EyePoint Pharmaceuticals (EYPT) 10-Q 6 Nov 15 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Sep. 30, 2015	Nov. 02, 2015
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2015
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1
Trading Symbol	PSDV
Entity Registrant Name	pSivida Corp.
Entity Central Index Key	1,314,102
Current Fiscal Year End Date	--06-30
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		29,417,365

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2015	Jun. 30, 2015
Current assets:
Cash and cash equivalents	$ 14,088	$ 19,121
Marketable securities	9,917	9,414
Accounts and other receivables	569	622
Prepaid expenses and other current assets	589	681
Total current assets	25,163	29,838
Property and equipment, net	318	338
Intangible assets, net	1,713	1,925
Other assets	116	116
Restricted cash	150	150
Total assets	27,460	32,367
Current liabilities:
Accounts payable	893	744
Accrued expenses	2,067	2,571
Deferred revenue	33	33
Total current liabilities	2,993	3,348
Deferred revenue, less current portion	5,587	5,596
Deferred rent	57	55
Total liabilities	$ 8,637	$ 8,999
Stockholders' equity:
Preferred stock, $.001 par value, 5,000,000 shares authorized, none issued and outstanding
Common stock, $.001 par value, 60,000,000 shares authorized, 29,417,365 and 29,412,365 shares issued and outstanding at September 30, 2015 and June 30, 2015, respectively	$ 29	$ 29
Additional paid-in capital	293,474	293,060
Accumulated deficit	(275,599)	(270,666)
Accumulated other comprehensive income	919	945
Total stockholders' equity	18,823	23,368
Total liabilities and stockholders' equity	$ 27,460	$ 32,367

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2015	Jun. 30, 2015
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	60,000,000	60,000,000
Common stock, shares issued	29,417,365	29,412,365
Common stock, shares outstanding	29,417,365	29,412,365

Condensed Consolidated Statemen

Condensed Consolidated Statements of Comprehensive (Loss) Income - USD ($) shares in Thousands	3 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Revenues:
Collaborative research and development	$ 180,000	$ 25,081,000
Royalty income	286,000	226,000
Total revenues	466,000	25,307,000
Operating expenses:
Research and development	3,482,000	2,784,000
General and administrative	1,968,000	1,734,000
Total operating expenses	5,450,000	4,518,000
(Loss) income from operations	(4,984,000)	20,789,000
Interest and other income	10,000	3,000
(Loss) income before income taxes	(4,974,000)	20,792,000
Income tax benefit (expense)	41,000	(226,000)
Net (loss) income	$ (4,933,000)	$ 20,566,000
Net (loss) income per common share:
Basic	$ (0.17)	$ 0.70
Diluted	$ (0.17)	$ 0.67
Weighted average common shares:
Basic	29,416	29,323
Diluted	29,416	30,765
Net (loss) income	$ (4,933,000)	$ 20,566,000
Other comprehensive (loss) income:
Foreign currency translation adjustments	(28,000)	(50,000)
Net unrealized gain (loss) on marketable securities	2,000	(3,000)
Other comprehensive loss	(26,000)	(53,000)
Comprehensive (loss) income	$ (4,959,000)	$ 20,513,000

Condensed Consolidated Stateme5

Condensed Consolidated Statement of Stockholders' Equity - 3 months ended Sep. 30, 2015 - USD ($) $ in Thousands	Total	Common Stock [Member]	Additional Paid-In Capital [Member]	Accumulated Deficit [Member]	Accumulated Other Comprehensive Income [Member]
Balance at Jun. 30, 2015	$ 23,368	$ 29	$ 293,060	$ (270,666)	$ 945
Balance, shares at Jun. 30, 2015	29,412,365	29,412,365
Net income (loss)	$ (4,933)	$ 0	0	(4,933)	0
Other comprehensive (loss) income	(26)	0	0	0	(26)
Exercise of stock options	9	$ 0	9	0	0
Exercise of stock options, shares		5,000
Stock-based compensation	405	$ 0	405	0	0
Balance at Sep. 30, 2015	$ 18,823	$ 29	$ 293,474	$ (275,599)	$ 919
Balance, shares at Sep. 30, 2015	29,417,365	29,417,365

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Cash flows from operating activities:
Net (loss) income	$ (4,933)	$ 20,566
Adjustments to reconcile net (loss) income to cash flows from operating activities:
Amortization of intangible assets	192	196
Depreciation of property and equipment	29	35
Stock-based compensation expense	405	309
Amortization of bond premium on marketable securities	34	18
Changes in operating assets and liabilities:
Accounts receivable and other current assets	136	(25,323)
Accounts payable and accrued expenses	(350)	235
Deferred revenue	(8)	(35)
Deferred rent	2	5
Net cash used in operating activities	(4,493)	(3,994)
Cash flows from investing activities:
Purchases of marketable securities	(2,535)	(251)
Maturities of marketable securities	2,000	250
Purchases of property and equipment	(11)	(6)
Net cash used in investing activities	(546)	(7)
Cash flows from financing activities:
Proceeds from exercise of stock options	9	56
Net cash provided by financing activities	9	56
Effect of foreign exchange rate changes on cash and cash equivalents	(3)	(5)
Net decrease in cash and cash equivalents	(5,033)	(3,950)
Cash and cash equivalents at beginning of period	19,121	15,334
Cash and cash equivalents at end of period	$ 14,088	$ 11,384

Operations and Basis of Present

Operations and Basis of Presentation	3 Months Ended
	Sep. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Operations and Basis of Presentation	1. Operations and Basis of Presentation The accompanying condensed consolidated financial statements of pSivida Corp. and subsidiaries (the “Company”) as of September 30, 2015 and for the three months ended September 30, 2015 and 2014 are unaudited. Certain information in the footnote disclosures of these financial statements has been condensed or omitted in accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”). These financial statements should be read in conjunction with the Company’s audited consolidated financial statements and footnotes included in its Annual Report on Form 10-K for the fiscal year ended June 30, 2015. In the opinion of management, these statements have been prepared on the same basis as the audited consolidated financial statements as of and for the year ended June 30, 2015, and include all adjustments, consisting only of normal recurring adjustments, that are necessary for the fair presentation of the Company’s financial position, results of operations, comprehensive (loss) income and cash flows for the periods indicated. The preparation of financial statements in accordance with U.S. generally accepted accounting principles (“GAAP”) requires management to make assumptions and estimates that affect, among other things, (i) reported amounts of assets and liabilities; (ii) disclosure of contingent assets and liabilities at the date of the consolidated financial statements; and (iii) reported amounts of revenues and expenses during the reporting period. The results of operations for the three months ended September 30, 2015 are not necessarily indicative of the results that may be expected for the entire fiscal year or any future period. The Company develops sustained-release pharmaceutical products for treating eye diseases. Its products deliver drugs at a controlled and steady rate for months or years. The Company has developed three of only four sustained-release products approved by the U.S. Food and Drug Administration (“FDA”) for treatment of back-of-the-eye diseases. The Company’s lead product candidate Medidur™ is in pivotal Phase III clinical trials, and its lead licensed product ILUVIEN ® Medidur is an injectable, sustained-release micro-insert designed to treat chronic non-infectious uveitis affecting the posterior segment of the eye (“posterior uveitis”) for three years from a single administration. Medidur, which is the same micro-insert as ILUVIEN, is in two Phase III trials. The Company plans to file a new drug application (“NDA”) in the first half of 2017 based on six-month efficacy data from both trials and data from a short-duration utilization study of its redesigned proprietary inserter, together with data referenced from the Phase III trials of ILUVIEN. The Company is developing Medidur independently. ILUVIEN®, the Company’s most recently approved product, is an injectable, sustained-release micro-insert that provides treatment of diabetic macular edema (“DME”) for up to three years from a single administration. ILUVIEN is licensed to and sold by Alimera Sciences, Inc. (“Alimera”), and the Company is entitled to a share of the net profits (as defined) from Alimera’s sales of ILUVIEN on a quarter-by-quarter, country-by-country basis. ILUVIEN was launched in late February 2015 in the U.S., where it is indicated for the treatment of DME in patients previously treated with a course of corticosteroids without a clinically significant rise in intraocular pressure. ILUVIEN was also launched in Portugal in January 2015, and has been commercially available in the United Kingdom and Germany since June 2013. ILUVIEN has marketing approvals in 17 EU countries for the treatment of chronic DME considered insufficiently responsive to available therapies. Distribution, regulatory and reimbursement matters for ILUVIEN for DME in Australia and New Zealand, Canada and Italy have been sublicensed. The Company’s FDA-approved Retisert ® The Company’s pre-clinical development program is focused on developing products using its Durasert™ and Tethadur™ technology platforms to deliver drugs and biologics to treat wet and dry age-related macular degeneration (“AMD”), glaucoma, osteoarthritis and other diseases. The Company has a history of operating losses and has financed its operations primarily from the receipt of license fees, milestone payments, research and development funding and royalty income from its collaboration partners and from proceeds of sales of its equity securities. The Company believes that its cash, cash equivalents and marketable securities of $24.0 million at September 30, 2015, together with expected cash inflows under existing collaboration agreements, will enable the Company to maintain its current and planned operations (including its two Medidur Phase III clinical trials) into early calendar year 2017. This estimate excludes any potential receipts from the commercialization of ILUVIEN. The Company’s ability to fund its planned operations beyond then, including completion of clinical development of Medidur, is expected to depend on the amount and timing of cash receipts under the Alimera collaboration agreement, as well as proceeds from any future collaboration or other agreements and/or financing transactions. New accounting pronouncements are issued periodically by the Financial Accounting Standards Board (“FASB”) and are adopted by the Company as of the specified effective dates. Unless otherwise disclosed below, the Company believes that recently issued and adopted pronouncements will not have a material impact on the Company’s financial position, results of operations and cash flows or do not apply to the Company’s operations. In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements – Going Concern

License and Collaboration Agree

License and Collaboration Agreements	3 Months Ended
	Sep. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
License and Collaboration Agreements	2. License and Collaboration Agreements Alimera Under the collaboration agreement with Alimera, as amended in March 2008 (the “Alimera Agreement”), the Company licensed to Alimera the rights to develop, market and sell certain product candidates, including ILUVIEN, and Alimera assumed all financial responsibility for the development of licensed products. In addition, the Company is entitled to receive 20% of any net profits (as defined) on sales of each licensed product (including ILUVIEN) by Alimera, measured on a quarter-by-quarter and country-by-country basis. Alimera may recover 20% of previously incurred and unapplied net losses (as defined) for commercialization of each product in a country, but only by an offset of up to 4% of the net profits earned in that country each quarter, reducing the Company’s net profit share to 16% in each country until those net losses are recouped. In the event that Alimera sublicenses commercialization in any country, the Company is entitled to 20% of royalties and 33% of non-royalty consideration received by Alimera, less certain permitted deductions. The Company is also entitled to reimbursement of certain patent maintenance costs with respect to the patents licensed to Alimera. The Company’s performance obligations ended on December 31, 2009, and, accordingly, all amounts received thereafter under the Alimera Agreement are recognized as revenue upon receipt or at such earlier date, if applicable, on which any such amounts are both fixed and determinable and reasonably assured of collectability. Revenue under the Alimera Agreement totaled $163,000 and $25.0 million for the three months ended September 30, 2015 and 2014, respectively. In addition to patent fee reimbursements in both periods, the Company earned $157,000 of non-royalty sublicense consideration during the three months ended September 30, 2015 and a $25.0 million milestone as a result of the FDA approval of ILUVIEN during the three months ended September 30, 2014. Pfizer In June 2011, the Company and Pfizer entered into an Amended and Restated Collaborative Research and License Agreement (the “Restated Pfizer Agreement”) to focus solely on the development of a sustained-release bioerodible micro-insert designed to deliver latanoprost for human ophthalmic disease or conditions other than uveitis (the “Latanoprost Product”). Pfizer made an upfront payment of $2.3 million and the Company agreed to use commercially reasonable efforts to fund the development for at least one year, including assumption of an investigator-sponsored Phase I/II dose-escalation study. The Company may, at its option, conduct Phase II clinical trials, which to date have not been undertaken, for the purpose of demonstrating Proof-of-Concept (“POC”). If the Company were to issue a final report demonstrating POC, Pfizer would have a 90-day exercise option for an exclusive, worldwide license to develop and commercialize the Latanoprost Product in return for a $20.0 million payment and potential double-digit sales-based royalties and prescribed development, regulatory and sales performance milestone payments. If the Company elects to cease development of the Latanoprost Product prior to POC, Pfizer could exercise its option for the same worldwide license upon payment of a lesser option fee, with comparable reductions in any future milestones and royalties. If Pfizer does not exercise its option when available, the Restated Pfizer Agreement will automatically terminate, with any remaining deferred revenue balance recorded as revenue at that time, provided, however, that the Company would retain the right to develop and commercialize the Latanoprost Product. As a result of the material modification of the Pfizer arrangement, the estimated selling price of the combined deliverables under the Restated Pfizer Agreement of $6.7 million is being recognized as collaborative research and development revenue over the expected performance period using the proportional performance method. As of September 30, 2015, the Company continues to evaluate whether to undertake Phase II clinical trials and, consequently, the Company cannot currently estimate the remaining performance period and has therefore not recognized any additional revenue. As a result, the current portion of deferred revenue was $0 at each of September 30, 2015 and June 30, 2015. Total deferred revenue was approximately $5.6 million at each of September 30, 2015 and June 30, 2015. The Company recorded no collaborative research and development revenue during each of the three-month periods ended September 30, 2015 and 2014. Costs associated with developing the Latanoprost Product are reflected in operating expenses in the period in which they are incurred. Pfizer owned approximately 6.3% of the Company’s outstanding common stock at September 30, 2015. Bausch & Lomb Pursuant to a licensing and development agreement, as amended, Bausch & Lomb has a worldwide exclusive license to make and sell Retisert in return for royalties based on sales. Bausch & Lomb was also licensed to make and sell Vitrasert, an implant for sustained treatment of CMV retinitis, but discontinued sales in the second quarter of fiscal 2013 following patent expiration. Royalty income totaled $286,000 and $226,000 for the three months ended September 30, 2015 and 2014, respectively. Accounts receivable from Bausch & Lomb totaled $295,000 at September 30, 2015 and $371,000 at June 30, 2015. Enigma Therapeutics The Company entered into an exclusive, worldwide royalty-bearing license agreement in December 2012, amended and restated in March 2013, with Enigma Therapeutics Limited (“Enigma”) for the development of BrachySil, the Company’s BioSilicon product candidate for the treatment of pancreatic and other types of cancer. The Company received an upfront fee of $100,000 and is entitled to 8% sales-based royalties, 20% of sublicense consideration and milestone payments based on aggregate product sales. Enigma is obligated to pay an annual license maintenance fee of $100,000 by the end of each calendar year, the first of which was received in January 2014. For each calendar year commencing with 2014, the Company is entitled to receive reimbursement of any patent maintenance costs, sales-based royalties and sub-licensee sales-based royalties earned, but only to the extent such amounts, in the aggregate, exceed the $100,000 annual license maintenance fee. The Company has no consequential performance obligations under the Enigma license agreement and, accordingly, any amounts to which the Company is entitled under the agreement are recognized as revenue on the earlier of receipt or when collectability is reasonably assured. There was no revenue related to the Enigma agreement during each of the three-month periods ended September 30, 2015 and 2014. As of September 30, 2015, no deferred revenue was recorded for this agreement. Evaluation Agreements The Company from time to time enters into funded agreements to evaluate the potential use of its technology systems for sustained release of third party drug candidates in the treatment of various diseases. Consideration received is generally recognized as revenue over the term of the feasibility study agreement. Revenue recognition for consideration, if any, related to a license option right is assessed based on the terms of any such future license agreement or is otherwise recognized at the completion of the evaluation agreement. Revenues under evaluation agreements totaled $8,000 and $35,000 for the three months ended September 30, 2015 and 2014, respectively.

Intangible Assets

Intangible Assets	3 Months Ended
	Sep. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets	3. Intangible Assets The reconciliation of intangible assets for the three months ended September 30, 2015 and for the year ended June 30, 2015 was as follows (in thousands): Three Months Ended Year Ended Patented technologies Gross carrying amount at beginning of period $ 39,710 $ 41,689 Foreign currency translation adjustments (835 ) (1,979 ) Gross carrying amount at end of period 38,875 39,710 Accumulated amortization at beginning of period (37,785 ) (38,924 ) Amortization expense (192 ) (770 ) Foreign currency translation adjustments 815 1,909 Accumulated amortization at end of period (37,162 ) (37,785 ) Net book value at end of period $ 1,713 $ 1,925 The Company amortizes its intangible assets with finite lives on a straight-line basis over their respective estimated useful lives. Amortization of intangible assets totaled $192,000 and $196,000 for the three months ended September 30, 2015 and 2014, respectively. The carrying value of intangible assets at September 30, 2015 of $1.7 million (approximately $1.2 million attributable to the Durasert technology and $0.5 million attributable to the BioSilicon™ technology (including Tethadur)) is expected to be amortized on a straight-line basis over the remaining estimated useful life of 2.25 years, or approximately $761,000 per year.

Marketable Securities

Marketable Securities	3 Months Ended
	Sep. 30, 2015
Investments, Debt and Equity Securities [Abstract]
Marketable Securities	4. Marketable Securities The amortized cost, unrealized loss and fair value of the Company’s available-for-sale marketable securities at September 30, 2015 and June 30, 2015 were as follows (in thousands): September 30, 2015 Amortized Unrealized Fair Value Corporate bonds $ 9,920 $ (3 ) $ 9,917 June 30, 2015 Amortized Unrealized Fair Value Corporate bonds $ 9,419 $ (5 ) $ 9,414 During the three months ended September 30, 2015, $2.5 million of marketable securities were purchased and $2.0 million of such securities matured. At September 30, 2015, the marketable securities had maturities ranging from 0.3 to 9.6 months, with a weighted average maturity of 4.3 months.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Sep. 30, 2015
Fair Value Disclosures [Abstract]
Fair Value Measurements	5. Fair Value Measurements The Company accounts for certain assets and liabilities at fair value. The hierarchy below lists three levels of fair value based on the extent to which inputs used in measuring fair value are observable in the market. The Company categorizes each of its fair value measurements in one of these three levels based on the lowest level input that is significant to the fair value measurement in its entirety. These levels are: • Level 1 – Inputs are quoted prices (unadjusted) in active markets that are accessible at the measurement date for identical assets and liabilities. • Level 2 – Inputs are directly or indirectly observable in the marketplace, such as quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities with insufficient volume or infrequent transaction (less active markets). • Level 3 – Inputs are unobservable estimates that are supported by little or no market activity and require the Company to develop its own assumptions about how market participants would price the assets or liabilities. Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash, cash equivalents and marketable securities. At September 30, 2015 and June 30, 2015, substantially all of the Company’s interest-bearing cash equivalent balances were concentrated in one institutional money market fund that has investments consisting primarily of certificates of deposit, commercial paper, time deposits, U.S. government agencies, treasury bills and treasury repurchase agreements. These deposits may be redeemed upon demand and, therefore, generally have minimal risk. The Company’s cash equivalents and marketable securities are classified within Level 1 or Level 2 on the basis of valuations using quoted market prices or alternative pricing sources and models utilizing market observable inputs, respectively. Certain of the Company’s corporate debt securities were valued based on quoted prices for the specific securities in an active market and were therefore classified as Level 1. The remaining marketable securities have been valued on the basis of valuations provided by third-party pricing services, as derived from such services’ pricing models. Inputs to the models may include, but are not limited to, reported trades, executable bid and ask prices, broker/dealer quotations, prices or yields of securities with similar characteristics, benchmark curves or information pertaining to the issuer, as well as industry and economic events. The pricing services may use a matrix approach, which considers information regarding securities with similar characteristics to determine the valuation for a security, and have been classified as Level 2. The following tables summarize the Company’s assets carried at fair value measured on a recurring basis at September 30, 2015 and June 30, 2015 by valuation hierarchy (in thousands): September 30, 2015 Total carrying Quoted prices in (Level 1) Significant other (Level 2) Significant (Level 3) Assets: Cash equivalents $ 11,602 $ 11,602 $ — $ — Marketable securities Corporate bonds 9,917 5,574 4,343 — $ 21,519 $ 17,176 $ 4,343 $ — June 30, 2015 Total carrying Quoted prices in (Level 1) Significant other (Level 2) Significant (Level 3) Assets: Cash equivalents $ 15,835 $ 15,835 $ — $ — Marketable securities Corporate bonds 9,414 7,413 2,001 — $ 25,249 $ 23,248 $ 2,001 $ —

Accrued Expenses

Accrued Expenses	3 Months Ended
	Sep. 30, 2015
Payables and Accruals [Abstract]
Accrued Expenses	6. Accrued Expenses Accrued expenses consisted of the following at September 30, 2015 and June 30, 2015 (in thousands): September 30, 2015 June 30, 2015 Clinical trial costs $ 1,418 $ 1,424 Personnel costs 344 735 Professional fees 280 384 Other 25 28 $ 2,067 $ 2,571

Stockholders' Equity

Stockholders' Equity	3 Months Ended
	Sep. 30, 2015
Equity [Abstract]
Stockholders' Equity	7. Stockholders’ Equity In December 2013, the Company entered into an at-the-market (“ATM”) program pursuant to which the Company may, at its option, offer and sell shares of its common stock from time to time for an aggregate offering price of up to $19.2 million, representing the then remaining balance of the Company’s shelf registration statement. In connection with execution of the ATM program, the Company incurred transaction costs of $153,000. In addition, the Company pays the sales agent a commission of up to 3.0% of the gross proceeds from the sale of such shares. During the three-month periods ended September 30, 2015 and 2014, the Company did not sell any shares under this program. Warrants to Purchase Common Shares During each of the three-month periods ended September 30, 2015 and 2014, a total of 1,176,105 warrants to purchase common shares were outstanding and exercisable at a weighted-average exercise price of $3.67. At September 30, 2015, the remaining term of these warrants ranged from approximately 4 months to 1.9 years, representing a weighted average period of 1.1 years. Incentive Plan The Company’s 2008 Incentive Plan (the “2008 Plan”) provides for the issuance of stock options and other stock awards to directors, employees and consultants. At September 30, 2015, a total of 7,091,255 shares of common stock were authorized for issuance under the 2008 Plan, of which 1,427,791 were available for grant of future awards. Shares issuable under the 2008 Plan are subject to an annual increase pursuant to the terms of the plan. The following table provides a reconciliation of stock option activity under the 2008 Plan for the three months ended September 30, 2015: Number of Weighted Weighted Aggregate (in years) (in thousands) Outstanding at July 1, 2015 4,447,975 $ 3.36 Granted 446,000 4.09 Exercised (5,000 ) 1.81 Outstanding at September 30, 2015 4,888,975 $ 3.42 6.33 $ 2,839 Outstanding at September 30, 2015 - vested and unvested and expected to vest 4,795,301 $ 3.41 6.28 $ 2,829 Exercisable at September 30, 2015 3,490,538 $ 3.19 5.36 $ 2,667 During the three months ended September 30, 2015, the Company granted 446,000 options to employees with ratable annual vesting over 4 years and a 10-year term. The weighted-average grant date fair value of these options was $2.87 per share. A total of 601,355 options vested during the three months ended September 30, 2015. In determining the grant date fair value of options, the Company uses the Black-Scholes option pricing model. The Company calculated the Black-Scholes value of options awarded during the three months ended September 30, 2015 based on the following key assumptions: Option life (in years) 6.25 Stock volatility 80 % Risk-free interest rate 1.89 % Expected dividends 0 % Stock-Based Compensation Expense The Company’s statements of comprehensive (loss) income included total compensation expense from stock-based payment awards for the three months ended September 30, 2015 and 2014, as follows (in thousands): Three Months Ended September 30, 2015 2014 Compensation expense included in: Research and development $ 145 $ 112 General and administrative 260 197 $ 405 $ 309 At September 30, 2015, there was approximately $2.4 million of unrecognized compensation expense related to unvested options under the 2008 Plan, which is expected to be recognized as expense over a weighted average period of approximately 2.0 years.

Income Taxes

Income Taxes	3 Months Ended
	Sep. 30, 2015
Income Tax Disclosure [Abstract]
Income Taxes	8. Income Taxes The Company recognizes deferred tax assets and liabilities for estimated future tax consequences of events that have been recognized in the financial statements or tax returns. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial statement and tax basis of assets and liabilities using the enacted tax rates in effect for the year in which the differences are expected to reverse. A valuation allowance is established if, based on management’s review of both positive and negative evidence, it is more likely than not that all or a portion of the deferred tax assets will not be realized. Because of its historical losses from operations, the Company established a valuation allowance for the net deferred tax assets. The Company recorded an income tax benefit of $41,000 for the three months ended September 30, 2015 and income tax expense of $226,000 for the three months ended September 30, 2014. The Company recorded $4,000 and $260,000 of federal alternative minimum tax expense for the three months ended September 30, 2015 and 2014, respectively, as a result of taxable income for the tax year ended December 31, 2014, which was primarily attributable to revenue recognition of the $25.0 million FDA approval milestone. Earned foreign research and development tax credits totaled $45,000 and $34,000 for the three months ended September 30, 2015 and 2014, respectively. For the three months ended September 30, 2015 and 2014, the Company had no significant unrecognized tax benefits. At September 30, 2015 and June 30, 2015, the Company had no accrued penalties or interest related to uncertain tax positions.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Sep. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	9. Commitments and Contingencies In March 2014, the Company leased new U.S. office and laboratory space in Watertown, Massachusetts and provided a cash-collateralized $150,000 irrevocable standby letter of credit as security for the Company’s obligations under the lease. The initial lease term extends through April 2019, with a five-year renewal option at market rates. In addition to base rent, the Company is obligated to pay its proportionate share of building operating expenses and real estate taxes in excess of base year amounts. The Company is subject to various routine legal proceedings and claims incidental to its business, which management believes will not have a material effect on the Company’s financial position, results of operations or cash flows.

Net (Loss) Income per Share

Net (Loss) Income per Share	3 Months Ended
	Sep. 30, 2015
Earnings Per Share [Abstract]
Net (Loss) Income per Share	10. Net (Loss) Income per Share Basic net (loss) income per share is computed by dividing the net (loss) income by the weighted average number of common shares outstanding during the period. For periods in which the Company reports net income, diluted net income per share is determined by adding to the basic weighted average number of common shares outstanding the total number of dilutive common equivalent shares using the treasury stock method, unless the effect is anti-dilutive. The following table reconciles the number of shares used to compute basic and diluted net (loss) income per share: Three Months Ended September 30, 2015 2014 Number of common shares - basic 29,415,572 29,322,708 Effect of dilutive securities: Stock options — 1,164,260 Warrants — 277,926 Number of common shares - diluted 29,415,572 30,764,894 Potential common stock equivalents excluded from the calculation of diluted earnings per share because the effect would have been anti-dilutive were as follows: September 30, 2015 2014 Options outstanding 4,888,975 1,230,724 Warrants outstanding 1,176,105 552,500 6,065,080 1,783,224

Intangible Assets (Tables)

Intangible Assets (Tables)	3 Months Ended
	Sep. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Reconciliation of Intangible Assets	The reconciliation of intangible assets for the three months ended September 30, 2015 and for the year ended June 30, 2015 was as follows (in thousands): Three Months Ended Year Ended Patented technologies Gross carrying amount at beginning of period $ 39,710 $ 41,689 Foreign currency translation adjustments (835 ) (1,979 ) Gross carrying amount at end of period 38,875 39,710 Accumulated amortization at beginning of period (37,785 ) (38,924 ) Amortization expense (192 ) (770 ) Foreign currency translation adjustments 815 1,909 Accumulated amortization at end of period (37,162 ) (37,785 ) Net book value at end of period $ 1,713 $ 1,925

Marketable Securities (Tables)

Marketable Securities (Tables)	3 Months Ended
	Sep. 30, 2015
Investments, Debt and Equity Securities [Abstract]
Schedule of Amortized Cost, Unrealized Loss and Fair Value of Available-for-Sale Marketable Securities	The amortized cost, unrealized loss and fair value of the Company’s available-for-sale marketable securities at September 30, 2015 and June 30, 2015 were as follows (in thousands): September 30, 2015 Amortized Unrealized Fair Value Corporate bonds $ 9,920 $ (3 ) $ 9,917 June 30, 2015 Amortized Unrealized Fair Value Corporate bonds $ 9,419 $ (5 ) $ 9,414

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Sep. 30, 2015
Fair Value Disclosures [Abstract]
Assets Carried at Fair Value Measured on Recurring Basis	The following tables summarize the Company’s assets carried at fair value measured on a recurring basis at September 30, 2015 and June 30, 2015 by valuation hierarchy (in thousands): September 30, 2015 Total carrying Quoted prices in (Level 1) Significant other (Level 2) Significant (Level 3) Assets: Cash equivalents $ 11,602 $ 11,602 $ — $ — Marketable securities Corporate bonds 9,917 5,574 4,343 — $ 21,519 $ 17,176 $ 4,343 $ — June 30, 2015 Total carrying Quoted prices in (Level 1) Significant other (Level 2) Significant (Level 3) Assets: Cash equivalents $ 15,835 $ 15,835 $ — $ — Marketable securities Corporate bonds 9,414 7,413 2,001 — $ 25,249 $ 23,248 $ 2,001 $ —

Accrued Expenses (Tables)

Accrued Expenses (Tables)	3 Months Ended
	Sep. 30, 2015
Payables and Accruals [Abstract]
Schedule of Accrued Expenses	Accrued expenses consisted of the following at September 30, 2015 and June 30, 2015 (in thousands): September 30, 2015 June 30, 2015 Clinical trial costs $ 1,418 $ 1,424 Personnel costs 344 735 Professional fees 280 384 Other 25 28 $ 2,067 $ 2,571

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	3 Months Ended
	Sep. 30, 2015
Key Assumptions Used to Apply Option Pricing Model for Options Awarded	The Company calculated the Black-Scholes value of options awarded during the three months ended September 30, 2015 based on the following key assumptions: Option life (in years) 6.25 Stock volatility 80 % Risk-free interest rate 1.89 % Expected dividends 0 %
Compensation Expense from Stock-Based Payment Awards	The Company’s statements of comprehensive (loss) income included total compensation expense from stock-based payment awards for the three months ended September 30, 2015 and 2014, as follows (in thousands): Three Months Ended September 30, 2015 2014 Compensation expense included in: Research and development $ 145 $ 112 General and administrative 260 197 $ 405 $ 309
2008 Incentive Plan [Member]
Stock Option Activity under Plan	The following table provides a reconciliation of stock option activity under the 2008 Plan for the three months ended September 30, 2015: Number of Weighted Weighted Aggregate (in years) (in thousands) Outstanding at July 1, 2015 4,447,975 $ 3.36 Granted 446,000 4.09 Exercised (5,000 ) 1.81 Outstanding at September 30, 2015 4,888,975 $ 3.42 6.33 $ 2,839 Outstanding at September 30, 2015 - vested and unvested and expected to vest 4,795,301 $ 3.41 6.28 $ 2,829 Exercisable at September 30, 2015 3,490,538 $ 3.19 5.36 $ 2,667

Net (Loss) Income per Share (Ta

Net (Loss) Income per Share (Tables)	3 Months Ended
	Sep. 30, 2015
Earnings Per Share [Abstract]
Schedule that Reconciles the Number of Shares Used to Compute Basic and Diluted Net (Loss) Income Per Share	The following table reconciles the number of shares used to compute basic and diluted net (loss) income per share: Three Months Ended September 30, 2015 2014 Number of common shares - basic 29,415,572 29,322,708 Effect of dilutive securities: Stock options — 1,164,260 Warrants — 277,926 Number of common shares - diluted 29,415,572 30,764,894
Potentially Dilutive Securities Excluded from Computation of Diluted Weighted-Average Shares	Potential common stock equivalents excluded from the calculation of diluted earnings per share because the effect would have been anti-dilutive were as follows: September 30, 2015 2014 Options outstanding 4,888,975 1,230,724 Warrants outstanding 1,176,105 552,500 6,065,080 1,783,224

Operations and Basis of Prese23

Operations and Basis of Presentation - Additional Information (Detail) $ in Millions	3 Months Ended
	Sep. 30, 2015USD ($)Country
Operations [Line Items]
Cash equivalents and marketable securities	$ 24
Europe [Member] | ILUVIEN [Member]
Operations [Line Items]
Number of countries approved for lead product | Country	17

License and Collaboration Agr24

License and Collaboration Agreements - Additional Information (Detail) - USD ($)	3 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Mar. 31, 2013	Jun. 30, 2011	Jun. 30, 2015	Dec. 31, 2014
Collaborative Agreements And Contracts [Line Items]
Milestone payment received upon an FDA approval of ILUVIEN						$ 25,000,000
Collaborative research and development revenue	$ 180,000	$ 25,081,000
Current portion of deferred revenue	33,000				$ 33,000
Deferred revenue, less current portion	$ 5,587,000				5,596,000
Percentage of outstanding share capital owned by Pfizer	6.30%
Royalty income	$ 286,000	226,000
Accounts receivable	$ 569,000				622,000
Enigma Therapeutics Limited [Member]
Collaborative Agreements And Contracts [Line Items]
Percentage of royalties received from sublicense	8.00%
Percentage of non-royalty consideration received from sublicense	20.00%
Collaborative research and development revenue	$ 0	0
License agreement commencement date	2012-12
Upfront payment			$ 100,000
Annual license maintenance fee	$ 100,000
Deferred revenue	$ 0
Alimera [Member]
Collaborative Agreements And Contracts [Line Items]
Percentage of company's share of net profits	20.00%
Pre-profitability net losses percentage	20.00%
Maximum Percentage offset of previously incurred and unapplied pre-profitability quarterly net losses	4.00%
Percentage of net profit share after offset of previously incurred and unapplied pre-profitability net losses	16.00%
Percentage of royalties received from sublicense	20.00%
Percentage of non-royalty consideration received from sublicense	33.00%
Milestone payment received upon an FDA approval of ILUVIEN		25,000,000
Collaborative research and development revenue	$ 163,000	25,000,000
Non-royalty consideration received from sublicense	157,000
Pfizer Collaboration Agreement [Member]
Collaborative Agreements And Contracts [Line Items]
Collaborative research and development revenue	$ 0	0
Upfront payment				$ 2,300,000
Contingent option exercise period	90 days
License option upfront payment upon exercise	$ 20,000,000
Estimated selling price of the deliverables for revenue recognition				$ 6,700,000
Current portion of deferred revenue	0				0
Deferred revenue, less current portion	5,600,000				5,600,000
Bausch and Lomb [Member]
Collaborative Agreements And Contracts [Line Items]
Royalty income	286,000	226,000
Accounts receivable	295,000				$ 371,000
Evaluation Agreements [Member]
Collaborative Agreements And Contracts [Line Items]
Collaborative research and development revenue	$ 8,000	$ 35,000

Intangible Assets - Reconciliat

Intangible Assets - Reconciliation of Intangible Assets (Detail) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Jun. 30, 2015
Finite-Lived Intangible Assets [Line Items]
Amortization expense	$ (192)	$ (196)
Net book value at end of period	1,713		$ 1,925
Patented Technologies [Member]
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount at beginning of period	39,710	41,689	41,689
Foreign currency translation adjustments	(835)		(1,979)
Gross carrying amount at end of period	38,875		39,710
Accumulated amortization at beginning of period	(37,785)	$ (38,924)	(38,924)
Amortization expense	(192)		(770)
Foreign currency translation adjustments	815		1,909
Accumulated amortization at end of period	(37,162)		(37,785)
Net book value at end of period	$ 1,713		$ 1,925

Intangible Assets - Additional

Intangible Assets - Additional Information (Detail) - USD ($)	3 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Jun. 30, 2015
Finite-Lived Intangible Assets [Line Items]
Amortization expense	$ 192,000	$ 196,000
Intangible assets, net	1,713,000		$ 1,925,000
Amortization expense per year	$ 761,000
Remaining estimated useful life	2 years 3 months
Durasert [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets, net	$ 1,200,000
BioSilicon [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets, net	$ 500,000

Marketable Securities - Schedul

Marketable Securities - Schedule of Amortized Cost, Unrealized Loss and Fair Value of Available-for-Sale Marketable Securities (Detail) - Corporate Bonds [Member] - USD ($) $ in Thousands	Sep. 30, 2015	Jun. 30, 2015
Schedule of Available-for-sale Securities [Line Items]
Marketable securities, Amortized Cost	$ 9,920	$ 9,419
Marketable securities, Unrealized Loss	(3)	(5)
Marketable securities, Fair Value	$ 9,917	$ 9,414

Marketable Securities - Additio

Marketable Securities - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Schedule of Available-for-sale Securities [Line Items]
Marketable securities purchased	$ 2,535	$ 251
Marketable securities matured	$ 2,000	$ 250
Weighted average maturity	4 months 9 days
Minimum [Member]
Schedule of Available-for-sale Securities [Line Items]
Marketable securities maturity period	9 days
Maximum [Member]
Schedule of Available-for-sale Securities [Line Items]
Marketable securities maturity period	9 months 18 days

Fair Value Measurements - Asset

Fair Value Measurements - Assets Carried at Fair Value Measured on Recurring Basis (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Jun. 30, 2015
Assets:
Cash equivalents	$ 11,602	$ 15,835
Marketable securities	9,917	9,414
Cash equivalents and marketable securities	21,519	25,249
Corporate Bonds [Member]
Assets:
Marketable securities	9,917	9,414
Quoted Prices in Active Markets (Level 1) [Member]
Assets:
Cash equivalents	11,602	15,835
Cash equivalents and marketable securities	17,176	23,248
Quoted Prices in Active Markets (Level 1) [Member] | Corporate Bonds [Member]
Assets:
Marketable securities	5,574	7,413
Significant Other Observable Inputs (Level 2) [Member]
Assets:
Cash equivalents	0	0
Cash equivalents and marketable securities	4,343	2,001
Significant Other Observable Inputs (Level 2) [Member] | Corporate Bonds [Member]
Assets:
Marketable securities	4,343	2,001
Significant Unobservable Inputs (Level 3) [Member]
Assets:
Cash equivalents	0	0
Cash equivalents and marketable securities	0	0
Significant Unobservable Inputs (Level 3) [Member] | Corporate Bonds [Member]
Assets:
Marketable securities	$ 0	$ 0

Accrued Expenses - Schedule of

Accrued Expenses - Schedule of Accrued Expenses (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Jun. 30, 2015
Payables and Accruals [Abstract]
Clinical trial costs	$ 1,418	$ 1,424
Personnel costs	344	735
Professional fees	280	384
Other	25	28
Accrued expenses	$ 2,067	$ 2,571

Stockholders' Equity - Addition

Stockholders' Equity - Additional Information (Detail) - USD ($)	1 Months Ended	3 Months Ended
	Dec. 31, 2013	Sep. 30, 2015	Sep. 30, 2014
Class of Stock [Line Items]
Number of warrants		1,176,105	1,176,105
Weighted Average Exercise Price		$ 3.67	$ 3.67
Outstanding warrants remaining contract life, weighted average period		1 year 1 month 6 days
Weighted-average grant date fair value, per share		$ 2.87
Options vested during the period		601,355
Unrecognized compensation expense		$ 2,400,000
Unrecognized compensation expense weighted average period		2 years
At-the-Market Offering [Member]
Class of Stock [Line Items]
Common stock shares maximum aggregate offering price	$ 19,200,000
Agreement transaction costs	$ 153,000
Stock issuances, sales agent commission maximum percentage	3.00%
Common stock issued to investors		0	0
Minimum [Member]
Class of Stock [Line Items]
Outstanding warrants remaining contract life		4 months
Maximum [Member]
Class of Stock [Line Items]
Outstanding warrants remaining contract life		1 year 10 months 24 days
2008 Incentive Plan [Member]
Class of Stock [Line Items]
Number of common stock, authorized for issuance		7,091,255
Shares available for grant		1,427,791
Options granted with annual vesting		446,000
Ratable annual vesting period of granted options		4 years
Contractual life of option grants		10 years

Stockholders' Equity - Stock Op

Stockholders' Equity - Stock Option Activity Under Plan (Detail) - 2008 Incentive Plan [Member] $ / shares in Units, $ in Thousands	3 Months Ended
	Sep. 30, 2015USD ($)$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Options Outstanding, Beginning balance	4,447,975
Number of Options, Granted	446,000
Number of Options, Exercised	(5,000)
Number of Options Outstanding, Ending balance	4,888,975
Number of Options,Outstanding at September 30, 2015 - vested and unvested and expected to vest	4,795,301
Number of Options,Exercisable at September 30, 2015	3,490,538
Weighted Average Exercise Price Outstanding, beginning balance | $ / shares	$ 3.36
Weighted Average Exercise Price, Granted | $ / shares	4.09
Weighted Average Exercise Price, Exercised | $ / shares	1.81
Weighted Average Exercise Price Outstanding, ending balance | $ / shares	3.42
Weighted Average Exercise Price,Outstanding at September 30, 2015 - vested and unvested and expected to vest | $ / shares	3.41
Weighted Average Exercise Price,Exercisable at September 30, 2015 | $ / shares	$ 3.19
Weighted Average Remaining Contractual Life Outstanding, Ending balance	6 years 3 months 29 days
Weighted Average Remaining Contractual Life,Outstanding at September 30, 2015 - vested and unvested and expected to vest	6 years 3 months 11 days
Weighted Average Remaining Contractual Life,Exercisable at September 30, 2015	5 years 4 months 10 days
Aggregate Intrinsic Value Outstanding, Ending balance | $	$ 2,839
Aggregate Intrinsic Value, Outstanding at September 30, 2015 - vested and unvested and expected to vest | $	2,829
Aggregate Intrinsic Value, Exercisable at September 30, 2015 | $	$ 2,667

Stockholders' Equity - Key Assu

Stockholders' Equity - Key Assumptions Used to Apply Option Pricing Model for Options Awarded (Detail)	3 Months Ended
	Sep. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Option life (in years)	6 years 3 months
Stock volatility	80.00%
Risk-free interest rate	1.89%
Expected dividends	0.00%

Stockholders' Equity - Compensa

Stockholders' Equity - Compensation Expense from Stock-Based Payment Awards (Detail) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	$ 405	$ 309
Research and Development Expense [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	145	112
General and Administrative Expense [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	$ 260	$ 197

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($)	3 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Jun. 30, 2015	Dec. 31, 2014
Income Tax Disclosure [Abstract]
Income tax expense (benefit)	$ (41,000)	$ 226,000
Federal alternative minimum tax expense	4,000	260,000
Milestone payment received upon an FDA approval of ILUVIEN				$ 25,000,000
Foreign current income tax benefit	45,000	34,000
Unrecognized tax benefits	0	$ 0
Accrued penalties or interest related to uncertain tax positions	$ 0		$ 0

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail)	1 Months Ended
	Mar. 31, 2014USD ($)
Operating Leased Assets [Line Items]
Irrevocable standby letter of credit	$ 150,000
Watertown [Member]
Operating Leased Assets [Line Items]
Initial lease term expiration date	2019-04
Lease renewal, Period	5 years

Net (Loss) Income per Share - S

Net (Loss) Income per Share - Schedule that Reconciles the Number of Shares Used to Compute Basic and Diluted Net (Loss) Income per Share (Detail) - shares	3 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Earnings Per Share [Abstract]
Number of common shares - basic	29,416,000	29,323,000
Effect of dilutive securities:
Stock options	0	1,164,260
Warrants	0	277,926
Number of common shares - diluted	29,416,000	30,765,000

Net (Loss) Income per Share - P

Net (Loss) Income per Share - Potentially Dilutive Securities Excluded from Computation of Diluted Weighted-Average Shares (Detail) - shares	3 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive common stock equivalents outstanding excluded from diluted earnings per share calculation	6,065,080	1,783,224
Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive common stock equivalents outstanding excluded from diluted earnings per share calculation	4,888,975	1,230,724
Warrants [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive common stock equivalents outstanding excluded from diluted earnings per share calculation	1,176,105	552,500