Pacific Biosciences of California (PACB) 10-Q 5 May 17 2017 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Mar. 31, 2017	Apr. 30, 2017
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1
Trading Symbol	PACB
Entity Registrant Name	PACIFIC BIOSCIENCES OF CALIFORNIA, INC.
Entity Central Index Key	1,299,130
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		93,550,577

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Current assets
Cash and cash equivalents	$ 28,982	$ 16,765
Investments	27,068	55,213
Accounts receivable	10,441	11,421
Inventory	15,348	15,634
Prepaid expenses and other current assets	6,501	9,978
Total current assets	88,340	109,011
Property and equipment, net	42,449	14,560
Long-term restricted cash	4,500	4,500
Other long-term assets	219	9,813
Total assets	135,508	137,884
Current liabilities
Accounts payable	8,221	8,359
Accrued expenses	17,246	16,604
Deferred service revenue, current	6,683	7,130
Other liabilities, current	167	1,681
Notes payable, current	3,123
Total current liabilities	35,440	33,774
Deferred service revenue, non-current	1,484	1,297
Deferred rent, non-current	14,148	19
Other liabilities, non-current	1,741	1,664
Notes payable, non-current	13,302	16,106
Financing derivative	208	356
Total liabilities	66,323	53,216
Commitments and contingencies (Note 7)
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 93,540 and 92,677 shares at March 31, 2017 and December 31, 2016, respectively	94	93
Additional paid-in-capital	880,505	872,114
Accumulated other comprehensive income (loss)	(3)	5
Accumulated deficit	(811,411)	(787,544)
Total stockholders' equity	69,185	84,668
Total liabilities and stockholders' equity	$ 135,508	$ 137,884

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2017	Dec. 31, 2016
Condensed Consolidated Balance Sheets [Abstract]
Preferred Stock, par value	$ 0.001	$ 0.001
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	$ 0.001	$ 0.001
Common Stock, shares authorized	1,000,000,000	1,000,000,000
Common Stock, shares issued	93,540,000	92,677,000
Common Stock, shares outstanding	93,540,000	92,677,000

Condensed Consolidated Statemen

Condensed Consolidated Statements Of Operations And Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Revenue:
Product revenue	$ 21,294	$ 12,379
Service and other revenue	3,621	3,152
Contractual revenue		3,596
Total revenue	24,915	19,127
Cost of Revenue:
Cost of product revenue	11,362	6,880
Cost of service and other revenue	4,616	2,743
Total cost of revenue	15,978	9,623
Gross profit	8,937	9,504
Operating expense:
Research and development	16,971	16,361
Sales, general and administrative	15,265	11,708
Total operating expense	32,236	28,069
Operating loss	(23,299)	(18,565)
Interest expense	(838)	(779)
Other income (expense), net	270	(8)
Net loss	(23,867)	(19,352)
Other comprehensive loss:
Unrealized gain on investments	(8)	48
Comprehensive loss	$ (23,875)	$ (19,304)
Net loss per share:
Basic and diluted net loss per share	$ (0.26)	$ (0.23)
Shares used in computing basic and diluted net loss per share	92,970	83,604

Condensed Consolidated Stateme5

Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Cash flows from operating activities
Net loss	$ (23,867)	$ (19,352)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation	2,850	848
Amortization of debt discount and financing costs	319	268
Stock-based compensation	4,984	4,581
Other items	(145)	74
Changes in assets and liabilities
Accounts receivable	980	(2,865)
Inventory	(149)	(2,119)
Prepaid expenses and other assets	3,377	4,709
Accounts payable	(89)	(39)
Accrued expenses	(4,763)	(3,350)
Deferred service revenue	(260)	(705)
Deferred contractual revenue		(3,596)
Other liabilities	92	1,279
Net cash used in operating activities	(16,671)	(20,267)
Cash flows from investing activities
Purchase of property and equipment	(2,668)	(457)
Disposal of property and equipment		111
Purchase of investments	(10,419)	(43,383)
Sales of investments	3,662	4,949
Maturities of investments	34,905	15,539
Net cash provided by (used in) investing activities	25,480	(23,241)
Cash flows from financing activities
Proceeds from issuance of common stock from equity plans	3,408	3,423
Proceeds from issuance of common stock from at-the-market equity offering, net of issuance costs		26,536
Net cash provided by financing activities	3,408	29,959
Net increase (decrease) in cash and cash equivalents	12,217	(13,549)
Cash and cash equivalents at beginning of period	16,765	33,629
Cash and cash equivalents at end of period	28,982	20,080
Supplemental disclosure of non-cash investing and financing activities
Changes in unpaid property and equipment	5,356	$ 24
Changes in deposits for property and equipment paid in prior period	9,694
Property and equipment paid by landlord	$ 12,600

Overview

Overview	3 Months Ended
	Mar. 31, 2017
Overview [Abstract]
Overview	NOTE 1. OVERVIEW We design, develop and manufacture sequencing systems to help scientists resolve genetically complex problems. Based on our novel Single Molecule, Real-Time (SMRT ® ) Sequencing 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. In September 2015, we announced that we had launched a new nucleic acid sequencing platform, the PacBio Sequel™ System (the “Sequel System”), which will provide higher throughput, more scalability, a reduced footprint and lower sequencing project costs compared to the PacBio ® RS II System, while maintaining the existing benefits of our SMRT Technology. The names “Pacific Biosciences,” “PacBio,” “SMRT,” “SMRTbell,” “Sequel” and our logo are our trademarks. 

Summary Of Significant Accounti

Summary Of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2017
Summary Of Significant Accounting Policies [Abstract]
Summary Of Significant Accounting Policies	NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Consolidation Our consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States, or U.S. GAAP, as set forth in the Financial Accounting Standards Board, or FASB, Accounting Standards Codification, or ASC. The consolidated financial statements include the accounts of Pacific Biosciences and our wholly owned subsidiaries. All intercompany transactions and balances have been eliminated. Translation adjustments resulting from translating foreign subsidiaries’ results of operations and assets and liabilities into U.S. dollars are immaterial for all periods presented. Use of Estimates The preparation of financial statements in conformity with U.S. 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 a financing derivative and long-term notes, the valuation and recognition of share-based compensation, 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 first quarter of 2017, we recorded a charge to cost of revenue of $1.3 million relating to leased RS II instruments primarily due to a change in the estimated useful life of these instruments. Fair Value of Financial Instruments 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. The fair value hierarchy established under U.S. GAAP requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level input that is significant to the fair value measurement. The three levels of inputs that may be used to measure fair value are as follows: • Level 1: quoted prices in active markets for identical assets or liabilities; • Level 2: inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and • Level 3: unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. We consider an active market as one in which transactions for the asset or liability occurs with sufficient frequency and volume to provide pricing information on an ongoing basis. Conversely, we view an inactive market as one in which there are few transactions for the asset or liability, the prices are not current, or price quotations vary substantially either over time or among market makers. Where appropriate, our non-performance risk, or that of our counterparty, is considered in determining the fair values of liabilities and assets, respectively. We classify our cash deposits and money market funds within Level 1 of the fair value hierarchy because they are valued using bank balances or quoted market prices. We classify our investments as Level 2 instruments based on market pricing and other observable inputs. We did not classify any of our investments within Level 3 of the fair value hierarchy. Assets and liabilities measured at fair value are classified in their entirety based on the lowest level input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the entire fair value measurement requires management to make judgments and consider factors specific to the asset or liability. 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 March 31, 2017 and December 31, 2016 respectively (in thousands):      March 31, 2017 December 31, 2016  (in thousands) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total  Assets  Cash and cash equivalents:  Cash and money market funds $ 27,183 $ — $ — $ 27,183 $ 14,516 $ — $ — $ 14,516  Commercial paper — 1,799 — 1,799 — 2,249 — 2,249  US government & agency securities — — — — — — — —  Total cash and cash equivalents 27,183 1,799 — 28,982 14,516 2,249 — 16,765  Investments:  Commercial paper — 18,691 — 18,691 — 23,583 — 23,583  Corporate debt securities — 6,346 — 6,346 — 10,739 — 10,739  US government & agency securities — 2,004 — 2,004 — 20,579 — 20,579  Asset backed securities — 27 — 27 — 312 — 312  Total investments — 27,068 — 27,068 — 55,213 — 55,213  Long-term restricted cash:  Cash 4,500 — — 4,500 4,500 — — 4,500  Total assets measured at fair value $ 31,683 $ 28,867 $ — $ 60,550 $ 19,016 $ 57,462 $ — $ 76,478   Liabilities  Financing derivative $ — $ — $ 208 $ 208 $ — $ — $ 356 $ 356  Total liabilities measured at fair value $ — $ — $ 208 $ 208 $ — $ — $ 356 $ 356   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. Refer to “Note 6. Notes Payable” for a detailed description and valuation approach. 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 fair value of the Financial Derivative during the three -month period ended March 31, 2017 (in thousands):       Financing Derivative Amount  Balance as of December 31, 2016 $ 356  Gain on change in estimated fair value (148)  Balance as of March 31, 2017 $ 208  During the three-month period ended March 31, 2017, there were no transfers between Level 1, Level 2, or Level 3 assets or liabilities reported at fair value on a recurring basis and our valuation techniques did not change compared to the prior year. 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 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 6. Notes Payable”) 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 10.1% and 10.6% weighted average market yield at March 31, 2017 and December 31, 2016, respectively. Refer to “Note 6. Notes Payable” for additional details regarding the Notes. The estimated fair value and carrying value of the Notes are as follows (in thousands): The estimated fair value and carrying value of the Notes are as follows (in thousands):       March 31, 2017 December 31, 2016  Fair Value Carrying Value Fair Value Carrying Value  Notes payable $ 20,083 $ 16,425 $ 19,788 $ 16,106  Net L oss per Share The following outstanding common stock options and warrants to purchase common stock were excluded from the computation of diluted net loss per share for the periods presented because including them would have had an anti-dilutive effect:      Three Months Ended March 31,  (in thousands) 2017 2016  Options outstanding 26,656 22,542  Warrants to purchase common stock — 1,682   Recent Accounting Pronouncements  Recently Adopted Accounting Standards In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting , which amends the current stock compensation guidance. The amendments simplify the accounting for the taxes related to stock based compensation, including adjustments to how excess tax benefits and a company's payments for tax withholdings should be classified. Furthermore, the amendments allow the entities to make an accounting policy election to either estimate forfeitures or recognize forfeitures as they occur. If an election is made, the change to recognize forfeitures as they occur must be adopted using a modified retrospective approach with a cumulative effect adjustment recorded to opening retained earnings. The standard is effective for fiscal periods beginning after December 15, 2016, with early adoption permitted. We adopted this guidance as of January 1, 2017. Prior to adoption, the excluded windfall deductions for federal and state purposes were $6.0 million and $0.6 million, respectively. Upon adoption of ASU 2016-09, we recognized the excluded windfall deductions as a deferred tax asset with a corresponding offset to valuation allowance. The total deferred tax assets were $321.5 million as of January 1, 2017 , which was fully offset by a valuation allowance. Further, we did not elect an accounting policy change to record forfeitures as they occur and thus we continue to estimate forfeitures at each period. During 2016, we adopted ASU 2014-15 , Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU 2014-15”). ASU 2014-15 requires companies to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosure. Management performed such an assessment and concluded there was not substantial doubt about our ability to continue as a going concern. Since our inception, we have financed our operations primarily through product sales, issuance of common stock and convertible preferred stock, in addition to our debt facility and payments from Roche pursuant to the terms of the Roche Agreement. Cash, cash equivalents and investments at March 31, 2017 totaled $56.1 million, compared to $72.0 million at December 31, 2016. We believe that our existing cash, cash equivalents and investments will be sufficient to fund our projected operating requirements for at least 12 months; however, we plan to raise additional capital in the future. Our view regarding sufficiency of cash and liquidity is primarily based on our financial forecast for 2017 and into the first quarters of 2018, which is impacted by various assumptions regarding demand for our products. Generally, we expect demand for our products to increase for the remainder of 2017 and into 2018 as compared to 2016, and this expectation is included in forecasts of future cash and liquidity availability. These expectations are based on our current operating and financing plans, which are subject to change. Factors that may affect our capital needs include, but are not limited to, slower than expected adoption of our products resulting in lower sales of our products and services; future acquisitions; our ability to obtain new collaboration and customer arrangements; the progress of our research and development programs; initiation or expansion of research programs and collaborations; litigation costs, including the costs involved in preparing, filing, prosecuting, defending and enforcing intellectual property rights; the purchase of patent licenses; the costs associated with the ongoing transition to our new facilities in Menlo Park, California; and other factors. To the extent we raise additional funds through the sale of equity or convertible debt securities, the issuance of such securities will result in dilution to our stockholders. There can be no assurance that such funds will be available on favorable terms, or at all. If adequate funds are not available, we may be required to curtail operations significantly or to obtain funds by entering into collaboration or debt agreements on unattractive terms. Our inability to raise capital could have a material adverse effect on our business, financial condition and results of operations.  Recently Issued Accounting Standards In February 2016, the FASB issued ASU 2016-02, Leases. The guidance in ASU 2016-02 supersedes the lease recognition requirements in ASC Topic 840, Leases . ASU 2016-02 requires an entity to recognize assets and liabilities arising from a lease for both financing and operating leases, along with additional qualitative and quantitative disclosures. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. We are currently evaluating the impact of the adoption of this standard on our consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers , requiring an entity to recognize the amount of 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 U.S. GAAP when it becomes effective and permits the use of either the retrospective or the cumulative effect transition method. ASU 2014-09 is effective for periods beginning after December 15, 2017, with early adoption permitted but not earlier than the original effective date. Accordingly, the updated standard is effective for us in the first quarter of 2018. We are currently evaluating the new guidance to determine the impact it may have on our consolidated financial statements. While we are continuing to assess all potential impacts of the new accounting standard, we currently believe the most significant impact relates to our accounting for the incremental cost of obtaining a contract with a customer (i.e., sales commission). Under current GAAP, the cost incurred to obtain a contract is recognized in the period the expense is incurred while under the new standard, the incremental costs to obtain the contract will be allocated to the performance obligations using the relative fair value of these obligations, recognized as an asset and amortized over the useful life of that asset. We are still in the process of evaluating the impact of this new standard on these arrangements. Due to the complexity of certain of our contracts, the actual revenue recognition treatment required under the new standard for these arrangements may be dependent on contract-specific terms and vary in some instances. 

Contractual Revenue

Contractual Revenue	3 Months Ended
	Mar. 31, 2017
Contractual Revenue [Abstract]
Contractual Revenue	NOTE 3. CONTRACTUAL REVENUE In September 2013, we entered into the “Roche Agreement” with Roche, pursuant to which we accounted for, and recognized as revenue, the up-front payment received thereunder using the proportional performance method over the periods in which the delivery of elements pursuant to the Roche Agreement occurs. We recognized revenue under the Roche Agreement using a straight-line convention over the service periods of the deliverables as this method approximated our performance of services pursuant to the Roche Agreement. Out of the $35.0 million upfront cash payment received, quarterly amortization of $1.7 million was recognized as contractual revenue from the fourth quarter of 2013 to the fourth quarter of 2014. Beginning in 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 and quarterly amortization of $3.6 million was recognized as contractual revenue for each of the four quarters of 2015 and for each of the first three quarters of 2016. As of September 30, 2016, the total deferred contractual revenue balance was $1.3 million, relating to the amount allocated to the deliverable of our participation on the joint steering committee. In December 2016, we received notice from Roche that Roche had elected to terminate the Roche Agreement for convenience and the termination became effective February 10, 2017 , which was 60 days after the date of the notice in accordance with the terms of the Roche Agreement. Upon such notice in December 2016, no further participation on the joint steering committee was deemed necessary; as such, we recognized the entire remaining unamortized deferred revenue of $1.3 million as contractual revenue in the fourth quarter of 2016. As a result of Roche’s termination of the Roche Agreement, it may be more difficult for us to successfully market, sell and commercialize our products into the markets that Roche would have addressed under the Roche Agreement. Further, the Roche Agreement provided for additional payments totaling $40.0 million upon the achievement of certain development milestones, all of which have previously been received and recognized as revenue. Consideration from development milestones is recognized in the period in which a milestone is achieved only if the milestone is considered substantive in its entirety. We achieved the first development milestone under the Roche Agreement and recognized the related $10.0 million as contractual revenue during the year ended December 31, 2014. We achieved the second and the third (final) development milestones under the Roche Agreement and recognized the related $10.0 million and $20.0 million as contractual revenue during the three-month periods ended June 30, 2015 and December 31, 2015, respectively. There are no other milestones remaining to be achieved. 

Cash, Cash Equivalents And Inve

Cash, Cash Equivalents And Investments	3 Months Ended
	Mar. 31, 2017
Cash, Cash Equivalents And Investments [Abstract]
Cash, Cash Equivalents And Investments	NOTE 4. CASH, CASH EQUIVALENTS AND INVESTMENTS The following tables summarize our cash, cash equivalents and investments as of March 31, 2017 and December 31, 201 6 (in thousands):      As of March 31, 2017  Gross Gross  Amortized unrealized unrealized Fair  Cost gains losses Value  Cash and cash equivalents:  Cash and money market funds $ 27,183 $ — $ — $ 27,183  Commercial paper 1,799 — — 1,799  Total cash and cash equivalents 28,982 — — 28,982  Investments:  Commercial paper 18,691 2 (2) 18,691  Corporate debt securities 6,347 1 (2) 6,346  Asset backed securities 27 — — 27  US government & agency securities 2,006 — (2) 2,004  Total investments 27,071 3 (6) 27,068  Total cash, cash equivalents and investments $ 56,053 $ 3 $ (6) $ 56,050   Long-term restricted cash:  Cash $ 4,500 $ — $ — $ 4,500    As of December 31, 2016  Gross Gross  Amortized unrealized unrealized Fair  Cost gains losses Value  Cash and cash equivalents:  Cash and money market funds $ 14,516 $ — $ — $ 14,516  Commercial paper 2,249 — — 2,249  Total cash and cash equivalents 16,765 — — 16,765  Investments:  Commercial paper 23,581 5 (3) 23,583  Corporate debt securities 10,741 1 (3) 10,739  Asset backed securities 312 — — 312  US government & agency securities 20,574 7 (2) 20,579  Total investments 55,208 13 (8) 55,213  Total cash, cash equivalents and investments $ 71,973 $ 13 $ (8) $ 71,978   Long-term restricted cash:  Cash $ 4,500 $ — $ — $ 4,500   The following table summarizes the contractual maturities of our cash equivalents and available-for-sale investments, excluding money market funds, as of March 31, 2017 :         (in thousands) Fair Value  Due in one year or less $ 28,867  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	3 Months Ended
	Mar. 31, 2017
Balance Sheet Components [Abstract]
Balance Sheet Components	NOTE 5 . BALANCE SHEET COMPONENTS  Inventory  As of March 31, 2017 and December 31, 2016, our inventory consisted of the following components:      March 31, December 31,  (in thousands) 2017 2016  Purchased materials $ 5,573 $ 4,817  Work in process 5,967 7,287  Finished goods 3,808 3,530  Inventory $ 15,348 $ 15,634  Prepaid Expenses and Other Current Assets As of March 31, 2017 and December 31, 2016, our prepaid expenses and other current assets consisted of the following components:     March 31, December 31,  (in thousands) 2017 2016  Receivable from Existing Landlord $ 2,437 $ 5,000  Rent deposits for O'Brien building 2,160 2,160  Prepaid expenses 1,323 2,342  Other current assets 581 476  Prepaid expenses and other current assets $ 6,501 $ 9,978  In January 2017, we entered into a Third Lease Amendment Agreement with the Existing Landlord that increased the amount of the payments receivable from the Existing Landlord by $65,000 . In February 2017 and March 2017, we received payment s of $1,045,000 and $1,583,000 , respectively, from the Existing Landlord, resulting in a balance of $2,437,000 remaining in “Receivable from Existing Landlord” as of March 31, 2017. Refer to “Note 7. Commitments and Contingencies” for additional details relating to our lease agreements.  Other Long-term Assets As of March 31, 2017 and December 31, 2016, our other long-term assets consisted of the following components:      March 31, December 31,  (in thousands) 2017 2016  Rent deposits and tenant improvements for O'Brien building $ — $ 9,641  Other 219 172  Other long-term assets $ 219 $ 9,813  In January 2017 we moved into the O ’Brien building, and accordingly, the $9.6 million tenant improvements balance recorded in “Other Long-term Assets” at December 31, 2016 was transferred into leasehold improvements under “Property and Equipment” in the three-month period ended March 31, 2017.  Property and Equipment, Net As of March 31, 2017 and December 31, 2016, our property and equipment, net, consisted of the following components:     March 31, December 31,  (in thousands) 2017 2016  Building $ 1,160 $ 1,160  Laboratory equipment and machinery 24,614 23,337  Leasehold improvements 38,109 8,138  Computer equipment 8,338 7,170  Software 4,600 5,189  Furniture and fixtures 2,390 823  Construction in progress 1,378 5,772  80,589 51,589  Less: Accumulated depreciation (38,140) (37,029)  Property and equipment, net $ 42,449 $ 14,560  By the end of the first quarter of 2017, improvements associated with our O’Brien premises were substantially completed. As a result, during the first quarter of 2017 we capitalized $28.9 million of tenant improvements. A s the premises were completed in phases during the first quarter 2017, tenant improvements were placed into service in phases once construction was substantially complete and the related asset was ready for its intended use. Refer to “Note 7. Commitments and Contingencies” for additional details. 

Notes Payable

Notes Payable	3 Months Ended
	Mar. 31, 2017
Notes Payable [Abstract]
Notes Payable	NOTE 6. NOTES PAYABLE Facility Agreement 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 5.5 million shares of common stock immediately exercisable at an exercise price per share initially equal to $2.63 (the “Warrants”). During the year ended December 31, 2016, warrants to purchase 5.5 million shares of common stock were net exercised, resulting in the issuance of approximately 4.2 million shares. The cashless net exercises of the warrants did not result in any additional funds being collected by us. As of December 31, 2016, no warrants remained outstanding. 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. The Facility Agreement has a maximum term of seven years from inception. Subsequent to 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, the Notes holders may elect to receive 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, as payment of the Notes. This right is subject to certain exceptions set forth in the Facility Agreement. The Notes holders have 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 Agreement may become immediately due and payable upon an Event of Default (as defined in the Facility Agreement), in which case the Notes holders 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. 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 a 10.6% and 13.5% weighted average market yield at December 31, 2016 and December 31, 2015, respectively. The estimated fair value of the Financing Derivative as of December 31, 2016 and December 31, 2015 was $0.4 million and $0.6 million , respectively. Notes We initially recorded the Notes and Warrants at $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, 2017 and December 31, 2016, debt discount of $4.0 million and $4.3 million, respectively, remained to be amortized through February 2020 , the maturity of the Notes. As of March 31, 2017, $3.1 million out of the total $20.5 million principal payment was reclassified from “Notes payable, non-current” to “Notes payable, current”, as that portion of the principal becomes due in the first quarter of 2018. 

Commitments And Contingencies

Commitments And Contingencies	3 Months Ended
	Mar. 31, 2017
Commitments And Contingencies [Abstract]
Commitments And Contingencies	NOTE 7. COMMITMENTS AND CONTINGENCIES Leases In December 2009, we entered into a lease agreement for a manufacturing and office facility in Menlo Park. For the facility to meet our needs and operating requirements, substantial tenant improvements, including improvements to the structural elements and principal operating systems of the facility, were necessary. The lessor provided a tenant improvement allowance of $1.8 million to apply towards the necessary improvements and we remained obligated for additional amounts over the afforded allowance. Due to our involvement in and the nature of the renovations made to the facility and our obligations to fund the costs of renovations exceeding the incentives afforded to us, we account for the facility as if we are the owner. Accordingly, we recorded $3.0 million of building and leasehold improvement assets, reflecting the $1.2 million fair value of the facility prior to commencing renovations and the $1.8 million of landlord incentives within property and equipment, net and a corresponding liability recorded to facility financing obligation. As a result of the lease amendment agreement described below, future rent expense associated with our existing Menlo Park facility leases was reduced to zero . The remaining long-term facility financing obligations associated with these leases, presented as “Other liabilities, non-current” on the condensed consolidated balance sheets at March 31, 2017 and December 31, 2016, were both $1.7 million. Lease Amendment Agreement On July 23, 2015, we entered into a Lease Amendment Agreement (the “Lease Amendment Agreement”) with Peninsula Innovation Partners, LLC (the “Existing Landlord”), which amends the terms and conditions of certain of our existing Menlo Park facility real property leases. The Lease Amendment Agreement provides for, among other things, amendments of the term for certain of the leases with the Existing Landlord, the termination of all renewal, expansion and extension rights contained in any of the existing leases with the Existing Landlord (including our options to extend the terms for certain of the existing leases for two consecutive five-year periods), as well as rent abatement for a specified period of time. As consideration for our agreement to amend the existing leases pursuant to the Lease Amendment Agreement, and subject to the terms and conditions contained therein, we became eligible to receive up to four payments of $5.0 million each from the Existing Landlord over time (the “Landlord Payments”), and rent abatement for the remainder of the lease. In the event that we breach any of the leases and fail to cure such breach within the time permitted, the Existing Landlord would have no obligation to make the final $5.0 million payment. On September 1, 2015, the permit process related to an architectural approval and a change of use permit with respect to our new premises at 1305 O’Brien Drive (formerly 1315 O’Brien Drive), Menlo Park, California (the “O’Brien Premises”) was completed, which satisfied the contingencies under the Lease Amendment Agreement. As a result, we recorded $23.0 million in “Gain on lease amendments” in the consolidated statements of operations and comprehensive loss for the three-month period ended September 30, 2015, reflecting that our rent payments were reduced to zero for the remaining term of our existing Menlo Park facility real property leases, and the aggregate of $20.0 million in Landlord Payments became receivable and any associated financing obligation was revalued. Of the $20.0 million remaining Landlord Payments, the first $5.0 million Landlord Payment was received in September 2015, the second $5.0 million Landlord Payment was received in February 2016 and the third $5.0 million Landlord Payment was received in August 2016. In June 2016, we entered into a Second Lease Amendment Agreement with the Existing Landlord that modified the payment schedule for the final $5.0 million. At December 31, 2016, the final $5.0 million landlord payment was recorded in “Prepaid Expenses and Other Current Assets” in the condensed consolidated balance sheets. In January 2017, we entered into a Third Lease Amendment Agreement with the Existing Landlord that increased the amount of the final $5.0 million landlord payment by $65,000 . In February 2017 and March 2017, we received payments of $1,045,000 and $1,583,000 , respectively, resulting in a remaining balance of $2,437,000 in “Prepaid Expenses and Other Current Assets” in the condensed consolidated balance sheets at March 31, 2017. O’Brien Lease Agreement On July 22, 2015, we entered into a new lease agreement (the “O’Brien Lease”) with respect to the O’Brien Premises. The term of the O’Brien Lease is one hundred thirty-two (132) months, commencing on the date that is the later of April 15, 2016 or the date on which the O’Brien Premises landlord has substantially completed certain shell improvements and tenant improvements. In December 2016, we entered into an amendment to the O’Brien Lease which defined the commencement date of the lease to be October 25, 2016, notwithstanding that such substantial completion did not occur until the first quarter of 2017. Base monthly rent will be abated for the first six (6) months of the lease term and thereafter will be $540,000 per month during the first year of the lease term, with specified annual increases thereafter until reaching $711,000 per month during the last twelve (12) months of the lease term. We were required to pay $2.2 million in prepaid rent which will be applied to the monthly rent installments due for the first to fourth months after the rent abatement period; and, as such, $2.2 million was recorded in “Prepaid expense and other current assets” in the condensed consolidated balance sheet as of both Mach 31, 2017 and December 31, 2016. We were required to establish a deposit of $4.5 million in the form of a letter of credit in October 2015; and, as such, $4.5 million was recorded in “Long-term restricted cash” in the condensed consolidated balance sheet as of both Mach 31, 2017 and December 31, 2016. The landlord was obligated to construct certain warm shell improvements at the landlord’s cost and expense and provide us with a tenant improvement allowance in the amount of $12.6 million. Construction was completed in phases and we began moving into the O’Brien Premises during January 2017. By the end of the first quarter of 2017, improvements associated with the entire O’Brien Premises were substantially completed. As a result, during the first quarter of 2017 we capitalized $28.9 million of tenant improvements, of which $12.6 million was paid by the landlord as a tenant improvement allowance. As the $12.6 million tenant improvement allowance is accounted for as a lease incentive, $12.6 million was recorded to “Deferred rent, non-current”, which will be amortized over the lease term of approximately 11 years. In addition, as the premises were completed in phases during the first quarter 2017, tenant improvements were placed into service in phases once construction was substantially complete and the related asset was ready for its intended use. As of March 31, 2017, the future annual minimum lease payments for the O’Brien lease were as follows:    Amount  Years ending December 31, (in thousands)  remaining of 2017 $ 4,251  2018 6,822  2019 6,930  2020 7,056  2021 7,272  Thereafter 46,710  Total minimum lease payments $ 79,041  Rent expense was $1.6 million and $53,000 for the three-month periods ended March 31, 2017 and 2016, respectively.  Legal On November 2, 2016, we filed a complaint against Oxford Nanopore Technologies Ltd., Oxford Nanopore Technologies, Inc. (“ONT Inc.”) and Metrichor, Ltd. (“Metrichor” and, together with ONT Inc., “ONT”) with the U.S. International Trade Commission (“USITC”) for patent infringement. On December 5, 2016, the USITC provided notice that an investigation had been instituted based on the complaint. We are seeking exclusionary relief with respect to several ONT products, including ONT’s MinION and PromethION devices. The complaint is based on our U.S. Patent No. 9,404,146, entitled “Compositions and methods for nucleic acid sequencing” which covers novel methods for sequencing single nucleic acid molecules using linked double-stranded nucleic acid templates, providing improved sequencing accuracy. On March 1, 2017, we filed an amended complaint to add a second patent in the same patent family, U.S. Patent No. 9,542,527, which was granted on January 10, 2017, to the investigation. We are seeking, among other things, an exclusion order permanently barring entry of infringing ONT products into the United States, and a cease and desist order preventing ONT from advertising and selling infringing products in the United States. On February 2, 2017, we filed a claim in the High Court of England and Wales against Oxford Nanopore Technologies Ltd. (“ONT Ltd.”) and Metrichor for infringement of Patent EP(UK) 3 025 542, which is in the same patent family as the patents asserted in the USITC action referred to above. We are seeking remedies including injunctive relief, damages, and costs. On March 15, 2017, we filed a complaint in the U.S. District Court for the District of Delaware against ONT Inc. for patent infringement. The complaint is based on our U.S. Patent No. 9,546,400, entitled “Nanopore sequencing using n-mers” which covers novel methods for nanopore sequencing of nucleic acid molecules using the signals from multiple monomeric units. This patent was granted on January 17, 2017. We are seeking remedies including injunctive relieve, damages and costs. On April 21, 2017, ONT Ltd. and Harvard University filed a claim against us in the High Court of England and Wales for infringement of Patent EP(UK) 1 192 453, a patent owned by Harvard University and entitled “Molecular and atomic scale evaluation of biopolymers,” and for which ONT Ltd. alleges it holds an exclusive license. ONT Ltd. and Harvard University are seeking remedies including injunctive relief, damages, and costs. On April 25, 2017, ONT Ltd. announced that it also had filed a claim against us in the District Court of Mannheim, Germany, for infringement of the same patent. Litigation is inherently unpredictable, and it is too early in the proceedings to predict the outcome of these lawsuits or any impact they may have on us. As such, the estimated financial effect associated with th ese complaint s cannot be made as of this 10- Q filing time. From time to time, we may also be involved in a variety of other claims, lawsuits, investigations and proceedings relating to securities laws, product liability, patent infringement, contract disputes, employment and other matters that arise in the normal course of our business. In addition, third parties may, from time to time, assert claims against us in the form of letters and other communications. We record a provision for contingent losses when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. We currently do not believe that the ultimate outcome of any of the matters described above is probable or reasonably estimable, or that these matters will have a material adverse effect on our business; however, the results of litigation and claims are inherently unpredictable. Regardless of the outcome, litigation can have an adverse impact on us because of litigation and settlement costs, diversion of management resources and other factors. 

Stockholders' Equity

Stockholders' Equity	3 Months Ended
	Mar. 31, 2017
Stockholders' Equity [Abstract]
Stockholders' Equity	NOTE 8. STOCKHOLDERS’ E QUITY Equity Offering During the three-month period ended March 31, 2016, we issued 3.1 million shares of our common stock at an average price of $8.80 per share through our “at-the-market” offering, resulting in net proceeds of $26.5 million. During the three-month period ended March 31, 2017 we did not issue any shares pursuant to our “at-the-market” offering program; however, in February 2017, we filed an additional prospectus supplement pursuant to which we may offer and sell, from time to time, additional shares of our common stock having an aggregate offering price of up to $60.0 million. We pay a commission equal to 3% of the gross proceeds from the sale of shares of our common stock under the sales agreement. We are not obligated to sell shares of our common stock under the sales agreement. Subject to certain exceptions set forth in our existing Facility Agreement, holders of our Notes may elect to receive 25% of the net proceeds from financing activities that include an equity component as prepayment of the Notes to be applied first, to accrued and unpaid interest and second, to principal. However, in April 2017 holders representing a majority of the aggregate principal amount of the outstanding Notes waived such right in connection with the issuance and sale of shares of common stock under our current “at-the-market” offering. Warrants In connection with the execution of the Facility Agreement, we issued immediately exercisable warrants to purchase 5.5 million shares of common stock at an exercise price per share initially equal to $2.63 , all of which were outstanding at December 31, 2015. 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 or similar transaction . During the three - month periods ended March 31, 2016, warrants to purchase 3,818,000 shares of common stock were net exercised, resulting in the issuance of approximately 3.0 million shares with all warrants being fully net exercised by December 31, 2016. As of March 31, 2017, no warrants remained outstanding. Equity Plans As of March 31, 2017, 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 our stock option plans for the three -month period ended March 31, 2017 (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, 2016 6,835 22,501 $ 1.16 – 16.00 $ 6.30  Additional shares reserved 4,634  Options granted (4,708) 4,708 4.78 – 5.27 5.26  Options exercised — (114) 1.16 – 4.55 2.70  Options canceled 439 (439) 1.16 – 11.64 7.34  Balances, March 31, 2017 7,200 26,656 $ 1.16 – 16.00 $ 6.11  Shares issued under our ESPP totaled 750,005 and 668,566 shares during the three -month periods ended March 31, 2017 and 2016, respectively. As of March 31, 2017 , 1,841,595 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,  2017 2016  Cost of revenue $ 523 $ 499  Research and development 2,030 1,910  Sales, general and administrative 2,431 2,172  Total stock-based compensation expense $ 4,984 $ 4,581  W e 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 2017 2016  Expected term in years 6.1 6.1  Expected volatility 70% 70%  Risk-free interest rate 2.1% 1.5%  Dividend yield — —  We estimate the value of employee stock purchase rights on the grant date using the Black-Scholes option pricing model. The fair value of shares to be purchased under our ESPP was estimated using the following assumptions:     Three-Month Periods Ended March 31,  ESPP 2017 2016  Expected term in years 0.5 - 2.0 0.5 - 2.0  Expected volatility 70% 70%  Risk-free interest rate 0.8% - 1.3% 0.5% - 0.9%  Dividend yield — —    

Summary Of Significant Accoun14

Summary Of Significant Accounting Policies (Policy)	3 Months Ended
	Mar. 31, 2017
Summary Of Significant Accounting Policies [Abstract]
Basis Of Presentation And Consolidation	Basis of Presentation and Consolidation Our consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States, or U.S. GAAP, as set forth in the Financial Accounting Standards Board, or FASB, Accounting Standards Codification, or ASC. The consolidated financial statements include the accounts of Pacific Biosciences and our wholly owned subsidiaries. All intercompany transactions and balances have been eliminated. Translation adjustments resulting from translating foreign subsidiaries’ results of operations and assets and liabilities into U.S. dollars are immaterial for all periods presented.
Use Of Estimates	Use of Estimates The preparation of financial statements in conformity with U.S. 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 a financing derivative and long-term notes, the valuation and recognition of share-based compensation, 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 first quarter of 2017, we recorded a charge to cost of revenue of $1.3 million relating to leased RS II instruments primarily due to a change in the estimated useful life of these instruments.
Fair Value Of Financial Instruments	Fair Value of Financial Instruments 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. The fair value hierarchy established under U.S. GAAP requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level input that is significant to the fair value measurement. The three levels of inputs that may be used to measure fair value are as follows: • Level 1: quoted prices in active markets for identical assets or liabilities; • Level 2: inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and • Level 3: unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. We consider an active market as one in which transactions for the asset or liability occurs with sufficient frequency and volume to provide pricing information on an ongoing basis. Conversely, we view an inactive market as one in which there are few transactions for the asset or liability, the prices are not current, or price quotations vary substantially either over time or among market makers. Where appropriate, our non-performance risk, or that of our counterparty, is considered in determining the fair values of liabilities and assets, respectively. We classify our cash deposits and money market funds within Level 1 of the fair value hierarchy because they are valued using bank balances or quoted market prices. We classify our investments as Level 2 instruments based on market pricing and other observable inputs. We did not classify any of our investments within Level 3 of the fair value hierarchy. Assets and liabilities measured at fair value are classified in their entirety based on the lowest level input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the entire fair value measurement requires management to make judgments and consider factors specific to the asset or liability. 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 March 31, 2017 and December 31, 2016 respectively (in thousands):      March 31, 2017 December 31, 2016  (in thousands) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total  Assets  Cash and cash equivalents:  Cash and money market funds $ 27,183 $ — $ — $ 27,183 $ 14,516 $ — $ — $ 14,516  Commercial paper — 1,799 — 1,799 — 2,249 — 2,249  US government & agency securities — — — — — — — —  Total cash and cash equivalents 27,183 1,799 — 28,982 14,516 2,249 — 16,765  Investments:  Commercial paper — 18,691 — 18,691 — 23,583 — 23,583  Corporate debt securities — 6,346 — 6,346 — 10,739 — 10,739  US government & agency securities — 2,004 — 2,004 — 20,579 — 20,579  Asset backed securities — 27 — 27 — 312 — 312  Total investments — 27,068 — 27,068 — 55,213 — 55,213  Long-term restricted cash:  Cash 4,500 — — 4,500 4,500 — — 4,500  Total assets measured at fair value $ 31,683 $ 28,867 $ — $ 60,550 $ 19,016 $ 57,462 $ — $ 76,478   Liabilities  Financing derivative $ — $ — $ 208 $ 208 $ — $ — $ 356 $ 356  Total liabilities measured at fair value $ — $ — $ 208 $ 208 $ — $ — $ 356 $ 356   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. Refer to “Note 6. Notes Payable” for a detailed description and valuation approach. 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 fair value of the Financial Derivative during the three -month period ended March 31, 2017 (in thousands):       Financing Derivative Amount  Balance as of December 31, 2016 $ 356  Gain on change in estimated fair value (148)  Balance as of March 31, 2017 $ 208  During the three-month period ended March 31, 2017, there were no transfers between Level 1, Level 2, or Level 3 assets or liabilities reported at fair value on a recurring basis and our valuation techniques did not change compared to the prior year. 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 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 6. Notes Payable”) 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 10.1% and 10.6% weighted average market yield at March 31, 2017 and December 31, 2016, respectively. Refer to “Note 6. Notes Payable” for additional details regarding the Notes. The estimated fair value and carrying value of the Notes are as follows (in thousands): The estimated fair value and carrying value of the Notes are as follows (in thousands):       March 31, 2017 December 31, 2016  Fair Value Carrying Value Fair Value Carrying Value  Notes payable $ 20,083 $ 16,425 $ 19,788 $ 16,106 
Net Loss Per Share	Net L oss per Share The following outstanding common stock options and warrants to purchase common stock were excluded from the computation of diluted net loss per share for the periods presented because including them would have had an anti-dilutive effect:      Three Months Ended March 31,  (in thousands) 2017 2016  Options outstanding 26,656 22,542  Warrants to purchase common stock — 1,682  
Recent Accounting Pronouncements	NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Consolidation Our consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States, or U.S. GAAP, as set forth in the Financial Accounting Standards Board, or FASB, Accounting Standards Codification, or ASC. The consolidated financial statements include the accounts of Pacific Biosciences and our wholly owned subsidiaries. All intercompany transactions and balances have been eliminated. Translation adjustments resulting from translating foreign subsidiaries’ results of operations and assets and liabilities into U.S. dollars are immaterial for all periods presented. Use of Estimates The preparation of financial statements in conformity with U.S. 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 a financing derivative and long-term notes, the valuation and recognition of share-based compensation, 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 first quarter of 2017, we recorded a charge to cost of revenue of $1.3 million relating to leased RS II instruments primarily due to a change in the estimated useful life of these instruments. Fair Value of Financial Instruments 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. The fair value hierarchy established under U.S. GAAP requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level input that is significant to the fair value measurement. The three levels of inputs that may be used to measure fair value are as follows: • Level 1: quoted prices in active markets for identical assets or liabilities; • Level 2: inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and • Level 3: unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. We consider an active market as one in which transactions for the asset or liability occurs with sufficient frequency and volume to provide pricing information on an ongoing basis. Conversely, we view an inactive market as one in which there are few transactions for the asset or liability, the prices are not current, or price quotations vary substantially either over time or among market makers. Where appropriate, our non-performance risk, or that of our counterparty, is considered in determining the fair values of liabilities and assets, respectively. We classify our cash deposits and money market funds within Level 1 of the fair value hierarchy because they are valued using bank balances or quoted market prices. We classify our investments as Level 2 instruments based on market pricing and other observable inputs. We did not classify any of our investments within Level 3 of the fair value hierarchy. Assets and liabilities measured at fair value are classified in their entirety based on the lowest level input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the entire fair value measurement requires management to make judgments and consider factors specific to the asset or liability. 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 March 31, 2017 and December 31, 2016 respectively (in thousands):      March 31, 2017 December 31, 2016  (in thousands) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total  Assets  Cash and cash equivalents:  Cash and money market funds $ 27,183 $ — $ — $ 27,183 $ 14,516 $ — $ — $ 14,516  Commercial paper — 1,799 — 1,799 — 2,249 — 2,249  US government & agency securities — — — — — — — —  Total cash and cash equivalents 27,183 1,799 — 28,982 14,516 2,249 — 16,765  Investments:  Commercial paper — 18,691 — 18,691 — 23,583 — 23,583  Corporate debt securities — 6,346 — 6,346 — 10,739 — 10,739  US government & agency securities — 2,004 — 2,004 — 20,579 — 20,579  Asset backed securities — 27 — 27 — 312 — 312  Total investments — 27,068 — 27,068 — 55,213 — 55,213  Long-term restricted cash:  Cash 4,500 — — 4,500 4,500 — — 4,500  Total assets measured at fair value $ 31,683 $ 28,867 $ — $ 60,550 $ 19,016 $ 57,462 $ — $ 76,478   Liabilities  Financing derivative $ — $ — $ 208 $ 208 $ — $ — $ 356 $ 356  Total liabilities measured at fair value $ — $ — $ 208 $ 208 $ — $ — $ 356 $ 356   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. Refer to “Note 6. Notes Payable” for a detailed description and valuation approach. 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 fair value of the Financial Derivative during the three -month period ended March 31, 2017 (in thousands):       Financing Derivative Amount  Balance as of December 31, 2016 $ 356  Gain on change in estimated fair value (148)  Balance as of March 31, 2017 $ 208  During the three-month period ended March 31, 2017, there were no transfers between Level 1, Level 2, or Level 3 assets or liabilities reported at fair value on a recurring basis and our valuation techniques did not change compared to the prior year. 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 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 6. Notes Payable”) 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 10.1% and 10.6% weighted average market yield at March 31, 2017 and December 31, 2016, respectively. Refer to “Note 6. Notes Payable” for additional details regarding the Notes. The estimated fair value and carrying value of the Notes are as follows (in thousands): The estimated fair value and carrying value of the Notes are as follows (in thousands):       March 31, 2017 December 31, 2016  Fair Value Carrying Value Fair Value Carrying Value  Notes payable $ 20,083 $ 16,425 $ 19,788 $ 16,106  Net L oss per Share The following outstanding common stock options and warrants to purchase common stock were excluded from the computation of diluted net loss per share for the periods presented because including them would have had an anti-dilutive effect:      Three Months Ended March 31,  (in thousands) 2017 2016  Options outstanding 26,656 22,542  Warrants to purchase common stock — 1,682   Recent Accounting Pronouncements  Recently Adopted Accounting Standards In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting , which amends the current stock compensation guidance. The amendments simplify the accounting for the taxes related to stock based compensation, including adjustments to how excess tax benefits and a company's payments for tax withholdings should be classified. Furthermore, the amendments allow the entities to make an accounting policy election to either estimate forfeitures or recognize forfeitures as they occur. If an election is made, the change to recognize forfeitures as they occur must be adopted using a modified retrospective approach with a cumulative effect adjustment recorded to opening retained earnings. The standard is effective for fiscal periods beginning after December 15, 2016, with early adoption permitted. We adopted this guidance as of January 1, 2017. Prior to adoption, the excluded windfall deductions for federal and state purposes were $6.0 million and $0.6 million, respectively. Upon adoption of ASU 2016-09, we recognized the excluded windfall deductions as a deferred tax asset with a corresponding offset to valuation allowance. The total deferred tax assets were $321.5 million as of January 1, 2017 , which was fully offset by a valuation allowance. Further, we did not elect an accounting policy change to record forfeitures as they occur and thus we continue to estimate forfeitures at each period. During 2016, we adopted ASU 2014-15 , Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU 2014-15”). ASU 2014-15 requires companies to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosure. Management performed such an assessment and concluded there was not substantial doubt about our ability to continue as a going concern. Since our inception, we have financed our operations primarily through product sales, issuance of common stock and convertible preferred stock, in addition to our debt facility and payments from Roche pursuant to the terms of the Roche Agreement. Cash, cash equivalents and investments at March 31, 2017 totaled $56.1 million, compared to $72.0 million at December 31, 2016. We believe that our existing cash, cash equivalents and investments will be sufficient to fund our projected operating requirements for at least 12 months; however, we plan to raise additional capital in the future. Our view regarding sufficiency of cash and liquidity is primarily based on our financial forecast for 2017 and into the first quarters of 2018, which is impacted by various assumptions regarding demand for our products. Generally, we expect demand for our products to increase for the remainder of 2017 and into 2018 as compared to 2016, and this expectation is included in forecasts of future cash and liquidity availability. These expectations are based on our current operating and financing plans, which are subject to change. Factors that may affect our capital needs include, but are not limited to, slower than expected adoption of our products resulting in lower sales of our products and services; future acquisitions; our ability to obtain new collaboration and customer arrangements; the progress of our research and development programs; initiation or expansion of research programs and collaborations; litigation costs, including the costs involved in preparing, filing, prosecuting, defending and enforcing intellectual property rights; the purchase of patent licenses; the costs associated with the ongoing transition to our new facilities in Menlo Park, California; and other factors. To the extent we raise additional funds through the sale of equity or convertible debt securities, the issuance of such securities will result in dilution to our stockholders. There can be no assurance that such funds will be available on favorable terms, or at all. If adequate funds are not available, we may be required to curtail operations significantly or to obtain funds by entering into collaboration or debt agreements on unattractive terms. Our inability to raise capital could have a material adverse effect on our business, financial condition and results of operations.  Recently Issued Accounting Standards In February 2016, the FASB issued ASU 2016-02, Leases. The guidance in ASU 2016-02 supersedes the lease recognition requirements in ASC Topic 840, Leases . ASU 2016-02 requires an entity to recognize assets and liabilities arising from a lease for both financing and operating leases, along with additional qualitative and quantitative disclosures. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. We are currently evaluating the impact of the adoption of this standard on our consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers , requiring an entity to recognize the amount of 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 U.S. GAAP when it becomes effective and permits the use of either the retrospective or the cumulative effect transition method. ASU 2014-09 is effective for periods beginning after December 15, 2017, with early adoption permitted but not earlier than the original effective date. Accordingly, the updated standard is effective for us in the first quarter of 2018. We are currently evaluating the new guidance to determine the impact it may have on our consolidated financial statements. While we are continuing to assess all potential impacts of the new accounting standard, we currently believe the most significant impact relates to our accounting for the incremental cost of obtaining a contract with a customer (i.e., sales commission). Under current GAAP, the cost incurred to obtain a contract is recognized in the period the expense is incurred while under the new standard, the incremental costs to obtain the contract will be allocated to the performance obligations using the relative fair value of these obligations, recognized as an asset and amortized over the useful life of that asset. We are still in the process of evaluating the impact of this new standard on these arrangements. Due to the complexity of certain of our contracts, the actual revenue recognition treatment required under the new standard for these arrangements may be dependent on contract-specific terms and vary in some instances. 

Summary Of Significant Accoun15

Summary Of Significant Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2017
Summary Of Significant Accounting Policies [Abstract]
Summary Of Assets And Liabilities Measured At Fair Value Classified Based On Level Of Input	   March 31, 2017 December 31, 2016  (in thousands) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total  Assets  Cash and cash equivalents:  Cash and money market funds $ 27,183 $ — $ — $ 27,183 $ 14,516 $ — $ — $ 14,516  Commercial paper — 1,799 — 1,799 — 2,249 — 2,249  US government & agency securities — — — — — — — —  Total cash and cash equivalents 27,183 1,799 — 28,982 14,516 2,249 — 16,765  Investments:  Commercial paper — 18,691 — 18,691 — 23,583 — 23,583  Corporate debt securities — 6,346 — 6,346 — 10,739 — 10,739  US government & agency securities — 2,004 — 2,004 — 20,579 — 20,579  Asset backed securities — 27 — 27 — 312 — 312  Total investments — 27,068 — 27,068 — 55,213 — 55,213  Long-term restricted cash:  Cash 4,500 — — 4,500 4,500 — — 4,500  Total assets measured at fair value $ 31,683 $ 28,867 $ — $ 60,550 $ 19,016 $ 57,462 $ — $ 76,478   Liabilities  Financing derivative $ — $ — $ 208 $ 208 $ — $ — $ 356 $ 356  Total liabilities measured at fair value $ — $ — $ 208 $ 208 $ — $ — $ 356 $ 356  
Changes In Fair Value Of Financial Derivative	   Financing Derivative Amount  Balance as of December 31, 2016 $ 356  Gain on change in estimated fair value (148)  Balance as of March 31, 2017 $ 208 
Estimated Fair Value And Carrying Value of Notes	   March 31, 2017 December 31, 2016  Fair Value Carrying Value Fair Value Carrying Value  Notes payable $ 20,083 $ 16,425 $ 19,788 $ 16,106 
Anti-Dilutive Shares Excluded From Computation Of Diluted Net Loss Per Share	   Three Months Ended March 31,  (in thousands) 2017 2016  Options outstanding 26,656 22,542  Warrants to purchase common stock — 1,682 

Cash, Cash Equivalents And In16

Cash, Cash Equivalents And Investments (Tables)	3 Months Ended
	Mar. 31, 2017
Cash, Cash Equivalents And Investments [Abstract]
Summary Of Cash, Cash Equivalents And Investments	   As of March 31, 2017  Gross Gross  Amortized unrealized unrealized Fair  Cost gains losses Value  Cash and cash equivalents:  Cash and money market funds $ 27,183 $ — $ — $ 27,183  Commercial paper 1,799 — — 1,799  Total cash and cash equivalents 28,982 — — 28,982  Investments:  Commercial paper 18,691 2 (2) 18,691  Corporate debt securities 6,347 1 (2) 6,346  Asset backed securities 27 — — 27  US government & agency securities 2,006 — (2) 2,004  Total investments 27,071 3 (6) 27,068  Total cash, cash equivalents and investments $ 56,053 $ 3 $ (6) $ 56,050   Long-term restricted cash:  Cash $ 4,500 $ — $ — $ 4,500    As of December 31, 2016  Gross Gross  Amortized unrealized unrealized Fair  Cost gains losses Value  Cash and cash equivalents:  Cash and money market funds $ 14,516 $ — $ — $ 14,516  Commercial paper 2,249 — — 2,249  Total cash and cash equivalents 16,765 — — 16,765  Investments:  Commercial paper 23,581 5 (3) 23,583  Corporate debt securities 10,741 1 (3) 10,739  Asset backed securities 312 — — 312  US government & agency securities 20,574 7 (2) 20,579  Total investments 55,208 13 (8) 55,213  Total cash, cash equivalents and investments $ 71,973 $ 13 $ (8) $ 71,978   Long-term restricted cash:  Cash $ 4,500 $ — $ — $ 4,500  
Summary Of Contractual Maturities Of Cash Equivalents And Available-For-Sale Investments	   (in thousands) Fair Value  Due in one year or less $ 28,867 

Balance Sheet Components (Table

Balance Sheet Components (Tables)	3 Months Ended
	Mar. 31, 2017
Balance Sheet Components [Abstract]
Components Of Inventory	   March 31, December 31,  (in thousands) 2017 2016  Purchased materials $ 5,573 $ 4,817  Work in process 5,967 7,287  Finished goods 3,808 3,530  Inventory $ 15,348 $ 15,634 
Components Of Prepaid Expenses And Other Current Assets	  March 31, December 31,  (in thousands) 2017 2016  Receivable from Existing Landlord $ 2,437 $ 5,000  Rent deposits for O'Brien building 2,160 2,160  Prepaid expenses 1,323 2,342  Other current assets 581 476  Prepaid expenses and other current assets $ 6,501 $ 9,978 
Components Of Other Long-term Assets	  March 31, December 31,  (in thousands) 2017 2016  Rent deposits and tenant improvements for O'Brien building $ — $ 9,641  Other 219 172  Other long-term assets $ 219 $ 9,813 
Components Of Property And Equipment, Net	  March 31, December 31,  (in thousands) 2017 2016  Building $ 1,160 $ 1,160  Laboratory equipment and machinery 24,614 23,337  Leasehold improvements 38,109 8,138  Computer equipment 8,338 7,170  Software 4,600 5,189  Furniture and fixtures 2,390 823  Construction in progress 1,378 5,772  80,589 51,589  Less: Accumulated depreciation (38,140) (37,029)  Property and equipment, net $ 42,449 $ 14,560 

Commitments And Contingencies (

Commitments And Contingencies (Tables)	3 Months Ended
	Mar. 31, 2017
Commitments And Contingencies [Abstract]
Schedule Of Minimum Future Lease Payments Receivable	  Amount  Years ending December 31, (in thousands)  remaining of 2017 $ 4,251  2018 6,822  2019 6,930  2020 7,056  2021 7,272  Thereafter 46,710  Total minimum lease payments $ 79,041 

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	3 Months Ended
	Mar. 31, 2017
Stockholders' Equity [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, 2016 6,835 22,501 $ 1.16 – 16.00 $ 6.30  Additional shares reserved 4,634  Options granted (4,708) 4,708 4.78 – 5.27 5.26  Options exercised — (114) 1.16 – 4.55 2.70  Options canceled 439 (439) 1.16 – 11.64 7.34  Balances, March 31, 2017 7,200 26,656 $ 1.16 – 16.00 $ 6.11 
Schedule Of Stock-Based Compensation Expense	   Three-Month Periods Ended March 31,  2017 2016  Cost of revenue $ 523 $ 499  Research and development 2,030 1,910  Sales, general and administrative 2,431 2,172  Total stock-based compensation expense $ 4,984 $ 4,581 
Schedule Of Fair Value Of Employee Stock Options	   Three-Month Periods Ended March 31,  Stock Option 2017 2016  Expected term in years 6.1 6.1  Expected volatility 70% 70%  Risk-free interest rate 2.1% 1.5%  Dividend yield — —  
Schedule Of Fair Value Of Employee Stock Purchase Plan	   Three-Month Periods Ended March 31,  ESPP 2017 2016  Expected term in years 0.5 - 2.0 0.5 - 2.0  Expected volatility 70% 70%  Risk-free interest rate 0.8% - 1.3% 0.5% - 0.9%  Dividend yield — — 

Summary Of Significant Accoun20

Summary Of Significant Accounting Policies (Narrative) (Details) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2016	Jan. 01, 2017	Dec. 31, 2015
Cost related to change in estimated fair value of leased instruments	$ 1,300,000
Fair value assets liabilities transfer between levels	$ 0
Future cash flows weighted average market yield	10.10%	10.60%		13.50%
Deferred tax assets			$ 321,500,000
Cash, cash equivalents and investments	$ 56,100,000	$ 72,000,000
Federal [Member]
Excluded windfall tax deductions		6,000,000
State [Member]
Excluded windfall tax deductions		$ 600,000

Summary Of Significant Accoun21

Summary Of Significant Accounting Policies (Summary Of Assets And Liabilities Measured At Fair Value Classified Based On Level Of Input) (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Assets
Total assets measured at fair value	$ 60,550	$ 76,478
Liabilities
Total liabilities measured at fair value	208	356
Financing Derivative [Member]
Liabilities
Total liabilities measured at fair value	208	356
Cash and cash equivalents [Member]
Assets
Total cash and cash equivalents	28,982	16,765
Cash and cash equivalents [Member] | Cash and money market funds [Member]
Assets
Total cash and cash equivalents	27,183	14,516
Cash and cash equivalents [Member] | Commercial paper [Member]
Assets
Total cash and cash equivalents	1,799	2,249
Investments [Member]
Assets
Total investments	27,068	55,213
Investments [Member] | Commercial paper [Member]
Assets
Total investments	18,691	23,583
Investments [Member] | Corporate debt securities [Member]
Assets
Total investments	6,346	10,739
Investments [Member] | U.S. government and agency securities [Member]
Assets
Total investments	2,004	20,579
Investments [Member] | Asset backed securities [Member]
Assets
Total investments	27	312
Long-term restricted cash [Member] | Cash [Member]
Assets
Long-term restricted cash	4,500	4,500
Level 1 [Member]
Assets
Total assets measured at fair value	31,683	19,016
Level 1 [Member] | Cash and cash equivalents [Member]
Assets
Total cash and cash equivalents	27,183	14,516
Level 1 [Member] | Cash and cash equivalents [Member] | Cash and money market funds [Member]
Assets
Total cash and cash equivalents	27,183	14,516
Level 1 [Member] | Long-term restricted cash [Member] | Cash [Member]
Assets
Long-term restricted cash	4,500	4,500
Level 2 [Member]
Assets
Total assets measured at fair value	28,867	57,462
Level 2 [Member] | Cash and cash equivalents [Member]
Assets
Total cash and cash equivalents	1,799	2,249
Level 2 [Member] | Cash and cash equivalents [Member] | Commercial paper [Member]
Assets
Total cash and cash equivalents	1,799	2,249
Level 2 [Member] | Investments [Member]
Assets
Total investments	27,068	55,213
Level 2 [Member] | Investments [Member] | Commercial paper [Member]
Assets
Total investments	18,691	23,583
Level 2 [Member] | Investments [Member] | Corporate debt securities [Member]
Assets
Total investments	6,346	10,739
Level 2 [Member] | Investments [Member] | U.S. government and agency securities [Member]
Assets
Total investments	2,004	20,579
Level 2 [Member] | Investments [Member] | Asset backed securities [Member]
Assets
Total investments	27	312
Level 3 [Member]
Liabilities
Total liabilities measured at fair value	208	356
Level 3 [Member] | Financing Derivative [Member]
Liabilities
Total liabilities measured at fair value	$ 208	$ 356

Summary Of Significant Accoun22

Summary Of Significant Accounting Policies (Changes In Fair Value Of Financial Derivative) (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)
Summary Of Significant Accounting Policies [Abstract]
Balance as of December 31, 2016	$ 356
Gain on change in fair value of Financing Derivative	(148)
Balance as of March 31, 2017	$ 208

Summary Of Significant Accoun23

Summary Of Significant Accounting Policies (Estimated Fair Value And Carrying Value Of Notes) (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Estimated Fair Value [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Long-term notes payable	$ 20,083	$ 19,788
Carrying Value [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Long-term notes payable	$ 16,425	$ 16,106

Summary Of Significant Accoun24

Summary Of Significant Accounting Policies (Anti-Dilutive Shares Excluded From Computation Of Diluted Net Loss Per Share) (Details) - shares	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
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	26,656	22,542
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		1,682

Contractual Revenue (Details)

Contractual Revenue (Details) - Roche Agreement [Member] - USD ($)

1 Months Ended

3 Months Ended

12 Months Ended

Dec. 31, 2016

Sep. 30, 2013

Dec. 31, 2016

Sep. 30, 2016

Jun. 30, 2016

Mar. 31, 2016

Dec. 31, 2015

Sep. 30, 2015

Jun. 30, 2015

Mar. 31, 2015

Dec. 31, 2014

Sep. 30, 2014

Jun. 30, 2014

Mar. 31, 2014

Dec. 31, 2013

Dec. 31, 2014

Mar. 31, 2017

Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]

Non-refundable upfront payment

$ 35,000,000

Amortization

$ 3,600,000

$ 3,600,000

$ 3,600,000

$ 3,600,000

$ 3,600,000

$ 3,600,000

$ 3,600,000

$ 1,700,000

$ 1,700,000

$ 1,700,000

$ 1,700,000

$ 1,700,000

Deferred revenue

$ 1,300,000

$ 0

Collaborative arrangement expiration

Feb. 10, 2017

Period until expiration upon notice given

60 days

Deferred revenue, revenue recognized

$ 1,300,000

Maximum potential for additional payments to be recognized upon the achievement of certain development milestones

$ 40,000,000

First Milestone [Member]

Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]

Deferred revenue, revenue recognized

$ 10,000,000

Second Milestone [Member]

Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]

Deferred revenue, revenue recognized

$ 10,000,000

Third (Final) Milestone [Member]

Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]

Deferred revenue, revenue recognized

$ 20,000,000

Cash, Cash Equivalents And In26

Cash, Cash Equivalents And Investments (Summary Of Cash, Cash Equivalents And Investments) (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Schedule of Available-for-sale Securities [Line Items]
Amortized cost	$ 56,053	$ 71,973
Gross unrealized gains	3	13
Gross unrealized losses	(6)	(8)
Fair value	56,050	71,978
Cash and cash equivalents [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized cost	28,982	16,765
Gross unrealized gains
Gross unrealized losses
Fair value	28,982	16,765
Investments [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized cost	27,071	55,208
Gross unrealized gains	3	13
Gross unrealized losses	(6)	(8)
Fair value	27,068	55,213
Cash and money market funds [Member] | Cash and cash equivalents [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized cost	27,183	14,516
Gross unrealized gains
Gross unrealized losses
Fair value	27,183	14,516
Commercial paper [Member] | Cash and cash equivalents [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized cost	1,799	2,249
Gross unrealized gains
Gross unrealized losses
Fair value	1,799	2,249
Commercial paper [Member] | Investments [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized cost	18,691	23,581
Gross unrealized gains	2	5
Gross unrealized losses	(2)	(3)
Fair value	18,691	23,583
Corporate debt securities [Member] | Investments [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized cost	6,347	10,741
Gross unrealized gains	1	1
Gross unrealized losses	(2)	(3)
Fair value	6,346	10,739
Asset backed securities [Member] | Investments [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized cost	27	312
Gross unrealized gains
Gross unrealized losses
Fair value	27	312
U.S. government and agency securities [Member] | Investments [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized cost	2,006	20,574
Gross unrealized gains		7
Gross unrealized losses	(2)	(2)
Fair value	2,004	20,579
Cash [Member] | Long-term restricted cash [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized cost	4,500	4,500
Gross unrealized gains
Gross unrealized losses
Fair value	$ 4,500	$ 4,500

Cash, Cash Equivalents And In27

Cash, Cash Equivalents And Investments (Summary Of Contractual Maturities Of Cash Equivalents And Available-For-Sale Investments) (Details) $ in Thousands	Mar. 31, 2017USD ($)
Cash, Cash Equivalents And Investments [Abstract]
Due in one year or less	$ 28,867

Balance Sheet Components (Narra

Balance Sheet Components (Narrative) (Details) - USD ($)	Jul. 22, 2015	Mar. 31, 2017	Feb. 28, 2017	Mar. 31, 2017	Jan. 31, 2017	Dec. 31, 2016
Balance Sheet Components [Line Items]
Receivable from existing landlord		$ 2,437,000		$ 2,437,000		$ 5,000,000
Prepaid expenses and other current assets		6,501,000		6,501,000		9,978,000
Other long-term assets		219,000		219,000		9,813,000
O’Brien Lease Agreement [Member]
Balance Sheet Components [Line Items]
Prepaid expenses and other current assets		2,200,000		$ 2,200,000		2,200,000
Other long-term assets						$ 9,600,000
Lease term	132 months			11 years
Expected improvement allowance	$ 12,600,000
Tenant improvements		28,900,000		$ 28,900,000
Third Lease Amendment Agreement [Member]
Balance Sheet Components [Line Items]
Lease incentive receivable, noncurrent					$ 65,000
Landlord periodic payment received		1,583,000	$ 1,045,000
Prepaid expenses and other current assets		$ 2,437,000		$ 2,437,000
Increase in receivable from Existing Landlord					$ 65,000

Balance Sheet Components (Compo

Balance Sheet Components (Components Of Inventory) (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Balance Sheet Components [Abstract]
Purchased materials	$ 5,573	$ 4,817
Work in process	5,967	7,287
Finished goods	3,808	3,530
Inventory	$ 15,348	$ 15,634

Balance Sheet Components (Com30

Balance Sheet Components (Components Of Prepaid Expenses And Other Current Assets) (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Balance Sheet Components [Abstract]
Receivable from existing landlord	$ 2,437	$ 5,000
Rent deposits for O'Brien building	2,160	2,160
Prepaid expenses	1,323	2,342
Other current assets	581	476
Prepaid expenses and other current assets	$ 6,501	$ 9,978

Balance Sheet Components (Com31

Balance Sheet Components (Components Of Other Long-Term Assets) (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Balance Sheet Components [Abstract]
Rent deposits and tenant improvements for O'Brien building		$ 9,641
Other	$ 219	172
Other long-term assets	$ 219	$ 9,813

Balance Sheet Components (Com32

Balance Sheet Components (Components Of Property and Equipment, Net) (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Property, Plant and Equipment [Line Items]
Property and equipment	$ 80,589	$ 51,589
Less: Accumulated depreciation	(38,140)	(37,029)
Property and equipment, net	42,449	14,560
Building [Member]
Property, Plant and Equipment [Line Items]
Property and equipment	1,160	1,160
Laboratory Equipment And Machinery [Member]
Property, Plant and Equipment [Line Items]
Property and equipment	24,614	23,337
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment	38,109	8,138
Computer Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment	8,338	7,170
Software [Member]
Property, Plant and Equipment [Line Items]
Property and equipment	4,600	5,189
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Property and equipment	2,390	823
Construction in Progress [Member]
Property, Plant and Equipment [Line Items]
Property and equipment	$ 1,378	$ 5,772

Notes Payable (Narrative) (Deta

Notes Payable (Narrative) (Details) - USD ($)	1 Months Ended	3 Months Ended
	Feb. 28, 2013	Mar. 31, 2017	Dec. 31, 2016	Mar. 31, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Principal amount of notes	$ 20,500,000
Number of shares of common stock called by issuance of warrants	5,500,000		4,200,000	3,818,000
Aggregate exercise price of common stock called by issuance of warrants	$ 2.63		$ 2.63
Warrants outstanding		0	5,500,000
Future cash flows weighted average market yield		10.10%	10.60%		13.50%
Fair value of the financing derivative		$ 208,000	$ 356,000		$ 600,000
Fair value of the warrants	$ 6,400,000
Notes payable, current		3,123,000
Notes [Member]
Debt Instrument [Line Items]
Fair value of the notes	$ 14,100,000
Debt discount that has yet to be amortized		$ 4,000,000	$ 4,300,000
Maturity date		Feb. 1, 2020
Deerfield promissory notes [Member]
Debt Instrument [Line Items]
Debt instrument, stated interest rate	8.75%
Facility agreement period	7 years
Percentage of net proceeds from out side financing or equity component	25.00%
Percentage of principal amount repaid	100.00%
Cash and cash equivalent minimum amount quarterly required	$ 2,000,000
Proceeds from issuance of debt	20,500,000
Carrying value of the notes	12,800,000
Original issue discount	$ 7,700,000
Notes payable, current		$ 3,100,000

Commitments And Contingencies34

Commitments And Contingencies (Narrative) (Details)	Jul. 23, 2015USD ($)item	Jul. 22, 2015USD ($)	Mar. 31, 2017USD ($)	Feb. 28, 2017USD ($)	Aug. 31, 2016USD ($)	Feb. 29, 2016USD ($)	Sep. 30, 2015USD ($)	Mar. 31, 2017USD ($)	Mar. 31, 2016USD ($)	Sep. 30, 2015USD ($)	Jan. 31, 2017USD ($)	Dec. 31, 2016USD ($)	Oct. 31, 2015USD ($)	Dec. 31, 2009USD ($)
Operating Leased Assets [Line Items]
Property, plant and equipment			$ 80,589,000					$ 80,589,000				$ 51,589,000
Future minimum rent payments			79,041,000					79,041,000
Other liabilities, non-current			1,741,000					1,741,000				1,664,000
Rent expense								1,600,000	$ 53,000
Prepaid expenses and other current assets			6,501,000					6,501,000				9,978,000
Other long-term assets			219,000					219,000				9,813,000
Long-term restricted cash			4,500,000					4,500,000				4,500,000
Deferred rent, non-current			14,148,000					$ 14,148,000				19,000
O’Brien Lease Agreement [Member]
Operating Leased Assets [Line Items]
Tenant improvement allowance														$ 1,800,000
Future minimum rent payments	$ 0						$ 0			$ 0
Lease term		132 months						11 years
Rent expense first twelve months		$ 540,000
Rent expense last twelve months		711,000
Expected prepaid rent		2,200,000
Expected security deposit													$ 4,500,000
Prepaid expenses and other current assets			2,200,000					$ 2,200,000				2,200,000
Other long-term assets												9,600,000
Expected improvement allowance		$ 12,600,000
Long-term restricted cash			4,500,000					4,500,000				4,500,000
Tenant improvements			28,900,000					28,900,000
Tenant allowance paid by landlord								12,600,000
Deferred rent, non-current			12,600,000					12,600,000
Lease Amendment Agreement [Member]
Operating Leased Assets [Line Items]
Number of eligible payments from existing landlord | item	4
Eligible payments from existing landlord	$ 5,000,000
Gain on lease amendments										23,000,000
Aggregate Landlord payments receivable							20,000,000			$ 20,000,000
Landlord periodic payment received					$ 5,000,000	$ 5,000,000	$ 5,000,000
Second Lease Amendment Agreement [Member]
Operating Leased Assets [Line Items]
Prepaid expenses and other current assets												5,000,000
Third Lease Amendment Agreement [Member]
Operating Leased Assets [Line Items]
Landlord periodic payment received			1,583,000	$ 1,045,000
Prepaid expenses and other current assets			2,437,000					2,437,000
Increase in receivable from Existing Landlord											$ 65,000
Leasehold Improvements [Member]
Operating Leased Assets [Line Items]
Property, plant and equipment			$ 38,109,000					$ 38,109,000				$ 8,138,000
Leasehold Improvements [Member] | O’Brien Lease Agreement [Member]
Operating Leased Assets [Line Items]
Property, plant and equipment														3,000,000
Manufacturing Facility [Member] | O’Brien Lease Agreement [Member]
Operating Leased Assets [Line Items]
Property, plant and equipment														1,200,000
Landlord Incentives [Member] | O’Brien Lease Agreement [Member]
Operating Leased Assets [Line Items]
Property, plant and equipment														$ 1,800,000

Commitments And Contingencies35

Commitments And Contingencies (Schedule Of Minimum Future Lease Payments Remaining) (Details) $ in Thousands	Mar. 31, 2017USD ($)
Commitments And Contingencies [Abstract]
remaining of 2017	$ 4,251
2,018	6,822
2,019	6,930
2,020	7,056
2,021	7,272
Thereafter	46,710
Total minimum lease payments	$ 79,041

Stockholders' Equity (Narrative

Stockholders' Equity (Narrative) (Details) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)itemshares	Mar. 31, 2016USD ($)$ / sharesshares	Feb. 28, 2017USD ($)	Dec. 31, 2016$ / sharesshares	Feb. 28, 2013$ / sharesshares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares issued		3,000,000
Proceeds from issuance of common stock from equity plans | $	$ 3,408	$ 3,423
Holders may elect to receive net proceeds from financing activities, percentage	25.00%
Number of shares of common stock called by issuance of warrants		3,818,000		4,200,000	5,500,000
Aggregate exercise price of common stock called by issuance of warrants | $ / shares				$ 2.63	$ 2.63
Warrants outstanding	0			5,500,000
Number of equity compensation plans | item	3
Stock Options [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares issued	750,005	668,566
Common stock reserved for issuance	1,841,595
At the Market Offering [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares issued		3,100,000
Average common stock price per share | $ / shares		$ 8.80
Proceeds from issuance of common stock from equity plans | $		$ 26,500
Common stock offering price shares | $			$ 60,000
Commissions	3.00%

Stockholders' Equity (Summary O

Stockholders' Equity (Summary Of Stock Option Activity) (Details) - Stock Options [Member] - $ / shares shares in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Additional shares reserved, Shares available for grant	4,634
$1.16 – 16.00 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Balances, December 31, 2016, Shares available for grant	6,835
Balances, March 31, 2017, Shares available for grant		6,835
Balances, December 31, 2016, Number of shares	22,501
Balances, March 31, 2017, Number of shares		22,501
Exercise price, lower range		$ 1.16
Exercise price, upper range		16
Balances, December 31, 2015, Weighted average exercise price per share	$ 6.30
Balances, December 31, 2016, Weighted average exercise price per share		$ 6.30
$4.78 – 5.27 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options granted, Shares available for grant	(4,708)
Options granted, Number of shares	4,708
Exercise price, lower range	$ 4.78
Exercise price, upper range	5.27
Options granted, Weighted average exercise price per share	$ 5.26
$1.16 – 4.55 [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	(114)
Exercise price, lower range	$ 1.16
Exercise price, upper range	4.55
Options exercised, Weighted average exercise price per share	$ 2.70
$1.16 – 11.64 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options canceled, Shares available for grant	439
Options canceled, Number of shares	(439)
Exercise price, lower range	$ 1.16
Exercise price, upper range	11.64
Options canceled, Weighted average exercise price per share	$ 7.34
$1.16 – 16.00 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Balances, March 31, 2017, Shares available for grant	7,200
Balances, March 31, 2017, Number of shares	26,656
Exercise price, lower range	$ 1.16
Exercise price, upper range	16
Balances, December 31, 2016, Weighted average exercise price per share	$ 6.11

Stockholders' Equity (Schedule

Stockholders' Equity (Schedule Of Stock-Based Compensation Expense) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation	$ 4,984	$ 4,581
Cost of revenue [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation	523	499
Research and development [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation	2,030	1,910
Sales, general and administrative [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation	$ 2,431	$ 2,172

Stockholders' Equity (Schedul39

Stockholders' Equity (Schedule Of Fair Value Of Employee Stock Options And Employee Stock Purchase Plan) (Details)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Risk-free interest rate, maximum	1.30%	0.90%
Stock Options [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected term	6 years 1 month 6 days	6 years 1 month 6 days
Expected volatility	70.00%	70.00%
Risk-free interest rate	2.10%	1.50%
Dividend yield
ESPP [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected volatility	70.00%	70.00%
Risk-free interest rate, minimum	0.80%	0.50%
Dividend yield
ESPP [Member] | Minimum [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected term	6 months	6 months
ESPP [Member] | Maximum [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected term	2 years	2 years