Adamas Pharmaceuticals (ADMS) 10-Q 7 May 20 2020 Q1 Quarterly report Financial data

Cover Page

Cover Page - shares	3 Months Ended
	Mar. 31, 2020	Apr. 30, 2020
Cover [Abstract]
Entity Registrant Name	Adamas Pharmaceuticals Inc
Entity Central Index Key	0001328143
Document Type	10-Q
Document Transition Report	false
Document Period End Date	Mar. 31, 2020
Document Quarterly Report	true
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	true
Entity Common Stock, Shares Outstanding (in shares)		28,158,205
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1
Entity Shell Company	false
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	42-1560076
Entity File Number	001-36399
Entity Interactive Data Current	Yes
Entity Address, Address Line One	1900 Powell Street
Entity Address, Address Line Two	Suite 1000
Entity Address, City or Town	Emeryville
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	94608
City Area Code	510
Local Phone Number	450-3500

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Current assets
Cash and cash equivalents	$ 45,541	$ 65,774
Available-for-sale securities	69,741	66,833
Accounts receivable, net	5,747	5,770
Inventory	5,381	5,267
Prepaid expenses and other current assets	6,974	6,676
Total current assets	133,384	150,320
Property and equipment, net	2,213	2,449
Operating lease right-of-use assets	7,704	8,048
Prepaid expenses and other non-current assets	1,010	1,341
Total assets	144,311	162,158
Current liabilities
Accounts payable	3,672	6,932
Accrued liabilities	15,044	16,117
Current portion of long-term debt	3,232	2,041
Other current liabilities	1,830	1,858
Total current liabilities	23,778	26,948
Long-term debt	126,065	125,674
Long-term portion of operating lease liabilities	7,823	8,272
Other non-current liabilities	2,498	2,157
Total liabilities	160,164	163,051
Commitments and Contingencies (Note 7)
Stockholders’ deficit
Preferred stock, $0.001 par value — 5,000,000 shares authorized, and zero shares issued and outstanding at March 31, 2020 and December 31, 2019	0	0
Common stock, $0.001 par value — 100,000,000 shares authorized, 28,158,205 and 27,964,778 shares issued and outstanding at March 31, 2020 and December 31, 2019, respectively	33	33
Additional paid-in capital	448,573	446,942
Accumulated other comprehensive gain	73	16
Accumulated deficit	(464,532)	(447,884)
Total stockholders’ deficit	(15,853)	(893)
Total liabilities and stockholders’ deficit	$ 144,311	$ 162,158

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2020	Dec. 31, 2019
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	5,000,000	5,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, authorized (in shares)	100,000,000	100,000,000
Common stock, issued (in shares)	28,158,205	27,964,778
Common stock, outstanding (in shares)	28,158,205	27,964,778

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Revenues:
Total revenues	$ 14,481	$ 11,665
Costs and operating expenses:
Cost of product sales	572	413
Research and development	2,465	10,214
Selling, general and administrative, net	24,552	27,688
Total costs and operating expenses	27,589	38,315
Loss from operations	(13,108)	(26,650)
Interest and other income, net	84	723
Interest expense	(3,624)	(3,731)
Net loss	$ (16,648)	$ (29,658)
Net loss per share, basic and diluted (in dollars per share)	$ (0.59)	$ (1.08)
Weighted average shares used in computing net loss per share, basic and diluted (in shares)	28,030	27,453

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Statement of Comprehensive Income [Abstract]
Net loss	$ (16,648)	$ (29,658)
Unrealized gain on available-for-sale securities	57	230
Comprehensive loss	$ (16,591)	$ (29,428)

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Stockholders Equity (Deficit) - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Gain	Accumulated Deficit
Beginning balance (in shares) at Dec. 31, 2018		27,434,358
Beginning balance at Dec. 31, 2018	$ 89,885	$ 32	$ 432,815	$ (264)	$ (342,698)
Increase (decrease) in shareholders' equity
Exercise of stock options (in shares)		18,230
Exercise of stock options	49		49
Restricted stock units vested (in shares)		67,391
Net unrealized (loss) gain on available-for-sale securities	230			230
Stock-based compensation	3,410		3,410
Net loss	(29,658)				(29,658)
Ending balance (in shares) at Mar. 31, 2019		27,519,979
Ending balance at Mar. 31, 2019	63,916	$ 32	436,274	(34)	(372,356)
Beginning balance (in shares) at Dec. 31, 2019		27,964,778
Beginning balance at Dec. 31, 2019	(893)	$ 33	446,942	16	(447,884)
Increase (decrease) in shareholders' equity
Exercise of stock options (in shares)		61,766
Exercise of stock options	42		42
Restricted stock units vested (in shares)		131,661
Net unrealized (loss) gain on available-for-sale securities	57			57
Stock-based compensation	1,589		1,589
Net loss	(16,648)				(16,648)
Ending balance (in shares) at Mar. 31, 2020		28,158,205
Ending balance at Mar. 31, 2020	$ (15,853)	$ 33	$ 448,573	$ 73	$ (464,532)

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Cash flows from operating activities
Net loss	$ (16,648)	$ (29,658)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation	236	368
Stock-based compensation	1,481	3,384
Accretion of interest expense	3,624	3,731
Change in fair value of embedded derivative liability	341	101
Net accretion of discounts and amortization of premiums of available-for-sale securities	(107)	(337)
Provision for write-down of inventory	289	0
Changes in assets and liabilities
Accrued interest of available-for-sale securities	218	(56)
Accounts receivable, net	23	(1,987)
Inventory	(234)	86
Prepaid expenses and other assets	33	347
Operating lease right-of-use assets	344	198
Accounts payable	(3,298)	3,319
Current portion of long-term debt	(2,042)	(1,664)
Long-term portion of operating lease liabilities	(401)	(234)
Accrued liabilities and other liabilities	(1,172)	1,485
Net cash used in operating activities	(17,313)	(20,917)
Cash flows from investing activities
Purchases of property and equipment	0	(7)
Purchases of available-for-sale securities	(33,962)	(20,811)
Maturities of available-for-sale securities	31,000	44,000
Net cash provided by (used in) investing activities	(2,962)	23,182
Cash flows from financing activities
Proceeds from issuance of common stock upon exercise of stock options	42	66
Net cash provided by financing activities	42	66
Net increase (decrease) in cash and cash equivalents	(20,233)	2,331
Cash and cash equivalents at beginning of period	65,774	56,605
Cash and cash equivalents at end of period	45,541	58,936
Supplemental disclosure of noncash activities
Right-of-use assets obtained in exchange for operating lease liabilities	0	7,566
Property and equipment in accounts payable and accrued expense	0	10
Stock-based compensation capitalized in inventory	$ 108	$ 26

Description of Business

Description of Business	3 Months Ended
	Mar. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of Business	DESCRIPTION OF BUSINESS Adamas Pharmaceuticals, Inc. (the “Company”) is a commercial-stage pharmaceutical company focused on delivering innovative medicines that reduce the burden of neurological diseases on patients, caregivers, and society. In August 2017, the U.S. Food and Drug Administration (FDA) approved GOCOVRI ® (amantadine) extended release capsules, the first and only FDA-approved medication indicated for the treatment of dyskinesia in patients with Parkinson’s disease receiving levodopa-based therapy, with or without concomitant dopaminergic medications. The Company was incorporated in the State of Delaware on November 15, 2000, and operates as one segment. The Company’s headquarters and operations are located in Emeryville, California.

Basis of Presentation and Summa

Basis of Presentation and Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2020
Accounting Policies [Abstract]
Basis of Presentation and Summary of Significant Accounting Policies	BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. The unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and with instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, these financial statements do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, the condensed consolidated financial statements include all adjustments (consisting only of normal recurring adjustments) considered necessary for the fair presentation of the periods presented. The condensed consolidated balance sheet at December 31, 2019 was derived from the audited consolidated financial statements, but does not include all disclosures required by U.S. GAAP. These interim financial results are not necessarily indicative of results to be expected for the full fiscal year ending December 31, 2020, or any other future period. Readers should read these interim unaudited condensed consolidated financial statements in conjunction with the audited consolidated financial statements and the related notes thereto for the year ended December 31, 2019, included in the Company’s Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission, or SEC. The Company’s critical accounting policies are detailed in its Annual Report on Form 10-K for the year ended December 31, 2019. The Company’s critical accounting policies have not changed materially from December 31, 2019. Use of Estimates The preparation of the accompanying consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses in the consolidated financial statements and the accompanying notes. On an ongoing basis, management evaluates its estimates, including those related to revenue recognition and variable consideration, lease assets and liabilities, clinical trial accruals, fair value of assets and liabilities including short-term and long-term classification, embedded derivatives, income taxes, inventory, and stock-based compensation. Management bases its estimates on historical experience and on various other market-specific and relevant assumptions that management believes to be reasonable under the circumstances. Actual results may differ from those estimates. Risks and Uncertainties The outbreak of the novel Coronavirus (“COVID-19”), which is understood to have begun in December 2019, continues to grow both within the U.S. and globally. The World Health Organization has declared the outbreak of COVID-19 to be a pandemic, and the U.S. federal government has declared it a national emergency. The Company is subject to risks and uncertainties as a result of the outbreak of COVID-19. Despite disruptions to the Company’s business operations, the COVID-19 pandemic did not significantly impact GOCOVRI prescription refill rates for the three months ended March 31, 2020, and thus far management has observed no disruptions to its inventory on hand or planned manufacturing schedule. However, new prescription rates have slowed due to several factors, including: many healthcare providers have temporarily closed their offices or are restricting patient visits; patients are postponing visits to healthcare provider facilities; and the sales force has moved to conducting activities virtually with healthcare providers. While management believes this decline in new prescriptions to be temporary, the duration and severity is dependent on future developments, including new information that may emerge concerning the actions taken to contain or prevent further spread, all of which are highly uncertain and cannot be predicted with confidence. As of the date of issuance of these condensed consolidated financial statements, due to the numerous uncertainties surrounding the COVID-19 pandemic, the Company is unable to predict the extent of the impact that the COVID-19 pandemic may have on the Company’s future business, financial results, liquidity and cash flows. Liquidity Since January 1, 2017, the Company has funded its operations primarily through a royalty-backed loan agreement (“Royalty-Backed Loan”) with HealthCare Royalty Partners III, L.P., (“HCRP”), sales of GOCOVRI, and sales of its common stock. In 2017, the Company entered into a Royalty-Backed Loan with HCRP, whereby the Company borrowed a total of $100.0 million. The Company made GOCOVRI available for physician and patient use in the fourth quarter of 2017, with a full commercial launch in January 2018. In January 2018, the Company completed a follow-on public offering of its common stock from which proceeds raised were approximately $134.3 million, net of underwriting discounts, commissions, and offering-related transaction costs. Prior to the generation of revenue from GOCOVRI, the Company had not generated any commercial revenue from the sale of its products. In November 2019, the Company entered into a sales agreement with Cowen and Company, LLC, pursuant to which it may, from time to time, issue and sell shares of common stock having an aggregate offering value of up to $50.0 million. As of March 31, 2020, no shares had been sold under the sales agreement. As of March 31, 2020, the Company had $115.3 million of cash, cash equivalents, and investments, which management believes will be sufficient to fund its projected operating requirements, including commercialization of GOCOVRI for the treatment of dyskinesia in patients with Parkinson’s disease and operations related to the continued development of ADS-5102 for other indications including MSW, for at least 12 months from the issuance of this quarterly report on Form 10-Q. However, it is possible that the Company will not achieve the progress it expects, because revenues from GOCOVRI may be less than anticipated, especially in light of the current COVID-19 pandemic, and the actual costs and timing of drug development, particularly clinical studies, and regulatory approvals are difficult to predict, subject to substantial risks and delays, and often vary depending on the particular indication and development strategy. Recent Accounting Pronouncements Accounting Pronouncements Adopted in 2020 In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement , which modifies the disclosure requirements on fair value measurements. The Company adopted the new guidance effective January 1, 2020, and determined the adoption did not have a material impact on its consolidated financial statements. Disclosures are updated in Note 3 “Fair Value Measurements”. In November 2018, the FASB issued ASU 2018-18, Collaborative Arrangements (Topic 808): Clarifying the Interaction between Topic 808 and Topic 606 , which amends ASC 808 to clarify ASC 606 should apply in entirety to certain transactions between collaborative arrangement participants. The Company adopted the new guidance effective January 1, 2020, and determined the adoption did not have a material impact on its consolidated financial statements. New Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses of Financial Instruments; in November 2018 the FASB issued a subsequent amendment ASU No. 2018-19, Codification Improvements to Topic 326, Financial Instruments—Credit Losses ; in April 2019 the FASB issued ASU No. 2019-04, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments ; in May 2019 the FASB issued ASU No. 2019-05, Financial Instruments—Credit Losses (Topic 326): Targeted Transition Relief ; and in November 2019 the FASB issued ASU No. 2019-11, Codification Improvements to Topic 326, Financial Instruments—Credit Losses . The new guidance changes the methodology for measuring credit losses on financial instruments and the timing of when such losses are recorded. In November 2019 the FASB issued ASU No. 2019-10, Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842)—Effec tive Dates , which defers the effective date of ASU 2016-13 for all entities except SEC reporting companies that are not smaller reporting companies. As a smaller reporting company, this guidance is effective for fiscal years beginning after December 15, 2022. Early adoption is permitted. The Company is currently evaluating the timing and effect the new guidance will have on its consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740)—Simplifying the Accounting for Income Taxes , which is intended to simplify accounting for income taxes. It removes certain exceptions to the general principles in Topic 740 and amends existing guidance to improve consistent application. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early adoption is permitted. The Company is currently evaluating but does not expect the new guidance to have a material impact on its consolidated financial statements.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2020
Fair Value Disclosures [Abstract]
Fair Value Measurements	FAIR VALUE MEASUREMENTS In accordance with ASC 820-10, Fair Value Measurements and Disclosures, the Company determines the fair value of financial and non-financial assets and liabilities using the fair value hierarchy, which establishes three levels of inputs that may be used to measure fair value, as follows: • Level 1 inputs, which include quoted prices in active markets for identical assets or liabilities; • Level 2 inputs, which include observable inputs other than Level 1 inputs, such as quoted prices for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability. For available-for-sale securities, the Company reviews trading activity and pricing as of the measurement date. When sufficient quoted pricing for identical securities is not available, the Company uses market pricing and other observable market inputs for similar securities obtained from various third-party data providers. These inputs either represent quoted prices for similar assets in active markets or have been derived from observable market data; and • Level 3 inputs, which include unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the underlying asset or liability. Level 3 assets and liabilities include those whose fair value measurements are determined using pricing models, discounted cash flow methodologies, or similar valuation techniques, as well as significant management judgment or estimation. The following table represents the fair value hierarchy for the Company’s financial assets and liabilities which require fair value measurement on a recurring basis (in thousands): March 31, 2020 Total Level 1 Level 2 Level 3 Assets: Money market $ 21,744 $ 21,744 $ — $ — Corporate debt 25,621 — 25,621 — U.S. Treasury securities 39,649 — 39,649 — Commercial paper 4,471 — 4,471 — Total assets measured at fair value $ 91,485 $ 21,744 $ 69,741 $ — Liabilities: Embedded derivative liability $ 2,498 $ — $ — $ 2,498 Total liabilities measured at fair value $ 2,498 $ — $ — $ 2,498 December 31, 2019 Total Level 1 Level 2 Level 3 Assets: Money market $ 27,720 $ 27,720 $ — $ — Corporate debt 22,576 — 22,576 — U.S. Treasury securities 37,811 — 37,811 — Commercial paper 10,928 — 10,928 — Total assets measured at fair value $ 99,035 $ 27,720 $ 71,315 $ — Liabilities: Embedded derivative liability $ 2,157 $ — $ — $ 2,157 Total liabilities measured at fair value $ 2,157 $ — $ — $ 2,157 Money market funds are highly liquid investments and are actively traded. The pricing information on these investment instruments are readily available and can be independently validated as of the measurement date. This approach results in the classification of these securities as Level 1 of the fair value hierarchy. Corporate debt, U.S. Treasury securities, and commercial paper are measured at fair value using Level 2 inputs. The Company reviews trading activity and pricing for these investments as of each measurement date. When sufficient quoted pricing for identical securities is not available, the Company uses market pricing and other observable market inputs for similar securities obtained from various third-party data providers. These inputs represent quoted prices for similar assets in active markets or these inputs have been derived from observable market data. This approach results in the classification of these securities as Level 2 of the fair value hierarchy. In certain cases where there is limited activity or less transparency around inputs to valuation, the related assets or liabilities are classified as Level 3. The Company classified an embedded derivative related to the Company’s Royalty-Backed Loan with HCRP as a Level 3 liability. The fair value of the embedded derivative as a result of a change in control was calculated using a probability-weighted discounted cash flow model. The model used in valuing this embedded derivative requires the use of significant estimates and assumptions including but not limited to: 1) expected cash flows the Company expects to receive on U.S. net sales of GOCOVRI and on royalties from Allergan on U.S. net sales of Namzaric; 2) the Company’s risk adjusted discount rates; and 3) the probability of a change in control occurring during the term of the note based on the percentage of similar companies that were acquired over the previous five year period. Changes in the estimated fair value of the bifurcated embedded derivative are reported as gains or losses in interest and other income, net, in the condensed consolidated statement of operations. In the periods presented, the Company evaluated the embedded derivative value as a result of an event of default and the value as a result of increased costs due to a regulatory change and considered both to have no material value based on current assessment of probability, but could become material in future periods if a specified event of default or regulatory change became more probable than is currently estimated. See Note 8 “Long-Term Debt” for further description. At March 31, 2020, the embedded derivative related to the Royalty-Backed Loan was the only recurring fair value measurement with Level 3 unobservable inputs. A risk-adjusted discount rate of 21.5% and a probability of a change in control of 3.0% were applied to calculate the value of the embedded derivative. Significant increases (or decreases) in the discount rate, and significant increases (or decreases) in the probability of a change in control would result in a significantly higher (or lower) fair value measurement. The following table sets forth changes in Level 3 liabilities measured at fair value on a recurring basis for the three months ended March 31, 2020 and 2019 (in thousands): Three Months Ended 2020 2019 Beginning balance $ 2,157 $ 1,352 Change in fair value included in interest and other income, net 341 101 Ending balance $ 2,498 $ 1,453

Investments

Investments	3 Months Ended
	Mar. 31, 2020
Investments, Debt and Equity Securities [Abstract]
Investments	INVESTMENTS The Company’s investments consist of corporate debt, U.S. Treasury securities, and commercial paper classified as available-for-sale securities. The Company limits the amount of investment exposure as to institution, maturity, and investment type. To mitigate credit risk, the Company invests in investment grade corporate debt, U.S. Treasury securities, and commercial paper. Such securities are reported at fair value, with unrealized gains and losses excluded from earnings and shown separately as a component of accumulated other comprehensive loss within stockholders’ equity. Realized gains and losses are reclassified from other comprehensive loss to other income on the condensed consolidated statements of operations when incurred. The Company may pay a premium or receive a discount upon the purchase of available-for-sale securities. Interest earned and gains realized on available-for-sale securities and amortization of discounts received and accretion of premiums paid on the purchase of available-for-sale securities are included in investment income. The following table is a summary of amortized cost, unrealized gain and loss, and the fair value of available-for-sale securities as of March 31, 2020 and December 31, 2019 (in thousands): March 31, 2020 Amortized Cost Gross Unrealized Gross Unrealized Fair Value Investments: Corporate debt $ 25,727 $ — $ (106) $ 25,621 U.S. Treasury securities 39,470 179 — 39,649 Commercial paper 4,471 — — 4,471 Total $ 69,668 $ 179 $ (106) $ 69,741 Reported as: Short-term investments $ 69,668 $ 179 $ (106) $ 69,741 Total $ 69,668 $ 179 $ (106) $ 69,741 December 31, 2019 Amortized Cost Gross Unrealized Gross Unrealized Fair Value Investments: Corporate debt $ 22,582 $ 3 $ (9) $ 22,576 U.S. Treasury securities 37,789 22 — 37,811 Commercial paper 6,446 — — 6,446 Total $ 66,817 $ 25 $ (9) $ 66,833 Reported as: Short-term investments $ 66,817 $ 25 $ (9) $ 66,833 Total $ 66,817 $ 25 $ (9) $ 66,833 Short-term investments include accrued interest of $0.2 million and $0.4 million as of March 31, 2020 and December 31, 2019, respectively. The Company has not incurred any realized gains or losses on investments for the three months ended March 31, 2020 and 2019. Investments are classified as short-term or long-term depending on the underlying investment’s maturity date. The Company had no investments with a maturity date greater than 12 months as of March 31, 2020 and December 31, 2019. All investments with unrealized losses at March 31, 2020 have been in a loss position for less than twelve months or the loss is not material and were temporary in nature. The Company does not intend to sell the investments that are in an unrealized loss position before recovery of their amortized cost basis.

Inventory

Inventory	3 Months Ended
	Mar. 31, 2020
Inventory Disclosure [Abstract]
Inventory	INVENTORY If the Company identifies excess, obsolete or unsalable product, the Company will write down its inventory to net realizable value in the period it is identified. During the three months ended March 31, 2020, the Company recorded a $0.3 million provision for the write-down of inventory to cost of sales. Inventory consists of the following (in thousands): March 31, 2020 December 31, 2019 Raw materials $ 976 $ 1,057 Work-in-process 2,459 1,925 Finished goods 1,946 2,285 Total inventory $ 5,381 $ 5,267

License Agreements

License Agreements	3 Months Ended
	Mar. 31, 2020
License Agreements
License Agreements	LICENSE AGREEMENTS In November 2012, the Company granted Forest Laboratories Holdings Limited “Forest”, an indirect wholly-owned subsidiary of Allergan plc (collectively “Allergan”) an exclusive license, with right to sublicense, certain of the Company’s intellectual property rights relating to human therapeutics containing memantine in the United States. In connection with these rights, Allergan markets and sells Namzaric ® and Namenda XR ® for the treatment of moderate to severe dementia related to Alzheimer’s disease. Pursuant to the agreement, Allergan made an upfront payment of $65.0 million. The Company earned and received additional cash payments totaling $95.0 million upon achievement by Allergan of certain development and regulatory milestones. Under the agreement, external costs incurred related to the prosecution and litigation of intellectual property rights are reimbursable. Reimbursable external costs are recorded as a reduction to selling, general and administrative, net. For the three months ended March 31, 2020 and 2019, there were no reimbursable external costs for prosecution or litigation of intellectual property rights. In addition, the Company may earn tiered royalty payments based on future net sales of Namzaric and Namenda XR. Beginning in May 2020, the Company will be entitled to receive royalties at rates in the low double digits to mid-teens from Allergan for sales of Namzaric in the United States. Based on 2019 net sales of Namzaric, the Company expects the tiered royalty to be in the low double digits through the term of the agreement. Allergan’s obligation to pay royalties with respect to fixed-dose memantine-donepezil products, including Namzaric, continues until the later of (i) 15 years after the commercial launch of the first fixed-dose memantine-donepezil product by Allergan in the United States or (ii) the expiration of the Orange Book listed patents for which Allergan obtained rights from the Company covering such product, but is eliminated in any quarter where there is significant competition from generics. Based on Allergan’s and the Company’s current settlement agreements with the Namzaric ANDA filers to date, the Company anticipates it will be entitled to royalties on Allergan’s sales of Namzaric to continue through December 31, 2024, or in the alternative, an option to launch an authorized generic version of Namzaric through December 31, 2025, or earlier in certain circumstances. For further discussion of Namzaric ANDA filers, see Litigation and Other Legal Proceedings in “Note 7 – Commitments and Contingencies”. Beginning in June 2018, the Company was entitled to receive royalties at rates in the low to mid-single digits for sales of Namenda XR in the United States. The Company does not expect to receive royalties on net sales of Namenda XR, due to the entry of generic versions of Namenda XR. Royalties under the license agreement will be recognized when the related sales occur, in accordance with the sales-based royalty exception.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	COMMITMENTS AND CONTINGENCIES Purchase Commitments The Company has entered into agreements for the supply of API and the manufacture of commercial supply of GOCOVRI, with Moehs Ibérica, S.L. and Catalent Pharma Solutions, LLC, respectively. Under the terms of the agreements, the Company will supply the vendors with non-cancelable firm commitment purchase orders. The Company has also entered into other agreements with certain vendors for the provision of services, including services related to data access and packaging, under which the Company is contractually obligated to make certain payments to the vendors. The Company enters into contracts in the normal course of business that include, among others, arrangements with CROs for clinical trials, vendors for preclinical research, and vendors for manufacturing. These contracts generally provide for termination upon notice, and therefore the Company believes that its obligations under these agreements are not material. Contingencies In the normal course of business, the Company enters into contracts and agreements that contain a variety of representations and warranties and provide for general indemnifications. The Company’s exposure under these agreements is unknown, because it involves claims that may be made against the Company in the future, but have not yet been made. The Company accrues a liability for such matters when it is probable that future expenditures will be made and such expenditures can be reasonably estimated. Indemnification In accordance with the Company’s amended and restated certificate of incorporation and amended and restated bylaws, the Company has indemnification obligations to its officers and directors for certain events or occurrences, subject to certain limits, while they are serving in such capacity. The Company has a directors and officers liability insurance policy that may enable it to recover a portion of any amounts paid for claims. In addition, in the normal course of business, the Company enters into contracts and agreements that may contain a variety of representations and warranties and provide for general indemnifications. For example, the Company provided certain indemnifications to its agents and underwriters as part of the Company’s January 2018 underwritten secondary public offering of common stock. Underwriters have now made a claim to such indemnifications in conjunction with the ongoing litigation involving that transaction. Litigation and Other Legal Proceedings In November 2012, the Company granted Forest an exclusive license to certain of the Company’s intellectual property rights relating to human therapeutics containing memantine in the United States. Under the terms of that license agreement, Forest has the right to enforce such intellectual property rights which are related to its right to market and sell Namzaric and Namenda XR for the treatment of moderate to severe dementia related to Alzheimer’s disease. The Company has a right to participate in, but not control, such enforcement actions by Forest. In 2018 and as of the date of this filing, multiple generic companies have launched generic versions of Namenda XR. As of the date of this filing, a number of companies have submitted ANDAs including one or more certifications pursuant to 21 U.S.C. § 355(j)(2)(A)(vii)(iv) to the FDA requesting approval to manufacture and market generic versions of Namzaric, on which the Company is entitled to receive royalties from Forest beginning in May 2020. As of the date of this filing, the Company and Forest have settled with all such Namzaric ANDA filers, including all first filers on all the available dosage forms of Namzaric. Subject to those agreements, the earliest date on which any of these agreements grants a license to market generic version of Namzaric is January 1, 2025 or in the alternative, an option to launch an authorized generic version of Namzaric beginning on January 1, 2026, or earlier in certain circumstances. The Company and Forest intend to continue to enforce the patents associated with Namzaric. On February 16, 2018, Osmotica Pharmaceuticals LLC and Vertical Pharmaceuticals LLC (“Osmotica”) filed an action against the Company in U.S. District Court for the state of Delaware, requesting a declaratory judgment that Osmotica’s newly-approved product Osmolex ER™ (amantadine) extended release tablets do not infringe certain of the Company’s patents. On September 20, 2018, the Company filed its first amended answer including infringement counterclaims against Osmotica asserting Osmotica has infringed nine Company patents under 35 U.S.C. §§ 271(a), (b), and/or (c) and 35 U.S.C. § 271(e)(2)(A) and seeking various forms of relief, including damages, treble damages, injunctive relief, and an order pursuant to 35 U.S.C. § 271(e)(4)(A) that the effective date of any approval of Osmotica’s NDA for Osmolex ER™ be a date that is not earlier than the latest expiration date of the Company patents involved in the lawsuit. This action is ongoing, but was stayed on May 23, 2019 at the parties’ joint request. On April 1, 2019, the Company was served with a complaint filed in the United States District Court for the Northern District of California (Case No. 3:18-cv-03018-JCS) against the Company and several Allergan entities alleging violations of Federal and state false claims acts (“FCA”) in connection with the commercialization of Namenda XR and Namzaric by Allergan. The lawsuit is a qui tam complaint brought by a named individual, Zachary Silbersher, asserting rights of the Federal government and various state governments. The lawsuit was originally filed in May 2018 under seal, and the Company became aware of the lawsuit when it was served. The complaint alleges that patents held by Allergan and the Company covering Namenda XR and Namzaric were procured through fraud on the United States Patent and Trademark Office and that these patents were asserted against potential generic manufacturers of Namenda XR and Namzaric to prevent the generic manufacturers from entering the market, thereby wrongfully excluding generic competition resulting in an artificially high price being charged to government payors. The Company’s patents in question were licensed exclusively to Forest. The complaint includes a claim for damages of “potentially more than $2.5 billion dollars,” treble damages “under the federal FCA and most of the State FCAs,” and “statutory penalties that can be assessed for each false claim.” This action is ongoing. The federal and state governments have declined to intervene in this action. To the Company’s knowledge, the individual plaintiff is pursuing the lawsuit in his individual capacity. The Company believes it has strong factual and legal defenses and intends to defend itself vigorously. The Company is in the early stages of this litigation. On May 13, 2019, a putative class action lawsuit alleging violations of the federal securities laws was filed in California Superior Court for the County of Alameda (Case No. RG1901875). The lawsuit alleges violations of the Securities Act of 1933 by the Company and certain of the Company’s current and former directors and officers for allegedly making false statements and omissions in the registration statement and prospectus filed by the Company in connection with our January 24, 2018, secondary public offering of common stock. On December 10, 2019, another putative class action lawsuit alleging violations of the federal securities laws was filed in federal court in the Northern District of California (Case No. 4:19-cv-08051). This lawsuit alleges violations of the Securities Act of 1934 by the Company and certain of the Company’s former officers. On March 16, 2020, a shareholder derivative lawsuit was filed in federal court in the Northern District of California (Case No. 4:20-cv-01815). This lawsuit alleges breaches of fiduciary duty and violations of the Securities Act of 1934 by certain of the Company’s current and former directors and officers. The Company is named as a nominal defendant only. On April 6, 2020, another, virtually identical, shareholder derivative lawsuit was filed in federal court in the Northern District of California (Case No. 4:20-cv-02320). This lawsuit contains the same allegations, claims, and defendants as the first derivative action. Other similar cases may be filed in the future. In all of these actions, Plaintiffs seek unspecified monetary damages and other relief. These actions are ongoing. The Company believes it has strong factual and legal defenses to all actions and intends to defend itself vigorously. From time to time, the Company may be party to legal proceedings, investigations, and claims in the ordinary course of its business. Other than the matters described above, the Company is not currently party to any material legal proceedings.

Long-term Debt

Long-term Debt	3 Months Ended
	Mar. 31, 2020
Debt Disclosure [Abstract]
Long-term Debt	LONG-TERM DEBT Royalty-Backed Loan Agreement In May 2017, the Company, through a new wholly-owned subsidiary, Adamas Pharma, LLC, entered into a Royalty-Backed Loan with HCRP, whereby the Company initially borrowed $35 million, followed by an additional $65 million received in the fourth quarter 2017 upon FDA’s recognition in the Orange Book of seven-year orphan drug exclusivity, which GOCOVRI earned upon approval on August 24, 2017. Principal and interest will be payable quarterly from the proceeds of a 12.5% royalty on U.S. net sales of GOCOVRI and up to $15 million of the Company’s annual royalties from Allergan on U.S. net sales of Namzaric starting in May 2020, pursuant to the Company’s license agreement with Allergan. The royalty rate on net sales of GOCOVRI will drop to 6.25% after the principal amount of the loan has been repaid in full, until the Company has made total payments of 200% of the funded amounts. The Company may elect to voluntarily prepay the loan at any time, or may be required to prepay subject to specified prepayment trigger events as described below, in which case the amount due will be 200% of the funded amounts, less total payments made to date. Royalty rates are subject to increase to 17.5% and 22.5% if total principal and interest payments have not reached minimum specified levels at measurement dates on December 2021 and December 2022, respectively. Under the terms of the loan, HCRP has recourse to Adamas Pharma, LLC, not the Company. The loan agreement matures in December 2026 but as the repayment of the loan amount is contingent upon the sales volumes of GOCOVRI and royalties from Allergan, the repayment term may be shortened depending on the actual sales of GOCOVRI and actual royalties received from Allergan. The loans bear interest at an annual rate of 11% on the outstanding principal amount and includes an interest-only period until the interest payment date following the ninth full calendar quarter after the $65 million additional loan received in the fourth quarter 2017. The interest-only period ended during the first quarter of 2020. To the extent that royalties were insufficient to pay interest in full during the first nine quarters of the loan, any unpaid portion of the quarterly interest payment was added to the principal amount of the loans. In connection with the Royalty-Backed Loan, in 2017 the Company paid HCRP a lender expense amount of $0.4 million and incurred additional debt issuance costs totaling $0.8 million. The lender expense and additional debt issuance costs have been recorded as a debt discount and are being amortized and recorded as interest expense over the estimated term of the loan using the effective interest method. The Company recorded interest expense, including amortization of the debt discount, related to the Royalty-Backed Loan, of $3.6 million and $3.7 million for the three months ended March 31, 2020 and March 31, 2019, respectively. Interest expense over the life of the Royalty-Backed Loan includes an annual interest rate of 11% on the outstanding principal, a royalty rate of 6.25% on net sales of GOCOVRI after the principal amount is paid, and amortization of the debt discount. The effective interest rate as of March 31, 2020 on the amounts borrowed under the Royalty-Backed Loan, including the amortization of the debt discount, was 13.4%. The assumptions used in determining the expected repayment term of the loan and amortization period of the debt discount require that the Company make estimates that could impact the short and long-term classification of these costs, as well as the period over which these costs will be amortized and the effective interest rate. The Company may be required to make mandatory prepayments of the borrowings under the Royalty-Backed Loan upon the occurrence of specified prepayment trigger events, including: (1) the occurrence of any event of default or (2) the occurrence of a change in control. Upon the prepayment of all or any of the outstanding principal balance, the Company shall pay, in addition to such prepayment, a prepayment premium. As HCRP, as the holder of the loans, may exercise the option to require prepayment by the Company, the prepayment premium is considered to be an embedded derivative which is required to be bifurcated from its host contract and accounted for as a separate financial instrument. The valuation of the embedded derivative is described further in Note 3. Payment obligations under the Royalty-Backed Loan are as follows (in thousands): March 31, 2020 December 31, 2019 Total repayment obligation $ 200,000 $ 200,000 Less: Interest to be accreted in future periods (59,593) (63,217) Less: Payments made (11,110) (9,068) Carrying value of loans payable $ 129,297 $ 127,715 Less: Current portion of long-term debt (3,232) (2,041) Non-current portion of long-term debt $ 126,065 $ 125,674 The estimated fair value of the long-term debt, as measured using Level 3 inputs, approximates $97.6 million as of March 31, 2020. The estimated fair value was calculated in the same methodology as the valuation of the embedded derivative as described further in Note 3. There are no contractual minimum principal payments due until the loan matures in December 2026 as the repayment of the loan amount is contingent upon the sales volumes of GOCOVRI and royalties from Allergan on U.S. net sales of Namzaric.

Stockholders' Equity

Stockholders' Equity	3 Months Ended
	Mar. 31, 2020
Equity [Abstract]
Stockholders' Equity	STOCKHOLDERS’ EQUITY Common Stock The amended and restated certificate of incorporation authorizes the Company to issue 100,000,000 shares of common stock. Common stockholders are entitled to dividends as and when declared by the board of directors, subject to the rights of holders of all classes of stock outstanding having priority rights as to dividends. There have been no dividends declared to date. Each share of common stock is entitled to one vote. Sales Agreement In November 2019, the Company entered into a sales agreement (“Sales Agreement”) with Cowen and Company, LLC (“Cowen”), as sales agent, pursuant to which the Company may, from time to time, issue and sell at its option, shares of the Company’s common stock for an aggregate offering price of up to $50.0 million under an at-the-market offering (“ATM Offering”). Sales of the common stock, if any, will be made pursuant to a shelf registration statement that was declared effective by the Securities and Exchange Commission (“SEC”) on December 2, 2019. Cowen is acting as sole sales agent for any sales made under the Sales Agreement and the Company will pay Cowen a commission of up to 3% of the gross proceeds. The Company’s common stock will be sold at prevailing market prices at the time of the sale, and, as a result, prices may vary. The Company is not obligated to make any sales of shares of common stock under the Sales Agreement. Unless otherwise terminated earlier, the Sales Agreement continues until all shares available under the Sales Agreement have been sold. As of March 31, 2020, no shares have been sold under the Sales Agreement. Shares Reserved for Future Issuance Shares of the Company’s common stock reserved for future issuance are as follows: March 31, 2020 December 31, 2019 Common stock awards issued and outstanding 7,453,298 6,874,633 Authorized for future issuance under 2014 Equity Incentive Plan 2,793,564 2,376,613 Authorized for future issuance under 2016 Inducement Plan 615,817 236,269 Employee stock purchase plan 1,206,591 926,943 Total 12,069,270 10,414,458

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Mar. 31, 2020
Share-based Payment Arrangement [Abstract]
Stock-Based Compensation	STOCK-BASED COMPENSATION Stock Compensation Plans In January 2020, the common stock available for issuance under the 2014 Equity Incentive Plan (the “2014 Plan”) automatically increased by 4% of the total number of shares of the Company’s capital stock outstanding on December 31, 2019, or 1,118,591 shares. In February 2020, the Company’s board of directors approved an amendment to the 2016 Inducement Plan (the “Inducement Plan”) to increase the number of shares available for issuance by an additional 450,000. Employee Stock Purchase Plan In January 2020, the common stock available for issuance under the 2014 Employee Stock Purchase Plan (the “ESPP”) automatically increased by 1% of the total number of shares of the Company’s capital stock outstanding on December 31, 2019, or 279,648 shares. Stock-Based Compensation Expense The following table reflects stock-based compensation expense recognized for the three months ended March 31, 2020 and 2019 (in thousands): Three Months Ended 2020 2019 Research and development $ 86 $ 590 Selling, general and administrative 1,395 2,794 Total stock-based compensation expense $ 1,481 $ 3,384 Stock-based compensation of $108,000 was capitalized into inventory for the three months ended March 31, 2020, and $26,000 for the three months ended March 31, 2019. Stock-based compensation capitalized into inventory is recognized as cost of sales when the related product is sold.

Net Loss Per Share

Net Loss Per Share	3 Months Ended
	Mar. 31, 2020
Earnings Per Share [Abstract]
Net Loss Per Share	NET LOSS PER SHARE For all periods presented, there is no difference in the number of shares used to compute basic and diluted shares outstanding due to the Company’s net loss position. The following total outstanding shares of potentially dilutive securities were excluded from the computation of diluted net loss per share for the periods presented, because including them would have been anti-dilutive (in thousands): Three Months Ended 2020 2019 Options to purchase common stock 5,789 5,741 Restricted stock units 1,664 808 Total 7,453 6,549

Basis of Presentation and Sum_2

Basis of Presentation and Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2020
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. The unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and with instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, these financial statements do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, the condensed consolidated financial statements include all adjustments (consisting only of normal recurring adjustments) considered necessary for the fair presentation of the periods presented. The condensed consolidated balance sheet at December 31, 2019 was derived from the audited consolidated financial statements, but does not include all disclosures required by U.S. GAAP. These interim financial results are not necessarily indicative of results to be expected for the full fiscal year ending December 31, 2020, or any other future period. Readers should read these interim unaudited condensed consolidated financial statements in conjunction with the audited consolidated financial statements and the related notes thereto for the year ended December 31, 2019, included in the Company’s Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission, or SEC. The Company’s critical accounting policies are detailed in its Annual Report on Form 10-K for the year ended December 31, 2019. The Company’s critical accounting policies have not changed materially from December 31, 2019.
Use of Estimates	Use of Estimates The preparation of the accompanying consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses in the consolidated financial statements and the accompanying notes. On an ongoing basis, management evaluates its estimates, including those related to revenue recognition and variable consideration, lease assets and liabilities, clinical trial accruals, fair value of assets and liabilities including short-term and long-term classification, embedded derivatives, income taxes, inventory, and stock-based compensation. Management bases its estimates on historical experience and on various other market-specific and relevant assumptions that management believes to be reasonable under the circumstances. Actual results may differ from those estimates.
Risks and Uncertainties	Risks and Uncertainties The outbreak of the novel Coronavirus (“COVID-19”), which is understood to have begun in December 2019, continues to grow both within the U.S. and globally. The World Health Organization has declared the outbreak of COVID-19 to be a pandemic, and the U.S. federal government has declared it a national emergency. The Company is subject to risks and uncertainties as a result of the outbreak of COVID-19. Despite disruptions to the Company’s business operations, the COVID-19 pandemic did not significantly impact GOCOVRI prescription refill rates for the three months ended March 31, 2020, and thus far management has observed no disruptions to its inventory on hand or planned manufacturing schedule. However, new prescription rates have slowed due to several factors, including: many
LIquidity	Liquidity Since January 1, 2017, the Company has funded its operations primarily through a royalty-backed loan agreement (“Royalty-Backed Loan”) with HealthCare Royalty Partners III, L.P., (“HCRP”), sales of GOCOVRI, and sales of its common stock. In 2017, the Company entered into a Royalty-Backed Loan with HCRP, whereby the Company borrowed a total of $100.0 million. The Company made GOCOVRI available for physician and patient use in the fourth quarter of 2017, with a full commercial launch in January 2018. In January 2018, the Company completed a follow-on public offering of its common stock from which proceeds raised were approximately $134.3 million, net of underwriting discounts, commissions, and offering-related transaction costs. Prior to the generation of revenue from GOCOVRI, the Company had not generated any commercial revenue from the sale of its products. In November 2019, the Company entered into a sales agreement with Cowen and Company, LLC, pursuant to which it may, from time to time, issue and sell shares of common stock having an aggregate offering value of up to $50.0 million. As of March 31, 2020, no shares had been sold under the sales agreement.
Recent Accounting Pronouncements	Recent Accounting Pronouncements Accounting Pronouncements Adopted in 2020 In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement , which modifies the disclosure requirements on fair value measurements. The Company adopted the new guidance effective January 1, 2020, and determined the adoption did not have a material impact on its consolidated financial statements. Disclosures are updated in Note 3 “Fair Value Measurements”. In November 2018, the FASB issued ASU 2018-18, Collaborative Arrangements (Topic 808): Clarifying the Interaction between Topic 808 and Topic 606 , which amends ASC 808 to clarify ASC 606 should apply in entirety to certain transactions between collaborative arrangement participants. The Company adopted the new guidance effective January 1, 2020, and determined the adoption did not have a material impact on its consolidated financial statements. New Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses of Financial Instruments; in November 2018 the FASB issued a subsequent amendment ASU No. 2018-19, Codification Improvements to Topic 326, Financial Instruments—Credit Losses ; in April 2019 the FASB issued ASU No. 2019-04, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments ; in May 2019 the FASB issued ASU No. 2019-05, Financial Instruments—Credit Losses (Topic 326): Targeted Transition Relief ; and in November 2019 the FASB issued ASU No. 2019-11, Codification Improvements to Topic 326, Financial Instruments—Credit Losses . The new guidance changes the methodology for measuring credit losses on financial instruments and the timing of when such losses are recorded. In November 2019 the FASB issued ASU No. 2019-10, Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842)—Effec tive Dates , which defers the effective date of ASU 2016-13 for all entities except SEC reporting companies that are not smaller reporting companies. As a smaller reporting company, this guidance is effective for fiscal years beginning after December 15, 2022. Early adoption is permitted. The Company is currently evaluating the timing and effect the new guidance will have on its consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740)—Simplifying the Accounting for Income Taxes , which is intended to simplify accounting for income taxes. It removes certain exceptions to the general principles in Topic 740 and amends existing guidance to improve consistent application. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early adoption is permitted. The Company is currently evaluating but does not expect the new guidance to have a material impact on its consolidated financial statements.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2020
Fair Value Disclosures [Abstract]
Schedule of fair value hierarchy for the Company’s financial assets and liabilities which require fair value measurement on a recurring basis	The following table represents the fair value hierarchy for the Company’s financial assets and liabilities which require fair value measurement on a recurring basis (in thousands): March 31, 2020 Total Level 1 Level 2 Level 3 Assets: Money market $ 21,744 $ 21,744 $ — $ — Corporate debt 25,621 — 25,621 — U.S. Treasury securities 39,649 — 39,649 — Commercial paper 4,471 — 4,471 — Total assets measured at fair value $ 91,485 $ 21,744 $ 69,741 $ — Liabilities: Embedded derivative liability $ 2,498 $ — $ — $ 2,498 Total liabilities measured at fair value $ 2,498 $ — $ — $ 2,498 December 31, 2019 Total Level 1 Level 2 Level 3 Assets: Money market $ 27,720 $ 27,720 $ — $ — Corporate debt 22,576 — 22,576 — U.S. Treasury securities 37,811 — 37,811 — Commercial paper 10,928 — 10,928 — Total assets measured at fair value $ 99,035 $ 27,720 $ 71,315 $ — Liabilities: Embedded derivative liability $ 2,157 $ — $ — $ 2,157 Total liabilities measured at fair value $ 2,157 $ — $ — $ 2,157
Summary of the changes in the estimated fair value of the Company’s embedded derivative	The following table sets forth changes in Level 3 liabilities measured at fair value on a recurring basis for the three months ended March 31, 2020 and 2019 (in thousands): Three Months Ended 2020 2019 Beginning balance $ 2,157 $ 1,352 Change in fair value included in interest and other income, net 341 101 Ending balance $ 2,498 $ 1,453

Investments (Tables)

Investments (Tables)	3 Months Ended
	Mar. 31, 2020
Investments, Debt and Equity Securities [Abstract]
Summary of amortized cost, unrealized gain and loss and the fair value of available-for-sale securities	The following table is a summary of amortized cost, unrealized gain and loss, and the fair value of available-for-sale securities as of March 31, 2020 and December 31, 2019 (in thousands): March 31, 2020 Amortized Cost Gross Unrealized Gross Unrealized Fair Value Investments: Corporate debt $ 25,727 $ — $ (106) $ 25,621 U.S. Treasury securities 39,470 179 — 39,649 Commercial paper 4,471 — — 4,471 Total $ 69,668 $ 179 $ (106) $ 69,741 Reported as: Short-term investments $ 69,668 $ 179 $ (106) $ 69,741 Total $ 69,668 $ 179 $ (106) $ 69,741 December 31, 2019 Amortized Cost Gross Unrealized Gross Unrealized Fair Value Investments: Corporate debt $ 22,582 $ 3 $ (9) $ 22,576 U.S. Treasury securities 37,789 22 — 37,811 Commercial paper 6,446 — — 6,446 Total $ 66,817 $ 25 $ (9) $ 66,833 Reported as: Short-term investments $ 66,817 $ 25 $ (9) $ 66,833 Total $ 66,817 $ 25 $ (9) $ 66,833

Inventory (Tables)

Inventory (Tables)	3 Months Ended
	Mar. 31, 2020
Inventory Disclosure [Abstract]
Schedule of inventory	Inventory consists of the following (in thousands): March 31, 2020 December 31, 2019 Raw materials $ 976 $ 1,057 Work-in-process 2,459 1,925 Finished goods 1,946 2,285 Total inventory $ 5,381 $ 5,267

Long-term Debt (Tables)

Long-term Debt (Tables)	3 Months Ended
	Mar. 31, 2020
Debt Disclosure [Abstract]
Schedule of payment obligations under the Royalty-Backed Loan	Payment obligations under the Royalty-Backed Loan are as follows (in thousands): March 31, 2020 December 31, 2019 Total repayment obligation $ 200,000 $ 200,000 Less: Interest to be accreted in future periods (59,593) (63,217) Less: Payments made (11,110) (9,068) Carrying value of loans payable $ 129,297 $ 127,715 Less: Current portion of long-term debt (3,232) (2,041) Non-current portion of long-term debt $ 126,065 $ 125,674

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	3 Months Ended
	Mar. 31, 2020
Equity [Abstract]
Schedule of shares of Company's common stock reserved for future issuance	Shares of the Company’s common stock reserved for future issuance are as follows: March 31, 2020 December 31, 2019 Common stock awards issued and outstanding 7,453,298 6,874,633 Authorized for future issuance under 2014 Equity Incentive Plan 2,793,564 2,376,613 Authorized for future issuance under 2016 Inducement Plan 615,817 236,269 Employee stock purchase plan 1,206,591 926,943 Total 12,069,270 10,414,458

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2020
Share-based Payment Arrangement [Abstract]
Schedule of allocation of total stock-based compensation expense	The following table reflects stock-based compensation expense recognized for the three months ended March 31, 2020 and 2019 (in thousands): Three Months Ended 2020 2019 Research and development $ 86 $ 590 Selling, general and administrative 1,395 2,794 Total stock-based compensation expense $ 1,481 $ 3,384

Net Loss Per Share (Tables)

Net Loss Per Share (Tables)	3 Months Ended
	Mar. 31, 2020
Earnings Per Share [Abstract]
Schedule of outstanding shares of potentially dilutive securities excluded from the computation of diluted net loss per share of common stock, because including them would have been anti-dilutive	The following total outstanding shares of potentially dilutive securities were excluded from the computation of diluted net loss per share for the periods presented, because including them would have been anti-dilutive (in thousands): Three Months Ended 2020 2019 Options to purchase common stock 5,789 5,741 Restricted stock units 1,664 808 Total 7,453 6,549

Description of Business (Detail

Description of Business (Details)	3 Months Ended
	Mar. 31, 2020segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of operating segments	1

Basis of Presentation and Sum_3

Basis of Presentation and Summary of Significant Accounting Policies (Details) - USD ($)	1 Months Ended		3 Months Ended		12 Months Ended
	Jan. 31, 2018	May 31, 2017	Mar. 31, 2020	Sep. 30, 2018	Dec. 31, 2017	Nov. 30, 2019
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Proceeds from public offerings, net of offering costs	$ 134,300,000
Cash, cash equivalents, and investments			$ 115,300,000
HCRP | Royalty-backed loan agreement
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Proceeds from issuance of debt		$ 35,000,000		$ 65,000,000	$ 100,000,000
Cowen
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
At-the-market offering, aggregate offering price (up to)						$ 50,000,000
Sale of shares under the sales agreement (in shares)			0

Fair Value Measurements - Finan

Fair Value Measurements - Financial Assets and Liabilities Which Require Fair Value Measurement (Details) - Recurring basis - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Assets:
Total assets measured at fair value	$ 91,485	$ 99,035
Liabilities:
Total liabilities measured at fair value	2,498	2,157
Embedded derivative liability
Liabilities:
Total liabilities measured at fair value	2,498	2,157
Level 1
Assets:
Total assets measured at fair value	21,744	27,720
Liabilities:
Total liabilities measured at fair value	0	0
Level 1 | Embedded derivative liability
Liabilities:
Total liabilities measured at fair value	0	0
Level 2
Assets:
Total assets measured at fair value	69,741	71,315
Liabilities:
Total liabilities measured at fair value	0	0
Level 2 | Embedded derivative liability
Liabilities:
Total liabilities measured at fair value	0	0
Level 3
Assets:
Total assets measured at fair value	0	0
Liabilities:
Total liabilities measured at fair value	2,498	2,157
Level 3 | Embedded derivative liability
Liabilities:
Total liabilities measured at fair value	2,498	2,157
Money market
Assets:
Total assets measured at fair value	21,744	27,720
Money market | Level 1
Assets:
Total assets measured at fair value	21,744	27,720
Money market | Level 2
Assets:
Total assets measured at fair value	0	0
Money market | Level 3
Assets:
Total assets measured at fair value	0	0
Corporate debt
Assets:
Total assets measured at fair value	25,621	22,576
Corporate debt | Level 1
Assets:
Total assets measured at fair value	0	0
Corporate debt | Level 2
Assets:
Total assets measured at fair value	25,621	22,576
Corporate debt | Level 3
Assets:
Total assets measured at fair value	0	0
U.S. Treasury securities
Assets:
Total assets measured at fair value	39,649	37,811
U.S. Treasury securities | Level 1
Assets:
Total assets measured at fair value	0	0
U.S. Treasury securities | Level 2
Assets:
Total assets measured at fair value	39,649	37,811
U.S. Treasury securities | Level 3
Assets:
Total assets measured at fair value	0	0
Commercial paper
Assets:
Total assets measured at fair value	4,471	10,928
Commercial paper | Level 1
Assets:
Total assets measured at fair value	0	0
Commercial paper | Level 2
Assets:
Total assets measured at fair value	4,471	10,928
Commercial paper | Level 3
Assets:
Total assets measured at fair value	$ 0	$ 0

Fair Value Measurements - Narra

Fair Value Measurements - Narrative (Details) - Level 3 - Embedded derivative liability	Mar. 31, 2020
Measurement Input, Discount Rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	0.215
Measurement Input, Change In Control Probability
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	0.030

Fair Value Measurements - Chang

Fair Value Measurements - Changes in Estimated Fair Value of Embedded Derivative (Details) - Level 3 - Long-term debt with embedded derivative - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	$ 2,157	$ 1,352
Change in fair value included in interest and other income, net	341	101
Ending balance	$ 2,498	$ 1,453

Investments (Details)

Investments (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Available-for-sale securities
Amortized Cost	$ 69,668	$ 66,817
Gross Unrealized Gains	179	25
Gross Unrealized Losses	(106)	(9)
Fair Value	69,741	66,833
Short-term investments
Available-for-sale securities
Amortized Cost	69,668	66,817
Gross Unrealized Gains	179	25
Gross Unrealized Losses	(106)	(9)
Fair Value	69,741	66,833
Accrued interest	$ 200	$ 400
Long-term investments | Maximum
Available-for-sale securities
Maturity of long term investment	12 months	12 months
Corporate debt
Available-for-sale securities
Amortized Cost	$ 25,727	$ 22,582
Gross Unrealized Gains	0	3
Gross Unrealized Losses	(106)	(9)
Fair Value	25,621	22,576
U.S. Treasury securities
Available-for-sale securities
Amortized Cost	39,470	37,789
Gross Unrealized Gains	179	22
Gross Unrealized Losses	0	0
Fair Value	39,649	37,811
Commercial paper
Available-for-sale securities
Amortized Cost	4,471	6,446
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Fair Value	$ 4,471	$ 6,446

Inventory (Details)

Inventory (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Inventory Disclosure [Abstract]
Provision for write-down of inventory	$ 289	$ 0
Raw materials	976		$ 1,057
Work-in-process	2,459		1,925
Finished goods	1,946		2,285
Total inventory	$ 5,381		$ 5,267

License Agreements (Details)

License Agreements (Details) - USD ($)	1 Months Ended	3 Months Ended
	Nov. 30, 2012	Mar. 31, 2020	Mar. 31, 2019
License Agreements
Period describing the commercial launch of dose		15 years
License agreement
License Agreements
Upfront payment received	$ 65,000,000
Maximum total additional cash payments receivable upon achievement of certain development and regulatory milestones	$ 95,000,000
Prosecution and litigation cost		$ 0	$ 0

Commitments and Contingencies -

Commitments and Contingencies - Litigation and Other Legal Proceedings (Details) $ in Billions	Mar. 31, 2020USD ($)claim
Loss Contingencies [Line Items]
Number of legal claims | claim	0
Qui Tam Complaint | Pending Litigation | Unfavorable Regulatory Action
Loss Contingencies [Line Items]
Claim for damages (potentially more than) | $	$ 2.5

Long-term Debt - Narrative (Det

Long-term Debt - Narrative (Details) - HCRP - Royalty-backed loan agreement - USD ($)	1 Months Ended	3 Months Ended			12 Months Ended
	May 31, 2017	Mar. 31, 2020	Mar. 31, 2019	Sep. 30, 2018	Dec. 31, 2017	Dec. 31, 2018
Debt Instrument [Line Items]
Proceeds from issuance of debt	$ 35,000,000			$ 65,000,000	$ 100,000,000
Percentage revenue interest of future net sales	12.50%
Quarterly royalty payment (up to)	$ 15,000,000
Royalty percentage of future net sales	6.25%
Royalty trail cap, percentage of face amount	200.00%
Voluntary prepay election, amount due, percentage of funded amount	200.00%
Interest rate, stated percentage	11.00%
Unpaid interest payment added to principal amount, term	2 years 3 months
Contingent consideration, asset						$ 65,000,000
Lender expense	$ 400,000
Payment of debt issuance costs	$ 800,000
Interest expense		$ 3,600,000	$ 3,700,000
Effective interest rate		13.40%
Level 3
Debt Instrument [Line Items]
Long-term debt, fair value		$ 97,600,000
December 2021
Debt Instrument [Line Items]
Royalty percentage of future net sales if principal and interest payments below minimum specified levels (up to)	17.50%
December 2022
Debt Instrument [Line Items]
Royalty percentage of future net sales if principal and interest payments below minimum specified levels (up to)	22.50%

Long-term Debt - Long-term Debt

Long-term Debt - Long-term Debt and Unamortized Debt Discount Balances (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Debt Instrument [Line Items]
Less: Current portion of long-term debt	$ (3,232)	$ (2,041)
Long-term debt	126,065	125,674
HCRP | Royalty-backed loan agreement
Debt Instrument [Line Items]
Total repayment obligation	200,000	200,000
Less: Interest to be accreted in future periods	(59,593)	(63,217)
Less: Payments made	(11,110)	(9,068)
Carrying value of loans payable	129,297	127,715
Less: Current portion of long-term debt	(3,232)	(2,041)
Long-term debt	$ 126,065	$ 125,674

Stockholders' Equity (Details)

Stockholders' Equity (Details)	3 Months Ended
	Mar. 31, 2020USD ($)voteshares	Dec. 31, 2019shares	Nov. 30, 2019USD ($)
Shareholders' Equity
Authorized shares of common stock (in shares)	100,000,000	100,000,000
Dividends declared | $	$ 0
Number of votes per share | vote	1
Total common stock reserved for future issuance (in shares)	12,069,270	10,414,458
Cowen
Shareholders' Equity
At-the-market offering, aggregate offering price (up to) | $			$ 50,000,000
At-the-market offering, commission as a percentage of gross proceeds (up to)			3.00%
Sale of shares under the sales agreement (in shares)	0
Employee Stock Purchase Plan
Shareholders' Equity
Total common stock reserved for future issuance (in shares)	1,206,591	926,943
Stock options
Shareholders' Equity
Total common stock reserved for future issuance (in shares)	7,453,298	6,874,633
Stock options | 2014 Equity Incentive Plan
Shareholders' Equity
Authorized for future issuance (in shares)	2,793,564	2,376,613
Stock options | 2016 Inducement Plan
Shareholders' Equity
Authorized for future issuance (in shares)	615,817	236,269

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) - USD ($) $ in Thousands	1 Months Ended		3 Months Ended
	Feb. 29, 2020	Jan. 31, 2020	Mar. 31, 2020	Mar. 31, 2019
Stock Option Plans
Stock-based compensation capitalized in inventory			$ 108	$ 26
Employee Stock Purchase Plan
Stock Option Plans
Increase in common stock reserved for issuance as a percentage of total number of shares of the Company's capital stock outstanding on the last day of the preceding fiscal year		1.00%
Increase in common stock available for issuance (in shares)		279,648
2014 Equity Incentive Plan
Stock Option Plans
Increase in common stock reserved for issuance as a percentage of total number of shares of the Company's capital stock outstanding on the last day of the preceding fiscal year		4.00%
Increase in common stock available for issuance (in shares)		1,118,591
2016 Inducement Plan
Stock Option Plans
Company’s additional common stock available for issuance (in shares)	450,000

Stock-Based Compensation - Inco

Stock-Based Compensation - Income Statement Location (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Stock-based compensation expense
Stock-based compensation expense	$ 1,481	$ 3,384
Research and development
Stock-based compensation expense
Stock-based compensation expense	86	590
Selling, general and administrative
Stock-based compensation expense
Stock-based compensation expense	$ 1,395	$ 2,794

Net Loss Per Share (Details)

Net Loss Per Share (Details) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive securities (in shares)	7,453	6,549
Options to purchase common stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive securities (in shares)	5,789	5,741
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive securities (in shares)	1,664	808