Xencor (XNCR) 10-Q 7 Aug 17 2017 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2017	Aug. 01, 2017
Document and Entity Information
Entity Registrant Name	Xencor Inc
Entity Central Index Key	1,326,732
Document Type	10-Q
Document Period End Date	Jun. 30, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		46,926,340
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q2

Balance Sheets

Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Current assets
Cash and cash equivalents	$ 11,220	$ 14,528
Marketable securities	177,269	115,608
Accounts receivable	14,876	8,616
Prepaid expenses and other current assets	7,617	2,901
Total current assets	210,982	141,653
Property and equipment, net	3,861	3,105
Patents, licenses, and other intangible assets, net	10,865	10,362
Marketable securities - long term	190,242	273,340
Other assets	214	103
Total assets	416,164	428,563
Current liabilities
Accounts payable	7,379	3,880
Accrued expenses	3,984	6,692
Current portion of deferred rent		128
Current portion of deferred revenue	95,613	95,521
Income taxes	455	65
Total current liabilities	107,431	106,286
Deferred rent, less current portion	614	397
Deferred revenue, less current portion	6,754	7,926
Total liabilities	114,799	114,609
Commitments and contingencies
Stockholders' equity
Preferred stock, $0.01 par value: 10,000,000 authorized shares; -0- issued and outstanding shares at June 30, 2017 and December 31, 2016
Common stock, $0.01 par value: 200,000,000 authorized shares at June 30, 2017 and December 31, 2016; 46,854,762 issued and outstanding at June 30, 2017 and 46,567,978 issued and outstanding at December 31, 2016	468	466
Additional paid-in capital	562,017	553,290
Accumulated other comprehensive loss	(1,240)	(1,441)
Accumulated deficit	(259,880)	(238,361)
Total stockholders' equity	301,365	313,954
Total liabilities and stockholders' equity	$ 416,164	$ 428,563

Balance Sheets (Parenthetical)

Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2017	Dec. 31, 2016
Condensed Balance Sheets
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	46,854,762	46,567,978
Common stock, shares outstanding	46,854,762	46,567,978

Statements of Comprehensive Inc

Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Revenue
Collaborations, licenses and milestones	$ 13,340	$ 66,007	$ 17,681	$ 73,259
Operating expenses
Research and development	16,919	14,408	31,967	24,443
General and administrative	4,091	3,043	8,903	6,993
Total operating expenses	21,010	17,451	40,870	31,436
Income (loss) from operations	(7,670)	48,556	(23,189)	41,823
Other income (expenses)
Interest income	1,038	368	2,095	726
Interest expense	(3)	(10)	(5)	(37)
Other income	30		30	4
Total other income, net	1,065	358	2,120	693
Income (loss) before income tax	(6,605)	48,914	(21,069)	42,516
Income tax expense	280	1,749	450	1,749
Net income (loss)	(6,885)	47,165	(21,519)	40,767
Other comprehensive income (loss)
Net unrealized gain (loss) on marketable securities	(44)	113	201	732
Comprehensive income (loss)	$ (6,929)	$ 47,278	$ (21,318)	$ 41,499
Net income (loss) per share attributable to common shareholders:
Basic net income (loss) (in dollars per share)	$ (0.15)	$ 1.16	$ (0.46)	$ 1
Diluted net income (loss) (in dollars per share)	$ (0.15)	$ 1.13	$ (0.46)	$ 0.98
Weighted average shares used to compute net income (loss) per share attributable to common stockholders:
Basic (in shares)	46,767,759	40,800,586	46,683,744	40,703,688
Diluted (in shares)	46,767,759	41,738,460	46,683,744	41,701,262

Statement of Stockholders' Equi

Statement of Stockholders' Equity - USD ($) $ in Thousands	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Loss	Accumulated Deficit	Total
Increase (Decrease) in Stockholders' Equity
Adoption of ASU 2016-09 (see Note 1) | Accounting Standard Update 2016 09		$ 401		$ (401)
Balance, restated	$ 466	553,290	$ (1,441)	(238,361)	$ 313,954
Balance (Scenario, Previously Reported) at Dec. 31, 2016	$ 466	552,889	(1,441)	(237,960)	313,954
Balance at Dec. 31, 2016					313,954
Balance (in shares) (Scenario, Previously Reported) at Dec. 31, 2016	46,567,978
Balance (in shares) at Dec. 31, 2016	46,567,978
Increase (Decrease) in Stockholders' Equity
Issuance of common stock upon exercise and vesting of stock awards	$ 2	1,678			1,680
Issuance of common stock upon exercise and vesting of stock awards (in shares)	252,278
Issuance of common stock under the employee stock purchase plan		442			442
Issuance of common stock under the employee stock purchase plan (in shares)	34,506
Comprehensive income (loss)			201	(21,519)	(21,318)
Stock-based compensation expense		6,607			6,607
Balance at Jun. 30, 2017	$ 468	$ 562,017	$ (1,240)	$ (259,880)	$ 301,365
Balance (in shares) at Jun. 30, 2017	46,854,762

Statements of Cash Flows

Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Cash flows from operating activities
Net income (loss)	$ (21,519)	$ 40,767
Adjustments to reconcile net income (loss) to net cash used in operating activities
Depreciation and amortization	864	628
Amortization of premium on marketable securities	1,356	876
Stock-based compensation	6,607	3,993
Abandonment of capitalized intangible assets	225	45
Gain on sale of marketable securities available-for-sale		(3)
Changes in operating assets and liabilities:
Accounts receivable	(6,260)	(150,310)
Interest receivable	(144)	160
Prepaid expenses and other assets	(4,727)	(1,031)
Accounts payable	3,500	1,294
Accrued expenses	(2,708)	(357)
Income taxes	390	1,781
Deferred rent	(12)	(53)
Deferred revenue	(1,080)	78,541
Net cash used in operating activities	(23,508)	(23,669)
Cash flows from investing activities
Purchase of marketable securities	(33,440)	(7,123)
Purchase of intangible assets	(1,092)	(761)
Purchase of property and equipment	(1,256)	(493)
Proceeds from sale and maturities of marketable securities	53,866	26,660
Net cash provided by investing activities	18,078	18,283
Cash flows from financing activities
Proceeds from issuance of common stock upon exercise of stock awards	1,680	447
Proceeds from issuance of common stock under the Employee Stock Purchase Plan	442	226
Net cash provided by financing activities	2,122	673
Net decrease in cash and cash equivalents	(3,308)	(4,713)
Cash and cash equivalents, beginning of period	14,528	12,590
Cash and cash equivalents, end of period	11,220	7,877
Cash paid during the period for:
Interest	5
Income taxes	60
Supplemental disclosures of non-cash investing activities
Unrealized gain on marketable securities available for sale	$ 201	$ 732

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2017
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	1. Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited interim financial statements for Xencor, Inc. (the Company) have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information. The financial statements include all adjustments (consisting only of normal recurring adjustments) that the management of the Company believes are necessary for a fair presentation of the periods presented. The preparation of interim financial statements requires the use of management’s estimates and assumptions that affect reported amounts of assets and liabilities at the date of the interim financial statements and the reported revenues and expenditures during the reported periods. These interim financial results are not necessarily indicative of the results expected for the full fiscal year or for any subsequent interim period. The accompanying unaudited interim financial statements and related notes should be read in conjunction with the audited financial statements and notes thereto included in the Company’s 2016 Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC) on March 1, 2017. Marketable Securities The Company has an investment policy that includes guidelines on acceptable investment securities, minimum credit quality, maturity parameters and concentration and diversification. The Company invests its excess cash primarily in marketable securities issued by investment grade institutions. The Company considers its marketable securities to be available-for-sale. These assets are carried at fair value and the unrealized gains and losses are included in accumulated other comprehensive income (loss). Accrued interest on marketable securities is included in marketable securities. If a decline in the value of a marketable security in the Company’s investment portfolio is deemed to be other-than-temporary, the Company writes down the security to its current fair value and recognizes a loss as a charge against income. The Company reviews its portfolio of marketable securities, using both quantitative and qualitative factors, to determine if declines in fair value below cost are other-than-temporary. Recent Accounting Pronouncements Pronouncements Adopted in 2017 In March 2016, the FASB issued ASU No. 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. In addition, the standard allows an entity-wide accounting policy election to either estimate the number of awards that are expected to vest, as currently required, or account for forfeitures of awards in the period that they occur. We adopted the new standard on January 1, 2017 and established an accounting policy election to account for forfeitures when they occur. We applied the modified retrospective approach which resulted in a cumulative-effect adjustment of a decrease of $0.4 million to retained earnings and additional paid-in capital. The adoption will result in periodic adjustments in the recognition of stock compensation expense associated with forfeitures in the period in which they occur. The remaining aspects of adopting ASU 2016-09 did not have a material impact on our financial statement position or results from operations. Pronouncements Not Yet Effective In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers , as a new Topic, Accounting Standards Codification Topic 606 (ASU 2014-09). The new revenue recognition standard provides a five-step analysis of transactions to determine when and how revenue is recognized. The core principle is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customer Topic 606, Principal versus Agent Considerations , which clarifies the implementation guidance on principal versus agent considerations. In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers Topic 606, Identifying Performance Obligations and Licensing , which clarifies certain aspects of identifying performance obligations and licensing implementation guidance. In May 2016, the FASB issued ASU 2016-12, Revenue from Contracts with Customers Topic 606, Narrow-Scope Improvements and Practical Expedients , related to disclosures of remaining performance obligations, as well as other amendments to guidance on collectability, non-cash consideration and the presentation of sales and other similar taxes collected from customers. In December 2016, the FASB issued ASU No. 2016-20, T echnical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers , which amends certain narrow aspects of the guidance issued in ASU 2014-09 including guidance related to the disclosure of remaining performance obligations and prior-period performance obligations, as well as other amendments to the guidance on loan guarantee fees, contract costs, refund liabilities, advertising costs and the clarification of certain examples. These ASUs are effective for public entities for interim and annual reporting periods beginning after December 15, 2017, including interim periods within that year, which for us is the period beginning January 1, 2018. The Company has reviewed the new standard and its current and prior revenue arrangements and determined that there are several provisions in the new standard that will affect its revenue recognition related to such arrangements. Many of the Company’s collaboration arrangements include licensing or intellectual property for rights to certain of its technologies or drug candidates. Additionally, many of these arrangements include upfront payments and potential future payments from partners for future development, regulatory and sales milestones and royalties on sales of approved products. The new standard makes changes to both revenue recognition for licensing of intellectual property and potential milestone revenue for future payments. We believe that these provisions will have the following impact on contract revenues from our collaboration and license agreements: 1) changes in the model for licensing of intellectual property that are functional and distinct performance obligations that may result in a timing difference of revenue recognition. While revenue from these contracts was recognized over the contract term under the revenue recognition guidance in place at the contract’s inception, revenue recognition under the new guidance may be recognized at a point in time. This could change the period of time that we have recognized revenue related to the licensing of our intellectual property. 2) milestone payments that are directly linked to events under the Company’s control will result in variable consideration when determining the contract price under the new guidance and may be recognized earlier when it is probable that the milestone will be achieved without a significant future reversal of cumulative revenue expected. Under current accounting guidance the Company has applied the milestone method of accounting for recognizing such revenue or contingent payments. The new standard may change the period in which such revenue from these arrangements is recognized. The Company is still in the process of completing its review and has not concluded on the impact on the revenue recognized in periods prior to the required adoption date, January 1, 2018. The Company expects to adopt the full retrospective method of implementation which will require the Company to restate its revenue and earnings for the 2016 and 2017 periods. Management will adopt the new standard effective January 1, 2018 and will continue to monitor additional changes, clarifications or interpretations being undertaken by the FASB which may impact management’s implementation approach. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which amends the guidance on reporting credit losses for assets held at amortized cost basis and available for sale debt securities. Credit losses relating to available-for-sale debt securities will be recorded through an allowance for credit losses rather than as a direct write-down to the security. Credit losses on available-for-sale securities will be required when the amortized cost is below the fair market value. The amendment is effective for fiscal years beginning after December 15, 2019 including interim periods within those fiscal years. We will apply the standard’s provision as a cumulative effect adjustment to retained earnings as of the beginning of the first effective reporting period. We do not expect the adoption to have a material impact on our results of operations or financial position. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, which addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. The standard clarifies when cash receipts and cash payments have aspects of more than one class of cash flows and cannot be separated, classification will depend on the predominant source or use. The amendment is effective for fiscal years beginning after December 15, 2017 with early adoption permitted. We continue to review the requirements of this standard and any potential impact it may have on our cash flow statement. In March 2017, the FASB issued ASU No. 2017-08, Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities, which amends the guidance on the amortization period of premiums on certain purchased callable debt securities by shortening the amortization period of premiums to the earliest call date. The amendment affects all entities that hold investments in callable debt securities that have an amortized cost basis in excess of the amount that is repayable by the issuer at the earliest call date. The amendment is effective for fiscal years beginning after December 31, 2018 with early adoption permitted. The Company will review the requirements of the standard but does not anticipate it will have a significant impact on our financial statements. In May 2017, the FASB issued ASU No. 2017-09, Compensation – Stock Compensation (Topic 718): Scope of Modification Accounting . The standard applies when a company changes the terms of a stock compensation award previously granted to an employee where modification accounting applies. According to the standard, modification accounting is not required if (1) the fair value of the modified award (or the award’s calculated value or intrinsic value as appropriate) is the same as the value immediately prior to its modification, (2) the vesting conditions of the modified award are the same as the vesting conditions of the award immediately prior to its modification; and (3) the award’s classification as an equity or liability is the same after the modification as it was immediately prior to its modification. The new standard is effective for annual periods beginning after December 15, 2017 including interim periods within those years. The Company will review the requirements of the standard but does not anticipate it will have a significant impact on our financial statements. There have been no other material changes to the significant accounting policies previously disclosed in the Company’s 2016 Annual Report on Form 10-K.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	6 Months Ended
	Jun. 30, 2017
Fair Value of Financial Instruments
Fair Value of Financial Instruments	2. Fair Value of Financial Instruments Financial instruments included in the financial statements include cash equivalents, marketable securities, accounts receivable, accounts payable and accrued expenses. Marketable securities and cash equivalents are carried at fair value. The fair value of the other financial instruments closely approximates their fair value due to their short maturities. The Company accounts for recurring and non-recurring fair value measurements in accordance with FASB Accounting Standards Codification (ASC) 820, Fair Value Measurements and Disclosures . ASC 820 defines fair value, establishes a fair value hierarchy for assets and liabilities measured at fair value, and requires expanded disclosure about fair value measurements. The ASC 820 hierarchy ranks the quality of reliable inputs, or assumptions, used in the determination of fair value and requires assets and liabilities carried at fair value to be classified and disclosed in one of the following three categories: Level 1— Fair Value is determined by using unadjusted quoted prices that are available in active markets for identical assets or liabilities. Level 2— Fair Value is determined by using inputs other than Level 1 quoted prices that are directly or indirectly observable. Inputs can include quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in markets that are not active. Related inputs can also include those used in valuation or other pricing models, such as interest rates and yield curves that can be corroborated by observable market data. Level 3— Fair value is determined by inputs that are unobservable and not corroborated by market data. Use of these inputs involves significant and subjective judgments to be made by the reporting entity –e.g. determining an appropriate discount factor for illiquidity associated with a given security. The Company measures the fair value of financial assets using the highest level of inputs that are reasonably available as of the measurement date. The assets recorded at fair value are classified within the hierarchy as follows for the periods reported (in thousands): June 30, 2017 December 31, 2016 Total Total Fair Value Level 1 Level 2 Fair Value Level 1 Level 2 Money Market Funds $ 10,063 $ 10,063 $ — $ 12,137 $ 12,137 $ — Corporate Securities 154,098 — 154,098 181,483 — 181,483 Government Securities 213,413 — 213,413 207,465 — 207,465 $ 377,574 $ 10,063 $ 367,511 $ 401,085 $ 12,137 $ 388,948 Our policy is to record transfers of assets between Level 1 and Level 2 at their fair values as of the end of each reporting period, consistent with the date of the determination of fair value. During the three and six months ended June 30, 2017, there were no transfers between Level 1 and Level 2. The Company does not have any Level 3 assets or liabilities.

Net Income (Loss) Per Share

Net Income (Loss) Per Share	6 Months Ended
	Jun. 30, 2017
Net Income (Loss) Per Share
Net Income (Loss) Per Share	3. Net Income (Loss) Per Share We compute net income (loss) per common share by dividing the net income (loss) attributable to common stockholders by the weighted-average number of common shares outstanding during the period without consideration of common stock equivalents. Diluted loss per share is computed by dividing the net income (loss) attributable to common stockholders by the weighted-average number of common stock equivalents outstanding for the period. The treasury stock method is used to determine the dilutive effect of the Company’s stock option grants. Potentially dilutive securities consisting of stock issuable under options and our 2013 Employee Stock Purchase Plan (ESPP) are not included in the diluted net loss per common share calculation where the inclusion of such shares would have had an antidilutive effect. Basic and diluted net income (loss) per common share is computed as follows (in thousands except share and per share data): Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 (in thousands, except share and per share data) Numerator: Net income (loss) attributable to common stockholders $ (6,885) $ 47,165 $ (21,519) $ 40,767 Denominator: Weighted-average common shares outstanding, basic 46,767,759 40,800,586 46,683,744 40,703,688 Dilutive effect of stock options — 937,874 — 997,574 Weighted average common shares outstanding, diluted 46,767,759 41,738,460 46,683,744 41,701,262 Net income (loss) per share, basic $ (0.15) $ 1.16 $ (0.46) $ 1.00 Net income (loss) per share, diluted $ (0.15) $ 1.13 $ (0.46) $ 0.98 For the three and six months ended June 30, 2017 all outstanding potentially dilutive securities have been excluded from the calculation of diluted net loss per common share as the effect of including such securities would have been antidilutive. For the three and six months ended June 30, 2016 there were no shares from the Company’s employee stock purchase plan that had a dilutive effect on shares outstanding.

Comprehensive Income (Loss)

Comprehensive Income (Loss)	6 Months Ended
	Jun. 30, 2017
Comprehensive Income (Loss)
Comprehensive Income (Loss)	4. Comprehensive Income (Loss) Comprehensive income (loss) is comprised of net income (loss) and other comprehensive income (loss). For the three and six months ended June 30, 2017 and 2016, the only component of other comprehensive income (loss) is net unrealized gains (loss) on marketable securities. There were no material reclassifications out of accumulated other comprehensive income (loss) during the three and six months ended June 30, 2017 and 2016.

Marketable Securities

Marketable Securities	6 Months Ended
	Jun. 30, 2017
Marketable Securities
Marketable Securities	5. Marketable Securities The Company’s marketable securities held as of June 30, 2017 and December 31, 2016 are summarized below: Gross Gross Amortized Unrealized Unrealized June 30, 2017 Cost Gains Losses Fair Value (in thousands) Money Market Funds $ 10,063 $ — $ — $ 10,063 Corporate Securities 154,634 2 (538) 154,098 Government Securities 214,108 7 (702) 213,413 $ 378,805 $ 9 $ (1,240) $ 377,574 Reported as Cash and cash equivalents $ 10,063 Marketable securities 367,511 Total investments $ 377,574 Gross Gross Amortized Unrealized Unrealized December 31, 2016 Cost Gains Losses Fair Value (in thousands) Money Market Funds $ 12,137 $ — $ — $ 12,137 Corporate Securities 182,394 6 (917) 181,483 Government Securities 207,986 44 (565) 207,465 $ 402,517 $ 50 $ (1,482) $ 401,085 Reported as Cash and cash equivalents $ 12,137 Marketable securities 388,948 Total investments $ 401,085 The maturities of the Company’s marketable securities are as follows: Amortized Estimated June 30, 2017 Cost Fair Value (in thousands) Mature in one year or less $ 177,542 $ 177,269 Mature after one year 191,200 190,242 $ 368,742 $ 367,511 Amortized Estimated December 31, 2016 Cost Fair Value (in thousands) Mature in one year or less $ 115,748 $ 115,608 Mature after one year 274,632 273,340 $ 390,380 $ 388,948 The unrealized losses on available-for-sale investments and their related fair values as of June 30, 2017 and December 31, 2016 are as follows: Less than 12 months 12 months or greater June 30, 2017 Fair value Unrealized losses Fair value Unrealized losses (in thousands) Corporate Securities $ 92,398 $ (155) $ 53,027 $ (382) Government Securities 75,803 (120) 122,269 (582) $ 168,201 $ (275) $ 175,296 $ (964) Less than 12 months 12 months or greater December 31, 2016 Fair value Unrealized losses Fair value Unrealized losses (in thousands) Corporate Securities $ 82,215 $ (133) $ 88,990 $ (784) Government Securities 17,573 (16) 149,694 (549) $ 99,787 $ (149) $ 238,684 $ (1,333) The unrealized losses from the listed securities are due to a change in the interest rate environment and not a change in the credit quality of the securities.

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
	Jun. 30, 2017
Stock-Based Compensation
Stock-Based Compensation	6. Stock Based Compensation Our Board of Directors and the requisite stockholders previously approved the 2010 Equity Incentive Plan (the 2010 Plan). In October 2013, our Board of Directors approved the 2013 Equity Incentive Plan (the 2013 Plan) and in November 2013 our stockholders approved the 2013 Plan. The 2013 Plan became effective as of December 3, 2013, the date of the Company’s initial public offering (IPO). As of December 2, 2013, we suspended the 2010 Plan and no additional awards may be granted under the 2010 Plan. Any shares of common stock covered by awards granted under the 2010 Plan that terminate after December 2, 2013 by expiration, forfeiture, cancellation or other means without the issuance of such shares will be added to the 2013 Plan reserve. As of June 30, 2017, the total number of shares of common stock available for issuance under the 2013 Plan is 8,637,790, which includes 2,684,456 of common stock that were available for issuance under the 2010 Plan as of the effective date of the 2013 Plan. Unless otherwise determined by the Board, beginning January 1, 2014, and continuing until the expiration of the 2013 Plan, the total number of shares of common stock available for issuance under the 2013 Plan will automatically increase annually on January 1 of each year by 4% of the total number of issued and outstanding shares of common stock as of December 31 of the immediate preceding year. Pursuant to approval by our board on January 1, 2017, the total number of shares of common stock available for issuance under the 2013 Plan was increased by 1,862,719 shares. As of June 30, 2017, a total of 4,790,350 options had been issued under the 2013 Plan. In November 2013, our Board of Directors and stockholders approved the 2013 Employee Stock Purchase Plan (ESPP), which became effective as of December 5, 2013. We have reserved a total of 581,286 shares of common stock for issuance under the ESPP. Unless otherwise determined by our Board, beginning on January 1, 2014, and continuing until the expiration of the ESPP, the total number of shares of common stock available for issuance under the ESPP will automatically increase annually on January 1 by the lesser of (i) 1% of the total number of issued and outstanding shares of common stock as of December 31 of the immediately preceding year, or (ii) 621,814 shares of common stock. Pursuant to approval by our board, there was no increase in the number of authorized shares in the ESPP in 2017. As of June 30, 2017, we have issued a total of 255,992 shares of common stock under the ESPP. Total employee, director and non-employee stock-based compensation expense recognized for the three and six months ended June 30, 2017 are as follows (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 General and administrative $ 1,416 $ 874 $ 2,884 $ 1,826 Research and development 2,032 1,159 3,723 2,167 $ 3,448 $ 2,033 $ 6,607 $ 3,993 The following table summarizes option activity under our stock plans and related information: Weighted Weighted Average Average Number of Exercise Remaining Aggregate Shares subject Price Contractual Intrinsic to outstanding (Per Term Value options Share) (in years) (in thousands) Balances at December 31, 2016 4,045,801 $ 11.95 7.82 Options granted 1,356,100 $ 22.65 Options forfeited (76,606) $ 15.60 Options exercised (252,278) $ 6.66 Balance at June 30, 2017 5,073,017 $ 15.02 7.92 $ 33,950 Exercisable 2,206,587 $ 10.22 6.60 $ 24,051 We calculate the intrinsic value as the difference between the exercise price of the options and the closing price of common stock of $21.11 per share as of June 30, 2017. Weighted average fair value of options granted during the three-month period ended June 30, 2017 and 2016 was $16.95 and $8.45 per share, respectively. There were 1,138,000 options granted during the six-month period ended June 30, 2016. We estimated the fair value of each stock option using the Black-Scholes option-pricing model based on the date of grant of such stock option with the following weighted average assumptions for the three and six months ended June 30, 2017 and 2016: Options Options Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Expected term (years) 6.1 5.9 6.1 6.1 Expected volatility 88.9 % 76.1 % 89.2 % 75.8 % Risk-free interest rate 1.91 % 1.36 % 2.04 % 1.53 % Expected dividend yield — % — % — % — % ESPP ESPP Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Expected term (years) 0.5 - 2.0 0.5 - 2.0 0.5 - 2.0 0.5 - 2.0 Expected volatility 67.8 - 79.8 % 67.8 - 79.6 % 67.8 - 79.8 % 67.8 - 79.6 % Risk-free interest rate .47% - 1.09 % .47% - .93 % .47% - 1.09 % .47% - .93 % Expected dividend yield — % — % — % — % As of June 30, 2017 and 2016, the unamortized compensation expense related to unvested stock options was $35.4 million and $16.3 million, respectively. The remaining unamortized compensation expense will be recognized over the next three years. As of June 30, 2017 and 2016, the unamortized compensation expense under our ESPP was $242,305 and $491,000, respectively. The remaining unamortized expense will be recognized over the next 5.5 months.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2017
Commitments and Contingencies
Commitments and Contingencies	7. Commitments and Contingencies Operating Leases The Company leases office and laboratory space in Monrovia, CA through June 2020. In July 2017, the Company entered into an amended lease agreement for additional space in the same building. The amended lease provides for additional space with a 64-month term with an option to renew for an additional five years. The lease terms for the original space were not amended. The Company also leases office space in San Diego, CA through June 2020. In June 2017, the Company entered into a new lease agreement for additional office space in San Diego. The new lease has a 61-month term beginning from the date of occupancy and includes an option to renew for an additional five years. All leases are accounted for as non-cancellable operating leases and future minimum payments are as follows (in thousands): Years ending December 31, For the remainder of the fiscal year $ 634 2018 2,546 2019 2,726 2020 2,388 2021 1,980 Thereafter 1,406 Rent expense for the six months ended June 30, 2017 and 2016 was $453,000 and $298,000 respectively. Contingencies From time to time, the Company may be subject to various litigation and related matters arising in the ordinary course of business. The Company does not believe it is currently subject to any material matters where there is at least a reasonable possibility that a material loss may be incurred. On March 3, 2015, a verified class action complaint, captioned DePinto v. John S. Stafford, et al., C.A. No. 10742, was filed in the Court of Chancery of the State of Delaware against certain of the Company’s current and former directors alleging cause of action for Breach of Fiduciary Duty and Invalidity of Director and Stockholder Consents. In general, the complaint alleged that the plaintiff and the class he seeks to represent were shareholders of the Company during the recapitalization and certain related transactions that the Company underwent in 2013 and that the defendants breached their fiduciary duties in the course of approving that series of transactions. It also challenged as invalid certain corporate acts taken in the 2013 time period. The plaintiffs and the Company agreed to separate the litigation into two separate claims; Count I relating to the claim of Breach of Fiduciary Duty by the current and former directors of the Company and, Count II relating to the Invalidity of Director and Stockholder consents. On December 14, 2015, the Delaware Chancery Court entered an Order and Partial Final Judgment in connection with Count II and approved the settlement of the invalidity claims, validating each corporate act challenged in the complaint, dismissing with prejudice Count II of the complaint (the invalidity claims) and granting plaintiff’s counsel a fee award of $950,000. We have paid the plaintiff’s legal award of $950,000 net of insurance proceeds of $187,500 which has been reflected as a charge in our 2015 operations. On September 27, 2016, the parties engaged in voluntary mediation and agreed to settle the complaint’s remaining claim, Count II, for a total payment of $2.375 million to the class certified by the Delaware Court of Chancery. The settlement was reached without any party admitting wrong-doing. Under the terms of the settlement, no payments shall be made to the plaintiffs by the Company or any of the defendants in the lawsuit other than payments covered by the Company’s insurance. On April 4, 2017, the Delaware Court of Chancery approved the Settlement between the parties. On May 1, 2017, the Company’s insurance carriers fully funded the settlement account. We recognized legal costs related to the litigation as incurred and offset any insurance proceeds when approved and issued. At December 31, 2016, we reported the $2.355 million settlement as a payable and reflected a receivable of the same amount for the insurance coverage. This amount was paid by the insurance carrier on our behalf in May 2017. We are obligated to make future payments to third parties under in‑license agreements, including sublicense fees, royalties, and payments that become due and payable on the achievement of certain development and commercialization milestones. As the amount and timing of sublicense fees and the achievement and timing of these milestones are not probable and estimable, such commitments have not been included on our balance sheet.

Collaboration and Licensing Agr

Collaboration and Licensing Agreements	6 Months Ended
	Jun. 30, 2017
Collaboration and Licensing Agreements
Collaboration and Licensing Agreements	8. Collaboration and Licensing Agreements Following is a summary description of the arrangements that generated revenue in the six months ended June 30, 2017 and 2016. Novartis In June 2016, the Company entered into a Collaboration and License Agreement (the Novartis Agreement) with Novartis Institutes for BioMedical Research, Inc., (Novartis), to develop and commercialize bispecific and other Fc modulated antibody drug candidates using the Company’s proprietary XmAb® technologies and drug candidates. Pursuant to the Novartis Agreement: · The Company granted Novartis certain exclusive rights to research, develop and commercialize XmAb14045 and XmAb13676, two development stage products that incorporate the Company’s bispecific Fc technology, · The Company will apply its bispecific technology in up to four target pair antibodies identified by Novartis (each a Global Discovery Program) and, · The Company will provide Novartis with a non-exclusive license to certain of its Fc technologies to apply against up to ten targets identified by Novartis. The Company received a non-refundable upfront payment under the Novartis Agreement of $150 million in July 2016 and is eligible to receive up to $2.4 billion in future development, regulatory and sales milestones in total for all programs that could be developed under the Novartis Agreement. The Company evaluated the Novartis Agreement and determined that it is a revenue arrangement with multiple deliverables or performance obligations. The Company’s substantive performance obligations under the Novartis Agreement include: · delivery of an exclusive license to commercialize XmAb14045 in worldwide territories outside the U.S., with worldwide co-exclusive rights with Xencor to research, develop and manufacture XmAb14045, · delivery of an exclusive license to commercialize XmAb13676 in worldwide territories outside the U.S., with worldwide co-exclusive rights with Xencor to research, develop and manufacture XmAb13676, · application of its bispecific technology to four Novartis selected target pair antibodies and delivery of four bispecific product candidates and, · delivery of a non-exclusive license to its Fc technologies: Cytotoxic, Xtend and Immune Inhibitor. The Company determined that the $150 million upfront payment represents the total initial consideration and was allocated to each of the deliverables using the relative selling price method. The Company determined that each of the development and regulatory milestones is substantive. Although sales milestones are not considered substantive, they are still recognized upon achievement of a milestone. After identifying each of the deliverables included in the arrangement, the Company determined the relative selling price using its best estimate of selling price for each of the deliverables. The total allocable consideration of $150 million was allocated to the deliverables based on the relative selling price method as follows: * $27.1 million to certain rights to the XmAb14045 Program, * $31.4 million to certain rights to the XmAb13676 Program, * $20.05 million to each of the four Global Discovery Programs, and, * $11.3 million to the Fc licenses The Company recognized as license revenue the amount of the total allocable consideration allocated to the rights to the XmAb13676 and XmAb14045 Programs upon delivery of the exclusive license to Novartis both of which were transferred as of the effective date of the Novartis Agreement. At the time that each Global Discovery Program is accepted by Novartis, the Company will recognize collaboration revenue of $20.05 million for each program. Since Novartis has substitution rights for up to four target pair antibodies, revenue recognition may be delayed until the earlier that Novartis has an open IND for a delivered bispecific Discovery Program or the right to substitute the target pair lapses. No bispecific antibodies for Global Discovery Programs have been delivered as of June 30, 2017. The Company will recognize as licensing revenue the amount of the total consideration allocated to the Fc license over the five-year research term beginning from the effective date of the Novartis Agreement. During the three and six months ended June 30, 2017, we recognized $0.6 million and $1.1 million respectively. As of June 30, 2017, there is $89.2 million in deferred revenue related to the arrangement. Amgen, Inc. In September 2015, the Company entered into a research and license agreement (the Amgen Agreement) with Amgen, Inc. (Amgen) to develop and commercialize bispecific antibody product candidates using the Company’s proprietary XmAb® bispecific Fc technology. Under the Amgen Agreement, the Company granted an exclusive license to Amgen to develop and commercialize bispecific drug candidates from the Company’s preclinical program that bind the CD38 antigen and the cytotoxic T-cell binding domain CD3, (the CD38 Program). The Company will also apply its bispecific technology to five previously identified Amgen provided targets (each a Discovery Program). The Company received a $45.0 million upfront payment from Amgen and is eligible to receive up to $1.7 billion in future development, regulatory and sales milestones in total for all six programs and is eligible to receive royalties on any global net sales of products. In the fourth quarter ended December 31, 2015, the Company transferred the research material and data related to its CD38 Program to Amgen. Amgen will assume full responsibility for the further development and commercialization of product candidates under the CD38 Program. Assuming successful development and commercialization of a product, the Company could receive up to $355 million in milestones payments which include $55 million in development milestones, $70 million in regulatory milestones and, $230 million in sales milestones. If commercialized, the Company is eligible to receive from high single-digit up to low double-digit royalties on global net sales of approved products under the CD38 Program. Pursuant to the Amgen Agreement, for each of the five Discovery Programs the Company will apply its bispecific technology to antibody molecules provided by Amgen that bind Discovery Program Targets and return the bispecific product candidates to Amgen for further testing, development and commercialization. Subject to approval by Xencor, Amgen has the right to substitute up to three of the previously identified targets during the research term provided that Amgen has not initiated non-human primate studies with the Xencor provided bispecific candidate. The initial research term is three years from the date of the Amgen Agreement but Amgen, at its option, may request an extension of one year if Xencor has not completed delivery of all five Discovery Program bispecific candidates to Amgen. Amgen will assume full responsibility for development and commercialization of product candidates under each of the Discovery Programs. Assuming successful development and commercialization of each Discovery Program compound, the Company could receive up to $260.5 million in milestones for each compound which include $35.5 million in development milestones, $55.0 million in regulatory milestones and $170.0 million in sales milestones. If commercialized, the Company is eligible to receive mid to high single-digit royalties on global net sales of approved products. The Company evaluated the Amgen Agreement and determined that it is a revenue arrangement with multiple deliverables or performance obligations. The Company’s substantive performance obligations under the Amgen Agreement include delivery of research material and data related to its CD38 Program and application of its bispecific technology to five Amgen provided targets and delivery of the five bispecific product candidates. The Company evaluated the Amgen Agreement and determined that the CD38 Program and each of the five Discovery Programs represent separate units of accounting. The $45 million upfront payment represents the total initial consideration and was allocated to each of the deliverables using the relative selling price method. After identifying each of the deliverables included in the arrangement, the Company determined its best estimate of selling price for each of the deliverables. The total allocable consideration of $45 million was allocated to the deliverables based on the relative selling price method as follows: · $13.75 million to the CD38 Program and, · $6.25 million to each of the five Discovery Programs The Company recognized as collaboration revenue the amount of consideration allocated to the CD38 Programs upon delivery of the CD38 research material and data to Amgen in the fourth quarter of 2015. During 2016, the Company recognized as collaboration revenue the amount of consideration for delivery of three Discovery Programs; the Company delivered bispecific antibody candidates for five Discovery Programs and Amgen elected to substitute one of the originally identified antibody candidates. There were no additional Discovery Programs delivered in the three and six months ended June 30, 2017 there were no additional substitutions of originally identified candidate by Amgen during the three and six months ended June 30, 2017. During the three and six months ended June 30, 2017 we did not recognize any revenues. During the three and six months ended June 30,2016, we recognized $6.2 million and $12.5 million in revenue under this arrangement, respectively. As of June 30, 2017, there is $12.5 million in deferred revenue related to the arrangement. MorphoSys Ag In June 2010, we entered into a Collaboration and License Agreement with MorpohSys AG (MorphoSys), which we subsequently amended in March 2012. The agreement provided us an upfront payment of $13.0 million in exchange for an exclusive worldwide license to our patents and know‑how to research, develop and commercialize our XmAb5574 product candidate (subsequently renamed MOR208) with the right to sublicense under certain conditions. Under the agreement, we agreed to collaborate with MorphoSys to develop and commercialize XmAb5574/MOR208. We determined that the arrangement was one with multiple deliverables and we identified the multiple elements in the agreement as the license of XmAb5574/MOR208 and the research and development services provided by us for the initial Phase 1 clinical trial. If certain developmental, regulatory and sales milestones are achieved, we are eligible to receive future milestone payments and royalties. We determined that the future milestone payments were substantive and contingent and we did not allocate any of the upfront consideration to these milestones. We completed all our responsibility with respect to the collaboration services under the arrangement in 2012 and MorphoSys is responsible for all further development of XmAb5574/MOR208. In June 2017, MorphoSys initiated a Phase III clinical trial under the arrangement and we received a milestone payment of $12.5 million. We have recognized the payment as revenue in the period that the milestone event occurred. During the three and six months ended June 30, 2017 we recognized $12.5 million under this arrangement. As of June 30, 2017, there is no deferred revenue related to this agreement. Merck Sharp & Dohme Corporation In July 2013, we entered into a License Agreement with Merck Sharp & Dohme Corp (Merck). Under the terms of the agreement, we provided Merck with a non-exclusive commercial license to certain patent rights to our Fc domains to apply to one of their compounds. The agreement provided for an upfront payment of $1.0 million and annual maintenance fees totaling $0.5 million. We are also eligible to receive future milestones and royalties as Merck advances the compound into clinical development. We determined that the deliverables under this agreement were the non-exclusive commercial license and the options. The options are considered substantive and contingent and no amount of the upfront payment was allocated to these options. We also determined that the future milestones and related payments were substantive and contingent and did not allocate any of the upfront payment to the milestones. During each of the three and six months ended June 30, 2017 and 2016 we recognized $25,000 and $50,000 of revenue respectively. As of June 30, 2017, there is $100,000 of deferred revenue related to this arrangement. Alexion Pharmaceuticals, Inc. In January 2013, we entered into an option and license agreement with Alexion Pharmaceuticals, Inc. (Alexion). Under the terms of the agreement, we granted to Alexion an exclusive research license, with limited sublicensing rights, to make and use our Xtend technology to evaluate and advance compounds against six different target programs during a five-year research term under the agreement, up to completion of the first multi-dose human clinical trial for each target compound. Alexion may extend the research term for an additional three years upon written notice to us and payment of an extension fee of $2.0 million. Alexion is responsible for conducting all research and development activities under the agreement at its own expense. Under the agreement, we received an upfront payment of $3.0 million. Alexion is also required to pay an annual maintenance fee of $0.5 million during the research term of the agreement and $1.0 million during any extension of the research term. We determined that $2.5 million of the upfront fee was allocated to the license and is being recognized into income over the initial research term of five years. In the third quarter of 2014, Alexion achieved a clinical development milestone with an undisclosed molecule to be used against an undisclosed target. In the fourth quarter of 2015, Alexion exercised its option to take an exclusive commercial license and achieved a further clinical development milestone. In December 2016, Alexion achieved a Phase 3 clinical development milestone for an undisclosed target for which we received a $5 million milestone payment. During each of the three and six months ended June 30, 2017 and 2016 we recognized $250,000 and $500,000 in revenues, respectively. As of June 30, 2017, we have deferred revenue related to this arrangement of $0.6 million. Novo Nordisk A/S In December 2014, we entered into a collaboration and license agreement with Novo Nordisk A/S (Novo). Under the terms of the agreement we granted Novo a research license to use certain Xencor technologies including our bispecific, Fcy-IIb, Xtend and other technologies during a two-year research term. In connection with the agreement we received a $2.5 million upfront payment and funding for research support during the research term. We recognized the $2.5 million upfront payment as income over the two-year research term. The research funding was being recognized into income over the period that the services were being provided. We determined that future milestone payments were substantive and contingent and we did not allocate any of the upfront consideration to these milestones. During the three and six months ended June 30, 2017 no revenue was recognized. During the three and six months ended June 30, 2016, we recognized $0.7 million and $1.4 million of revenue, respectively. As of June 30, 2017, we have no deferred revenue related to this arrangement. CSL Limited In February 2009, we entered into a Research License and Commercialization Agreement with CSL Limited (CSL). Under the agreement, we provided CSL with a research license to our Fc Cytotoxic technology and options to non-exclusive commercial licenses. CSL elected to exercise one commercial license for a compound, CSL362. In 2013 CSL sublicensed CSL362 (now called talacotuzumab) to Janssen Biotech Inc. (Janssen Biotech). In March 2017, CSL, through its sub-licensee, Janssen Biotech, initiated a Phase 3 clinical trial for CSL362. As a result of the Phase 3 clinical trial initiation, we received a milestone payment of $3.5 million. During the three and six months ended June 30, 2017 we recognized zero and $3.5 million of revenue respectively. We did not recognize any revenues in each of the three and six months ended June 30, 2016. As of June 30, 2017, we have no deferred revenue related to this arrangement.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2017
Income Taxes
Income Taxes	9. Income taxes The provision for income taxes for the three- and six-month periods ended June 30, 2017 and 2016 represents the interim period tax allocation of the federal and state alternative minimum tax based on the Company’s projected year-end effective income tax rates which cannot be offset by the Company’s net operating loss carryforwards, The Company has deferred tax assets consisting primarily of net operating loss and tax credit carryforwards that have been fully offset by a valuation allowance.

Summary of Significant Accoun16

Summary of Significant Accounting Policies (Polices)	6 Months Ended
	Jun. 30, 2017
Summary of Significant Accounting Policies
Basis of Presentation	Basis of Presentation The accompanying unaudited interim financial statements for Xencor, Inc. (the Company) have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information. The financial statements include all adjustments (consisting only of normal recurring adjustments) that the management of the Company believes are necessary for a fair presentation of the periods presented. The preparation of interim financial statements requires the use of management’s estimates and assumptions that affect reported amounts of assets and liabilities at the date of the interim financial statements and the reported revenues and expenditures during the reported periods. These interim financial results are not necessarily indicative of the results expected for the full fiscal year or for any subsequent interim period. The accompanying unaudited interim financial statements and related notes should be read in conjunction with the audited financial statements and notes thereto included in the Company’s 2016 Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC) on March 1, 2017.
Marketable Securities	Marketable Securities The Company has an investment policy that includes guidelines on acceptable investment securities, minimum credit quality, maturity parameters and concentration and diversification. The Company invests its excess cash primarily in marketable securities issued by investment grade institutions. The Company considers its marketable securities to be available-for-sale. These assets are carried at fair value and the unrealized gains and losses are included in accumulated other comprehensive income (loss). Accrued interest on marketable securities is included in marketable securities. If a decline in the value of a marketable security in the Company’s investment portfolio is deemed to be other-than-temporary, the Company writes down the security to its current fair value and recognizes a loss as a charge against income. The Company reviews its portfolio of marketable securities, using both quantitative and qualitative factors, to determine if declines in fair value below cost are other-than-temporary.
Recent Accounting Pronouncements	Recent Accounting Pronouncements Pronouncements Adopted in 2017 In March 2016, the FASB issued ASU No. 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. In addition, the standard allows an entity-wide accounting policy election to either estimate the number of awards that are expected to vest, as currently required, or account for forfeitures of awards in the period that they occur. We adopted the new standard on January 1, 2017 and established an accounting policy election to account for forfeitures when they occur. We applied the modified retrospective approach which resulted in a cumulative-effect adjustment of a decrease of $0.4 million to retained earnings and additional paid-in capital. The adoption will result in periodic adjustments in the recognition of stock compensation expense associated with forfeitures in the period in which they occur. The remaining aspects of adopting ASU 2016-09 did not have a material impact on our financial statement position or results from operations. Pronouncements Not Yet Effective In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers , as a new Topic, Accounting Standards Codification Topic 606 (ASU 2014-09). The new revenue recognition standard provides a five-step analysis of transactions to determine when and how revenue is recognized. The core principle is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customer Topic 606, Principal versus Agent Considerations , which clarifies the implementation guidance on principal versus agent considerations. In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers Topic 606, Identifying Performance Obligations and Licensing , which clarifies certain aspects of identifying performance obligations and licensing implementation guidance. In May 2016, the FASB issued ASU 2016-12, Revenue from Contracts with Customers Topic 606, Narrow-Scope Improvements and Practical Expedients , related to disclosures of remaining performance obligations, as well as other amendments to guidance on collectability, non-cash consideration and the presentation of sales and other similar taxes collected from customers. In December 2016, the FASB issued ASU No. 2016-20, T echnical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers , which amends certain narrow aspects of the guidance issued in ASU 2014-09 including guidance related to the disclosure of remaining performance obligations and prior-period performance obligations, as well as other amendments to the guidance on loan guarantee fees, contract costs, refund liabilities, advertising costs and the clarification of certain examples. These ASUs are effective for public entities for interim and annual reporting periods beginning after December 15, 2017, including interim periods within that year, which for us is the period beginning January 1, 2018. The Company has reviewed the new standard and its current and prior revenue arrangements and determined that there are several provisions in the new standard that will affect its revenue recognition related to such arrangements. Many of the Company’s collaboration arrangements include licensing or intellectual property for rights to certain of its technologies or drug candidates. Additionally, many of these arrangements include upfront payments and potential future payments from partners for future development, regulatory and sales milestones and royalties on sales of approved products. The new standard makes changes to both revenue recognition for licensing of intellectual property and potential milestone revenue for future payments. We believe that these provisions will have the following impact on contract revenues from our collaboration and license agreements: 1) changes in the model for licensing of intellectual property that are functional and distinct performance obligations that may result in a timing difference of revenue recognition. While revenue from these contracts was recognized over the contract term under the revenue recognition guidance in place at the contract’s inception, revenue recognition under the new guidance may be recognized at a point in time. This could change the period of time that we have recognized revenue related to the licensing of our intellectual property. 2) milestone payments that are directly linked to events under the Company’s control will result in variable consideration when determining the contract price under the new guidance and may be recognized earlier when it is probable that the milestone will be achieved without a significant future reversal of cumulative revenue expected. Under current accounting guidance the Company has applied the milestone method of accounting for recognizing such revenue or contingent payments. The new standard may change the period in which such revenue from these arrangements is recognized. The Company is still in the process of completing its review and has not concluded on the impact on the revenue recognized in periods prior to the required adoption date, January 1, 2018. The Company expects to adopt the full retrospective method of implementation which will require the Company to restate its revenue and earnings for the 2016 and 2017 periods. Management will adopt the new standard effective January 1, 2018 and will continue to monitor additional changes, clarifications or interpretations being undertaken by the FASB which may impact management’s implementation approach. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which amends the guidance on reporting credit losses for assets held at amortized cost basis and available for sale debt securities. Credit losses relating to available-for-sale debt securities will be recorded through an allowance for credit losses rather than as a direct write-down to the security. Credit losses on available-for-sale securities will be required when the amortized cost is below the fair market value. The amendment is effective for fiscal years beginning after December 15, 2019 including interim periods within those fiscal years. We will apply the standard’s provision as a cumulative effect adjustment to retained earnings as of the beginning of the first effective reporting period. We do not expect the adoption to have a material impact on our results of operations or financial position. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, which addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. The standard clarifies when cash receipts and cash payments have aspects of more than one class of cash flows and cannot be separated, classification will depend on the predominant source or use. The amendment is effective for fiscal years beginning after December 15, 2017 with early adoption permitted. We continue to review the requirements of this standard and any potential impact it may have on our cash flow statement. In March 2017, the FASB issued ASU No. 2017-08, Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities, which amends the guidance on the amortization period of premiums on certain purchased callable debt securities by shortening the amortization period of premiums to the earliest call date. The amendment affects all entities that hold investments in callable debt securities that have an amortized cost basis in excess of the amount that is repayable by the issuer at the earliest call date. The amendment is effective for fiscal years beginning after December 31, 2018 with early adoption permitted. The Company will review the requirements of the standard but does not anticipate it will have a significant impact on our financial statements. In May 2017, the FASB issued ASU No. 2017-09, Compensation – Stock Compensation (Topic 718): Scope of Modification Accounting . The standard applies when a company changes the terms of a stock compensation award previously granted to an employee where modification accounting applies. According to the standard, modification accounting is not required if (1) the fair value of the modified award (or the award’s calculated value or intrinsic value as appropriate) is the same as the value immediately prior to its modification, (2) the vesting conditions of the modified award are the same as the vesting conditions of the award immediately prior to its modification; and (3) the award’s classification as an equity or liability is the same after the modification as it was immediately prior to its modification. The new standard is effective for annual periods beginning after December 15, 2017 including interim periods within those years. The Company will review the requirements of the standard but does not anticipate it will have a significant impact on our financial statements. There have been no other material changes to the significant accounting policies previously disclosed in the Company’s 2016 Annual Report on Form 10-K.

Fair Value of Financial Instr17

Fair Value of Financial Instruments (Tables)	6 Months Ended
	Jun. 30, 2017
Fair Value of Financial Instruments
Schedule of assets recorded at fair value	The assets recorded at fair value are classified within the hierarchy as follows for the periods reported (in thousands): June 30, 2017 December 31, 2016 Total Total Fair Value Level 1 Level 2 Fair Value Level 1 Level 2 Money Market Funds $ 10,063 $ 10,063 $ — $ 12,137 $ 12,137 $ — Corporate Securities 154,098 — 154,098 181,483 — 181,483 Government Securities 213,413 — 213,413 207,465 — 207,465 $ 377,574 $ 10,063 $ 367,511 $ 401,085 $ 12,137 $ 388,948

Net Income (Loss) Per Share (Ta

Net Income (Loss) Per Share (Tables)	6 Months Ended
	Jun. 30, 2017
Net Income (Loss) Per Share
Schedule of basic and diluted net income (loss) per common share	Basic and diluted net income (loss) per common share is computed as follows (in thousands except share and per share data): Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 (in thousands, except share and per share data) Numerator: Net income (loss) attributable to common stockholders $ (6,885) $ 47,165 $ (21,519) $ 40,767 Denominator: Weighted-average common shares outstanding, basic 46,767,759 40,800,586 46,683,744 40,703,688 Dilutive effect of stock options — 937,874 — 997,574 Weighted average common shares outstanding, diluted 46,767,759 41,738,460 46,683,744 41,701,262 Net income (loss) per share, basic $ (0.15) $ 1.16 $ (0.46) $ 1.00 Net income (loss) per share, diluted $ (0.15) $ 1.13 $ (0.46) $ 0.98

Marketable Securities (Tables)

Marketable Securities (Tables)	6 Months Ended
	Jun. 30, 2017
Marketable Securities
Schedule of marketable securities	Gross Gross Amortized Unrealized Unrealized June 30, 2017 Cost Gains Losses Fair Value (in thousands) Money Market Funds $ 10,063 $ — $ — $ 10,063 Corporate Securities 154,634 2 (538) 154,098 Government Securities 214,108 7 (702) 213,413 $ 378,805 $ 9 $ (1,240) $ 377,574 Reported as Cash and cash equivalents $ 10,063 Marketable securities 367,511 Total investments $ 377,574 Gross Gross Amortized Unrealized Unrealized December 31, 2016 Cost Gains Losses Fair Value (in thousands) Money Market Funds $ 12,137 $ — $ — $ 12,137 Corporate Securities 182,394 6 (917) 181,483 Government Securities 207,986 44 (565) 207,465 $ 402,517 $ 50 $ (1,482) $ 401,085 Reported as Cash and cash equivalents $ 12,137 Marketable securities 388,948 Total investments $ 401,085
Schedule of maturities of marketable securities	Amortized Estimated June 30, 2017 Cost Fair Value (in thousands) Mature in one year or less $ 177,542 $ 177,269 Mature after one year 191,200 190,242 $ 368,742 $ 367,511 Amortized Estimated December 31, 2016 Cost Fair Value (in thousands) Mature in one year or less $ 115,748 $ 115,608 Mature after one year 274,632 273,340 $ 390,380 $ 388,948
Schedule of unrealized losses on available-for-sale investments	The unrealized losses on available-for-sale investments and their related fair values as of June 30, 2017 and December 31, 2016 are as follows: Less than 12 months 12 months or greater June 30, 2017 Fair value Unrealized losses Fair value Unrealized losses (in thousands) Corporate Securities $ 92,398 $ (155) $ 53,027 $ (382) Government Securities 75,803 (120) 122,269 (582) $ 168,201 $ (275) $ 175,296 $ (964) Less than 12 months 12 months or greater December 31, 2016 Fair value Unrealized losses Fair value Unrealized losses (in thousands) Corporate Securities $ 82,215 $ (133) $ 88,990 $ (784) Government Securities 17,573 (16) 149,694 (549) $ 99,787 $ (149) $ 238,684 $ (1,333)

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 2017
Stock-Based Compensation
Schedule of total employee, director and non-employee stock-based compensation expense recognized	Total employee, director and non-employee stock-based compensation expense recognized for the three and six months ended June 30, 2017 are as follows (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 General and administrative $ 1,416 $ 874 $ 2,884 $ 1,826 Research and development 2,032 1,159 3,723 2,167 $ 3,448 $ 2,033 $ 6,607 $ 3,993
Summary of stock option activity	Weighted Weighted Average Average Number of Exercise Remaining Aggregate Shares subject Price Contractual Intrinsic to outstanding (Per Term Value options Share) (in years) (in thousands) Balances at December 31, 2016 4,045,801 $ 11.95 7.82 Options granted 1,356,100 $ 22.65 Options forfeited (76,606) $ 15.60 Options exercised (252,278) $ 6.66 Balance at June 30, 2017 5,073,017 $ 15.02 7.92 $ 33,950 Exercisable 2,206,587 $ 10.22 6.60 $ 24,051
Schedule of weighted average assumptions used for estimation of fair value of stock options	Options Options Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Expected term (years) 6.1 5.9 6.1 6.1 Expected volatility 88.9 % 76.1 % 89.2 % 75.8 % Risk-free interest rate 1.91 % 1.36 % 2.04 % 1.53 % Expected dividend yield — % — % — % — %
Schedule of weighted average assumptions used for estimation of fair value of ESPP	ESPP ESPP Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Expected term (years) 0.5 - 2.0 0.5 - 2.0 0.5 - 2.0 0.5 - 2.0 Expected volatility 67.8 - 79.8 % 67.8 - 79.6 % 67.8 - 79.8 % 67.8 - 79.6 % Risk-free interest rate .47% - 1.09 % .47% - .93 % .47% - 1.09 % .47% - .93 % Expected dividend yield — % — % — % — %

Commitments and Contingencies (

Commitments and Contingencies (Tables)	6 Months Ended
	Jun. 30, 2017
Commitments and Contingencies
Schedule of future minimum payments for non-cancellable operating leases	All leases are accounted for as non-cancellable operating leases and future minimum payments are as follows (in thousands): Years ending December 31, For the remainder of the fiscal year $ 634 2018 2,546 2019 2,726 2020 2,388 2021 1,980 Thereafter 1,406

Summary of Significant Accoun22

Summary of Significant Accounting Policies (Details) - Accounting Standard Update 2016 09 $ in Thousands	Dec. 31, 2016USD ($)
Additional Paid-in Capital
Adoption of ASU 2016-09 (see Note 1)	$ 401
Accumulated Deficit
Adoption of ASU 2016-09 (see Note 1)	$ (401)

Fair Value of Financial Instr23

Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016	Jun. 30, 2016	Dec. 31, 2015
Fair Value of Financial Instruments
Money Market Funds	$ 11,220	$ 14,528	$ 7,877	$ 12,590
Total Fair Value	377,574	401,085
Money Market Funds
Fair Value of Financial Instruments
Money Market Funds	10,063	12,137
Corporate Securities
Fair Value of Financial Instruments
Securities	154,098	181,483
Government Securities
Fair Value of Financial Instruments
Securities	213,413	207,465
Level 1
Fair Value of Financial Instruments
Total Fair Value	10,063	12,137
Level 1 | Money Market Funds
Fair Value of Financial Instruments
Money Market Funds	10,063	12,137
Level 2
Fair Value of Financial Instruments
Total Fair Value	367,511	388,948
Level 2 | Corporate Securities
Fair Value of Financial Instruments
Securities	154,098	181,483
Level 2 | Government Securities
Fair Value of Financial Instruments
Securities	$ 213,413	$ 207,465

Net Income (Loss) Per Share (De

Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Numerator:
Net loss attributable to common stockholders	$ (6,885)	$ 47,165	$ (21,519)	$ 40,767
Denominator:
Weighted average common shares outstanding, basic	46,767,759	40,800,586	46,683,744	40,703,688
Dilutive effect of stock options		937,874		997,574
Weighted average common shares outstanding, diluted	46,767,759	41,738,460	46,683,744	41,701,262
Net income (loss) per common share, basic (in dollars per share)	$ (0.15)	$ 1.16	$ (0.46)	$ 1
Net income (loss) per common share, diluted (in dollars per share)	$ (0.15)	$ 1.13	$ (0.46)	$ 0.98

Marketable Securities (Details)

Marketable Securities (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Schedule of Available-for-sale Securities
Amortized cost	$ 378,805	$ 402,517
Gross unrealized gains	9	50
Gross unrealized losses	(1,240)	(1,482)
Fair value	377,574	401,085
Marketable securities
Schedule of Available-for-sale Securities
Fair value	367,511	388,948
Money Market Funds
Schedule of Available-for-sale Securities
Amortized cost	10,063	12,137
Fair value	10,063	12,137
Corporate Securities
Schedule of Available-for-sale Securities
Amortized cost	154,634	182,394
Gross unrealized gains	2	6
Gross unrealized losses	(538)	(917)
Fair value	154,098	181,483
Government Securities
Schedule of Available-for-sale Securities
Amortized cost	214,108	207,986
Gross unrealized gains	7	44
Gross unrealized losses	(702)	(565)
Fair value	213,413	207,465
Cash and Cash Equivalents
Schedule of Available-for-sale Securities
Fair value	$ 10,063	$ 12,137

Marketable Securities - Maturit

Marketable Securities - Maturities (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Amortized Cost
Maturing in one year or less	$ 177,542	$ 115,748
Maturing after one year through five years	191,200	274,632
Total amortized cost	368,742	390,380
Estimate Fair Value
Maturing in one year or less	177,269	115,608
Maturing after one year through five years	190,242	273,340
Total estimated fair value	$ 367,511	$ 388,948

Marketable Securities - Unreali

Marketable Securities - Unrealized losses (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Fair value
Fair value, less than 12 months	$ 168,201	$ 99,787
Fair value, 12 months or greater	175,296	238,684
Unrealized losses
Unrealized losses, Less than 12 months	(275)	(149)
Unrealized losses, 12 months or greater	(964)	(1,333)
Corporate Securities
Fair value
Fair value, less than 12 months	92,398	82,215
Fair value, 12 months or greater	53,027	88,990
Unrealized losses
Unrealized losses, Less than 12 months	(155)	(133)
Unrealized losses, 12 months or greater	(382)	(784)
Government Securities
Fair value
Fair value, less than 12 months	75,803	17,573
Fair value, 12 months or greater	122,269	149,694
Unrealized losses
Unrealized losses, Less than 12 months	(120)	(16)
Unrealized losses, 12 months or greater	$ (582)	$ (549)

Stock Based Compensation (Detai

Stock Based Compensation (Details) - shares	Dec. 02, 2013	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Stock-based compensation
Common stock, shares issued		46,854,762		46,567,978
Employee stock options
Stock-based compensation
Options granted (in shares)		1,356,100	1,138,000
Employee Stock Purchase Plan
Stock-based compensation
Total number of shares of common stock available for issuance		581,286
Awards issued under the plan (in shares)		255,992
Annual increase in shares of common stock available for issuance (in shares)		0
Employee Stock Purchase Plan | Maximum
Stock-based compensation
Annual percentage increase in shares of common stock available for issuance		1.00%
Annual increase in shares of common stock available for issuance (in shares)		621,814
The 2013 Plan
Stock-based compensation
Total number of shares of common stock available for issuance		8,637,790
Annual percentage increase in shares of common stock available for issuance		4.00%
Awards issued under the plan (in shares)		4,790,350
Annual increase in shares of common stock available for issuance (in shares)		1,862,719
The 2010 Plan
Stock-based compensation
Total number of shares of common stock available for issuance		2,684,456
Options granted (in shares)	0

Stock-Based Compensation - Empl

Stock-Based Compensation - Employee expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Stock-based compensation
Total employee, director and non-employee stock-based compensation expense	$ 3,448	$ 2,033	$ 6,607	$ 3,993
General and administrative
Stock-based compensation
Total employee, director and non-employee stock-based compensation expense	1,416	874	2,884	1,826
Research and development
Stock-based compensation
Total employee, director and non-employee stock-based compensation expense	$ 2,032	$ 1,159	$ 3,723	$ 2,167

Stock-Based Compensation - Opti

Stock-Based Compensation - Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	Dec. 02, 2013	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Employee stock options
Number of Shares subject to outstanding options
Balance at the beginning of the period (in shares)				4,045,801
Options granted (in shares)				1,356,100	1,138,000
Options forfeited (in shares)				(76,606)
Options exercised (in shares)				(252,278)
Balance at the end of the period (in shares)		5,073,017		5,073,017		4,045,801
Exercisable options (in shares)		2,206,587		2,206,587
Weighted Average Exercise Price (Per Share)
Balance at the beginning of the period (in dollars per share)				$ 11.95
Options granted (in dollars per share)				22.65
Options forfeited (in dollars per share)				15.60
Options exercised (in dollars per share)				6.66
Balance at the end of the period (in dollars per share)		$ 15.02		15.02		$ 11.95
Exercisable (in dollars per share)		$ 10.22		$ 10.22
Weighted-average remaining contractual life				7 years 11 months 1 day		7 years 9 months 26 days
Weighted-average remaining contractual life of awards exercisable				6 years 7 months 6 days
Aggregate intrinsic value of options outstanding		$ 33,950		$ 33,950
Aggregate intrinsic value of options exercisable		$ 24,051		$ 24,051
Closing price of common stock (in dollars per share)		$ 21.11		$ 21.11
Weighted average fair value of options granted (in dollars per share)		$ 16.95	$ 8.45
The 2010 Plan
Number of Shares subject to outstanding options
Options granted (in shares)	0

Stock-Based Compensation - FV o

Stock-Based Compensation - FV of employee stock options (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Employee stock options
Weighted average assumptions for estimated fair value of employee stock options
Expected volatility (as a percent)	88.90%	76.10%	89.20%	75.80%
Risk-free interest rate (as a percent)	1.91%	1.36%	2.04%	1.53%
Expected term (years)	6 years 1 month 6 days	5 years 10 months 24 days	6 years 1 month 6 days	6 years 1 month 6 days
Unamortized compensation expense related to unvested options	$ 35,400,000	$ 16,300,000	$ 35,400,000	$ 16,300,000
Period to recognize unamortized compensation expense			3 years
Employee Stock Purchase Plan
Weighted average assumptions for estimated fair value of employee stock options
Expected volatility, low end of range (as a percent)	67.80%	67.80%	67.80%	67.80%
Expected volatility, high end of range (as a percent)	79.80%	79.60%	79.80%	79.60%
Risk-free interest rate, low end of range (as a percent)	0.47%	0.47%	0.47%	0.47%
Risk-free interest rate, high end of range (as a percent)	1.09%	0.93%	1.09%	0.93%
Unamortized compensation expense related to unvested options	$ 242,305	$ 491,000	$ 242,305	$ 491,000
Period to recognize unamortized compensation expense			5 months 15 days
Employee Stock Purchase Plan | Minimum
Weighted average assumptions for estimated fair value of employee stock options
Expected term (years)	6 months	6 months	6 months	6 months
Employee Stock Purchase Plan | Maximum
Weighted average assumptions for estimated fair value of employee stock options
Expected term (years)	2 years	2 years	2 years	2 years

Commitments and Contingencies32

Commitments and Contingencies (Details) - USD ($)	1 Months Ended		6 Months Ended
	Jul. 31, 2017	Jun. 30, 2017	Jun. 30, 2017	Jun. 30, 2016
Operating Leases
For the remainder of the fiscal year		$ 634,000	$ 634,000
2,018		2,546,000	2,546,000
2,019		2,726,000	2,726,000
2,020		2,388,000	2,388,000
2,021		1,980,000	1,980,000
Thereafter		$ 1,406,000	1,406,000
Net rent expense			$ 453,000	$ 298,000
San Diego
Lease term		61 months
Renewal term		5 years
Forecast | Monrovia
Lease term	64 months
Renewal term	5 years

Commitments and Contingencies -

Commitments and Contingencies - Litigation (Details)	Sep. 27, 2016USD ($)	Jun. 30, 2017USD ($)item	Dec. 31, 2015USD ($)	Dec. 31, 2016USD ($)
Commitments and Contingencies
Number of claims | item		2
Insurance proceeds			$ 187,500
Paid legal award	$ (2,375,000)		$ (950,000)
Outstanding settlement amount		$ 2,355,000		$ 2,355,000

Collaboration and Licensing A34

Collaboration and Licensing Agreements (Details)	1 Months Ended											3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2017USD ($)	Mar. 31, 2017USD ($)	Dec. 31, 2016USD ($)	Jul. 31, 2016USD ($)	Jun. 30, 2016USD ($)productitem	Sep. 30, 2015USD ($)item	Dec. 31, 2014USD ($)	Jul. 31, 2013USD ($)item	Jan. 31, 2013USD ($)item	Jun. 30, 2010USD ($)	Feb. 28, 2009item	Jun. 30, 2017USD ($)item	Jun. 30, 2016USD ($)	Jun. 30, 2017USD ($)item	Jun. 30, 2016USD ($)	Dec. 31, 2016USD ($)item
Collaboration research and licensing agreements
Revenue recognized												$ 13,340,000	$ 66,007,000	$ 17,681,000	$ 73,259,000
Current portion of deferred revenue	$ 95,613,000		$ 95,521,000									95,613,000		95,613,000		$ 95,521,000
License Agreement | Merck Sharp & Dohme Corp.
Collaboration research and licensing agreements
Nonrefundable upfront payment								$ 1,000,000
Annual maintenance fees								$ 500,000
Revenue recognized												25,000	25,000	50,000	50,000
Deferred revenue	100,000											100,000		100,000
Number of compounds | item								1
Portion of nonrefundable upfront payment allocated to option								$ 0
License Agreement | Alexion Pharmaceuticals, Inc.
Collaboration research and licensing agreements
Nonrefundable upfront payment														2,500,000
Research term of revenue recognized									5 years
Option and license agreement | Alexion Pharmaceuticals, Inc.
Collaboration research and licensing agreements
Nonrefundable upfront payment									$ 3,000,000
Milestone payment			$ 5,000,000
Number of different target programs | item									6
Research license term									5 years
Annual maintenance fees									$ 500,000
Revenue recognized												250,000	250,000	500,000	500,000
Deferred revenue	600,000											600,000		$ 600,000
Additional research term														3 years
Extension fee														$ 2,000,000
Annual maintenance fees payable during any extension of research term									$ 1,000,000
2009 Research License and Commercialization Agreement | CSL Limited
Collaboration research and licensing agreements
Milestone payment		$ 3,500,000
Revenue recognized												0	0	3,500,000	0
Deferred revenue	0											0		0
Number of commercial licenses | item											1
Collaboration And License Agreement | Novartis
Collaboration research and licensing agreements
Nonrefundable upfront payment				$ 150,000,000
Revenue recognized												600,000		1,100,000
Deferred revenue	89,200,000											89,200,000		89,200,000
Collaboration And License Agreement | Novartis | Maximum
Collaboration research and licensing agreements
Potential milestone payment														$ 2,400,000,000
Collaboration And License Agreement | Novartis | Bispecific FC Technologies
Collaboration research and licensing agreements
Number of development stage products | product					2
Collaboration And License Agreement | Novartis | Bispecific FC Technologies | XmAb14045
Collaboration research and licensing agreements
Allocation of consideration to deliverables					$ 27,100,000
Collaboration And License Agreement | Novartis | Bispecific FC Technologies | XmAb13676
Collaboration research and licensing agreements
Allocation of consideration to deliverables					31,400,000
Collaboration And License Agreement | Novartis | Global Discovery Program
Collaboration research and licensing agreements
Number of bispecific product candidates delivered | item														0
Allocation of consideration to deliverables					$ 20,050,000
Number of Global discovery programs | item					4
Collaboration And License Agreement | Novartis | Global Discovery Program | Maximum
Collaboration research and licensing agreements
Number of antibody targets for which bispecific technology applied | item					4
Collaboration And License Agreement | Novartis | FC Licenses
Collaboration research and licensing agreements
Research license term														5 years
Number of bispecific product candidates delivered | product					4
Allocation of consideration to deliverables					$ 11,300,000
Collaboration And License Agreement | Novartis | FC Licenses | Maximum
Collaboration research and licensing agreements
Number of targets against which non-exclusive license is provided | item					10
Collaboration And License Agreement | Novo Nordisk
Collaboration research and licensing agreements
Nonrefundable upfront payment							$ 2,500,000
Research license term							2 years
Revenue recognized												0	700,000	$ 0	1,400,000
Deferred revenue	0											0		0
Research term of revenue recognized							2 years
Collaboration And License Agreement | MorphoSys
Collaboration research and licensing agreements
Nonrefundable upfront payment										$ 13,000,000
Milestone payment	12,500,000
Revenue recognized												12,500,000		12,500,000
Deferred revenue	0											$ 0		$ 0
Research and License Agreement 2015 | Amgen, Inc.
Collaboration research and licensing agreements
Nonrefundable upfront payment						$ 45,000,000
Potential milestone payment						$ 1,700,000,000
Number of different target programs | item						6
Number of previously identified products | item														3
Number of bispecific product candidates delivered | item												0		0
Substituted candidates | item												0		0
Revenue recognized												$ 0	$ 6,200,000	$ 0	$ 12,500,000
Deferred revenue	$ 12,500,000											$ 12,500,000		12,500,000
Research and License Agreement 2015 | Amgen, Inc. | CD38 Program
Collaboration research and licensing agreements
Potential milestone payment														355,000,000
Allocation of consideration to deliverables														13,750,000
Research and License Agreement 2015 | Amgen, Inc. | Discovery Program
Collaboration research and licensing agreements
Potential milestone payment														$ 260,500,000
Research license term														3 years
Allocation of consideration to deliverables														$ 6,250,000
Additional research term														1 year
Previous targets which bispecific technology will be applied | item						5
Research and License Agreement 2015 | Amgen, Inc. | Global Discovery Program
Collaboration research and licensing agreements
Number of different target programs | item																3
Number of bispecific product candidates delivered | item																5
Substituted candidates | item																1
Development-based | Research and License Agreement 2015 | Amgen, Inc. | CD38 Program
Collaboration research and licensing agreements
Potential milestone payment														$ 55,000,000
Development-based | Research and License Agreement 2015 | Amgen, Inc. | Discovery Program
Collaboration research and licensing agreements
Potential milestone payment														35,500,000
Regulatory-based | Research and License Agreement 2015 | Amgen, Inc. | CD38 Program
Collaboration research and licensing agreements
Potential milestone payment														70,000,000
Regulatory-based | Research and License Agreement 2015 | Amgen, Inc. | Discovery Program
Collaboration research and licensing agreements
Potential milestone payment														55,000,000
Sales-based | Research and License Agreement 2015 | Amgen, Inc. | CD38 Program
Collaboration research and licensing agreements
Potential milestone payment														230,000,000
Sales-based | Research and License Agreement 2015 | Amgen, Inc. | Discovery Program
Collaboration research and licensing agreements
Potential milestone payment														$ 170,000,000