Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Mar. 14, 2014 | Jun. 30, 2013 | |
Document And Entity Information [Abstract] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Trading Symbol | 'ALXA | ' | ' |
Entity Registrant Name | 'Alexza Pharmaceuticals Inc. | ' | ' |
Entity Central Index Key | '0001344413 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 17,283,053 | ' |
Entity Public Float | ' | ' | $73,873,744 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $17,306 | $17,715 |
Marketable securities | 8,578 | ' |
Restricted cash | ' | 5,051 |
Receivables | 129 | ' |
Inventory | 3,447 | ' |
Prepaid expenses and other current assets | 1,453 | 852 |
Total current assets | 30,913 | 23,618 |
Property and equipment, net | 14,991 | 16,531 |
Other assets | 1,168 | 402 |
Total assets | 47,072 | 40,551 |
Current liabilities: | ' | ' |
Accounts payable | 3,789 | 2,147 |
Accrued clinical trial liabilities | 178 | 96 |
Other accrued liabilities | 4,736 | 3,599 |
Current portion of contingent consideration liability | 2,500 | 3,500 |
Current portion of financing obligations | 780 | 6,461 |
Current portion of deferred revenues | 2,915 | 2,915 |
Total current liabilities | 14,898 | 18,718 |
Deferred rent | 6,405 | 8,059 |
Noncurrent portion of contingent consideration liability | 36,700 | 6,100 |
Noncurrent portion of deferred revenues | 2,185 | 5,101 |
Noncurrent portion of financing obligations | 10,744 | ' |
Other liabilities | 115 | ' |
Commitments (See Note 6) | ' | ' |
Stockholders' equity (deficit): | ' | ' |
Preferred stock, $0.0001 par value, 5,000,000 shares authorized at December 31, 2013 and 2012; no shares issued and outstanding at December 31, 2013 or 2012 | ' | ' |
Common stock, $0.0001 par value; 200,000,000 shares authorized at December 31, 2013 and 2012, respectively; 17,279,804 and 15,767,525 shares issued and outstanding at December 31, 2013 and 2012, respectively | 2 | 2 |
Additional paid-in capital | 350,250 | 337,184 |
Accumulated other comprehensive income | 1 | ' |
Accumulated deficit | -374,228 | -334,613 |
Total stockholders' (deficit) equity | -23,975 | 2,573 |
Total liabilities and stockholders' equity (deficit) | $47,072 | $40,551 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Statement Of Financial Position [Abstract] | ' | ' |
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 17,279,804 | 15,767,525 |
Common stock, shares outstanding | 17,279,804 | 15,767,525 |
Consolidated_Statements_of_Los
Consolidated Statements of Loss and Comprehensive Loss (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Statement [Abstract] | ' | ' | ' |
Revenue | $47,839 | $4,070 | $5,660 |
Operating expenses: | ' | ' | ' |
Cost of goods sold | 11,209 | ' | ' |
Research and development | 19,082 | 21,849 | 28,262 |
General and administrative | 15,778 | 11,093 | 11,766 |
Total operating expenses | 46,069 | 32,942 | 40,028 |
Income (loss) from operations | 1,770 | -28,872 | -34,368 |
(Loss) gain on change in fair value of contingent consideration liability | -39,913 | 1,900 | -4,000 |
Interest and other income/expense, net | 26 | 420 | 26 |
Interest expense | -1,498 | -1,426 | -2,189 |
Net loss | -39,615 | -27,978 | -40,531 |
Basic and diluted net loss per share | ($2.38) | ($2.24) | ($5.97) |
Shares used to compute basic and diluted net loss per share | 16,669 | 12,472 | 6,787 |
Other Comprehensive Loss: | ' | ' | ' |
Change in unrealized (loss)/gain on marketable securities | 1 | ' | -2 |
Comprehensive loss | ($39,614) | ($27,978) | ($40,533) |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (Deficit) (USD $) | Total | Common Stock [Member] | Additional Paid in Capital [Member] | Accumulated Other Comprehensive (Loss) Income [Member] | Accumulated Deficit [Member] |
In Thousands, except Share data | |||||
Beginning Balance at Dec. 31, 2010 | $12,290 | $1 | $278,391 | $2 | ($266,104) |
Beginning Balance, shares at Dec. 31, 2010 | ' | 5,976,591 | ' | ' | ' |
Issuance of common stock and common stock warrants for cash | 15,941 | ' | 15,941 | ' | ' |
Issuance of common stock and common stock warrants for cash, shares | ' | 1,192,703 | ' | ' | ' |
Issuance of common stock for cash under the Company's Equity Incentive Plan | 2 | ' | 2 | ' | ' |
Issuance of common stock for cash under the Company's Equity Incentive Plan,Shares | ' | 98 | ' | ' | ' |
Issuance of common stock for cash under the Company's Employee Stock Purchase Plan | 202 | ' | 202 | ' | ' |
Issuance of common stock for cash under the Company's Employee Stock Purchase Plan, shares | ' | 24,998 | ' | ' | ' |
Issuance of common stock upon vesting of restricted stock units | ' | 19,202 | ' | ' | ' |
Compensation expense related to consultant stock options | 17 | ' | 17 | ' | ' |
Compensation expense related to fair value of employee share based awards | 2,389 | ' | 2,389 | ' | ' |
Comprehensive income (loss) | -2 | ' | ' | -2 | ' |
Net loss | -40,531 | ' | ' | ' | -40,531 |
Ending Balance at Dec. 31, 2011 | -9,692 | 1 | 296,942 | ' | -306,635 |
Ending Balance, shares at Dec. 31, 2011 | ' | 7,213,592 | ' | ' | ' |
Issuance of common stock and common stock warrants for cash | 20,231 | 1 | 20,230 | ' | ' |
Issuance of common stock and common stock warrants for cash, shares | ' | 4,400,000 | ' | ' | ' |
Issuance of common stock for cash under the Company's Equity Incentive Plan | 14,929 | ' | 14,929 | ' | ' |
Issuance of common stock for cash under the Company's Equity Incentive Plan,Shares | ' | 3,812,225 | ' | ' | ' |
Issuance of common stock for cash under the Company's Employee Stock Purchase Plan | 82 | ' | 82 | ' | ' |
Issuance of common stock for cash under the Company's Employee Stock Purchase Plan, shares | ' | 18,409 | ' | ' | ' |
Issuance of common stock upon vesting of restricted stock units | ' | 323,299 | ' | ' | ' |
Compensation expense related to fair value of employee share based awards | 5,001 | ' | 5,001 | ' | ' |
Net loss | -27,978 | ' | ' | ' | -27,978 |
Ending Balance at Dec. 31, 2012 | 2,573 | 2 | 337,184 | ' | -334,613 |
Ending Balance, shares at Dec. 31, 2012 | ' | 15,767,525 | ' | ' | ' |
Issuance of common stock and common stock warrants for cash | 6,347 | ' | 6,347 | ' | ' |
Issuance of common stock and common stock warrants for cash, shares | ' | 1,437,481 | ' | ' | ' |
Issuance of common stock for cash under the Company's Equity Incentive Plan | 36 | ' | 36 | ' | ' |
Issuance of common stock for cash under the Company's Equity Incentive Plan,Shares | 10,317 | 10,317 | ' | ' | ' |
Issuance of common stock for cash under the Company's Employee Stock Purchase Plan | 200 | ' | 200 | ' | ' |
Issuance of common stock for cash under the Company's Employee Stock Purchase Plan, shares | ' | 54,494 | ' | ' | ' |
Issuance of common stock upon vesting of restricted stock units | ' | 9,987 | ' | ' | ' |
Compensation expense related to fair value of employee share based awards | 3,371 | ' | 3,371 | ' | ' |
Beneficial conversion feature of convertible debt | 3,112 | ' | 3,112 | ' | ' |
Comprehensive income (loss) | 1 | ' | ' | 1 | ' |
Net loss | -39,615 | ' | ' | ' | -39,615 |
Ending Balance at Dec. 31, 2013 | ($23,975) | $2 | $350,250 | $1 | ($374,228) |
Ending Balance, shares at Dec. 31, 2013 | ' | 17,279,804 | ' | ' | ' |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash flows from operating activities: | ' | ' | ' |
Net loss | ($39,615) | ($27,978) | ($40,531) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ' | ' | ' |
Share-based compensation expense | 3,371 | 5,001 | 2,406 |
Change in fair value of contingent consideration liability | 39,913 | -1,900 | 4,000 |
Recognition of right to borrow asset | -2,800 | ' | ' |
Amortization of debt discount, deferred interest and right to borrow asset | 1,079 | 447 | 602 |
Amortization of discount on available-for-sale securities | ' | 1 | 204 |
Depreciation | 3,323 | 4,336 | 4,432 |
(Gain)/loss on disposal of property and equipment | -15 | -415 | ' |
Changes in operating assets and liabilities: | ' | ' | ' |
Receivables | -129 | 10,000 | -10,000 |
Inventory | -3,447 | ' | ' |
Prepaid expenses and other current assets | -601 | -203 | 316 |
Other assets | ' | 200 | -147 |
Accounts payable | 1,642 | -1,456 | 822 |
Accrued clinical trial expense and other accrued liabilities | 1,122 | 559 | -498 |
Deferred revenues | -2,916 | -2,618 | 6,303 |
Other liabilities | -1,539 | -4,215 | -2,335 |
Net cash used in operating activities | -612 | -18,241 | -34,426 |
Cash flows from investing activities: | ' | ' | ' |
Purchase of available-for-sale securities | -19,227 | ' | -28,465 |
Maturities of available-for-sale securities | 10,650 | 2,000 | 54,036 |
Purchases of property and equipment | -1,784 | -452 | -496 |
Proceeds from disposal of property and equipment | 16 | 425 | ' |
Net cash provided by (used in) investing activities | -10,345 | 1,973 | 25,075 |
Cash flows from financing activities: | ' | ' | ' |
Proceeds from issuance of common stock, common stock warrants and exercise of stock options and stock purchase rights | 6,583 | 35,242 | 16,145 |
Payment of contingent payment to Symphony Allegro Holdings, LLC | -10,313 | -5,000 | ' |
Change in current restricted cash | 5,051 | -5,051 | ' |
Proceeds from term loans | 15,000 | ' | ' |
Payments of term loans | -5,773 | -6,110 | -5,563 |
Net cash provided by financing activities | 10,548 | 19,081 | 10,582 |
Net increase (decrease) in cash and cash equivalents | -409 | 2,813 | 1,231 |
Cash and cash equivalents at beginning of period | 17,715 | 14,902 | 13,671 |
Cash and cash equivalents at end of period | 17,306 | 17,715 | 14,902 |
Supplemental disclosures of cash flow information | ' | ' | ' |
Cash paid for interest | 863 | 979 | 1,631 |
Non cash investing and financing activities: | ' | ' | ' |
Debt discount related to Teva Note | 4,405 | ' | ' |
Reversal of Note Payable to Autoliv | ' | ' | $1,200 |
The_Company
The Company | 12 Months Ended |
Dec. 31, 2013 | |
Accounting Policies [Abstract] | ' |
The Company | ' |
1. The Company | |
Business | |
We were incorporated in the state of Delaware on December 19, 2000 as FaxMed, Inc., changed our name to Alexza Corporation in June 2001 and in December 2001 became Alexza Molecular Delivery Corporation. In July 2005, we changed our name to Alexza Pharmaceuticals, Inc. | |
We are a pharmaceutical company focused on the research, development, and commercialization of novel proprietary products for the acute treatment of central nervous system conditions. We operate in one business segment. Our facilities and employees are currently located in the United States. In 2012, we transitioned out of the development stage. | |
Reverse Stock Split | |
On June 12, 2012, we effected a 1-for-10 reverse stock split of our outstanding common stock resulting in a reduction of our total common stock issued and outstanding from 119.6 million shares to 12.0 million shares. The reverse stock split affected all of the stockholders of our common stock uniformly, and did not materially affect any stockholder’s percentage of ownership interest. The par value of our common stock remained unchanged at $0.0001 per share and the number of authorized shares of common stock remained the same after the reverse stock split. | |
As the par value per share of our common stock remained unchanged at $0.0001 per share, a total of $11,000 was reclassified from common stock to additional paid-in capital. In connection with this reverse stock split, the number of shares of common stock reserved for issuance under our equity incentive, stock option and employee stock purchase plans (see Note 10) as well as the shares of common stock underlying outstanding stock options, restricted stock units and warrants were also proportionately reduced while the exercise prices of such stock options and warrants were proportionately increased. All references to shares of common stock and per share data for all periods presented in the accompanying financial statements and notes thereto have been adjusted to reflect the reverse stock split on a retroactive basis. | |
Authorized Shares | |
On July 28, 2011, we filed a Certificate of Amendment to our Restated Certificate of Incorporation to increase the total number of authorized shares from 105,000,000 to 205,000,000 and to increase the total number of authorized shares of common stock from 100,000,000 to 200,000,000. | |
Underwritten Public Offering | |
On February 23, 2012, we issued an aggregate of 4,400,000 shares of our common stock and warrants to purchase up to an additional 4,400,000 shares of our common stock in an underwritten public offering. Net proceeds from the offering were $20,231,000, after deducting offering expenses. The warrants are exercisable beginning February 24, 2013, at an exercise price of $5.00 per share, and will expire on February 23, 2017. The shares of common stock and warrants were sold pursuant to a shelf registration statement declared effective by the Securities and Exchange Commission on May 20, 2010. We agreed to customary obligations, including indemnification. | |
Private Placement | |
On March 5, 2012, we entered into an amendment to the Collaboration, License and Supply Agreement, or the Ferrer Agreement, with Grupo Ferrer Internacional, S.A., or Ferrer (See Note 8). Ferrer and we agreed to eliminate a future potential milestone payment in exchange for Ferrer’s purchase of $3,000,000 of our common stock. On March 15, 2012 Ferrer purchased 241,936 shares of our common stock for $12.40 per share. We classified $1,452,000 of the proceeds as deferred revenue and are recognizing the amount into revenue over the estimated performance period of the Ferrer Agreement (see Note 8). | |
Registered Direct Equity Issuances | |
On May 6, 2011, we issued an aggregate of 1,192,703 shares of its common stock and warrants to purchase up to an additional 417,445 shares of its common stock in a registered direct offering. Net proceeds from the offering were approximately $15,941,000, after deducting offering expenses. The warrants are exercisable at $17.55 per share and will expire on May 6, 2016. The securities were sold pursuant to a shelf registration statement declared effective by the SEC on May 20, 2010. We agreed to customary obligations regarding registration, including indemnification and maintenance of the registration statement. | |
Equity Financing Facility | |
In July 2012, we entered into a committed equity line of credit with Azimuth Opportunity, L.P., or Azimuth, pursuant to which we were granted the ability to sell up to $20,000,000 of our common stock over an approximately 24-month period pursuant to the terms of a Common Stock Purchase Agreement, or the Purchase Agreement. In addition to the foregoing amounts, in consideration for the performance of Azimuth’s obligations under the Purchase Agreement, we issued to Azimuth 80,429 shares of its common stock on July 23, 2012. In August and September 2012, we utilized $13,600,000 under the facility by issuing 3,489,860 shares of our common stock to Azimuth at an average price of $3.88 per share, which resulted in $13,393,000 in net proceeds to us. In May 2013, we utilized the remaining $6,400,000 available under the facility by issuing 1,437,481 shares of our common stock to Azimuth at an average price of $4.48 per share, which resulted in $6,347,000 of net proceeds to us. Shares were issued to Azimuth at a discount of 5% to the volume-weighted average price of our common stock over a preceding period of trading days. Shares sold under this facility were sold pursuant to a shelf registration statement declared effective by the SEC on July 3, 2012. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||
Summary of Significant Accounting Policies | ' | ||||||||||||||||
2. Summary of Significant Accounting Policies | |||||||||||||||||
Basis of Presentation | |||||||||||||||||
We have prepared the accompanying consolidated financial statements in conformity with accounting principles generally accepted in the United States of America, or U.S. GAAP. Our fiscal year ends on December 31. The accompanying consolidated financial statements include our accounts and those of our wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated. | |||||||||||||||||
Use of Estimates | |||||||||||||||||
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. | |||||||||||||||||
Fair Value of Financial Instruments | |||||||||||||||||
Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. Three levels of inputs, of which the first two are considered observable and the last unobservable, may be used to measure fair value which are the following: | |||||||||||||||||
• | Level 1 — Quoted prices in active markets for identical assets or liabilities. | ||||||||||||||||
• | Level 2 — Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | ||||||||||||||||
• | Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. | ||||||||||||||||
The following table represents the fair value hierarchy for our financial assets (cash equivalents and marketable securities) by major security type and contingent consideration liability measured at fair value on a recurring basis as of December 31, 2013 and 2012 (in thousands): | |||||||||||||||||
December 31, 2013 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets | |||||||||||||||||
Money market funds | $ | 11,345 | $ | — | $ | — | $ | 11,345 | |||||||||
Corporate debt securities | — | 12,003 | — | 12,003 | |||||||||||||
Total assets | $ | 11,345 | $ | 12,003 | $ | — | $ | 23,348 | |||||||||
Liabilities | |||||||||||||||||
Contingent consideration liability | $ | — | $ | — | $ | 39,200 | $ | 39,200 | |||||||||
Total liabilities | $ | — | $ | — | $ | 39,200 | $ | 39,200 | |||||||||
December 31, 2012 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets | |||||||||||||||||
Money market funds | $ | 17,307 | $ | — | $ | — | $ | 17,307 | |||||||||
Total assets | $ | 17,307 | $ | — | $ | — | $ | 17,307 | |||||||||
Liabilities | |||||||||||||||||
Contingent consideration liability | $ | — | $ | — | $ | 9,600 | $ | 9,600 | |||||||||
Total liabilities | $ | — | $ | — | $ | 9,600 | $ | 9,600 | |||||||||
Our available-for-sale debt securities are valued utilizing a multi-dimensional relational model. Inputs, listed in approximate order of priority for use when available, include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data. There were no transfers between Level 1 and Level 2 measurements during the year ended December 31, 2013, and there were no changes in our valuation technique. | |||||||||||||||||
Contingent Consideration Liability | |||||||||||||||||
In connection with the exercise of our option to purchase all of the outstanding equity of Symphony Allegro, Inc., or Allegro, in 2009, we are obligated to make contingent cash payments to the former Allegro stockholders related to certain payments received by us from future collaboration agreements pertaining to ADASUVE/AZ-104 (Staccato loxapine) or AZ-002 (Staccato alprazolam). In order to estimate the fair value of the liability associated with the contingent cash payments, we prepared several cash flow scenarios for ADASUVE, AZ-104 and AZ-002, which are subject to the contingent payment obligation. Each potential cash flow scenario consisted of assumptions of the range of estimated milestone and license payments potentially receivable from such collaborations and assumed royalties received from future product sales. Based on these estimates, we computed the estimated payments to be made to the former Allegro stockholders. Payments were assumed to terminate in accordance with current agreement terms or, if no agreements exist, upon the expiration of the related patents. | |||||||||||||||||
The projected cash flow assumptions for ADASUVE in the United States are based on the License and Supply Agreement, or the Teva Agreement, between us and Teva Pharmaceuticals USA, Inc., or Teva, (see Note 8) and on internally and externally developed product sales forecasts. The timing and extent of the projected cash flows for ADASUVE for the territories licensed to Ferrer are based on the Ferrer Agreement (see Note 8). The timing and extent of the projected cash flows for the remaining territories for ADASUVE and worldwide territories for AZ-002 and AZ-104 were based on internal estimates for potential milestones and multiple product royalty scenarios and are also consistent in structure to the most recently negotiated collaboration agreements. | |||||||||||||||||
We then assigned a probability to each of the cash flow scenarios based on several factors, including: the product candidate’s stage of development, preclinical and clinical results, technological risk related to the successful development of the different drug candidates, estimated market size, market risk and potential collaboration interest to determine a risk adjusted weighted average cash flow based on all of these scenarios. These probability and risk adjusted weighted average cash flows were then discounted utilizing our estimated weighted average cost of capital, or WACC. Our WACC considered our cash position, competition, risk of substitute products, and risk associated with the financing of the development projects. In 2013, we reduced the discount rate from 18.0% to 16.5% to reflect our current estimated WACC. The change in discount rate increased the net loss for 2013 by approximately $3,600,000 or $0.22 per share. | |||||||||||||||||
The fair value measurement of the contingent consideration liability is based on significant inputs not observed in the market and thus represents a Level 3 measurement. Level 3 measurements are valued based on unobservable inputs that are supported by little or no market activity and reflect our assumptions in measuring fair value. | |||||||||||||||||
We record any changes in the fair value of the contingent consideration liability in earnings in the period of the change. Certain events including, but not limited to, the timing and terms of any collaboration agreement, clinical trial results, approval or non-approval of any future regulatory submissions and the commercial success of ADASUVE, AZ-104 or AZ-002 could have a material impact on the fair value of the contingent consideration liability, and as a result, our results of operations and financial position for the impacted period. | |||||||||||||||||
During the year ended December 31, 2011, we modified the assumptions regarding the timing and probability of certain cash flows primarily to reflect the ADASUVE commercial collaboration entered into with Ferrer in October 2011 (see Note 8). The changes in these assumptions and the effect of the passage of one year on the present value computation resulted in a $4,000,000 increase to the contingent consideration liability in the year ended December 31, 2011. The changes in these assumptions resulted in an increase to net loss per share of $0.59 for the year ended December 31, 2011. | |||||||||||||||||
During the year ended December 31, 2012, we modified the assumptions and the timing and extent of certain cash flows regarding the increased probability that we will commercialize ADASUVE in the United States internally without a collaborator and the timing of the commercial launch of ADASUVE in the United States. This change in assumptions resulted in a decrease to the contingent consideration liability as the former Allegro stockholders do not receive payments from us for product revenues generated by us. We also modified assumptions to reflect the approval of the ADASUVE NDA in December 2012 and the December 2012 positive opinion by the Committee for Medicinal Products for Human recommending that ADASUVE be granted European Union centralized marketing authorization by the European Commission, resulting in an increase in the contingent consideration liability. The changes in these assumptions resulted in a decrease to net loss per share of $0.15 for the year ended December 31, 2012. | |||||||||||||||||
During the year ended December 31, 2013, we modified the assumptions regarding the timing and amount of certain cash flows primarily to reflect (i) the increased probability in the first quarter of 2013 that we would license the U.S. commercialization rights to ADASUVE to a third party, (ii) the impact of the licensing and the terms of the Teva Agreement in the second quarter of 2013, (iii) the change in the projected ADASUVE launch date to the first quarter of 2014 and (iv) the projected timing of certain future revenues and the potential expansion of the ADASUVE label. These changes in assumptions, the change in the WACC in 2013 described above, and the effects of the passage of a year on the present value computation resulted in an increase to the net loss of $39,913,000, or $2.39 per share, for the year ended December 31, 2013. | |||||||||||||||||
The following table represents a reconciliation of the change in the fair value measurement of the contingent consideration liability for the years ended December 31, 2013 and 2012 (in thousands). | |||||||||||||||||
December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Beginning balance | $ | 9,600 | $ | 16,500 | |||||||||||||
Payments made | (10,313 | ) | (5,000 | ) | |||||||||||||
Adjustments to fair value measurement | 39,913 | (1,900 | ) | ||||||||||||||
Ending balance | $ | 39,200 | $ | 9,600 | |||||||||||||
The $5,000,000 payment in 2012 was the result of our receipt of the $10,000,000 upfront payment from Ferrer (see Note 8). The $10,313,000 of aggregate payments in 2013 were the result of our receipt of the $40,000,000 upfront payment from Teva (see Note 8) and our receipt of the $1,250,000 milestone payment from Ferrer associated with the launch of ADASUVE in Germany. | |||||||||||||||||
Financing Obligations | |||||||||||||||||
We have estimated the fair value of our financing obligations (see Note 7) using the net present value of the payments discounted at an interest rate that is consistent with its estimated current borrowing rate for similar long-term debt. We believe the estimates used to measure the fair value of the financing obligations constitute Level 3 inputs. | |||||||||||||||||
At December 31, 2013 and 2012, the estimated fair value of our financing obligations was $9,342,000 and $6,254,000, respectively and had book values of $11,524,000 and $6,461,000, respectively. Our payment commitments associated with these debt instruments may vary with changes in interest rates and are comprised of interest payments and principal payments. The fair value of our debt will fluctuate with movements of interest rates, increasing in periods of declining rates of interest and declining in periods of increasing rates of interest. | |||||||||||||||||
Concentration of Credit Risk | |||||||||||||||||
Financial instruments that potentially subject us to credit risk consist of cash, cash equivalents and marketable securities to the extent of the amounts recorded on the balance sheets. Our cash, cash equivalents and marketable securities are placed with high credit-quality U.S. financial institutions and issuers. We believe that its established guidelines for investment of its excess cash maintain liquidity through its policies on diversification and investment maturity. | |||||||||||||||||
Cash Equivalents and Marketable Securities | |||||||||||||||||
We determine the appropriate classification of our investments at the time of purchase. These securities are recorded as either cash equivalents or marketable securities. | |||||||||||||||||
We consider all highly liquid investments with original maturities of three months or less from date of purchase to be cash equivalents. Cash equivalents consist of interest-bearing instruments including obligations of U.S. government agencies, high credit rating corporate borrowers and money market funds, which are carried at market value. | |||||||||||||||||
All other investments are classified as available-for-sale marketable securities. We view our available-for-sale investments as available for use in current operations. Accordingly, we have classified all investments as short-term marketable securities, even though the stated maturity date may be one year or more beyond the current balance sheet date. Marketable securities are carried at estimated fair value with unrealized gains or losses included in accumulated other comprehensive income (loss) in stockholders’ (deficit) equity. | |||||||||||||||||
The amortized cost of debt securities is adjusted for amortization of premiums and accretion of discounts to maturity. Such amortization and accretion are included in interest and other income (expense), net. Realized gains and losses, if any, are also included in interest and other income (expense), net. The cost of all securities sold is based on the specific-identification method. Interest and dividends are included in interest income. | |||||||||||||||||
We review our investments for other than temporary decreases in market value on a quarterly basis. To date, we have not recorded any charges related to other-than-temporary impairments. | |||||||||||||||||
Restricted Cash | |||||||||||||||||
In January 2012, we and Hercules Technology Growth Capital, Inc., or Hercules, amended the Loan and Security Agreement between Hercules and us entered into in May 2010, or the Loan Agreement, to require us to maintain an amount equal to the outstanding principal balance of the loan in a restricted account (See Note 7). Upon an event of default, as defined in the Loan Agreement, Hercules had the ability to access the funds. On January 3, 2013, Hercules removed the requirement to maintain the restricted account and the funds were no longer classified as restricted cash. | |||||||||||||||||
Property and Equipment | |||||||||||||||||
Property and equipment are stated at cost, less accumulated depreciation. Property and equipment are depreciated using the straight-line method over the estimated life of the asset, generally three years for computer equipment and five years for manufacturing equipment and laboratory equipment and seven years for furniture. Leasehold improvements are amortized over the estimated useful life or the remaining lease term, whichever is shorter. | |||||||||||||||||
Impairment of Long-Lived Assets | |||||||||||||||||
We review long-lived assets, including property and equipment, for impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable. An impairment loss would be recognized when estimated undiscounted future cash flows expected to result from the use of the asset and its eventual disposition are less than its carrying amount. The impairment loss, if recognized, would be based on the excess of the carrying value of the impaired asset over its respective fair value. Through December 31, 2013, we have not recorded an impairment of a long-lived asset. | |||||||||||||||||
Revenue Recognition | |||||||||||||||||
We recognize revenue when (i) persuasive evidence of an arrangement exists; (ii) delivery has occurred or services have been rendered; (iii) the fee is fixed or determinable; and (iv) collectability is reasonably assured. Prior to the second quarter of 2013, our revenue consisted primarily of amounts earned from collaboration agreements and under research grants with the National Institutes of Health. Beginning in the second quarter of 2013, we also have revenue from product sales. | |||||||||||||||||
For collaboration agreements, revenues for non-refundable upfront license fee payments, where we continue to have performance obligations, are recognized as performance occurs and obligations are completed. Revenues for non-refundable upfront license fee payments where we do not have significant future performance obligations are recognized when the agreement is signed and the payments are due. | |||||||||||||||||
For multiple element arrangements, such as collaboration agreements in which a collaborator may purchase several deliverables, we account for each deliverable as a separate unit of accounting if both of the following criteria are met: (i) the delivered item or items have value to the customer on a standalone basis; and (ii) for an arrangement that includes a general right of return relative to the delivered item(s), delivery or performance of the undelivered item(s) is considered probable and substantially in our control. We evaluate how the consideration should be allocated among the units of accounting and allocate revenue to each non-contingent element based upon the relative selling price of each element. We determine the relative selling price for each deliverable using (i) vendor-specific objective evidence, or VSOE, of selling price if it exists; (ii) third-party evidence, or TPE, of selling price if it exists; or (iii) our best estimated selling price for that deliverable if neither VSOE nor TPE of selling price exists for that deliverable. We then recognize the revenue allocated to each element when the four basic revenue criteria described above are met for each element. | |||||||||||||||||
For milestone payments received in connection with our collaboration agreements, we have elected to adopt the milestone method of accounting under Financial Accounting Standards Board Accounting Standards Codification 605-28, Milestone Method. Under the milestone method, revenues for payments which meet the definition of a milestone will be recognized as the respective milestones are achieved. | |||||||||||||||||
We recognize product revenue as follows: | |||||||||||||||||
• | Persuasive Evidence of an Arrangement. We currently sell product through license and supply agreements with our collaborators, Ferrer and Teva. Persuasive evidence of an arrangement is generally determined by the receipt of an approved purchase order from the collaborator in connection with the terms of the license and supply agreements. | ||||||||||||||||
• | Delivery. Typically, ownership of the product passes to the collaborator upon shipment. Our current license and supply agreements also provide our collaborators with an acceptance period during which they may reject any product which does not conform to agreed-upon specifications. Because ADASUVE is a new product, a new technology and our first product to be commercialized, and because we do not have a history of producing product to collaborator specifications, we will not consider delivery to have occurred until after the collaborator acceptance period has ended or the collaborator has positively accepted the product. Once we have demonstrated over the course of time an ability to reliably produce the product to collaborator specifications, we will consider delivery to have occurred upon shipment in the absence of any other relevant shipment or acceptance terms. | ||||||||||||||||
• | Sales Price Fixed or Determinable. Sales prices for product shipments are determined by the license and supply agreements and documented in the purchase orders. After the collaborator acceptance period has ended or the collaborator has positively accepted the product, our collaborators do not have any product return or replacement rights, including for expired products. | ||||||||||||||||
• | Collectability. Payment for the product is contractually obligated under the license and supply agreements. We will monitor payment histories for our collaborators and specific issues as they arise to determine whether collection is probable for a specific transaction and defer revenue as necessary. | ||||||||||||||||
Royalty revenue from our collaboration agreements will be recognized as we receive information from our collaborators regarding product sales. | |||||||||||||||||
Significant management judgment is used in the determination of revenue to be recognized and the period in which it is recognized. | |||||||||||||||||
Inventory | |||||||||||||||||
Inventory is stated at standard cost, which approximates actual cost, determined on a first-in first-out basis, not in excess of market value. Inventory includes the direct costs incurred to manufacture products combined with allocated manufacturing overhead, which consists of indirect costs, including labor and facility overhead. We are in the early stages of commercialization and have incurred significantly higher than normal indirect costs in the production of our inventory due to start-up manufacturing costs and low production volumes. The carrying cost of inventory is reduced so as to not be in excess of the market value of the inventory as determined by the contractual transfer prices to Ferrer and Teva. The excess over the market value is expensed to cost of goods sold. All costs associated with the ADASUVE manufacturing process incurred prior to regulatory approval and the beginning of commercial manufacturing were expensed as a component of research and development expense. If information becomes available that suggests that all or certain of the inventory may not be realizable, we may be required to expense a portion, or all, of the capitalized inventory into cost of goods sold. Inventory, which is stated at the lower of cost or estimated market value, consists of the following at December 31, 2013 (in thousands): | |||||||||||||||||
Raw materials | $ | 3,044 | |||||||||||||||
Work in process | — | ||||||||||||||||
Finished goods | 403 | ||||||||||||||||
Inventory | $ | 3,447 | |||||||||||||||
Research and Development | |||||||||||||||||
Research and development expenses include personnel and facility-related expenses, outside contracted services including clinical trial costs, manufacturing and process development costs, research costs and other consulting services. Research and development costs are expensed as incurred. | |||||||||||||||||
Clinical development costs are a significant component of research and development expenses. We have a history of contracting with third parties that perform various clinical trial activities on our behalf in the ongoing development of its product candidates. The financial terms of these contracts are subject to negotiations and may vary from contract to contract and may result in uneven payment flow. We accrue and expense costs for clinical trial activities performed by third parties based upon estimates of the percentage of work completed over the life of the individual study in accordance with agreements established with contract research organizations and clinical trial sites. | |||||||||||||||||
Income Taxes | |||||||||||||||||
We utilize the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based on differences between financial reporting and tax basis of assets and liabilities and are measured using enacted tax rates and laws that will be in effect when the differences are expected to reverse. A valuation allowance is provided when it is more likely than not that some portion or all of a deferred tax asset will not be realized. | |||||||||||||||||
The impact of an uncertain income tax position on the income tax return must be recognized at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant taxing authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. | |||||||||||||||||
Share-Based Compensation | |||||||||||||||||
Compensation cost for employee share-based awards is based on the grant-date fair value and is recognized on a ratable basis over the requisite service periods of the awards, which are generally the vesting periods or, for performance-based options, the expected period during which the performance criteria is expected to be met. We issue employee share-based awards in the form of stock options and restricted stock units under our equity incentive plans and stock purchase rights under our employee stock purchase plan. | |||||||||||||||||
Stock Options, Stock Purchase Rights and Restricted Stock Units | |||||||||||||||||
During the years ended December 31, 2013, 2012 and 2011, the weighted average fair value per share of the employee stock options (excluding options issued in the Exchange Program as defined in Note 10), restricted stock units and stock purchase rights granted were: | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Stock Options | $ | 3.46 | $ | 2.6 | $ | 10.6 | |||||||||||
Restricted Stock Units | 4.67 | 4.96 | 13.3 | ||||||||||||||
Stock Purchase Rights | 1.76 | 3.86 | 8.2 | ||||||||||||||
The estimated grant date fair values of the stock options (excluding options issued in the Exchange Program) and stock purchase rights were calculated using the Black-Scholes valuation model. The Black-Scholes model requires the use of a number of highly subjective and complex assumptions in determining the fair value of stock-based awards as follows: | |||||||||||||||||
Weighted-Average Expected Term We determine the expected term of stock options granted through a combination of our own historical exercise experience and expected future exercise activities and post-vesting termination behavior. Under the Employee Stock Purchase Plan, the expected term of employee stock purchase plan shares is equal to the offering period. | |||||||||||||||||
Volatility We utilize our historical volatility to determine future volatility for the purpose of determining share-based payments for all options granted. | |||||||||||||||||
Risk-Free Interest Rate We utilize U.S. Treasury zero-coupon issues with remaining terms similar to the expected term of the options or purchase rights on the respective grant dates to determine our risk-free interest rate. | |||||||||||||||||
Dividend Yield We have never declared or paid any cash dividends and do not plan to pay cash dividends in the foreseeable future, and, therefore, use an expected dividend yield of zero in the valuation model. | |||||||||||||||||
Forfeiture Rate We use historical data to estimate pre-vesting option forfeitures and record stock-based compensation expense only for those awards that are expected to vest. All stock-based payment awards are amortized on a straight-line basis over the requisite service periods of the awards, which are generally the vesting periods. | |||||||||||||||||
During the years ended December 31, 2013, 2012 and 2011, we calculated the estimated grant date fair value of stock options (excluding those issued in the Exchange Program as defined in Note 10) and stock purchase rights using the following assumptions: | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Stock Option Plans | |||||||||||||||||
Weighted-average expected term | 5.0 Years | 5.0 Years | 5.0 Years | ||||||||||||||
Expected volatility | 99% | 98% | 90% | ||||||||||||||
Risk-free interest rate | 0.86% | 0.62% | 1.52% | ||||||||||||||
Dividend yield | 0% | 0% | 0% | ||||||||||||||
Employee Stock Purchase Plan | |||||||||||||||||
Weighted-average expected term | 0.5 Years | 0.6 Years | 1.45 Years | ||||||||||||||
Expected volatility | 80% | 98% | 87% | ||||||||||||||
Risk-free interest rate | 0.70% | 0.14% | 0.59% | ||||||||||||||
Dividend yield | 0% | 0% | 0% | ||||||||||||||
In January 2011, as described in Note 10, we commenced a voluntary stock option Exchange Program. The Exchange Program did not result in incremental expense, as the fair value of the New Options (as defined in Note 10) granted was equal to or less than the fair values of the Original Options (as defined in Note 10) measured immediately prior to the date the New Options were granted and the Original Options were cancelled. The estimated grant date fair value of the New Options was calculated using the Black-Scholes valuation model. At the time of exchange, the exercise price of the Original Options was in excess of the market price, therefore the expected term of the Original Options granted was determined using the Monte Carlo Simulation method. The expected term of the New Options granted was determined using the “shortcut” method, as illustrated in the Securities and Exchange Commission’s Staff Accounting Bulletin No. 107, because the terms of the New Options are unique as compared to the existing awards and we do not have historical experience under the terms of the New Options. Under this approach, the expected term is estimated to be the average of the vesting term and the contractual term of the option. All other assumptions have been calculated using the historical methodologies we applied to all other stock option awards. | |||||||||||||||||
The number of shares underlying the options included in the Exchange Program in 2011 and the weighted average assumptions utilized in the Black-Scholes valuation model were as follows: | |||||||||||||||||
Original | New | ||||||||||||||||
Options | Options | ||||||||||||||||
Number of shares | 212,843 | 80,890 | |||||||||||||||
Expected term | 4.7 years | 3.4 years | |||||||||||||||
Expected volatility | 94% | 98% | |||||||||||||||
Risk-free interest rate | 1.96% | 1.38% | |||||||||||||||
Dividend yield | 0% | 0% | |||||||||||||||
Restricted Stock Units The estimated fair value of restricted stock unit awards is calculated based on the market price of our common stock on the date of grant, reduced by the present value of dividends expected to be paid on our common stock prior to vesting of the restricted stock unit. Our estimate assumes no dividends will be paid prior to the vesting of the restricted stock unit. | |||||||||||||||||
In 2013, certain restricted stock unit awards were issued that vest based on market conditions. The estimated fair value of these awards was calculated using a binomial lattice model with a term of 10 years, an expected volatility of 99.4%, a risk-free interest rate of 1.94% and a dividend yield of 0%. | |||||||||||||||||
As of December 31, 2013, there was $3,930,000, $1,856,000 and $70,000 total unrecognized compensation costs related to non-vested stock option awards, restricted stock unit awards and stock purchase rights, respectively, which are expected to be recognized over a weighted average period of 2.1 years, 3.2 years and 0.3 years, respectively. |
Net_Loss_per_Share
Net Loss per Share | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Net Loss per Share | ' | ||||||||||||
3. Net Loss per Share | |||||||||||||
Basic and diluted net loss per share is calculated by dividing the net loss by the weighted-average number of common shares outstanding for the period less weighted average shares subject to repurchase, of which there were none in 2013, 2012 or 2011. Outstanding stock options, warrants, and unvested restricted stock units are not included in the diluted net loss per share calculation for the years ended December 31, 2013, 2012 and 2011 as the inclusion of such shares would have had an anti-dilutive effect. | |||||||||||||
Potentially anti-dilutive securities include the following (in thousands): | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Outstanding stock options | 1,657 | 840 | 563 | ||||||||||
Unvested restricted stock units | 315 | 120 | 133 | ||||||||||
Warrants to purchase common stock | 6,462 | 5,582 | 1,895 | ||||||||||
Convertible debt | 651 | — | — |
Cash_Equivalents_and_Marketabl
Cash Equivalents and Marketable Securities | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Cash And Cash Equivalents [Abstract] | ' | ||||||||||||
Cash Equivalents and Marketable Securities | ' | ||||||||||||
4. Cash Equivalents and Marketable Securities | |||||||||||||
The amortized cost, fair value and unrealized gain/(loss) for our financial assets by major security type as of December 31, 2013 and 2012 are as follows (in thousands): | |||||||||||||
December 31, 2013 | Amortized | Fair | Unrealized | ||||||||||
Cost | Value | Gain/ | |||||||||||
(Loss) | |||||||||||||
Money market funds | $ | 11,345 | $ | 11,345 | $ | — | |||||||
Corporate debt securities | 12,002 | 12,003 | 1 | ||||||||||
Total | $ | 23,347 | $ | 23,348 | $ | 1 | |||||||
Less amounts classified as cash equivalents | $ | (14,770 | ) | $ | (14,770 | ) | $ | — | |||||
Total investments | $ | 8,577 | $ | 8,578 | $ | 1 | |||||||
December 31, 2012 | Amortized | Fair | Unrealized | ||||||||||
Cost | Value | Gain/ | |||||||||||
(Loss) | |||||||||||||
Money market funds | $ | 17,307 | $ | 17,307 | $ | — | |||||||
Total | $ | 17,307 | $ | 17,307 | $ | — | |||||||
Less amounts classified as cash equivalents | $ | (17,307 | ) | $ | (17,307 | ) | $ | — | |||||
Total investments | $ | — | $ | — | $ | — | |||||||
Balance_Sheet_Components
Balance Sheet Components | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ' | ||||||||
Balance Sheet Components | ' | ||||||||
5. Balance Sheet Components | |||||||||
Property and equipment consisted of the following (in thousands): | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Lab equipment | $ | 9,035 | $ | 8,900 | |||||
Manufacturing equipment | 10,502 | 9,181 | |||||||
Computer equipment and software | 4,706 | 4,779 | |||||||
Furniture | 816 | 816 | |||||||
Leasehold improvements | 18,899 | 18,719 | |||||||
43,958 | 42,395 | ||||||||
Less: accumulated depreciation | (28,967 | ) | (25,864 | ) | |||||
$ | 14,991 | $ | 16,531 | ||||||
Other accrued liabilities consisted of the following (in thousands): | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Accrued compensation | $ | 3,435 | $ | 2,166 | |||||
Accrued professional fees | 796 | 658 | |||||||
Other | 505 | 775 | |||||||
$ | 4,736 | $ | 3,599 | ||||||
Commitments
Commitments | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Commitments And Contingencies Disclosure [Abstract] | ' | ||||
Commitments | ' | ||||
6. Commitments | |||||
Operating Leases | |||||
We lease one building, at 2091 Stierlin Court, or the 2091 Building, and we formerly leased an additional building at 2023 Stierlin Court, or the 2023 Building, both in Mountain View, California, and both of which we began to occupy in 2007. We recognize rental expense on the facilities on a straight line basis over the initial term of the lease. Differences between the straight line rent expense and actual rent payments are classified as deferred rent liability on the balance sheet. The lease for the 2091 Building expires on March 31, 2018, and we have two options to extend the lease for five years each. | |||||
In January 2010, we entered into an agreement to sublease a portion of the 2023 Building from March 1, 2010 through February 28, 2014. In August 2010, we entered into an agreement to sublease approximately 2,500 square feet of the 2091 Building to Cypress Bioscience, Inc., or Cypress, and to provide certain administrative, facility and information technology support for a period of 12 months and on a month-to-month basis thereafter. The Cypress sublease was terminated in October 2012. | |||||
On March 30, 2012, we terminated the lease for the 2023 Building, totaling 41,290 square feet, and concurrently cancelled the subleases associated with the 2023 Building. At the time of the termination, we recorded a non-cash contra-expense of $1,421,000 in general and administrative expenses, which is the net effect of reversing $2,073,000 of deferred rent liability associated with the 2023 Building lease and subleases and accelerating $652,000 of depreciation of fixed assets associated with the 2023 Building. | |||||
The 2091 Building lease, as amended, included tenant improvement reimbursements from the landlord. We have recorded all tenant improvements as additions to property and equipment and are amortizing the improvements over the shorter of the estimated useful life of the improvement or the remaining life of the lease. The reimbursements received from the landlord are included in deferred rent liability and amortized over the life of the lease as a contra-expense. | |||||
Future minimum lease payments under non-cancelable operating leases, at December 31, 2013 were as follows (in thousands): | |||||
Lease | |||||
Payments | |||||
2014 | $ | 3,502 | |||
2015 | 3,197 | ||||
2016 | 3,287 | ||||
2017 | 3,386 | ||||
2018 | 853 | ||||
Total minimum payments | $ | 14,225 | |||
Rental expense for the year ended December 31, 2013 was $2,286,000. Rental expense for the year ended December 31, 2012, net of sublease income and exclusive of the impact of reversing the deferred rent liability and acceleration of deprecation described above, was $1,972,000. Rental expense, net of sublease income, was $2,000,000 for the year ended December 31, 2011. Rental income from the sublease agreements was $0, $340,000 and $1,584,000, for the years ended December 31, 2013, 2012, and 2011, respectively. | |||||
Manufacturing and Supply Agreement | |||||
In November 2007, we entered into a Manufacturing and Supply Agreement, or the Manufacture Agreement, with Autoliv ASP, Inc., or Autoliv, relating to the commercial supply of chemical heat packages that can be incorporated into our Staccato device, or the Chemical Heat Packages. Autoliv had developed these Chemical Heat Packages for us pursuant to a development agreement between Autoliv and us. Under the terms of the Manufacture Agreement, Autoliv agreed to develop a manufacturing line capable of producing 10 million Chemical Heat Packages a year. | |||||
In June 2010 and February 2011, we entered into agreements to amend the terms of the Manufacture Agreement, or together the Amendments. Under the terms of the first Amendment, we paid Autoliv $4,000,000 and issued Autoliv a $4,000,000 unsecured promissory note in return for a production line for the commercial manufacture of Chemical Heat Packages. Each production line is comprised of two identical and self-sustaining “cells,” and the first such cell was completed, installed and qualified in connection with such Amendment. Under the terms of the second Amendment, the original $4,000,000 note was cancelled and a new note was issued with a reduced principal amount of $2,800,000, or the New Note, and production on the second cell ceased. The New Note is payable in 48 equal monthly installments of approximately $68,000. In the event that we request completion of the second cell of the first production line for the commercial manufacture of Chemical Heat Packages, Autoliv will complete, install and fully qualify such second cell for a cost to us of $1,200,000 and Autoliv will transfer ownership of such cell to us upon the payment in full of such $1,200,000 and the New Note. | |||||
Subject to certain exceptions, Autoliv has agreed to manufacture, assemble and test the Chemical Heat Packages solely for us in conformance with our specifications. We will pay Autoliv a specified purchase price, which varies based on annual quantities we order, per Chemical Heat Package delivered. In October 2013, Autoliv notified us of their intent to terminate, effective October 2016, the Manufacture Agreement. Prior to October 2016, we and Autoliv remain fully obligated to perform pursuant to the terms of both the Manufacture Agreement and the New Note. The Manufacture Agreement provides that during the term of the Manufacture Agreement, Autoliv will be our exclusive supplier of the Chemical Heat Packages. In addition, the Manufacture Agreement grants Autoliv the right to negotiate for the right to supply commercially any second generation Chemical Heat Package, or a Second Generation Product, and provides that we will pay Autoliv certain royalty payments if we manufacture Second Generation Products itself or if we obtain Second Generation Products from a third party manufacturer. Upon the termination of the Manufacture Agreement, we will be required, on an ongoing basis, to pay Autoliv certain royalty payments related to the manufacture of the Chemical Heat Packages by us or third party manufacturers. |
Financing_Obligations
Financing Obligations | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Debt Disclosure [Abstract] | ' | ||||
Financing Obligations | ' | ||||
7. Financing Obligations | |||||
Hercules Technology Growth Capital | |||||
In May 2010, we entered into a Loan Agreement with Hercules. Under the terms of the Loan Agreement, we borrowed $15,000,000 at an interest rate of the higher of (i) 10.75% or (ii) 6.5% plus the prime rate as reported in the Wall Street Journal, with a maximum interest rate of 14% and issued to Hercules a secured term promissory note evidencing the loan. We made interest-only payments through January 2011 and beginning in February 2011 the loan was repaid in 33 equal monthly installments. The loan was paid in full in October 2013. | |||||
In conjunction with the loan, we issued to Hercules a five-year warrant to purchase 37,639 shares of our common stock at a price of $26.90 per share. The warrant was immediately exercisable and expires in May 2015. We estimated the fair value of this warrant as of the issuance date to be $921,000 which was recorded as a debt discount to the loan and consequently a reduction to the carrying value of the loan. The fair value of the warrant was calculated using the Black-Scholes option valuation model, and was based on the contractual term of the warrant of five years, a risk-free interest rate of 2.31%, expected volatility of 84% and a 0% expected dividend yield. We also recorded fees paid to Hercules as a debt discount, which further reduced the carrying value of the loan. The debt discount was amortized to interest expense over the life of the loan. | |||||
In January 2012, we and Hercules amended the Loan Agreement to require us to maintain an amount equal to the outstanding principal balance of the loan in a restricted account that we classified as restricted cash. On January 3, 2013, Hercules removed the requirement to maintain the restricted account and the funds were no longer classified as restricted cash. | |||||
Autoliv ASP, Inc. | |||||
In June 2010, in return for transfer to us of all right, title and interest in a production line for the commercial manufacture of chemical heat packages completed or to be completed by Autoliv on our behalf, we paid Autoliv $4,000,000 in cash and issued Autoliv a $4,000,000 unsecured promissory note. In February 2011, we entered into an agreement to amend the terms of the unsecured promissory note. Under the terms of that amendment, the original $4,000,000 note was cancelled and the New Note was issued with a reduced principal amount of $2,800,000. | |||||
The New Note bears interest beginning on January 1, 2011 at 8% per annum and is being paid in 48 consecutive and equal monthly installments of approximately $68,000. | |||||
Teva Pharmaceuticals USA, Inc. | |||||
In May 2013, concurrent with the Teva Agreement (see Note 8), we entered into a Convertible Promissory Note and Agreement to Lend, dated as of May 7, 2013, between us and Teva, or the Teva Note. Under the terms of the Teva Note, we may, upon written notice to Teva, draw upon the Teva Note to fund agreed operating budgets related to ADASUVE. The aggregate drawdowns may total up to $25,000,000 and will be due and payable, together with all interest, on the fifth anniversary of the signing of the Teva Note. We may prepay, from time to time, up to one-half of the total amounts advanced plus the related interest outstanding at any time prior to the maturity date. At any time prior to five days before the maturity date, Teva will have the right to convert the then outstanding amounts into shares of our common stock at a conversion price of $4.4833 per share. The Teva Note bears simple interest of 4% per year. We have two years from the effective date of the Teva Note to receive advances. | |||||
In the third quarter of 2013, we drew down $10,000,000 against the Teva Note and, in the fourth quarter of 2013, we drew down an additional $5,000,000 against the Teva Note. At the time of the drawdowns, the contractual conversion price was less than the market value of our common stock. As a result, we calculated the value of the beneficial conversion feature of the convertible note and recorded an increase to additional paid-in-capital and a discount on the Teva Note of $3,112,000 which will be amortized to interest expense over the life of the borrowing. Additionally, we reclassified the relative portion of the unamortized right-to-borrow (see Note 8) against the Teva Note in the amount of $1,293,000 which will also be amortized to interest expense over the life of the borrowing. The effective interest rate of the first and second drawdowns against the Teva Note, which take into consideration the beneficial conversion features and the right-to-borrow discounts, is 13.9% and 9.9%, respectively. | |||||
Future scheduled principal payments under the debt obligations as of December 31, 2013 are as follows (in thousands): | |||||
Total | |||||
2014 | $ | 781 | |||
2015 | — | ||||
2016 | — | ||||
2017 | — | ||||
2018 | 15,000 | ||||
Total | $ | 15,781 | |||
License_Agreements
License Agreements | 12 Months Ended |
Dec. 31, 2013 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ' |
License Agreements | ' |
8. License Agreements | |
Cypress Bioscience, Inc. | |
In August 2010, we entered into a license and development agreement with Cypress Bioscience, Inc., or Cypress, for Staccato nicotine, or the Cypress Agreement. According to the terms of the Cypress Agreement, Cypress paid us a non-refundable upfront payment of $5,000,000 to acquire the worldwide license for the Staccato nicotine technology. In January 2011, Cypress was acquired by Ramius Value and Opportunity Advisors LLC; Royalty Pharma, U.S. Partner, LP; Royalty Pharma U.S. Partners 2008, LP; and RP Investment Corporation, or collectively, Royalty Pharma, at which time Royalty Pharma became Cypress’ successor in interest to the Cypress Agreement. As Royalty Pharma did not sell or license the Staccato nicotine technology by December 31, 2013, the Cypress Agreement automatically terminated and all rights to the Staccato nicotine technology reverted back to us at that date. | |
For revenue recognition purposes, we viewed the Cypress Agreement as a multiple element arrangement. Multiple element arrangements are analyzed to determine whether the various performance obligations, or elements, can be separated or whether they must be accounted for as a single unit of accounting. We evaluated the Cypress Agreement to determine whether the delivered elements under the arrangement had value on a stand-alone basis and whether objective and reliable evidence of fair value of the undelivered items existed. We accounted for the deliverables as a single unit of accounting. We did not recognize revenues under the Cypress Agreement in 2013 and recognized $1,259,000 of revenue under the Cypress Agreement in 2012. At December 31, 2013, we had no deferred revenues related to the Cypress Agreement. | |
Grupo Ferrer Internacional, S.A. | |
On October 5, 2011, we and Ferrer entered into the Ferrer Agreement to commercialize ADASUVE in Europe, Latin America, Russia and the Commonwealth of Independent States countries, or the Ferrer Territories. Under the terms of the Ferrer Agreement, we received an upfront cash payment of $10,000,000, of which $5,000,000 was paid to the former stockholders of Allegro. The Ferrer Agreement provided for up to an additional $51,000,000 in additional milestone payments, contingent on approval of Marketing Authorization Applications, or MAAs, individual country commercial sales initiation and royalty payments based on cumulative net sales targets in the Ferrer Territories. We were responsible for the marketing authorization for ADASUVE. The application for marketing authorization was submitted to the European Medicines Agency, or EMA, for an opinion regarding the potential authorization of ADASUVE and subsequent decision by the European Commission, or EC. We are also responsible for all post-authorization clinical studies required by the EMA and EC. Ferrer will be responsible for satisfaction of all other regulatory and pricing requirements to market and sell ADASUVE in the Ferrer Territories. Ferrer will have the exclusive rights to commercialize the product in the Ferrer Territories. We will supply ADASUVE to Ferrer for all of its commercial sales, and will receive a specified per-unit transfer price paid in Euros. Either party may terminate the Ferrer Agreement for the other party’s uncured material breach or bankruptcy. The Ferrer Agreement continues in effect on a country-by-country basis until the later of the last to expire patent covering ADASUVE in such country or 12 years after first commercial sale. The Ferrer Agreement is subject to earlier termination in the event the parties mutually agree, by a party in the event of an uncured material breach by the other party or upon the bankruptcy or insolvency of either party. | |
In March 2012, we entered into an amendment to the Ferrer Agreement. We and Ferrer agreed to eliminate the potential MAA approval milestone payment in exchange for Ferrer’s purchase of 241,936 shares of our common stock for $12.40 per share for a total of $3,000,000, which reflected a premium on the fair value of our common stock of approximately $1,452,000. | |
We evaluated whether the delivered elements under the Ferrer Agreement have value on a stand-alone basis and allocated revenue to the identified units of accounting based on relative fair value. We determined that the license and the development and regulatory services are a single unit of accounting as the licenses were determined not to have stand-alone value. We have begun to deliver all elements of the arrangement and are recognizing the $10,000,000 upfront payment as revenue ratably over the estimated performance period of the agreement of four years. The $1,452,000 premium received from the sale of common stock to Ferrer is additional consideration received pursuant to the Ferrer Agreement and does not pertain to a separate deliverable or element of the arrangement, and thus is being deferred and recognized as revenue in a manner consistent with the $10,000,000 upfront payment. | |
The Ferrer Agreement provides for us to receive up to $48,000,000 of additional payments related to first commercial sales in nine identified countries and to cumulative net sales targets in the Ferrer Territories. The cumulative net sales targets will be recognized as royalty revenue when each target is earned and payable to us. The first commercial sales payments will be recognized utilizing the milestone method of revenue recognition. We believe each of these milestones is substantive as there is uncertainty that the milestones will be met, the milestone can only be achieved as a result of our past performance and the achievement of the milestone will result in additional payment to us. We will recognize milestone revenue upon first commercial sales in each of these identified countries. In 2013, we received and recognized revenue on the first milestone in the amount of $1,250,000, of which $312,500 was paid to the former stockholders of Allegro (see Note 2). | |
We recognized $2,915,000, $2,811,000 and $625,000 of license revenue related to the Ferrer Agreement in the years ended December 31, 2013, 2012 and 2011, respectively. At December 31, 2013 we had deferred revenue of $5,101,000 related to the Ferrer Agreement. | |
Teva Pharmaceuticals USA, Inc. | |
In May 2013, we entered into the Teva Agreement to provide Teva with an exclusive license to develop and commercialize ADASUVE in the United States. Under the terms of the Teva Agreement, Teva will be responsible for all U.S. development, regulatory and commercialization activities for ADASUVE, including the U.S. post-approval clinical studies and any additional clinical trials for new indications. Teva has the full right to sublicense its rights and obligations under the Teva Agreement. We are responsible for manufacturing and supplying ADASUVE to Teva for clinical trials and commercial sales. Teva has the exclusive rights to commercialize ADASUVE in the United States and the co-exclusive rights (with us and our affiliates) to manufacture the product. | |
We received an upfront cash payment of $40,000,000 from Teva, $10,000,000 of which was paid to the former stockholders of Allegro. We are eligible to receive up to $195,000,000 in additional payments contingent on Teva’s successful completion of the ADASUVE post-approval studies in the United States and Teva achieving specified net sales targets. In addition to these payments, we will supply ADASUVE to Teva for all of its clinical trials and commercial sales, and we will receive a specified per-unit transfer price in an amount of the greater of our costs of commercial production or a specified per-unit price. Teva will make tiered royalty payments based on net commercial sales of ADASUVE in the United States. In March 2014, Teva announced the U.S. launch of ADASUVE. | |
Unless earlier terminated, the Teva Agreement continues in effect until the later of the last to expire patent covering ADASUVE in the United States or a specified number of years after first commercial sale. The Agreement is subject to earlier termination in the event the parties mutually agree, by a party in the event of an uncured material breach by the other party or upon the bankruptcy or insolvency of either party. Teva may also terminate the Teva Agreement in the event the FDA requires withdrawal or suspension of ADASUVE from the market due to safety reasons or, subject to a specified period of notice, for Teva’s convenience at any time following the first anniversary of the Teva Agreement. | |
We evaluated whether the delivered elements under the Teva Agreement have value on a stand-alone basis and allocated revenue to the identified units of accounting based on relative fair value. We determined that the license fees are a single unit of accounting and valued the license based on its best estimate of selling price, as VSOE and TPE of the selling price could not be determined. The selling price was estimated using discounted projected cash flows related to the licensed territory. We have delivered the license to Teva and recognized the $40,000,000 non-refundable upfront payment as revenue. | |
As described in Note 7, in connection with the Teva Agreement, we received a right-to-borrow under the Teva Note. We have the ability to draw on the Teva Note in amounts not to exceed $25,000,000, over a two year period. As outlined in Note 7, the Teva Note has a fixed conversion price and interest rate. This right-to-borrow was considered additional consideration provided by Teva to us pursuant to the Teva Agreement. We performed an analysis using a Monte Carlo simulation model with a volatility rate of 70% and an estimated debt yield of 15%. Based on this analysis, we determined that the fair value of this right-to-borrow was $2,800,000. We recorded this amount as revenue and as another asset upon entering into the Teva Note. The asset is being amortized to interest expense over the two year period during which we are able to exercise the right-to-borrow. As we draw on the Teva Note, the relative portion of the unamortized right-to-borrow is accounted for as a discount on the borrowing and will be amortized to interest expense over the life of the borrowing. In 2013, we drew down $15,000,000 against the Teva Note and reclassified $1,293,000 of the unamortized right-to-borrow as a discount on the borrowing to be amortized to interest expense over the life of the borrowing. We recorded $752,000 in interest expense related to the right-to-borrow in 2013. | |
As noted above, we are eligible to receive up to $195,000,000 of additional payments from Teva related to Teva’s successful completion of the ADASUVE post-approval studies in the United States and Teva achieving specified net sales targets. The payments related to net sales targets will be recognized as royalty revenue when each target is earned and payable to us. The payment related to the completion of the ADASUVE post-approval studies will be recognized upon completion of the studies when the payment is earned and payable to us. |
Warrants
Warrants | 12 Months Ended |
Dec. 31, 2013 | |
Text Block [Abstract] | ' |
Warrants | ' |
9. Warrants | |
In May 2010, in conjunction with the Loan Agreement with Hercules, we issued to Hercules a five-year warrant to purchase 37,639 shares of our common stock at a price of $26.90 per share. The warrant expires in May 2015. At December 31, 2013, this warrant remained outstanding and exercisable. | |
In August 2010, we issued an aggregate of 668,518 shares of our common stock and warrants to purchase up to an additional 334,258 shares of our common stock in a registered direct offering. These securities were sold as units with each unit consisting of (i) one share of common stock and (ii) a warrant to purchase 0.5 of a share of common stock, at a purchase price of $27.00 per unit. The warrants are exercisable at $33.00 per share and expire five years after August 2010. At December 31, 2013, these warrants remained outstanding and exercisable. | |
In May 2011, we issued an aggregate of 1,192,703 shares of our common stock and warrants to purchase up to an additional 417,445 shares of our common stock in a registered direct offering. The warrants are exercisable at $17.55 per share and will expire on May 6, 2016. At December 31, 2013, these warrants remained outstanding and exercisable. | |
In February 2012, we issued an aggregate of 4,400,000 shares of our common stock and warrants to purchase up to an additional 4,400,000 shares of our common stock in an underwritten public offering. The warrants are exercisable beginning February 24, 2013, at an exercise price of $5.00 per share, and will expire on February 23, 2017. At December 31, 2013, these warrants remained outstanding and exercisable. | |
All outstanding warrants include a provision that allows the warrant holder to net share settle the warrant. In no circumstances will we issue shares in excess of the number of shares underlying the warrant. The outstanding warrants are classified as stockholders’ equity and are indexed to our common stock. |
Equity_Incentive_Plans
Equity Incentive Plans | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ||||||||||||||||||||||||
Equity Incentive Plans | ' | ||||||||||||||||||||||||
10. Equity Incentive Plans | |||||||||||||||||||||||||
2005 Equity Incentive Plan | |||||||||||||||||||||||||
In December 2005, our Board of Directors adopted the 2005 Equity Incentive Plan, or the 2005 Plan, and authorized for issuance thereunder 108,879 shares of common stock. The 2005 Plan became effective upon the closing of our initial public offering on March 8, 2006. The 2005 Plan is an amendment and restatement of our previous stock option plans. | |||||||||||||||||||||||||
Stock options issued under the 2005 Plan generally vest over 4 years, vesting is generally based on service time, and have a maximum contractual term of 10 years. Restricted stock units granted to non-employee directors, which are granted in lieu of paying director fees in cash, generally vest one year after the date of grant. Prior to vesting, restricted stock units do not have dividend equivalent rights, do not have voting rights and the shares underlying the restricted units are not considered issued and outstanding. Shares are issued on the date the restricted stock units vest. | |||||||||||||||||||||||||
The 2005 Plan provides for annual reserve increases on the first day of each fiscal year commencing on January 1, 2007 and ending on January 1, 2015. The annual reserve increases will be equal to the lesser of (i) 2% of the total number of shares of our common stock outstanding on December 31st of the preceding calendar year, or (ii) 100,000 shares of common stock. Our Board of Directors has the authority to designate a smaller number of shares by which the authorized number of shares of common stock will be increased prior to the last day of any calendar year. | |||||||||||||||||||||||||
In May 2008, our stockholders approved an amendment to the Plan to increase the number of shares of our stock reserved for issuance under the 2005 Plan by an additional 150,000 shares. In July 2011, following stockholder approval, the 2005 Plan was amended to increase the shares of common stock reserved for issuance pursuant to the 2005 Plan by 750,000 shares of common stock as well as to increase the number of shares that can be issued as incentive stock options pursuant to the 2005 Plan. In May 2013, our stockholders approved an amendment to the 2005 Plan to increase the shares reserved by an additional 2,200,000 shares. | |||||||||||||||||||||||||
2005 Non-Employee Directors’ Stock Option Plan | |||||||||||||||||||||||||
In December 2005, our Board of Directors adopted the 2005 Non-Employee Directors’ Stock Option Plan, or the Directors’ Plan, and authorized for issuance thereunder 25,000 shares of common stock. The Directors’ Plan provides for the automatic grant of nonstatutory stock options to purchase shares of common stock to our non-employee directors, which vest over four years and have a term of 10 years. The Directors’ Plan provides for an annual reserve increase to be added on the first day of each fiscal year, commencing on January 1, 2007 and ending on January 1, 2015. The annual reserve increases will be equal to the number of shares subject to options granted during the preceding fiscal year less the number of shares that revert back to the share reserve during the preceding fiscal year. Our Board of Directors has the authority to designate a smaller number of shares by which the authorized number of shares of common stock will be increased prior to the last day of any calendar year. In May 2013, our stockholders approved an amendment to the Directors’ Plan to increase the shares reserved by an additional 200,000 shares. | |||||||||||||||||||||||||
2011 Employee Stock Option Exchange Program | |||||||||||||||||||||||||
On January 21, 2011, we commenced a voluntary employee stock option exchange program, or the Exchange Program, to permit our eligible employees to exchange some or all of their eligible outstanding options, or Original Options to purchase our common stock with an exercise price greater than or equal to $23.70 per share, whether vested or unvested, for a lesser number of new stock options, or New Options. In accordance with the terms and conditions of the Exchange Program, on February 22, 2011, or the Grant Date, we accepted outstanding options to purchase an aggregate of 212,843 shares of our common stock, with exercise prices ranging from $23.80 to $117.00, and issued, in exchange, an aggregate of 80,890 New Options with an exercise price of $12.30. The New Options vested 33% on February 22, 2012 with the balance of the shares vesting in a series of twenty-four successive equal monthly installments thereafter, and have a term of five years. The exchange resulted in a decrease in our common stock subject to outstanding stock options by 131,953 shares, which increased the number of shares available to be issued under the 2005 Plan. The Exchange Program did not result in incremental share-based compensation. | |||||||||||||||||||||||||
The following table sets forth the summary of option activity under our share-based compensation plans: | |||||||||||||||||||||||||
Outstanding Options | |||||||||||||||||||||||||
Number of | Weighted Average | ||||||||||||||||||||||||
Shares | Exercise Price | ||||||||||||||||||||||||
Balance as of January 1, 2013 | 1,038,245 | $ | 12.24 | ||||||||||||||||||||||
Options granted | 1,369,030 | 4.49 | |||||||||||||||||||||||
Options exercised | (10,317 | ) | 3.48 | ||||||||||||||||||||||
Options cancelled | (275,454 | ) | 10.31 | ||||||||||||||||||||||
Balance as of December 31, 2013 | 2,121,504 | $ | 7.53 | ||||||||||||||||||||||
At December 31, 2013, options to exercise 607,000 shares of our common stock, at a weighted average exercise price of $15.22 were exercisable. | |||||||||||||||||||||||||
The intrinsic value of options exercised is calculated based on the difference between the exercise price and the quoted market price of our stock on the exercise date. The total intrinsic value of options exercised during the years ended December 31, 2013, 2012 and 2011 was $13,000, $0, and $0, respectively. None of our options have expired. | |||||||||||||||||||||||||
Information regarding the stock options outstanding at December 31, 2013 is summarized as follows: | |||||||||||||||||||||||||
Outstanding | Exercisable | ||||||||||||||||||||||||
Exercise Price | Number of | Remaining | Aggregate | Number | Remaining | Aggregate | |||||||||||||||||||
Shares | Contractual | Intrinsic | of Shares | Contractual | Intrinsic | ||||||||||||||||||||
Life (In | Value | Life (In | Value | ||||||||||||||||||||||
Years) | Years) | ||||||||||||||||||||||||
$3.32 — $3.50 | 384,882 | 8.53 | $ | 485,000 | 132,783 | 8.48 | $ | 167,000 | |||||||||||||||||
$4.08 — $4.41 | 154,100 | 9.36 | 59,000 | — | — | — | |||||||||||||||||||
$4.42 — $4.42 | 788,500 | 9.24 | 244,000 | — | — | — | |||||||||||||||||||
$4.44 — $12.30 | 402,350 | 7.95 | 21,000 | 95,744 | 3.31 | 1,000 | |||||||||||||||||||
$12.70 — $117.00 | 391,672 | 6.82 | — | 378,728 | 6.8 | — | |||||||||||||||||||
2,121,504 | 8.43 | $ | 809,000 | 607,255 | 6.62 | $ | 168,000 | ||||||||||||||||||
The intrinsic value noted in the table above is calculated as the difference between the market value as of December 31, 2013 and the exercise price of the shares. The market value as of December 31, 2013, the last trading date of 2013, was $4.73 as reported by The NASDAQ Stock Market. | |||||||||||||||||||||||||
Information with respect to unvested share units (restricted stock units) as of December 31, 2013 is as follows: | |||||||||||||||||||||||||
Number | Weighted | ||||||||||||||||||||||||
of Shares | Average | ||||||||||||||||||||||||
Grant Date | |||||||||||||||||||||||||
Fair Value | |||||||||||||||||||||||||
Outstanding at January 1, 2013 | — | $ | — | ||||||||||||||||||||||
Granted | 590,495 | 4.67 | |||||||||||||||||||||||
Released | (17,795 | ) | 4.2 | ||||||||||||||||||||||
Canceled | (51,650 | ) | 4.68 | ||||||||||||||||||||||
Outstanding at December 31, 2013 | 521,050 | $ | 4.68 | ||||||||||||||||||||||
The total value of restricted stock units released during the years ended December 31, 2013, 2012 and 2011 was $75,000, $1,443,000 and $272,000, respectively. | |||||||||||||||||||||||||
We authorized shares of common stock for issuance under the 2005 Plan and the Directors’ Plan as follows. | |||||||||||||||||||||||||
Year | Number of Shares | ||||||||||||||||||||||||
2011 | 857,500 | ||||||||||||||||||||||||
2012 | 120,000 | ||||||||||||||||||||||||
2013 | 2,319,812 | ||||||||||||||||||||||||
The shares authorized for issuance in 2013 include the annual reserve increase of 119,812 shares and the stockholder approved increase of 2,200,000 shares. As of December 31, 2013, 950,396 and 166,249 shares remained available for issuance under the 2005 Plan and the Directors’ Plan, respectively. | |||||||||||||||||||||||||
On January 1, 2014 an additional 100,000 and 58,751 shares were authorized for issuance under the evergreen provisions of the 2005 Plan and the Directors’ Plan, respectively. | |||||||||||||||||||||||||
2005 Employee Stock Purchase Plan | |||||||||||||||||||||||||
In December 2005, our Board of Directors adopted the 2005 Employee Stock Purchase Plan (“ESPP”) and authorized for issuance thereunder 50,000 shares of common stock. The ESPP allows eligible employee participants to purchase shares of our common stock at a discount through payroll deductions. The ESPP consists of a fixed offering period, generally twenty-four months with four purchase periods within each offering period. Purchases are generally made on the last trading day of each October and April. Employees purchase shares at each purchase date at 85% of the market value of our common stock on their enrollment date or the end of the purchase period, whichever price is lower. | |||||||||||||||||||||||||
The ESPP provides for annual reserve increases on the first day of each fiscal year commencing on January 1, 2007 and ending on January 1, 2015. The annual reserve increases will be equal to the lesser of (i) 1% of the total number of shares of our common stock outstanding on December 31 of the preceding calendar year, or (ii) 75,000 shares of common stock. Our Board of Directors has the authority to designate a smaller number of shares by which the authorized number of shares of common stock will be increased prior to the last day of any calendar year. In May 2011, our Compensation Committee terminated the then current offering period under the ESPP and resolved to begin a new offering period in August 2011 and also amended the ESPP to reduce the time period of each offering period from twenty-four to six months. | |||||||||||||||||||||||||
In July 2011, following stockholder approval, the ESPP was amended to, among other changes, modify the annual automatic increase in shares reserved for the plan to an amount equal to the least of (i) one percent (1%) of the total number of shares of common stock outstanding on December 31st of the preceding calendar year, (ii) 75,000 shares of common stock and (iii) an amount determined by our Board of Directors. The new offering period under the ESPP began on August 15, 2011 and the related purchase occurred on April 30, 2012. | |||||||||||||||||||||||||
Pursuant to the ESPP, on January 1, 2013, 2012 and 2011 an additional 75,000, 72,136 and 25,000 shares, respectively, were reserved for issuance. We issued 54,494, 18,409 and 24,998 shares at weighted average prices of $3.67, $4.44 and $8.10, during the years ended December 31, 2013, 2012 and 2011, respectively. At December 31, 2013, 74,632 shares were available for issuance under the ESPP. | |||||||||||||||||||||||||
On January 1, 2014 an additional 75,000 shares were reserved for issuance under the ESPP. |
401k_Plan
401(k) Plan | 12 Months Ended |
Dec. 31, 2013 | |
Compensation And Retirement Disclosure [Abstract] | ' |
401(k) Plan | ' |
11. 401(k) Plan | |
We sponsor a 401(k) Plan that stipulates that eligible employees can elect to contribute to the 401(k) Plan, subject to certain limitations. In 2013, we matched employee contributions of a total of $96,000. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Income Taxes | ' | ||||||||||||
12. Income Taxes | |||||||||||||
There is no provision for income taxes because we have incurred operating losses since inception and applied a full valuation allowance against all deferred tax assets. | |||||||||||||
The reported amount of income tax expense (benefit) attributable to operations for the year differs from the amount that would result from applying domestic federal statutory tax rates to loss before income taxes from operations as summarized below (in thousands): | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Federal tax benefit at statutory rate | $ | (13,469 | ) | $ | (9,512 | ) | $ | (13,781 | ) | ||||
State tax benefit net of federal effect | (2,311 | ) | (1,632 | ) | (2,365 | ) | |||||||
Research and development credits | (532 | ) | (254 | ) | (1,669 | ) | |||||||
Other permanent differences | 14 | (30 | ) | 11 | |||||||||
Share-based compensation | 650 | 1,040 | 902 | ||||||||||
Adjustment to basis in subsidiary | 15,899 | (757 | ) | 1,593 | |||||||||
Change in valuation allowance | 251 | 11,016 | 15,233 | ||||||||||
Other | — | 129 | 76 | ||||||||||
Total | $ | — | $ | — | $ | — | |||||||
Deferred income taxes reflect the net tax effects of the temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amount used for income tax purposes. The deferred tax assets were calculated using an effective tax rate of 40%. Significant components of our deferred tax assets are as follows (in thousands): | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Federal and state net operating loss carryforwards | $ | 114,643 | $ | 113,216 | |||||||||
Federal and state research and development credit carryforwards | 14,977 | 14,611 | |||||||||||
Accrued liabilities | 8,085 | 6,073 | |||||||||||
Capitalized research and development costs | 13,845 | 18,610 | |||||||||||
Other | 2,648 | 1,960 | |||||||||||
Total deferred tax assets | 154,198 | 154,470 | |||||||||||
Valuation allowance | (154,198 | ) | (154,470 | ) | |||||||||
Net deferred tax assets | $ | — | $ | — | |||||||||
Our accounting for deferred taxes involves the evaluation of a number of factors concerning the realizability of our net deferred tax assets. We primarily considered such factors as our history of operating losses, the nature of our deferred tax assets and the timing, likelihood and amount, if any, of future taxable income during the periods in which those temporary differences and carryforwards become deductible. At present, we do not believe that it is more likely than not that the deferred tax assets will be realized; accordingly, a full valuation allowance has been established and no deferred tax asset is shown in the accompanying balance sheets. The valuation allowance increased by approximately $(272,000), $10,552,000 and $14,628,000 during the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||
As of December 31, 2013 we had federal net operating loss carryforwards of approximately $290,060,000. We also had federal research and development tax credit carryforwards of approximately $10,073,000. The net operating loss and tax credit carryforwards will expire at various dates beginning in 2020, if not utilized. | |||||||||||||
As of December 31, 2013, we had state net operating loss carryforwards of approximately $284,136,000 which will begin to expire in 2014. We also had state research and development tax credit carryforwards of approximately $4,904,000, which have no expiration. | |||||||||||||
As of December 31, 2013, approximately $1,393,000 of deferred tax assets is attributable to certain employee stock option deductions and the federal and state net operating loss carryforward has been adjusted accordingly. When realized, the benefit of the tax deduction related to these options will be accounted for as a credit to stockholders’ equity rather than as a reduction of the income tax provision. | |||||||||||||
A limitation may apply to the use of the net operating loss and credit carryforwards, under provisions of the Internal Revenue Code that are applicable if we experience an “ownership change”. That may occur, for example, as a result of trading in our stock by institutional investors as well issuance of new equity. Should these limitations apply, the carryforwards would be subject to an annual limitation, resulting in a substantial reduction in the gross deferred tax assets before considering the valuation allowance. As of December 31, 2013, we have not performed an analysis to determine if our net operating loss and credit carryforwards would be subject to such limitations. | |||||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands): | |||||||||||||
Balance at January 1, 2011 | 2,958 | ||||||||||||
Additions based on tax positions taken during a prior period | — | ||||||||||||
Reductions based on tax positions taken during a prior period | (277 | ) | |||||||||||
Additions based on tax positions taken during the current period | 253 | ||||||||||||
Reductions based on tax positions taken during the current period | — | ||||||||||||
Reductions related to settlement of tax matters | — | ||||||||||||
Reductions related to a lapse of applicable statute of limitations | — | ||||||||||||
Balance at December 31, 2011 | $ | 2,934 | |||||||||||
Additions based on tax positions taken during a prior period | — | ||||||||||||
Reductions based on tax positions taken during a prior period | (16 | ) | |||||||||||
Additions based on tax positions taken during the current period | 96 | ||||||||||||
Reductions based on tax positions taken during the current period | — | ||||||||||||
Reductions related to settlement of tax matters | — | ||||||||||||
Reductions related to a lapse of applicable statute of limitations | — | ||||||||||||
Balance at December 31, 2012 | $ | 3,014 | |||||||||||
Additions based on tax positions taken during a prior period | — | ||||||||||||
Reductions based on tax positions taken during a prior period | (231 | ) | |||||||||||
Additions based on tax positions taken during the current period | 36 | ||||||||||||
Reductions based on tax positions taken during the current period | — | ||||||||||||
Reductions related to settlement of tax matters | — | ||||||||||||
Reductions related to a lapse of applicable statute of limitations | — | ||||||||||||
Balance at December 31, 2013 | $ | 2,819 | |||||||||||
If we eventually are able to recognize these uncertain tax positions, the unrecognized tax benefits would not reduce the effective tax rate if we are applying a full valuation allowance against the deferred tax assets, as is our current policy. | |||||||||||||
We have not incurred any material tax interest or penalties as of December 31, 2013. We do not anticipate any significant change within 12 months of this reporting date of its uncertain tax positions. We are subject to taxation in the United States and various states jurisdictions. There are no other ongoing examinations by taxing authorities at this time. Our various tax years starting with 2001 to 2013 remain open in various taxing jurisdictions. |
Quarterly_Results
Quarterly Results | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||
Quarterly Results | ' | ||||||||||||||||
13. Quarterly Results (Unaudited) | |||||||||||||||||
The following table is in thousands, except per share amounts: | |||||||||||||||||
Quarter Ended | |||||||||||||||||
March 31 | June 30 | September 30 | December 31 | ||||||||||||||
Fiscal 2013 | |||||||||||||||||
Revenues | $ | 729 | $ | 43,635 | $ | 2,166 | $ | 1,309 | |||||||||
Income/(Loss) from operations | (9,603 | ) | 31,069 | (10,339 | ) | (9,357 | ) | ||||||||||
Net loss | (20,712 | ) | (799 | ) | (12,412 | ) | (5,692 | ) | |||||||||
Basic and diluted net loss per share | (1.31 | ) | (0.05 | ) | (0.72 | ) | (0.33 | ) | |||||||||
Fiscal 2012 | |||||||||||||||||
Revenues | $ | 1,884 | $ | 728 | $ | 729 | $ | 729 | |||||||||
Loss from operations | (4,393 | ) | (7,186 | ) | (6,393 | ) | (10,900 | ) | |||||||||
Net loss | (3,827 | ) | (6,957 | ) | (6,921 | ) | (10,273 | ) | |||||||||
Basic and diluted net loss per share | (0.42 | ) | (0.58 | ) | (0.52 | ) | (0.65 | ) |
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
14. Subsequent Events | |
Teva Draw Down | |
In March 2014, we drew down an additional $5.0 million against the Teva note. | |
Royalty Securitization Financing | |
In March 2014, we completed a royalty securitization financing, which consisted of a private placement to qualified institutional buyers and accredited institutional investors of $45.0 million of non-recourse notes issued by our wholly-owned subsidiary, or the Notes, and warrants to purchase 345,661 shares of our common stock at a price of $0.01 per share exercisable for five years from the date of issuance. The Notes bear interest at 12.25% per annum payable quarterly beginning June 15, 2014. All royalty and milestone payments under the Teva Agreement, after paying interest, administrative fees, and any applicable taxes, will be applied to principal and interest payments on the Notes until the Notes have been paid in full. From the proceeds of the transaction, we established a $6.9 million interest reserve account to cover potential shortfall in interest payments. Any remaining amounts in the interest reserve account will be released to us commencing June 15, 2015, subject to meeting certain net sales targets for ADASUVE, or, if not previously released, on or after December 15, 2015, irrespective of ADASUVE net sales. All other payments of principal and interest on the Notes will be made from royalty revenues from sales in the U.S. of ADASUVE, as well as potential U.S. commercialization and regulatory milestone payments due to Alexza. The Notes are secured by the right to receive royalty and milestone payments under the Teva Agreement and our equity ownership in the wholly-owned subsidiary. The Notes have no other recourse to us. The Notes may not be redeemed at our option until after March 18, 2016, and may be redeemed after that date subject to the achievement of certain milestones and the payment of a redemption premium for any redemption occurring prior to March 19, 2019. The Notes are not convertible into Alexza equity, nor have we guaranteed them. After fees and expenses, the net proceeds to us were approximately $41 million before the establishment of the interest reserve account. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Accounting Policies [Abstract] | ' | |||
Basis of Presentation | ' | |||
Basis of Presentation | ||||
We have prepared the accompanying consolidated financial statements in conformity with accounting principles generally accepted in the United States of America, or U.S. GAAP. Our fiscal year ends on December 31. The accompanying consolidated financial statements include our accounts and those of our wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated. | ||||
Use of Estimates | ' | |||
Use of Estimates | ||||
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. | ||||
Fair Value of Financial Instruments | ' | |||
Fair Value of Financial Instruments | ||||
Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. Three levels of inputs, of which the first two are considered observable and the last unobservable, may be used to measure fair value which are the following: | ||||
• | Level 1 — Quoted prices in active markets for identical assets or liabilities. | |||
• | Level 2 — Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | |||
• | Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. | |||
Our available-for-sale debt securities are valued utilizing a multi-dimensional relational model. Inputs, listed in approximate order of priority for use when available, include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data. There were no transfers between Level 1 and Level 2 measurements during the year ended December 31, 2013, and there were no changes in our valuation technique. | ||||
Contingent Consideration Liability | ' | |||
Contingent Consideration Liability | ||||
In connection with the exercise of our option to purchase all of the outstanding equity of Symphony Allegro, Inc., or Allegro, in 2009, we are obligated to make contingent cash payments to the former Allegro stockholders related to certain payments received by us from future collaboration agreements pertaining to ADASUVE/AZ-104 (Staccato loxapine) or AZ-002 (Staccato alprazolam). In order to estimate the fair value of the liability associated with the contingent cash payments, we prepared several cash flow scenarios for ADASUVE, AZ-104 and AZ-002, which are subject to the contingent payment obligation. Each potential cash flow scenario consisted of assumptions of the range of estimated milestone and license payments potentially receivable from such collaborations and assumed royalties received from future product sales. Based on these estimates, we computed the estimated payments to be made to the former Allegro stockholders. Payments were assumed to terminate in accordance with current agreement terms or, if no agreements exist, upon the expiration of the related patents. | ||||
The projected cash flow assumptions for ADASUVE in the United States are based on the License and Supply Agreement, or the Teva Agreement, between us and Teva Pharmaceuticals USA, Inc., or Teva, (see Note 8) and on internally and externally developed product sales forecasts. The timing and extent of the projected cash flows for ADASUVE for the territories licensed to Ferrer are based on the Ferrer Agreement (see Note 8). The timing and extent of the projected cash flows for the remaining territories for ADASUVE and worldwide territories for AZ-002 and AZ-104 were based on internal estimates for potential milestones and multiple product royalty scenarios and are also consistent in structure to the most recently negotiated collaboration agreements. | ||||
We then assigned a probability to each of the cash flow scenarios based on several factors, including: the product candidate’s stage of development, preclinical and clinical results, technological risk related to the successful development of the different drug candidates, estimated market size, market risk and potential collaboration interest to determine a risk adjusted weighted average cash flow based on all of these scenarios. These probability and risk adjusted weighted average cash flows were then discounted utilizing our estimated weighted average cost of capital, or WACC. Our WACC considered our cash position, competition, risk of substitute products, and risk associated with the financing of the development projects. In 2013, we reduced the discount rate from 18.0% to 16.5% to reflect our current estimated WACC. The change in discount rate increased the net loss for 2013 by approximately $3,600,000 or $0.22 per share. | ||||
The fair value measurement of the contingent consideration liability is based on significant inputs not observed in the market and thus represents a Level 3 measurement. Level 3 measurements are valued based on unobservable inputs that are supported by little or no market activity and reflect our assumptions in measuring fair value. | ||||
We record any changes in the fair value of the contingent consideration liability in earnings in the period of the change. Certain events including, but not limited to, the timing and terms of any collaboration agreement, clinical trial results, approval or non-approval of any future regulatory submissions and the commercial success of ADASUVE, AZ-104 or AZ-002 could have a material impact on the fair value of the contingent consideration liability, and as a result, our results of operations and financial position for the impacted period. | ||||
Financing Obligations | ' | |||
Financing Obligations | ||||
We have estimated the fair value of our financing obligations (see Note 7) using the net present value of the payments discounted at an interest rate that is consistent with its estimated current borrowing rate for similar long-term debt. We believe the estimates used to measure the fair value of the financing obligations constitute Level 3 inputs. | ||||
At December 31, 2013 and 2012, the estimated fair value of our financing obligations was $9,342,000 and $6,254,000, respectively and had book values of $11,524,000 and $6,461,000, respectively. Our payment commitments associated with these debt instruments may vary with changes in interest rates and are comprised of interest payments and principal payments. The fair value of our debt will fluctuate with movements of interest rates, increasing in periods of declining rates of interest and declining in periods of increasing rates of interest. | ||||
Concentration of Credit Risk | ' | |||
Concentration of Credit Risk | ||||
Financial instruments that potentially subject us to credit risk consist of cash, cash equivalents and marketable securities to the extent of the amounts recorded on the balance sheets. Our cash, cash equivalents and marketable securities are placed with high credit-quality U.S. financial institutions and issuers. We believe that its established guidelines for investment of its excess cash maintain liquidity through its policies on diversification and investment maturity. | ||||
Cash Equivalents and Marketable Securities | ' | |||
Cash Equivalents and Marketable Securities | ||||
We determine the appropriate classification of our investments at the time of purchase. These securities are recorded as either cash equivalents or marketable securities. | ||||
We consider all highly liquid investments with original maturities of three months or less from date of purchase to be cash equivalents. Cash equivalents consist of interest-bearing instruments including obligations of U.S. government agencies, high credit rating corporate borrowers and money market funds, which are carried at market value. | ||||
All other investments are classified as available-for-sale marketable securities. We view our available-for-sale investments as available for use in current operations. Accordingly, we have classified all investments as short-term marketable securities, even though the stated maturity date may be one year or more beyond the current balance sheet date. Marketable securities are carried at estimated fair value with unrealized gains or losses included in accumulated other comprehensive income (loss) in stockholders’ (deficit) equity. | ||||
The amortized cost of debt securities is adjusted for amortization of premiums and accretion of discounts to maturity. Such amortization and accretion are included in interest and other income (expense), net. Realized gains and losses, if any, are also included in interest and other income (expense), net. The cost of all securities sold is based on the specific-identification method. Interest and dividends are included in interest income. | ||||
We review our investments for other than temporary decreases in market value on a quarterly basis. To date, we have not recorded any charges related to other-than-temporary impairments. | ||||
Restricted Cash | ' | |||
Restricted Cash | ||||
In January 2012, we and Hercules Technology Growth Capital, Inc., or Hercules, amended the Loan and Security Agreement between Hercules and us entered into in May 2010, or the Loan Agreement, to require us to maintain an amount equal to the outstanding principal balance of the loan in a restricted account (See Note 7). Upon an event of default, as defined in the Loan Agreement, Hercules had the ability to access the funds. On January 3, 2013, Hercules removed the requirement to maintain the restricted account and the funds were no longer classified as restricted cash. | ||||
Property and Equipment | ' | |||
Property and Equipment | ||||
Property and equipment are stated at cost, less accumulated depreciation. Property and equipment are depreciated using the straight-line method over the estimated life of the asset, generally three years for computer equipment and five years for manufacturing equipment and laboratory equipment and seven years for furniture. Leasehold improvements are amortized over the estimated useful life or the remaining lease term, whichever is shorter. | ||||
Impairment of Long-Lived Assets | ' | |||
Impairment of Long-Lived Assets | ||||
We review long-lived assets, including property and equipment, for impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable. An impairment loss would be recognized when estimated undiscounted future cash flows expected to result from the use of the asset and its eventual disposition are less than its carrying amount. The impairment loss, if recognized, would be based on the excess of the carrying value of the impaired asset over its respective fair value. Through December 31, 2013, we have not recorded an impairment of a long-lived asset. | ||||
Revenue Recognition | ' | |||
Revenue Recognition | ||||
We recognize revenue when (i) persuasive evidence of an arrangement exists; (ii) delivery has occurred or services have been rendered; (iii) the fee is fixed or determinable; and (iv) collectability is reasonably assured. Prior to the second quarter of 2013, our revenue consisted primarily of amounts earned from collaboration agreements and under research grants with the National Institutes of Health. Beginning in the second quarter of 2013, we also have revenue from product sales. | ||||
For collaboration agreements, revenues for non-refundable upfront license fee payments, where we continue to have performance obligations, are recognized as performance occurs and obligations are completed. Revenues for non-refundable upfront license fee payments where we do not have significant future performance obligations are recognized when the agreement is signed and the payments are due. | ||||
For multiple element arrangements, such as collaboration agreements in which a collaborator may purchase several deliverables, we account for each deliverable as a separate unit of accounting if both of the following criteria are met: (i) the delivered item or items have value to the customer on a standalone basis; and (ii) for an arrangement that includes a general right of return relative to the delivered item(s), delivery or performance of the undelivered item(s) is considered probable and substantially in our control. We evaluate how the consideration should be allocated among the units of accounting and allocate revenue to each non-contingent element based upon the relative selling price of each element. We determine the relative selling price for each deliverable using (i) vendor-specific objective evidence, or VSOE, of selling price if it exists; (ii) third-party evidence, or TPE, of selling price if it exists; or (iii) our best estimated selling price for that deliverable if neither VSOE nor TPE of selling price exists for that deliverable. We then recognize the revenue allocated to each element when the four basic revenue criteria described above are met for each element. | ||||
For milestone payments received in connection with our collaboration agreements, we have elected to adopt the milestone method of accounting under Financial Accounting Standards Board Accounting Standards Codification 605-28, Milestone Method. Under the milestone method, revenues for payments which meet the definition of a milestone will be recognized as the respective milestones are achieved. | ||||
We recognize product revenue as follows: | ||||
• | Persuasive Evidence of an Arrangement. We currently sell product through license and supply agreements with our collaborators, Ferrer and Teva. Persuasive evidence of an arrangement is generally determined by the receipt of an approved purchase order from the collaborator in connection with the terms of the license and supply agreements. | |||
• | Delivery. Typically, ownership of the product passes to the collaborator upon shipment. Our current license and supply agreements also provide our collaborators with an acceptance period during which they may reject any product which does not conform to agreed-upon specifications. Because ADASUVE is a new product, a new technology and our first product to be commercialized, and because we do not have a history of producing product to collaborator specifications, we will not consider delivery to have occurred until after the collaborator acceptance period has ended or the collaborator has positively accepted the product. Once we have demonstrated over the course of time an ability to reliably produce the product to collaborator specifications, we will consider delivery to have occurred upon shipment in the absence of any other relevant shipment or acceptance terms. | |||
• | Sales Price Fixed or Determinable. Sales prices for product shipments are determined by the license and supply agreements and documented in the purchase orders. After the collaborator acceptance period has ended or the collaborator has positively accepted the product, our collaborators do not have any product return or replacement rights, including for expired products. | |||
• | Collectability. Payment for the product is contractually obligated under the license and supply agreements. We will monitor payment histories for our collaborators and specific issues as they arise to determine whether collection is probable for a specific transaction and defer revenue as necessary. | |||
Royalty revenue from our collaboration agreements will be recognized as we receive information from our collaborators regarding product sales. | ||||
Significant management judgment is used in the determination of revenue to be recognized and the period in which it is recognized. | ||||
Inventory | ' | |||
Inventory | ||||
Inventory is stated at standard cost, which approximates actual cost, determined on a first-in first-out basis, not in excess of market value. Inventory includes the direct costs incurred to manufacture products combined with allocated manufacturing overhead, which consists of indirect costs, including labor and facility overhead. We are in the early stages of commercialization and have incurred significantly higher than normal indirect costs in the production of our inventory due to start-up manufacturing costs and low production volumes. The carrying cost of inventory is reduced so as to not be in excess of the market value of the inventory as determined by the contractual transfer prices to Ferrer and Teva. The excess over the market value is expensed to cost of goods sold. All costs associated with the ADASUVE manufacturing process incurred prior to regulatory approval and the beginning of commercial manufacturing were expensed as a component of research and development expense. If information becomes available that suggests that all or certain of the inventory may not be realizable, we may be required to expense a portion, or all, of the capitalized inventory into cost of goods sold. | ||||
Research and Development | ' | |||
Research and Development | ||||
Research and development expenses include personnel and facility-related expenses, outside contracted services including clinical trial costs, manufacturing and process development costs, research costs and other consulting services. Research and development costs are expensed as incurred. | ||||
Clinical development costs are a significant component of research and development expenses. We have a history of contracting with third parties that perform various clinical trial activities on our behalf in the ongoing development of its product candidates. The financial terms of these contracts are subject to negotiations and may vary from contract to contract and may result in uneven payment flow. We accrue and expense costs for clinical trial activities performed by third parties based upon estimates of the percentage of work completed over the life of the individual study in accordance with agreements established with contract research organizations and clinical trial sites. | ||||
Income Taxes | ' | |||
Income Taxes | ||||
We utilize the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based on differences between financial reporting and tax basis of assets and liabilities and are measured using enacted tax rates and laws that will be in effect when the differences are expected to reverse. A valuation allowance is provided when it is more likely than not that some portion or all of a deferred tax asset will not be realized. | ||||
The impact of an uncertain income tax position on the income tax return must be recognized at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant taxing authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. | ||||
Share-Based Compensation | ' | |||
Share-Based Compensation | ||||
Compensation cost for employee share-based awards is based on the grant-date fair value and is recognized on a ratable basis over the requisite service periods of the awards, which are generally the vesting periods or, for performance-based options, the expected period during which the performance criteria is expected to be met. We issue employee share-based awards in the form of stock options and restricted stock units under our equity incentive plans and stock purchase rights under our employee stock purchase plan. | ||||
Stock Options, Stock Purchase Rights and Restricted Stock Units | ||||
The estimated grant date fair values of the stock options (excluding options issued in the Exchange Program) and stock purchase rights were calculated using the Black-Scholes valuation model. The Black-Scholes model requires the use of a number of highly subjective and complex assumptions in determining the fair value of stock-based awards as follows: | ||||
Weighted-Average Expected Term We determine the expected term of stock options granted through a combination of our own historical exercise experience and expected future exercise activities and post-vesting termination behavior. Under the Employee Stock Purchase Plan, the expected term of employee stock purchase plan shares is equal to the offering period. | ||||
Volatility We utilize our historical volatility to determine future volatility for the purpose of determining share-based payments for all options granted. | ||||
Risk-Free Interest Rate We utilize U.S. Treasury zero-coupon issues with remaining terms similar to the expected term of the options or purchase rights on the respective grant dates to determine our risk-free interest rate. | ||||
Dividend Yield We have never declared or paid any cash dividends and do not plan to pay cash dividends in the foreseeable future, and, therefore, use an expected dividend yield of zero in the valuation model. | ||||
Forfeiture Rate We use historical data to estimate pre-vesting option forfeitures and record stock-based compensation expense only for those awards that are expected to vest. All stock-based payment awards are amortized on a straight-line basis over the requisite service periods of the awards, which are generally the vesting periods. | ||||
In January 2011, as described in Note 10, we commenced a voluntary stock option Exchange Program. The Exchange Program did not result in incremental expense, as the fair value of the New Options (as defined in Note 10) granted was equal to or less than the fair values of the Original Options (as defined in Note 10) measured immediately prior to the date the New Options were granted and the Original Options were cancelled. The estimated grant date fair value of the New Options was calculated using the Black-Scholes valuation model. At the time of exchange, the exercise price of the Original Options was in excess of the market price, therefore the expected term of the Original Options granted was determined using the Monte Carlo Simulation method. The expected term of the New Options granted was determined using the “shortcut” method, as illustrated in the Securities and Exchange Commission’s Staff Accounting Bulletin No. 107, because the terms of the New Options are unique as compared to the existing awards and we do not have historical experience under the terms of the New Options. Under this approach, the expected term is estimated to be the average of the vesting term and the contractual term of the option. All other assumptions have been calculated using the historical methodologies we applied to all other stock option awards. | ||||
Restricted Stock Units The estimated fair value of restricted stock unit awards is calculated based on the market price of our common stock on the date of grant, reduced by the present value of dividends expected to be paid on our common stock prior to vesting of the restricted stock unit. Our estimate assumes no dividends will be paid prior to the vesting of the restricted stock unit. | ||||
In 2013, certain restricted stock unit awards were issued that vest based on market conditions. The estimated fair value of these awards was calculated using a binomial lattice model with a term of 10 years, an expected volatility of 99.4%, a risk-free interest rate of 1.94% and a dividend yield of 0%. | ||||
As of December 31, 2013, there was $3,930,000, $1,856,000 and $70,000 total unrecognized compensation costs related to non-vested stock option awards, restricted stock unit awards and stock purchase rights, respectively, which are expected to be recognized over a weighted average period of 2.1 years, 3.2 years and 0.3 years, respectively. | ||||
Operating Leases | ' | |||
We recognize rental expense on the facilities on a straight line basis over the initial term of the lease. Differences between the straight line rent expense and actual rent payments are classified as deferred rent liability on the balance sheet. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||
Financial Assets by Major Security Type and Liability Measured at Fair Value on Recurring Basis | ' | ||||||||||||||||
The following table represents the fair value hierarchy for our financial assets (cash equivalents and marketable securities) by major security type and contingent consideration liability measured at fair value on a recurring basis as of December 31, 2013 and 2012 (in thousands): | |||||||||||||||||
December 31, 2013 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets | |||||||||||||||||
Money market funds | $ | 11,345 | $ | — | $ | — | $ | 11,345 | |||||||||
Corporate debt securities | — | 12,003 | — | 12,003 | |||||||||||||
Total assets | $ | 11,345 | $ | 12,003 | $ | — | $ | 23,348 | |||||||||
Liabilities | |||||||||||||||||
Contingent consideration liability | $ | — | $ | — | $ | 39,200 | $ | 39,200 | |||||||||
Total liabilities | $ | — | $ | — | $ | 39,200 | $ | 39,200 | |||||||||
December 31, 2012 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets | |||||||||||||||||
Money market funds | $ | 17,307 | $ | — | $ | — | $ | 17,307 | |||||||||
Total assets | $ | 17,307 | $ | — | $ | — | $ | 17,307 | |||||||||
Liabilities | |||||||||||||||||
Contingent consideration liability | $ | — | $ | — | $ | 9,600 | $ | 9,600 | |||||||||
Total liabilities | $ | — | $ | — | $ | 9,600 | $ | 9,600 | |||||||||
Fair Value Measurement of Contingent Consideration Liability | ' | ||||||||||||||||
The following table represents a reconciliation of the change in the fair value measurement of the contingent consideration liability for the years ended December 31, 2013 and 2012 (in thousands). | |||||||||||||||||
December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Beginning balance | $ | 9,600 | $ | 16,500 | |||||||||||||
Payments made | (10,313 | ) | (5,000 | ) | |||||||||||||
Adjustments to fair value measurement | 39,913 | (1,900 | ) | ||||||||||||||
Ending balance | $ | 39,200 | $ | 9,600 | |||||||||||||
Schedule of Inventory | ' | ||||||||||||||||
Inventory, which is stated at the lower of cost or estimated market value, consists of the following at December 31, 2013 (in thousands): | |||||||||||||||||
Raw materials | $ | 3,044 | |||||||||||||||
Work in process | — | ||||||||||||||||
Finished goods | 403 | ||||||||||||||||
Inventory | $ | 3,447 | |||||||||||||||
Share-based Compensation Grant Date Fair Value | ' | ||||||||||||||||
During the years ended December 31, 2013, 2012 and 2011, the weighted average fair value per share of the employee stock options (excluding options issued in the Exchange Program as defined in Note 10), restricted stock units and stock purchase rights granted were: | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Stock Options | $ | 3.46 | $ | 2.6 | $ | 10.6 | |||||||||||
Restricted Stock Units | 4.67 | 4.96 | 13.3 | ||||||||||||||
Stock Purchase Rights | 1.76 | 3.86 | 8.2 | ||||||||||||||
Share-based Compensation Assumptions | ' | ||||||||||||||||
During the years ended December 31, 2013, 2012 and 2011, we calculated the estimated grant date fair value of stock options (excluding those issued in the Exchange Program as defined in Note 10) and stock purchase rights using the following assumptions: | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Stock Option Plans | |||||||||||||||||
Weighted-average expected term | 5.0 Years | 5.0 Years | 5.0 Years | ||||||||||||||
Expected volatility | 99% | 98% | 90% | ||||||||||||||
Risk-free interest rate | 0.86% | 0.62% | 1.52% | ||||||||||||||
Dividend yield | 0% | 0% | 0% | ||||||||||||||
Employee Stock Purchase Plan | |||||||||||||||||
Weighted-average expected term | 0.5 Years | 0.6 Years | 1.45 Years | ||||||||||||||
Expected volatility | 80% | 98% | 87% | ||||||||||||||
Risk-free interest rate | 0.70% | 0.14% | 0.59% | ||||||||||||||
Dividend yield | 0% | 0% | 0% | ||||||||||||||
Exchange Program | ' | ||||||||||||||||
The number of shares underlying the options included in the Exchange Program in 2011 and the weighted average assumptions utilized in the Black-Scholes valuation model were as follows: | |||||||||||||||||
Original | New | ||||||||||||||||
Options | Options | ||||||||||||||||
Number of shares | 212,843 | 80,890 | |||||||||||||||
Expected term | 4.7 years | 3.4 years | |||||||||||||||
Expected volatility | 94% | 98% | |||||||||||||||
Risk-free interest rate | 1.96% | 1.38% | |||||||||||||||
Dividend yield | 0% | 0% |
Net_Loss_per_Share_Tables
Net Loss per Share (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Potentially Anti-Dilutive Securities | ' | ||||||||||||
Potentially anti-dilutive securities include the following (in thousands): | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Outstanding stock options | 1,657 | 840 | 563 | ||||||||||
Unvested restricted stock units | 315 | 120 | 133 | ||||||||||
Warrants to purchase common stock | 6,462 | 5,582 | 1,895 | ||||||||||
Convertible debt | 651 | — | — |
Cash_Equivalents_and_Marketabl1
Cash Equivalents and Marketable Securities (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Cash And Cash Equivalents [Abstract] | ' | ||||||||||||
Amortized Cost, Fair Value and Unrealized Gain/(Loss) for Financial Assets by Major Security Type | ' | ||||||||||||
The amortized cost, fair value and unrealized gain/(loss) for our financial assets by major security type as of December 31, 2013 and 2012 are as follows (in thousands): | |||||||||||||
December 31, 2013 | Amortized | Fair | Unrealized | ||||||||||
Cost | Value | Gain/ | |||||||||||
(Loss) | |||||||||||||
Money market funds | $ | 11,345 | $ | 11,345 | $ | — | |||||||
Corporate debt securities | 12,002 | 12,003 | 1 | ||||||||||
Total | $ | 23,347 | $ | 23,348 | $ | 1 | |||||||
Less amounts classified as cash equivalents | $ | (14,770 | ) | $ | (14,770 | ) | $ | — | |||||
Total investments | $ | 8,577 | $ | 8,578 | $ | 1 | |||||||
December 31, 2012 | Amortized | Fair | Unrealized | ||||||||||
Cost | Value | Gain/ | |||||||||||
(Loss) | |||||||||||||
Money market funds | $ | 17,307 | $ | 17,307 | $ | — | |||||||
Total | $ | 17,307 | $ | 17,307 | $ | — | |||||||
Less amounts classified as cash equivalents | $ | (17,307 | ) | $ | (17,307 | ) | $ | — | |||||
Total investments | $ | — | $ | — | $ | — | |||||||
Balance_Sheet_Components_Table
Balance Sheet Components (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ' | ||||||||
Components of Property and Equipment | ' | ||||||||
Property and equipment consisted of the following (in thousands): | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Lab equipment | $ | 9,035 | $ | 8,900 | |||||
Manufacturing equipment | 10,502 | 9,181 | |||||||
Computer equipment and software | 4,706 | 4,779 | |||||||
Furniture | 816 | 816 | |||||||
Leasehold improvements | 18,899 | 18,719 | |||||||
43,958 | 42,395 | ||||||||
Less: accumulated depreciation | (28,967 | ) | (25,864 | ) | |||||
$ | 14,991 | $ | 16,531 | ||||||
Components of Other Accrued Liabilities | ' | ||||||||
Other accrued liabilities consisted of the following (in thousands): | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Accrued compensation | $ | 3,435 | $ | 2,166 | |||||
Accrued professional fees | 796 | 658 | |||||||
Other | 505 | 775 | |||||||
$ | 4,736 | $ | 3,599 | ||||||
Commitments_Tables
Commitments (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Commitments And Contingencies Disclosure [Abstract] | ' | ||||
Future Minimum Lease Payments By Year | ' | ||||
Future minimum lease payments under non-cancelable operating leases, at December 31, 2013 were as follows (in thousands): | |||||
Lease | |||||
Payments | |||||
2014 | $ | 3,502 | |||
2015 | 3,197 | ||||
2016 | 3,287 | ||||
2017 | 3,386 | ||||
2018 | 853 | ||||
Total minimum payments | $ | 14,225 | |||
Financing_Obligations_Tables
Financing Obligations (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Debt Disclosure [Abstract] | ' | ||||
Long Term Debt Payments by Year | ' | ||||
Future scheduled principal payments under the debt obligations as of December 31, 2013 are as follows (in thousands): | |||||
Total | |||||
2014 | $ | 781 | |||
2015 | — | ||||
2016 | — | ||||
2017 | — | ||||
2018 | 15,000 | ||||
Total | $ | 15,781 | |||
Equity_Incentive_Plans_Tables
Equity Incentive Plans (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ||||||||||||||||||||||||
Summary of Option Activity under Company's Share-Based Compensation Plans | ' | ||||||||||||||||||||||||
The following table sets forth the summary of option activity under our share-based compensation plans: | |||||||||||||||||||||||||
Outstanding Options | |||||||||||||||||||||||||
Number of | Weighted Average | ||||||||||||||||||||||||
Shares | Exercise Price | ||||||||||||||||||||||||
Balance as of January 1, 2013 | 1,038,245 | $ | 12.24 | ||||||||||||||||||||||
Options granted | 1,369,030 | 4.49 | |||||||||||||||||||||||
Options exercised | (10,317 | ) | 3.48 | ||||||||||||||||||||||
Options cancelled | (275,454 | ) | 10.31 | ||||||||||||||||||||||
Balance as of December 31, 2013 | 2,121,504 | $ | 7.53 | ||||||||||||||||||||||
Information Regarding Stock Options Outstanding | ' | ||||||||||||||||||||||||
Information regarding the stock options outstanding at December 31, 2013 is summarized as follows: | |||||||||||||||||||||||||
Outstanding | Exercisable | ||||||||||||||||||||||||
Exercise Price | Number of | Remaining | Aggregate | Number | Remaining | Aggregate | |||||||||||||||||||
Shares | Contractual | Intrinsic | of Shares | Contractual | Intrinsic | ||||||||||||||||||||
Life (In | Value | Life (In | Value | ||||||||||||||||||||||
Years) | Years) | ||||||||||||||||||||||||
$3.32 — $3.50 | 384,882 | 8.53 | $ | 485,000 | 132,783 | 8.48 | $ | 167,000 | |||||||||||||||||
$4.08 — $4.41 | 154,100 | 9.36 | 59,000 | — | — | — | |||||||||||||||||||
$4.42 — $4.42 | 788,500 | 9.24 | 244,000 | — | — | — | |||||||||||||||||||
$4.44 — $12.30 | 402,350 | 7.95 | 21,000 | 95,744 | 3.31 | 1,000 | |||||||||||||||||||
$12.70 — $117.00 | 391,672 | 6.82 | — | 378,728 | 6.8 | — | |||||||||||||||||||
2,121,504 | 8.43 | $ | 809,000 | 607,255 | 6.62 | $ | 168,000 | ||||||||||||||||||
Information with Respect to Unvested Share Units of Restricted Stock Units | ' | ||||||||||||||||||||||||
Information with respect to unvested share units (restricted stock units) as of December 31, 2013 is as follows: | |||||||||||||||||||||||||
Number | Weighted | ||||||||||||||||||||||||
of Shares | Average | ||||||||||||||||||||||||
Grant Date | |||||||||||||||||||||||||
Fair Value | |||||||||||||||||||||||||
Outstanding at January 1, 2013 | — | $ | — | ||||||||||||||||||||||
Granted | 590,495 | 4.67 | |||||||||||||||||||||||
Released | (17,795 | ) | 4.2 | ||||||||||||||||||||||
Canceled | (51,650 | ) | 4.68 | ||||||||||||||||||||||
Outstanding at December 31, 2013 | 521,050 | $ | 4.68 | ||||||||||||||||||||||
Authorized Shares of Common Stock for Issuance | ' | ||||||||||||||||||||||||
We authorized shares of common stock for issuance under the 2005 Plan and the Directors’ Plan as follows. | |||||||||||||||||||||||||
Year | Number of Shares | ||||||||||||||||||||||||
2011 | 857,500 | ||||||||||||||||||||||||
2012 | 120,000 | ||||||||||||||||||||||||
2013 | 2,319,812 |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Summarized Report of Domestic Federal Statutory Tax Rates to Loss before Income Taxes from Operations | ' | ||||||||||||
The reported amount of income tax expense (benefit) attributable to operations for the year differs from the amount that would result from applying domestic federal statutory tax rates to loss before income taxes from operations as summarized below (in thousands): | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Federal tax benefit at statutory rate | $ | (13,469 | ) | $ | (9,512 | ) | $ | (13,781 | ) | ||||
State tax benefit net of federal effect | (2,311 | ) | (1,632 | ) | (2,365 | ) | |||||||
Research and development credits | (532 | ) | (254 | ) | (1,669 | ) | |||||||
Other permanent differences | 14 | (30 | ) | 11 | |||||||||
Share-based compensation | 650 | 1,040 | 902 | ||||||||||
Adjustment to basis in subsidiary | 15,899 | (757 | ) | 1,593 | |||||||||
Change in valuation allowance | 251 | 11,016 | 15,233 | ||||||||||
Other | — | 129 | 76 | ||||||||||
Total | $ | — | $ | — | $ | — | |||||||
Report of Company's Deferred Tax Assets | ' | ||||||||||||
Significant components of our deferred tax assets are as follows (in thousands): | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Federal and state net operating loss carryforwards | $ | 114,643 | $ | 113,216 | |||||||||
Federal and state research and development credit carryforwards | 14,977 | 14,611 | |||||||||||
Accrued liabilities | 8,085 | 6,073 | |||||||||||
Capitalized research and development costs | 13,845 | 18,610 | |||||||||||
Other | 2,648 | 1,960 | |||||||||||
Total deferred tax assets | 154,198 | 154,470 | |||||||||||
Valuation allowance | (154,198 | ) | (154,470 | ) | |||||||||
Net deferred tax assets | $ | — | $ | — | |||||||||
Reconciliation Report of Beginning and Ending Amount of Unrecognized Tax Benefits | ' | ||||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands): | |||||||||||||
Balance at January 1, 2011 | 2,958 | ||||||||||||
Additions based on tax positions taken during a prior period | — | ||||||||||||
Reductions based on tax positions taken during a prior period | (277 | ) | |||||||||||
Additions based on tax positions taken during the current period | 253 | ||||||||||||
Reductions based on tax positions taken during the current period | — | ||||||||||||
Reductions related to settlement of tax matters | — | ||||||||||||
Reductions related to a lapse of applicable statute of limitations | — | ||||||||||||
Balance at December 31, 2011 | $ | 2,934 | |||||||||||
Additions based on tax positions taken during a prior period | — | ||||||||||||
Reductions based on tax positions taken during a prior period | (16 | ) | |||||||||||
Additions based on tax positions taken during the current period | 96 | ||||||||||||
Reductions based on tax positions taken during the current period | — | ||||||||||||
Reductions related to settlement of tax matters | — | ||||||||||||
Reductions related to a lapse of applicable statute of limitations | — | ||||||||||||
Balance at December 31, 2012 | $ | 3,014 | |||||||||||
Additions based on tax positions taken during a prior period | — | ||||||||||||
Reductions based on tax positions taken during a prior period | (231 | ) | |||||||||||
Additions based on tax positions taken during the current period | 36 | ||||||||||||
Reductions based on tax positions taken during the current period | — | ||||||||||||
Reductions related to settlement of tax matters | — | ||||||||||||
Reductions related to a lapse of applicable statute of limitations | — | ||||||||||||
Balance at December 31, 2013 | $ | 2,819 | |||||||||||
Quarterly_Results_Tables
Quarterly Results (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||
Summary of Quarterly Results | ' | ||||||||||||||||
The following table is in thousands, except per share amounts: | |||||||||||||||||
Quarter Ended | |||||||||||||||||
March 31 | June 30 | September 30 | December 31 | ||||||||||||||
Fiscal 2013 | |||||||||||||||||
Revenues | $ | 729 | $ | 43,635 | $ | 2,166 | $ | 1,309 | |||||||||
Income/(Loss) from operations | (9,603 | ) | 31,069 | (10,339 | ) | (9,357 | ) | ||||||||||
Net loss | (20,712 | ) | (799 | ) | (12,412 | ) | (5,692 | ) | |||||||||
Basic and diluted net loss per share | (1.31 | ) | (0.05 | ) | (0.72 | ) | (0.33 | ) | |||||||||
Fiscal 2012 | |||||||||||||||||
Revenues | $ | 1,884 | $ | 728 | $ | 729 | $ | 729 | |||||||||
Loss from operations | (4,393 | ) | (7,186 | ) | (6,393 | ) | (10,900 | ) | |||||||||
Net loss | (3,827 | ) | (6,957 | ) | (6,921 | ) | (10,273 | ) | |||||||||
Basic and diluted net loss per share | (0.42 | ) | (0.58 | ) | (0.52 | ) | (0.65 | ) |
The_Company_Additional_Informa
The Company - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | 0 Months Ended | ||||||||||
Jun. 12, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Jul. 23, 2012 | 31-May-13 | Sep. 30, 2012 | Aug. 31, 2012 | Feb. 23, 2012 | Mar. 15, 2012 | Mar. 05, 2012 | 6-May-11 | Aug. 10, 2010 | Jun. 12, 2012 | Jun. 12, 2012 | Jul. 28, 2011 | Jul. 28, 2011 | |
Segment | Azimuth Opportunity L.P. line of credit [Member] | Azimuth Opportunity L.P. line of credit [Member] | Azimuth Opportunity L.P. line of credit [Member] | Azimuth Opportunity L.P. line of credit [Member] | Underwritten Public Offering [Member] | Private Placement [Member] | Private Placement [Member] | Registered Direct Equity Issuances [Member] | Registered Direct Equity Issuances [Member] | Before Reverse Stock Split [Member] | After Reverse Stock Split [Member] | Before Amendment [Member] | After Amendment [Member] | |||
Grupo Ferrer Internacional, S.A. [Member] | Grupo Ferrer Internacional, S.A. [Member] | |||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of business segment | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reverse stock split, number of common shares outstanding | ' | 17,279,804 | 15,767,525 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 119,600,000 | 12,000,000 | ' | ' |
Common stock, par value | ' | $0.00 | $0.00 | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.00 | $0.00 | ' | ' |
Reverse stock split ratio, description | '1-for-10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reclassified from common stock to additional paid-in capital | $11,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares authorized before amendment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 105,000,000 | 205,000,000 |
Common stock, shares authorized | ' | 200,000,000 | 200,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000,000 | 200,000,000 |
Issuance of common stock in the aggregate stock and warrants sale | ' | 17,279,804 | 15,767,525 | 80,429 | 1,437,481 | 3,489,860 | 3,489,860 | 4,400,000 | ' | ' | 1,192,703 | 668,518 | ' | ' | ' | ' |
Number of common shares, callable by warrants issued in the aggregate stock and warrants sale | ' | ' | ' | ' | ' | ' | ' | 4,400,000 | ' | ' | 417,445 | 334,258 | ' | ' | ' | ' |
Net proceeds received in the aggregate stock and warrants sale | ' | ' | ' | ' | 6,347,000 | 13,393,000 | 13,393,000 | 20,231,000 | ' | ' | 15,941,000 | ' | ' | ' | ' | ' |
Exercise price of warrant | ' | ' | ' | ' | ' | ' | ' | 5 | ' | ' | 17.55 | 33 | ' | ' | ' | ' |
Warrant expiration date | ' | ' | ' | ' | ' | ' | ' | 23-Feb-17 | ' | ' | 6-May-16 | ' | ' | ' | ' | ' |
Date from which warrants are exercisable | ' | ' | ' | ' | ' | ' | ' | 24-Feb-13 | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of consideration received by company in exchange for shares sold in transaction | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,000,000 | ' | ' | ' | ' | ' | ' |
Sale of stock, number of shares issued in transaction | ' | ' | ' | ' | ' | ' | ' | ' | 241,936 | ' | ' | ' | ' | ' | ' | ' |
Common stock average price per share | ' | ' | ' | ' | $4.48 | $3.88 | $3.88 | ' | $12.40 | ' | ' | ' | ' | ' | ' | ' |
Premium on the fair value from sale of stock, classified as deferred revenue | ' | ' | ' | ' | ' | ' | ' | ' | 1,452,000 | ' | ' | ' | ' | ' | ' | ' |
Equity line of credit utilized, maximum capacity | ' | ' | ' | 20,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity line of credit utilized | ' | ' | ' | ' | $6,400,000 | $13,600,000 | $13,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common Stock Agreement term | ' | ' | ' | '24 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Discount of issued shares | ' | ' | ' | ' | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Financial Assets by Major Security Type and Liability Measured at Fair Value on Recurring Basis (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Assets | ' | ' |
Money market funds | $14,770 | $17,307 |
Liabilities | ' | ' |
Contingent consideration liability | 9,342 | 6,254 |
Fair value, Measurements, Recurring [Member] | ' | ' |
Assets | ' | ' |
Total assets | 23,348 | 17,307 |
Liabilities | ' | ' |
Contingent consideration liability | 39,200 | 9,600 |
Total liabilities | 39,200 | 9,600 |
Fair value, Measurements, Recurring [Member] | Money market funds [Member] | ' | ' |
Assets | ' | ' |
Money market funds | 11,345 | 17,307 |
Fair value, Measurements, Recurring [Member] | Corporate debt securities [Member] | ' | ' |
Assets | ' | ' |
Corporate debt securities | 12,003 | ' |
Fair value, Measurements, Recurring [Member] | Level 1 [Member] | ' | ' |
Assets | ' | ' |
Total assets | 11,345 | 17,307 |
Liabilities | ' | ' |
Contingent consideration liability | ' | ' |
Total liabilities | ' | ' |
Fair value, Measurements, Recurring [Member] | Level 1 [Member] | Money market funds [Member] | ' | ' |
Assets | ' | ' |
Money market funds | 11,345 | 17,307 |
Fair value, Measurements, Recurring [Member] | Level 1 [Member] | Corporate debt securities [Member] | ' | ' |
Assets | ' | ' |
Corporate debt securities | ' | ' |
Fair value, Measurements, Recurring [Member] | Level 2 [Member] | ' | ' |
Assets | ' | ' |
Total assets | 12,003 | ' |
Liabilities | ' | ' |
Contingent consideration liability | ' | ' |
Total liabilities | ' | ' |
Fair value, Measurements, Recurring [Member] | Level 2 [Member] | Money market funds [Member] | ' | ' |
Assets | ' | ' |
Money market funds | ' | ' |
Fair value, Measurements, Recurring [Member] | Level 2 [Member] | Corporate debt securities [Member] | ' | ' |
Assets | ' | ' |
Corporate debt securities | 12,003 | ' |
Fair value, Measurements, Recurring [Member] | Level 3 [Member] | ' | ' |
Assets | ' | ' |
Total assets | ' | ' |
Liabilities | ' | ' |
Contingent consideration liability | 39,200 | 9,600 |
Total liabilities | 39,200 | 9,600 |
Fair value, Measurements, Recurring [Member] | Level 3 [Member] | Money market funds [Member] | ' | ' |
Assets | ' | ' |
Money market funds | ' | ' |
Fair value, Measurements, Recurring [Member] | Level 3 [Member] | Corporate debt securities [Member] | ' | ' |
Assets | ' | ' |
Corporate debt securities | ' | ' |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Business Acquisition, Contingent Consideration [Line Items] | ' | ' | ' |
Increased in net loss resulted from change in discount rate | $3,600,000 | ' | ' |
Increased in net loss per share resulted from change in discount rate | $0.22 | ' | ' |
Increase (decrease) on change in fair value of contingent consideration liability | 39,913,000 | -1,900,000 | 4,000,000 |
Increased in net loss resulted from change in assumptions | 39,913,000 | ' | ' |
Estimated fair value of financing obligations | 9,342,000 | 6,254,000 | ' |
Book values of financing obligations | 11,524,000 | 6,461,000 | ' |
Maturity period of highly liquid investments | 'Three months or less | ' | ' |
Uncertain tax position recognition likelihood percentage | 50.00% | ' | ' |
Grupo Ferrer Internacional, S.A. [Member] | ' | ' | ' |
Business Acquisition, Contingent Consideration [Line Items] | ' | ' | ' |
Increase (decrease) on change in fair value of contingent consideration liability | ' | ' | 4,000,000 |
Increase (decrease) in earnings per share | ' | ' | $0.59 |
Upfront cash received under collaborative arrangement | ' | 10,000,000 | ' |
Upfront cash received under collaborative arrangement | 1,250,000 | ' | ' |
Grupo Ferrer Internacional, S.A. [Member] | Allegro stockholders [Member] | ' | ' | ' |
Business Acquisition, Contingent Consideration [Line Items] | ' | ' | ' |
Payments to former stockholders under collaborative arrangement | 312,500 | 5,000,000 | ' |
No collaboration partner [Member] | ' | ' | ' |
Business Acquisition, Contingent Consideration [Line Items] | ' | ' | ' |
Increase (decrease) in earnings per share | ' | $0.15 | ' |
Teva Pharmaceuticals USA, Inc. [Member] | ' | ' | ' |
Business Acquisition, Contingent Consideration [Line Items] | ' | ' | ' |
Increase (decrease) in earnings per share | $2.39 | ' | ' |
Upfront cash received under collaborative arrangement | 40,000,000 | ' | ' |
Teva Pharmaceuticals USA, Inc. [Member] | Allegro stockholders [Member] | ' | ' | ' |
Business Acquisition, Contingent Consideration [Line Items] | ' | ' | ' |
Payments to former stockholders under collaborative arrangement | $10,313,000 | ' | ' |
Maximum [Member] | ' | ' | ' |
Business Acquisition, Contingent Consideration [Line Items] | ' | ' | ' |
Cash flow discount rate | 18.00% | ' | ' |
Minimum [Member] | ' | ' | ' |
Business Acquisition, Contingent Consideration [Line Items] | ' | ' | ' |
Cash flow discount rate | 16.50% | ' | ' |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies - Fair Value Measurement of Contingent Consideration Liability (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Fair Value Disclosures [Abstract] | ' | ' |
Beginning balance | $9,600 | $16,500 |
Payments made | -10,313 | -5,000 |
Adjustments to fair value measurement | 39,913 | -1,900 |
Ending balance | $39,200 | $9,600 |
Summary_of_Significant_Account6
Summary of Significant Accounting Policies - Useful Life - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2013 | |
Computer equipment [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated life of the asset | '3 years |
Equipment [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated life of the asset | '5 years |
Furniture [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated life of the asset | '7 years |
Leasehold improvements [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Leasehold improvements description | 'Leasehold improvements are amortized over the estimated useful life or the remaining lease term, whichever is shorter |
Summary_of_Significant_Account7
Summary of Significant Accounting Policies - Schedule of Inventory (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Inventory Disclosure [Abstract] | ' |
Raw materials | $3,044 |
Work in process | ' |
Finished goods | 403 |
Inventory | $3,447 |
Summary_of_Significant_Account8
Summary of Significant Accounting Policies - Share-based Compensation Grant Date Fair Value (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Stock Options | $3.46 | $2.60 | $10.60 |
Restricted Stock Units [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Restricted Stock Units or Stock Purchase Rights | $4.67 | $4.96 | $13.30 |
Stock Purchase Rights [Member] | Employee Stock Purchase Plan [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Restricted Stock Units or Stock Purchase Rights | $1.76 | $3.86 | $8.20 |
Summary_of_Significant_Account9
Summary of Significant Accounting Policies - Share-based Compensation Assumptions (Detail) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Stock Option Plans [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Weighted-average expected term | '5 years | '5 years | '5 years |
Expected volatility | 99.00% | 98.00% | 90.00% |
Risk-free interest rate | 0.86% | 0.62% | 1.52% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Employee Stock Purchase Plan [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Weighted-average expected term | '6 months | '7 months 6 days | '1 year 5 months 12 days |
Expected volatility | 80.00% | 98.00% | 87.00% |
Risk-free interest rate | 0.70% | 0.14% | 0.59% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Recovered_Sheet1
Summary of Significant Accounting Policies - Exchange Program (Detail) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2011 |
2011 Employee Stock Option Exchange Program [Member] | 2011 Employee Stock Option Exchange Program [Member] | |||
Original Options [Member] | New Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Number of shares | 2,121,504 | 1,038,245 | 212,843 | 80,890 |
Expected term | ' | ' | '4 years 8 months 12 days | '3 years 4 months 24 days |
Expected volatility | ' | ' | 94.00% | 98.00% |
Risk-free interest rate | ' | ' | 1.96% | 1.38% |
Dividend yield | ' | ' | 0.00% | 0.00% |
Recovered_Sheet2
Summary of Significant Accounting Policies - Share-based Compensation by Award Type - Additional Information (Detail) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Employee Stock Purchase Plan [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Unrecognized compensation costs related to non-vested stock option awards | $70,000 |
Costs expected to be recognized over a weighted average period | '3 months 18 days |
Outstanding stock options [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Unrecognized compensation costs | 3,930,000 |
Costs expected to be recognized over a weighted average period | '2 years 1 month 6 days |
Restricted stock unit awards [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Unrecognized compensation costs | $1,856,000 |
Costs expected to be recognized over a weighted average period | '3 years 2 months 12 days |
Restricted Stock Units [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Expected term | '10 years |
Expected volatility | 99.40% |
Risk-free interest rate | 1.94% |
Dividend yield | 0.00% |
Net_Loss_per_Share_Additional_
Net Loss per Share - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Earnings Per Share [Abstract] | ' | ' | ' |
Weighted average shares subject to repurchase | 0 | 0 | 0 |
Net_Loss_per_Share_Potentially
Net Loss per Share - Potentially Anti-Dilutive Securities (Detail) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Outstanding stock options [Member] | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Anti-dilutive securities | 1,657 | 840 | 563 |
Unvested restricted stock units [Member] | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Anti-dilutive securities | 315 | 120 | 133 |
Warrants to purchase common stock [Member] | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Anti-dilutive securities | 6,462 | 5,582 | 1,895 |
Convertible debt [Member] | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Anti-dilutive securities | 651 | ' | ' |
Cash_Equivalents_and_Marketabl2
Cash Equivalents and Marketable Securities - Amortized Cost, Fair Value and Unrealized Gain/(Loss) for Financial Assets by Major Security Type (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | $8,577 | ' |
Fair Value | 8,578 | ' |
Unrealized Gain/(Loss) | 1 | ' |
Less amounts classified as cash equivalents, Amortized Cost | -14,770 | -17,307 |
Less amounts classified as cash equivalents, Fair Value | -14,770 | -17,307 |
Less amounts classified as cash equivalents, Unrealized Gain/(Loss) | ' | ' |
Corporate debt securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 12,002 | ' |
Fair Value | 12,003 | ' |
Unrealized Gain/(Loss) | 1 | ' |
Total [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 23,347 | 17,307 |
Fair Value | 23,348 | 17,307 |
Unrealized Gain/(Loss) | 1 | ' |
Money market funds [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 11,345 | 17,307 |
Fair Value | 11,345 | 17,307 |
Unrealized Gain/(Loss) | ' | ' |
Balance_Sheet_Components_Compo
Balance Sheet Components - Components of Property and Equipment (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment | $43,958 | $42,395 |
Less: accumulated depreciation | -28,967 | -25,864 |
Property and equipment, net | 14,991 | 16,531 |
Lab equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment | 9,035 | 8,900 |
Manufacturing equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment | 10,502 | 9,181 |
Computer equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment | 4,706 | 4,779 |
Furniture [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment | 816 | 816 |
Leasehold improvements [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment | $18,899 | $18,719 |
Balance_Sheet_Components_Compo1
Balance Sheet Components - Components of Other Accrued Liabilities (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Payables And Accruals [Abstract] | ' | ' |
Accrued compensation | $3,435 | $2,166 |
Accrued professional fees | 796 | 658 |
Other | 505 | 775 |
Total other accrued liabilities | $4,736 | $3,599 |
Commitments_Operating_Leases_A
Commitments - Operating Leases - Additional Information (Detail) (USD $) | 12 Months Ended | 1 Months Ended | 0 Months Ended | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Aug. 31, 2010 | Mar. 30, 2012 | Dec. 31, 2013 | |
Agreement to sublease [Member] | 2023 Building [Member] | 2091 Building [Member] | ||||
Cypress Bioscience, Inc. [Member] | sqft | Option | ||||
sqft | ||||||
Operating Leased Assets [Line Items] | ' | ' | ' | ' | ' | ' |
Expiry of lease of 2091 Building | ' | ' | ' | ' | ' | 31-Mar-18 |
Operating leases renewal term, duration | ' | ' | ' | ' | ' | '5 years |
Operating leases options | ' | ' | ' | ' | ' | 2 |
Area of building subleased | ' | ' | ' | 2,500 | ' | ' |
Description of sublease terms | ' | ' | ' | 'To provide certain administrative, facility and information technology support for a period of 12 months and on a month-to-month basis thereafter | ' | ' |
Termination of 2023 lease Building, square feet | ' | ' | ' | ' | 41,290 | ' |
General and administrative expenses | $15,778,000 | $11,093,000 | $11,766,000 | ' | $1,421,000 | ' |
Deferred rent liability | ' | ' | ' | ' | 2,073,000 | ' |
Depreciation | 3,323,000 | 4,336,000 | 4,432,000 | ' | 652,000 | ' |
Rent expenses, net of sublease income | 2,286,000 | 1,972,000 | 2,000,000 | ' | ' | ' |
Rental income from the sublease agreement | $0 | $340,000 | $1,584,000 | ' | ' | ' |
Commitments_Future_Minimum_Lea
Commitments - Future Minimum Lease Payments By Year (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Commitments And Contingencies Disclosure [Abstract] | ' |
2014 | $3,502 |
2015 | 3,197 |
2016 | 3,287 |
2017 | 3,386 |
2018 | 853 |
Total minimum payments | $14,225 |
Commitments_Manufacturing_and_
Commitments - Manufacturing and Supply - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | 1 Months Ended | ||
Feb. 28, 2011 | Jun. 30, 2010 | Dec. 31, 2013 | Feb. 28, 2011 | Feb. 28, 2011 | |
New Note [Member] | Autoliv ASP, Inc. [Member] | Autoliv ASP, Inc. [Member] | Autoliv ASP, Inc. [Member] | Autoliv ASP, Inc. [Member] | |
Package | Original Note [Member] | New Note [Member] | |||
Long-term Purchase Commitment [Line Items] | ' | ' | ' | ' | ' |
Production of Chemical Heat Packages | ' | ' | 10,000,000 | ' | ' |
Amount of cash paid to Autoliv ASP, Inc. | ' | $4,000,000 | ' | ' | ' |
Value of unsecured promissory note issued | ' | ' | ' | 4,000,000 | 2,800,000 |
Value of cancelled note | ' | ' | ' | ' | 4,000,000 |
Installment period of New Note | ' | ' | ' | ' | '48 months |
Periodic payment of New Note | ' | ' | ' | ' | 68,000 |
Cost to complete and acquire production line of second cell | $1,200,000 | ' | ' | ' | ' |
Agreement termination date | ' | ' | ' | ' | '2016-10 |
Financing_Obligations_Manufact
Financing Obligations - Manufacturing and Supply - Additional Information (Detail) (USD $) | 12 Months Ended | 1 Months Ended | 3 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | ||||
Dec. 31, 2013 | Jun. 30, 2010 | 31-May-13 | Dec. 31, 2013 | Sep. 30, 2013 | 31-May-10 | Dec. 31, 2013 | 31-May-10 | Feb. 28, 2011 | Feb. 28, 2011 | |
Autoliv ASP, Inc. [Member] | Teva Pharmaceuticals USA, Inc. [Member] | Teva Pharmaceuticals USA, Inc. [Member] | Teva Pharmaceuticals USA, Inc. [Member] | Hercules Technology Growth Capital, Inc. [Member] | Hercules Technology Growth Capital, Inc. [Member] | Hercules Technology Growth Capital, Inc. [Member] | New Note [Member] | Original Note [Member] | ||
Prime Rate [Member] | Autoliv ASP, Inc. [Member] | Autoliv ASP, Inc. [Member] | ||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Borrowing under loan agreement | $15,000,000 | ' | ' | $5,000,000 | $10,000,000 | $15,000,000 | ' | ' | ' | ' |
Rate of interest for amount remaining | ' | ' | ' | ' | ' | 10.75% | ' | ' | ' | ' |
Prime rate plus percentage spread | ' | ' | ' | ' | ' | ' | ' | 6.50% | ' | ' |
Loan interest prime rate, maximum | ' | ' | ' | ' | ' | 14.00% | ' | ' | ' | ' |
Installment period of New Note | ' | ' | ' | ' | ' | '33 months | ' | ' | '48 months | ' |
Loan payment date | ' | ' | ' | ' | ' | ' | 31-Oct-13 | ' | ' | ' |
Contractual term of the warrant | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | ' |
Number of common shares, callable by warrants issued in the aggregate stock and warrants sale | ' | ' | ' | ' | ' | 37,639 | ' | ' | ' | ' |
Exercise price of warrant | ' | ' | ' | ' | ' | 26.9 | ' | ' | ' | ' |
Warrant expiration date | ' | ' | ' | ' | ' | 31-May-15 | ' | ' | ' | ' |
Estimated the fair value of warrant | ' | ' | ' | ' | ' | 921,000 | ' | ' | ' | ' |
Contractual term of the warrant | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | ' |
Risk-free interest rate | ' | ' | ' | ' | ' | 2.31% | ' | ' | ' | ' |
Expected volatility rate | ' | ' | ' | ' | ' | 84.00% | ' | ' | ' | ' |
Expected dividend yield | ' | ' | ' | ' | ' | 0.00% | ' | ' | ' | ' |
Amount of cash paid to Autoliv ASP, Inc. | ' | 4,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Value of unsecured promissory note issued | ' | ' | ' | ' | ' | ' | ' | ' | 2,800,000 | 4,000,000 |
Value of cancelled note | ' | ' | ' | ' | ' | ' | ' | ' | 4,000,000 | ' |
Debt instrument interest rate | ' | ' | 4.00% | ' | ' | ' | ' | ' | 8.00% | ' |
Periodic payment of New Note | ' | ' | ' | ' | ' | ' | ' | ' | 68,000 | ' |
Aggregate term loan advances | ' | ' | 25,000,000 | ' | ' | ' | ' | ' | ' | ' |
Debt instrument conversion price per share | ' | ' | $4.48 | ' | ' | ' | ' | ' | ' | ' |
Number of years from effective date to receive note advances | ' | ' | '2 years | ' | ' | ' | ' | ' | ' | ' |
Unamortized discount from financing obligation | ' | ' | ' | 3,112,000 | ' | ' | ' | ' | ' | ' |
Unamortized borrowing cost from financing obligation | ' | ' | ' | $1,293,000 | ' | ' | ' | ' | ' | ' |
Effective interest rate of notes | ' | ' | ' | 9.90% | 13.90% | ' | ' | ' | ' | ' |
Financing_Obligations_Long_Ter
Financing Obligations - Long Term Debt Payments by Year (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Debt Disclosure [Abstract] | ' |
2014 | $781 |
2015 | ' |
2016 | ' |
2017 | ' |
2018 | 15,000 |
Total | $15,781 |
License_Agreements_Additional_
License Agreements - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Oct. 05, 2011 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 15, 2012 | 31-May-13 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Aug. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2012 | |
Grupo Ferrer Internacional, S.A. [Member] | Grupo Ferrer Internacional, S.A. [Member] | Grupo Ferrer Internacional, S.A. [Member] | Grupo Ferrer Internacional, S.A. [Member] | Grupo Ferrer Internacional, S.A. [Member] | Grupo Ferrer Internacional, S.A. [Member] | Grupo Ferrer Internacional, S.A. [Member] | Grupo Ferrer Internacional, S.A. [Member] | Teva Pharmaceuticals USA, Inc. [Member] | Teva Pharmaceuticals USA, Inc. [Member] | Teva Pharmaceuticals USA, Inc. [Member] | Teva Pharmaceuticals USA, Inc. [Member] | Cypress Bioscience, Inc. [Member] | Cypress Bioscience, Inc. [Member] | Cypress Bioscience, Inc. [Member] | ||||||||||||
Allegro stockholders [Member] | Allegro stockholders [Member] | Private Placement [Member] | Allegro stockholders [Member] | |||||||||||||||||||||||
License Agreements [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non-refundable upfront payment received | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $5,000,000 | ' | ' |
Revenue under agreement | 1,309,000 | 2,166,000 | 43,635,000 | 729,000 | 729,000 | 729,000 | 728,000 | 1,884,000 | 47,839,000 | 4,070,000 | 5,660,000 | ' | ' | 2,915,000 | 2,811,000 | 625,000 | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 1,259,000 |
Deferred revenue | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,101,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' |
Upfront cash received under collaborative arrangement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,000,000 | ' | ' | ' | ' | ' | 40,000,000 | ' | ' | ' | ' | ' |
Payments to former stockholders under collaborative arrangement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 312,500 | 5,000,000 | ' | ' | ' | ' | 10,313,000 | ' | ' | ' |
Eligible receipt of additional milestone payments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 51,000,000 | ' | 48,000,000 | ' | ' | ' | ' | ' | ' | 195,000,000 | ' | ' | ' | ' | ' |
License agreement contractual terms | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'Until the later of the last to expire patent covering ADASUVE in such country or 12 years after first commercial sale | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
License agreement term period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '12 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate purchase price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 241,936 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase of common stock, value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock price, per share | $4.73 | ' | ' | ' | ' | ' | ' | ' | $4.73 | ' | ' | ' | $12.40 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Premium on the fair value from sale of stock, classified as deferred revenue | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,452,000 | ' | ' | ' | ' | ' | ' | ' |
Estimated performance period of agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '4 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Upfront cash received under collaborative arrangement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,250,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate term loan advances | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25,000,000 | ' | ' | ' | ' | ' | ' |
Number of years from effective date to receive note advances | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years | ' | ' | ' | ' | ' | ' |
Expected volatility rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 70.00% | ' | ' | ' | ' | ' | ' |
Estimated debt yield | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15.00% | ' | ' | ' | ' | ' | ' |
Fair value of right-to-borrow note | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,800,000 | ' | ' | ' | ' | ' | ' |
Interest expense amortization period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years | ' | ' | ' | ' | ' | ' |
Proceeds from financing obligations | ' | ' | ' | ' | ' | ' | ' | ' | 15,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15,000,000 | ' | ' | ' | ' | ' |
Unamortized borrowing cost from financing obligation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,293,000 | ' | ' | ' | ' | ' |
Interest expense under right-to-borrow note | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 752,000 | ' | ' | ' | ' | ' |
Eligible receipt of additional payments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $195,000,000 | ' | ' | ' | ' |
Warrants_Additional_Informatio
Warrants - Additional Information (Detail) | Dec. 31, 2013 | Dec. 31, 2012 | 6-May-11 | Aug. 10, 2010 | Feb. 23, 2012 | 31-May-10 |
Registered Direct Equity Issuances [Member] | Registered Direct Equity Issuances [Member] | Underwritten Public Offering [Member] | Hercules Technology Growth Capital, Inc. [Member] | |||
Class of Warrant or Right [Line Items] | ' | ' | ' | ' | ' | ' |
Number of common shares, callable by warrants issued in the aggregate stock and warrants sale | ' | ' | 417,445 | 334,258 | 4,400,000 | 37,639 |
Exercise price of warrant | ' | ' | 17.55 | 33 | 5 | 26.9 |
Warrant expiration date | ' | ' | 6-May-16 | ' | 23-Feb-17 | 31-May-15 |
Contractual term of the warrant | ' | ' | ' | '5 years | ' | '5 years |
Issuance of common stock in the aggregate stock and warrants sale | 17,279,804 | 15,767,525 | 1,192,703 | 668,518 | 4,400,000 | ' |
Securities sold as units, description of each unit composition | ' | ' | ' | 'Each unit consisting of (i) one share of common stock and (ii) a warrant to purchase 0.5 of a share of common stock | ' | ' |
Number of common shares, callable by each warrants issued in the aggregate stock and warrants sale | ' | ' | ' | 0.5 | ' | ' |
Securities sold as units, price per unit | ' | ' | ' | 27 | ' | ' |
Equity_Incentive_Plans_Additio
Equity Incentive Plans - Additional Information (Detail) (USD $) | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | 30-May-13 | Jul. 31, 2011 | 31-May-08 | Dec. 31, 2013 | Dec. 31, 2005 | Dec. 31, 2013 | 30-May-13 | Dec. 31, 2013 | Dec. 31, 2005 | Feb. 22, 2011 | Dec. 31, 2011 | Jan. 21, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2005 | Dec. 31, 2013 | |
2005 Equity Incentive Plan [Member] | 2005 Equity Incentive Plan [Member] | 2005 Equity Incentive Plan [Member] | 2005 Equity Incentive Plan [Member] | 2005 Equity Incentive Plan [Member] | 2005 Equity Incentive Plan [Member] | 2005 Non-Employee Director's Stock Option Plan [Member] | 2005 Non-Employee Director's Stock Option Plan [Member] | 2005 Non-Employee Director's Stock Option Plan [Member] | 2011 Employee Stock Option Exchange Program [Member] | 2011 Employee Stock Option Exchange Program [Member] | 2011 Employee Stock Option Exchange Program [Member] | 2011 Employee Stock Option Exchange Program [Member] | 2011 Employee Stock Option Exchange Program [Member] | 2011 Employee Stock Option Exchange Program [Member] | 2005 Employee Stock Purchase Plan [Member] | 2005 Employee Stock Purchase Plan [Member] | 2005 Employee Stock Purchase Plan [Member] | 2005 Employee Stock Purchase Plan [Member] | 2005 Employee Stock Purchase Plan [Member] | ||||
Restricted Stock Units [Member] | Minimum [Member] | Restricted Stock Units [Member] | Restricted Stock Units [Member] | Restricted Stock Units [Member] | Forecast [Member] | ||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Authorized for issuance thereunder share of common stock | ' | ' | ' | ' | ' | ' | ' | 108,879 | ' | ' | ' | 25,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50,000 | ' |
Effective date of Equity Incentive Plan 2005 and closing date of company's initial public offering | ' | ' | ' | ' | ' | ' | ' | 8-Mar-06 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vesting period for stock options and restricted stock units | ' | ' | ' | ' | ' | ' | ' | '4 years | ' | ' | ' | '4 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum contractual term for issuing new grants stock options and restricted stock units | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | '10 years | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restricted stock units granted to non-employee directors | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increase in annual reserve by percentage of shares of common stock | ' | ' | ' | ' | ' | ' | ' | 2.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | ' | ' | ' | ' |
Increase in annual reserve by shares of common stock | ' | ' | ' | ' | ' | ' | ' | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Authorized shares of common stock for issuance, Number of Shares | 2,319,812 | 120,000 | 857,500 | 2,200,000 | 750,000 | 150,000 | 100,000 | ' | ' | 200,000 | 58,751 | ' | ' | ' | ' | ' | ' | ' | 75,000 | ' | ' | ' | ' |
Common stock exercise price, per share | $7.53 | $12.24 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $23.70 | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares under the exchange program | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 212,843 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock exercise price under the exchange program, low range | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $23.80 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock exercise price under the exchange program, upper range | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $117 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, issued with exercise prices | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 80,890 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercise price of new option | $4.49 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $12.30 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
New Options vested in shares, percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 33.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
New Options balance of shares vesting in equal monthly installments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '24 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Decrease in common stock to outstanding stock option | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 131,953 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Shares, Exercisable | 607,255 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average exercise price exercisable | $15.22 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total intrinsic value of options exercised | $13,000 | $0 | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sale of common stock, value | $4.73 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total value of options exercised restricted stock units | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $75,000 | $1,443,000 | $272,000 | ' | ' | ' | ' | ' |
Shares available for issuance | ' | ' | ' | ' | ' | ' | 950,396 | ' | ' | ' | 166,249 | ' | ' | ' | ' | ' | ' | ' | 54,494 | 18,409 | 24,998 | ' | ' |
Shares authorized for issuance include annual reserve | ' | ' | ' | ' | ' | ' | 119,812 | ' | ' | ' | 2,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Employee stock purchase plan fixed offering period historically | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '24 months | ' |
Employees purchase common stock on their enrollment date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 85.00% | ' |
Employee stock purchase plan current offering period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '6 months | ' | ' | ' | ' |
Shares available for issuance under ESPP | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 75,000 | 72,136 | 25,000 | ' | 75,000 |
Weighted average price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $3.67 | $4.44 | $8.10 | ' | ' |
Shares available for issuance under the ESPP | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 74,632 | ' | ' | ' | ' |
Equity_Incentive_Plans_Summary
Equity Incentive Plans - Summary of Option Activity under Company's Share-Based Compensation Plans (Detail) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' |
Balance as of January 1, 2013, Number of Shares | 1,038,245 |
Options granted, Number of Shares | 1,369,030 |
Options exercised, Number of Shares | -10,317 |
Options cancelled, Number of Shares | -275,454 |
Balance as of December 31, 2013, Number of Shares | 2,121,504 |
Balance as of January 1, 2013, Weighted Average Exercise Price | $12.24 |
Options granted, Weighted Average Exercise Price | $4.49 |
Options exercised, Weighted Average Exercise Price | $3.48 |
Options cancelled, Weighted Average Exercised Price | $10.31 |
Balance as of December 31, 2013, Weighted Average Exercise Price | $7.53 |
Equity_Incentive_Plans_Informa
Equity Incentive Plans - Information Regarding Stock Options Outstanding (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Number of Shares, Outstanding | 2,121,504 | 1,038,245 |
Remaining Contractual Life (In Years), Outstanding | '8 years 5 months 5 days | ' |
Aggregate Intrinsic Value, Outstanding | $809,000 | ' |
Number of Shares, Exercisable | 607,255 | ' |
Remaining Contractual Life (In Years), Exercisable | '6 years 7 months 13 days | ' |
Aggregate Intrinsic Value, Exercisable | 168,000 | ' |
$3.32 - $3.50 [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Exercise Price, Lower Limit | $3.32 | ' |
Exercise Price, Upper Limit | $3.50 | ' |
Number of Shares, Outstanding | 384,882 | ' |
Remaining Contractual Life (In Years), Outstanding | '8 years 6 months 11 days | ' |
Aggregate Intrinsic Value, Outstanding | 485,000 | ' |
Number of Shares, Exercisable | 132,783 | ' |
Remaining Contractual Life (In Years), Exercisable | '8 years 5 months 23 days | ' |
Aggregate Intrinsic Value, Exercisable | 167,000 | ' |
$4.08 - $4.41 [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Exercise Price, Lower Limit | $4.08 | ' |
Exercise Price, Upper Limit | $4.41 | ' |
Number of Shares, Outstanding | 154,100 | ' |
Remaining Contractual Life (In Years), Outstanding | '9 years 4 months 10 days | ' |
Aggregate Intrinsic Value, Outstanding | 59,000 | ' |
Number of Shares, Exercisable | ' | ' |
Remaining Contractual Life (In Years), Exercisable | '0 years | ' |
Aggregate Intrinsic Value, Exercisable | ' | ' |
$4.42 - $4.42 [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Exercise Price, Lower Limit | $4.42 | ' |
Exercise Price, Upper Limit | $4.42 | ' |
Number of Shares, Outstanding | 788,500 | ' |
Remaining Contractual Life (In Years), Outstanding | '9 years 2 months 27 days | ' |
Aggregate Intrinsic Value, Outstanding | 244,000 | ' |
Number of Shares, Exercisable | ' | ' |
Remaining Contractual Life (In Years), Exercisable | '0 years | ' |
Aggregate Intrinsic Value, Exercisable | ' | ' |
$4.44 - $12.30 [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Exercise Price, Lower Limit | $4.44 | ' |
Exercise Price, Upper Limit | $12.30 | ' |
Number of Shares, Outstanding | 402,350 | ' |
Remaining Contractual Life (In Years), Outstanding | '7 years 11 months 12 days | ' |
Aggregate Intrinsic Value, Outstanding | 21,000 | ' |
Number of Shares, Exercisable | 95,744 | ' |
Remaining Contractual Life (In Years), Exercisable | '3 years 3 months 22 days | ' |
Aggregate Intrinsic Value, Exercisable | 1,000 | ' |
$12.70 - $117.00 [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Exercise Price, Lower Limit | $12.70 | ' |
Exercise Price, Upper Limit | $117 | ' |
Number of Shares, Outstanding | 391,672 | ' |
Remaining Contractual Life (In Years), Outstanding | '6 years 9 months 26 days | ' |
Aggregate Intrinsic Value, Outstanding | ' | ' |
Number of Shares, Exercisable | 378,728 | ' |
Remaining Contractual Life (In Years), Exercisable | '6 years 9 months 18 days | ' |
Aggregate Intrinsic Value, Exercisable | ' | ' |
Equity_Incentive_Plans_Informa1
Equity Incentive Plans - Information with Respect to Unvested Share Units of Restricted Stock Units (Detail) (Restricted Stock Units [Member], USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Restricted Stock Units [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Granted, Number of Shares | 590,495 | ' | ' |
Released, Number of Shares | -17,795 | ' | ' |
Canceled, Number of Shares | -51,650 | ' | ' |
Outstanding at December 31, 2013, Number of Shares | 521,050 | ' | ' |
Outstanding at January 1, 2013, Weighted Average Grant-Date Fair Value | ' | ' | ' |
Granted, Weighted Average Grant-Date Fair Value | $4.67 | $4.96 | $13.30 |
Released, Weighted Average Grant-Date Fair Value | $4.20 | ' | ' |
Canceled, Weighted Average Grant-Date Fair Value | $4.68 | ' | ' |
Outstanding at December 31, 2013, Weighted Average Grant-Date Fair Value | $4.68 | ' | ' |
Equity_Incentive_Plans_Authori
Equity Incentive Plans - Authorized Shares of Common Stock for Issuance (Detail) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ' | ' |
Authorized shares of common stock for issuance, Number of Shares | 2,319,812 | 120,000 | 857,500 |
401k_Plan_Additional_Informati
401(k) Plan - Additional Information (Detail) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Schedule Of Sale Of Subsidiary [Abstract] | ' |
Employee contribution matched | $96,000 |
Income_Taxes_Summarized_Report
Income Taxes - Summarized Report of Domestic Federal Statutory Tax Rates to Loss before Income Taxes from Operations (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Federal tax benefit at statutory rate | ($13,469) | ($9,512) | ($13,781) |
State tax benefit net of federal effect | -2,311 | -1,632 | -2,365 |
Research and development credits | -532 | -254 | -1,669 |
Other permanent differences | 14 | -30 | 11 |
Share-based compensation | 650 | 1,040 | 902 |
Adjustment to basis in subsidiary | 15,899 | -757 | 1,593 |
Change in valuation allowance | 251 | 11,016 | 15,233 |
Other | ' | 129 | 76 |
Total | ' | ' | ' |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Income Tax Disclosure [Line Items] | ' | ' | ' |
Effective tax rate of deferred tax assets | 40.00% | ' | ' |
Increase in valuation allowances | ($272,000) | $10,552,000 | $14,628,000 |
Deferred tax asset | 0 | ' | ' |
Minimum [Member] | ' | ' | ' |
Income Tax Disclosure [Line Items] | ' | ' | ' |
Various tax years | '2001 | ' | ' |
Maximum [Member] | ' | ' | ' |
Income Tax Disclosure [Line Items] | ' | ' | ' |
Various tax years | '2013 | ' | ' |
Internal Revenue Service (IRS) [Member] | ' | ' | ' |
Income Tax Disclosure [Line Items] | ' | ' | ' |
Net operating loss carryforwards | 290,060,000 | ' | ' |
Internal Revenue Service (IRS) [Member] | Research [Member] | ' | ' | ' |
Income Tax Disclosure [Line Items] | ' | ' | ' |
Research and development tax credit carryforwards | 10,073,000 | ' | ' |
Net operating loss and tax credit carryforwards expiration date | '2020 | ' | ' |
State research and development [Member] | ' | ' | ' |
Income Tax Disclosure [Line Items] | ' | ' | ' |
Net operating loss carryforwards | 284,136,000 | ' | ' |
Net operating loss and tax credit carryforwards expiration date | '2014 | ' | ' |
Deferred tax assets attributable to certain employee stock option deductions | 1,393,000 | ' | ' |
State research and development [Member] | Research [Member] | ' | ' | ' |
Income Tax Disclosure [Line Items] | ' | ' | ' |
Research and development tax credit carryforwards | $4,904,000 | ' | ' |
Income_Taxes_Report_of_Company
Income Taxes - Report of Company's Deferred Tax Assets (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Income Tax Disclosure [Abstract] | ' | ' |
Federal and state net operating loss carryforwards | $114,643 | $113,216 |
Federal and state research and development credit carryforwards | 14,977 | 14,611 |
Accrued liabilities | 8,085 | 6,073 |
Capitalized research and development costs | 13,845 | 18,610 |
Other | 2,648 | 1,960 |
Total deferred tax assets | 154,198 | 154,470 |
Valuation allowance | -154,198 | -154,470 |
Net deferred tax assets | ' | ' |
Income_Taxes_Reconciliation_Re
Income Taxes - Reconciliation Report of Beginning and Ending Amount of Unrecognized Tax Benefits (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Beginning Balance | $3,014 | $2,934 | $2,958 |
Additions based on tax positions taken during a prior period | ' | ' | ' |
Reductions based on tax positions taken during a prior period | -231 | -16 | -277 |
Additions based on tax positions taken during the current period | 36 | 96 | 253 |
Reductions based on tax positions taken during the current period | ' | ' | ' |
Reductions related to settlement of tax matters | ' | ' | ' |
Reductions related to a lapse of applicable statute of limitations | ' | ' | ' |
Ending Balance | $2,819 | $3,014 | $2,934 |
Quarterly_Results_Summary_of_Q
Quarterly Results - Summary of Quarterly Results (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Quarterly Financial Information Disclosure [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | $1,309 | $2,166 | $43,635 | $729 | $729 | $729 | $728 | $1,884 | $47,839 | $4,070 | $5,660 |
Income/(Loss) from operations | -9,357 | -10,339 | 31,069 | -9,603 | -10,900 | -6,393 | -7,186 | -4,393 | 1,770 | -28,872 | -34,368 |
Net loss | ($5,692) | ($12,412) | ($799) | ($20,712) | ($10,273) | ($6,921) | ($6,957) | ($3,827) | ($39,615) | ($27,978) | ($40,531) |
Basic and diluted net loss per share | ($0.33) | ($0.72) | ($0.05) | ($1.31) | ($0.65) | ($0.52) | ($0.58) | ($0.42) | ($2.38) | ($2.24) | ($5.97) |
Subsequent_Events_Additional_I
Subsequent Events - Additional Information (Detail) (USD $) | 12 Months Ended | 3 Months Ended | 1 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | 31-May-13 | Mar. 31, 2014 | Mar. 31, 2014 | |
Teva Pharmaceuticals USA, Inc. [Member] | Teva Pharmaceuticals USA, Inc. [Member] | Teva Pharmaceuticals USA, Inc. [Member] | Subsequent Event [Member] | Subsequent Event [Member] | ||
Teva Pharmaceuticals USA, Inc. [Member] | ||||||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' | ' |
Proceeds from financing obligations | $15,000,000 | $5,000,000 | $10,000,000 | ' | ' | $5,000,000 |
Private placement to qualified institutional buyers and accredited institutional investors | ' | ' | ' | ' | 45,000,000 | ' |
Warrants to purchase of common stock | ' | ' | ' | ' | 345,661 | ' |
Exercise price of warrants | ' | ' | ' | ' | 0.01 | ' |
Contractual term of the warrant | ' | ' | ' | ' | '5 years | ' |
Percentage of interest rate payable to investor | ' | ' | ' | 4.00% | 12.25% | ' |
Interest reserve for future payments | ' | ' | ' | ' | 6,900,000 | ' |
Notes redemption starting date | ' | ' | ' | ' | 18-Mar-16 | ' |
Notes redemption ending date | ' | ' | ' | ' | 19-Mar-19 | ' |
Net proceeds from notes before establishment of interest reserve | ' | ' | ' | ' | $41,000,000 | ' |