Aerie Pharmaceuticals (AERI) 10-Q 5 May 22 2022 Q1 Quarterly report Financial data

Cover

Cover - shares	3 Months Ended
	Mar. 31, 2022	Apr. 29, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2022
Document Transition Report	false
Entity File Number	001-36152
Entity Registrant Name	Aerie Pharmaceuticals, Inc.
Entity Incorporation, State	DE
Entity Tax Identification Number	20-3109565
Entity Address, Street Address	4301 Emperor Boulevard, Suite 400
Entity Address, City	Durham
Entity Address, State	NC
Entity Address, Postal Zip Code	27703
City Area Code	919
Local Phone Number	237-5300
Title of 12(b) Security	Common Stock, par value $0.001 per share
Trading Symbol	AERI
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (in shares)		48,622,987
Amendment Flag	false
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q1
Entity CIK	0001337553
Current Fiscal Year End Date	--12-31

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Current assets
Cash and cash equivalents	$ 56,441	$ 37,187
Short-term investments	138,807	102,614
Accounts receivable, net	63,617	68,828
Inventory	40,190	40,410
Licensing receivable	0	90,000
Prepaid expenses and other current assets	17,911	16,611
Total current assets	316,966	355,650
Long-term investments	3,985	0
Property, plant and equipment, net	51,226	51,472
Operating lease right-of-use assets	21,916	22,669
Other assets	1,453	1,600
Total assets	395,546	431,391
Current liabilities
Accounts payable	7,877	8,285
Accrued expenses and other current liabilities	102,950	112,341
Operating lease liabilities	4,464	4,365
Total current liabilities	115,291	124,991
Convertible notes, net	311,678	234,527
Deferred revenue, non-current	70,000	64,315
Operating lease liabilities, non-current	21,033	21,751
Other non-current liabilities	3,256	3,140
Total liabilities	521,258	448,724
Commitments and contingencies (Note 12)
Stockholders’ deficit
Preferred stock, $0.001 par value; 15,000,000 shares authorized as of March 31, 2022 and December 31, 2021; none issued and outstanding	0	0
Common stock, $0.001 par value; 150,000,000 shares authorized as of March 31, 2022 and December 31, 2021; 48,635,700 and 48,444,473 shares issued and outstanding as of March 31, 2022 and December 31, 2021, respectively	48	48
Additional paid-in capital	1,016,510	1,136,656
Accumulated other comprehensive loss	(430)	(126)
Accumulated deficit	(1,141,840)	(1,153,911)
Total stockholders’ deficit	(125,712)	(17,333)
Total liabilities and stockholders’ deficit	$ 395,546	$ 431,391

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Mar. 31, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	15,000,000	15,000,000
Preferred stock, issued (in shares)	0	0
Preferred stock, outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	150,000,000	150,000,000
Common stock, shares issued (in shares)	48,635,700	48,444,473
Common stock, shares outstanding (in shares)	48,635,700	48,444,473

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Income Statement [Abstract]
Total revenues, net	$ 29,835	$ 22,970
Costs and expenses:
Cost of goods sold	6,780	6,700
Selling, general and administrative	31,524	32,598
Research and development	25,174	17,891
Total costs and expenses	63,478	57,189
Loss from operations	(33,643)	(34,219)
Other expense, net	(1,555)	(7,714)
Loss before income taxes	(35,198)	(41,933)
Income tax expense	693	31
Net loss	$ (35,891)	$ (41,964)
Net loss per common share—basic (in dollars per share)	$ (0.76)	$ (0.91)
Net loss per common share—diluted (in dollars per share)	$ (0.76)	$ (0.91)
Weighted average number of common shares outstanding—basic (in shares)	47,520,045	46,109,080
Weighted average number of common shares outstanding—diluted (in shares)	47,520,045	46,109,080
Net loss	$ (35,891)	$ (41,964)
Unrealized loss on available-for-sale investments, net	(304)	(12)
Comprehensive loss	$ (36,195)	$ (41,976)
Revenue from Contract with Customer, Product and Service [Extensible Enumeration]	Product [Member]

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Stockholders' (Deficit) Equity (Unaudited) - USD ($) $ in Thousands	Total	Cumulative Effect, Period of Adoption, Adjustment	COMMON STOCK	ADDITIONAL PAID-IN CAPITAL	ADDITIONAL PAID-IN CAPITALCumulative Effect, Period of Adoption, Adjustment	ACCUMULATED OTHER COMPREHENSIVE LOSS	ACCUMULATED DEFICIT	ACCUMULATED DEFICITCumulative Effect, Period of Adoption, Adjustment
Beginning balance (in shares) at Dec. 31, 2020			46,821,644
Beginning balance at Dec. 31, 2020	$ 23,968		$ 47	$ 1,103,074		$ (52)	$ (1,079,101)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock upon exercise of stock options and warrants (in shares)			62,016
Issuance of common stock upon exercise of stock options and warrants	26			26
Issuance of common stock for restricted stock awards, net (in shares)			10,162
Issuance of common stock for restricted stock awards, net	(1,127)			(1,127)
Stock-based compensation	8,741			8,741
Other comprehensive income (loss)	(12)					(12)
Net loss	(41,964)						(41,964)
Ending balance (in shares) at Mar. 31, 2021			46,893,822
Ending balance at Mar. 31, 2021	(10,368)		$ 47	1,110,714		(64)	(1,121,065)
Beginning balance (in shares) at Dec. 31, 2020			46,821,644
Beginning balance at Dec. 31, 2020	23,968		$ 47	1,103,074		(52)	(1,079,101)
Ending balance (in shares) at Dec. 31, 2021			48,444,473
Ending balance at Dec. 31, 2021	$ (17,333)	$ (76,704)	$ 48	1,136,656	$ (124,666)	(126)	(1,153,911)	$ 47,962
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Accounting Standards Update [Extensible Enumeration]	Accounting Standards Update 2020-06
Issuance of common stock for restricted stock awards, net (in shares)			191,227
Issuance of common stock for restricted stock awards, net	$ (358)			(358)
Stock-based compensation	4,878			4,878
Other comprehensive income (loss)	(304)					(304)
Net loss	(35,891)						(35,891)
Ending balance (in shares) at Mar. 31, 2022			48,635,700
Ending balance at Mar. 31, 2022	$ (125,712)		$ 48	$ 1,016,510		$ (430)	$ (1,141,840)

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Cash flows from operating activities
Net loss	$ (35,891)	$ (41,964)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation	1,604	1,499
Amortization and accretion	2,007	7,408
Stock-based compensation	4,632	8,749
Other non-cash	(50)	1,116
Changes in operating assets and liabilities
Accounts receivable, net	5,211	9,872
Inventory	538	(1,052)
Prepaid, current and other assets	(1,211)	(4,286)
Licensing receivable	90,000	0
Accounts payable, accrued expenses and other current liabilities	(9,517)	(10,297)
Operating lease liabilities	(1,097)	(1,846)
Deferred revenue	5,685	747
Net cash provided by (used in) operating activities	61,911	(30,054)
Cash flows from investing activities
Purchase of available-for-sale investments	(70,308)	(25,236)
Proceeds from sales and maturities of investments	29,605	28,288
Purchase of property, plant and equipment	(1,597)	(772)
Net cash (used in) provided by investing activities	(42,300)	2,280
Cash flows from financing activities
Payments related to issuance of stock for stock-based compensation arrangements, net	(357)	(1,101)
Net cash used in financing activities	(357)	(1,101)
Net change in cash and cash equivalents	19,254	(28,875)
Cash and cash equivalents, at beginning of period	37,187	151,570
Cash and cash equivalents, at end of period	56,441	122,695
Non-cash investing and financing activities
Purchase of property, plant and equipment in accounts payable and accrued expenses and other current liabilities	$ 742	$ 182

The Company

The Company	3 Months Ended
	Mar. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
The Company	The Company Aerie Pharmaceuticals, Inc. (“Aerie”), with its wholly-owned subsidiaries, Aerie Distribution, Inc., Aerie Pharmaceuticals Limited, Aerie Pharmaceuticals Ireland Limited and Avizorex Pharma S.L. (“Aerie Distribution,” “Aerie Limited,” “Aerie Ireland Limited” and “Avizorex,” respectively, together with Aerie, the “Company”), is a pharmaceutical company focused on the discovery, development and commercialization of first-in-class ophthalmic therapies for the treatment of patients with eye diseases and conditions including open-angle glaucoma, dry eye, diabetic macular edema (“DME”) and wet age-related macular degeneration (“AMD”). The Company has its principal executive offices in Durham, North Carolina, and operates as one business segment. U.S. Commercialization of the Glaucoma Franchise The Company has developed and commercialized two U.S. Food and Drug Administration (“FDA”) approved products, Rhopressa ® (netarsudil ophthalmic solution) 0.02% (“Rhopressa ® ”) and Rocklatan ® (netarsudil/latanoprost ophthalmic solution) 0.02%/0.005% (“Rocklatan ® ”), which are sold in the United States and comprise its glaucoma franchise. Rhopressa ® is a once-daily eye drop designed to reduce elevated intraocular pressure (“IOP”) in patients with open-angle glaucoma or ocular hypertension. Rocklatan ® is a once-daily fixed-dose combination of Rhopressa ® and latanoprost, a commonly prescribed drug for the treatment of patients with open-angle glaucoma or ocular hypertension. The Company is commercializing Rhopressa ® , which was launched in the United States in April 2018, and Rocklatan ® , which was launched in the United States in May 2019. In March 2022, the Company commenced a Phase 4 program that was designed to further demonstrate that Rocklatan ® is a highly effective single bottle, once daily therapy. Efforts Outside the United States In addition to actively promoting Rhopressa ® and Rocklatan ® in the United States, the Company is also developing business opportunities outside of the United States and has made progress in its efforts to commercialize Rhopressa ® and Rocklatan ® in Europe, Japan and other regions of the world . The Company partnered and has collaboration agreements in place with Santen Pharmaceuticals Co., Ltd. (“Santen Pharmaceuticals”) and Santen SA (“Santen SA” and, together with Santen Pharmaceuticals, “Santen”) to develop and commercialize its products in Japan and South Korea, Indonesia, Malaysia, Philippines, Singapore, Thailand, Vietnam and Taiwan (collectively, “East Asia”), as well as Europe, China, India, the Middle East, Commonwealth of Independent States (“CIS”), Africa, parts of Latin America and the Oceania countries. The initial Collaboration and License Agreement with Santen was executed in October 2020 (the “First Santen Agreement”) to advance the Company’s clinical development and ultimately commercialize Rhopressa ® and Rocklatan ® in Japan and East Asia. The second Collaboration and License Agreement with Santen (the “Second Santen Agreement” and, together with the First Santen Agreement, the “Santen Agreements”) was executed in December 2021 to develop and commercialize Rhopressa ® and Rocklatan ® in Europe, China, India, the Middle East, CIS, Africa, parts of Latin America and the Oceania countries. See Note 3 for additional information. In Europe, Rhopressa ® and Rocklatan ® will be marketed under the names Rhokiinsa ® and Roclanda ® , respectively. Rhokiinsa ® and Roclanda ® were granted a Centralised Marketing Authorisation (“Centralised MA”) by the European Commission (“EC”) in November 2019 and January 2021, respectively. In April 2021, Roclanda ® received marketing authorisation from the Medicines and Healthcare Products Regulatory Agency (“MHRA”) in Great Britain. In Japan, in October 2021, the Company reported positive topline results for its Phase 3 clinical trial of netarsudil ophthalmic solution 0.02% (“netarsudil 0.02%”), the first of three expected Phase 3 clinical trials in Japan. A second, confirmatory Phase 3 study, required for approval in Japan, is currently underway. Santen is taking the lead on next steps in preparation for registration in Japan under the terms of the First Santen Agreement. Clinical trials for Rocklatan ® in Japan have not yet begun . Glaucoma Product Manufacturing The Company has a sterile fill manufacturing facility in Athlone, Ireland (“Athlone plant”), for the production of its FDA approved products and clinical supplies. In addition, the Athlone plant has also manufactured clinical supplies of Rhopressa ® for the Phase 3 clinical trials in Japan as well as registration batches to support product approval in Japan. Product Candidates in Development The Company is furthering the development of its product candidates focused on dry eye and retinal diseases as described below. Dry Eye Program The Company is developing AR-15512 ophthalmic solution for the treatment of patients with dry eye disease. The active ingredient in AR-15512 is a potent and selective agonist of the TRPM8 ion channel, a cold sensor and osmolarity sensor that regulates tear production and blink rate. In addition, activating the TRPM8 receptor may reduce ocular discomfort by promoting a cooling sensation. In September 2021, the Company reported topline results of its Phase 2b clinical study, named COMET-1, for AR-15512. The Company completed a dose ranging study evaluating two concentrations of AR-15512 (0.0014% and 0.003%) in a 90-day trial with 369 subjects. The COMET-1 clinical study achieved statistical significance for multiple pre-specified and validated signs and symptoms. The greatest efficacy was demonstrated with the higher concentration 0.003% formulation, which the Company plans to advance to Phase 3 studies. The study did not achieve statistical significance at the pre-determined primary endpoints at Day 28. The Company gained alignment with the FDA in the first quarter of 2022 on the results of the Phase 2b clinical trial and confirmed the design of the Phase 3 registrational trials. Retina Program The Company is currently developing two sustained-release implants focused on retinal diseases, AR-1105 and AR-14034 SR. For AR-1105, a dexamethasone steroid implant, the Company completed a Phase 2 clinical trial for patients with macular edema due to retinal vein occlusion (“RVO”) in July 2020 and reported topline results indicating sustained efficacy of up to six months. The preclinical sustained-release implant AR-14034 SR is being designed to deliver the active ingredient axitinib, a potent small molecule pan vascular endothelial growth factor (“VEGF”) receptor inhibitor. AR-14034 SR has the potential to provide a duration of effect of approximately one year with a once per-year injection. It may potentially be used to treat DME, wet AMD and related diseases of the retina. Liquidity The Company’s activities prior to the commercial launch of Rhopressa ® had primarily consisted of developing product candidates, raising capital and performing research and development activities. The Company has incurred losses and experienced negative operating cash flows since inception. The Company had previously funded its operations primarily through the sale of equity securities and issuance of convertible notes prior to generating product revenues. In September 2019, the Company issued an aggregate principal amount of $316.25 million of 1.50% convertible senior notes due October 2024 (the “Convertible Notes”). See Note 10 for additional information. Further, the Company entered into the First Santen Agreement and Second Santen Agreement in October 2020 and December 2021, respectively, pursuant to which Santen made upfront payments of $50.0 million and $88.0 million, respectively. In December 2021, the Company also earned a $2.0 million supplemental upfront payment associated with the Second Santen Agreement. Total aggregate upfront payments of $90.0 million associated with the Second Santen Agreement (the “Second Santen Agreement Upfront Payment”) were received in January 2022. See Note 3 for additional information. As of March 31, 2022, the Company had $199.2 million in cash, cash equivalents and investments. The Company believes that its cash, cash equivalents and investments and projected cash flows from revenues, will provide sufficient resources to support its operations, including interest payments for its Convertible Notes, through at least the next twelve months from the date of this filing. The Company expects to incur ongoing operating losses until such a time when Rhopressa ® or Rocklatan ® or any current or future product candidates, if approved, generate sufficient cash flows for the Company to achieve profitability. Accordingly, the Company may be required to obtain further funding through debt or equity offerings or other sources. In addition, the Company continues to evaluate collaboration and licensing opportunities related to its product candidates in development. Adequate additional funding may not be available to the Company on acceptable terms, or at all. If the Company is unable to raise capital when needed or on acceptable terms, it may be forced to delay, reduce or eliminate its research and development programs or commercialization and manufacturing efforts.

Significant Accounting Policies

Significant Accounting Policies	3 Months Ended
	Mar. 31, 2022
Accounting Policies [Abstract]
Significant Accounting Policies	Significant Accounting Policies Basis of Presentation The Company’s interim condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). In the opinion of management, the Company has made all necessary adjustments, which include normal recurring adjustments necessary for a fair statement of the Company’s condensed consolidated financial position and results of operations for the interim periods presented. Certain information and disclosures normally included in the annual consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. These interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes for the year ended December 31, 2021 included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on February 25, 2022. The results for the three months ended March 31, 2022 are not necessarily indicative of the results to be expected for a full year, any other interim periods or any future year or period. Principles of Consolidation The interim condensed consolidated financial statements include the accounts of Aerie and its wholly-owned subsidiaries. All intercompany accounts, transactions and profits have been eliminated in consolidation. Use of Estimates The preparation of condensed 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 and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and reported amounts of income and expenses during the reporting periods. Significant items subject to such estimates and assumptions include revenue recognition, leases, acquisitions, stock-based compensation and fair value measurements. On March 11, 2020, the World Health Organization declared the coronavirus (“COVID-19”) outbreak a pandemic. The COVID-19 pandemic continues to evolve, which the Company considered in its critical and significant accounting estimates as future developments continue to be uncertain, including as a result of new information that may emerge concerning COVID-19 and its variants and the actions taken to contain or treat it, as well as the economic impact on eye-care professionals, patients, third parties and markets. Actual results could differ from the Company’s estimates. Adoption of New Accounting Standards In August 2020, the Financial Accounting Standards Board (“FASB”) issued ASU 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity's Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity's Own Equity (“ASU 2020-06”). This ASU simplifies the complexity associated with applying GAAP for certain financial instruments with characteristics of liabilities and equity. More specifically, the amendments focus on the guidance for convertible instruments and the derivative scope exception for contracts in an entity’s own equity. Under ASU 2020-06, the embedded conversion features are no longer separated from the host contract for convertible instruments with conversion features that are not required to be accounted for as derivatives under Topic 815, or that do not result in substantial premiums accounted for as paid-in capital. Consequently, a convertible debt instrument, such as the Convertible Notes, will be accounted for as a single liability measured at its amortized cost, as long as no other features require bifurcation and recognition as derivatives. The new guidance also requires the if-converted method to be applied for all convertible instruments and requires additional disclosures. The guidance became effective for the Company beginning on January 1, 2022, and was applied using a modified retrospective approach through a cumulative-effect adjustment to retained earnings as of the effective date. As such, financial results reported in prior periods were not adjusted. The impact of adopting ASU 2020-06 on January 1, 2022, was comprised of a $124.7 million decrease to additional paid-in capital, a $76.7 million increase to convertible notes, net to reduce debt discounts and a $48.0 million decrease to accumulated deficit. Upon adoption of ASU 2020-06, the Company’s interest expense, recognized as a component of other expense, net in its condensed consolidated statements of operations and comprehensive loss, will decrease which primarily relates to no longer recognizing non-cash interest expense from the discount amortization, partially offset by an increase in amortization of debt issuance costs. See Note 10 for additional information. Recently Issued Accounting Standards There have been no new accounting pronouncements issued since the filing of the Annual Report on Form 10-K for the year ended December 31, 2021 that are expected to materially impact the Company’s consolidated financial statements. Net Loss per Common Share Basic net loss per common share (“Basic EPS”) is calculated by dividing the net loss by the weighted average number of shares of common stock outstanding for the period, without consideration for potentially dilutive securities. Diluted net loss per share (“Diluted EPS”) gives effect to all dilutive potential shares of common stock outstanding during this period. For Diluted EPS, net loss used in calculating Basic EPS may be adjusted for certain items related to the dilutive securities. For all periods presented, Aerie’s potential common stock equivalents have been excluded from the computation of Diluted EPS as their inclusion would have had an anti-dilutive effect. The potential common stock equivalents that have been excluded from the computation of Diluted EPS consist of the following: THREE MONTHS ENDED 2022 2021 Convertible Notes (1) 12,662,650 — Outstanding stock options 6,711,485 8,720,368 Non-vested restricted stock awards 1,077,745 714,005 Non-vested restricted stock units 151,282 95,238 Total 20,603,162 9,529,611 (1) Upon adoption of ASU 2020-06 on January 1, 2022, the if-converted method is applied to the Convertible Notes in the calculation of earnings per share. Prior to the adoption of ASU 2020-06, the Company did not include the conversion value of the Convertible Notes in the diluted earnings per share computation.

Revenue Recognition

Revenue Recognition	3 Months Ended
	Mar. 31, 2022
Revenue from Contract with Customer [Abstract]
Revenue Recognition	Revenue Recognition Product Revenues Net product revenues for the three months ended March 31, 2022 and 2021 were generated from sales of Rhopressa ® and Rocklatan ® , the Company’s glaucoma franchise products, which were commercially launched in the United States in April 2018 and May 2019, respectively. Aerie’s customers include a limited number of national and select regional wholesalers (the “distributors”). For the three months ended March 31, 2022, three distributors accounted for 38%, 35% and 26% of total revenues, respectively. For the three months ended March 31, 2021, three distributors accounted for 36%, 30% and 33% of total revenues, respectively. Product affordability for the patient drives consumer acceptance, and this is generally managed through coverage by third-party payers, such as government or private healthcare insurers and pharmacy benefit managers (“Third-party Payers”) and such product may be subject to rebates and discounts payable directly to those Third-party Payers. Product revenues are recorded net of trade discounts, allowances, rebates, chargebacks, estimated returns and other incentives in the condensed consolidated statements of operations and comprehensive loss, discussed below. These reserves are classified as either reductions of accounts receivable or as current liabilities in the condensed consolidated balance sheets. Amounts billed or invoiced are included in accounts receivable, net on the condensed consolidated balance sheets. The Company did not have any contract assets (unbilled receivables) as of March 31, 2022 or December 31, 2021, as customer invoicing generally occurs before or at the time of revenue recognition. The Company did not have any contract liabilities as of March 31, 2022 or December 31, 2021, as the Company did not receive payments in advance of fulfilling its performance obligations to its customers. The Company calculates its net product revenues based on the wholesale acquisition cost that the Company charges its distributors for Rhopressa ® and Rocklatan ® less provisions for (i) trade discounts and allowances, such as discounts for prompt payment and distributor fees, (ii) estimated rebates to Third-party Payers, estimated payments for Medicare Part D prescription drug program coverage gap (commonly called the “donut hole”), patient co-pay program coupon utilization, chargebacks and other discount programs and (iii) reserves for expected product returns. Provisions for revenue reserves reduced product reve nues by $63.8 million and $50.8 million in aggregate for the three months ended March 31, 2022 and 2021, respectively, a significant portion of which related to commercial and Medicare Part D rebates. Trade Discounts and Allowances : The Company generally provides discounts on sales of Rhopressa ® and Rocklatan ® to its distributors for prompt payment and pays fees for distribution services and for certain data that distributors provide to the Company. The Company expects its distributors to earn these discounts and fees, and accordingly deducts the full amount of these discounts and fees from its gross product revenues at the time such revenues are recognized. Rebates, Chargebacks and Other Discounts : The Company contracts with Third-party Payers for coverage and reimbursement of Rhopressa ® and Rocklatan ® . The Company estimates the rebates, donut hole and chargebacks it expects to be obligated to provide to Third-party Payers and deducts these estimated amounts from its gross product revenue at the time the revenue is recognized. The Company estimates the rebates, donut hole and chargebacks that it expects to be obligated to provide to Third-party Payers based upon (i) the Company's contracts and applicable negotiations with these Third-party Payers, (ii) estimates regarding the payer mix for Rhopressa ® and Rocklatan ® based on utilization of both third-party and the Company’s historical data, (iii) inventory held by distributors and (iv) estimates of inventory held at the retail channel. Other discounts include the Company’s co-pay assistance coupon programs for commercially-insured patients meeting certain eligibility requirements. The calculation of the accrual for co-pay assistance is based on an estimate of claims and the cost per claim that the Company expects to pay associated with product that has been recognized as revenue. Product Returns : The Company estimates the amount of Rhopressa ® and Rocklatan ® that will be returned and deducts these estimated amounts from its gross revenue at the time the revenue is recognized. The Company currently estimates product returns based on historical information regarding returns of Rhopressa ® and Rocklatan ® as well as historical industry information regarding rates for comparable pharmaceutical products and product portfolios, the estimated remaining shelf life of Rhopressa ® and Rocklatan ® shipped to distributors, and contractual agreements with the Company's distributors intended to limit the amount of inventory they maintain. Reporting from the distributors includes distributor sales and inventory held by distributors, which provides the Company with visibility into the distribution channel to determine when the product would be eligible to be returned. Santen Collaboration and License Agreements Second Santen Agreement In December 2021, Aerie Ireland Limited entered into the Second Santen Agreement with Santen which expands the scope of the First Santen Agreement, entered into in October 2020 . Pursuant to the Second Santen Agreement, Aerie Ireland Limited granted to Santen the exclusive right to develop and commercialize Rhopressa ® and Rocklatan ® (the “Licensed Products”) in Europe, China, India, the Middle East, CIS, Africa, parts of Latin America and the Oceania countries (such jurisdictions collectively, the “Expanded Territories”). The Company is the sole manufacturer of the Licensed Products for Santen and Santen may manufacture, in certain circumstances, upon mutual agreement of both parties. In addition, Aerie Ireland Limited granted Santen a first right of refusal to commercialize the Licensed Products in Canada. Under the agreement, Santen made the Second Santen Agreement Upfront payment in January 2022 to Aerie Ireland Limited which was comprised of an $88.0 million upfront payment and a $2.0 million supplemental upfront payment that was earned based on the achievement of an event that occurred in December 2021. Upon the achievement of certain events, Aerie Ireland Limited will earn various development milestones of up to $15.5 million and sales milestones of up to $60.0 million. In addition, Santen will pay Aerie Ireland Limited a royalty in excess of 25% of the Licensed Products’ net sales in the Expanded Territories, excluding China and India (and in excess of 20% of the Licensed Products’ net sales in China and India), such consideration consisting of the cost of products supplied to Santen from Aerie Ireland Limited and a royalty for the Company’s intellectual property. While the royalty rate decreases when the Licensed Products are manufactured by or on behalf of Santen, there is a guaranteed minimum percentage. The term of the Second Santen Agreement continues on a country-by-country and product-by-product basis until the expiration of the obligation to make payments under the Second Santen Agreement with respect to each Licensed Product in each country or region. The Second Santen Agreement may be terminated by either Aerie Ireland Limited or Santen upon the other party’s material breach, bankruptcy or insolvency. Aerie Ireland Limited may also terminate the agreement upon a patent challenge by Santen or on a country-by-country basis upon a breach by Santen of its obligation to develop, obtain marketing approval of and commercialize the Licensed Products in certain of the Expanded Territories. Santen may terminate the Second Santen Agreement in its discretion if Santen reasonably determines that the Licensed Products are not commercially viable in the Expanded Territory (effective upon 180 days’ prior written notice). In addition, in the event that patents are issued that may prevent the commercialization of the Licensed Products during the three-year period following marketing authorization of Rhopressa ® in China, Santen would have the right to terminate the agreement with respect to China only and require Aerie Ireland Limited to repay $8.0 million of the Second Santen Agreement Upfront Payment. In the event of termination, the Licensed Products in the applicable Expanded Territories will revert to Aerie Ireland Limited. The Company recognized deferred revenue, non-current as of March 31, 2022 and December 31, 2021 as follows: (in thousands) MARCH 31, 2022 DECEMBER 31, 2021 First Santen Agreement: Upfront payment (1) $ 50,000 $ 50,000 Developmental milestones (2) 6,000 — Santen’s portion of shared costs (3) 6,000 6,315 Second Santen Agreement: Upfront payment (4) 8,000 8,000 Total $ 70,000 $ 64,315 (1) While the Company determined that the license was a right to use the Company’s intellectual property and as of the effective date of the First Santen Agreement, the Company had provided all necessary information to Santen to benefit from the license and the license term had begun, revenue was not recognized upon satisfaction of the performance obligation due to the uncertainty around potential termination in the event that patents are issued that may prevent the commercialization of the Licensed Products. The Company will recognize the $50.0 million upfront payment received under the First Santen Agreement, and any other current and potential future development milestones and sales milestones, when it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur. The Company will re-evaluate the transaction price in each reporting period and as uncertain events are resolved or other changes in circumstances occur. (2) In March 2022, Santen made a $6.0 million developmental milestone payment in connection with the First Santen Agreement. (3) This item represents Santen’s portion of shared costs related to conducting the first Rhopressa ® Phase 3 clinical trial in Japan, which commenced in the fourth quarter of 2020, as described above. (4) As of March 31, 2022 and December 31, 2021, the Company recognized $8.0 million of the Second Santen Agreement Upfront Payment as deferred revenue, non-current in its consolidated balance sheet due to the uncertainty around potential termination in China in the event that patents are issued that may prevent the commercialization of the Licensed Products.

Investments

Investments	3 Months Ended
	Mar. 31, 2022
Investments, Debt and Equity Securities [Abstract]
Investments	Investments Cash, cash equivalents and investments as of March 31, 2022 included the following: GROSS GROSS AMORTIZED UNREALIZED UNREALIZED FAIR (in thousands) COST GAINS LOSSES VALUE Cash and cash equivalents: Cash and cash equivalents $ 56,441 $ — $ — $ 56,441 Total cash and cash equivalents $ 56,441 $ — $ — $ 56,441 Investments: Certificates of deposit (due within 1 year) $ 9,044 $ — $ (14) $ 9,030 Commercial paper (due within 1 year) 54,456 — (186) 54,270 Corporate bonds (due within 1 year) 41,747 — (178) 41,569 Corporate bonds (due within 2 years) 4,020 — (35) 3,985 U.S. Government and government agencies (due within 1 year) 33,955 — (17) 33,938 Total investments $ 143,222 $ — $ (430) $ 142,792 Total cash, cash equivalents and investments $ 199,663 $ — $ (430) $ 199,233 Cash, cash equivalents and investments as of December 31, 2021 included the following: GROSS GROSS AMORTIZED UNREALIZED UNREALIZED FAIR (in thousands) COST GAINS LOSSES VALUE Cash and cash equivalents: Cash and cash equivalents $ 37,187 $ — $ — $ 37,187 Total cash and cash equivalents $ 37,187 $ — $ — $ 37,187 Investments: Certificates of deposit (due within 1 year) $ 9,047 $ — $ (9) $ 9,038 Commercial paper (due within 1 year) 50,975 — (55) 50,920 Corporate bonds (due within 1 year) 42,718 — (62) 42,656 Total investments $ 102,740 $ — $ (126) $ 102,614 Total cash, cash equivalents and investments $ 139,927 $ — $ (126) $ 139,801 Interest income earned on the Company’s cash, cash equivalents and investments was $0.1 million in each of the three months ended March 31, 2022 and 2021, respectively . Realized gains or losses were immaterial during the three months ended March 31, 2022 and 2021. As of March 31, 2022 and December 31, 2021, the Company did not hold any equity securities.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2022
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements The following tables summarize the fair value of financial assets and liabilities that are measured at fair value and the classification by level of input within the fair value hierarchy: FAIR VALUE MEASUREMENTS AS OF MARCH 31, 2022 (in thousands) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL Cash and cash equivalents: Cash and cash equivalents $ 56,441 $ — $ — $ 56,441 Total cash and cash equivalents: $ 56,441 $ — $ — $ 56,441 Investments: Certificates of deposit $ — $ 9,030 $ — $ 9,030 Commercial paper — 54,270 — 54,270 Corporate bonds — 45,554 — 45,554 U.S. Government and government agencies — 33,938 — 33,938 Total investments $ — $ 142,792 $ — $ 142,792 Total cash, cash equivalents and investments: $ 56,441 $ 142,792 $ — $ 199,233 FAIR VALUE MEASUREMENTS AS OF DECEMBER 31, 2021 (in thousands) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL Cash and cash equivalents: Cash and cash equivalents $ 37,187 $ — $ — $ 37,187 Total cash and cash equivalents: $ 37,187 $ — $ — $ 37,187 Investments: Certificates of deposit $ — $ 9,038 $ — $ 9,038 Commercial paper — 50,920 — 50,920 Corporate bonds — 42,656 — 42,656 Total investments $ — $ 102,614 $ — $ 102,614 Total cash, cash equivalents and investments: $ 37,187 $ 102,614 $ — $ 139,801 The fair value of the Convertible Notes, which differs from their carrying value, is influenced by interest rates, stock price and stock price volatility and is determined by prices observed in market trading. The market for trading of the Convertible Notes is not considered to be an active market and therefore the estimate of fair value is based on Level 2 inputs. The estimated fair value of the Convertible Notes was $284.8 million and $270.4 million at March 31, 2022 and December 31, 2021, respectively. There were no transfers between the different levels of the fair value hierarchy during the three months ended March 31, 2022 and 2021.

Inventory

Inventory	3 Months Ended
	Mar. 31, 2022
Inventory Disclosure [Abstract]
Inventory	Inventory Inventory consists of the following: (in thousands) MARCH 31, 2022 DECEMBER 31, 2021 Raw materials $ 4,968 $ 5,368 Work-in-process 30,480 30,989 Finished goods 4,742 4,053 Total inventory $ 40,190 $ 40,410 For the three months ended March 31, 2022 and 2021, $3.9 million and $4.4 million, respectively, of production costs associated with underutilized capacity at the Company’s Athlone plant were recorded to costs of goods sold. The underutilization results from the manufacturing plant having not yet reached full capacity as it commenced operations in early 2020.

Property, Plant and Equipment,

Property, Plant and Equipment, Net	3 Months Ended
	Mar. 31, 2022
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment, Net	Property, Plant and Equipment, Net Property, plant and equipment, net consists of the following: (in thousands) MARCH 31, 2022 DECEMBER 31, 2021 Manufacturing equipment $ 22,485 $ 22,464 Laboratory equipment 9,509 9,182 Furniture and fixtures 1,612 1,569 Software, computer and other equipment 7,857 7,779 Leasehold improvements 31,452 31,175 Construction-in-progress 2,703 2,037 Property, plant and equipment 75,618 74,206 Less: Accumulated depreciation (24,392) (22,734) Property, plant and equipment, net $ 51,226 $ 51,472

Leases

Leases	3 Months Ended
	Mar. 31, 2022
Leases [Abstract]
Leases	Leases The Company has operating leases for corporate offices, research and development facilities and a fleet of vehicles. The properties primarily relate to the Company’s principal executive office and research facility located in Durham, North Carolina, regulatory, commercial support and other administrative activities located in Irvine, California, and clinical, finance and legal operations located in Bedminster, New Jersey. The Durham, North Carolina, facility consists of approximately 61,000 square feet of laboratory and office space under a lease that was renewed in the third quarter of 2021 and expires in June 2029. The Irvine, California, location consists of approximately 27,000 square feet of office space under a lease that was renewed in the third quarter of 2021 and expires in October 2027. The Bedminster, New Jersey, location consists of approximately 34,000 square feet of office space under a lease that expires in October 2029. There are also small offices in Ireland, the United Kingdom and Japan. The Company is leasing approximately 30,000 square feet of interior floor space for its manufacturing plant in Athlone, Ireland. The Company is reasonably certain it will remain in the lease through the end of its lease term in 2037, however, the Company is permitted to terminate the lease as early as September 2027. The Company’s operating leases have remaining lease terms of approximately 1 year to 15 years, some of which include options to extend the leases.

Accrued Expenses and Other Curr

Accrued Expenses and Other Current Liabilities	3 Months Ended
	Mar. 31, 2022
Payables and Accruals [Abstract]
Accrued Expenses and Other Current Liabilities	Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consist of the following: (in thousands) MARCH 31, 2022 DECEMBER 31, 2021 Accrued expenses and other current liabilities: Accrued compensation and benefits $ 11,855 $ 15,881 Accrued consulting and professional fees 3,976 5,007 Accrued research and development (1) 3,089 2,262 Accrued revenue reserves (2) 79,213 85,381 Accrued other (3) 4,817 3,810 Total accrued expenses and other current liabilities $ 102,950 $ 112,341 (1) Comprised primarily of accruals related to fees for investigative sites, contract research organizations and other service providers that assist in conducting preclinical research studies and clinical trials. (2) Comprised primarily of accruals related to commercial and government rebates as well as returns. (3) Comprised primarily of accruals related to interest payable as well as other business-related expenses.

Debt

Debt	3 Months Ended
	Mar. 31, 2022
Debt Disclosure [Abstract]
Debt	Debt Convertible Notes In September 2019, the Company issued an aggregate principal amount of $316.25 million of Convertible Notes to qualified institutional buyers pursuant to Rule 144A of the Securities Act of 1933, as amended. The Convertible Notes, governed by an indenture between the Company and a trustee, are senior, unsecured obligations and do not include financial and operating covenants nor any restrictions on the payments of dividends, the incurrence of indebtedness or the issuance or repurchase of securities by Aerie or any of its subsidiaries. Interest on the Convertible Notes is payable semi-annually in cash in arrears at a rate of 1.50% per annum on April 1 and October 1 of each year, which began on April 1, 2020. The Convertible Notes will mature on October 1, 2024 unless they are redeemed, repurchased or converted prior to such date. Prior to April 1, 2024, the Convertible Notes will be convertible at the option of holders only during certain periods and upon satisfaction of certain conditions. On and after April 1, 2024, the Convertible Notes will be convertible at the option of the holders any time until the close of business on the second scheduled trading day immediately preceding the maturity date. Upon conversion, the Convertible Notes may be settled in shares of Aerie common stock, cash or a combination, thereof, at the Company's election. The Company intends to pay cash upon conversion of the Convertible Notes. See Note 2 for additional information. The Convertible Notes have an initial conversion rate of 40.04 shares of Aerie common stock per $1,000 principal amount of the Convertible Notes, which will be subject to customary anti-dilution adjustments in certain circumstances. This represents an initial effective conversion price of approximately $24.98 per share, which represents a premium of approximately 35% to the $18.50 per share closing price of Aerie common stock on September 4, 2019, the date the Company priced the offering. The Company may redeem all or any portion of the Convertible Notes, at its option, on or after October 3, 2022, at a cash redemption price equal to 100% of the principal amount of the Convertible Notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding, the redemption date, but only if the last reported sale price of Aerie common stock exceeds 130% of the conversion price of $24.98, which amounts to $32.47, then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately before the date the Company provides written notice of redemption; and the trading day immediately before the notice is sent. Holders of Convertible Notes may require the Company to repurchase their Convertible Notes upon the occurrence of certain events that constitute a fundamental change under the indenture governing the Convertible Notes at a fundamental change repurchase price equal to 100% of the principal amount thereof, plus accrued and unpaid interest to, but excluding, the fundamental change repurchase date. During the three months ended March 31, 2022, the conditions allowing holders of the Convertible Notes to elect to convert had not been met. As of March 31, 2022, the if-converted value of the Convertible Notes did not exceed the principal amount of the Convertible Notes. The estimated fair value of the liability component of the Convertible Notes at the time of issuance was $187.9 million, and was determined based on a discounted cash flow analysis and a binomial lattice model. The valuation required the use of Level 3 unobservable inputs and subjective assumptions, including but not limited to the stock price volatility and bond yield. The effective interest rate on the liability component was 10.5% for the period from the date of issuance through March 31, 2021. The equity component of the Convertible Notes was recognized at issuance and represents the difference between the principal amount of the Convertible Notes and the fair value of the liability component of the Convertible Notes at issuance. The equity component was approximately $128.4 million at the time of issuance and its fair value is not remeasured as long as it continues to meet the conditions for equity classification. In connection with the issuance of the Convertible Notes, the Company incurred debt issuance costs of $9.2 million for the three months ended December 31, 2019. In accordance with ASC Topic 470, Debt , these costs were allocated to debt and equity components in proportion to the allocation of proceeds. Issuance costs of $5.5 million were recorded as debt issuance costs in the net carrying value of Convertible Notes. The debt issuance costs are amortized on an effective interest basis over the term of the Convertible Notes. The remaining issuance costs of $3.7 million were recorded as additional paid-in capital, net with the equity component and such amounts are not subject to amortization. Upon the Company’s adoption of ASU 2020-06 on January 1, 2022, as further discussed in Note 2, embedded conversion features are no longer separated from the host contract for convertible instruments with conversion features that are not required to be accounted for as derivatives under Topic 815, or that do not result in substantial premiums accounted for as paid-in capital. Consequently, the Convertible Notes will be accounted for as a single liability measured at its amortized cost. The effective interest rate was 2.1% for the three months ended March 31, 2022. The following table summarizes the carrying value of the Convertible Notes: (in thousands) MARCH 31, 2022 DECEMBER 31, 2021 Gross proceeds $ 316,250 $ 316,250 Unamortized debt discount — (78,395) Unamortized issuance costs (4,572) (3,328) Carrying value $ 311,678 $ 234,527 The following table summarizes the interest expense recognized related to the Convertible Notes: THREE MONTHS ENDED (in thousands) 2022 2021 Stated interest $ 1,186 $ 1,186 Amortized debt discount — 5,482 Amortized issuance costs 447 232 Interest expense $ 1,633 $ 6,900 Separately, in September 2019, the Company entered into privately negotiated capped call options with financial institutions. The capped call options cover, subject to customary anti-dilution adjustments, the number of shares of Aerie common stock that initially underlie the Convertible Notes. The cap price of the capped call options is $37.00 per share of Aerie common stock, representing a premium of 100% above the closing price of $18.50 per share of Aerie common stock on September 4, 2019, and is subject to certain adjustments under the terms of the capped call options. The capped call options are generally intended to reduce or offset potential dilution to Aerie common stock upon conversion of the Convertible Notes with such reduction and/ or offset, as the case may be, subject to a cap based on the cap price. The Company paid a total of $32.9 million in premiums for the capped call options, which was recorded as additional paid-in capital, using a portion of the gross proceeds from the issuance and sale of the Convertible Notes. The capped call options are excluded from diluted earnings per share because the impact would be anti-dilutive.

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Mar. 31, 2022
Share-based Payment Arrangement [Abstract]
Stock-Based Compensation	Stock-Based Compensation Stock-based compensation expense for options granted, restricted stock awards (“RSAs”), RSAs with non-market performance and service conditions (“PSAs”), restricted stock units (“RSUs”) and stock appreciation rights (“SARs”) is reflected in the condensed consolidated statements of operations and comprehensive loss as follows: THREE MONTHS ENDED (in thousands) 2022 2021 Cost of goods sold $ 162 $ 507 Selling, general and administrative 3,134 6,255 Research and development 1,336 1,987 Total $ 4,632 $ 8,749 Equity Plans The Company maintains three equity compensation plans: the 2005 Aerie Pharmaceutical Stock Plan (the “2005 Plan”), the 2013 Omnibus Incentive Plan (the “2013 Equity Plan”), which was amended and restated as the Aerie Pharmaceuticals, Inc. Second Amended and Restated Omnibus Incentive Plan (the “Second Amended and Restated Equity Plan”), as described below, and the Aerie Pharmaceuticals, Inc. Inducement Award Plan (the “Inducement Award Plan”), which was amended and restated as the Aerie Pharmaceuticals, Inc. Second Amended and Restated Inducement Award Plan (the “Second Amended and Restated Inducement Award Plan”), as described below. The 2005 Plan, the Second Amended and Restated Equity Plan and the Second Amended and Restated Inducement Award Plan are referred to collectively as the “Plans.” The 2005 Plan was frozen in 2013 and no additional awards have been or will be made under the 2005 Plan. In 2018, Aerie’s stockholders approved the adoption of the Second Amended and Restated Equity Plan to increase the number of shares issuable under the Plan by 4,500,000. The Second Amended and Restated Equity Plan provides for the granting of up to 10,229,068 equity awards in respect of common stock of Aerie, including equity awards that were previously available for issuance under the 2013 Equity Plan. In 2016, Aerie’s Board of Directors approved the Inducement Award Plan which provides for the granting of up to 418,000 equity awards in respect of common stock of Aerie and subsequently amended and restated the Inducement Award Plan twice in 2017 to increase the equity awards that may be issued by a total of an additional 874,500 shares. In 2019, the Second Amended and Restated Inducement Award Plan was further amended by Aerie’s Board of Directors to increase the number of shares issuable under the plan by 100,000 shares. On December 9, 2021, Aerie’s Board of Directors approved an increase to the number of shares issuable under the plan for grants made to the Company’s new Chief Executive Officer in connection with his hiring, including 602,952 shares for grants made in December 2021 and additional shares for grants made in the first quarter of 2022. On March 11, 2022, Aerie’s Board of Directors approved an amendment to the Second Amended and Restated Inducement Award Plan to increase the number of shares that may be issued under the plan to 4,092,500 shares, which includes the 602,952 shares granted to our Chief Executive Officer in December 2021 as well as an additional 2,097,048 shares to cover his previously approved March 2022 grant and other new hire grant projections. Awards granted under the Second Amended and Restated Inducement Award Plan, as amended from time to time are intended to qualify as employment inducement awards under NASDAQ Listing Rule 5635(c)(4). Options to Purchase Common Stock The following table summarizes the stock option activity under the Plans: NUMBER OF WEIGHTED WEIGHTED AGGREGATE Options outstanding at December 31, 2021 6,550,610 $ 26.87 Granted 673,888 8.73 Canceled (513,013) 23.91 Options outstanding at March 31, 2022 6,711,485 $ 25.27 6.4 $ 2,354 Options exercisable at March 31, 2022 4,569,275 $ 30.42 5.1 $ 1,716 As of March 31, 2022, the Company had $18.0 million of unrecognized compensation expense related to options granted under its equity plans. This expense is expected to be recognized over a weighted average period of 2.5 years as of March 31, 2022. Restricted Stock Awards The following table summarizes the RSA, including PSA, activity under the Plans: NUMBER OF WEIGHTED AVERAGE Non-vested RSAs at December 31, 2021 977,244 $ 18.32 Granted 347,814 8.80 Vested (132,905) 34.07 Canceled (114,408) 19.43 Non-vested RSAs at March 31, 2022 1,077,745 13.21 As of March 31, 2022, the Company had $12.0 million of unrecognized compensation expense related to unvested RSAs, including PSAs. This expense is expected to be recognized over the weighted average period of 2.8 years as of March 31, 2022. The vesting of the RSAs is time and service based with terms of 1 to 4 years. In 2017, the Company granted 98,817 PSAs that vested in 2020 upon the satisfaction of certain performance and service conditions. During the three months ended March 31, 2022, the Company granted 218,418 PSAs which vest upon the satisfaction of certain performance and service conditions, none of which have vested. Restricted Stock Units The following table summarizes the RSU activity under the Plans: NUMBER OF WEIGHTED AVERAGE Non-vested RSUs at December 31, 2021 156,873 $ 14.88 Granted 1,989 6.88 Vested (7,143) 7.00 Canceled (437) 16.22 Non-vested RSUs at March 31, 2022 151,282 15.14 As of March 31, 2022, the associated unrecognized compensation expense totaled $2.8 million. This expense is expected to be recognized over the weighted average period of 2.8 years as of March 31, 2022. Stock Appreciation Rights The following table summarizes the SARs activity under the Plans: NUMBER OF WEIGHTED WEIGHTED AGGREGATE SARs outstanding at December 31, 2021 238,349 $ 27.67 Granted 3,000 6.97 Canceled (13,434) 28.02 SARs outstanding at March 31, 2022 227,915 $ 27.37 2.8 $ 7 SARs exercisable at March 31, 2022 96,106 $ 39.26 1.9 $ — Holders of the SARs are entitled under the terms of the Plans to receive cash payments calculated based on the excess of Aerie’s common stock price over the exercise price in their award; consequently, these awards are accounted for as liability-classified awards and the Company measures compensation cost based on their estimated fair value at each reporting date, net of actual forfeitures, if any.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Milestone Payments In the first quarter of 2022, the Company gained alignment with the FDA on the results of its Phase 2b clinical trial for AR-15512 and confirmed the design of the Phase 3 trials, which the Company currently expects to initiate in the second quarter of 2022. This resulted in the achievement of a regulatory milestone in which the Company paid the former shareholders of Avizorex $8.0 million in the first quarter of 2022. Litigation The Company may periodically become subject to legal proceedings and claims arising in connection with its business. As of March 31, 2022, the Company is not a party to any material pending legal or administrative proceedings and, to its knowledge, no such proceedings are threatened or contemplated. The Company does not have contingency reserves established for any litigation liabilities as of March 31, 2022.

Significant Accounting Polici_2

Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2022
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The Company’s interim condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). In the opinion of management, the Company has made all necessary adjustments, which include normal recurring adjustments necessary for a fair statement of the Company’s condensed consolidated financial position and results of operations for the interim periods presented. Certain information and disclosures normally included in the annual consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. These interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes for the year ended December 31, 2021 included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on February 25, 2022. The results for the three months ended March 31, 2022 are not necessarily indicative of the results to be expected for a full year, any other interim periods or any future year or period.
Principles of Consolidation	Principles of Consolidation The interim condensed consolidated financial statements include the accounts of Aerie and its wholly-owned subsidiaries. All intercompany accounts, transactions and profits have been eliminated in consolidation.
Use of Estimates	Use of Estimates The preparation of condensed 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 and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and reported amounts of income and expenses during the reporting periods. Significant items subject to such estimates and assumptions include revenue recognition, leases, acquisitions, stock-based compensation and fair value measurements. On March 11, 2020, the World Health Organization declared the coronavirus (“COVID-19”) outbreak a pandemic. The COVID-19 pandemic continues to evolve, which the Company considered in its critical and significant accounting estimates as future developments continue to be uncertain, including as a result of new information that may emerge concerning COVID-19 and its variants and the actions taken to contain or treat it, as well as the economic impact on eye-care professionals, patients, third parties and markets. Actual results could differ from the Company’s estimates.
Adoption of New Accounting Standards and Recently Issued Accounting Pronouncements	Adoption of New Accounting Standards In August 2020, the Financial Accounting Standards Board (“FASB”) issued ASU 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity's Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity's Own Equity (“ASU 2020-06”). This ASU simplifies the complexity associated with applying GAAP for certain financial instruments with characteristics of liabilities and equity. More specifically, the amendments focus on the guidance for convertible instruments and the derivative scope exception for contracts in an entity’s own equity. Under ASU 2020-06, the embedded conversion features are no longer separated from the host contract for convertible instruments with conversion features that are not required to be accounted for as derivatives under Topic 815, or that do not result in substantial premiums accounted for as paid-in capital. Consequently, a convertible debt instrument, such as the Convertible Notes, will be accounted for as a single liability measured at its amortized cost, as long as no other features require bifurcation and recognition as derivatives. The new guidance also requires the if-converted method to be applied for all convertible instruments and requires additional disclosures. The guidance became effective for the Company beginning on January 1, 2022, and was applied using a modified retrospective approach through a cumulative-effect adjustment to retained earnings as of the effective date. As such, financial results reported in prior periods were not adjusted. The impact of adopting ASU 2020-06 on January 1, 2022, was comprised of a $124.7 million decrease to additional paid-in capital, a $76.7 million increase to convertible notes, net to reduce debt discounts and a $48.0 million decrease to accumulated deficit. Upon adoption of ASU 2020-06, the Company’s interest expense, recognized as a component of other expense, net in its condensed consolidated statements of operations and comprehensive loss, will decrease which primarily relates to no longer recognizing non-cash interest expense from the discount amortization, partially offset by an increase in amortization of debt issuance costs. See Note 10 for additional information. Recently Issued Accounting Standards There have been no new accounting pronouncements issued since the filing of the Annual Report on Form 10-K for the year ended December 31, 2021 that are expected to materially impact the Company’s consolidated financial statements.
Net Loss per Common Share	Net Loss per Common Share Basic net loss per common share (“Basic EPS”) is calculated by dividing the net loss by the weighted average number of shares of common stock outstanding for the period, without consideration for potentially dilutive securities. Diluted net loss per share (“Diluted EPS”) gives effect to all dilutive potential shares of common stock outstanding during this period. For Diluted EPS, net loss used in calculating Basic EPS may be adjusted for certain items related to the dilutive securities. For all periods presented, Aerie’s potential common stock equivalents have been excluded from the computation of Diluted EPS as their inclusion would have had an anti-dilutive effect.

Significant Accounting Polici_3

Significant Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2022
Accounting Policies [Abstract]
Schedule of Computation of Diluted EPS	The potential common stock equivalents that have been excluded from the computation of Diluted EPS consist of the following: THREE MONTHS ENDED 2022 2021 Convertible Notes (1) 12,662,650 — Outstanding stock options 6,711,485 8,720,368 Non-vested restricted stock awards 1,077,745 714,005 Non-vested restricted stock units 151,282 95,238 Total 20,603,162 9,529,611 (1) Upon adoption of ASU 2020-06 on January 1, 2022, the if-converted method is applied to the Convertible Notes in the calculation of earnings per share. Prior to the adoption of ASU 2020-06, the Company did not include the conversion value of the Convertible Notes in the diluted earnings per share computation.

Revenue from Contract with Cust

Revenue from Contract with Customer (Tables)	3 Months Ended
	Mar. 31, 2022
Revenue from Contract with Customer [Abstract]
Schedule of Deferred Revenue, Noncurrent	The Company recognized deferred revenue, non-current as of March 31, 2022 and December 31, 2021 as follows: (in thousands) MARCH 31, 2022 DECEMBER 31, 2021 First Santen Agreement: Upfront payment (1) $ 50,000 $ 50,000 Developmental milestones (2) 6,000 — Santen’s portion of shared costs (3) 6,000 6,315 Second Santen Agreement: Upfront payment (4) 8,000 8,000 Total $ 70,000 $ 64,315 (1) While the Company determined that the license was a right to use the Company’s intellectual property and as of the effective date of the First Santen Agreement, the Company had provided all necessary information to Santen to benefit from the license and the license term had begun, revenue was not recognized upon satisfaction of the performance obligation due to the uncertainty around potential termination in the event that patents are issued that may prevent the commercialization of the Licensed Products. The Company will recognize the $50.0 million upfront payment received under the First Santen Agreement, and any other current and potential future development milestones and sales milestones, when it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur. The Company will re-evaluate the transaction price in each reporting period and as uncertain events are resolved or other changes in circumstances occur. (2) In March 2022, Santen made a $6.0 million developmental milestone payment in connection with the First Santen Agreement. (3) This item represents Santen’s portion of shared costs related to conducting the first Rhopressa ® Phase 3 clinical trial in Japan, which commenced in the fourth quarter of 2020, as described above. (4) As of March 31, 2022 and December 31, 2021, the Company recognized $8.0 million of the Second Santen Agreement Upfront Payment as deferred revenue, non-current in its consolidated balance sheet due to the uncertainty around potential termination in China in the event that patents are issued that may prevent the commercialization of the Licensed Products.

Investments (Tables)

Investments (Tables)	3 Months Ended
	Mar. 31, 2022
Investments, Debt and Equity Securities [Abstract]
Schedule of Cash, Cash Equivalents and Investments	Cash, cash equivalents and investments as of March 31, 2022 included the following: GROSS GROSS AMORTIZED UNREALIZED UNREALIZED FAIR (in thousands) COST GAINS LOSSES VALUE Cash and cash equivalents: Cash and cash equivalents $ 56,441 $ — $ — $ 56,441 Total cash and cash equivalents $ 56,441 $ — $ — $ 56,441 Investments: Certificates of deposit (due within 1 year) $ 9,044 $ — $ (14) $ 9,030 Commercial paper (due within 1 year) 54,456 — (186) 54,270 Corporate bonds (due within 1 year) 41,747 — (178) 41,569 Corporate bonds (due within 2 years) 4,020 — (35) 3,985 U.S. Government and government agencies (due within 1 year) 33,955 — (17) 33,938 Total investments $ 143,222 $ — $ (430) $ 142,792 Total cash, cash equivalents and investments $ 199,663 $ — $ (430) $ 199,233 Cash, cash equivalents and investments as of December 31, 2021 included the following: GROSS GROSS AMORTIZED UNREALIZED UNREALIZED FAIR (in thousands) COST GAINS LOSSES VALUE Cash and cash equivalents: Cash and cash equivalents $ 37,187 $ — $ — $ 37,187 Total cash and cash equivalents $ 37,187 $ — $ — $ 37,187 Investments: Certificates of deposit (due within 1 year) $ 9,047 $ — $ (9) $ 9,038 Commercial paper (due within 1 year) 50,975 — (55) 50,920 Corporate bonds (due within 1 year) 42,718 — (62) 42,656 Total investments $ 102,740 $ — $ (126) $ 102,614 Total cash, cash equivalents and investments $ 139,927 $ — $ (126) $ 139,801

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2022
Fair Value Disclosures [Abstract]
Schedule of Fair Value Measurements	The following tables summarize the fair value of financial assets and liabilities that are measured at fair value and the classification by level of input within the fair value hierarchy: FAIR VALUE MEASUREMENTS AS OF MARCH 31, 2022 (in thousands) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL Cash and cash equivalents: Cash and cash equivalents $ 56,441 $ — $ — $ 56,441 Total cash and cash equivalents: $ 56,441 $ — $ — $ 56,441 Investments: Certificates of deposit $ — $ 9,030 $ — $ 9,030 Commercial paper — 54,270 — 54,270 Corporate bonds — 45,554 — 45,554 U.S. Government and government agencies — 33,938 — 33,938 Total investments $ — $ 142,792 $ — $ 142,792 Total cash, cash equivalents and investments: $ 56,441 $ 142,792 $ — $ 199,233 FAIR VALUE MEASUREMENTS AS OF DECEMBER 31, 2021 (in thousands) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL Cash and cash equivalents: Cash and cash equivalents $ 37,187 $ — $ — $ 37,187 Total cash and cash equivalents: $ 37,187 $ — $ — $ 37,187 Investments: Certificates of deposit $ — $ 9,038 $ — $ 9,038 Commercial paper — 50,920 — 50,920 Corporate bonds — 42,656 — 42,656 Total investments $ — $ 102,614 $ — $ 102,614 Total cash, cash equivalents and investments: $ 37,187 $ 102,614 $ — $ 139,801

Inventory (Tables)

Inventory (Tables)	3 Months Ended
	Mar. 31, 2022
Inventory Disclosure [Abstract]
Schedule of Inventory	Inventory consists of the following: (in thousands) MARCH 31, 2022 DECEMBER 31, 2021 Raw materials $ 4,968 $ 5,368 Work-in-process 30,480 30,989 Finished goods 4,742 4,053 Total inventory $ 40,190 $ 40,410

Property, Plant and Equipment_2

Property, Plant and Equipment, Net (Tables)	3 Months Ended
	Mar. 31, 2022
Property, Plant and Equipment [Abstract]
Schedule of Property, Plant and Equipment	Property, plant and equipment, net consists of the following: (in thousands) MARCH 31, 2022 DECEMBER 31, 2021 Manufacturing equipment $ 22,485 $ 22,464 Laboratory equipment 9,509 9,182 Furniture and fixtures 1,612 1,569 Software, computer and other equipment 7,857 7,779 Leasehold improvements 31,452 31,175 Construction-in-progress 2,703 2,037 Property, plant and equipment 75,618 74,206 Less: Accumulated depreciation (24,392) (22,734) Property, plant and equipment, net $ 51,226 $ 51,472

Accrued Expenses and Other Cu_2

Accrued Expenses and Other Current Liabilities (Tables)	3 Months Ended
	Mar. 31, 2022
Payables and Accruals [Abstract]
Schedule of Accrued Expenses and Other Current Liabilities	Accrued expenses and other current liabilities consist of the following: (in thousands) MARCH 31, 2022 DECEMBER 31, 2021 Accrued expenses and other current liabilities: Accrued compensation and benefits $ 11,855 $ 15,881 Accrued consulting and professional fees 3,976 5,007 Accrued research and development (1) 3,089 2,262 Accrued revenue reserves (2) 79,213 85,381 Accrued other (3) 4,817 3,810 Total accrued expenses and other current liabilities $ 102,950 $ 112,341 (1) Comprised primarily of accruals related to fees for investigative sites, contract research organizations and other service providers that assist in conducting preclinical research studies and clinical trials. (2) Comprised primarily of accruals related to commercial and government rebates as well as returns. (3) Comprised primarily of accruals related to interest payable as well as other business-related expenses.

Debt (Tables)

Debt (Tables)	3 Months Ended
	Mar. 31, 2022
Debt Disclosure [Abstract]
Schedule of Convertible Debt	The following table summarizes the carrying value of the Convertible Notes: (in thousands) MARCH 31, 2022 DECEMBER 31, 2021 Gross proceeds $ 316,250 $ 316,250 Unamortized debt discount — (78,395) Unamortized issuance costs (4,572) (3,328) Carrying value $ 311,678 $ 234,527
Schedule of Interest Expense of Convertible Debt	The following table summarizes the interest expense recognized related to the Convertible Notes: THREE MONTHS ENDED (in thousands) 2022 2021 Stated interest $ 1,186 $ 1,186 Amortized debt discount — 5,482 Amortized issuance costs 447 232 Interest expense $ 1,633 $ 6,900

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2022
Share-based Payment Arrangement [Abstract]
Schedule of Stock-Based Compensation Expense	Stock-based compensation expense for options granted, restricted stock awards (“RSAs”), RSAs with non-market performance and service conditions (“PSAs”), restricted stock units (“RSUs”) and stock appreciation rights (“SARs”) is reflected in the condensed consolidated statements of operations and comprehensive loss as follows: THREE MONTHS ENDED (in thousands) 2022 2021 Cost of goods sold $ 162 $ 507 Selling, general and administrative 3,134 6,255 Research and development 1,336 1,987 Total $ 4,632 $ 8,749
Schedule of Stock Options Activity	The following table summarizes the stock option activity under the Plans: NUMBER OF WEIGHTED WEIGHTED AGGREGATE Options outstanding at December 31, 2021 6,550,610 $ 26.87 Granted 673,888 8.73 Canceled (513,013) 23.91 Options outstanding at March 31, 2022 6,711,485 $ 25.27 6.4 $ 2,354 Options exercisable at March 31, 2022 4,569,275 $ 30.42 5.1 $ 1,716
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity	The following table summarizes the RSA, including PSA, activity under the Plans: NUMBER OF WEIGHTED AVERAGE Non-vested RSAs at December 31, 2021 977,244 $ 18.32 Granted 347,814 8.80 Vested (132,905) 34.07 Canceled (114,408) 19.43 Non-vested RSAs at March 31, 2022 1,077,745 13.21 The following table summarizes the RSU activity under the Plans: NUMBER OF WEIGHTED AVERAGE Non-vested RSUs at December 31, 2021 156,873 $ 14.88 Granted 1,989 6.88 Vested (7,143) 7.00 Canceled (437) 16.22 Non-vested RSUs at March 31, 2022 151,282 15.14
Schedule of Stock Appreciation Rights	The following table summarizes the SARs activity under the Plans: NUMBER OF WEIGHTED WEIGHTED AGGREGATE SARs outstanding at December 31, 2021 238,349 $ 27.67 Granted 3,000 6.97 Canceled (13,434) 28.02 SARs outstanding at March 31, 2022 227,915 $ 27.37 2.8 $ 7 SARs exercisable at March 31, 2022 96,106 $ 39.26 1.9 $ —

The Company (Details)

The Company (Details)	3 Months Ended
	Mar. 31, 2022USD ($)productSegment	Jan. 31, 2022USD ($)	Dec. 31, 2021USD ($)	Oct. 31, 2020USD ($)	Sep. 30, 2019USD ($)
Organization, Consolidation and Presentation of Financial Statements [Line Items]
Number of operating segments | Segment	1
Number of FDA approved products | product	2
Deferred revenue, non-current	$ 70,000,000		$ 64,315,000
Total cash, cash equivalents and investments, Fair Value	199,233,000		139,801,000
Convertible Senior Notes
Organization, Consolidation and Presentation of Financial Statements [Line Items]
Principal amount					$ 316,250,000
Interest rate					1.50%
Convertible Senior Notes Due 2024 | Convertible Senior Notes
Organization, Consolidation and Presentation of Financial Statements [Line Items]
Principal amount	$ 316,250,000		316,250,000		$ 316,250,000
Interest rate					1.50%
Second Santen Agreement | License Revenue, Upfront Payment
Organization, Consolidation and Presentation of Financial Statements [Line Items]
Deferred revenue, non-current		$ 90,000,000	88,000,000	$ 50,000,000
Second Santen Agreement | License Revenue, Additional Upfront Paymet
Organization, Consolidation and Presentation of Financial Statements [Line Items]
Deferred revenue, non-current			$ 2,000,000

Significant Accounting Polici_4

Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Jan. 01, 2022	Dec. 31, 2021	Aug. 31, 2020
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Additional Paid in Capital	$ 1,016,510		$ 1,136,656
Accumulated deficit	$ (1,141,840)		$ (1,153,911)
Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2020-06
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Additional Paid in Capital		$ (124,700)
Convertible debt				$ 76,700
Accumulated deficit				$ 48,000

Significant Accounting Polici_5

Significant Accounting Policies - Computation of Diluted EPS (Details) - shares	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potential common stock equivalents excluded from the computation of diluted net loss per share (in shares)	20,603,162	9,529,611
Convertible Notes
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potential common stock equivalents excluded from the computation of diluted net loss per share (in shares)	12,662,650	0
Outstanding stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potential common stock equivalents excluded from the computation of diluted net loss per share (in shares)	6,711,485	8,720,368
Non-vested restricted stock awards
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potential common stock equivalents excluded from the computation of diluted net loss per share (in shares)	1,077,745	714,005
Non-vested restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potential common stock equivalents excluded from the computation of diluted net loss per share (in shares)	151,282	95,238

Revenue Recognition - Narrative

Revenue Recognition - Narrative (Details) $ in Millions	1 Months Ended	3 Months Ended
	Dec. 31, 2021USD ($)Segment	Mar. 31, 2022USD ($)Segment	Mar. 31, 2021USD ($)Segment	Jan. 01, 2022USD ($)
Disaggregation of Revenue [Line Items]
Provisions for revenue reserves to reduce product revenues to product revenues, net		$ 63.8	$ 50.8
Santen | Europe
Disaggregation of Revenue [Line Items]
Collaborative agreement, repayment of upfront payment upon termination, amount	$ 8
Second Santen Agreement | Santen
Disaggregation of Revenue [Line Items]
Upfront payment receivable				$ 88
Amount receivable, upon achievement of event				$ 2
Contingent payments receivable upon achievement of development and regulatory milestones (up to)	15.5
Contingent payments receivable upon achievement of commercial milestones (up to)	$ 60
Collaborative agreement, termination by counterparty, effective after written notice period | Segment	180
Collaborative agreement expiration, period after first commercial sale of product	3 years
Second Santen Agreement | Santen | Expanded Territories Excluding China and India
Disaggregation of Revenue [Line Items]
Royalty percentage (in excess of)	25.00%
Second Santen Agreement | Santen | China and India
Disaggregation of Revenue [Line Items]
Royalty percentage (in excess of)	20.00%
Rhopressa and Rocklatan | Sales Revenue, Net | Customer Concentration Risk
Disaggregation of Revenue [Line Items]
Number of distributors | Segment		3	3
Rhopressa and Rocklatan | Sales Revenue, Net | Customer Concentration Risk | Distributor One
Disaggregation of Revenue [Line Items]
Concentration risk percentage		38.00%	36.00%
Rhopressa and Rocklatan | Sales Revenue, Net | Customer Concentration Risk | Distributor Two
Disaggregation of Revenue [Line Items]
Concentration risk percentage		35.00%	30.00%
Rhopressa and Rocklatan | Sales Revenue, Net | Customer Concentration Risk | Distributor Three
Disaggregation of Revenue [Line Items]
Concentration risk percentage		26.00%	33.00%

Revenue Recognition - Deferred

Revenue Recognition - Deferred Revenue, Noncurrent (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Jan. 31, 2022	Dec. 31, 2021	Oct. 31, 2020
Disaggregation of Revenue [Line Items]
Deferred revenue, non-current	$ 70,000		$ 64,315
Second Santen Agreement | License Revenue, Upfront Payment
Disaggregation of Revenue [Line Items]
Deferred revenue, non-current		$ 90,000	88,000	$ 50,000
Santen
Disaggregation of Revenue [Line Items]
Deferred revenue, non-current	70,000		64,315
Santen | First Santen Agreement | License Revenue, Upfront Payment
Disaggregation of Revenue [Line Items]
Deferred revenue, non-current	50,000		50,000
Santen | First Santen Agreement | License Revenue, Developmental Milestones
Disaggregation of Revenue [Line Items]
Deferred revenue, non-current	6,000		0
Santen | First Santen Agreement | License Revenue, Counterparty's Portion Of Costs
Disaggregation of Revenue [Line Items]
Deferred revenue, non-current	6,000		6,315
Santen | Second Santen Agreement | License Revenue, Upfront Payment
Disaggregation of Revenue [Line Items]
Deferred revenue, non-current	$ 8,000		$ 8,000

Investments - Cash, Cash Equiva

Investments - Cash, Cash Equivalents and Investments (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Cash and cash equivalents:
Amortized Cost	$ 56,441	$ 37,187
Gross unrealized gains	0	0
Gross unrealized losses	0	0
Fair Value	56,441	37,187
Investments:
Amortized Cost	143,222	102,740
Gross unrealized gains	0	0
Gross unrealized losses	(430)	(126)
Fair Value	142,792	102,614
Total cash, cash equivalents and investments, Amortized Cost	199,663	139,927
Total cash, cash equivalents and investments, Gross Unrealized Gains	0	0
Total cash, cash equivalents and investments, Gross Unrealized Losses	(430)	(126)
Total cash, cash equivalents and investments, Fair Value	199,233	139,801
Cash and cash equivalents
Cash and cash equivalents:
Amortized Cost	56,441	37,187
Gross unrealized gains	0	0
Gross unrealized losses	0	0
Fair Value	56,441	37,187
Certificates of deposit (due within 1 year)
Investments:
Amortized Cost	9,044	9,047
Gross unrealized gains	0	0
Gross unrealized losses	(14)	(9)
Fair Value	9,030	9,038
Commercial paper (due within 1 year)
Investments:
Amortized Cost	54,456	50,975
Gross unrealized gains	0	0
Gross unrealized losses	(186)	(55)
Fair Value	54,270	50,920
Corporate bonds (due within 1 year)
Investments:
Amortized Cost	41,747	42,718
Gross unrealized gains	0	0
Gross unrealized losses	(178)	(62)
Fair Value	41,569	$ 42,656
Corporate bonds (due within 2 years)
Investments:
Amortized Cost	4,020
Gross unrealized gains	0
Gross unrealized losses	(35)
Fair Value	3,985
U.S. Government and government agencies (due within 1 year)
Investments:
Amortized Cost	33,955
Gross unrealized gains	0
Gross unrealized losses	(17)
Fair Value	$ 33,938

Investments - Additional Inform

Investments - Additional Information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Investments, Debt and Equity Securities [Abstract]
Interest income (expense), net	$ 100,000	$ 100,000
Fair value	$ 0		$ 0

Fair Value Measurements - Fair

Fair Value Measurements - Fair Value Measurements (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	$ 56,441	$ 37,187
Debt securities, available-for-sale	142,792	102,614
Total investments	142,792	102,614
Total cash, cash equivalents and investments	199,233	139,801
LEVEL 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	56,441	37,187
Total investments	0	0
Total cash, cash equivalents and investments	56,441	37,187
LEVEL 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	0	0
Total investments	142,792	102,614
Total cash, cash equivalents and investments	142,792	102,614
LEVEL 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	0	0
Total investments	0	0
Total cash, cash equivalents and investments	0	0
Cash and cash equivalents
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	56,441	37,187
Cash and cash equivalents | LEVEL 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	56,441	37,187
Cash and cash equivalents | LEVEL 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	0	0
Cash and cash equivalents | LEVEL 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	0	0
Certificates of deposit
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities, available-for-sale	9,030	9,038
Certificates of deposit | LEVEL 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities, available-for-sale	0	0
Certificates of deposit | LEVEL 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities, available-for-sale	9,030	9,038
Certificates of deposit | LEVEL 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities, available-for-sale	0	0
Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities, available-for-sale	54,270	50,920
Commercial paper | LEVEL 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities, available-for-sale	0	0
Commercial paper | LEVEL 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities, available-for-sale	54,270	50,920
Commercial paper | LEVEL 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities, available-for-sale	0	0
Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities, available-for-sale	45,554	42,656
Corporate bonds | LEVEL 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities, available-for-sale	0	0
Corporate bonds | LEVEL 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities, available-for-sale	45,554	42,656
Corporate bonds | LEVEL 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities, available-for-sale	0	$ 0
U.S. Government and government agencies
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total investments	33,938
U.S. Government and government agencies | LEVEL 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total investments	0
U.S. Government and government agencies | LEVEL 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total investments	33,938
U.S. Government and government agencies | LEVEL 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total investments	$ 0

Fair Value Measurements - Addit

Fair Value Measurements - Additional Information (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
LEVEL 2
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Estimated fair value of the convertible notes	$ 284.8	$ 270.4

Inventory (Details)

Inventory (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Inventory Disclosure [Abstract]
Raw materials	$ 4,968		$ 5,368
Work-in-process	30,480		30,989
Finished goods	4,742		4,053
Total inventory	40,190		$ 40,410
Idle capacity	$ 3,900	$ 4,400

Property, Plant and Equipment_3

Property, Plant and Equipment, Net - Property, Plant and Equipment (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 75,618	$ 74,206
Less: Accumulated depreciation	(24,392)	(22,734)
Property, plant and equipment, net	51,226	51,472
Manufacturing equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	22,485	22,464
Laboratory equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	9,509	9,182
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	1,612	1,569
Software, computer and other equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	7,857	7,779
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	31,452	31,175
Construction-in-progress
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 2,703	$ 2,037

Leases - Narrative (Details)

Leases - Narrative (Details) ft² in Thousands	3 Months Ended
	Mar. 31, 2022ft²
Minimum
Operating Leased Assets [Line Items]
Term of contract	1 year
Maximum
Operating Leased Assets [Line Items]
Term of contract	15 years
North Carolina
Operating Leased Assets [Line Items]
Area of interior floor space	61
California
Operating Leased Assets [Line Items]
Area of interior floor space	27
New Jersey
Operating Leased Assets [Line Items]
Area of interior floor space	34
Ireland
Operating Leased Assets [Line Items]
Area of interior floor space	30

Accrued Expenses and Other Cu_3

Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Accrued expenses and other current liabilities:
Accrued compensation and benefits	$ 11,855	$ 15,881
Accrued consulting and professional fees	3,976	5,007
Accrued research and development	3,089	2,262
Accrued revenue reserves	79,213	85,381
Accrued other	4,817	3,810
Total accrued expenses and other current liabilities	$ 102,950	$ 112,341

Debt - Narrative (Details)

Debt - Narrative (Details)	Sep. 04, 2019USD ($)$ / shares$ / unit	Mar. 31, 2022USD ($)d$ / shares	Dec. 31, 2019USD ($)	Dec. 31, 2021USD ($)	Mar. 31, 2021	Sep. 30, 2019USD ($)
Debt Instrument [Line Items]
Debt instrument, convertible, conversion ratio	0.04004
Debt instrument trading days | d		20
Debt instrument consecutive trading day | d		30
Payment for capped call share options	$ 32,900,000
Call Option
Debt Instrument [Line Items]
Capped price (in dollars per share) | $ / unit	37
Premium of cap price as a percentage of closing price	100.00%
COMMON STOCK
Debt Instrument [Line Items]
Closing stock price (in dollars per share) | $ / shares	$ 18.50
Convertible Senior Notes
Debt Instrument [Line Items]
Principal amount						$ 316,250,000
Interest rate						1.50%
Convertible Senior Notes | Convertible Senior Notes Due 2024
Debt Instrument [Line Items]
Principal amount		$ 316,250,000		$ 316,250,000		$ 316,250,000
Interest rate						1.50%
Debt instrument, convertible conversion price (in dollars per share) | $ / shares	$ 24.98	$ 24.98
Stock price trigger, premium on closing price (as a percent)	35.00%
Redemption price (as a percent)		100.00%
Stock price trigger (as a percent)		130.00%
Debt instrument, effective conversion price (in dollars per share) | $ / shares		$ 32.47
Equity component of convertible debt						$ 128,400,000
Debt issuance costs incurred			$ 9,200,000
Debt issuance costs, net		$ 4,572,000	5,500,000	$ 3,328,000
Debt issuance costs related with equity component of convertible debt			$ 3,700,000
Convertible Senior Notes | Convertible Senior Notes Due 2024 | LEVEL 3
Debt Instrument [Line Items]
Convertible notes fair value of liability component		$ 187,900,000
Convertible notes fair value of liability component, effective interest rate percentage		2.10%			10.50%

Debt - Convertible Debt (Detail

Debt - Convertible Debt (Details) - USD ($)	Mar. 31, 2022	Dec. 31, 2021	Dec. 31, 2019	Sep. 30, 2019
Debt Instrument [Line Items]
Carrying value	$ 311,678,000	$ 234,527,000
Convertible Senior Notes
Debt Instrument [Line Items]
Gross proceeds				$ 316,250,000
Convertible Senior Notes Due 2024 | Convertible Senior Notes
Debt Instrument [Line Items]
Gross proceeds	316,250,000	316,250,000		$ 316,250,000
Unamortized debt discount	0	(78,395,000)
Unamortized issuance costs	(4,572,000)	(3,328,000)	$ (5,500,000)
Carrying value	$ 311,678,000	$ 234,527,000

Debt - Interest Expense of Conv

Debt - Interest Expense of Convertible Notes (Details) - Convertible Senior Notes - Convertible Senior Notes Due 2024 - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Debt Instrument [Line Items]
Stated interest	$ 1,186	$ 1,186
Amortized debt discount	0	5,482
Amortized issuance costs	447	232
Interest expense	$ 1,633	$ 6,900

Stock-Based Compensation - Stoc

Stock-Based Compensation - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 4,632	$ 8,749
Cost of goods sold
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	162	507
Selling, general and administrative
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	3,134	6,255
Research and development
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 1,336	$ 1,987

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Details) $ in Millions	Mar. 11, 2022shares	Dec. 31, 2021shares	Mar. 31, 2022USD ($)planshares	Mar. 31, 2017shares	Dec. 31, 2019shares	Dec. 31, 2018shares	Dec. 31, 2017shares	Dec. 31, 2016shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity compensation plan, number of plans | plan			3
Additional awards granted (in shares)			673,888
Outstanding stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense | $			$ 18
Weighted-average remaining vesting period			2 years 6 months
Non-vested restricted stock awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense related to unvested awards | $			$ 12
Weighted-average of remaining vesting period			2 years 9 months 18 days
Granted (in shares)			347,814
Non-vested restricted stock awards | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based awards, vesting period			1 year
Non-vested restricted stock awards | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based awards, vesting period			4 years
Restricted Stock With Non-Market Performance Conditions
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)			218,418				98,817
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense related to unvested awards | $			$ 2.8
Weighted-average of remaining vesting period			2 years 9 months 18 days
Granted (in shares)			1,989
2005 Aerie Pharmaceutical Stock Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Additional awards granted (in shares)			0
2013 Omnibus incentive plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized (in shares)		10,229,068
Additional shares authorized (in shares)						4,500,000
Inducement Award Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized (in shares)	4,092,500							418,000
Additional shares authorized (in shares)				874,500	100,000
Inducement Award Plan | Chief Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)		602,952
Amended And Restated Omnibus Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Additional shares authorized (in shares)	2,097,048

Stock-Based Compensation - St_2

Stock-Based Compensation - Stock Options Activity (Details) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2022USD ($)$ / sharesshares
NUMBER OF SHARES
Beginning balance (in shares) | shares	6,550,610
Granted (in shares) | shares	673,888
Canceled (in shares) | shares	(513,013)
Ending balance (in shares) | shares	6,711,485
Options exercisable (in shares) | shares	4,569,275
WEIGHTED  AVERAGE EXERCISE PRICE
Beginning balance (in dollars per share) | $ / shares	$ 26.87
Granted (in dollars per share) | $ / shares	8.73
Canceled (in dollars per share) | $ / shares	23.91
Ending balance (in dollars per share) | $ / shares	25.27
Options exercisable (in dollars per share) | $ / shares	$ 30.42
WEIGHTED AVERAGE REMAINING CONTRACTUAL LIFE (YEARS)
Options outstanding (in years)	6 years 4 months 24 days
Options exercisable (in years)	5 years 1 month 6 days
AGGREGATE INTRINSIC VALUE
Options outstanding | $	$ 2,354
Options exercisable | $	$ 1,716

Stock-Based Compensation - Rest

Stock-Based Compensation - Restricted Stock Activity (Details)	3 Months Ended
	Mar. 31, 2022$ / sharesshares
Non-vested restricted stock awards
NUMBER OF SHARES
Beginning balance (in shares) | shares	977,244
Granted (in shares) | shares	347,814
Vested (in shares) | shares	(132,905)
Canceled (in shares) | shares	(114,408)
Ending balance (in shares) | shares	1,077,745
WEIGHTED AVERAGE FAIR VALUE PER SHARE
Beginning balance (in dollars per share) | $ / shares	$ 18.32
Granted (in dollars per share) | $ / shares	8.80
Vested (in dollars per share) | $ / shares	34.07
Canceled (in dollars per share) | $ / shares	19.43
Ending balance (in dollars per share) | $ / shares	$ 13.21
Non-vested restricted stock units
NUMBER OF SHARES
Beginning balance (in shares) | shares	156,873
Granted (in shares) | shares	1,989
Vested (in shares) | shares	(7,143)
Canceled (in shares) | shares	(437)
Ending balance (in shares) | shares
WEIGHTED AVERAGE FAIR VALUE PER SHARE
Beginning balance (in dollars per share) | $ / shares	$ 14.88
Granted (in dollars per share) | $ / shares	6.88
Vested (in dollars per share) | $ / shares	7
Canceled (in dollars per share) | $ / shares	16.22
Ending balance (in dollars per share) | $ / shares	$ 15.14

Stock-Based Compensation - St_3

Stock-Based Compensation - Stock Appreciation Rights (Details) - Stock Appreciation Rights (SARs) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2022USD ($)$ / sharesshares
NUMBER OF SHARES
Beginning balance (in shares) | shares	238,349
Granted (in shares) | shares	3,000
Canceled (in shares) | shares	(13,434)
Ending balance (in shares) | shares	227,915
Stock exercisable (in shares) | shares	96,106
WEIGHTED  AVERAGE EXERCISE PRICE
Beginning balance (in dollars per share) | $ / shares	$ 27.67
Granted (in dollars per share) | $ / shares	6.97
Canceled (in dollars per share) | $ / shares	28.02
Ending balance (in dollars per share) | $ / shares	27.37
Stock exercisable (in dollars per share) | $ / shares	$ 39.26
WEIGHTED AVERAGE REMAINING CONTRACTUAL LIFE (YEARS)
Stock outstanding (in years)	2 years 9 months 18 days
Stock exercisable (in years)	1 year 10 months 24 days
AGGREGATE INTRINSIC VALUE
Stock outstanding | $	$ 7
Stock exercisable | $	$ 0

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Details) $ in Millions	Mar. 31, 2022USD ($)
Avizorex
Loss Contingencies [Line Items]
Contractual regulatory milestone payment	$ 8