Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2019 | Nov. 01, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2019 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 001-36152 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | Aerie Pharmaceuticals, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 20-3109565 | |
Entity Address, Address Line One | 4301 Emperor Boulevard, Suite 400 | |
Entity Address, City or Town | Durham | |
Entity Address, State or Province | NC | |
Entity Address, Postal Zip Code | 27703 | |
City Area Code | 919 | |
Local Phone Number | 237-5300 | |
Title of 12(b) Security | Shares of common stock, par value $0.001 per share | |
Trading Symbol | AERI | |
Security Exchange Name | NASDAQ | |
Entity CIK | 0001337553 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Smaller Reporting Company | false | |
Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 46,321,454 | |
Entity Shell Company | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Current assets | ||
Cash and cash equivalents | $ 248,702 | $ 202,818 |
Short-term investments | 92,075 | 0 |
Accounts receivable, net | 33,278 | 2,715 |
Inventory | 14,673 | 10,112 |
Prepaid expenses and other current assets | 7,940 | 4,530 |
Total current assets | 396,668 | 220,175 |
Long-term investments | 5,020 | 0 |
Property, plant and equipment, net | 58,277 | 60,525 |
Operating lease right-of-use assets | 17,216 | 0 |
Other assets | 2,027 | 4,344 |
Total assets | 479,208 | 285,044 |
Current liabilities | ||
Accounts payable | 11,480 | 12,403 |
Accrued expenses and other current liabilities | 55,728 | 38,381 |
Operating lease liabilities | 5,802 | 0 |
Total current liabilities | 73,010 | 50,784 |
Convertible notes, net | 183,553 | 0 |
Long-term operating lease liabilities | 12,235 | 0 |
Other non-current liabilities | 1,206 | 6,454 |
Total liabilities | 270,004 | 57,238 |
Commitments and contingencies (Note 13) | ||
Stockholders’ equity | ||
Preferred stock, $0.001 par value; 15,000,000 shares authorized as of September 30, 2019 and December 31, 2018; None issued and outstanding | 0 | 0 |
Common stock, $0.001 par value; 150,000,000 shares authorized as of September 30, 2019 and December 31, 2018; 45,998,956 and 45,478,883 shares issued and outstanding as of September 30, 2019 and December 31, 2018, respectively | 46 | 45 |
Additional paid-in capital | 1,050,252 | 924,180 |
Accumulated other comprehensive loss | (158) | 0 |
Accumulated deficit | (840,936) | (696,419) |
Total stockholders’ equity | 209,204 | 227,806 |
Total liabilities and stockholders’ equity | $ 479,208 | $ 285,044 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2019 | Dec. 31, 2018 |
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) | 45,998,956 | 45,478,883 |
Common stock, shares outstanding (in shares) | 45,998,956 | 45,478,883 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Total revenues, net | $ 18,544 | $ 7,302 | $ 45,231 | $ 9,725 |
Costs and expenses: | ||||
Cost of goods sold | 2,063 | 205 | 3,149 | 264 |
Selling, general and administrative | 32,171 | 32,685 | 102,935 | 88,727 |
Pre-approval commercial manufacturing | 5,841 | 7,248 | 16,117 | 18,920 |
Research and development | 21,796 | 28,502 | 60,584 | 59,631 |
Total costs and expenses | 61,871 | 68,640 | 182,785 | 167,542 |
Loss from operations | (43,327) | (61,338) | (137,554) | (157,817) |
Other (expense) income, net | (6,075) | (24,050) | (7,053) | (23,291) |
Loss before income taxes | (49,402) | (85,388) | (144,607) | (181,108) |
Income tax (benefit) expense | 0 | 0 | (90) | 3 |
Net loss | $ (49,402) | $ (85,388) | $ (144,517) | $ (181,111) |
Net loss per common share—basic and diluted (in dollars per share) | $ (1.09) | $ (1.96) | $ (3.19) | $ (4.47) |
Weighted average number of common shares outstanding—basic and diluted (in shares) | 45,448,190 | 43,657,423 | 45,372,608 | 40,505,534 |
Net loss | $ (49,402) | $ (85,388) | $ (144,517) | $ (181,111) |
Unrealized (loss) gain on available-for-sale investments | (158) | 8 | (158) | 27 |
Comprehensive loss | (49,560) | (85,380) | (144,675) | (181,084) |
Product revenues, net | ||||
Total revenues, net | $ 18,544 | $ 7,302 | $ 45,231 | $ 9,725 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | COMMON STOCK | ADDITIONAL PAID-IN CAPITAL | ACCUMULATED OTHER COMPREHENSIVE (LOSS) GAIN | ACCUMULATED DEFICIT |
Beginning balance (in shares) at Dec. 31, 2017 | 36,947,637 | ||||
Beginning balance at Dec. 31, 2017 | $ 135,599 | $ 37 | $ 597,318 | $ (28) | $ (461,728) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock, net of commissions and expenses (in shares) | 2,313,824 | ||||
Issuance of common stock, net of commissions and expenses | 136,375 | $ 2 | 136,373 | ||
Issuance of common stock upon exercise of stock options and warrants (in shares) | 28,654 | ||||
Issuance of common stock upon exercise of stock options and warrants | 95 | 95 | |||
Issuance of common stock for restricted stock awards, net (in shares) | 212,995 | ||||
Issuance of common stock for restricted stock awards, net | (1,595) | $ 1 | (1,596) | ||
Stock-based compensation | 8,762 | 8,762 | |||
Other comprehensive gain (loss) | (129) | (129) | |||
Net loss | (40,699) | (40,699) | |||
Ending balance (in shares) at Mar. 31, 2018 | 39,503,110 | ||||
Ending balance at Mar. 31, 2018 | 236,271 | $ 40 | 740,952 | (157) | (504,564) |
Beginning balance (in shares) at Dec. 31, 2017 | 36,947,637 | ||||
Beginning balance at Dec. 31, 2017 | 135,599 | $ 37 | 597,318 | (28) | (461,728) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net loss | (181,111) | ||||
Ending balance (in shares) at Sep. 30, 2018 | 45,451,227 | ||||
Ending balance at Sep. 30, 2018 | 268,582 | $ 45 | 913,499 | (1) | (644,961) |
Beginning balance (in shares) at Mar. 31, 2018 | 39,503,110 | ||||
Beginning balance at Mar. 31, 2018 | 236,271 | $ 40 | 740,952 | (157) | (504,564) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock upon exercise of stock purchase rights (in shares) | 16,965 | ||||
Issuance of common stock upon exercise of stock purchase rights | 872 | 872 | |||
Issuance of common stock, net of commissions and expenses | 70 | 70 | |||
Issuance of common stock upon exercise of stock options and warrants (in shares) | 319,257 | ||||
Issuance of common stock upon exercise of stock options and warrants | 2,732 | 2,732 | |||
Issuance of common stock for restricted stock awards, net (in shares) | 41 | ||||
Issuance of common stock for restricted stock awards, net | (369) | (369) | |||
Stock-based compensation | 10,180 | 10,180 | |||
Other comprehensive gain (loss) | 148 | 148 | |||
Net loss | (55,024) | (55,024) | |||
Ending balance (in shares) at Jun. 30, 2018 | 39,839,373 | ||||
Ending balance at Jun. 30, 2018 | 194,880 | $ 40 | 754,437 | (9) | (559,588) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock upon exercise of stock options and warrants (in shares) | 234,308 | ||||
Issuance of common stock upon exercise of stock options and warrants | 1,146 | 1,146 | |||
Issuance of common stock for restricted stock awards, net (in shares) | 8,099 | ||||
Issuance of common stock for restricted stock awards, net | (107) | (107) | |||
Stock-based compensation | 9,945 | 9,945 | |||
Issuance of shares upon conversion of 2014 Convertible Notes (in shares) | 5,369,447 | ||||
Issuance of shares upon conversion of 2014 Convertible Notes | 148,083 | $ 5 | 148,078 | ||
Other comprehensive gain (loss) | 8 | 8 | |||
Net loss | (85,388) | (85,388) | |||
Ending balance (in shares) at Sep. 30, 2018 | 45,451,227 | ||||
Ending balance at Sep. 30, 2018 | 268,582 | $ 45 | 913,499 | (1) | (644,961) |
Beginning balance (in shares) at Dec. 31, 2018 | 45,478,883 | ||||
Beginning balance at Dec. 31, 2018 | 227,806 | $ 45 | 924,180 | 0 | (696,419) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock upon exercise of stock options and warrants (in shares) | 141,245 | ||||
Issuance of common stock upon exercise of stock options and warrants | 1,879 | 1,879 | |||
Issuance of common stock for restricted stock awards, net (in shares) | 301,848 | ||||
Issuance of common stock for restricted stock awards, net | (2,092) | $ 1 | (2,093) | ||
Stock-based compensation | 12,508 | 12,508 | |||
Net loss | (47,951) | (47,951) | |||
Ending balance (in shares) at Mar. 31, 2019 | 45,921,976 | ||||
Ending balance at Mar. 31, 2019 | 192,150 | $ 46 | 936,474 | 0 | (744,370) |
Beginning balance (in shares) at Dec. 31, 2018 | 45,478,883 | ||||
Beginning balance at Dec. 31, 2018 | $ 227,806 | $ 45 | 924,180 | 0 | (696,419) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock upon exercise of stock options and warrants (in shares) | 139,119 | ||||
Net loss | $ (144,517) | ||||
Ending balance (in shares) at Sep. 30, 2019 | 45,998,956 | ||||
Ending balance at Sep. 30, 2019 | 209,204 | $ 46 | 1,050,252 | (158) | (840,936) |
Beginning balance (in shares) at Mar. 31, 2019 | 45,921,976 | ||||
Beginning balance at Mar. 31, 2019 | 192,150 | $ 46 | 936,474 | 0 | (744,370) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock upon exercise of stock purchase rights (in shares) | 22,648 | ||||
Issuance of common stock upon exercise of stock purchase rights | 569 | 569 | |||
Issuance of common stock upon exercise of stock options and warrants (in shares) | 10,480 | ||||
Issuance of common stock upon exercise of stock options and warrants | 71 | 71 | |||
Issuance of common stock for restricted stock awards, net (in shares) | (5,686) | ||||
Issuance of common stock for restricted stock awards, net | (891) | (891) | |||
Stock-based compensation | 11,023 | 11,023 | |||
Net loss | (47,164) | (47,164) | |||
Ending balance (in shares) at Jun. 30, 2019 | 45,949,418 | ||||
Ending balance at Jun. 30, 2019 | 155,758 | $ 46 | 947,246 | 0 | (791,534) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock upon exercise of stock options and warrants (in shares) | 15,000 | ||||
Issuance of common stock upon exercise of stock options and warrants | 159 | 159 | |||
Issuance of common stock for restricted stock awards, net (in shares) | 34,538 | ||||
Issuance of common stock for restricted stock awards, net | 267 | 267 | |||
Stock-based compensation | 10,804 | 10,804 | |||
Other comprehensive gain (loss) | (158) | (158) | |||
Equity component of Convertible Notes, net of issuance costs of $3,725 | 124,666 | 124,666 | |||
Payment for capped call share options | (32,890) | (32,890) | |||
Net loss | (49,402) | ||||
Ending balance (in shares) at Sep. 30, 2019 | 45,998,956 | ||||
Ending balance at Sep. 30, 2019 | $ 209,204 | $ 46 | $ 1,050,252 | $ (158) | $ (840,936) |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Statement of Stockholders' Equity [Abstract] | |
Expense related to distribution or servicing and underwriting fees | $ 1,345 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash flows from operating activities | ||
Net loss | $ (144,517) | $ (181,111) |
Adjustments to reconcile net loss to net cash used in operating activities | ||
Depreciation | 3,610 | 1,730 |
Amortization and accretion | 6,335 | 833 |
Induced conversion of 2014 Convertible Notes | 0 | 24,059 |
Stock-based compensation | 33,921 | 29,015 |
Other non-cash | (252) | (207) |
Changes in operating assets and liabilities | ||
Accounts receivable, net | (30,563) | (1,961) |
Inventory | (4,080) | (5,299) |
Prepaid, current and other assets | (2,715) | 955 |
Accounts payable, accrued expenses and other current liabilities | 18,576 | 10,924 |
Operating lease liabilities | (3,621) | 0 |
Net cash used in operating activities | (123,306) | (121,062) |
Cash flows from investing activities | ||
Purchase of available-for-sale investments | (97,268) | (56,195) |
Proceeds from sales and maturities of investments | 0 | 107,297 |
Purchase of property, plant and equipment | (7,911) | (29,404) |
Net cash (used in) provided by investing activities | (105,179) | 21,698 |
Cash flows from financing activities | ||
Proceeds from convertible notes, net of issuance costs | 308,349 | 0 |
Payment for capped call options | (32,890) | 0 |
Proceeds from sale of common stock, net | 0 | 135,972 |
Payments related to issuance of stock for stock-based compensation arrangements, net | (597) | 2,933 |
Payments of debt issuance costs | (532) | (1,621) |
Proceeds from exercise of warrants | 375 | 0 |
Other financing | (336) | (535) |
Net cash provided by financing activities | 274,369 | 136,749 |
Net change in cash and cash equivalents | 45,884 | 37,385 |
Cash and cash equivalents, at beginning of period | 202,818 | 197,569 |
Cash and cash equivalents, at end of period | 248,702 | 234,954 |
Non-cash investing and financing activities | ||
Conversion of 2014 Convertible Notes to common stock | 0 | 148,078 |
Purchase of property, plant and equipment | 1,389 | 3,066 |
Debt issuance costs included in accrued expense and other current liabilities | $ 1,275 | $ 0 |
The Company
The Company | 9 Months Ended |
Sep. 30, 2019 | |
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, retinal 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 two U.S. Food and Drug Administration (“FDA”) approved products, Rhopressa ® (netarsudil ophthalmic solution) 0.02% (“Rhopressa ® ”) and Rocklatan ® (netarsudil and latanoprost ophthalmic solution) 0.02% / 0.005% (“Rocklatan ® ”). Rhopressa ® is a once-daily eye drop designed to reduce elevated intraocular pressure (“IOP”) in patients with open-angle glaucoma or ocular hypertension. Rocklatan ® is a once-daily eye drop that is a fixed-dose combination of Rhopressa ® and latanoprost, the most widely-prescribed prostaglandin analog (“PGA”). The Company is commercializing Rhopressa ® , which was launched in the United States on April 30, 2018, and Rocklatan ® , which was launched in the United States on May 1, 2019. In November 2019, the Company released topline data from its Phase 4 Multi-center Open-label Study (“MOST”), which observed Rhopressa ® efficacy in various real-world clinical settings, including as an adjunctive product or monotherapy. The results indicated positive IOP reduction in all settings, along with a favorable tolerability profile. In addition to actively promoting these products in the United States, the Company is pursuing its strategy to obtain regulatory approval for Rhopressa ® and Rocklatan ® in Europe and Japan. If approved, Rhopressa ® and Rocklatan ® will be marketed under the names Rhokiinsa ® and Roclanda ® , respectively, in Europe. In October 2018, the Company announced that the European Medicines Agency (“EMA”) accepted for review the marketing authorisation application (“MAA”) for Rhokiinsa ® . In September 2019, the EMA Committee for Medicinal Products in Human Use (“CHMP”) adopted a positive opinion recommending approval of the MAA for Rhokiinsa ® . The final decision by the European Commission is expected in the fourth quarter of 2019. Additionally, the Company has completed a Phase 1 clinical trial and a successful pilot Phase 2 clinical study in the United States on Japanese and Japanese-American subjects, which were designed to support meeting the requirements of Japan’s Pharmaceuticals and Medical Devices Agency (“PMDA”) for potential regulatory submission of Rhopressa ® in Japan. In July 2019, the Company completed enrollment of its Phase 2 clinical trial initiated in March 2019 in Japan and topline results were released in November 2019. The study was designed in accordance with the requirements of the PMDA on Japanese patients in Japan to support subsequent Phase 3 registration trials that are also expected to be conducted in Japan. The results of the Phase 2 clinical trial indicated positive efficacy and tolerability results for the patient set, and the Company plans to move forward with plans for Phase 3 trial initiation in Japan, along with advancing discussions for a potential commercialization partner in Japan. In Europe, the Company is currently conducting a Phase 3 registration trial, named Mercury 3, comparing Roclanda ® to Ganfort ® , a fixed-dose combination product marketed in Europe consisting of bimatoprost (a PGA) and timolol (a beta blocker). If successful, Mercury 3 is expected to improve the commercialization prospects of Roclanda ® in Europe. The Company plans to submit an MAA with the EMA in early 2020 for Roclanda ® if the EMA has approved Rhokiinsa ® by such time. The Company is also focused on furthering the development of its future product candidates focused on retinal diseases, particularly AR-1105 and AR-13503, described below. Through business development activities, the Company acquired worldwide ophthalmic rights to a bio-erodible polymer technology from DSM, a global science-based company headquartered in the Netherlands, and PRINT ® implant manufacturing technology, which is a proprietary technology capable of creating precisely-engineered sustained-release products utilizing fully-scalable manufacturing processes, from Envisia Therapeutics Inc. (“Envisia”). Using these technologies, the Company has created a sustained-release ophthalmology platform and is currently developing two sustained-release implants focused on retinal diseases, AR-1105, an investigational dexamethasone intravitreal implant, and AR-13503, a Rho kinase/Protein kinase C inhibitor. In March 2019, the Company initiated a Phase 2 clinical trial of AR-1105 in patients with macular edema due to retinal vein occlusion and completed enrollment in October 2019. The Company also submitted its investigational new drug (“IND”) application for AR-13503 in March 2019, and in April 2019 the Company announced that the FDA had reviewed the IND for AR-13503 and as a result it is now in effect, allowing Aerie to initiate human studies in the treatment of neovascular age-related macular degeneration (“nAMD”) and diabetic macular edema (“DME”). The Company initiated a first-in-human clinical study for AR-13503 in the third quarter of 2019 . The Company owns over 4,000 Rho kinase inhibitor molecules, some of which have additional features including the inhibition of other kinases such as Janus kinase and those in the IĸB family and evaluates this library on an ongoing basis for additional development opportunities. Early stage evaluations are underway for indications, including neuroenhancement, dry age-related macular degeneration (“AMD”), geographic atrophy, dry eye and psoriasis. The Company also evaluates outside business development opportunities to provide access to technologies developed outside of Aerie and has stated its particular interest in ophthalmic areas such as dry eye, which is a very large market in the United States. The Company commenced generating product revenues related to sales of Rhopressa ® in the second quarter of 2018 and Rocklatan ® in the second quarter of 2019. The Company has incurred losses and experienced negative operating cash flows since inception. The Company had previously funded its operations primarily through the sale of equity securities and issuance of convertible notes prior to generating product revenues. In September 2019, the Company issued an aggregate principal amount of $316.25 million 1.50% convertible senior notes due 2024 (the “Convertible Notes”) and simultaneously terminated its $200 million senior secured delayed draw term loan facility (the “credit facility”). See Note 10 for additional information. If the Company does not successfully commercialize Rhopressa ® and Rocklatan ® or any current or future product candidates, if approved, it may not generate sufficient cash flows and may be unable to achieve profitability. Accordingly, the Company may be required to obtain further funding through public or private debt or equity offerings, or other arrangements. Adequate additional funding may not be available to the Company on acceptable terms, or at all. If the Company is unable to raise capital when needed or on acceptable terms, it may be forced to delay, reduce or eliminate its research and development programs or commercialization and manufacturing efforts. |
Significant Accounting Policies
Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2019 | |
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 presentation of the Company’s condensed consolidated financial position and results of operations for the interim periods presented. Certain information and disclosures normally included in the annual consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. These interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes for the year ended December 31, 2018 included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on March 1, 2019. The results for the three and nine months ended September 30, 2019 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. Certain reclassifications have been made to prior year amounts to conform to the current year presentation. Use of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and reported amounts of income and expenses during the reporting periods. Significant items subject to such estimates and assumptions include revenue recognition, inventories, lease accounting, accrued expenses, fair value measurements, acquisitions and stock-based compensation. Actual results could differ from the Company’s estimates. 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 sheets. The Company relies on its third-party manufacturers to produce the active pharmaceutical ingredient (“API”) and final drug product for Rhopressa ® and Rocklatan ® and may rely on third-party manufacturers for its current and future product candidates. The Company obtained FDA approval for an additional Rhopressa ® drug product contract manufacturer in the first quarter of 2019, which began to supply commercial product in the second quarter of 2019. Further, the Company has obtained FDA approval for an additional API contract manufacturer, which began to supply commercial API in the second quarter of 2019. The Company is in the process of adding an additional Rocklatan ® drug product contract manufacturer, which is expected to begin commercial supply in early 2020. In addition, the Company has established its own manufacturing plant in Athlone, Ireland, for future commercial production of Rhopressa ® , Rocklatan ® , and if approved, Rhokiinsa ® and Roclanda ® . In September 2019, the Company submitted a prior approval supplement (“PAS”) for the plant to the FDA, which, if approved, will permit production of Rocklatan ® by the plant for sale in the United States. Commercial supply is expected to be available in early 2020 . The Company expects to continue to use product sourced from its contract manufacturers when its manufacturing plant in Athlone, Ireland, is operational. Revenue Recognition The Company accounts for its revenue transactions under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers (“ASC Topic 606”). In accordance with ASC Topic 606, the Company recognizes revenues when its customers obtain control of its product for 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. Aerie’s customers 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. Net product revenue is typically recognized when distributors obtain control of the Company’s products, which occurs at a point in time, typically upon delivery of product to the distributors. 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. The Company does 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 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. Shipping and handling costs related to the Company’s product sales are included in selling, general and administrative expenses. The Company’s net product revenues through September 30, 2019 were generated through sales of Rhopressa ® , which was commercially launched in the United States on April 30, 2018, and sales of Rocklatan ® , which was commercially launched in the United States on May 1, 2019 . Product revenue is recorded net of trade discounts, allowances, commercial and government rebates, co-pay program coupons, chargebacks, U.S. government funding requirements for the coverage gap (commonly called the “donut hole”) portion of the Medicare Part D program and estimated returns and other incentives. These reserves are classified as either reductions of accounts receivable or as current liabilities. 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. See Note 3 for additional information. Inventories Inventories are stated at the lower of cost or net realizable value. The Company determines the cost of inventory using the first-in, first-out (“FIFO”) method. The Company analyzes its inventory levels at least quarterly and writes down inventory that is expected to expire prior to being sold, inventory in excess of expected sales requirements and inventory that fails to meet commercial sale specifications, with a corresponding charge to cost of goods sold. The determination of whether inventory costs will be realizable requires estimates by management of future expected inventory requirements based on sales forecasts. If actual net realizable value is less than the estimated amount or if actual market conditions are less favorable than the Company’s projections, additional inventory write-downs may be required. Charges for inventory write-downs are not reversed if it is later determined that the product is saleable. Prior to the date the Company obtains regulatory approval for its product candidates or its manufacturing facilities such as its manufacturing plant in Athlone, Ireland, manufacturing costs related to commercial production are expensed as pre-approval commercial manufacturing expense on the condensed consolidated statements of operations and comprehensive loss. Once regulatory approval is obtained, the Company capitalizes such costs as inventory on the condensed consolidated balance sheets. 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 yet been placed in service and are not depreciated or amortized. 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, computer and other equipment 3 years Leasehold improvements Lower of estimated useful life or term of lease Leases The Company determines if an arrangement is a lease at inception. For each lease, the lease term is determined at the commencement date and includes renewal options and termination options when it is reasonably certain that the Company will exercise that option. Operating leases with lease terms greater than one year are included in operating lease right-of-use (“ROU”) assets and current and long-term operating lease liabilities in the Company’s condensed consolidated balance sheets. Operating lease ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease liabilities are recognized at commencement date based on the present value of lease payments over the lease term using an estimated rate of interest the Company would have to pay to borrow equivalent funds on a collateralized basis at the lease commencement date. The operating lease ROU assets are based on the liability adjusted for any prepaid or deferred rent and lease incentives. The incremental borrowing rate was utilized to discount lease payments over the expected term given that the Company’s operating leases do not provide an implicit rate. The Company estimates the incremental borrowing rate to reflect the profile of secured borrowing over the expected term of the leases based on the information available at the later of the date of adoption or the lease commencement date. Rent expense for the operating lease is recognized on a straight-line basis over the lease term. The Company’s lease agreements have lease and non-lease components, which are generally accounted for as a single lease component. Non-lease components include lease operating expenses, which are variable costs under the Company’s current leases. For vehicle leases, the Company accounts for the lease and non-lease components as a single lease component and applies a portfolio approach to effectively account for the operating lease ROU assets and liabilities. 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 the ASC Topic 320, Investments-Debt and Equity Securities . The Company classifies investments available to fund current operations as current assets on its condensed consolidated balance sheets. Investments are classified as long-term assets on the condensed 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 in comprehensive loss on the condensed consolidated statements of operations and comprehensive loss and in 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 (expense) income, net. Interest income was $0.5 million and $1.8 million for the three and nine months ended September 30, 2019 , respectively, and $0.8 million and $2.5 million for the three and nine months ended September 30, 2018 , respectively. Realized losses of $0.2 million were reclassified out of accumulated other comprehensive loss and recognized within other income (expense), net during the nine months ended September 30, 2018. There were no realized gains or losses recognized during the three and nine months ended September 30, 2019 . 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. The Company’s cash and cash equivalents were valued utilizing Level 1 inputs in the fair value hierarchy as of September 30, 2019 and December 31, 2018 . The Company’s investments were valued utilizing Level 2 inputs and the Convertible Notes were valued utilizing Level 3 inputs as of September 30, 2019. There were no transfers between the different levels of the fair value hierarchy during the nine months ended September 30, 2019 . 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. The fair value of restricted stock awards (“RSAs”) and restricted stock units (“RSUs”) granted are based on the market value of Aerie’s common stock on the date of grant. Compensation expense related to time-based RSAs and RSUs 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. Convertible Notes Transactions The Company separately accounts for the liability and equity components of convertible notes transactions that can be settled in cash by allocating the proceeds from issuance between the liability component and the embedded conversion option in accordance with accounting for convertible debt instruments that may be settled in cash (including partial cash settlement) upon conversion. The value of the equity component is calculated by first measuring the fair value of the liability component, using the interest rate of a similar liability that does not have a conversion feature, as of the issuance date. The difference between the proceeds from the convertible debt issuance and the amount measured as the liability component is recorded as the equity component with a corresponding discount recorded on the debt. The Company recognizes amortization of the resulting discount using the effective interest method as interest expense on the condensed consolidated statements of operations and comprehensive loss. The equity component is not remeasured as long as it continues to meet the conditions for equity classification. The Company allocates issuance costs incurred to the liability and equity components. Issuance costs attributable to the liability component are amortized to expense over the respective term of the convertible notes, and issuance costs attributable to the equity component are netted with the respective equity component in additional paid-in capital. In September 2019, the Company bought capped call options from financial institutions to minimize the impact of potential dilution of the Company’s common stock upon conversion of its Convertible Notes. The capped call options meet the definition of a derivative in accordance with ASC 815, Derivatives and Hedging (“ASC 815”), however, qualify for derivative scope exception under ASC 815 for instruments indexed to a company’s own stock. Accordingly, the premiums for the capped call options were recorded as additional paid-in capital on the Company’s condensed consolidated balance sheets as the options are settleable in Aerie common stock at the election of the Company. See Note 10 for additional information. Adoption of New Accounting Standards In June 2018, the FASB issued ASU 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting (“ASU 2018-07”) , which expands the scope of ASC Topic 718, Compensation—Stock Compensation to include share-based payments issued to non-employees for goods or services. Consequently, the accounting for share-based payments to non-employees and employees will be substantially aligned. This ASU was effective for the Company beginning January 1, 2019. The adoption of ASU 2018-07 did not have a material impact on the Company’s consolidated financial statements and disclosures. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) (“ASC Topic 842”). ASC Topic 842 is intended to improve financial reporting of leasing transactions by requiring organizations that lease assets to recognize assets and liabilities for the rights and obligations created by leases that extend more than twelve months on the balance sheet. This accounting update also requires additional disclosures surrounding the amount, timing, and uncertainty of cash flows arising from leases. ASC Topic 842 is effective for financial statements issued for annual and interim periods beginning on January 1, 2019. The Company has elected the optional transition method that provided the option to use the effective date of ASC Topic 842 as the date of initial application on transition. Accordingly, the Company did not adjust comparative periods or make the new required lease disclosures for periods before the effective date of January 1, 2019. There was no cumulative effect adjustment recognized to accumulated deficit upon adoption. As of the date of adoption of the new leasing standards, the Company recognized an operating lease ROU asset of approximately $17.3 million and a corresponding operating lease liability of approximately $17.9 million , which are included in the condensed consolidated balance sheets. The adoption of the new leasing standards did not have a material impact on the condensed consolidated statements of operations and comprehensive loss. The Company elected to utilize the package of practical expedients permitted in ASC Topic 842. Accordingly, the Company accounted for its existing operating leases as operating leases under the new guidance (i) without reassessing the classification of the operating leases in accordance with ASC Topic 842, (ii) without reassessing whether an existing contract contained a lease and (iii) without reassessing initial direct costs. In addition, the Company elected not to allocate the consideration between lease and non-lease components for its operating leases. The Company also reassessed its lease conclusions for its manufacturing plant in Athlone, Ireland, under ASC Topic 842 since construction was still in progress as of the date of adoption. Upon the reassessment, the Company concluded it was the owner of the leased space for accounting purposes under ASC Topic 842 as of the date of adoption and therefore, maintained its previous build-to-suit lease accounting under the transition guidance of ASC Topic 842. Recent Accounting Pronouncements In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820-10): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”), which changes the fair value measurement disclosure requirements of ASC Topic 820. Under this ASU, certain disclosure requirements for fair value measurements are eliminated, amended or added. These changes aim to improve the overall usefulness of disclosures to financial statement users and reduce unnecessary costs to companies when preparing the disclosures. The guidance is effective for the Company beginning on January 1, 2020 and prescribes different transition methods for the various provisions. The Company does not expect the adoption of ASU 2018-13 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 (“ASU 2016-13”), 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 likelihood of the loss occurring is probable. 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. In November 2018, the FASB issued ASU No. 2018-19, Codification Improvements to Topic 326, Financial Instruments-Credit Losses (“ASU 2018-19”), which clarifies that receivables from operating leases are accounted for using the lease guidance and not as financial instruments. Further, in May 2019, the FASB issued ASU No. 2019-05, Financial Instruments—Credit Losses (Topic 326), Targeted Transition Relief (“ASU 2019-05”), which provides transition relief and allows allow entities to elect the fair value option on certain financial instrument. The guidance is effective for the Company beginning on January 1, 2020. The new guidance prescribes different transition methods for the various provisions. The Company does not expect the adoption of ASU 2016-13, ASU 2018-19 or ASU 2019-05 to have a material impact 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 may be adjusted for certain items related to the dilutive securities. For all periods presented, Aerie’s potential common stock equivalents have been excluded from the computation of Diluted EPS as their inclusion would have had an anti-dilutive effect. The potential common stock equivalents that have been excluded from the computation of Diluted EPS consist of the following: THREE MONTHS ENDED NINE MONTHS ENDED 2019 2018 2019 2018 Outstanding stock options 8,535,266 6,951,639 8,535,266 6,951,639 Stock purchase warrants 79,500 154,500 79,500 154,500 Non-vested restricted stock awards and performance share units 755,179 584,124 755,179 584,124 Non-vested restricted stock units 43,071 — 43,071 — Total 9,413,016 7,690,263 9,413,016 7,690,263 |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Net product revenues for the three and nine months ended September 30, 2019 were derived from sales of Rhopressa ® and Rocklatan ® in the United States to customers and net product revenues for the three and nine months ended September 30, 2018 were derived from sales of Rhopressa ® in the United States to customers. The Company commenced generating product revenue related to sales of Rocklatan ® in the second quarter of 2019 following its commercial launch of Rocklatan ® in the United States in May 2019. For the nine months ended September 30, 2019 , three distributors accounted for 37% , 31% and 30% of total revenues, respectively. For the nine months ended September 30, 2018, three distributors accounted for 34% , 32% and 31% of total revenues, respectively. The Company commenced generating product revenues related to sales of Rhopressa ® in the second quarter of 2018. Product affordability for the patient drives consumer acceptance, and this is generally managed through coverage by third-party payers, such as government or private healthcare insurers and pharmacy benefit managers (“Third-party Payers”) and such product may be subject to rebates and discounts payable directly to those Third-party Payers. The Company calculates its net product revenue based on the wholesale acquisition cost that the Company charges its distributors for Rhopressa ® and Rocklatan ® less provisions for (i) trade discounts and allowances, such as discounts for prompt payment and distributor fees, (ii) estimated rebates to Third-party Payers, estimated payments for Medicare Part D prescription drug program coverage gap (commonly called the “donut hole”), patient co-pay program coupon utilization, chargebacks and other discount programs and (iii) reserves for expected product returns. Provisions for revenue reserves reduced product revenues by $31.0 million and $73.8 million for the three and nine months ended September 30, 2019 , respectively. For the three and nine months ended September 30, 2018 , provisions for revenue reserves reduced product revenues by $6.4 million and $8.1 million , respectively. Trade Discounts and Allowances : The Company generally provides discounts on sales of Rhopressa ® and Rocklatan ® to its distributors for prompt payment and pays fees for distribution services and for certain data that distributors provide to the Company. The Company expects its distributors to earn these discounts and fees, and accordingly deducts the full amount of these discounts and fees from its gross product revenues at the time such revenues are recognized. Rebates, Chargebacks and Other Discounts : The Company contracts with Third-party Payers for coverage and reimbursement of Rhopressa ® and Rocklatan ® . The Company estimates the rebates 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 Rocklatan ® based on third-party data and actual utilization, (iii) inventory held by distributors and (iv) estimates of inventory held at the retail channel. Other discounts include the Company’s co-pay assistance coupon programs for commercially-insured patients meeting certain eligibility requirements. The calculation of the accrual for co-pay assistance is based on an estimate of claims and the cost per claim that the Company expects to pay associated with product that has been recognized as revenue. Product Returns : The Company estimates the amount of Rhopressa ® and Rocklatan ® that will be returned and deducts these estimated amounts from its gross revenue at the time the revenue is recognized. The Company currently estimates product returns based on historical industry information regarding rates for comparable pharmaceutical products and product portfolios, the estimated remaining shelf life of product 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. The Company did not have any contract assets (unbilled receivables) at September 30, 2019 or December 31, 2018 , as customer invoicing generally occurs before or at the time of revenue recognition. The Company did not have any contract liabilities at September 30, 2019 or December 31, 2018 , as the Company did not receive payments in advance of fulfilling its performance obligations to its customers. Amounts billed or invoiced are included in accounts receivable, net on the condensed consolidated balance sheets. |
Investments
Investments | 9 Months Ended |
Sep. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments Cash, cash equivalents and investments as of September 30, 2019 included the following: (in thousands) AMORTIZED COST GROSS UNREALIZED GAINS GROSS UNREALIZED LOSSES FAIR VALUE Cash and cash equivalents: Cash and money market funds $ 248,703 $ — $ (1 ) $ 248,702 Total cash and cash equivalents $ 248,703 $ — $ (1 ) $ 248,702 Investments: Commercial paper (due within 1 year) $ 39,551 $ — $ (24 ) $ 39,527 Corporate bonds (due within 1 year) 52,668 — (120 ) 52,548 Corporate bonds (due within 2 years) 5,033 — (13 ) 5,020 Total investments $ 97,252 $ — $ (157 ) $ 97,095 Total cash, cash equivalents and investments $ 345,955 $ — $ (158 ) $ 345,797 Cash and cash equivalents as of December 31, 2018 included the following: GROSS GROSS AMORTIZED UNREALIZED UNREALIZED FAIR (in thousands) COST GAINS LOSSES VALUE Cash and cash equivalents: Cash and money market funds $ 202,818 $ — $ — $ 202,818 Total cash and cash equivalents $ 202,818 $ — $ — $ 202,818 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2019 | |
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 September 30, 2019 (in thousands) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL Cash and cash equivalents: Cash and money market funds $ 248,702 $ — $ — $ 248,702 Total cash and cash equivalents: $ 248,702 $ — $ — $ 248,702 Investments: Commercial paper $ — $ 39,527 $ — 39,527 Corporate bonds — 57,568 — 57,568 Total investments $ — $ 97,095 $ — $ 97,095 Total cash, cash equivalents and investments: $ 248,702 $ 97,095 $ — $ 345,797 FAIR VALUE MEASUREMENTS AS OF December 31, 2018 (in thousands) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL Cash and cash equivalents: Cash and money market funds $ 202,818 $ — $ — $ 202,818 Total cash and cash equivalents: $ 202,818 $ — $ — $ 202,818 The fair value of the Company’s Convertible Notes was $187.9 million as of September 30, 2019 . The estimated fair value of Convertible Notes was determined based on a discounted cash flow analysis and a binomial lattice model. The valuation required the use of Level 3 unobservable inputs and subjective assumptions, including but not limited to the stock price volatility and bond yield. The use of alternative market assumptions and estimation methodologies could have had an effect on these estimates of fair value. |
Inventory
Inventory | 9 Months Ended |
Sep. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventory | Inventory Inventory consists of the following: (in thousands) SEPTEMBER 30, 2019 DECEMBER 31, 2018 Raw materials $ 1,076 $ 836 Work-in-process 7,327 6,885 Finished goods 6,270 2,391 Total inventory $ 14,673 $ 10,112 |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 9 Months Ended |
Sep. 30, 2019 | |
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) SEPTEMBER 30, 2019 DECEMBER 31, 2018 Manufacturing equipment $ 17,992 $ 2,366 Laboratory equipment 7,374 6,038 Furniture and fixtures 1,648 1,815 Software, computer and other equipment 6,567 2,702 Leasehold improvements 29,671 4,072 Construction-in-progress 3,980 49,057 Property, plant and equipment 67,232 66,050 Less: Accumulated depreciation (8,955 ) (5,525 ) Property, plant and equipment, net $ 58,277 $ 60,525 Manufacturing Plant Build-Out In the second quarter of 2019, the Company completed the build-out on its own manufacturing plant in Athlone, Ireland, for which it leases approximately 30,000 square feet of interior floor space and as such is not the legal owner of the space. However, in accordance with ASC Topic 842, the Company was deemed to be the owner of the leased space prior to completion of construction. Upon completion, the Company performed a sale-leaseback analysis and accounted for the transaction as a sale. The Company therefore derecognized the build-to-suit asset and the corresponding build-to-suit facility lease obligation of approximately $4.4 million as of the completion date. No gain or loss arose from the derecognition. The Company concurrently recognized an operating lease ROU asset and a corresponding operating lease liability related to the leaseback of the facility. See Note 8 for additional information. The build-to-suit facility lease obligation was approximately $4.5 million as of December 31, 2018. Also, upon completion of the build-out in the second quarter of 2019, amounts previously classified as construction-in-progress related to the manufacturing plant placed into service have been transferred to leasehold improvements and manufacturing equipment and are being amortized in accordance with the Company’s policy. See Note 2 |
Leases
Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | Leases The Company has operating leases for corporate offices, research and development facilities, and a fleet of vehicles. The properties primarily relate to the Company’s principal executive office and research facility located in Durham, North Carolina, regulatory, commercial support and other administrative activities located in Irvine, California, and clinical, finance and legal operations located in Bedminster, New Jersey. The Durham, North Carolina, facility consists of approximately 61,000 square feet of laboratory and office space under leases that expire between June 2020 and June 2024 and the Irvine, California, location consists of approximately 37,300 square feet of office space under a lease that expires in January 2022. The Company terminated its previous lease and entered into a lease for its new Bedminster, New Jersey, location, which consists of approximately 34,000 square feet of office space under a lease that expires in October 2029. There are also small offices in Malta, Ireland, the United Kingdom and Japan. The Company is leasing approximately 30,000 square feet of interior floor space in Athlone, Ireland, for its manufacturing plant in Athlone, Ireland, which the Company has concluded is an operating lease upon completion of the build-out in the second quarter of 2019. As a result, the Company concurrently recognized an operating lease ROU asset and a corresponding operating lease liability related to the leaseback of the facility of approximately $2.4 million upon completion of the build-out. The Company is reasonably certain it will remain in the lease through the end of its lease term in 2037, however, the Company is permitted to terminate the lease as early as September 2027. The Company’s operating leases have remaining lease terms of approximately 1 year to 18 years , some of which include options to extend the leases. Balance sheet information related to leases was as follows: (in thousands) SEPTEMBER 30, 2019 Operating Leases Operating lease right-of-use assets $ 17,216 Operating lease liabilities $ 5,802 Long-term operating lease liabilities 12,235 Total operating lease liabilities $ 18,037 The Company’s right-of-use assets obtained in exchange for operating lease obligations was $ 2.8 million during the nine months ended September 30, 2019 . SEPTEMBER 30, 2019 Operating Leases Weighted-average remaining lease term 8 years Weighted-average discount rate 8 % Maturities of lease liabilities as of September 30, 2019 were as follows: (in thousands) OPERATING Year Ending December 31, LEASES Remainder of 2019 $ 1,479 2020 5,757 2021 4,031 2022 1,725 2023 1,715 Thereafter 10,997 Total undiscounted lease payments 25,704 Less: present value adjustment (7,667 ) Total lease liabilities $ 18,037 Under prior lease guidance, minimum lease payments under operating leases were as follows at December 31, 2018 : (in thousands) OPERATING Year Ending December 31, LEASES 2019 $ 4,283 2020 4,855 2021 4,278 2022 1,643 2023 1,438 Thereafter 6,698 Total minimum lease payments $ 23,195 Lease expense for the Company’s operating leases was $1.4 million and $3.9 million , including variable lease payments of $0.3 million and $1.1 million , for the three and nine months ended September 30, 2019 , respectively. Rent expense for the Company’s operating leases was $1.0 million and $2.4 million for the three and nine months ended September 30, 2018 , respectively. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 9 Months Ended |
Sep. 30, 2019 | |
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) SEPTEMBER 30, 2019 DECEMBER 31, 2018 Accrued compensation and benefits $ 10,005 $ 10,438 Accrued consulting and professional fees 4,326 3,927 Accrued research and development expenses (1) 5,538 7,503 Accrued revenue reserves 34,060 10,155 Accrued other (2) 1,799 6,358 Total accrued expenses and other current liabilities $ 55,728 $ 38,381 (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 for the Company’s product candidates prior to receipt of regulatory approval, as well as other business-related expenses. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt Credit Facility In September 2019, the Company terminated its $200 million credit facility with certain entities affiliated with Deerfield Management Company L.P. (“Deerfield”) pursuant to which $100 million of delayed draw term loan commitments were provided by Deerfield in July 2018 (the “July 2018 tranche”) and $100 million of delayed draw term loan commitments were provided by Deerfield in May 2019 (the “May 2019 tranche”). Upon termination, the Company paid aggregate fees of $6.5 million to Deerfield in respect of the fee on undrawn amounts and the exit fee for each of the July 2018 tranche and May 2019 tranche. No funds were drawn under either tranche at the time of termination. Convertible Notes I n September 2019, the Company issued an aggregate principal amount of $316.25 million of Convertible Notes to qualified institutional buyers pursuant to Rule 144A of the Securities Act of 1933, as amended. The Convertible Notes, governed by an indenture between the Company and a trustee, are senior, unsecured obligations and do not include financial and operating covenants nor any restrictions on the payments of dividends, the incurrence of indebtedness or the issuance or repurchase of securities by Aerie or any of its subsidiaries. Interest on the Convertible Notes is payable semi-annually in cash in arrears at a rate of 1.50% per annum on April 1 and October 1 of each year, beginning on April 1, 2020. The Convertible Notes will mature on October 1, 2024 unless they are redeemed, repurchased or converted prior to such date. Prior to April 1, 2024, the Convertible Notes will be convertible at the option of holders only during certain periods and upon satisfaction of certain conditions. On and after April 1, 2024, the Convertible Notes will be convertible at the option of the holders any time until the close of business on the second scheduled trading day immediately preceding the maturity date. Upon conversion, the Convertible Notes may be settled in shares of Aerie common stock, cash or a combination, thereof, at the Company's election. The Company intends to settle the principal and interest amounts of the Convertible Notes in cash, and therefore, the Company currently does not expect the conversion to have a dilutive effect on the Company’s earnings per share, as applicable. The Convertible Notes have an initial conversion rate of 40.04 shares of Aerie common stock per $1,000 principal amount of the Convertible Notes, which will be subject to customary anti-dilution adjustments in certain circumstances. This represents an initial effective conversion price of approximately $24.98 per share, which represents a premium of approximately 35% to the $18.50 per share closing price of Aerie common stock on September 4, 2019, the date the Company priced the offering. The Company may redeem all or any portion of the Convertible Notes, at its option, on or after October 3, 2022, at a cash redemption price equal to 100% of the principal amount of the Convertible Notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding, the redemption date, but only if the last reported sale price of Aerie common stock exceeds 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately before the date the Company provides written notice of redemption; and the trading day immediately before the notice is sent. Holders of Convertible Notes may require the Company to repurchase their Convertible Notes upon the occurrence of certain events that constitute a fundamental change under the indenture governing the Convertible Notes at a fundamental change repurchase price equal to 100% of the principal amount thereof, plus accrued and unpaid interest to, but excluding, the fundamental change repurchase date. During the three months ended September 30, 2019 , the conditions allowing holders of the Convertible Notes to elect to convert had not been met. As of September 30, 2019 , the if-converted value of the Convertible Notes did not exceed the principal amount of the Convertible Notes. In connection with the issuance of the Convertible Notes, the Company incurred debt issuance costs of $9.2 million for the three months ended September 30, 2019 . In accordance with ASC Topic 470, Debt , these costs were allocated to debt and equity components in proportion to the allocation of proceeds. Issuance costs of $5.5 million were recorded as debt issuance costs in the net carrying value of Convertible Notes. The debt issuance costs are amortized on an effective interest basis over the term of the Convertible Notes. The remaining issuance costs of $3.7 million were recorded as additional paid-in capital, net with the equity component and such amounts are not subject to amortization. The following table summarizes the carrying value of the Convertible Notes as of September 30, 2019 : (in thousands) SEPTEMBER 30, 2019 Gross proceeds $ 316,250 Unamortized debt discount and issuance costs (132,697 ) Carrying value $ 183,553 The equity component of the Convertible Notes was recognized at issuance and represents the difference between the principal amount of the Convertible Notes and the fair value of the liability component of the Convertible Notes at issuance. The equity component was approximately $128.4 million at the time of issuance and its fair value is not remeasured as long as it continues to meet the conditions for equity classification. Separately, the Company entered into privately negotiated capped call options with financial institutions. The capped call options cover, subject to customary anti-dilution adjustments, the number of shares of Aerie common stock that initially underlie the Convertible Notes. The cap price of the capped call options is $37.00 per share of Aerie common stock, representing a premium of 100% above the closing price of $18.50 per share of Aerie common stock on September 4, 2019, and is subject to certain adjustments under the terms of the capped call options. The capped call options are generally intended to reduce or offset potential dilution to Aerie common stock upon conversion of the Convertible Notes with such reduction and/ or offset, as the case may be, subject to a cap based on the cap price. The Company paid a total of $32.9 million in premiums for the capped call options, which was recorded as additional paid-in capital, using a portion of the gross proceeds from the issuance and sale of the Convertible Notes. The capped call options are excluded from diluted earnings per share because the impact would be anti-dilutive. Interest expense related to the Convertible Notes, including stated interest and amortization of debt discount and issuance costs, was $1.4 million for the three months ended September 30, 2019 . Interest expense was $6.6 million and $9.0 million for the three and nine months ended September 30, 2019 , respectively, and included amortization of debt discount and issuance costs related to the Convertible Notes and issuance costs and fees related to the credit facility. Interest expense was $0.8 million and $1.7 million for the three and nine months ended September 30, 2018 , respectively, and included amortization of debt discount and issuance costs related to the 2014 Convertible Notes (as defined below) through the date of conversion, as well as issuance costs and fees related to the July 2018 tranche of the credit facility. In July 2018, the entire outstanding principal amount of senior secured convertible notes (the “2014 Convertible Notes”) was converted into shares of Aerie common stock. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Warrants As of September 30, 2019 , 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 November 2019 4,500 $5.00 August 2020 223,481 $0.05 December 2019 The warrants outstanding as of September 30, 2019 are all currently exercisable. In October 2019, 298,481 warrants outstanding as of September 30, 2019 were exercised for shares of Aerie common stock. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Stock-based compensation expense for options granted, RSAs, performance stock awards (“PSAs”), RSUs, SARs and stock purchase rights is reflected in the condensed consolidated statements of operations and comprehensive loss as follows: THREE MONTHS ENDED NINE MONTHS ENDED (in thousands) 2019 2018 2019 2018 Selling, general and administrative $ 7,041 $ 6,682 $ 23,253 $ 20,022 Pre-approval commercial manufacturing 807 700 2,490 1,804 Research and development 2,758 2,596 8,178 7,189 Total $ 10,606 $ 9,978 $ 33,921 $ 29,015 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.” The 2005 Plan was frozen in 2013 and no additional awards have been or will be made under the 2005 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. 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 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, 2018 6,935,119 $ 28.96 Granted 2,046,583 32.54 Exercised (139,119 ) 28.74 Canceled (307,317 ) 51.53 Options outstanding at September 30, 2019 8,535,266 $ 29.02 6.8 $ 28,534 Options exercisable at September 30, 2019 5,404,516 $ 23.00 5.4 $ 28,304 As of September 30, 2019 , the Company had $80.2 million of unrecognized compensation expense related to options granted under its equity plans. This expense is expected to be recognized over a weighted average period of 2.7 years as of September 30, 2019 . Restricted Stock Awards The following table summarizes the RSAs, including PSAs, activity under the Plans: NUMBER OF SHARES WEIGHTED AVERAGE FAIR VALUE PER SHARE Non-vested RSAs at December 31, 2018 572,706 $ 48.18 Granted 494,167 41.13 Vested (214,276 ) 45.76 Canceled (97,418 ) 48.85 Non-vested RSAs at September 30, 2019 755,179 $ 44.20 As of September 30, 2019 , the Company had $26.2 million of unrecognized compensation expense related to unvested RSAs, including PSAs. This expense is expected to be recognized over the weighted average period of 2.8 years as of September 30, 2019 . 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 nine months ended September 30, 2019 , vesting for the remaining PSAs was deemed probable to occur. As of September 30, 2019 , 69,171 PSAs were vested. As of September 30, 2019 , 43,071 non-vested RSAs were cancelled and replaced with a corresponding number of RSUs. The RSUs were issued with the same vesting provisions as the cancelled RSAs. Accordingly, the 43,071 RSUs outstanding at September 30, 2019 were non-vested. As of September 30, 2019 , the weighted average fair value per RSU was $19.22 , and the associated unrecognized compensation expense totaled $2.1 million . This expense is expected to be recognized over the weighted average period of 2.9 years as of September 30, 2019 . Stock Appreciation Rights The following table summarizes the SARs activity under the Plans: NUMBER OF WEIGHTED AVERAGE WEIGHTED AGGREGATE SARs outstanding at December 31, 2018 91,000 $ 53.83 Granted 113,851 33.73 Exercised — — Canceled (26,687 ) 50.15 SARs outstanding at September 30, 2019 178,164 $ 41.49 4.2 $ — SARs exercisable at September 30, 2019 17,250 $ 54.35 3.5 $ — |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and ContingenciesThe Company may periodically become subject to legal proceedings and claims arising in connection with its business. The Company is not a party to any known litigation, is not aware of any material unasserted claims and does not have contingency reserves established for any litigation liabilities. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
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 presentation of the Company’s condensed consolidated financial position and results of operations for the interim periods presented. Certain information and disclosures normally included in the annual consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. These interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes for the year ended December 31, 2018 included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on March 1, 2019. The results for the three and nine months ended September 30, 2019 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. Certain reclassifications have been made to prior year amounts to conform to the current year presentation. |
Use of Estimates | Use of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and reported amounts of income and expenses during the reporting periods. Significant items subject to such estimates and assumptions include revenue recognition, inventories, lease accounting, accrued expenses, fair value measurements, acquisitions and stock-based compensation. Actual results could differ from the Company’s estimates. |
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 sheets. The Company relies on its third-party manufacturers to produce the active pharmaceutical ingredient (“API”) and final drug product for Rhopressa ® and Rocklatan ® and may rely on third-party manufacturers for its current and future product candidates. The Company obtained FDA approval for an additional Rhopressa ® drug product contract manufacturer in the first quarter of 2019, which began to supply commercial product in the second quarter of 2019. Further, the Company has obtained FDA approval for an additional API contract manufacturer, which began to supply commercial API in the second quarter of 2019. The Company is in the process of adding an additional Rocklatan ® drug product contract manufacturer, which is expected to begin commercial supply in early 2020. In addition, the Company has established its own manufacturing plant in Athlone, Ireland, for future commercial production of Rhopressa ® , Rocklatan ® , and if approved, Rhokiinsa ® and Roclanda ® . In September 2019, the Company submitted a prior approval supplement (“PAS”) for the plant to the FDA, which, if approved, will permit production of Rocklatan ® by the plant for sale in the United States. Commercial supply is expected to be available in early 2020 . The Company expects to continue to use product sourced from its contract manufacturers when its manufacturing plant in Athlone, Ireland, is operational. |
Revenue Recognition | Revenue Recognition The Company accounts for its revenue transactions under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers (“ASC Topic 606”). In accordance with ASC Topic 606, the Company recognizes revenues when its customers obtain control of its product for 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. Aerie’s customers 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. Net product revenue is typically recognized when distributors obtain control of the Company’s products, which occurs at a point in time, typically upon delivery of product to the distributors. 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. The Company does 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 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. Shipping and handling costs related to the Company’s product sales are included in selling, general and administrative expenses. The Company’s net product revenues through September 30, 2019 were generated through sales of Rhopressa ® , which was commercially launched in the United States on April 30, 2018, and sales of Rocklatan ® , which was commercially launched in the United States on May 1, 2019 |
Inventories | Inventories Inventories are stated at the lower of cost or net realizable value. The Company determines the cost of inventory using the first-in, first-out (“FIFO”) method. The Company analyzes its inventory levels at least quarterly and writes down inventory that is expected to expire prior to being sold, inventory in excess of expected sales requirements and inventory that fails to meet commercial sale specifications, with a corresponding charge to cost of goods sold. The determination of whether inventory costs will be realizable requires estimates by management of future expected inventory requirements based on sales forecasts. If actual net realizable value is less than the estimated amount or if actual market conditions are less favorable than the Company’s projections, additional inventory write-downs may be required. Charges for inventory write-downs are not reversed if it is later determined that the product is saleable. Prior to the date the Company obtains regulatory approval for its product candidates or its manufacturing facilities such as its manufacturing plant in Athlone, Ireland, manufacturing costs related to commercial production are expensed as pre-approval commercial manufacturing expense on the condensed consolidated statements of operations and comprehensive loss. Once regulatory approval is obtained, the Company capitalizes such costs as inventory on the condensed consolidated balance sheets. |
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 yet been placed in service and are not depreciated or amortized. 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. |
Leases | Leases The Company determines if an arrangement is a lease at inception. For each lease, the lease term is determined at the commencement date and includes renewal options and termination options when it is reasonably certain that the Company will exercise that option. Operating leases with lease terms greater than one year are included in operating lease right-of-use (“ROU”) assets and current and long-term operating lease liabilities in the Company’s condensed consolidated balance sheets. Operating lease ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease liabilities are recognized at commencement date based on the present value of lease payments over the lease term using an estimated rate of interest the Company would have to pay to borrow equivalent funds on a collateralized basis at the lease commencement date. The operating lease ROU assets are based on the liability adjusted for any prepaid or deferred rent and lease incentives. The incremental borrowing rate was utilized to discount lease payments over the expected term given that the Company’s operating leases do not provide an implicit rate. The Company estimates the incremental borrowing rate to reflect the profile of secured borrowing over the expected term of the leases based on the information available at the later of the date of adoption or the lease commencement date. Rent expense for the operating lease is recognized on a straight-line basis over the lease term. The Company’s lease agreements have lease and non-lease components, which are generally accounted for as a single lease component. Non-lease components include lease operating expenses, which are variable costs under the Company’s current leases. For vehicle leases, the Company accounts for the lease and non-lease components as a single lease component and applies a portfolio approach to effectively account for the operating lease ROU assets and liabilities. |
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 the ASC Topic 320, Investments-Debt and Equity Securities . The Company classifies investments available to fund current operations as current assets on its condensed consolidated balance sheets. Investments are classified as long-term assets on the condensed 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 in comprehensive loss on the condensed consolidated statements of operations and comprehensive loss and in accumulated other comprehensive loss on the condensed consolidated balance sheets. |
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. The fair value of restricted stock awards (“RSAs”) and restricted stock units (“RSUs”) granted are based on the market value of Aerie’s common stock on the date of grant. Compensation expense related to time-based RSAs and RSUs 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. |
Convertible Notes Transactions | Convertible Notes Transactions The Company separately accounts for the liability and equity components of convertible notes transactions that can be settled in cash by allocating the proceeds from issuance between the liability component and the embedded conversion option in accordance with accounting for convertible debt instruments that may be settled in cash (including partial cash settlement) upon conversion. The value of the equity component is calculated by first measuring the fair value of the liability component, using the interest rate of a similar liability that does not have a conversion feature, as of the issuance date. The difference between the proceeds from the convertible debt issuance and the amount measured as the liability component is recorded as the equity component with a corresponding discount recorded on the debt. The Company recognizes amortization of the resulting discount using the effective interest method as interest expense on the condensed consolidated statements of operations and comprehensive loss. The equity component is not remeasured as long as it continues to meet the conditions for equity classification. The Company allocates issuance costs incurred to the liability and equity components. Issuance costs attributable to the liability component are amortized to expense over the respective term of the convertible notes, and issuance costs attributable to the equity component are netted with the respective equity component in additional paid-in capital. In September 2019, the Company bought capped call options from financial institutions to minimize the impact of potential dilution of the Company’s common stock upon conversion of its Convertible Notes. The capped call options meet the definition of a derivative in accordance with ASC 815, Derivatives and Hedging |
Adoption of New Accounting Standards and Recent Accounting Pronouncements | Adoption of New Accounting Standards In June 2018, the FASB issued ASU 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting (“ASU 2018-07”) , which expands the scope of ASC Topic 718, Compensation—Stock Compensation to include share-based payments issued to non-employees for goods or services. Consequently, the accounting for share-based payments to non-employees and employees will be substantially aligned. This ASU was effective for the Company beginning January 1, 2019. The adoption of ASU 2018-07 did not have a material impact on the Company’s consolidated financial statements and disclosures. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) (“ASC Topic 842”). ASC Topic 842 is intended to improve financial reporting of leasing transactions by requiring organizations that lease assets to recognize assets and liabilities for the rights and obligations created by leases that extend more than twelve months on the balance sheet. This accounting update also requires additional disclosures surrounding the amount, timing, and uncertainty of cash flows arising from leases. ASC Topic 842 is effective for financial statements issued for annual and interim periods beginning on January 1, 2019. The Company has elected the optional transition method that provided the option to use the effective date of ASC Topic 842 as the date of initial application on transition. Accordingly, the Company did not adjust comparative periods or make the new required lease disclosures for periods before the effective date of January 1, 2019. There was no cumulative effect adjustment recognized to accumulated deficit upon adoption. As of the date of adoption of the new leasing standards, the Company recognized an operating lease ROU asset of approximately $17.3 million and a corresponding operating lease liability of approximately $17.9 million , which are included in the condensed consolidated balance sheets. The adoption of the new leasing standards did not have a material impact on the condensed consolidated statements of operations and comprehensive loss. The Company elected to utilize the package of practical expedients permitted in ASC Topic 842. Accordingly, the Company accounted for its existing operating leases as operating leases under the new guidance (i) without reassessing the classification of the operating leases in accordance with ASC Topic 842, (ii) without reassessing whether an existing contract contained a lease and (iii) without reassessing initial direct costs. In addition, the Company elected not to allocate the consideration between lease and non-lease components for its operating leases. The Company also reassessed its lease conclusions for its manufacturing plant in Athlone, Ireland, under ASC Topic 842 since construction was still in progress as of the date of adoption. Upon the reassessment, the Company concluded it was the owner of the leased space for accounting purposes under ASC Topic 842 as of the date of adoption and therefore, maintained its previous build-to-suit lease accounting under the transition guidance of ASC Topic 842. Recent Accounting Pronouncements In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820-10): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”), which changes the fair value measurement disclosure requirements of ASC Topic 820. Under this ASU, certain disclosure requirements for fair value measurements are eliminated, amended or added. These changes aim to improve the overall usefulness of disclosures to financial statement users and reduce unnecessary costs to companies when preparing the disclosures. The guidance is effective for the Company beginning on January 1, 2020 and prescribes different transition methods for the various provisions. The Company does not expect the adoption of ASU 2018-13 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 (“ASU 2016-13”), 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 likelihood of the loss occurring is probable. 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. In November 2018, the FASB issued ASU No. 2018-19, Codification Improvements to Topic 326, Financial Instruments-Credit Losses (“ASU 2018-19”), which clarifies that receivables from operating leases are accounted for using the lease guidance and not as financial instruments. Further, in May 2019, the FASB issued ASU No. 2019-05, Financial Instruments—Credit Losses (Topic 326), Targeted Transition Relief (“ASU 2019-05”), which provides transition relief and allows allow entities to elect the fair value option on certain financial instrument. The guidance is effective for the Company beginning on January 1, 2020. The new guidance prescribes different transition methods for the various provisions. The Company does not expect the adoption of ASU 2016-13, ASU 2018-19 or ASU 2019-05 to have a material impact 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 may be adjusted for certain items related to the dilutive securities. For all periods presented, Aerie’s potential common stock equivalents have been excluded from the computation of Diluted EPS as their inclusion would have had an anti-dilutive effect. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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, computer and other 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) SEPTEMBER 30, 2019 DECEMBER 31, 2018 Manufacturing equipment $ 17,992 $ 2,366 Laboratory equipment 7,374 6,038 Furniture and fixtures 1,648 1,815 Software, computer and other equipment 6,567 2,702 Leasehold improvements 29,671 4,072 Construction-in-progress 3,980 49,057 Property, plant and equipment 67,232 66,050 Less: Accumulated depreciation (8,955 ) (5,525 ) Property, plant and equipment, net $ 58,277 $ 60,525 |
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 NINE MONTHS ENDED 2019 2018 2019 2018 Outstanding stock options 8,535,266 6,951,639 8,535,266 6,951,639 Stock purchase warrants 79,500 154,500 79,500 154,500 Non-vested restricted stock awards and performance share units 755,179 584,124 755,179 584,124 Non-vested restricted stock units 43,071 — 43,071 — Total 9,413,016 7,690,263 9,413,016 7,690,263 |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Cash, Cash Equivalents and Investments | Cash, cash equivalents and investments as of September 30, 2019 included the following: (in thousands) AMORTIZED COST GROSS UNREALIZED GAINS GROSS UNREALIZED LOSSES FAIR VALUE Cash and cash equivalents: Cash and money market funds $ 248,703 $ — $ (1 ) $ 248,702 Total cash and cash equivalents $ 248,703 $ — $ (1 ) $ 248,702 Investments: Commercial paper (due within 1 year) $ 39,551 $ — $ (24 ) $ 39,527 Corporate bonds (due within 1 year) 52,668 — (120 ) 52,548 Corporate bonds (due within 2 years) 5,033 — (13 ) 5,020 Total investments $ 97,252 $ — $ (157 ) $ 97,095 Total cash, cash equivalents and investments $ 345,955 $ — $ (158 ) $ 345,797 Cash and cash equivalents as of December 31, 2018 included the following: GROSS GROSS AMORTIZED UNREALIZED UNREALIZED FAIR (in thousands) COST GAINS LOSSES VALUE Cash and cash equivalents: Cash and money market funds $ 202,818 $ — $ — $ 202,818 Total cash and cash equivalents $ 202,818 $ — $ — $ 202,818 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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 September 30, 2019 (in thousands) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL Cash and cash equivalents: Cash and money market funds $ 248,702 $ — $ — $ 248,702 Total cash and cash equivalents: $ 248,702 $ — $ — $ 248,702 Investments: Commercial paper $ — $ 39,527 $ — 39,527 Corporate bonds — 57,568 — 57,568 Total investments $ — $ 97,095 $ — $ 97,095 Total cash, cash equivalents and investments: $ 248,702 $ 97,095 $ — $ 345,797 FAIR VALUE MEASUREMENTS AS OF December 31, 2018 (in thousands) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL Cash and cash equivalents: Cash and money market funds $ 202,818 $ — $ — $ 202,818 Total cash and cash equivalents: $ 202,818 $ — $ — $ 202,818 |
Inventory (Tables)
Inventory (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventory consists of the following: (in thousands) SEPTEMBER 30, 2019 DECEMBER 31, 2018 Raw materials $ 1,076 $ 836 Work-in-process 7,327 6,885 Finished goods 6,270 2,391 Total inventory $ 14,673 $ 10,112 |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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, computer and other 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) SEPTEMBER 30, 2019 DECEMBER 31, 2018 Manufacturing equipment $ 17,992 $ 2,366 Laboratory equipment 7,374 6,038 Furniture and fixtures 1,648 1,815 Software, computer and other equipment 6,567 2,702 Leasehold improvements 29,671 4,072 Construction-in-progress 3,980 49,057 Property, plant and equipment 67,232 66,050 Less: Accumulated depreciation (8,955 ) (5,525 ) Property, plant and equipment, net $ 58,277 $ 60,525 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Schedule of Operating Lease Assets and Liabilities | Balance sheet information related to leases was as follows: (in thousands) SEPTEMBER 30, 2019 Operating Leases Operating lease right-of-use assets $ 17,216 Operating lease liabilities $ 5,802 Long-term operating lease liabilities 12,235 Total operating lease liabilities $ 18,037 |
Schedule of Weighted Average Lease Term | SEPTEMBER 30, 2019 Operating Leases Weighted-average remaining lease term 8 years Weighted-average discount rate 8 % |
Lessee, Operating Lease, Liability, Maturity | Maturities of lease liabilities as of September 30, 2019 were as follows: (in thousands) OPERATING Year Ending December 31, LEASES Remainder of 2019 $ 1,479 2020 5,757 2021 4,031 2022 1,725 2023 1,715 Thereafter 10,997 Total undiscounted lease payments 25,704 Less: present value adjustment (7,667 ) Total lease liabilities $ 18,037 |
Schedule of Future Minimum Rental Payments for Operating Leases | Under prior lease guidance, minimum lease payments under operating leases were as follows at December 31, 2018 : (in thousands) OPERATING Year Ending December 31, LEASES 2019 $ 4,283 2020 4,855 2021 4,278 2022 1,643 2023 1,438 Thereafter 6,698 Total minimum lease payments $ 23,195 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Payables and Accruals [Abstract] | |
Summary of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consist of the following: (in thousands) SEPTEMBER 30, 2019 DECEMBER 31, 2018 Accrued compensation and benefits $ 10,005 $ 10,438 Accrued consulting and professional fees 4,326 3,927 Accrued research and development expenses (1) 5,538 7,503 Accrued revenue reserves 34,060 10,155 Accrued other (2) 1,799 6,358 Total accrued expenses and other current liabilities $ 55,728 $ 38,381 (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 for the Company’s product candidates prior to receipt of regulatory approval, as well as other business-related expenses. |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Convertible Notes | The following table summarizes the carrying value of the Convertible Notes as of September 30, 2019 : (in thousands) SEPTEMBER 30, 2019 Gross proceeds $ 316,250 Unamortized debt discount and issuance costs (132,697 ) Carrying value $ 183,553 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Schedule of Equity Classified Warrants Outstanding | As of September 30, 2019 , 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 November 2019 4,500 $5.00 August 2020 223,481 $0.05 December 2019 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Stock-Based Compensation Expense | Stock-based compensation expense for options granted, RSAs, performance stock awards (“PSAs”), RSUs, SARs and stock purchase rights is reflected in the condensed consolidated statements of operations and comprehensive loss as follows: THREE MONTHS ENDED NINE MONTHS ENDED (in thousands) 2019 2018 2019 2018 Selling, general and administrative $ 7,041 $ 6,682 $ 23,253 $ 20,022 Pre-approval commercial manufacturing 807 700 2,490 1,804 Research and development 2,758 2,596 8,178 7,189 Total $ 10,606 $ 9,978 $ 33,921 $ 29,015 |
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, 2018 6,935,119 $ 28.96 Granted 2,046,583 32.54 Exercised (139,119 ) 28.74 Canceled (307,317 ) 51.53 Options outstanding at September 30, 2019 8,535,266 $ 29.02 6.8 $ 28,534 Options exercisable at September 30, 2019 5,404,516 $ 23.00 5.4 $ 28,304 |
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 Non-vested RSAs at December 31, 2018 572,706 $ 48.18 Granted 494,167 41.13 Vested (214,276 ) 45.76 Canceled (97,418 ) 48.85 Non-vested RSAs at September 30, 2019 755,179 $ 44.20 |
Schedule of Stock Appreciation Rights | The following table summarizes the SARs activity under the Plans: NUMBER OF WEIGHTED AVERAGE WEIGHTED AGGREGATE SARs outstanding at December 31, 2018 91,000 $ 53.83 Granted 113,851 33.73 Exercised — — Canceled (26,687 ) 50.15 SARs outstanding at September 30, 2019 178,164 $ 41.49 4.2 $ — SARs exercisable at September 30, 2019 17,250 $ 54.35 3.5 $ — |
The Company (Details)
The Company (Details) rkim in Thousands | 9 Months Ended | ||
Sep. 30, 2019USD ($)segmentrkimproduct | May 31, 2019USD ($) | Jul. 31, 2018USD ($) | |
Organization, Consolidation and Presentation of Financial Statements [Line Items] | |||
Number of operating segments | segment | 1 | ||
Number U.S. FDA approved products | product | 2 | ||
Number of rho kinase inhibitor molecules owned (over) | rkim | 4 | ||
Aggregate principal amount | $ 316,250,000 | ||
Revolving Credit Facility | |||
Organization, Consolidation and Presentation of Financial Statements [Line Items] | |||
Maximum borrowing capacity | 200,000,000 | ||
Delayed Draw Term Loan | Revolving Credit Facility | |||
Organization, Consolidation and Presentation of Financial Statements [Line Items] | |||
Maximum borrowing capacity | 200,000,000 | $ 100,000,000 | $ 100,000,000 |
Convertible Notes | 2024 Notes | |||
Organization, Consolidation and Presentation of Financial Statements [Line Items] | |||
Aggregate principal amount | $ 316,250,000 | ||
Debt instrument, interest rate percentage | 1.50% |
Significant Accounting Polici_4
Significant Accounting Policies - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Jan. 01, 2019 | Dec. 31, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Period of stranded credit terms (not more than) | 75 days | |||||
Interest income | $ 500,000 | $ 800,000 | $ 1,800,000 | $ 2,500,000 | ||
Gross realized loss | 0 | 0 | $ 200,000 | |||
Operating lease right-of-use assets | 17,216,000 | 17,216,000 | $ 0 | |||
Operating lease, liability | $ 18,037,000 | $ 18,037,000 | ||||
Warrants exercise price (in dollars per share) | $ 0.05 | $ 0.05 | ||||
Accounting Standards Update 2016-02 | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Operating lease right-of-use assets | $ 17,300,000 | |||||
Operating lease, liability | $ 17,900,000 |
Significant Accounting Polici_5
Significant Accounting Policies - Schedule of Estimated Useful Lives (Details) | 9 Months Ended |
Sep. 30, 2019 | |
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, computer and other equipment | |
Property, Plant and Equipment [Line Items] | |
Useful lives | 3 years |
Significant Accounting Polici_6
Significant Accounting Policies - Antidilutive Securities (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
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) | 9,413,016 | 7,690,263 | 9,413,016 | 7,690,263 |
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) | 8,535,266 | 6,951,639 | 8,535,266 | 6,951,639 |
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) | 79,500 | 154,500 | 79,500 | 154,500 |
Non-vested restricted stock awards and performance share units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Potential common stock equivalents excluded from the computation of diluted net loss per share (in shares) | 755,179 | 584,124 | 755,179 | 584,124 |
Non-vested restricted stock units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Potential common stock equivalents excluded from the computation of diluted net loss per share (in shares) | 43,071 | 0 | 43,071 | 0 |
Revenue Recognition (Details)
Revenue Recognition (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)distributor | Sep. 30, 2018USD ($)distributor | |
Disaggregation of Revenue [Line Items] | ||||
Provisions for revenue reserves to reduce product revenues to product revenues, net | $ | $ 31 | $ 6.4 | $ 73.8 | $ 8.1 |
Customer Concentration Risk | Sales Revenue, Net | Rhopressa | ||||
Disaggregation of Revenue [Line Items] | ||||
Number of distributors | distributor | 3 | 3 | ||
Customer Concentration Risk | Sales Revenue, Net | Rhopressa | Distributor One | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk percentage | 37.00% | 34.00% | ||
Customer Concentration Risk | Sales Revenue, Net | Rhopressa | Distributor Two | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk percentage | 31.00% | 32.00% | ||
Customer Concentration Risk | Sales Revenue, Net | Rhopressa | Distributor Three | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk percentage | 30.00% | 31.00% |
Investments (Details)
Investments (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Cash and cash equivalents: | ||
Cash and cash equivalents, Amortized Cost | $ 248,703 | $ 202,818 |
Cash and cash equivalents, Gross Unrealized Gains | 0 | 0 |
Cash and cash equivalents, Gross Unrealized Losses | (1) | 0 |
Cash and cash equivalents | 248,702 | 202,818 |
Investments: | ||
Investments, Gross Unrealized Gains | 0 | |
Investments, Gross Unrealized Losses | (158) | |
Total cash, cash equivalents and investments, Amortized Cost | 345,955 | |
Total cash, cash equivalents and investments, Fair Value | 345,797 | |
Investments | ||
Investments: | ||
Investments, Amortized Cost | 97,252 | |
Investments, Gross Unrealized Gains | 0 | |
Investments, Gross Unrealized Losses | (157) | |
Investments, Fair Value | 97,095 | |
Commercial paper (due within 1 year) | ||
Investments: | ||
Investments, Amortized Cost | 39,551 | |
Investments, Gross Unrealized Gains | 0 | |
Investments, Gross Unrealized Losses | (24) | |
Investments, Fair Value | 39,527 | |
Corporate bonds (due within 1 year) | ||
Investments: | ||
Investments, Amortized Cost | 52,668 | |
Investments, Gross Unrealized Gains | 0 | |
Investments, Gross Unrealized Losses | (120) | |
Investments, Fair Value | 52,548 | |
Corporate bonds (due within 2 years) | ||
Investments: | ||
Investments, Amortized Cost | 5,033 | |
Investments, Gross Unrealized Gains | 0 | |
Investments, Gross Unrealized Losses | (13) | |
Investments, Fair Value | 5,020 | |
Cash and money market funds | ||
Cash and cash equivalents: | ||
Cash and cash equivalents, Amortized Cost | 248,703 | 202,818 |
Cash and cash equivalents, Gross Unrealized Gains | 0 | 0 |
Cash and cash equivalents, Gross Unrealized Losses | (1) | 0 |
Cash and cash equivalents | $ 248,702 | $ 202,818 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets and Liabilities by Level of Input (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash and cash equivalents | $ 248,702 | $ 202,818 |
Total investments | 97,095 | |
Total cash, cash equivalents and investments | 345,797 | |
LEVEL 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash and cash equivalents | 248,702 | 202,818 |
Total investments | 0 | |
Total cash, cash equivalents and investments | 248,702 | |
LEVEL 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash and cash equivalents | 0 | 0 |
Total investments | 97,095 | |
Total cash, cash equivalents and investments | 97,095 | |
LEVEL 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash and cash equivalents | 0 | 0 |
Total investments | 0 | |
Total cash, cash equivalents and investments | 0 | |
Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total investments | 39,527 | |
Commercial paper | LEVEL 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total investments | 0 | |
Commercial paper | LEVEL 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total investments | 39,527 | |
Commercial paper | LEVEL 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total investments | 0 | |
Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total investments | 57,568 | |
Corporate bonds | LEVEL 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total investments | 0 | |
Corporate bonds | LEVEL 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total investments | 57,568 | |
Corporate bonds | LEVEL 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total investments | 0 | |
Cash and money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash and cash equivalents | 248,702 | 202,818 |
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 | 248,702 | 202,818 |
Cash and money market funds | LEVEL 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash and cash equivalents | 0 | 0 |
Cash and money market funds | LEVEL 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash and cash equivalents | $ 0 | $ 0 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) $ in Millions | Sep. 30, 2019USD ($) |
Convertible Notes | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Debt, fair value | $ 187.9 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 1,076 | $ 836 |
Work-in-process | 7,327 | 6,885 |
Finished goods | 6,270 | 2,391 |
Total inventory | $ 14,673 | $ 10,112 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net (Details) ft² in Thousands, $ in Thousands | 3 Months Ended | ||
Jun. 30, 2019USD ($)ft² | Sep. 30, 2019USD ($) | Dec. 31, 2018USD ($) | |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 67,232 | $ 66,050 | |
Less: Accumulated depreciation | (8,955) | (5,525) | |
Property, plant and equipment, net | 58,277 | 60,525 | |
Build-to-suit lease obligation derecognized | $ 4,400 | ||
Build-to-suit, long term obligation | 4,500 | ||
Ireland | |||
Property, Plant and Equipment [Line Items] | |||
Area of interior floor space (in sqft) | ft² | 30 | ||
Manufacturing equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 17,992 | 2,366 | |
Laboratory equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 7,374 | 6,038 | |
Furniture and fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 1,648 | 1,815 | |
Software, computer and other equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 6,567 | 2,702 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 29,671 | 4,072 | |
Construction-in-progress | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 3,980 | $ 49,057 |
Leases - Additional Information
Leases - Additional Information (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019USD ($) | Jun. 30, 2019ft² | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)ft² | Sep. 30, 2018USD ($) | |
Operating Leased Assets [Line Items] | |||||
Operating lease right-of-use assets | $ 2.8 | ||||
Lease expense for operating lease | $ 1.4 | 3.9 | |||
Variable lease payments for operating lease | $ 0.3 | $ 1.1 | |||
Operating leases, rent expense | $ 1 | $ 2.4 | |||
Minimum | |||||
Operating Leased Assets [Line Items] | |||||
Term of contract | 1 year | 1 year | |||
Maximum | |||||
Operating Leased Assets [Line Items] | |||||
Term of contract | 18 years | 18 years | |||
North Carolina | |||||
Operating Leased Assets [Line Items] | |||||
Area of interior floor space (in sqft) | ft² | 61,000 | ||||
California | |||||
Operating Leased Assets [Line Items] | |||||
Area of interior floor space (in sqft) | ft² | 37,300 | ||||
New Jersey | |||||
Operating Leased Assets [Line Items] | |||||
Area of interior floor space (in sqft) | ft² | 34,000 | ||||
Ireland | |||||
Operating Leased Assets [Line Items] | |||||
Area of interior floor space (in sqft) | ft² | 30,000 | ||||
Right-of-use Asset and liability upon lease inception | $ 2.4 | $ 2.4 |
Leases - Schedule of Operating
Leases - Schedule of Operating Lease Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Operating Leases | ||
Operating lease right-of-use assets | $ 17,216 | $ 0 |
Operating lease liabilities | 5,802 | 0 |
Long-term operating lease liabilities | 12,235 | $ 0 |
Total operating lease liabilities | $ 18,037 |
Leases - Schedule of Cash Flow
Leases - Schedule of Cash Flow Information (Details) | Sep. 30, 2019 |
Operating Leases | |
Weighted-average remaining lease term | 8 years |
Weighted-average discount rate | 8.00% |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Lease Liabilities (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Leases [Abstract] | |
Remainder of 2019 | $ 1,479 |
2020 | 5,757 |
2021 | 4,031 |
2022 | 1,725 |
2023 | 1,715 |
Thereafter | 10,997 |
Total undiscounted lease payments | 25,704 |
Less: present value adjustment | (7,667) |
Total lease liabilities | $ 18,037 |
Leases - Schedule of Minimum Le
Leases - Schedule of Minimum Lease Payments (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 4,283 |
2020 | 4,855 |
2021 | 4,278 |
2022 | 1,643 |
2023 | 1,438 |
Thereafter | 6,698 |
Total minimum lease payments | $ 23,195 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Accrued expenses and other liabilities: | ||
Accrued compensation and benefits | $ 10,005 | $ 10,438 |
Accrued consulting and professional fees | 4,326 | 3,927 |
Accrued research and development expenses | 5,538 | 7,503 |
Accrued revenue reserves | 34,060 | 10,155 |
Accrued other | 1,799 | 6,358 |
Total accrued expenses and other current liabilities | $ 55,728 | $ 38,381 |
Debt - Credit Facility (Details
Debt - Credit Facility (Details) - Revolving Credit Facility - USD ($) | Sep. 30, 2019 | May 31, 2019 | Jul. 31, 2018 |
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | $ 200,000,000 | ||
One-time termination fee amount | $ 6,500,000 | ||
Funds withdrawn at closing | 0 | ||
Delayed Draw Term Loan | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | $ 200,000,000 | $ 100,000,000 | $ 100,000,000 |
Debt - Convertible Notes (Detai
Debt - Convertible Notes (Details) | Sep. 04, 2019$ / shares$ / unit | Sep. 30, 2019USD ($)d$ / shares | Sep. 30, 2019USD ($)$ / shares | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)$ / shares | Sep. 30, 2018USD ($) |
Debt Instrument [Line Items] | ||||||
Aggregate principal amount | $ 316,250,000 | $ 316,250,000 | $ 316,250,000 | |||
Debt instrument trading days | d | 20 | |||||
Debt instrument consecutive trading day | d | 30 | |||||
Debt issuance costs related with equity component of convertible debt | 3,725,000 | |||||
Premiums for capped call options | 32,890,000 | |||||
Interest expense | 6,600,000 | $ 800,000 | 9,000,000 | $ 1,700,000 | ||
Call Option | ||||||
Debt Instrument [Line Items] | ||||||
Capped price (in dollars per share) | $ / unit | 37 | |||||
Premium of cap price as a percentage of closing price | 100.00% | |||||
Common Stock | ||||||
Debt Instrument [Line Items] | ||||||
Closing stock price (in dollars per share) | $ / shares | $ 18.50 | |||||
Convertible Notes | ||||||
Debt Instrument [Line Items] | ||||||
Interest expense | 1,400,000 | |||||
Convertible Notes | 2024 Notes | ||||||
Debt Instrument [Line Items] | ||||||
Aggregate principal amount | $ 316,250,000 | $ 316,250,000 | $ 316,250,000 | |||
Debt instrument, interest rate percentage | 1.50% | 1.50% | 1.50% | |||
Debt instrument, effective conversion price (in dollars per share) | $ / shares | $ 24.98 | |||||
Stock price trigger, premium on closing price (as a percent) | 35.00% | |||||
Redemption price (as a percent) | 100.00% | 100.00% | ||||
Stock price trigger (as a percent) | 130.00% | |||||
Debt issuance costs incurred | $ 9,200,000 | |||||
Debt issuance costs, net | $ 5,500,000 | 5,500,000 | $ 5,500,000 | |||
Debt issuance costs related with equity component of convertible debt | 3,700,000 | |||||
Equity component of convertible debt | $ 128,400,000 | $ 128,400,000 | $ 128,400,000 | |||
Convertible Notes | 2024 Notes | Common Stock | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, conversion price (in dollars per share) | $ / shares | $ 0.04004 | $ 0.04004 | $ 0.04004 |
Debt - Reconciliation of Conver
Debt - Reconciliation of Convertible Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Debt Disclosure [Abstract] | ||
Gross proceeds | $ 316,250 | |
Unamortized debt discount and issuance costs | (132,697) | |
Carrying value | $ 183,553 | $ 0 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - $ / shares | 1 Months Ended | |
Oct. 31, 2019 | Sep. 30, 2019 | |
Class of Warrant or Right [Line Items] | ||
EXERCISE PRICE PER SHARE (in dollars per share) | $ 0.05 | |
Common Stock | November 2019 | ||
Class of Warrant or Right [Line Items] | ||
NUMBER OF UNDERLYING SHARES | 75,000 | |
EXERCISE PRICE PER SHARE (in dollars per share) | $ 5 | |
Common Stock | August 2020 | ||
Class of Warrant or Right [Line Items] | ||
NUMBER OF UNDERLYING SHARES | 4,500 | |
EXERCISE PRICE PER SHARE (in dollars per share) | $ 5 | |
Common Stock | December 2019 | ||
Class of Warrant or Right [Line Items] | ||
NUMBER OF UNDERLYING SHARES | 223,481 | |
EXERCISE PRICE PER SHARE (in dollars per share) | $ 0.05 | |
Subsequent Event | ||
Class of Warrant or Right [Line Items] | ||
Number of warrants exercised (in shares) | 298,481 |
Stock-Based Compensation - Allo
Stock-Based Compensation - Allocated Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 10,606 | $ 9,978 | $ 33,921 | $ 29,015 |
Selling, general and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 7,041 | 6,682 | 23,253 | 20,022 |
Pre-approval commercial manufacturing | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 807 | 700 | 2,490 | 1,804 |
Research and development | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 2,758 | $ 2,596 | $ 8,178 | $ 7,189 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) $ / shares in Units, $ in Millions | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2019USD ($)plan$ / sharesshares | Dec. 31, 2017shares | Dec. 31, 2018shares | 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) | 2,046,583 | ||||
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] | |||||
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 | $ | $ 80.2 | ||||
Weighted-average remaining vesting period | 2 years 8 months 12 days | ||||
Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation expense related to unvested awards | $ | $ 26.2 | ||||
Weighted-average of remaining vesting period | 2 years 9 months 18 days | ||||
Granted (in shares) | 494,167 | ||||
Vested (in shares) | 214,276 | ||||
Non-vested shares cancelled and replaced | 43,071 | ||||
Stock-based compensation, non vesting (in shares) | 755,179 | 572,706 | |||
Weighted average fair value (in dollars per share) | $ / shares | $ 41.13 | ||||
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 | ||||
RSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation expense | $ | $ 2.1 | ||||
Weighted-average of remaining vesting period | 2 years 10 months 24 days | ||||
Stock-based compensation, non vesting (in shares) | 43,071 | ||||
Weighted average fair value (in dollars per share) | $ / shares | $ 19.22 | ||||
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) | 69,171 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Stock Options Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended |
Sep. 30, 2019 | |
NUMBER OF SHARES | |
Beginning balance (in shares) | 6,935,119 |
Granted (in shares) | 2,046,583 |
Exercised (in shares) | (139,119) |
Canceled (in shares) | (307,317) |
Ending balance (in shares) | 8,535,266 |
Options exercisable (in shares) | 5,404,516 |
WEIGHTED AVERAGE EXERCISE PRICE | |
Beginning balance (in dollars per share) | $ 28.96 |
Granted (in dollars per share) | 32.54 |
Exercised (in dollars per share) | 28.74 |
Canceled (in dollars per share) | 51.53 |
Ending balance (in dollars per share) | 29.02 |
Options exercisable (in dollars per share) | $ 23 |
WEIGHTED AVERAGE REMAINING CONTRACTUAL LIFE (YEARS) | |
Options outstanding, weighted average remaining contractual life | 6 years 9 months 18 days |
Options exercisable, weighted average remaining contractual life | 5 years 4 months 24 days |
AGGREGATE INTRINSIC VALUE | |
Options outstanding | $ 28,534 |
Options exercisable | $ 28,304 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Activity (Details) - Restricted stock | 9 Months Ended |
Sep. 30, 2019$ / sharesshares | |
NUMBER OF SHARES | |
Beginning balance (in shares) | shares | 572,706 |
Granted (in shares) | shares | 494,167 |
Vested (in shares) | shares | (214,276) |
Canceled (in shares) | shares | (97,418) |
Ending balance (in shares) | shares | 755,179 |
WEIGHTED AVERAGE FAIR VALUE PER SHARE | |
Beginning balance (in dollars per share) | $ / shares | $ 48.18 |
Granted (in dollars per share) | $ / shares | 41.13 |
Vested (in dollars per share) | $ / shares | 45.76 |
Canceled (in dollars per share) | $ / shares | 48.85 |
Ending balance (in dollars per share) | $ / shares | $ 44.20 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Appreciation Rights (Details) $ / shares in Units, $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($)$ / sharesshares | |
WEIGHTED AVERAGE EXERCISE PRICE | |
Granted (in dollars per share) | $ / shares | $ 33.73 |
Stock Appreciation Rights (SARs) | |
NUMBER OF SHARES | |
Beginning balance (in shares) | shares | 91,000 |
Granted (in shares) | shares | 113,851 |
Exercised (in shares) | shares | 0 |
Canceled (in shares) | shares | (26,687) |
Ending balance (in shares) | shares | 178,164 |
Stock exercisable (in shares) | shares | 17,250 |
WEIGHTED AVERAGE EXERCISE PRICE | |
Beginning balance (in dollars per share) | $ / shares | $ 53.83 |
Exercised (in dollars per share) | $ / shares | 0 |
Canceled (in dollars per share) | $ / shares | 50.15 |
Ending balance (in dollars per share) | $ / shares | 41.49 |
Stock exercisable (in dollars per share) | $ / shares | $ 54.35 |
WEIGHTED AVERAGE REMAINING CONTRACTUAL LIFE (YEARS) | |
Stock outstanding, weighted average remaining contractual life | 4 years 2 months 12 days |
Stock exercisable, weighted average remaining contractual life | 3 years 6 months |
AGGREGATE INTRINSIC VALUE | |
Stock outstanding | $ | $ 0 |
Stock exercisable | $ | $ 0 |
Uncategorized Items - aeri10-qx
Label | Element | Value |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (2,137,000) |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 15,000 |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (2,137,000) |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 15,000 |