Changes In Fair Value Of Financial Derivative) (Details) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 |
Summary Of Significant Accounting Policies [Abstract] | |
Balance as of December 31, 2014 | $944 |
Gain on change in estimated fair value | -81 |
Balance as of March 31, 2015 | $863 |
Summary_Of_Significant_Account6
Summary Of Significant Accounting Policies (Estimated Fair Value And Carrying Value Of Notes) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Fair Value [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Long-term notes payable | $15,210 | $14,817 |
Carrying Value [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Long-term notes payable | $14,339 | $14,124 |
Summary_Of_Significant_Account7
Summary Of Significant Accounting Policies (Computation Of Basic And Diluted Net Loss Per Share) (Details) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Numerator: | ||
Net loss | ($20,173) | ($18,886) |
Denominator: | ||
Weighted average shares used in computation of basic and diluted net loss per share | 74,149 | 67,861 |
Basic and diluted net loss per share | ($0.27) | ($0.28) |
Summary_Of_Significant_Account8
Summary Of Significant Accounting Policies (Anti-dilutive Excluded From Computation Of Diluted Net Loss Per Share) (Details) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Stock Options [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Stock excluded from the computation of diluted net loss per share | 18,796 | 15,714 |
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 | 5,500 | 5,500 |
Contractual_Revenue_Details
Contractual Revenue (Details) (USD $) | 3 Months Ended | 1 Months Ended | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Aug. 31, 2014 | Sep. 30, 2013 | Mar. 31, 2015 |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||
Deferred revenue, revenue recognized | $1.70 | |||
Roche Agreement [Member] | ||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||
Non-refundable upfront payment | 35 | |||
Additional contractual revenue being recognized in the period | 1.9 | |||
Deferred revenue, revenue recognized | 3.6 | |||
Deferred revenue | 22.9 | |||
Loss per share | ($0.03) | |||
Maximum potential for additional payments to be recognized upon the achievement of certain development milestones | 40 | |||
Additional payment based upon achievements of milestones | $10 |
Cash_Cash_Equivalents_And_Inve2
Cash, Cash Equivalents And Investments (Summary Of Cash And Cash Equivalents And Investments) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $79,133 | $101,339 |
Gross unrealized gains | 17 | 17 |
Gross unrealized losses | -1 | -8 |
Fair Value | 79,149 | 101,348 |
Cash and cash equivalents [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 30,270 | 36,448 |
Gross unrealized gains | 1 | 1 |
Fair Value | 30,271 | 36,449 |
Investments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 48,863 | 64,891 |
Gross unrealized gains | 16 | 16 |
Gross unrealized losses | -1 | -8 |
Fair Value | 48,878 | 64,899 |
Cash and money market funds [Member] | Cash and cash equivalents [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 9,799 | 21,952 |
Fair Value | 9,799 | 21,952 |
Commercial paper [Member] | Cash and cash equivalents [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 20,471 | 14,496 |
Gross unrealized gains | 1 | 1 |
Fair Value | 20,472 | 14,497 |
Commercial paper, not included with cash and cash equivalents [Member] | Investments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 24,950 | 43,648 |
Gross unrealized gains | 3 | 5 |
Fair Value | 24,953 | 43,653 |
Corporate debt securities [Member] | Investments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 8,138 | 8,170 |
Gross unrealized gains | 11 | 7 |
Gross unrealized losses | -4 | |
Fair Value | 8,149 | 8,173 |
Asset backed securities [Member] | Investments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 15,775 | 13,073 |
Gross unrealized gains | 2 | 4 |
Gross unrealized losses | -1 | -4 |
Fair Value | $15,776 | $13,073 |
Cash_Cash_Equivalents_And_Inve3
Cash, Cash Equivalents And Investments (Summary Of Contractual Maturities Of Cash Equivalents And Available-For-Sale Investments) (Details) (USD $) | Mar. 31, 2015 |
In Thousands, unless otherwise specified | |
Cash, Cash Equivalents And Investments [Abstract] | |
Due in one year or less | $69,350 |
Inventory_Details
Inventory (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Inventory [Abstract] | ||
Purchased materials | $2,064 | $3,150 |
Work in process | 9,751 | 6,115 |
Finished goods | 1,642 | 2,070 |
Inventory | $13,457 | $11,335 |
Notes_Payable_Details
Notes Payable (Details) (USD $) | 1 Months Ended | 3 Months Ended | |
Feb. 28, 2013 | Mar. 31, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | |||
Purchase shares of common stock | 5,500,000 | 5,500,000 | |
Common stock aggregate exercise price | $2.63 | ||
Cash and cash equivalent minimum amount quarterly required | $2,000,000 | ||
Future cash flows weighted average market yield | 18.40% | 19.50% | |
Fair value of the financing derivative | 863,000 | 944,000 | |
Fair value of the notes | 14,100,000 | ||
Fair value of the warrants | 6,400,000 | ||
Allocation of notes calculated on a relative fair value basis | 20,500,000 | ||
Notes carrying value | 14,339,000 | 14,124,000 | |
Carrying value of the notes | 12,800,000 | ||
Original issue discount | 7,700,000 | ||
Debt discount that has yet to be amortized | 6,200,000 | 6,400,000 | |
Maturity date | 1-Feb-20 | ||
Deerfield promissory notes [Member] | |||
Debt Instrument [Line Items] | |||
Principal amount of notes | $20,500,000 | ||
Debt instrument, stated interest rate | 8.75% |
Stockholders_Equity_And_ShareB2
Stockholders' Equity And Share-Based Compensation (Narrative) (Details) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Feb. 28, 2013 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Purchase shares of common stock | 5,500,000 | 5,500,000 | |
Number of equity compensation plans | 3 | ||
Employee Stock Purchase Plan [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Shares issued | 532,217 | 1,048,604 | |
Common stock reserved for issuance | 946,329 |
Stockholders_Equity_And_ShareB3
Stockholders' Equity And Share-Based Compensation (Summary Of Stock Option Activity) (Details) (Stock Options [Member], USD $) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Additional shares reserved, Shares available for grant | 4,435,000 | |
$0.70 b 16.00 [Member] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Balances, December 31, 2014, Shares available for grant | 4,874,000 | |
Balances, December 31, 2014, Number of shares | 16,491,000 | |
Exercise price, lower range | $0.70 | |
Exercise price, upper range | $16 | |
Balances, December 31, 2014, Weighted average exercise price per share | $5.10 | |
$5.72 b 7.59 [Member] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Options granted, Shares available for grant | -2,474,000 | |
Options granted, Number of shares | 2,474,000 | |
Exercise price, lower range | 5.72 | |
Exercise price, upper range | 7.59 | |
Options granted, Weighted average exercise price per share | 6.55 | |
$0.70 b 5.18 [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 | -72,000 | |
Exercise price, lower range | 0.7 | |
Exercise price, upper range | 5.18 | |
Options exercised, Weighted average exercise price per share | 2.4 | |
$1.16 b 15.98 [Member] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Options canceled, Shares available for grant | 97,000 | |
Options canceled, Number of shares | -97,000 | |
Exercise price, lower range | 1.16 | |
Exercise price, upper range | 15.98 | |
Options canceled, Weighted average exercise price per share | 6.63 | |
$0.70 b 16.00 [Member] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Balances, December 31, 2014, Shares available for grant | 6,932,000 | |
Balances, December 31, 2014, Number of shares | 18,796,000 | |
Exercise price, lower range | 0.7 | |
Exercise price, upper range | 16 | |
Balances, December 31, 2014, Weighted average exercise price per share | 5.3 |
Stockholders_Equity_And_ShareB4
Stockholders' Equity And Share-Based Compensation (Schedule Of Stock-Based Compensation Expense) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation | $3,255 | $2,270 |
Cost of revenue [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation | 298 | 141 |
Research and development [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation | 1,255 | 886 |
Sales, general and administrative [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation | $1,702 | $1,243 |
Stockholders_Equity_And_ShareB5
Stockholders' Equity And Share-Based Compensation (Schedule Of Fair Value Of Employee Stock Options And Employee Stock Purchase Plan) (Details) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
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 |
Expected volatility | 70.00% | 70.00% |
Risk-free interest rate | 1.60% | 1.90% |
Dividend yield | ||
Employee Stock Purchase Plan [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Expected volatility | 70.00% | 70.00% |
Risk-free interest rate, minimum | 0.10% | 0.10% |
Risk-free interest rate, maximum | 0.60% | 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 |
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 |
Subsequent_Event_Details
Subsequent Event (Details) (Roche Agreement [Member], USD $) | 1 Months Ended | ||
In Millions, unless otherwise specified | Aug. 31, 2014 | Apr. 30, 2015 | Sep. 30, 2013 |
Subsequent Event [Line Items] | |||
Additional payment based upon achievements of milestones | $10 | ||
Maximum potential for additional payments to be recognized upon the achievement of certain development milestones | 40 | ||
Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Additional payment based upon achievements of milestones | 10 | ||
Maximum potential for additional payments to be recognized upon the achievement of certain development milestones | $20 |