Pacific Biosciences of California (PACB) 10-Q 2 Aug 17 2017 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
	Jun. 30, 2017	Jul. 31, 2017
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q2
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		115,591,469

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Current assets
Cash and cash equivalents	$ 36,478	$ 16,765
Investments	66,118	55,213
Accounts receivable	9,525	11,421
Inventory	17,266	15,634
Prepaid expenses and other current assets	3,545	9,978
Total current assets	132,932	109,011
Property and equipment, net	40,289	14,560
Long-term restricted cash	4,500	4,500
Other long-term assets	184	9,813
Total assets	177,905	137,884
Current liabilities
Accounts payable	6,514	8,359
Accrued expenses	17,840	16,604
Deferred service revenue, current	6,782	7,130
Other liabilities, current	1,915	1,681
Notes payable, current	2,643
Total current liabilities	35,694	33,774
Deferred service revenue, non-current	1,296	1,297
Deferred rent, non-current	14,599	19
Other liabilities, non-current		1,664
Notes payable, non-current	10,441	16,106
Financing derivative	15	356
Total liabilities	62,045	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 115,562 and 92,677 shares at June 30, 2017 and December 31, 2016, respectively	116	93
Additional paid-in-capital	952,710	872,114
Accumulated other comprehensive income (loss)	(16)	5
Accumulated deficit	(836,950)	(787,544)
Total stockholders' equity	115,860	84,668
Total liabilities and stockholders' equity	$ 177,905	$ 137,884

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 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	115,562,000	92,677,000
Common Stock, shares outstanding	115,562,000	92,677,000

Condensed Consolidated Statemen

Condensed Consolidated Statements Of Operations And Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Revenue:
Product revenue	$ 16,548	$ 13,587	$ 37,842	$ 25,966
Service and other revenue	3,525	3,564	7,146	6,716
Contractual revenue		3,596		7,192
Total revenue	20,073	20,747	44,988	39,874
Cost of Revenue:
Cost of product revenue	8,155	7,115	19,517	13,995
Cost of service and other revenue	3,917	2,988	8,533	5,731
Total cost of revenue	12,072	10,103	28,050	19,726
Gross profit	8,001	10,644	16,938	20,148
Operating expense:
Research and development	16,883	17,522	33,854	33,883
Sales, general and administrative	15,505	11,192	30,770	22,900
Total operating expense	32,388	28,714	64,624	56,783
Operating loss	(24,387)	(18,070)	(47,686)	(36,635)
Interest expense	(826)	(795)	(1,664)	(1,574)
Other income (expense), net	(326)	366	(56)	358
Net loss	(25,539)	(18,499)	(49,406)	(37,851)
Other comprehensive loss:
Unrealized gain on investments	(13)	11	(21)	59
Comprehensive loss	$ (25,552)	$ (18,488)	$ (49,427)	$ (37,792)
Net loss per share:
Basic and diluted net loss per share	$ (0.26)	$ (0.21)	$ (0.52)	$ (0.44)
Shares used in computing basic and diluted net loss per share	97,360	88,148	95,177	85,876

Condensed Consolidated Stateme5

Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Cash flows from operating activities
Net loss	$ (49,406)	$ (37,851)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation	4,839	1,823
Amortization of debt discount and financing costs	652	548
(Gain) Loss from derivative	485	(336)
Stock-based compensation	9,994	9,619
Other items	87	154
Changes in assets and liabilities
Accounts receivable	1,896	(5,182)
Inventory	(2,240)	(4,491)
Prepaid expenses and other assets	6,368	1,004
Accounts payable	(1,944)	683
Accrued expenses	(2,266)	778
Deferred service revenue	(349)	(36)
Deferred contractual revenue		(7,192)
Other liabilities	2,404	1,327
Net cash used in operating activities	(29,480)	(39,152)
Cash flows from investing activities
Purchase of property and equipment	(6,116)	(3,255)
Disposal of property and equipment	12	10
Purchase of investments	(61,181)	(64,572)
Sales of investments	3,662	13,334
Maturities of investments	46,511	22,082
Net cash used in investing activities	(17,112)	(32,401)
Cash flows from financing activities
Proceeds from issuance of common stock from equity plans	6,231	4,502
Notes payable principal paying off	(4,500)
Proceeds from issuance of common stock from at-the-market equity offering, net of issuance costs	11,865	58,200
Proceeds from issuance of common stock from underwritten public equity offering, net of issue costs	52,709
Net cash provided by financing activities	66,305	62,702
Net increase (decrease) in cash and cash equivalents	19,713	(8,851)
Cash and cash equivalents at beginning of period	16,765	33,629
Cash and cash equivalents at end of period	36,478	24,778
Supplemental disclosure of non-cash investing and financing activities
Changes in deposits for property and equipment paid in prior period	9,694
Property and equipment paid by landlord	12,600
Changes in unpaid Property and equipment	3,323	37
Property and equipment returned to landlord	1,854
Inventory transferred to property and equipment	$ 608	$ 1,245

Overview

Overview	6 Months Ended
	Jun. 30, 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	6 Months Ended
	Jun. 30, 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 and second quarter of 2017, we recorded a charge to cost of revenue of $1.3 million and $0.3 million, respectively, 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 June 30, 2017 and December 31, 2016 respectively (in thousands):      June 30, 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 $ 17,160 $ — $ — $ 17,160 $ 14,516 $ — $ — $ 14,516  Commercial paper — 19,318 — 19,318 — 2,249 — 2,249  US government & agency securities — — — — — — — —  Total cash and cash equivalents 17,160 19,318 — 36,478 14,516 2,249 — 16,765  Investments:  Commercial paper — 29,640 — 29,640 — 23,583 — 23,583  Corporate debt securities — 9,715 — 9,715 — 10,739 — 10,739  US government & agency securities — 26,763 — 26,763 — 20,579 — 20,579  Asset backed securities — — — — — 312 — 312  Total investments — 66,118 — 66,118 — 55,213 — 55,213  Long-term restricted cash:  Cash 4,500 — — 4,500 4,500 — — 4,500  Total assets measured at fair value $ 21,660 $ 85,436 $ — $ 107,096 $ 19,016 $ 57,462 $ — $ 76,478   Liabilities  Financing derivative $ — $ — $ 15 $ 15 $ — $ — $ 356 $ 356  Total liabilities measured at fair value $ — $ — $ 15 $ 15 $ — $ — $ 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 six-month period ended June 30, 2017 (in thousands):       Financing Derivative Amount  Balance as of December 31, 2016 $ 356  Gain on change in estimated fair value (341)  Balance as of June 30, 2017 $ 15  During the six-month period ended June 30, 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. 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 9.2% and 10.6% weighted average market yield at June 30, 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):       June 30, 2017 December 31, 2016  Fair Value Carrying Value Fair Value Carrying Value  Notes payable $ 15,958 $ 13,084 $ 19,788 $ 16,106  Net Loss per Share The following outstanding common stock options 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:      Six Months Ended June 30,  (in thousands) 2017 2016  Options outstanding 25,592 22,588   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 . 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.  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. 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. Entities have the option of using either a full retrospective or a modified retrospective approach to adopt this new guidance. We are currently evaluating the new guidance to determine the impact it may have on our consolidated financial statements. We expect to adopt the standard using the modified retrospective approach with the cumulative effect of adopting this standard to be recorded to retaine d earnings on January 1, 2018. The new revenue standard is principle - based and interpretation of those principles may vary from company to company based on their unique circumstances. It is possible that interpretation, industry practice, and guidance may evolve as companies and the accounting profession work to implement this new standard. We are still in the process of evaluating the effect of the new standard on our historical financial statements and disclosures. While we have not completed our evaluation, we currently believe that the impact to revenue and expense recognized will not be material to any of the years presented. As we complete our evaluation of this new standard, new information may arise that could change our current understanding of the impact to revenue and expense recognized. Additionally, we will continue to monitor industry activities and any additional guidance provided by regulators, standards setters, or the accounting profession and adjust our assessment and implementation plans accordingly. 

Contractual Revenue

Contractual Revenue	6 Months Ended
	Jun. 30, 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. 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	6 Months Ended
	Jun. 30, 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 June 30, 2017 and December 31, 2016 (in thousands):      As of June 30, 2017  Gross Gross  Amortized unrealized unrealized Fair  Cost gains losses Value  Cash and cash equivalents:  Cash and money market funds $ 17,160 $ — $ — $ 17,160  Commercial paper 19,319 — (1) 19,318  Total cash and cash equivalents 36,479 — (1) 36,478  Investments:  Commercial paper 29,640 2 (2) 29,640  Corporate debt securities 9,718 — (3) 9,715  Asset backed securities — — — —  US government & agency securities 26,775 — (12) 26,763  Total investments 66,133 2 (17) 66,118  Total cash, cash equivalents and investments $ 102,612 $ 2 $ (18) $ 102,596   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 June 30, 2017:         (in thousands) Fair Value  Due in one year or less $ 84,143  Due after one year through 5 years 1,293  Total investments in debt securities $ 85,436  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	6 Months Ended
	Jun. 30, 2017
Balance Sheet Components [Abstract]
Balance Sheet Components	NOTE 5 . BALANCE SHEET COMPONENTS  Inventory  As of June 30, 2017 and December 31, 2016, our inventory consisted of the following components:      June 30, December 31,  (in thousands) 2017 2016  Purchased materials $ 6,803 $ 4,817  Work in process 6,695 7,287  Finished goods 3,768 3,530  Inventory $ 17,266 $ 15,634  Prepaid Expenses and Other Current Assets As of June 30, 2017 and December 31, 2016, our prepaid expenses and other current assets consisted of the following components:    June 30, December 31,  (in thousands) 2017 2016  Receivable from Prior Landlord $ 755 $ 5,000  Rent deposits for O'Brien building 1,080 2,160  Prepaid expenses 1,140 2,342  Other current assets 570 476  Prepaid expenses and other current assets $ 3,545 $ 9,978  On July 23, 2015, we entered into a Lease Amendment Agreement (the “Lease Amendment Agreement”) with Peninsula Innovation Partners, LLC (the “Prior Landlord”), which amends the terms and conditions of certain of our then existing Menlo Park facility real property leases. 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 $20.0 million from the Prior Landlord over time (the “Landlord Payments”), and rent abatement for the remainder of the lease. As of December 31, 2016, $5.0 million of the Landlord Payments were outstanding. In January 2017, we entered into a Third Lease Amendment Agreement with the Prior Landlord that increased the amount of the Landlord Payments by $65,000 . During the first quarter of 2017, we received Landlord Payments totaling $2,628,000 . In May 2017, we entered into a Fourth Lease Amendment Agreement with the Prior Landlord, based on which we turned over the 940 Hamilton and 1010 Hamilton buildings to the Prior Landlord. Accordingly, in June 2017 we received $1,682,000 in Landlord Payments, resulting in a remaining balance of $755,000 in “Prepaid Expenses and Other Current Assets” in the condensed consolidated balance sheets at June 30, 2017. Refer to “Note 7. Commitments and Contingencies” for additional details.  Other Long-term Assets As of June 30, 2017 and December 31, 2016, our other long-term assets consisted of the following components:      June 30, December 31,  (in thousands) 2017 2016  Rent deposits and tenant improvements for O'Brien building $ — $ 9,641  Other 184 172  Other long-term assets $ 184 $ 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 June 30, 2017 and December 31, 2016, our property and equipment, net, consisted of the following components:     June 30, December 31,  (in thousands) 2017 2016  Building $ — $ 1,160  Laboratory equipment and machinery 23,853 23,337  Leasehold improvements 31,170 8,138  Computer equipment 9,096 7,170  Software 4,600 5,189  Furniture and fixtures 2,411 823  Construction in progress 1,272 5,772  72,402 51,589  Less: Accumulated depreciation (32,113) (37,029)  Property and equipment, net $ 40,289 $ 14,560  In May 2017, we entered into a Fourth Lease Amendment Agreement with the Prior Landlord, based on which we turned over the 940 Hamilton and 1010 Hamilton buildings to the Prior Landlord. The 940 Hamilton building was a capital lease with a long-term facility financing obligation associated with this lease included in “Other liabilities, non-current” and the corresponding building and related leasehold improvements were included in “Property and equipment, net” of the condensed consolidated balance sheets. Upon turning over the building to the Prior Landlord, the capital lease was terminated, resulting in the extinguishment of the facility financing obligation. 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 half of 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	6 Months Ended
	Jun. 30, 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 of common stock. 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. On June 23, 2017, pursuant to a partial exercise by the Notes holders of their right to elect to receive up to 25% of the net proceeds from any qualified financing that includes an equity component, we paid $4.5 million of outstanding principal, together with accrued and unpaid interest, to one of the Notes holders with proceeds from our underwritten public equity offering (Refer to “Note 8. Stockholders’ Equity” for additional details).  Financing Derivative A number of features embedded in the Notes 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 9.2% and 10.6% weighted average market yield at June 30, 2017 and December 31, 2016, respectively. The estimated fair value of the Financing Derivative as of June 30, 2017 and December 31, 2015 was $0.0 million and $0.4 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 June 30, 2017 and December 31, 2016, we had outstanding $16.0 million and $20.5 million aggregate principal amount of Notes, respectively. As of June 30, 2017 and December 31, 2016, a debt discount of $2.9 million and $4.3 million, respectively, remained to be amortized through February 2020 , the maturity of the Notes. As of June 30, 2017, $2.6 million out of the outstanding $16.0 million aggregate principal amount of Notes was reclassified from “Notes payable, non-current” to “Notes payable, current”, as that portion of the principal becomes due by June 30, 2018. 

Commitments And Contingencies

Commitments And Contingencies	6 Months Ended
	Jun. 30, 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 prior 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 June 30, 2017 and December 31, 2016, were $0 million and $1.7 million, respectively.  Lease Amendment Agreement On July 23, 2015, we entered into a Lease Amendment Agreement (the “Lease Amendment Agreement”) with Peninsula Innovation Partners, LLC (the “Prior Landlord”), which amends the terms and conditions of certain of our prior 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 Prior Landlord, the termination of all renewal, expansion and extension rights contained in any of the existing leases with the Prior 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 Prior 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 Prior 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 Prior Landlord that modified the payment schedule for the final $5.0 million. At December 31, 2016, the final $5.0 million of Landlord Payments were 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 Prior Landlord that increased the amount of the final $5.0 million Landlord Payments by $65,000 . During the first quarter of 2017, we received Landlord Payments totaling $2,628,000 . In May 2017, we entered into a Fourth Lease Amendment Agreement with the Prior Landlord, based on which we turned over the 940 Hamilton and 1010 Hamilton buildings to the Prior Landlord. Accordingly, in June 2017 we received $1,682,000 in Landlord Payments, resulting in a remaining balance of $755,000 in “Prepaid Expenses and Other Current Assets” in the condensed consolidated balance sheets at June 30, 2017. The 940 Hamilton building was a capital lease with a long-term facility financing obligation associated with this lease included in “Other liabilities, non-current” and the corresponding building and related leasehold improvements were included in “Property and equipment, net” of the condensed consolidated balance sheets. Upon turning over the building to the Prior Landlord, the capital lease was terminated, resulting in the extinguishment of the facility financing obligation.  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 was abated for the first six (6) months of the lease term and thereafter is $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 was 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. As of June 30, 2017, $1.1 million was recorded in “Prepaid expense and other current assets” in the condensed consolidated balance sheet. 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 June 30, 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 half of 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 June 30, 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 $ 3,171  2018 6,822  2019 6,930  2020 7,056  2021 7,272  Thereafter 46,710  Total minimum lease payments $ 77,961  Rent expense was $1.6 million and $48,000 for the three-month periods ended June 30, 2017 and 2016, respectively. Rent expense was $3.1 million and $100,200 for the six-month periods ended June 30, 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 May 23, 2017, the Administrative Law Judge (“ALJ”) assigned to the matter issued an order construing certain claim terms of the asserted patents. On June 8, 2017, ONT filed a summary determination motion to terminate the proceedings based on the ALJ’s claim construction decision, which motion was not opposed by us. The ALJ granted the motion on July 19, 2017, and, on July 31, 2017, we filed a petition to review with the USITC to correct what we believe was an incorrect construction of the claims. 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 27, 2017, the defendants in the case filed their defense and counterclaim, denying infringement and seeking a declaration that the asserted patent is invalid. We filed our reply and defense to counterclaim on April 12, 2017. 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 relief, damages and costs. On May 8, 2017, the defendants filed a motion to dismiss the complaint, alleging that the asserted patent claims recite patent ineligible subject matter. We filed our response on June 5, 2017. 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 German version of the patent. We received service in this matter on July 11, 2017. 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 these complaints 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	6 Months Ended
	Jun. 30, 2017
Stockholders' Equity [Abstract]
Stockholders' Equity	NOTE 8. STOCKHOLDERS’ E QUITY “ At-the-Market” Equity Offering In February 2017, we filed an additional prospectus supplement pursuant to which we could offer and sell, from time to time, additional shares of our common stock having an aggregate offering price of up to $60.0 million. During the six-month period ended June 30, 2017 we issued 3.2 million shares of our common stock at an average price of $3.86 per share through our “at-the-market” offering, resulting in net proceeds of $11.9 million. We terminated our current “at-the-market” offering program in June 2017. We paid 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 Facility Agreement, holders of our Notes may elect to receive up to 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 “at-the-market” offering. Underwritten Public Equity Offering On June 15, 2017, we entered into an underwriting agreement , relating to the public offering of 15,419,354 shares of our common stock, $0.001 par value per share, at a price to the public of $3.10 per share. Under the terms of the Underwriting Agreement, we also granted the Underwriters a 30 -day option to purchase up to an additional 2,312,903 shares of our common stock, which was subsequently exercised in full, and the offering, including the sale of shares of common stock subject to the Underwriters’ option, closed on June 20, 2017. In total, we sold 17,732,257 shares of our common stock at a price of $3.10 per share. We paid a commission equal to 4% of the gross proceeds from the sale of shares of our common stock under the underwriting agreement. The total net proceeds to us from the offering, after deducting the underwriting discount and paid offering expenses , were approximately $52.7 million, which excludes approximately $0.2 million of offering expenses that were unpaid as of June 30, 2017. 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. 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 June 30, 2017, no warrants remained outstanding. Equity Plans As of June 30, 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 six-month period ended June 30, 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 (5,258) 5,258 3.30 – 5.27 5.10  Options exercised — (1,231) 1.16 – 4.55 2.54  Options canceled 936 (936) 1.16 – 16.0 7.24  Balances, June 30, 2017 7,147 25,592 $ 1.16 – 16.00 $ 6.20  Shares issued under our ESPP totaled 750,005 and 668,566 shares during the six-month periods ended June 30, 2017 and 2016, respectively. As of June 30, 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 June 30, Six-Month Periods Ended June 30,  2017 2016 2017 2016  Cost of revenue $ 572 $ 562 $ 1,095 $ 1,061  Research and development 2,029 2,131 4,060 4,041  Sales, general and administrative 2,408 2,345 4,839 4,517  Total stock-based compensation expense $ 5,009 $ 5,038 $ 9,994 $ 9,619  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 June 30, Six-Month Periods Ended June 30,  Stock Option 2017 2016 2017 2016  Expected term in years 6.1 6.1 6.1 6.1  Expected volatility 70% 70% 70% 70%  Risk-free interest rate 1.9% 1.4% 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 June 30, Six-Month Periods Ended June 30,  ESPP 2017 2016 2017 2016  Expected term in years 0.5 - 2.0 0.5 - 2.0 0.5 - 2.0 0.5 - 2.0  Expected volatility 70% 70% 70% 70%  Risk-free interest rate 0.8% - 1.3% 0.5% - 0.9% 0.8% - 1.3 % 0.5% - 0.9%  Dividend yield — — — —  

Summary Of Significant Accoun14

Summary Of Significant Accounting Policies (Policy)	6 Months Ended
	Jun. 30, 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 and second quarter of 2017, we recorded a charge to cost of revenue of $1.3 million and $0.3 million, respectively, 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 June 30, 2017 and December 31, 2016 respectively (in thousands):      June 30, 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 $ 17,160 $ — $ — $ 17,160 $ 14,516 $ — $ — $ 14,516  Commercial paper — 19,318 — 19,318 — 2,249 — 2,249  US government & agency securities — — — — — — — —  Total cash and cash equivalents 17,160 19,318 — 36,478 14,516 2,249 — 16,765  Investments:  Commercial paper — 29,640 — 29,640 — 23,583 — 23,583  Corporate debt securities — 9,715 — 9,715 — 10,739 — 10,739  US government & agency securities — 26,763 — 26,763 — 20,579 — 20,579  Asset backed securities — — — — — 312 — 312  Total investments — 66,118 — 66,118 — 55,213 — 55,213  Long-term restricted cash:  Cash 4,500 — — 4,500 4,500 — — 4,500  Total assets measured at fair value $ 21,660 $ 85,436 $ — $ 107,096 $ 19,016 $ 57,462 $ — $ 76,478   Liabilities  Financing derivative $ — $ — $ 15 $ 15 $ — $ — $ 356 $ 356  Total liabilities measured at fair value $ — $ — $ 15 $ 15 $ — $ — $ 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 six-month period ended June 30, 2017 (in thousands):       Financing Derivative Amount  Balance as of December 31, 2016 $ 356  Gain on change in estimated fair value (341)  Balance as of June 30, 2017 $ 15  During the six-month period ended June 30, 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. 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 9.2% and 10.6% weighted average market yield at June 30, 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):       June 30, 2017 December 31, 2016  Fair Value Carrying Value Fair Value Carrying Value  Notes payable $ 15,958 $ 13,084 $ 19,788 $ 16,106 
Net Loss Per Share	Net Loss per Share The following outstanding common stock options 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:      Six Months Ended June 30,  (in thousands) 2017 2016  Options outstanding 25,592 22,588  
Recent Accounting Pronouncements	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 . 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.  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. 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. Entities have the option of using either a full retrospective or a modified retrospective approach to adopt this new guidance. We are currently evaluating the new guidance to determine the impact it may have on our consolidated financial statements. We expect to adopt the standard using the modified retrospective approach with the cumulative effect of adopting this standard to be recorded to retaine d earnings on January 1, 2018. The new revenue standard is principle - based and interpretation of those principles may vary from company to company based on their unique circumstances. It is possible that interpretation, industry practice, and guidance may evolve as companies and the accounting profession work to implement this new standard. We are still in the process of evaluating the effect of the new standard on our historical financial statements and disclosures. While we have not completed our evaluation, we currently believe that the impact to revenue and expense recognized will not be material to any of the years presented. As we complete our evaluation of this new standard, new information may arise that could change our current understanding of the impact to revenue and expense recognized. Additionally, we will continue to monitor industry activities and any additional guidance provided by regulators, standards setters, or the accounting profession and adjust our assessment and implementation plans accordingly.

Summary Of Significant Accoun15

Summary Of Significant Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2017
Summary Of Significant Accounting Policies [Abstract]
Summary Of Assets And Liabilities Measured At Fair Value On A Recurring Basis	   June 30, 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 $ 17,160 $ — $ — $ 17,160 $ 14,516 $ — $ — $ 14,516  Commercial paper — 19,318 — 19,318 — 2,249 — 2,249  US government & agency securities — — — — — — — —  Total cash and cash equivalents 17,160 19,318 — 36,478 14,516 2,249 — 16,765  Investments:  Commercial paper — 29,640 — 29,640 — 23,583 — 23,583  Corporate debt securities — 9,715 — 9,715 — 10,739 — 10,739  US government & agency securities — 26,763 — 26,763 — 20,579 — 20,579  Asset backed securities — — — — — 312 — 312  Total investments — 66,118 — 66,118 — 55,213 — 55,213  Long-term restricted cash:  Cash 4,500 — — 4,500 4,500 — — 4,500  Total assets measured at fair value $ 21,660 $ 85,436 $ — $ 107,096 $ 19,016 $ 57,462 $ — $ 76,478   Liabilities  Financing derivative $ — $ — $ 15 $ 15 $ — $ — $ 356 $ 356  Total liabilities measured at fair value $ — $ — $ 15 $ 15 $ — $ — $ 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 (341)  Balance as of June 30, 2017 $ 15 
Estimated Fair Value And Carrying Value of Notes	   June 30, 2017 December 31, 2016  Fair Value Carrying Value Fair Value Carrying Value  Notes payable $ 15,958 $ 13,084 $ 19,788 $ 16,106 
Anti-Dilutive Shares Excluded From Computation Of Diluted Net Loss Per Share	   Six Months Ended June 30,  (in thousands) 2017 2016  Options outstanding 25,592 22,588 

Cash, Cash Equivalents And In16

Cash, Cash Equivalents And Investments (Tables)	6 Months Ended
	Jun. 30, 2017
Cash, Cash Equivalents And Investments [Abstract]
Summary Of Cash, Cash Equivalents And Investments	   As of June 30, 2017  Gross Gross  Amortized unrealized unrealized Fair  Cost gains losses Value  Cash and cash equivalents:  Cash and money market funds $ 17,160 $ — $ — $ 17,160  Commercial paper 19,319 — (1) 19,318  Total cash and cash equivalents 36,479 — (1) 36,478  Investments:  Commercial paper 29,640 2 (2) 29,640  Corporate debt securities 9,718 — (3) 9,715  Asset backed securities — — — —  US government & agency securities 26,775 — (12) 26,763  Total investments 66,133 2 (17) 66,118  Total cash, cash equivalents and investments $ 102,612 $ 2 $ (18) $ 102,596   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 $ 84,143  Due after one year through 5 years 1,293  Total investments in debt securities $ 85,436 

Balance Sheet Components (Table

Balance Sheet Components (Tables)	6 Months Ended
	Jun. 30, 2017
Balance Sheet Components [Abstract]
Components Of Inventory	   June 30, December 31,  (in thousands) 2017 2016  Purchased materials $ 6,803 $ 4,817  Work in process 6,695 7,287  Finished goods 3,768 3,530  Inventory $ 17,266 $ 15,634 
Components Of Prepaid Expenses And Other Current Assets	  June 30, December 31,  (in thousands) 2017 2016  Receivable from Prior Landlord $ 755 $ 5,000  Rent deposits for O'Brien building 1,080 2,160  Prepaid expenses 1,140 2,342  Other current assets 570 476  Prepaid expenses and other current assets $ 3,545 $ 9,978 
Components Of Other Long-term Assets	  June 30, December 31,  (in thousands) 2017 2016  Rent deposits and tenant improvements for O'Brien building $ — $ 9,641  Other 184 172  Other long-term assets $ 184 $ 9,813 
Components Of Property And Equipment, Net	  June 30, December 31,  (in thousands) 2017 2016  Building $ — $ 1,160  Laboratory equipment and machinery 23,853 23,337  Leasehold improvements 31,170 8,138  Computer equipment 9,096 7,170  Software 4,600 5,189  Furniture and fixtures 2,411 823  Construction in progress 1,272 5,772  72,402 51,589  Less: Accumulated depreciation (32,113) (37,029)  Property and equipment, net $ 40,289 $ 14,560 

Commitments And Contingencies (

Commitments And Contingencies (Tables)	6 Months Ended
	Jun. 30, 2017
Commitments And Contingencies [Abstract]
Schedule Of Minimum Future Lease Payments Receivable	  Amount  Years ending December 31, (in thousands)  Remaining of 2017 $ 3,171  2018 6,822  2019 6,930  2020 7,056  2021 7,272  Thereafter 46,710  Total minimum lease payments $ 77,961 

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	6 Months Ended
	Jun. 30, 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 (5,258) 5,258 3.30 – 5.27 5.10  Options exercised — (1,231) 1.16 – 4.55 2.54  Options canceled 936 (936) 1.16 – 16.0 7.24  Balances, June 30, 2017 7,147 25,592 $ 1.16 – 16.00 $ 6.20 
Schedule Of Stock-Based Compensation Expense	   Three-Month Periods Ended June 30, Six-Month Periods Ended June 30,  2017 2016 2017 2016  Cost of revenue $ 572 $ 562 $ 1,095 $ 1,061  Research and development 2,029 2,131 4,060 4,041  Sales, general and administrative 2,408 2,345 4,839 4,517  Total stock-based compensation expense $ 5,009 $ 5,038 $ 9,994 $ 9,619 
Schedule Of Fair Value Of Employee Stock Options	   Three-Month Periods Ended June 30, Six-Month Periods Ended June 30,  Stock Option 2017 2016 2017 2016  Expected term in years 6.1 6.1 6.1 6.1  Expected volatility 70% 70% 70% 70%  Risk-free interest rate 1.9% 1.4% 2.1% 1.5%  Dividend yield — — — —  
Schedule Of Fair Value Of Employee Stock Purchase Plan	   Three-Month Periods Ended June 30, Six-Month Periods Ended June 30,  ESPP 2017 2016 2017 2016  Expected term in years 0.5 - 2.0 0.5 - 2.0 0.5 - 2.0 0.5 - 2.0  Expected volatility 70% 70% 70% 70%  Risk-free interest rate 0.8% - 1.3% 0.5% - 0.9% 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		6 Months Ended	12 Months Ended
	Jun. 30, 2017	Mar. 31, 2017	Jun. 30, 2017	Dec. 31, 2016	Jan. 01, 2017	Dec. 31, 2015
Cost related to change in estimated fair value of leased instruments	$ 300,000	$ 1,300,000
Fair value assets liabilities transfer between levels			$ 0
Future cash flows weighted average market yield	9.20%		9.20%	10.60%		10.60%
Deferred tax assets					$ 321,500,000
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 On A Recurring Basis) (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Assets
Total assets measured at fair value	$ 107,096	$ 76,478
Liabilities
Total liabilities measured at fair value	15	356
Financing Derivative [Member]
Liabilities
Total liabilities measured at fair value	15	356
Cash and cash equivalents [Member]
Assets
Total cash and cash equivalents	36,478	16,765
Cash and cash equivalents [Member] | Cash and money market funds [Member]
Assets
Total cash and cash equivalents	17,160	14,516
Cash and cash equivalents [Member] | Commercial paper [Member]
Assets
Total cash and cash equivalents	19,318	2,249
Investments [Member]
Assets
Total investments	66,118	55,213
Investments [Member] | Commercial paper [Member]
Assets
Total investments	29,640	23,583
Investments [Member] | Corporate debt securities [Member]
Assets
Total investments	9,715	10,739
Investments [Member] | U.S. government and agency securities [Member]
Assets
Total investments	26,763	20,579
Investments [Member] | Asset backed securities [Member]
Assets
Total investments		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	21,660	19,016
Level 1 [Member] | Cash and cash equivalents [Member]
Assets
Total cash and cash equivalents	17,160	14,516
Level 1 [Member] | Cash and cash equivalents [Member] | Cash and money market funds [Member]
Assets
Total cash and cash equivalents	17,160	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	85,436	57,462
Level 2 [Member] | Cash and cash equivalents [Member]
Assets
Total cash and cash equivalents	19,318	2,249
Level 2 [Member] | Cash and cash equivalents [Member] | Commercial paper [Member]
Assets
Total cash and cash equivalents	19,318	2,249
Level 2 [Member] | Investments [Member]
Assets
Total investments	66,118	55,213
Level 2 [Member] | Investments [Member] | Commercial paper [Member]
Assets
Total investments	29,640	23,583
Level 2 [Member] | Investments [Member] | Corporate debt securities [Member]
Assets
Total investments	9,715	10,739
Level 2 [Member] | Investments [Member] | U.S. government and agency securities [Member]
Assets
Total investments	26,763	20,579
Level 2 [Member] | Investments [Member] | Asset backed securities [Member]
Assets
Total investments		312
Level 3 [Member]
Liabilities
Total liabilities measured at fair value	15	356
Level 3 [Member] | Financing Derivative [Member]
Liabilities
Total liabilities measured at fair value	$ 15	$ 356

Summary Of Significant Accoun22

Summary Of Significant Accounting Policies (Changes In Fair Value Of Financial Derivative) (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2017USD ($)
Summary Of Significant Accounting Policies [Abstract]
Balance as of December 31, 2016	$ 356
Gain on change in estimated fair value	(341)
Balance as of June 30, 2017	$ 15

Summary Of Significant Accoun23

Summary Of Significant Accounting Policies (Estimated Fair Value And Carrying Value Of Notes) (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Estimated Fair Value [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Notes payable	$ 15,958	$ 19,788
Carrying Value [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Notes payable	$ 13,084	$ 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 shares in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Stock Options [Member]
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Options outstanding	25,592	22,588

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

Jun. 30, 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	Jun. 30, 2017	Dec. 31, 2016
Schedule of Available-for-sale Securities [Line Items]
Amortized cost	$ 102,612	$ 71,973
Gross unrealized gains	2	13
Gross unrealized losses	(18)	(8)
Fair value	102,596	71,978
Cash and cash equivalents [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized cost	36,479	16,765
Gross unrealized gains
Gross unrealized losses	(1)
Fair value	36,478	16,765
Investments [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized cost	66,133	55,208
Gross unrealized gains	2	13
Gross unrealized losses	(17)	(8)
Fair value	66,118	55,213
Cash and money market funds [Member] | Cash and cash equivalents [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized cost	17,160	14,516
Gross unrealized gains
Gross unrealized losses
Fair value	17,160	14,516
Commercial paper [Member] | Cash and cash equivalents [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized cost	19,319	2,249
Gross unrealized gains
Gross unrealized losses	(1)
Fair value	19,318	2,249
Commercial paper [Member] | Investments [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized cost	29,640	23,581
Gross unrealized gains	2	5
Gross unrealized losses	(2)	(3)
Fair value	29,640	23,583
Corporate debt securities [Member] | Investments [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized cost	9,718	10,741
Gross unrealized gains		1
Gross unrealized losses	(3)	(3)
Fair value	9,715	10,739
Asset backed securities [Member] | Investments [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized cost		312
Gross unrealized gains
Gross unrealized losses
Fair value		312
U.S. government and agency securities [Member] | Investments [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized cost	26,775	20,574
Gross unrealized gains		7
Gross unrealized losses	(12)	(2)
Fair value	26,763	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	Jun. 30, 2017USD ($)
Cash, Cash Equivalents And Investments [Abstract]
Due in one year or less	$ 84,143
Due after one year through five years	1,293
Total investments in debt securities	$ 85,436

Balance Sheet Components (Narra

Balance Sheet Components (Narrative) (Details) - USD ($)	Jul. 22, 2015	Jun. 30, 2017	Mar. 31, 2017	Jun. 30, 2017	Jan. 31, 2017	Dec. 31, 2016	Jul. 23, 2015
Balance Sheet Components [Line Items]
Receivable from Prior Landlord		$ 755,000		$ 755,000		$ 5,000,000
Prepaid expenses and other current assets		3,545,000		3,545,000		9,978,000
Other long-term assets		184,000		184,000		9,813,000
Peninsula Innovation Partners, LLC [Member]
Balance Sheet Components [Line Items]
Lease incentive receivable, noncurrent							$ 20,000,000
Receivable from Prior Landlord						5,000,000
Peninsula Innovation Partners, LLC [Member] | Third Lease Amendment Agreement [Member]
Balance Sheet Components [Line Items]
Landlord periodic payment received			$ 2,628,000
Increase in receivable from Existing Landlord					$ 5,000,000
Increase in landlord payments					$ 65,000
Peninsula Innovation Partners, LLC [Member] | Fourth Lease Amendment Agreement [Member]
Balance Sheet Components [Line Items]
Landlord periodic payment received		1,682,000
Receivable from Prior Landlord		755,000		755,000
O’Brien Lease Agreement [Member]
Balance Sheet Components [Line Items]
Prepaid expenses and other current assets		$ 1,100,000	2,200,000	$ 1,100,000		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

Balance Sheet Components (Compo

Balance Sheet Components (Components Of Inventory) (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Balance Sheet Components [Abstract]
Purchased materials	$ 6,803	$ 4,817
Work in process	6,695	7,287
Finished goods	3,768	3,530
Inventory	$ 17,266	$ 15,634

Balance Sheet Components (Com30

Balance Sheet Components (Components Of Prepaid Expenses And Other Current Assets) (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Balance Sheet Components [Abstract]
Receivable from Prior Landlord	$ 755	$ 5,000
Rent deposits for O'Brien building	1,080	2,160
Prepaid expenses	1,140	2,342
Other current assets	570	476
Prepaid expenses and other current assets	$ 3,545	$ 9,978

Balance Sheet Components (Com31

Balance Sheet Components (Components Of Other Long-Term Assets) (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Balance Sheet Components [Abstract]
Rent deposits and tenant improvements for O'Brien building		$ 9,641
Other	$ 184	172
Other long-term assets	$ 184	$ 9,813

Balance Sheet Components (Com32

Balance Sheet Components (Components Of Property and Equipment, Net) (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Property, Plant and Equipment [Line Items]
Property and equipment	$ 72,402	$ 51,589
Less: Accumulated depreciation	(32,113)	(37,029)
Property and equipment, net	40,289	14,560
Building [Member]
Property, Plant and Equipment [Line Items]
Property and equipment		1,160
Laboratory Equipment And Machinery [Member]
Property, Plant and Equipment [Line Items]
Property and equipment	23,853	23,337
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment	31,170	8,138
Computer Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment	9,096	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	2,411	823
Construction in Progress [Member]
Property, Plant and Equipment [Line Items]
Property and equipment	$ 1,272	$ 5,772

Notes Payable (Narrative) (Deta

Notes Payable (Narrative) (Details) - USD ($)	Jun. 23, 2017	Feb. 28, 2013	Jun. 30, 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
Warrants outstanding		5,500,000	0	0
Repayment of notes payable			$ 4,500,000
Future cash flows weighted average market yield			9.20%	10.60%		10.60%
Fair value of the financing derivative			$ 15,000	$ 356,000		$ 400,000
Fair value of the warrants		$ 6,400,000
Notes payable, current			2,643,000
Notes [Member]
Debt Instrument [Line Items]
Repayment of notes payable	$ 4,500,000
Fair value of the notes		$ 14,100,000
Aggregate principal amount			16,000,000	20,500,000
Debt discount that has yet to be amortized			$ 2,900,000	$ 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%
Cash and cash equivalent minimum amount quarterly required		$ 2,000,000
Percentage of principal amount repaid		100.00%
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			$ 2,600,000

Commitments And Contingencies34

Commitments And Contingencies (Narrative) (Details)	Jul. 23, 2015USD ($)item	Jul. 22, 2015USD ($)	Jun. 30, 2017USD ($)	Aug. 31, 2016USD ($)	Feb. 29, 2016USD ($)	Sep. 30, 2015USD ($)	Jun. 30, 2017USD ($)	Mar. 31, 2017USD ($)	Jun. 30, 2016USD ($)	Sep. 30, 2015USD ($)	Jun. 30, 2017USD ($)	Jun. 30, 2016USD ($)	Jan. 31, 2017USD ($)	Dec. 31, 2016USD ($)	Oct. 31, 2015USD ($)	Dec. 31, 2009USD ($)
Operating Leased Assets [Line Items]
Property, plant and equipment			$ 72,402,000				$ 72,402,000				$ 72,402,000			$ 51,589,000
Future minimum rent payments			77,961,000				77,961,000				77,961,000
Other liabilities, non-current														1,664,000
Receivable from Prior Landlord			755,000				755,000				755,000			5,000,000
Rent expense							1,600,000		$ 48,000		3,100,000	$ 100,200
Prepaid expenses and other current assets			3,545,000				3,545,000				3,545,000			9,978,000
Other long-term assets			184,000				184,000				184,000			9,813,000
Long-term restricted cash			4,500,000				4,500,000				4,500,000			4,500,000
Deferred rent, non-current			14,599,000				14,599,000				$ 14,599,000			19,000
Peninsula Innovation Partners, LLC [Member]
Operating Leased Assets [Line Items]
Receivable from Prior Landlord														5,000,000
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			1,100,000				1,100,000	$ 2,200,000			$ 1,100,000			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			4,500,000
Tenant improvements								28,900,000
Tenant allowance paid by landlord								12,600,000
Deferred rent, non-current								12,600,000
Leasehold Improvements [Member]
Operating Leased Assets [Line Items]
Property, plant and equipment			31,170,000				31,170,000				31,170,000			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
Lease Amendment Agreement [Member] | Peninsula Innovation Partners, LLC [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] | Peninsula Innovation Partners, LLC [Member]
Operating Leased Assets [Line Items]
Prepaid expenses and other current assets														$ 5,000,000
Third Lease Amendment Agreement [Member] | Peninsula Innovation Partners, LLC [Member]
Operating Leased Assets [Line Items]
Landlord periodic payment received								$ 2,628,000
Increase in receivable from Existing Landlord													$ 5,000,000
Increase in landlord payments													$ 65,000
Fourth Lease Amendment Agreement [Member] | Peninsula Innovation Partners, LLC [Member]
Operating Leased Assets [Line Items]
Landlord periodic payment received			1,682,000
Receivable from Prior Landlord			$ 755,000				$ 755,000				$ 755,000

Commitments And Contingencies35

Commitments And Contingencies (Schedule Of Minimum Future Lease Payments Remaining) (Details) $ in Thousands	Jun. 30, 2017USD ($)
Commitments And Contingencies [Abstract]
Remaining of 2017	$ 3,171
2,018	6,822
2,019	6,930
2,020	7,056
2,021	7,272
Thereafter	46,710
Total minimum lease payments	$ 77,961

Stockholders' Equity (Narrative

Stockholders' Equity (Narrative) (Details) $ / shares in Units, $ in Thousands	Jun. 20, 2017USD ($)$ / sharesshares	Jun. 15, 2017$ / sharesshares	Jun. 30, 2017USD ($)item$ / sharesshares	Mar. 31, 2016shares	Jun. 30, 2017USD ($)item$ / sharesshares	Jun. 30, 2016USD ($)shares	Feb. 28, 2017USD ($)	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 | $					$ 6,231	$ 4,502
Holders may elect to receive net proceeds from financing activities, percentage					25.00%
Common Stock, par value | $ / shares			$ 0.001		$ 0.001			$ 0.001
Repayment of notes payable | $					$ 4,500
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
Warrants outstanding			0		0			0	5,500,000
Number of equity compensation plans | item			3		3
Maximum [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Additional shares authorized, underwriting agreement		2,312,903
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		1,841,595
At the Market Offering [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares issued			3,200,000		3,200,000
Average common stock price per share | $ / shares			$ 3.86		$ 3.86
Proceeds from issuance of common stock from equity plans | $			$ 11,900		$ 11,900
Common stock offering price shares | $							$ 60,000
Commissions					3.00%
Underwritten Public Equity Offering [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares issued	17,732,257
Proceeds from issuance of common stock from equity plans | $	$ 52,700
Commissions	4.00%
Shares authorized, underwriting agreement		15,419,354
Option to purchase additional shares, period		30 days
Common Stock, par value | $ / shares		$ 0.001
Price per share | $ / shares	$ 3.10	$ 3.10
Other accrued offering expenses | $			$ 200		$ 200

Stockholders' Equity (Summary O

Stockholders' Equity (Summary Of Stock Option Activity) (Details) - Stock Options [Member] - $ / shares shares in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 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, June 30, 2017, Shares available for grant	7,147	6,835
Balances, December 31, 2016, Number of shares	22,501
Balances, June 30, 2017, Number of shares	25,592	22,501
Exercise price, lower range	$ 1.16	$ 1.16
Exercise price, upper range	16	16
Balances, December 31, 2015, Weighted average exercise price per share	6.30
Balances, December 31, 2016, Weighted average exercise price per share	$ 6.20	$ 6.30
$3.30 – 5.27 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options granted, Shares available for grant	(5,258)
Options granted, Number of shares	5,258
Exercise price, lower range	$ 3.30
Exercise price, upper range	5.27
Options granted, Weighted average exercise price per share	$ 5.10
$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	(1,231)
Exercise price, lower range	$ 1.16
Exercise price, upper range	4.55
Options exercised, Weighted average exercise price per share	$ 2.54
$1.16 – 16.00 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options canceled, Shares available for grant	936
Options canceled, Number of shares	(936)
Exercise price, lower range	$ 1.16
Exercise price, upper range	16
Options canceled, Weighted average exercise price per share	$ 7.24

Stockholders' Equity (Schedule

Stockholders' Equity (Schedule Of Stock-Based Compensation Expense) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation	$ 5,009	$ 5,038	$ 9,994	$ 9,619
Cost of revenue [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation	572	562	1,095	1,061
Research and development [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation	2,029	2,131	4,060	4,041
Sales, general and administrative [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation	$ 2,408	$ 2,345	$ 4,839	$ 4,517

Stockholders' Equity (Schedul39

Stockholders' Equity (Schedule Of Fair Value Of Employee Stock Options) (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Risk-free interest rate, maximum			1.30%
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	6 years 1 month 6 days	6 years 1 month 6 days
Expected volatility	70.00%	70.00%	70.00%	70.00%
Risk-free interest rate	1.90%	1.40%	2.10%	1.50%
Dividend yield

Stockholders' Equity (Schedul40

Stockholders' Equity (Schedule Of Fair Value Of Employee Stock Purchase Plan) (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Risk-free interest rate, maximum			1.30%
ESPP [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected volatility	70.00%	70.00%	70.00%	70.00%
Risk-free interest rate, minimum	0.80%	0.50%	0.80%	0.50%
Risk-free interest rate, maximum	1.30%	0.90%		0.90%
Dividend yield
ESPP [Member] | Minimum [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected term	6 months	6 months	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	2 years	2 years