Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Aug. 02, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | AERI | |
Entity Registrant Name | AERIE PHARMACEUTICALS INC | |
Entity CIK | 1,337,553 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding (in shares) | 45,222,253 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Current assets | ||
Cash and cash equivalents | $ 270,648 | $ 197,569 |
Short-term investments | 15,455 | 52,086 |
Accounts receivable, net | 1,125 | 0 |
Inventory | 5,747 | 0 |
Prepaid expenses and other current assets | 2,503 | 4,487 |
Total current assets | 295,478 | 254,142 |
Property, plant and equipment, net | 54,879 | 31,932 |
Other assets | 2,604 | 4,202 |
Total assets | 352,961 | 290,276 |
Current liabilities | ||
Accounts payable | 8,757 | 6,245 |
Accrued expenses and other current liabilities | 20,016 | 18,939 |
Total current liabilities | 28,773 | 25,184 |
Convertible notes, net | 123,999 | 123,845 |
Other non-current liabilities | 5,309 | 5,648 |
Total liabilities | 158,081 | 154,677 |
Commitments and contingencies (Note 12) | ||
Stockholders’ equity | ||
Preferred stock, $0.001 par value; 15,000,000 shares authorized as of June 30, 2018 and December 31, 2017; None issued and outstanding | 0 | 0 |
Common stock, $0.001 par value; 150,000,000 shares authorized as of June 30, 2018 and December 31, 2017; 39,839,373 and 36,947,637 shares issued and outstanding as of June 30, 2018 and December 31, 2017, respectively | 40 | 37 |
Additional paid-in capital | 754,437 | 597,318 |
Accumulated other comprehensive loss | (9) | (28) |
Accumulated deficit | (559,588) | (461,728) |
Total stockholders’ equity | 194,880 | 135,599 |
Total liabilities and stockholders’ equity | $ 352,961 | $ 290,276 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Jun. 30, 2018 | Dec. 31, 2017 |
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) | 39,839,373 | 36,947,637 |
Common stock, shares outstanding (in shares) | 39,839,373 | 36,947,637 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Revenues | $ 2,423,000 | $ 0 | $ 2,423,000 | $ 0 |
Costs and expenses: | ||||
Cost of goods sold | 59,000 | 0 | 59,000 | 0 |
Selling, general and administrative | 39,891,000 | 17,153,000 | 67,714,000 | 31,628,000 |
Research and development | 18,157,000 | 10,615,000 | 31,129,000 | 21,569,000 |
Total costs and expenses | 58,107,000 | 27,768,000 | 98,902,000 | 53,197,000 |
Loss from operations | (55,684,000) | (27,768,000) | (96,479,000) | (53,197,000) |
Other income (expense), net | 663,000 | (618,000) | 759,000 | (930,000) |
Loss before income taxes | (55,021,000) | (28,386,000) | (95,720,000) | (54,127,000) |
Income tax expense | 3,000 | 47,000 | 3,000 | 93,000 |
Net loss | $ (55,024,000) | $ (28,433,000) | $ (95,723,000) | $ (54,220,000) |
Net loss per common share—basic and diluted (in dollars per share) | $ (1.40) | $ (0.82) | $ (2.46) | $ (1.58) |
Weighted average number of common shares outstanding—basic and diluted (in shares) | 39,204,762 | 34,783,195 | 38,903,469 | 34,283,073 |
Net loss | $ (55,024,000) | $ (28,433,000) | $ (95,723,000) | $ (54,220,000) |
Unrealized gain (loss) on available-for-sale investments | 148,000 | 24,000 | 19,000 | (13,000) |
Comprehensive loss | (54,876,000) | (28,409,000) | (95,704,000) | (54,233,000) |
Product revenues, net | ||||
Revenues | $ 2,423,000 | $ 0 | $ 2,423,000 | $ 0 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Cash flows from operating activities | ||
Net loss | $ (95,723) | $ (54,220) |
Adjustments to reconcile net loss to net cash used in operating activities | ||
Depreciation | 1,081 | 600 |
Amortization of debt discounts | 154 | 153 |
Amortization and accretion of premium or discount on investments, net | 46 | 60 |
Stock-based compensation | 19,037 | 11,515 |
Unrealized foreign exchange (gain) loss | (165) | 365 |
Changes in operating assets and liabilities | ||
Accounts receivable, net | (1,125) | 0 |
Inventory | (5,546) | 0 |
Prepaid, current and other assets | 1,438 | 1,765 |
Accounts payable, accrued expenses and other current liabilities | 3,004 | (6,024) |
Net cash used in operating activities | (77,799) | (45,786) |
Cash flows from investing activities | ||
Purchase of available-for-sale investments | 56,195 | 54,427 |
Proceeds from sales and maturities of investments | 92,827 | 24,801 |
Purchase of property, plant and equipment | (23,032) | (2,594) |
Net cash provided by (used in) investing activities | 13,600 | (32,220) |
Cash flows from financing activities | ||
Proceeds from sale of common stock, net | 135,972 | 122,046 |
Proceeds related to issuance of stock for stock-based compensation arrangements, net | 1,693 | 665 |
Other | (387) | 0 |
Net cash provided by financing activities | 137,278 | 122,711 |
Net change in cash and cash equivalents | 73,079 | 44,705 |
Cash and cash equivalents, at beginning of period | 197,569 | 197,945 |
Cash and cash equivalents, at end of period | $ 270,648 | $ 242,650 |
The Company
The Company | 6 Months Ended |
Jun. 30, 2018 | |
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 and Aerie Pharmaceuticals Ireland Limited (“Aerie Distribution,” “Aerie Limited” and “Aerie Ireland Limited,” respectively, together with Aerie, the “Company”), is an ophthalmic pharmaceutical company focused on the discovery, development and commercialization of first-in-class therapies for the treatment of patients with open-angle glaucoma, retina diseases and other diseases of the eye. The Company has its principal executive offices in Durham, North Carolina, and operates as one business segment. The Company has a U.S. Food and Drug Administration (“FDA”) approved product, Rhopressa ® (netarsudil ophthalmic solution) 0.02% (“Rhopressa ® ”), and an advanced-stage product candidate, Roclatan TM (netarsudil/latanoprost ophthalmic solution) 0.02% / 0.005% (“Roclatan TM ”), both designed to reduce elevated intraocular pressure (“IOP”) in patients with open-angle glaucoma or ocular hypertension. The Company intends to commercialize Rhopressa ® and Roclatan TM , if approved, on its own in North American markets. The Company’s strategy also includes pursuing regulatory approval for Rhopressa ® and Roclatan TM in Europe and Japan on its own. Rhopressa ® is a once-daily eye drop designed to reduce elevated IOP in patients with open-angle glaucoma or ocular hypertension that received FDA approval on December 18, 2017. The Company launched Rhopressa ® in the United States at the end of April 2018. The Company also intends to file a marketing authorization application with the European Medicines Agency for Rhopressa ® by the end of 2018. Additionally, the Company completed a Phase 1 clinical trial and commenced a Phase 2 clinical trial in the United States, which are designed to support meeting the requirements of Japan’s Pharmaceuticals and Medical Devices Agency for potential regulatory submission of Rhopressa ® in Japan. These clinical trials have included Japanese and Japanese-American subjects. The Company is also planning to initiate an additional Phase 2 clinical trial on Japanese patients in Japan to support subsequent Phase 3 registration trials that are expected to be conducted in Japan. The Company’s advanced-stage product candidate, Roclatan TM , is a once-daily fixed-dose combination of Rhopressa ® and latanoprost. The Company submitted a New Drug Application (“NDA”) to the FDA in May 2018 under Section 505(b)(2) of the Federal Food, Drug and Cosmetic Act, which provides for an abbreviated approval pathway, since Roclatan TM is a fixed dose combination of two FDA-approved drugs in the United States. On July 23, 2018, the Company announced that the NDA was accepted for review by the FDA and the Prescription Drug User Fee Act goal date was set for March 14, 2019, which represents a ten-month review. The Company is currently conducting a Phase 3 trial, named Mercury 3, in Europe comparing Roclatan TM to Ganfort ® , a fixed-dose combination product of bimatoprost (a prostaglandin analog) and timolol marketed in Europe, which if successful, is expected to improve its commercialization prospects in that region. Mercury 3 is not necessary for approval in the United States. On July 31, 2017, the Company entered into a collaborative research, development and licensing agreement with DSM, a global science-based company headquartered in the Netherlands. The research collaboration agreement includes an option to license DSM’s bio-erodible polymer implant technology for evaluating its application to the delivery of certain Aerie compounds to treat ophthalmic diseases. This technology uses polyesteramide polymers to produce an injectable, thin fiber that is minute in size. Preclinical experiments have demonstrated early success in conjunction with Aerie’s preclinical molecule, AR-13503, including demonstration of linear, sustained elution rates over several months and achievement of target retinal drug concentrations. On August 1, 2018, the Company announced the expansion of its collaboration with DSM to provide for (i) a worldwide exclusive license for all ophthalmic indications to DSM’s polyesteramide polymer technology, (ii) continuation of the collaborative research initiatives through the end of 2020, including the transfer of DSM’s formulation technology to Aerie during that time and (iii) access to a preclinical latanoprost implant. On October 4, 2017, the Company entered into an Asset Purchase Agreement (the “Agreement”) with Envisia Therapeutics Inc. (“Envisia”) to acquire the rights to use PRINT ® technology in ophthalmology, as well as rights relating to Envisia’s preclinical dexamethasone steroid implant for the potential treatment of diabetic macular edema that utilizes the PRINT ® technology, referred to as AR-1105. The PRINT ® technology is a proprietary system capable of creating precisely-engineered sustained-release products utilizing fully-scalable manufacturing processes. The Company will also focus on using PRINT ® to manufacture injectable implants containing AR-13503, potentially in conjunction with the bio-erodible polymer from DSM. Prior to the three months ended June 30, 2018, the Company had not generated any revenue. Aerie commenced generating product revenues related to sales of Rhopressa ® in the second quarter of 2018 following its commercial launch of Rhopressa ® in the United States in late April 2018. The Company’s activities from inception until the commercial launch of Rhopressa ® in the United States 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 has funded its operations primarily through the sale of equity securities (Note 10) and issuance of convertible notes (Note 9). Subsequent to June 30, 2018, all of the Company’s $125.0 million aggregate principal amount of senior secured convertible notes (the “2014 Convertible Notes”) were converted into shares of Aerie common stock. In addition, the Company entered into a $100 million senior secured delayed draw term loan facility that matures on July 23, 2024. See Note 13, “Subsequent Events,” for additional information. If the Company does not successfully commercialize Rhopressa ® , Roclatan TM or any future product candidates, it may be unable to achieve profitability. Accordingly, the Company may be required to draw down on the credit facility it entered into in July 2018, or obtain further funding through public or private offerings, debt financings, collaboration and licensing arrangements or other sources. 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 attractive 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 | 6 Months Ended |
Jun. 30, 2018 | |
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 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, 2017 included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on March 1, 2018 (“2017 Form 10-K”). The results for the three and six months ended June 30, 2018 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 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 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, the valuation of stock-based awards and operating expense accruals. Actual results could differ from the Company’s estimates. Revenue Recognition Effective January 1, 2018, the Company adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers (“ASC Topic 606”). The Company did not generate any revenue prior to the three months ended June 30, 2018, and therefore the adoption of ASC Topic 606 did not have an impact to the Company’s financial statements for any prior periods or upon adoption. In accordance with ASC Topic 606, the Company recognizes revenue when the customer obtains control of a promised good or service, in an amount that reflects the consideration that the Company expects to receive in exchange for the good or service. The reported results for the three and six months ended June 30, 2018 reflect the application of ASC Topic 606. The Company’s net product revenues are generated through sales of Rhopressa ® , which was approved by the FDA in December 2017 and was commercially launched in the United States on April 30, 2018. See Note 3, “Revenue Recognition,” for more information. Concentration of Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash, cash equivalents and investments. The Company’s cash and cash equivalents, which include short-term highly liquid investments with original maturities of three months or less, are held at several financial institutions and at times may exceed insured limits. The Company has placed these funds in high quality institutions to minimize risk relating to exceeding insured limits. The Company’s investment policy permits investments in U.S. federal government and federal agency securities, corporate bonds or commercial paper, money market instruments, and certain qualifying money market mutual funds, and places restrictions on credit ratings, maturities, and concentration by type and issuer. The Company is exposed to credit risk in the event of a default by the financial institutions holding its cash, cash equivalents and investments to the extent recorded on the condensed consolidated balance sheet. The Company depends on single source suppliers for the active pharmaceutical ingredient in Rhopressa ® and the manufacture of finished product. The Company is in the process of adding a second contract manufacturer, which it expects may produce commercial supply by as early as the end of 2018. In addition, the Company is building a new manufacturing plant in Athlone, Ireland, which is expected to produce commercial supplies of Rhopressa ® and, if approved, Roclatan TM . Commercial supply from the Ireland manufacturing plant is expected to be available by 2020. Inventories Prior to the date the Company obtains regulatory approval for its product candidates, manufacturing costs related to commercial production for such product candidate are expensed as selling, general and administrative expense. Once regulatory approval is obtained, the Company capitalizes such costs as inventory. Inventories are stated at the lower of cost or estimated realizable value. The Company determines the cost of inventory using the first-in, first-out (“FIFO”) method. Property, Plant and Equipment, Net Property, plant and equipment is recorded at historical cost. Depreciation is calculated using the straight-line method over the estimated useful lives of the related assets. Construction-in-progress reflects amounts incurred for property, plant or equipment construction or improvements that have not been yet placed in service, which primarily relates to the build-out of the Company’s manufacturing plant in Ireland (Note 7). Repairs and maintenance are expensed when incurred. Upon retirement or sale, the cost of the assets disposed of and the related accumulated depreciation are removed from the accounts, and any resulting gain or loss is included in the determination of net loss. Estimated useful lives by major asset category are as follows: Manufacturing equipment 10 years Laboratory equipment 7 years Furniture and fixtures 5 years Software and computer equipment 3 years Leasehold improvements Lower of estimated useful life or term of lease Investments The Company determines the appropriate classification of its investments in debt and equity securities at the time of purchase. The Company’s investments are comprised of commercial paper and corporate bonds that are classified as available-for-sale in accordance with ASC Topic 320, Investments—Debt and Equity Securities . The Company classifies investments available to fund current operations as current assets on its consolidated balance sheets. Investments are classified as long-term assets on the consolidated balance sheets if (i) the Company has the intent and ability to hold the investments for a period of at least one year and (ii) the contractual maturity date of the investments is greater than one year. Available-for-sale investments in debt securities are recorded at fair value, with unrealized gains or losses included as other comprehensive loss on the condensed consolidated statements of comprehensive loss and as accumulated other comprehensive loss on the condensed consolidated balance sheets. Realized gains and losses, interest income earned on the Company’s cash, cash equivalents and investments, and amortization or accretion of discounts and premiums on investments are included within other income (expense), net. Interest income was $0.9 million and $1.7 million for the three and six months ended June 30, 2018 , respectively, and $0.4 million and $0.7 million for the three and six months ended June 30, 2017 , respectively. Realized losses of $0.2 million were reclassified out of accumulated other comprehensive loss and recognized within other income (expense), net for the three and six months ended June 30, 2018 . There were no realized gains or losses recognized during the three or six months ended June 30, 2017 . Fair Value Measurements The Company records certain financial assets and liabilities at fair value in accordance with the provisions of ASC Topic 820, Fair Value Measurements and Disclosures . As defined in the guidance, fair value, defined as an exit price, represents the amount that would be received to sell an asset or pay to transfer a liability in an orderly transaction between market participants. As a result, fair value is a market-based approach that should be determined based on assumptions that market participants would use in pricing an asset or a liability. As a basis for considering these assumptions, the guidance defines a three-tier value hierarchy that prioritizes the inputs used in the valuation methodologies in measuring fair value. • Level 1—Unadjusted quoted prices in active, accessible markets for identical assets or liabilities. • Level 2—Other inputs that are directly or indirectly observable in the marketplace. • Level 3—Unobservable inputs that are supported by little or no market activity. The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. There were no transfers between the different levels of the fair value hierarchy during the three or six months ended June 30, 2018 . Stock-Based Compensation The estimated fair value of options to purchase common stock is determined on the date of grant using the Black-Scholes option pricing model. Options granted to non-employees are revalued at each financial reporting period until the required service is performed. The fair value of restricted stock awards (“RSAs”) granted is based on the market value of Aerie’s common stock on the date of grant. Compensation expense related to time-based RSAs is expensed on a straight-line basis over the vesting period. For RSAs with non-market performance conditions, the Company evaluates the criteria for each grant to determine the probability that the performance condition will be achieved. Compensation expense for RSAs with non-market performance conditions is recognized over the respective service period when it is deemed probable that the performance condition will be satisfied. Upon issuance and at each reporting period, the fair value of each stock appreciation rights (“SARs”) award is estimated using the Black-Scholes option pricing model and is marked to market through stock-based compensation expense. SARs are liability-based awards as they may only be settled in cash. Adoption of New Accounting Standards In March 2018, the FASB issued Accounting Standards Update (“ASU”) 2018-05, Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 (“SAB 118”), which adds guidance to clarify the treatment of income taxes based on changes enacted on December 22, 2017 in H.R. 1 (commonly referred to as the “Tax Act”). ASU 2018-05 incorporates references in ASC Topic 740 to SAB 118, which was issued on December 22, 2017, to address the application of U.S. GAAP in situations when a registrant may not have the necessary information available in reasonable detail to complete the accounting for certain income tax effects. The guidance became effective immediately upon the enactment of the Tax Act in accordance with U.S. GAAP which requires deferred tax assets and liabilities to be revalued during the period in which new tax legislation is enacted. The Company’s final impact assessment on the consolidated financial statements will be completed as additional information becomes available, but no later than one year from the enactment of the Tax Act. In May 2017, the FASB issued ASU 2017-09, Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting , which clarifies when changes to the terms or conditions of share-based payment awards must be accounted for as modifications. Under ASU 2017-09, an entity will not apply modification accounting to a share-based payment award if the award’s fair value, vesting conditions and classification as an equity or liability instrument are the same immediately before and after the change. ASU 2017-09 will be applied prospectively to awards modified on or after the adoption date. The guidance became effective for the Company beginning on January 1, 2018. The impact of the adoption of this guidance on its consolidated financial statements would be dependent on future modifications to share-based payment awards, if any. In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory , which eliminates the exception to the principle in ASC Topic 740, Income Taxes , that generally requires comprehensive recognition of current and deferred income taxes for all intra-entity sales of assets other than inventory. As a result, a reporting entity would recognize the tax expense from the sale of the asset in the seller’s tax jurisdiction when the transfer occurs, even though the pre-tax effects of that transaction are eliminated in consolidation. This ASU became effective for the Company on January 1, 2018, and was required to be applied on a modified retrospective basis through a cumulative-effect adjustment directly to accumulated deficit as of the beginning of the period of adoption. At December 31, 2017, the Company had $2.1 million of income tax effects deferred from past intercompany transactions that were recorded as prepaid assets within other assets, net, at December 31, 2017 that were adjusted through accumulated deficit as of January 1, 2018. In January 2016, the FASB issued ASU 2016-01, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities , which provides guidance related to the accounting for equity investments, financial liabilities under the fair value option and the presentation and disclosure requirements for financial instruments. The guidance became effective for the Company beginning on January 1, 2018 and prescribes different transition methods for the various provisions. The adoption of ASU 2016-01 did not have a material impact on its consolidated financial statements and disclosures. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) . The standard states that an entity should recognize revenue based on the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The FASB subsequently issued amendments to ASU 2014-09 that had the same effective date of January 1, 2018. Revenue from sales of Rhopressa ® , as well as any other future revenue arrangements, are and will be recognized under the provisions of ASC Topic 606. Recent Accounting Pronouncements In June 2018, the FASB issued ASU 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting, which expands the scope of ASC Topic 718, Compensation—Stock Compensation to include share-based payments issued to nonemployees for goods or services. Consequently, the accounting for share-based payments to nonemployees and employees will be substantially aligned. This ASU is effective for the Company beginning January 1, 2019, including interim periods within that fiscal year, but early adoption is permitted. The Company does not expect the adoption of ASU 2018-07 to have a material impact on its consolidated financial statements and disclosures. In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which requires that financial assets measured at amortized cost be presented at the net amount expected to be collected. Currently, U.S. GAAP delays recognition of the full amount of credit losses until the loss is probable of occurring. Under this ASU, the income statement will reflect an entity’s current estimate of all expected credit losses. The measurement of expected credit losses will be based upon historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. Credit losses relating to available-for-sale debt securities will be recorded through an allowance for credit losses rather than as a direct write-down of the security. This ASU is effective for the Company beginning on January 1, 2020, with early adoption permitted beginning on January 1, 2019. The new guidance prescribes different transition methods for the various provisions. The Company does not expect the adoption of ASU 2016-13 to have a material impact on its consolidated financial statements and disclosures. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) (“ASU 2016-02”), which requires lessees to recognize a right of use asset and related lease liability for those leases classified as operating leases at the commencement date and for those leases that have lease terms of more than 12 months. In July 2018, the FASB issued ASU 2018-10, Codification Improvements to Topic 842, Leases (“ASU 2018-10”), which provides additional guidance or clarifications affecting certain aspects of ASU 2016-02. ASU 2016-02 and ASU 2018-10 are effective for the Company beginning on January 1, 2019, and all annual and interim periods thereafter, with early adoption permitted, and must be adopted using a modified retrospective transition approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements and provides for certain practical expedients. The Company is currently evaluating the impact of ASU 2016-02 and ASU 2018-10 on its consolidated financial statements and disclosures. 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 with the exception of warrants for common stock with a $0.05 exercise price, which are exercisable for nominal consideration and are therefore included in the calculation of the weighted average number of shares of common stock as common stock equivalents. 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 is 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 SIX MONTHS ENDED 2018 2017 2018 2017 2014 Convertible Notes 5,040,323 5,040,323 5,040,323 5,040,323 Outstanding stock options 7,046,345 6,028,083 7,046,345 6,028,083 Stock purchase warrants 154,500 157,500 154,500 157,500 Nonvested restricted stock awards 581,602 353,660 581,602 353,660 Total 12,822,770 11,579,566 12,822,770 11,579,566 Subsequent to June 30, 2018, the entire outstanding principal amount of the 2014 Convertible Notes were converted into shares of Aerie common stock. See Note 13, "Subsequent Events," for additional information. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition In accordance with ASC Topic 606, the Company recognizes revenues when its customers obtain control of its product in an amount that reflects the consideration it expects to receive from its customers in exchange for that product. To determine revenue recognition for contracts that are determined to be in scope of ASC Topic 606, the Company performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the Company satisfies the performance obligation. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. Once the contract is determined to be within the scope of ASC Topic 606, the Company assesses the goods or services promised within each contract and determines those that are performance obligations and assesses whether each promised good or service is distinct. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when such performance obligation is satisfied. Shipping and handling costs related to the Company’s product sales are included in selling, general and administrative expenses. Net product revenues for the three and six months ended June 30, 2018 were derived from sales of Rhopressa ® in the United States to customers, which include a limited number of national and select regional wholesalers (the “Distributors”). These Distributors subsequently resell the product, primarily to retail pharmacies that dispense the product to patients. The Company expenses incremental costs of obtaining a contract as and when incurred if the expected amortization period of the asset that would have been recognized is one year or less or the amount is immaterial. The product that is ultimately used by patients is generally covered by third-party payers, such as government or private healthcare insurers and pharmacy benefit managers (“Third-party Payers”) and may be subject to rebates and discounts payable directly to those Third-party Payers. The Company has already obtained coverage in some commercial and Medicare Part D plans and is in the process of increasing those levels of coverage. In the glaucoma market in the United States, approximately half of the volumes are covered under commercial plans and half under Medicare Part D. Medicare Part D coverage would normally commence for Rhopressa ® , as with other new products, on January 1, 2019. However, there have been early acceptances of Rhopressa ® onto certain Medicare Part D plans, commencing as early as June 1, 2018. Product revenue is recorded net of trade discounts, allowances, rebates, chargebacks, estimated returns and other incentives, discussed below. These reserves are classified as either reductions of accounts receivable or as current liabilities based on the expected method of settlement. Amounts billed or invoiced are included in accounts receivable, net on the condensed consolidated balance sheet. The Company did not have any contract assets (unbilled receivables) at June 30, 2018, as customer invoicing generally occurs before or at the time of revenue recognition. The Company did not have any contract liabilities at June 30, 2018, as the Company did not receive payments in advance of fulfilling its performance obligations to its customers. Net product revenue is typically recognized when Distributors obtain control of the Company’s product, which occurs at a point in time, typically upon delivery of Rhopressa ® to the Distributors. For the three months ended June 30, 2018, three Distributors accounted for 34% , 33% and 30% of total revenues, respectively. The Company evaluates the creditworthiness of each of its Distributors to determine whether it is probable that a significant reversal in the amount of the cumulative revenue recognized will not occur. We do not assess whether a contract has a significant financing component if the expectation is such that the period between the transfer of the promised goods to the customer and the receipt of payment will be less than one year. Standard credit terms do not exceed 75 days. The Company calculates its net product revenue based on the wholesale acquisition cost that the Company charges its Distributors for Rhopressa ® less variable consideration. Variable consideration consists of estimates relating to (i) trade discounts and allowances, such as discounts for prompt payment and Distributor fees, (ii) estimated rebates, chargebacks and other discounts payable to Third-party Payers and (iii) reserves for expected product returns. The estimates of reserves established for variable consideration reflect current contractual and statutory requirements, known market events and trends, industry data and forecasted customer mix. The transaction price, which includes variable consideration reflecting the impact of discounts and allowances, may be subject to constraint and is included in the net product revenues only to the extent that it is probable that a significant reversal of the amount of the cumulative revenues recognized will not occur in a future period. Actual amounts may ultimately differ from these estimates. If actual results vary, estimates may be adjusted in the period such change in estimate becomes known, which could have an impact on earnings in the period of adjustment. Trade Discounts and Allowances : The Company generally provides discounts on sales of Rhopressa ® 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 ® . The Company estimates the rebates 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 and chargebacks that it expects to be obligated to provide to Third-party Payers based upon (i) the Company's contracts and negotiations with these Third-party Payers, (ii) estimates regarding the payer mix for Rhopressa ® and (iii) historical industry information regarding the payer mix for comparable pharmaceutical products and product portfolios. Other discounts include the Company’s co-pay assistance 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 ® 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 industry information regarding rates for comparable pharmaceutical products and product portfolios, the estimated remaining shelf life of Rhopressa ® 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 product would be eligible to be returned. |
Investments
Investments | 6 Months Ended |
Jun. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments Cash, cash equivalents and investments as of June 30, 2018 included the following: (in thousands) AMORTIZED COST GROSS UNREALIZED GAINS GROSS UNREALIZED LOSSES FAIR VALUE Cash and cash equivalents: Cash and money market funds $ 270,648 $ — $ — $ 270,648 Total cash and cash equivalents $ 270,648 $ — $ — $ 270,648 Investments: Commercial paper (due within 1 year) $ 9,991 $ — $ — $ 9,991 Corporate bonds (due within 1 year) 5,473 — (9 ) 5,464 Total investments $ 15,464 $ — $ (9 ) $ 15,455 Total cash, cash equivalents and investments $ 286,112 $ — $ (9 ) $ 286,103 Cash, cash equivalents and investments as of December 31, 2017 included the following: (in thousands) AMORTIZED COST GROSS UNREALIZED GAINS GROSS UNREALIZED LOSSES FAIR VALUE Cash and cash equivalents: Cash and money market funds $ 197,569 $ — $ — $ 197,569 Total cash and cash equivalents $ 197,569 $ — $ — $ 197,569 Investments: Commercial paper (due within 1 year) $ 30,883 $ — $ — $ 30,883 Corporate bonds (due within 1 year) 21,231 — (28 ) 21,203 Total investments $ 52,114 $ — $ (28 ) $ 52,086 Total cash, cash equivalents and investments $ 249,683 $ — $ (28 ) $ 249,655 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2018 | |
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 JUNE 30, 2018 (in thousands) Level 1 Level 2 Level 3 Total Cash and cash equivalents: Cash and money market funds $ 270,648 $ — $ — $ 270,648 Total cash and cash equivalents $ 270,648 $ — $ — $ 270,648 Investments: Commercial paper $ — $ 9,991 $ — $ 9,991 Corporate bonds — 5,464 — 5,464 Total investments $ — $ 15,455 $ — $ 15,455 Total cash, cash equivalents and investments $ 270,648 $ 15,455 $ — $ 286,103 FAIR VALUE MEASUREMENTS AS OF DECEMBER 31, 2017 (in thousands) Level 1 Level 2 Level 3 Total Cash and cash equivalents: Cash and money market funds $ 197,569 $ — $ — $ 197,569 Total cash and cash equivalents $ 197,569 $ — $ — $ 197,569 Investments: Commercial paper $ — $ 30,883 $ — $ 30,883 Corporate bonds — 21,203 — 21,203 Total investments $ — $ 52,086 $ — $ 52,086 Total cash, cash equivalents and investments $ 197,569 $ 52,086 $ — $ 249,655 Convertible Notes As of June 30, 2018 and December 31, 2017 , the estimated fair value of the $125.0 million aggregate principal amount of the 2014 Convertible Notes was $361.7 million and $327.6 million , respectively. The estimated fair value of the 2014 Convertible Notes require the use of Level 3 unobservable inputs and subjective assumptions. The estimates presented are not necessarily indicative of amounts that could be realized in a current market exchange. The use of alternative market assumptions and estimation methodologies could have a material effect on these estimates of fair value. In July 2018, the entire outstanding principal amount of the 2014 Convertible Notes were converted into shares of Aerie common stock. See Note 13, “Subsequent Events,” for additional information. |
Inventory
Inventory | 6 Months Ended |
Jun. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Inventory | Inventory Inventory consists of the following: (in thousands) JUNE 30, 2018 Raw materials $ 507 Work-in-process 2,248 Finished goods 2,992 Total inventory $ 5,747 The Company commenced capitalizing inventory for Rhopressa ® upon FDA approval of Rhopressa ® on December 18, 2017. No inventory was produced from the FDA approval date through the end of 2017; therefore, no inventory was capitalized on the consolidated balance sheet as of December 31, 2017 . |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 6 Months Ended |
Jun. 30, 2018 | |
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) JUNE 30, 2018 DECEMBER 31, 2017 Manufacturing equipment $ 2,122 $ 2,082 Laboratory equipment 4,404 3,602 Furniture and fixtures 1,512 1,209 Software and computer equipment 2,218 1,932 Leasehold improvements 3,318 1,887 Construction-in-progress 45,449 24,228 59,023 34,940 Less: Accumulated depreciation (4,144 ) (3,008 ) Total property, plant and equipment, net $ 54,879 $ 31,932 Manufacturing Plant Build-Out In January 2017, the Company entered into a Euro-denominated lease agreement, expiring in September 2037, for a new manufacturing plant in Athlone, Ireland, under which the Company is leasing approximately 30,000 square feet of interior floor space for build-out. The Company is permitted to terminate the lease beginning in September 2027. The Company is not the legal owner of the leased space. However, in accordance with ASC Topic 840, Leases , the Company is deemed to be the owner of the leased space, including the building shell, during the construction period because of the Company’s expected level of direct financial and operational involvement in the substantial tenant improvements required. As a result, the Company capitalized approximately $4.2 million as a build-to-suit asset within property, plant and equipment, net and recognized a corresponding build-to-suit facility lease obligation as a liability on its condensed consolidated balance sheets equal to the estimated replacement cost of the building at the inception of the lease. Additionally, equipment and construction costs incurred as part of the build-out are also capitalized within property, plant and equipment, net, as construction-in-progress. Capital expenditures related to the manufacturing plant totaled approximately $21.2 million during the six months ended June 30, 2018. Rental payments made under the lease will be allocated to interest expense and the build-to-suit facility lease obligation based on the implicit rate of the build-to-suit facility lease obligation. The build-to-suit facility lease obligation was approximately $4.7 million as of June 30, 2018 , of which $0.3 million was classified as other current liabilities. The build-to-suit facility lease obligation was approximately $4.9 million as of December 31, 2017 . The lease obligation is denominated in Euros and is remeasured to U.S. dollars at the balance sheet date with any foreign exchange gain or loss recognized within other income (expense), net on the condensed consolidated statements of operations and comprehensive loss. Unrealized foreign currency gain related to the remeasurement of the lease obligation was $0.3 million and $0.1 million for the three and six months ended June 30, 2018 , respectively. The Company had unrealized foreign currency losses related to the remeasurement of the lease obligation of $0.3 million and $0.4 million for the three and six months ended June 30, 2017 . |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 6 Months Ended |
Jun. 30, 2018 | |
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) JUNE 30, 2018 DECEMBER 31, 2017 Accrued compensation and benefits $ 6,890 $ 7,886 Accrued consulting and professional fees 3,601 3,841 Accrued research and development expenses (1) 1,742 1,855 Accrued other (2) 7,783 5,357 Total accrued expenses and other current liabilities $ 20,016 $ 18,939 (1) Comprised of accruals related to fees for investigative sites, contract research organizations, contract manufacturing organizations and other service providers that assist in conducting preclinical research studies and clinical trials. (2) Comprised of accruals related to commercial manufacturing activities prior to FDA approval of Rhopressa ® , interest payable and other business-related expenses. |
Convertible Notes
Convertible Notes | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Convertible Notes | Convertible Notes In September 2014, Aerie issued $125.0 million aggregate principal amount of the 2014 Convertible Notes to Deerfield Partners, L.P., Deerfield International Master Fund, L.P., Deerfield Private Design Fund III, L.P., Deerfield Special Situations Fund, L.P. and Deerfield Special Situations International Master Fund, L.P., collectively with their transferees, “Deerfield.” The 2014 Convertible Notes were issued pursuant to a note purchase agreement (as amended and supplemented from time to time, the “Note Purchase Agreement”), dated as of September 8, 2014, among Aerie and the Deerfield entities party thereto. The 2014 Convertible Notes were scheduled to mature on the seventh anniversary from the date of issuance , unless earlier converted. In July 2018, Deerfield converted the entire outstanding principal amount of the 2014 Convertible Notes into shares of Aerie common stock. See Note 13, “Subsequent Events,” for additional information. The 2014 Convertible Notes were guaranteed on a senior secured basis by Aerie Distribution. The 2014 Convertible Notes constituted the senior secured obligations of Aerie and Aerie Distribution, collateralized by a first-priority security interest in substantially all of the assets of Aerie and Aerie Distribution. The 2014 Convertible Notes were convertible at any time at the option of Deerfield, in whole or in part, into shares of common stock. The initial conversion price was $24.80 per share of common stock (equivalent to an initial conversion rate of 40.32 shares of common stock per $1,000 principal amount of 2014 Convertible Notes), representing a 30% premium over the closing price of the common stock on September 8, 2014. The Note Purchase Agreement contained various representations and warranties, and affirmative and negative covenants customary for financings of this type, including restrictions on the incurrence of additional debt and liens on Aerie’s and its subsidiaries’ assets. As of June 30, 2018 , Aerie was in compliance with the covenants. The 2014 Convertible Notes bore interest at a rate of 1.75% per annum payable quarterly in arrears on the first business day of each January, April, July and October. The Company recorded the 2014 Convertible Notes as long-term debt at face value less $2.1 million in debt discount and issuance costs incurred at the time of the transaction, which were being amortized to interest expense using the effective interest method through the maturity of the 2014 Convertible Notes. The table below summarizes the carrying value of the 2014 Convertible Notes as of June 30, 2018 and December 31, 2017 : (in thousands) JUNE 30, 2018 DECEMBER 31, 2017 Gross proceeds $ 125,000 $ 125,000 Unamortized debt discount and issuance costs (1,001 ) (1,155 ) Carrying value $ 123,999 $ 123,845 Interest expense related to the 2014 Convertible Notes, including amortization of debt discount and issuance costs, was $0.5 million and $1.0 million for the three and six months ended June 30, 2018 , respectively. Interest expense related to the 2014 Convertible Notes, including amortization of debt discount and issuance costs, was $0.6 million and $1.2 million for the three and six months ended June 30, 2017 , respectively. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity During the six months ended June 30, 2018 , Aerie issued and sold approximately 1.0 million shares of Aerie’s common stock and received net proceeds of approximately $62.3 million , after deducting $0.5 million of fees and expenses, under the “at-the-market” sales agreement that commenced in December 2017. There are no remaining shares available for issuance under the ATM that commenced in December 2017. In addition, the Company entered into an underwriting agreement, dated January 23, 2018, related to the registered public offering of approximately 1.3 million shares of Aerie’s common stock and received net proceeds of approximately $74.1 million , after deducting $0.9 million of underwriting discounts, fees and expenses. The transactions were made pursuant to an automatic shelf registration on Form S-3, filed with the SEC on September 15, 2016, that permits the offering, issuance and sale of an unlimited number of shares of common stock from time to time by Aerie. Warrants As of June 30, 2018 , the following equity-classified warrants to purchase common stock were outstanding: NUMBER OF UNDERLYING SHARES EXERCISE PRICE PER SHARE WARRANT EXPIRATION DATE 75,000 $5.00 February 2019 75,000 $5.00 November 2019 4,500 $5.00 August 2020 223,482 $0.05 December 2019 The warrants outstanding as of June 30, 2018 are all currently exercisable. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Stock-based compensation expense for options granted, RSAs, performance stock awards (“PSAs”), SARs and stock purchase rights is reflected in the condensed consolidated statements of operations and comprehensive loss as follows: THREE MONTHS ENDED SIX MONTHS ENDED (in thousands) 2018 2017 2018 2017 Selling, general and administrative $ 7,760 $ 5,251 $ 14,444 $ 9,037 Research and development 2,558 1,414 4,593 2,478 Total $ 10,318 $ 6,665 $ 19,037 $ 11,515 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”), as described below. The 2005 Plan, the Second Amended and Restated Equity Plan and the Inducement Award Plan are referred to collectively as the “Plans.” On October 30, 2013, the effective date of the 2013 Equity Plan, the 2005 Plan was frozen and no additional awards have been or will be made under the 2005 Plan. Any remaining shares available for future grant under the 2005 Plan were allocated to the 2013 Equity Plan. On April 10, 2015, Aerie’s stockholders approved the adoption of the Aerie Pharmaceuticals, Inc. Amended and Restated Omnibus Incentive Plan (“Amended and Restated Equity Plan”) and no additional awards have been or will be made under the 2013 Equity Plan. Any remaining shares available under the 2013 Equity Plan were allocated to the Amended and Restated Equity Plan. On June 7, 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 Aerie common stock, including equity awards that were previously available for issuance under the 2013 Equity Plan. On December 7, 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 was subsequently amended during the year ended December 31, 2017 to increase the equity awards that may be issued by an additional 874,500 shares. Awards granted under the Inducement Award Plan 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 AVERAGE WEIGHTED AGGREGATE Options outstanding at December 31, 2017 6,457,343 $ 22.15 Granted 1,047,134 56.05 Exercised (363,559 ) 10.68 Canceled (94,573 ) 44.35 Options outstanding at June 30, 2018 7,046,345 $ 27.46 7.1 $ 282,490 Options exercisable at June 30, 2018 4,403,259 $ 16.41 6.0 $ 225,165 As of June 30, 2018 , the Company had $79.9 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 3.0 years as of June 30, 2018 . Restricted Stock Awards The following table summarizes the RSAs, including PSAs, activity under the Plans: NUMBER OF SHARES WEIGHTED AVERAGE FAIR VALUE PER SHARE Nonvested RSAs at December 31, 2017 447,049 $ 41.08 Granted 254,216 55.92 Vested (114,335 ) 37.15 Canceled (5,328 ) 48.21 Nonvested RSAs at June 30, 2018 581,602 $ 48.27 As of June 30, 2018 , the Company had $21.5 million of unrecognized compensation expense related to unvested RSAs, including PSAs. This expense is expected to be recognized over the weighted average period of 3.1 years as of June 30, 2018 . The vesting of the RSAs is time and service based with terms of one to four years. During the year ended December 31, 2017 , the Company granted 98,817 PSAs with non-market performance conditions that vest upon the satisfaction of certain performance conditions and service conditions. During the six months ended June 30, 2018, there were 19,764 PSAs that vested. Stock Appreciation Rights During the six months ended June 30, 2018 , the Company granted 100,000 SARs awards at a weighted average exercise price of $54.08 and had a weighted average remaining contractual life of 4.7 years . All of these awards were outstanding at June 30, 2018 . Holders of the SARs are entitled under the terms of the Plans to receive cash payments calculated based on the excess of the Company’s common stock price over the target 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 | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Company may periodically become subject to legal proceedings and claims arising in connection with its business. Except as previously disclosed for matters which have now concluded, the Company is not a party to any known litigation, is not aware of any unasserted claims and does not have contingency reserves established for any litigation liabilities. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Conversion of 2014 Convertible Notes On July 23, 2018, Aerie entered into an Exchange and Termination Agreement (the “Exchange and Termination Agreement”) with Deerfield Private Design Fund III, L.P., Deerfield Partners, L.P. and Deerfield Special Situations Fund, L.P. (collectively, the “Holders”). Pursuant to the Exchange and Termination Agreement, (i) the Holders converted the entire outstanding principal amount of the 2014 Convertible Notes into 5,040,323 shares of Common Stock (the “Conversion Shares”) in accordance with the terms of the 2014 Convertible Notes, (ii) Aerie issued the Conversion Shares, and (iii) Aerie paid accrued and unpaid interest on the Convertible Notes through July 23, 2018. In addition, as mutually agreed to with the Holders in order to complete the conversion on the date of the Exchange and Termination Agreement, Aerie issued an additional 329,124 shares of Common Stock (the “Additional Shares”) to the Holders. Aerie expects to expense the value of the Additional Shares in the amount of approximately $24 million during the third quarter of 2018. Entry into Credit Facility On July 23, 2018, Aerie entered into a credit agreement (as amended on August 7, 2018) with certain entities affiliated with Deerfield Management Company L.P. providing for a $100 million senior secured delayed draw term loan facility (the “credit facility”). The credit facility includes fees upon drawdown of 1.75% of amounts drawn, an 8.625% annual interest rate on drawn amounts, and annual fees on undrawn amounts of 1.5% . The allowable draw period ends two years from the effective date of the credit facility. Fees on undrawn amounts accrue but are not payable until July 23, 2020, and no principal payments will be due on drawn amounts, if any, until July 23, 2020. The credit facility matures on July 23, 2024. The credit facility has certain covenants and prepayment provisions and may be terminated by Aerie at any time for a one-time fee of $1.5 million . No funds were drawn at closing. Collaboration Agreement with DSM On August 1, 2018, the Company announced that it entered into an Amended and Restated Collaborative Research, Development, and License Agreement with DSM (the “Collaboration Agreement”), which provides for (i) a worldwide exclusive license for all ophthalmic indications to DSM’s polyesteramide polymer technology, (ii) continuation of the collaborative research initiatives through the end of 2020, including the transfer of DSM’s formulation technology to Aerie during that time and (iii) access to a preclinical latanoprost implant. Aerie paid $6.0 million to DSM upon execution of the Collaboration Agreement, with an additional $9.0 million payable to DSM through the end of 2020. The Collaboration Agreement also includes contingent payments that may be due to DSM upon the achievement of certain development and regulatory milestones. Aerie would also pay royalties to DSM when products are commercialized under this Collaborative Agreement, if any. |
Significant Accounting Polici19
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
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 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, 2017 included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on March 1, 2018 (“2017 Form 10-K”). The results for the three and six months ended June 30, 2018 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 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 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, the valuation of stock-based awards and operating expense accruals. Actual results could differ from the Company’s estimates. |
Revenue Recognition | Revenue Recognition Effective January 1, 2018, the Company adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers (“ASC Topic 606”). The Company did not generate any revenue prior to the three months ended June 30, 2018, and therefore the adoption of ASC Topic 606 did not have an impact to the Company’s financial statements for any prior periods or upon adoption. In accordance with ASC Topic 606, the Company recognizes revenue when the customer obtains control of a promised good or service, in an amount that reflects the consideration that the Company expects to receive in exchange for the good or service. The reported results for the three and six months ended June 30, 2018 reflect the application of ASC Topic 606. The Company’s net product revenues are generated through sales of Rhopressa ® , which was approved by the FDA in December 2017 and was commercially launched in the United States on April 30, 2018. See Note 3, “Revenue Recognition,” for more information. |
Concentration of Risk | Concentration of Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash, cash equivalents and investments. The Company’s cash and cash equivalents, which include short-term highly liquid investments with original maturities of three months or less, are held at several financial institutions and at times may exceed insured limits. The Company has placed these funds in high quality institutions to minimize risk relating to exceeding insured limits. The Company’s investment policy permits investments in U.S. federal government and federal agency securities, corporate bonds or commercial paper, money market instruments, and certain qualifying money market mutual funds, and places restrictions on credit ratings, maturities, and concentration by type and issuer. The Company is exposed to credit risk in the event of a default by the financial institutions holding its cash, cash equivalents and investments to the extent recorded on the condensed consolidated balance sheet. The Company depends on single source suppliers for the active pharmaceutical ingredient in Rhopressa ® and the manufacture of finished product. The Company is in the process of adding a second contract manufacturer, which it expects may produce commercial supply by as early as the end of 2018. In addition, the Company is building a new manufacturing plant in Athlone, Ireland, which is expected to produce commercial supplies of Rhopressa ® and, if approved, Roclatan TM . Commercial supply from the Ireland manufacturing plant is expected to be available by 2020. |
Inventories | Inventories Prior to the date the Company obtains regulatory approval for its product candidates, manufacturing costs related to commercial production for such product candidate are expensed as selling, general and administrative expense. Once regulatory approval is obtained, the Company capitalizes such costs as inventory. Inventories are stated at the lower of cost or estimated realizable value. The Company determines the cost of inventory using the first-in, first-out (“FIFO”) method. |
Property, Plant and Equipment, Net | Property, Plant and Equipment, Net Property, plant and equipment is recorded at historical cost. Depreciation is calculated using the straight-line method over the estimated useful lives of the related assets. Construction-in-progress reflects amounts incurred for property, plant or equipment construction or improvements that have not been yet placed in service, which primarily relates to the build-out of the Company’s manufacturing plant in Ireland (Note 7). Repairs and maintenance are expensed when incurred. Upon retirement or sale, the cost of the assets disposed of and the related accumulated depreciation are removed from the accounts, and any resulting gain or loss is included in the determination of net loss. |
Investments | Investments The Company determines the appropriate classification of its investments in debt and equity securities at the time of purchase. The Company’s investments are comprised of commercial paper and corporate bonds that are classified as available-for-sale in accordance with ASC Topic 320, Investments—Debt and Equity Securities . The Company classifies investments available to fund current operations as current assets on its consolidated balance sheets. Investments are classified as long-term assets on the consolidated balance sheets if (i) the Company has the intent and ability to hold the investments for a period of at least one year and (ii) the contractual maturity date of the investments is greater than one year. Available-for-sale investments in debt securities are recorded at fair value, with unrealized gains or losses included as other comprehensive loss on the condensed consolidated statements of comprehensive loss and as accumulated other comprehensive loss on the condensed consolidated balance sheets. Realized gains and losses, interest income earned on the Company’s cash, cash equivalents and investments, and amortization or accretion of discounts and premiums on investments are included within other income (expense), net. |
Fair Value Measurements | Fair Value Measurements The Company records certain financial assets and liabilities at fair value in accordance with the provisions of ASC Topic 820, Fair Value Measurements and Disclosures . As defined in the guidance, fair value, defined as an exit price, represents the amount that would be received to sell an asset or pay to transfer a liability in an orderly transaction between market participants. As a result, fair value is a market-based approach that should be determined based on assumptions that market participants would use in pricing an asset or a liability. As a basis for considering these assumptions, the guidance defines a three-tier value hierarchy that prioritizes the inputs used in the valuation methodologies in measuring fair value. • Level 1—Unadjusted quoted prices in active, accessible markets for identical assets or liabilities. • Level 2—Other inputs that are directly or indirectly observable in the marketplace. • Level 3—Unobservable inputs that are supported by little or no market activity. The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. |
Stock-Based Compensation | Stock-Based Compensation The estimated fair value of options to purchase common stock is determined on the date of grant using the Black-Scholes option pricing model. Options granted to non-employees are revalued at each financial reporting period until the required service is performed. The fair value of restricted stock awards (“RSAs”) granted is based on the market value of Aerie’s common stock on the date of grant. Compensation expense related to time-based RSAs is expensed on a straight-line basis over the vesting period. For RSAs with non-market performance conditions, the Company evaluates the criteria for each grant to determine the probability that the performance condition will be achieved. Compensation expense for RSAs with non-market performance conditions is recognized over the respective service period when it is deemed probable that the performance condition will be satisfied. Upon issuance and at each reporting period, the fair value of each stock appreciation rights (“SARs”) award is estimated using the Black-Scholes option pricing model and is marked to market through stock-based compensation expense. SARs are liability-based awards as they may only be settled in cash. |
Adoption of New Accounting Standards and Recent Accounting Pronouncements | Adoption of New Accounting Standards In March 2018, the FASB issued Accounting Standards Update (“ASU”) 2018-05, Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 (“SAB 118”), which adds guidance to clarify the treatment of income taxes based on changes enacted on December 22, 2017 in H.R. 1 (commonly referred to as the “Tax Act”). ASU 2018-05 incorporates references in ASC Topic 740 to SAB 118, which was issued on December 22, 2017, to address the application of U.S. GAAP in situations when a registrant may not have the necessary information available in reasonable detail to complete the accounting for certain income tax effects. The guidance became effective immediately upon the enactment of the Tax Act in accordance with U.S. GAAP which requires deferred tax assets and liabilities to be revalued during the period in which new tax legislation is enacted. The Company’s final impact assessment on the consolidated financial statements will be completed as additional information becomes available, but no later than one year from the enactment of the Tax Act. In May 2017, the FASB issued ASU 2017-09, Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting , which clarifies when changes to the terms or conditions of share-based payment awards must be accounted for as modifications. Under ASU 2017-09, an entity will not apply modification accounting to a share-based payment award if the award’s fair value, vesting conditions and classification as an equity or liability instrument are the same immediately before and after the change. ASU 2017-09 will be applied prospectively to awards modified on or after the adoption date. The guidance became effective for the Company beginning on January 1, 2018. The impact of the adoption of this guidance on its consolidated financial statements would be dependent on future modifications to share-based payment awards, if any. In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory , which eliminates the exception to the principle in ASC Topic 740, Income Taxes , that generally requires comprehensive recognition of current and deferred income taxes for all intra-entity sales of assets other than inventory. As a result, a reporting entity would recognize the tax expense from the sale of the asset in the seller’s tax jurisdiction when the transfer occurs, even though the pre-tax effects of that transaction are eliminated in consolidation. This ASU became effective for the Company on January 1, 2018, and was required to be applied on a modified retrospective basis through a cumulative-effect adjustment directly to accumulated deficit as of the beginning of the period of adoption. At December 31, 2017, the Company had $2.1 million of income tax effects deferred from past intercompany transactions that were recorded as prepaid assets within other assets, net, at December 31, 2017 that were adjusted through accumulated deficit as of January 1, 2018. In January 2016, the FASB issued ASU 2016-01, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities , which provides guidance related to the accounting for equity investments, financial liabilities under the fair value option and the presentation and disclosure requirements for financial instruments. The guidance became effective for the Company beginning on January 1, 2018 and prescribes different transition methods for the various provisions. The adoption of ASU 2016-01 did not have a material impact on its consolidated financial statements and disclosures. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) . The standard states that an entity should recognize revenue based on the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The FASB subsequently issued amendments to ASU 2014-09 that had the same effective date of January 1, 2018. Revenue from sales of Rhopressa ® , as well as any other future revenue arrangements, are and will be recognized under the provisions of ASC Topic 606. Recent Accounting Pronouncements In June 2018, the FASB issued ASU 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting, which expands the scope of ASC Topic 718, Compensation—Stock Compensation to include share-based payments issued to nonemployees for goods or services. Consequently, the accounting for share-based payments to nonemployees and employees will be substantially aligned. This ASU is effective for the Company beginning January 1, 2019, including interim periods within that fiscal year, but early adoption is permitted. The Company does not expect the adoption of ASU 2018-07 to have a material impact on its consolidated financial statements and disclosures. In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which requires that financial assets measured at amortized cost be presented at the net amount expected to be collected. Currently, U.S. GAAP delays recognition of the full amount of credit losses until the loss is probable of occurring. Under this ASU, the income statement will reflect an entity’s current estimate of all expected credit losses. The measurement of expected credit losses will be based upon historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. Credit losses relating to available-for-sale debt securities will be recorded through an allowance for credit losses rather than as a direct write-down of the security. This ASU is effective for the Company beginning on January 1, 2020, with early adoption permitted beginning on January 1, 2019. The new guidance prescribes different transition methods for the various provisions. The Company does not expect the adoption of ASU 2016-13 to have a material impact on its consolidated financial statements and disclosures. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) (“ASU 2016-02”), which requires lessees to recognize a right of use asset and related lease liability for those leases classified as operating leases at the commencement date and for those leases that have lease terms of more than 12 months. In July 2018, the FASB issued ASU 2018-10, Codification Improvements to Topic 842, Leases (“ASU 2018-10”), which provides additional guidance or clarifications affecting certain aspects of ASU 2016-02. ASU 2016-02 and ASU 2018-10 are effective for the Company beginning on January 1, 2019, and all annual and interim periods thereafter, with early adoption permitted, and must be adopted using a modified retrospective transition approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements and provides for certain practical expedients. The Company is currently evaluating the impact of ASU 2016-02 and ASU 2018-10 on its consolidated financial statements and disclosures. |
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 with the exception of warrants for common stock with a $0.05 exercise price, which are exercisable for nominal consideration and are therefore included in the calculation of the weighted average number of shares of common stock as common stock equivalents. 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 is 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 Polici20
Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Schedule of Estimated Useful Lives | Estimated useful lives by major asset category are as follows: Manufacturing equipment 10 years Laboratory equipment 7 years Furniture and fixtures 5 years Software and computer equipment 3 years Leasehold improvements Lower of estimated useful life or term of lease Property, plant and equipment, net consists of the following: (in thousands) JUNE 30, 2018 DECEMBER 31, 2017 Manufacturing equipment $ 2,122 $ 2,082 Laboratory equipment 4,404 3,602 Furniture and fixtures 1,512 1,209 Software and computer equipment 2,218 1,932 Leasehold improvements 3,318 1,887 Construction-in-progress 45,449 24,228 59,023 34,940 Less: Accumulated depreciation (4,144 ) (3,008 ) Total property, plant and equipment, net $ 54,879 $ 31,932 |
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 SIX MONTHS ENDED 2018 2017 2018 2017 2014 Convertible Notes 5,040,323 5,040,323 5,040,323 5,040,323 Outstanding stock options 7,046,345 6,028,083 7,046,345 6,028,083 Stock purchase warrants 154,500 157,500 154,500 157,500 Nonvested restricted stock awards 581,602 353,660 581,602 353,660 Total 12,822,770 11,579,566 12,822,770 11,579,566 |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Cash, Cash Equivalents and Investments | Cash, cash equivalents and investments as of June 30, 2018 included the following: (in thousands) AMORTIZED COST GROSS UNREALIZED GAINS GROSS UNREALIZED LOSSES FAIR VALUE Cash and cash equivalents: Cash and money market funds $ 270,648 $ — $ — $ 270,648 Total cash and cash equivalents $ 270,648 $ — $ — $ 270,648 Investments: Commercial paper (due within 1 year) $ 9,991 $ — $ — $ 9,991 Corporate bonds (due within 1 year) 5,473 — (9 ) 5,464 Total investments $ 15,464 $ — $ (9 ) $ 15,455 Total cash, cash equivalents and investments $ 286,112 $ — $ (9 ) $ 286,103 Cash, cash equivalents and investments as of December 31, 2017 included the following: (in thousands) AMORTIZED COST GROSS UNREALIZED GAINS GROSS UNREALIZED LOSSES FAIR VALUE Cash and cash equivalents: Cash and money market funds $ 197,569 $ — $ — $ 197,569 Total cash and cash equivalents $ 197,569 $ — $ — $ 197,569 Investments: Commercial paper (due within 1 year) $ 30,883 $ — $ — $ 30,883 Corporate bonds (due within 1 year) 21,231 — (28 ) 21,203 Total investments $ 52,114 $ — $ (28 ) $ 52,086 Total cash, cash equivalents and investments $ 249,683 $ — $ (28 ) $ 249,655 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
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 JUNE 30, 2018 (in thousands) Level 1 Level 2 Level 3 Total Cash and cash equivalents: Cash and money market funds $ 270,648 $ — $ — $ 270,648 Total cash and cash equivalents $ 270,648 $ — $ — $ 270,648 Investments: Commercial paper $ — $ 9,991 $ — $ 9,991 Corporate bonds — 5,464 — 5,464 Total investments $ — $ 15,455 $ — $ 15,455 Total cash, cash equivalents and investments $ 270,648 $ 15,455 $ — $ 286,103 FAIR VALUE MEASUREMENTS AS OF DECEMBER 31, 2017 (in thousands) Level 1 Level 2 Level 3 Total Cash and cash equivalents: Cash and money market funds $ 197,569 $ — $ — $ 197,569 Total cash and cash equivalents $ 197,569 $ — $ — $ 197,569 Investments: Commercial paper $ — $ 30,883 $ — $ 30,883 Corporate bonds — 21,203 — 21,203 Total investments $ — $ 52,086 $ — $ 52,086 Total cash, cash equivalents and investments $ 197,569 $ 52,086 $ — $ 249,655 |
Inventory (Tables)
Inventory (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventory consists of the following: (in thousands) JUNE 30, 2018 Raw materials $ 507 Work-in-process 2,248 Finished goods 2,992 Total inventory $ 5,747 |
Property, Plant and Equipment24
Property, Plant and Equipment, Net (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Estimated useful lives by major asset category are as follows: Manufacturing equipment 10 years Laboratory equipment 7 years Furniture and fixtures 5 years Software and computer equipment 3 years Leasehold improvements Lower of estimated useful life or term of lease Property, plant and equipment, net consists of the following: (in thousands) JUNE 30, 2018 DECEMBER 31, 2017 Manufacturing equipment $ 2,122 $ 2,082 Laboratory equipment 4,404 3,602 Furniture and fixtures 1,512 1,209 Software and computer equipment 2,218 1,932 Leasehold improvements 3,318 1,887 Construction-in-progress 45,449 24,228 59,023 34,940 Less: Accumulated depreciation (4,144 ) (3,008 ) Total property, plant and equipment, net $ 54,879 $ 31,932 |
Accrued Expenses and Other Cu25
Accrued Expenses and Other Current Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Payables and Accruals [Abstract] | |
Summary of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consist of the following: (in thousands) JUNE 30, 2018 DECEMBER 31, 2017 Accrued compensation and benefits $ 6,890 $ 7,886 Accrued consulting and professional fees 3,601 3,841 Accrued research and development expenses (1) 1,742 1,855 Accrued other (2) 7,783 5,357 Total accrued expenses and other current liabilities $ 20,016 $ 18,939 (1) Comprised of accruals related to fees for investigative sites, contract research organizations, contract manufacturing organizations and other service providers that assist in conducting preclinical research studies and clinical trials. (2) Comprised of accruals related to commercial manufacturing activities prior to FDA approval of Rhopressa ® , interest payable and other business-related expenses. |
Convertible Notes (Tables)
Convertible Notes (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Summary of Carrying Value of Convertible Notes | The table below summarizes the carrying value of the 2014 Convertible Notes as of June 30, 2018 and December 31, 2017 : (in thousands) JUNE 30, 2018 DECEMBER 31, 2017 Gross proceeds $ 125,000 $ 125,000 Unamortized debt discount and issuance costs (1,001 ) (1,155 ) Carrying value $ 123,999 $ 123,845 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Schedule of Equity Classified Warrants Outstanding | As of June 30, 2018 , the following equity-classified warrants to purchase common stock were outstanding: NUMBER OF UNDERLYING SHARES EXERCISE PRICE PER SHARE WARRANT EXPIRATION DATE 75,000 $5.00 February 2019 75,000 $5.00 November 2019 4,500 $5.00 August 2020 223,482 $0.05 December 2019 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation Expense for Options Granted, Restricted Stock and Stock Purchase Rights as Reflected in Statement of Operations | Stock-based compensation expense for options granted, RSAs, performance stock awards (“PSAs”), SARs and stock purchase rights is reflected in the condensed consolidated statements of operations and comprehensive loss as follows: THREE MONTHS ENDED SIX MONTHS ENDED (in thousands) 2018 2017 2018 2017 Selling, general and administrative $ 7,760 $ 5,251 $ 14,444 $ 9,037 Research and development 2,558 1,414 4,593 2,478 Total $ 10,318 $ 6,665 $ 19,037 $ 11,515 |
Schedule of Stock Options Activity | The following table summarizes the stock option activity under the Plans: NUMBER OF WEIGHTED AVERAGE WEIGHTED AGGREGATE Options outstanding at December 31, 2017 6,457,343 $ 22.15 Granted 1,047,134 56.05 Exercised (363,559 ) 10.68 Canceled (94,573 ) 44.35 Options outstanding at June 30, 2018 7,046,345 $ 27.46 7.1 $ 282,490 Options exercisable at June 30, 2018 4,403,259 $ 16.41 6.0 $ 225,165 |
Restricted Stock and Restricted Stock Units Activity | The following table summarizes the RSAs, including PSAs, activity under the Plans: NUMBER OF SHARES WEIGHTED AVERAGE FAIR VALUE PER SHARE Nonvested RSAs at December 31, 2017 447,049 $ 41.08 Granted 254,216 55.92 Vested (114,335 ) 37.15 Canceled (5,328 ) 48.21 Nonvested RSAs at June 30, 2018 581,602 $ 48.27 |
The Company (Detail)
The Company (Detail) | 6 Months Ended | |||
Jun. 30, 2018USD ($)Segment | Jul. 23, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2014USD ($) | |
Organization, Consolidation and Presentation of Financial Statements [Line Items] | ||||
Number of operating segments | Segment | 1 | |||
Aggregate amount of senior notes issued | $ 125,000,000 | $ 125,000,000 | ||
2014 Notes | 2014 Convertible Notes | ||||
Organization, Consolidation and Presentation of Financial Statements [Line Items] | ||||
Aggregate amount of senior notes issued | $ 125,000,000 | $ 125,000,000 | $ 125,000,000 | |
Subsequent Event | Revolving Credit Facility | Delayed Draw Term Loan | ||||
Organization, Consolidation and Presentation of Financial Statements [Line Items] | ||||
Maximum borrowing capacity | $ 100,000,000 |
Significant Accounting Polici30
Significant Accounting Policies - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Interest income | $ 900,000 | $ 400,000 | $ 1,700,000 | $ 700,000 | |
Gross realized gain (loss) | $ (200,000) | $ 0 | $ (200,000) | $ 0 | |
Warrants exercise price (in dollars per share) | $ 0.05 | $ 0.05 | |||
Long-term Receivable | Accounting Standards Update 2016-16 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Income tax effects deferred from past intercompany transactions | $ 2,100,000 |
Significant Accounting Polici31
Significant Accounting Policies - Schedule of Estimated Useful Lives (Details) | 6 Months Ended |
Jun. 30, 2018 | |
Manufacturing equipment | |
Property, Plant and Equipment [Line Items] | |
Useful lives | 10 years |
Laboratory equipment | |
Property, Plant and Equipment [Line Items] | |
Useful lives | 7 years |
Furniture and fixtures | |
Property, Plant and Equipment [Line Items] | |
Useful lives | 5 years |
Software and computer equipment | |
Property, Plant and Equipment [Line Items] | |
Useful lives | 3 years |
Significant Accounting Polici32
Significant Accounting Policies - Antidilutive Securities (Detail) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
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) | 12,822,770 | 11,579,566 | 12,822,770 | 11,579,566 |
2014 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) | 5,040,323 | 5,040,323 | 5,040,323 | 5,040,323 |
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) | 7,046,345 | 6,028,083 | 7,046,345 | 6,028,083 |
Stock purchase warrants | ||||
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) | 154,500 | 157,500 | 154,500 | 157,500 |
Nonvested 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) | 581,602 | 353,660 | 581,602 | 353,660 |
Revenue Recognition (Details)
Revenue Recognition (Details) - Customer Concentration Risk - Sales Revenue, Net - Rhopressa | 3 Months Ended |
Jun. 30, 2018 | |
Distributor One | |
Disaggregation of Revenue [Line Items] | |
Concentration risk percentage | 34.00% |
Distributor Two | |
Disaggregation of Revenue [Line Items] | |
Concentration risk percentage | 33.00% |
Distributor Three | |
Disaggregation of Revenue [Line Items] | |
Concentration risk percentage | 30.00% |
Investments (Detail)
Investments (Detail) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | |
Cash and cash equivalents: | ||||
AMORTIZED COST | $ 270,648 | $ 197,569 | $ 242,650 | $ 197,945 |
FAIR VALUE | 270,648 | 197,569 | ||
Investments: | ||||
AMORTIZED COST | 15,464 | 52,114 | ||
GROSS UNREALIZED GAINS | 0 | 0 | ||
GROSS UNREALIZED LOSSES | (9) | (28) | ||
FAIR VALUE | 15,455 | 52,086 | ||
Total cash, cash equivalents and investments, amortized cost | 286,112 | 249,683 | ||
Total cash, cash equivalents and investments, fair value | 286,103 | 249,655 | ||
Commercial paper | ||||
Investments: | ||||
AMORTIZED COST | 9,991 | 30,883 | ||
GROSS UNREALIZED GAINS | 0 | 0 | ||
GROSS UNREALIZED LOSSES | 0 | 0 | ||
FAIR VALUE | 9,991 | 30,883 | ||
Corporate bonds | ||||
Investments: | ||||
AMORTIZED COST | 5,473 | 21,231 | ||
GROSS UNREALIZED GAINS | 0 | 0 | ||
GROSS UNREALIZED LOSSES | (9) | (28) | ||
FAIR VALUE | 5,464 | 21,203 | ||
Cash and money market funds | ||||
Cash and cash equivalents: | ||||
AMORTIZED COST | 270,648 | 197,569 | ||
FAIR VALUE | $ 270,648 | $ 197,569 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets and Liabilities by Level of Input (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash and cash equivalents | $ 270,648 | $ 197,569 |
Total investments | 15,455 | 52,086 |
Total cash, cash equivalents and investments | 286,103 | 249,655 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash and cash equivalents | 270,648 | 197,569 |
Total investments | 0 | 0 |
Total cash, cash equivalents and investments | 270,648 | 197,569 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash and cash equivalents | 0 | |
Total investments | 15,455 | 52,086 |
Total cash, cash equivalents and investments | 15,455 | 52,086 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total investments | 0 | 0 |
Total cash, cash equivalents and investments | 0 | 0 |
Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total investments | 9,991 | 30,883 |
Commercial paper | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total investments | 9,991 | 30,883 |
Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total investments | 5,464 | 21,203 |
Corporate bonds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total investments | 5,464 | 21,203 |
Cash and money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash and cash equivalents | 270,648 | 197,569 |
Cash and money market funds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash and cash equivalents | $ 270,648 | $ 197,569 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Aggregate amount of senior notes issued | $ 125,000,000 | $ 125,000,000 | |
2014 Notes | 2014 Convertible Notes | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Aggregate amount of senior notes issued | 125,000,000 | 125,000,000 | $ 125,000,000 |
Senior secured convertible notes | $ 361,700,000 | $ 327,600,000 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 507 | |
Work-in-process | 2,248 | |
Finished goods | 2,992 | |
Total inventory | $ 5,747 | $ 0 |
Property, Plant and Equipment38
Property, Plant and Equipment, Net - Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 59,023 | $ 34,940 |
Less: Accumulated depreciation | (4,144) | (3,008) |
Total property, plant and equipment, net | 54,879 | 31,932 |
Manufacturing equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 2,122 | 2,082 |
Laboratory equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 4,404 | 3,602 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 1,512 | 1,209 |
Software and computer equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 2,218 | 1,932 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 3,318 | 1,887 |
Construction-in-progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 45,449 | $ 24,228 |
Property, Plant and Equipment39
Property, Plant and Equipment, Net - Additional Information (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2017USD ($)ft² | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | |
Property, Plant and Equipment [Line Items] | |||||
Area of interior floor space (in sqft) | ft² | 30,000 | ||||
Capital expenditures related to manufacturing plant | $ 21.2 | ||||
Build-to-suit facility lease obligation | $ 4.7 | $ 4.9 | 4.7 | $ 4.9 | |
Foreign exchange gain (loss) | 0.3 | $ (0.3) | 0.1 | $ (0.4) | |
Property, Plant and Equipment | |||||
Property, Plant and Equipment [Line Items] | |||||
Capitalized amount of build-to-suit asset | $ 4.2 | ||||
Other Current Liabilities | |||||
Property, Plant and Equipment [Line Items] | |||||
Build-to-suit facility lease obligation | $ 0.3 | $ 0.3 |
Accrued Expenses and Other Cu40
Accrued Expenses and Other Current Liabilities (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Accrued expenses and other liabilities: | ||
Accrued compensation and benefits | $ 6,890 | $ 7,886 |
Accrued consulting and professional fees | 3,601 | 3,841 |
Accrued research and development | 1,742 | 1,855 |
Accrued other | 7,783 | 5,357 |
Total accrued expenses and other current liabilities | $ 20,016 | $ 18,939 |
Convertible Notes - Additional
Convertible Notes - Additional Information (Detail) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2018USD ($)$ / shares | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($)$ / shares | Jun. 30, 2017USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2014USD ($) | |
Debt Instrument [Line Items] | ||||||
Aggregate amount of senior notes issued | $ 125,000,000 | $ 125,000,000 | $ 125,000,000 | |||
Convertible notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, convertible, initial conversion price per share (in dollars per share) | $ / shares | $ 24.80 | $ 24.80 | ||||
Debt instrument, interest rate percentage | 1.75% | |||||
Debt instrument, anniversary term | 7 years | |||||
Debt instrument, convertible, common stock conversion rate per $1,000 principal amount | 0.04032 | |||||
Debt instrument, convertible, conversion premium percentage | 30.00% | 30.00% | ||||
Interest expense related to convertible notes | $ 500,000 | $ 600,000 | $ 1,000,000 | $ 1,200,000 | ||
2014 Notes | Convertible notes | ||||||
Debt Instrument [Line Items] | ||||||
Aggregate amount of senior notes issued | 125,000,000 | 125,000,000 | $ 125,000,000 | $ 125,000,000 | ||
Unamortized discount, gross | $ (2,100,000) | $ (2,100,000) |
Convertible Notes - Summary of
Convertible Notes - Summary of Carrying Value of Convertible Notes (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Debt Disclosure [Abstract] | ||
Gross proceeds | $ 125,000 | $ 125,000 |
Unamortized debt discount and issuance costs | (1,001) | (1,155) |
Carrying value | $ 123,999 | $ 123,845 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) $ in Thousands, shares in Millions | Jan. 23, 2018 | Jun. 30, 2018 | Jun. 30, 2017 |
Class of Stock [Line Items] | |||
Proceeds from sale of common stock, net | $ 135,972 | $ 122,046 | |
Common stock | |||
Class of Stock [Line Items] | |||
Common stock issued and sold under sales agreement (in shares) | 1 | ||
Proceeds from sale of common stock, net | $ 62,300 | ||
Underwriting discounts, fees and expenses | $ 900 | $ 500 | |
Stock issued during period (in shares) | 1.3 | ||
Proceeds from issuance of common stock, net of underwriting discounts, fees and expenses | $ 74,100 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Warrants Outstanding (Detail) | Jun. 30, 2018$ / sharesshares |
Class of Warrant or Right [Line Items] | |
EXERCISE PRICE PER SHARE (in dollars per share) | $ 0.05 |
February 2019 | Common stock | |
Class of Warrant or Right [Line Items] | |
NUMBER OF UNDERLYING SHARES (in shares) | shares | 75,000 |
EXERCISE PRICE PER SHARE (in dollars per share) | $ 5 |
November 2019 | Common stock | |
Class of Warrant or Right [Line Items] | |
NUMBER OF UNDERLYING SHARES (in shares) | shares | 75,000 |
EXERCISE PRICE PER SHARE (in dollars per share) | $ 5 |
August 2020 | Common stock | |
Class of Warrant or Right [Line Items] | |
NUMBER OF UNDERLYING SHARES (in shares) | shares | 4,500 |
EXERCISE PRICE PER SHARE (in dollars per share) | $ 5 |
December 2019 | Common stock | |
Class of Warrant or Right [Line Items] | |
NUMBER OF UNDERLYING SHARES (in shares) | shares | 223,482 |
EXERCISE PRICE PER SHARE (in dollars per share) | $ 0.05 |
Stock-Based Compensation - Allo
Stock-Based Compensation - Allocated Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 10,318 | $ 6,665 | $ 19,037 | $ 11,515 |
Selling, general and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 7,760 | 5,251 | 14,444 | 9,037 |
Research and development | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 2,558 | $ 1,414 | $ 4,593 | $ 2,478 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) $ / shares in Units, $ in Millions | Apr. 10, 2015shares | Oct. 30, 2013shares | Jun. 30, 2018USD ($)plan$ / sharesshares | Dec. 31, 2017shares | Jun. 07, 2018shares | Dec. 07, 2016shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of equity compensation plans | plan | 3 | |||||
Additional awards granted (in shares) | 1,047,134 | |||||
Weighted-average exercise price (in dollars per share) | $ / shares | $ 10.68 | |||||
Options exercisable, weighted average remaining contractual life | 6 years 2 days | |||||
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] | ||||||
Additional awards granted (in shares) | 0 | |||||
Equity awards (in shares) | 10,229,068 | 4,500,000 | ||||
Inducement Award Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Equity awards (in shares) | 874,500 | 418,000 | ||||
Employee Stock Option | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unrecognized compensation expense | $ | $ 79.9 | |||||
Weighted-average remaining period | 3 years 4 days | |||||
Restricted stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unrecognized compensation expense related to unvested awards | $ | $ 21.5 | |||||
Weighted-average of unvested awards | 3 years 29 days | |||||
Granted (in shares) | 254,216 | |||||
Vested (in shares) | 114,335 | |||||
Restricted stock | Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock-based awards, vesting period | 1 year | |||||
Restricted stock | 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) | 98,817 | |||||
Vested (in shares) | 19,764 | |||||
Stock Appreciation Rights (SARs) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Granted (in shares) | 100,000 | |||||
Weighted-average exercise price (in dollars per share) | $ / shares | $ 54.08 | |||||
Options exercisable, weighted average remaining contractual life | 4 years 8 months 24 days |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Stock Options Activity (Detail) $ / shares in Units, $ in Thousands | 6 Months Ended |
Jun. 30, 2018USD ($)$ / sharesshares | |
NUMBER OF SHARES | |
Beginning balance (in shares) | shares | 6,457,343 |
Granted (in shares) | shares | 1,047,134 |
Exercised (in shares) | shares | (363,559) |
Canceled (in shares) | shares | (94,573) |
Ending balance (in shares) | shares | 7,046,345 |
Options exercisable (in shares) | shares | 4,403,259 |
WEIGHTED AVERAGE EXERCISE PRICE | |
Beginning balance (in dollars per share) | $ / shares | $ 22.15 |
Granted (in dollars per share) | $ / shares | 56.05 |
Exercised (in dollars per share) | $ / shares | 10.68 |
Cancelled (in dollars per share) | $ / shares | 44.35 |
Ending balance (in dollars per share) | $ / shares | 27.46 |
Options exercisable (in dollars per share) | $ / shares | $ 16.41 |
WEIGHTED AVERAGE REMAINING CONTRACTUAL LIFE (YEARS) | |
Options outstanding, weighted average remaining contractual life | 7 years 1 month 1 day |
Options exercisable | 6 years 2 days |
AGGREGATE INTRINSIC VALUE | |
Options outstanding | $ | $ 282,490 |
Options exercisable | $ | $ 225,165 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock and Restricted Stock Units Activity (Details) - Restricted stock | 6 Months Ended |
Jun. 30, 2018$ / sharesshares | |
NUMBER OF SHARES | |
Beginning balance (in shares) | shares | 447,049 |
Granted (in shares) | shares | 254,216 |
Vested (in shares) | shares | (114,335) |
Canceled (in shares) | shares | (5,328) |
Ending balance (in shares) | shares | 581,602 |
WEIGHTED AVERAGE FAIR VALUE PER SHARE | |
Beginning balance (in dollars per share) | $ / shares | $ 41.08 |
Granted (in dollars per share) | $ / shares | 55.92 |
Vested (in dollars per share) | $ / shares | 37.15 |
Canceled (in dollars per share) | $ / shares | 48.21 |
Ending balance (in dollars per share) | $ / shares | $ 48.27 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event - USD ($) | Dec. 31, 2020 | Aug. 01, 2018 | Jul. 23, 2018 | Sep. 30, 2018 |
2014 Notes | Common stock | ||||
Subsequent Event [Line Items] | ||||
Shares converted (in shares) | 5,040,323 | |||
Additional shares converted (in shares) | 329,124 | |||
Scenario, Forecast | ||||
Subsequent Event [Line Items] | ||||
Value of additional shares | $ 24,000,000 | |||
Revolving Credit Facility | Delayed Draw Term Loan | ||||
Subsequent Event [Line Items] | ||||
Maximum borrowing capacity | $ 100,000,000 | |||
Percentage of fees upon drawdown of amounts drawn | 1.75% | |||
Debt instrument, interest rate percentage | 8.625% | |||
Percentage of annual fees on undrawn amount | 1.50% | |||
One-time termination fee amount | $ 1,500,000 | |||
Funds withdrawn at closing | $ 0 | |||
Collaborative Arrangement | ||||
Subsequent Event [Line Items] | ||||
Amount of other research and development expense | $ 6,000,000 | |||
Collaborative Arrangement | Scenario, Forecast | ||||
Subsequent Event [Line Items] | ||||
Amount payable on collaborative arrangement | $ 9,000,000 |