Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Mar. 02, 2015 | Jun. 30, 2014 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | ALXA | ||
Entity Registrant Name | Alexza Pharmaceuticals Inc. | ||
Entity Central Index Key | 1344413 | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 19,404,697 | ||
Entity Public Float | $79,369,443 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $15,200 | $17,306 |
Marketable securities | 19,574 | 8,578 |
Receivables | 173 | 129 |
Inventory | 3,729 | 3,447 |
Prepaid expenses and other current assets | 3,109 | 1,453 |
Total current assets | 41,785 | 30,913 |
Property and equipment, net | 13,953 | 14,991 |
Restricted cash | 2,757 | |
Other assets | 3,065 | 1,168 |
Total assets | 61,560 | 47,072 |
Current liabilities: | ||
Accounts payable | 1,799 | 3,789 |
Accrued clinical trial liabilities | 875 | 178 |
Other accrued liabilities | 4,693 | 4,736 |
Current portion of contingent consideration liability | 1,700 | 2,500 |
Financing obligations | 780 | |
Current portion of deferred revenues | 2,450 | 2,915 |
Total current liabilities | 11,517 | 14,898 |
Deferred rent | 4,781 | 6,405 |
Noncurrent portion of contingent consideration liability | 29,100 | 36,700 |
Noncurrent portion of deferred revenues | 3,063 | 2,185 |
Noncurrent portion of financing obligations | 63,767 | 10,744 |
Other noncurrent liabilities | 985 | 115 |
Commitments and contingencies | ||
Stockholders' (deficit): | ||
Preferred stock, $0.0001 par value, 5,000,000 shares authorized at December 31, 2014 and 2013; no shares issued and outstanding at December 31, 2014 or 2013 | ||
Common stock, $0.0001 par value; 200,000,000 shares authorized at December 31, 2014 and 2013, respectively; 19,404,697 and 17,279,804 shares issued and outstanding at December 31, 2014 and 2013, respectively | 2 | 2 |
Additional paid-in capital | 359,308 | 350,250 |
Accumulated other comprehensive (loss) income | -3 | 1 |
Accumulated deficit | -410,960 | -374,228 |
Total stockholders' deficit | -51,653 | -23,975 |
Total liabilities and stockholders' deficit | $61,560 | $47,072 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
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 | 19,404,697 | 17,279,804 |
Common stock, shares outstanding | 19,404,697 | 17,279,804 |
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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenue | |||
Collaboration revenue | $2,997 | $46,965 | $4,070 |
Product sales | 2,564 | 874 | 0 |
Total revenues | 5,561 | 47,839 | 4,070 |
Operating expenses: | |||
Cost of goods sold | 15,925 | 11,209 | 0 |
Research and development | 13,748 | 19,082 | 21,849 |
General and administrative | 13,344 | 15,778 | 11,093 |
Total operating expenses | 43,017 | 46,069 | 32,942 |
Loss from operations | -37,456 | 1,770 | -28,872 |
Change in fair value of contingent consideration liability | 8,149 | -39,913 | 1,900 |
Interest and other income/expense, net | 13 | 26 | 420 |
Interest expense | -7,438 | -1,498 | -1,426 |
Net loss | -36,732 | -39,615 | -27,978 |
Other Comprehensive Loss | |||
Change in unrealized (loss) income on marketable securities | -4 | 1 | 0 |
Comprehensive loss | ($36,736) | ($39,614) | ($27,978) |
Net loss per share - basic and diluted | ($2.07) | ($2.38) | ($2.24) |
Shares used to compute net loss per share - basic and diluted | 17,784 | 16,669 | 12,472 |
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, 2011 | ($9,692) | $1 | $296,942 | ($306,635) | |
Beginning 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 our 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 | |||
Change in unrealized gain/loss on marketable securities | 0 | ||||
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 | ||||
Issuance of common stock for cash under our 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 | |||
Change in unrealized gain/loss on marketable securities | 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 | ||||
Issuance of common stock and common stock warrants for cash | 5,600 | 5,600 | |||
Issuance of common stock and common stock warrants for cash, shares | 2,000,000 | ||||
Issuance of common stock for cash under the Company's Equity Incentive Plan | 79 | 79 | |||
Issuance of common stock for cash under the Company's Equity Incentive Plan, Shares | 22,842 | 22,842 | |||
Issuance of common stock for cash under our Employee Stock Purchase Plan | 199 | 199 | |||
Issuance of common stock for cash under the Company's Employee Stock Purchase Plan, shares | 70,226 | ||||
Issuance of common stock upon vesting of restricted stock units | 31,825 | ||||
Compensation expense related to fair value of employee share based awards | 427 | 427 | |||
Beneficial conversion feature of convertible debt | 1,032 | 1,032 | |||
Issuance of common stock warrant | 1,721 | 1,721 | |||
Change in unrealized gain/loss on marketable securities | -4 | -4 | |||
Net loss | -36,732 | -36,732 | |||
Ending Balance at Dec. 31, 2014 | ($51,653) | $2 | $359,308 | ($3) | ($410,960) |
Ending Balance, shares at Dec. 31, 2014 | 19,404,697 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities: | |||
Net loss | ($36,732) | ($39,615) | ($27,978) |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Share-based compensation expense | 427 | 3,371 | 5,001 |
Change in fair value of contingent consideration liability | -8,149 | 39,913 | -1,900 |
Recognition of right to borrow asset | -2,800 | ||
Amortization of debt discount and deferred interest | 2,216 | 1,079 | 447 |
Amortization of discount on available-for-sale securities | 163 | 1 | |
Depreciation | 3,393 | 3,323 | 4,336 |
Loss/(gain) on disposal of property and equipment | 8 | -15 | -415 |
Changes in operating assets and liabilities: | |||
Receivables | -44 | -129 | 10,000 |
Inventory | -282 | -3,447 | |
Prepaid expenses and other current assets | -822 | -601 | -203 |
Other assets | 200 | ||
Accounts payable | -1,990 | 1,642 | -1,456 |
Accrued clinical trial expense and other accrued liabilities | 654 | 1,122 | 559 |
Deferred revenues | 413 | -2,916 | -2,618 |
Other liabilities | -754 | -1,539 | -4,215 |
Net cash used in operating activities | -41,499 | -612 | -18,241 |
Cash flows from investing activities: | |||
Purchase of available-for-sale securities | -42,003 | -19,227 | |
Maturities of available-for-sale securities | 30,840 | 10,650 | 2,000 |
Purchases of property and equipment | -2,363 | -1,784 | -452 |
Proceeds from disposal of property and equipment | 16 | 425 | |
Net cash (used in) provided by investing activities | -13,526 | -10,345 | 1,973 |
Cash flows from financing activities: | |||
Proceeds from issuance of common stock, common stock warrants and exercise of stock options and stock purchase rights | 5,878 | 6,583 | 35,242 |
Payment of contingent payment to Symphony Allegro Holdings, LLC | -251 | -10,313 | -5,000 |
Change in restricted cash | -2,757 | 5,051 | -5,051 |
Proceeds from financing obligations | 50,830 | 15,000 | |
Payments of financing obligations | -781 | -5,773 | -6,110 |
Net cash provided by financing activities | 52,919 | 10,548 | 19,081 |
Net (decrease) increase in cash and cash equivalents | -2,106 | -409 | 2,813 |
Cash and cash equivalents at beginning of period | 17,306 | 17,715 | 14,902 |
Cash and cash equivalents at end of period | 15,200 | 17,306 | 17,715 |
Supplemental disclosures of cash flow information | |||
Cash paid for interest | 4,169 | 863 | 979 |
Non cash investing and financing activities: | |||
Debt discount related to Teva Note | 4,405 | ||
Value of warrants issued with royalty securitization financing | 1,721 | ||
Value of the beneficial conversion feature related to borrowing against Teva Note | 1,032 | 3,112 | |
Value of right to borrow asset reclassified as debt discount | $2,800 |
The_Company
The Company | 12 Months Ended |
Dec. 31, 2014 | |
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. | |
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). | |
On October 27, 2014 we entered into an amendment to the Ferrer Agreement (See Note 8). Ferrer and we agreed to eliminate future potential milestone payments in exchange for Ferrer’s purchase of $8,000,000 of our common stock. Ferrer purchased 2,000,000 shares of our common stock for $4.00 per share. We classified $2,400,000 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). | |
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 our common stock on July 23, 2012. In August and September 2012, we utilized a total of $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. |
Need_to_Raise_Additional_Capit
Need to Raise Additional Capital | 12 Months Ended |
Dec. 31, 2014 | |
Text Block [Abstract] | |
Need to Raise Additional Capital | 2. Need to Raise Additional Capital |
We have incurred significant losses from operations since inception and expect losses to continue for the foreseeable future. As of December 31, 2014, we had cash, cash equivalents, marketable securities and restricted cash (see Note 3) of $37.5 million and working capital of $30.3 million. Our operating and capital plans call for cash expenditures to exceed these amounts for the next twelve months. We plan to raise additional capital to fund our operations and to develop our product candidates. We plan to finance our operations through the sale of equity securities, debt arrangements or partnership or licensing collaborations. Such funding may not be available or may be on terms that are not favorable to us. Our inability to raise capital as and when needed could have a negative impact on our financial condition and our ability to continue as a going concern. If we become unable to continue as a going concern, we may have to liquidate our assets, and might realize significantly less than the values at which they are carried on our financial statements, and stockholders may lose all or part of their investment in our common stock. Based on our available cash resources and our expected cash usage, we estimate that we have sufficient capital resources to meet our anticipated cash needs into the fourth quarter of 2015. | |
The accompanying financial statements have been prepared assuming we will continue to operate as a going concern, which contemplates the realization of assets and the settlement of liabilities in the normal course of business. The consolidated financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts of liabilities that may result from uncertainty related to our ability to continue as a going concern. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||
Summary of Significant Accounting Policies | 3. 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, 2014 and 2013 (in thousands): | |||||||||||||||||
December 31, 2014 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets | |||||||||||||||||
Money market funds | $ | 12,674 | $ | — | $ | — | $ | 12,674 | |||||||||
Corporate debt securities | — | 24,617 | — | 24,617 | |||||||||||||
Total assets | $ | 12,674 | $ | 24,617 | $ | — | $ | 37,291 | |||||||||
Liabilities | |||||||||||||||||
Contingent consideration liability | $ | — | $ | — | $ | 30,800 | $ | 30,800 | |||||||||
Total liabilities | $ | — | $ | — | $ | 30,800 | $ | 30,800 | |||||||||
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 | |||||||||
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, 2014, 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 then current estimated WACC. The change in discount rate increased the net loss for 2013 by approximately $3,600,000 or $0.22 per share. In 2014, we increased the discount rate from 16.5% to 20% to reflect our current estimated WACC. The change in discount rate decreased the net loss for 2014 by approximately $6.4 million or $0.36 per share. The increase in our discount rate reflects the impact of our current financial condition, market capitalization and our estimated increase in borrowing costs. | |||||||||||||||||
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, 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 discount rate 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. | |||||||||||||||||
During the year ended December 31, 2014, we modified the assumptions associated with the amount and timing of milestones and royalties projected for ADASUVE and AZ-002 and the probability that AZ-002 would be licensed or sold by us. These changes in assumptions, the change in the discount rate and the effects of the passage of a year on the present value computation resulted in a decrease to the net loss of $8,149,000, or $0.46 per share, for the year ended December 31, 2014. | |||||||||||||||||
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, 2014 and 2013 (in thousands). | |||||||||||||||||
December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
(In thousands) | |||||||||||||||||
Beginning balance | $ | 39,200 | $ | 9,600 | |||||||||||||
Payments made | (251 | ) | (10,313 | ) | |||||||||||||
Adjustments to fair value measurement | (8,149 | ) | 39,913 | ||||||||||||||
Ending balance | $ | 30,800 | $ | 39,200 | |||||||||||||
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. The $251,000 of aggregate payment in 2014 was primarily the results of our receipt the $1,000,000 milestone payment from Ferrer associated with the launch of ADASUVE in Spain. | |||||||||||||||||
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 our 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, 2014 and 2013, the estimated fair value of our financing obligations was $52,075,000 and $9,342,000, respectively and had book values of $63,767,000 and $11,524,000, 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 estimated 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. In addition, the fair value of our royalty securitization financing will be affected by the timing and amount of royalties and milestones earned under the Teva Agreement. | |||||||||||||||||
Concentration of Credit Risk | |||||||||||||||||
Financial instruments that potentially subject us to credit risk consist of cash, cash equivalents, marketable securities and restricted cash 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. | |||||||||||||||||
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 March 2014, from the proceeds from the Royalty Securitization Financing (see Note 7), we established a $6,890,000 interest reserve account, which is classified as a noncurrent asset, to cover any potential shortfall in royalties and milestones received from Teva and quarterly interest payments. At December 31, 2014, $2,757,000 remained in the interest reserve account. | |||||||||||||||||
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, 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, 2014, we have not recognized any long-lived asset impairment. | |||||||||||||||||
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 and beginning in the first quarter of 2014, we have royalty revenue. | |||||||||||||||||
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 is 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 (in thousands): | |||||||||||||||||
December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Raw materials | $ | 3,677 | $ | 3,044 | |||||||||||||
Work in process | — | — | |||||||||||||||
Finished goods | 52 | 403 | |||||||||||||||
Total inventory | $ | 3,729 | $ | 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 our 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. 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, 2014, 2013 and 2012, the weighted average fair value per share of the employee stock options, restricted stock units and stock purchase rights granted were: | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Stock Options | $ | 2.83 | $ | 3.46 | $ | 2.6 | |||||||||||
Restricted Stock Units | — | 4.67 | 4.96 | ||||||||||||||
Stock Purchase Rights | 1.32 | 1.76 | 3.86 | ||||||||||||||
The estimated grant date fair values of the stock options 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, 2014, 2013 and 2012, we calculated the estimated grant date fair value of stock options and stock purchase rights using the following assumptions: | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Stock Option Plans | |||||||||||||||||
Weighted-average expected term | 5.0 Years | 5.0 Years | 5.0 Years | ||||||||||||||
Expected volatility | 83% | 99% | 98% | ||||||||||||||
Risk-free interest rate | 1.66% | 0.86% | 0.62% | ||||||||||||||
Dividend yield | 0% | 0% | 0% | ||||||||||||||
Employee Stock Purchase Plan | |||||||||||||||||
Weighted-average expected term | 0.5 Years | 0.5 Years | 0.6 Years | ||||||||||||||
Expected volatility | 61% | 80% | 98% | ||||||||||||||
Risk-free interest rate | 0.86% | 0.70% | 0.14% | ||||||||||||||
Dividend yield | 0% | 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, 2014, there was $3,020,000, $334,000 and $13,000 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 2.7 years, 2.1 years and 0.3 years, respectively. | |||||||||||||||||
New Accounting Pronouncements | |||||||||||||||||
In August 2014, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) No. 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU 2014-15”). ASU 2014-15 requires management to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. In doing so, companies will have reduced diversity in the timing and content of footnote disclosures than under the current guidance. ASU 2014-15 is effective for us in the first quarter of 2016 with early adoption permitted. We do not believe the impact of adopting ASU 2014-15 on our results of operations or financial position. | |||||||||||||||||
In May 2014 the Financial Accounting Standards Board, or FASB, issued the Accounting Standards Update, or ASU, No. 2014-09, Revenue from Contracts with Customers (Topic 606), that will supersede nearly all existing revenue recognition guidance under US GAAP. The core principle of the guidance is that an entity should recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The standard will be effective for public entities for annual and interim periods beginning after December 15, 2016. | |||||||||||||||||
Entities can choose to apply the standard using either the full retrospective approach or a modified retrospective approach. Entities electing the full retrospective adoption will apply the standard to each period presented in the financial statements. This means that entities will have to apply the new guidance as if it had been in effect since the inception of all its contracts with customers presented in the financial statements. Entities that elect the modified retrospective approach will apply the guidance retrospectively only to the most current period presented in the financial statements. This means that entities will have to recognize the cumulative effect of initially applying the new standard as an adjustment to the opening balance of retained earnings at the date of initial application. The new revenue standard will be applied to contracts that are in progress at the date of initial application. | |||||||||||||||||
We plan to adopt the new standard on January 1, 2017. We have not yet evaluated which adoption method we plan to use or the potential effect the new standard will have on our consolidated financial statements. |
Net_Loss_per_Share
Net Loss per Share | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Earnings Per Share [Abstract] | |||||||||||||
Net Loss per Share | 4. Net Loss per Share | ||||||||||||
Basic and diluted net loss per share is calculated by dividing 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 2014, 2013 or 2012. 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, 2014, 2013 and 2012 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, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Outstanding stock options | 2,429 | 1,657 | 840 | ||||||||||
Unvested restricted stock units | 371 | 315 | 120 | ||||||||||
Warrants to purchase common stock | 6,561 | 6,462 | 5,582 | ||||||||||
Convertible debt | 4,803 | 651 | — |
Cash_Equivalents_and_Marketabl
Cash Equivalents and Marketable Securities | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Cash and Cash Equivalents [Abstract] | |||||||||||||
Cash Equivalents and Marketable Securities | 5. 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, 2014 and 2013 are as follows (in thousands): | |||||||||||||
December 31, 2014 | Amortized | Fair | Unrealized | ||||||||||
Cost | Value | Gain/ | |||||||||||
(Loss) | |||||||||||||
Money market funds | $ | 12,674 | $ | 12,674 | $ | — | |||||||
Corporate debt securities | 24,620 | 24,617 | (3 | ) | |||||||||
Total | 37,294 | 37,291 | (3 | ) | |||||||||
Less amounts classified as cash equivalents | (17,717 | ) | (17,717 | ) | — | ||||||||
Total marketable securities | $ | 19,577 | $ | 19,574 | $ | (3 | ) | ||||||
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 marketable securities | $ | 8,577 | $ | 8,578 | $ | 1 | |||||||
Balance_Sheet_Components
Balance Sheet Components | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||
Balance Sheet Components | 6. Balance Sheet Components | ||||||||
Property and equipment consisted of the following (in thousands): | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Lab equipment | $ | 9,850 | $ | 9,035 | |||||
Manufacturing equipment | 11,239 | 10,502 | |||||||
Computer equipment and software | 5,136 | 4,706 | |||||||
Furniture | 816 | 816 | |||||||
Leasehold improvements | 18,950 | 18,899 | |||||||
Property and equipment, gross | 45,991 | 43,958 | |||||||
Less: accumulated depreciation | (32,038 | ) | (28,967 | ) | |||||
Property and equipment, net | $ | 13,953 | $ | 14,991 | |||||
Other accrued liabilities consisted of the following (in thousands): | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Accrued compensation | $ | 2,781 | $ | 3,435 | |||||
Accrued professional fees | 1,144 | 796 | |||||||
Other | 768 | 505 | |||||||
$ | 4,693 | $ | 4,736 | ||||||
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Commitments and Contingencies | 7. Commitments and Contingencies | ||||
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, 2014 were as follows (in thousands): | |||||
Lease | |||||
Payments | |||||
2015 | $ | 3,197 | |||
2016 | 3,287 | ||||
2017 | 3,386 | ||||
2018 | 853 | ||||
2019 | — | ||||
Thereafter | — | ||||
Total minimum payments | $ | 10,723 | |||
Rental expense for the years ended December 31, 2014 and 2013 was $1,953,000 and $2,286,000, respectively. 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. We had no rental income from the sublease agreements during the years ended December 31, 2014 or 2013, and $340,000 for the year ended December 31, 2012. | |||||
Manufacturing and Supply Agreement | |||||
In November 2007, we entered into a manufacturing and supply agreement, or the Manufacture Agreement, with Autoliv, relating to the commercial supply of chemical heat packages for our single dose Staccato device. Autoliv developed these chemical heat packages for us pursuant to a development agreement executed in October 2005. | |||||
Currently, Autoliv manufactures, assembles and tests the chemical heat packages solely for us in conformance with our specifications. We pay Autoliv a specified purchase price, which varies based on annual quantities ordered by us, per chemical heat package delivered. The Manufacture Agreement provides that during the term of the Manufacture Agreement, Autoliv will be our exclusive supplier of 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 ourselves or if we obtain second generation products from a third party manufacturer. Upon the expiration or termination of the Manufacture Agreement we will also 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. | |||||
In June 2010 and February 2011, we entered into agreements to amend the terms of the Manufacture Agreement, or the 2010 Amendment and the 2011 Amendment, respectively. Under the terms of the 2010 Amendment, we paid Autoliv $4.0 million and issued Autoliv a $4.0 million 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 the 2010 Amendment. Under the terms of the 2011 Amendment, the original $4.0 million note was cancelled and a new unsecured promissory note with a reduced principal amount of $2.8 million, or the Second Note, was issued and production on the second cell ceased. The Second Note was paid in full in 2014. | |||||
In October 2013, Autoliv notified us that they were terminating, effective October 2016, the Manufacture Agreement. Upon termination of the Manufacture Agreement, we were to retain full ownership of the production equipment for commercial manufacture of chemical heat packages developed for us by Autoliv, and Autoliv’s obligations under the Manufacture Agreement will terminate in full. | |||||
In December 2014, we amended the Manufacture Agreement with Autoliv, or the 2014 Amendment. The 2014 Amendment states that the letter of termination we received in October 2013 is null, and that we and Autoliv are extending the agreement through 2018. In addition, we have the right to engage a second source supplier and implement a manufacturing line transfer from Autoliv to manufacture and supply the chemical heat packages to us or our licensees. | |||||
Contingencies | |||||
From time to time, we are involved in lawsuits, arbitrations, claims, investigations and proceedings that arise in the ordinary course of business. We make provisions for liabilities when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. No such provisions have been made for the the periods presented herein. Litigation and related matters are inherently unpredictable. If any unfavorable ruling were to occur in any specific period, there exists the possibility of a material adverse impact on the results of operations of that period or on our cash flows and liquidity. |
Financing_Obligations
Financing Obligations | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||
Financing Obligations | 8. 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. | |||||||||||||||||
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 bore interest beginning on January 1, 2011 at 8% per annum and was being paid in 48 consecutive and equal monthly installments of approximately $68,000. The New Note was paid in full in 2014. | |||||||||||||||||
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. | |||||||||||||||||
As of the December 2014, we had fully drawn the $25,000,000 available under the Teva Note. At the time of the drawdowns, the contractual conversion price was less than the value of our common stock. As a result, at each draw down date, 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 which is being amortized to interest expense over the life of the borrowing. Additionally, at each draw, we reclassified the relative portion of the unamortized right-to-borrow asset, classified as an Other Asset, (see Note 8) against the Teva Note, which will is also being amortized to interest expense over the life of the borrowing. | |||||||||||||||||
As we drew 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. In 2014, we drew down the remaining $10,000,000. The following table shows the effective interest rate for each drawdown after taking into consideration the beneficial ownership features and the right-to-borrow asset discount. | |||||||||||||||||
Draw | Beneficial | Reclassified | Effective | ||||||||||||||
Amount | Conversion | Unamortized | Interest | ||||||||||||||
Feature | Right-to- | Rate | |||||||||||||||
Borrow | |||||||||||||||||
Sep-13 | $ | 10,000,000 | $ | 2,455,000 | $ | 900,000 | 14.2 | % | |||||||||
Dec-13 | 5,000,000 | 657,000 | 393,000 | 10.2 | % | ||||||||||||
Mar-14 | 5,000,000 | 883,000 | 318,000 | 11.6 | % | ||||||||||||
Jun-14 | 5,000,000 | 148,000 | 252,000 | 6.6 | % | ||||||||||||
We recognized $216,000 and $752,000 of interest expense related to amortization of the right-to-borrow asset during the years ended December 31, 2014 and 2013, respectively. | |||||||||||||||||
Royalty Securitization Financing | |||||||||||||||||
In March 2014, we completed a royalty securitization financing, which consisted of a private placement to qualified institutional investors of $45,000,000 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 $6,890,000 interest reserve account, which is classified as a noncurrent asset, to cover any potential shortfall in interest payments. At December 31, 2014, $2,757,000 remained in the interest reserve account. | |||||||||||||||||
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. | |||||||||||||||||
We valued the warrants issued to the Note holders utilizing the Black-Scholes valuation model with an assumed volatility of 87%, an estimated life of 5 years, a 1.54% risk-free interest rate and a dividend rate of 0%. The total value of the warrants, $1,721,000, was recognized as an increase to additional paid in capital and as a discount to the Notes. The Note discount is being amortized into interest expense over five-years. We incurred total fees and expenses of $4,171,000, which we recorded as a noncurrent Other Asset, and are amortizing into interest expense over a five-year period. | |||||||||||||||||
Future scheduled principal payments under the debt obligations as of December 31, 2014 are as follows (in thousands): | |||||||||||||||||
Total | |||||||||||||||||
2015 | — | ||||||||||||||||
2016 | — | ||||||||||||||||
2017 | — | ||||||||||||||||
2018 | 25,000 | ||||||||||||||||
Thereafter | — | ||||||||||||||||
Total | $ | 25,000 | |||||||||||||||
The above table excludes any payments pursuant to the $45,000,000 from the Royalty Securitization Financing notes of our wholly-owned subsidiary, which have a legal maturity date in 2027. The principal payments by the subsidiary under the royalty securitization financing will be dependent upon the timing and amounts of royalties and milestone payments received under the Teva Agreement. |
License_Agreements
License Agreements | 12 Months Ended |
Dec. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
License Agreements | 9. 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 2014 or 2013 and recognized $1,259,000 of revenue under the Cypress Agreement in 2012. At December 31, 2014, 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, 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. | |
In October 2014, we entered into an amendment to the Ferrer Agreement. We and Ferrer agreed to eliminate certain individual country commercial sales initiation milestone payments in exchange for Ferrer’s purchase of 2,000,000 shares of our common stock for $4.00 per share for a total of $8,000,000, which reflected a premium on the fair value of our common stock of approximately $2,400,000. In January 2015, we paid the former shareholders of Symphony Allegro $865,000 related to this stock sale. | |
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 and $2,400,000 premiums received from the sale of common stock to Ferrer were additional consideration received pursuant to the Ferrer Agreement and does not pertain to a separate deliverable or element of the arrangement, and thus are being deferred and recognized as revenue in a manner consistent with the $10,000,000 upfront payment. As of December 31, 2014, Ferrer was our largest shareholder owning 11.55% of the total outstanding shares of our common stock. | |
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 3). In 2014, we received and recognized revenue on the second milestone in the amount of $1,000,000, of which $250,000 was paid to the former stockholders of Allegro (see Note 3) | |
We recognized $1,987,000, $2,915,000, and $2,811,000 of license revenue related to the Ferrer Agreement in the years ended December 31, 2014, 2013 and 2012, respectively. At December 31, 2014 we had deferred revenue of $5,513,000 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 is 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 during 2013. | |
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. | |
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, 2014 | |
Text Block [Abstract] | |
Warrants | 10. 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, 2014, 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 in August 2015. At December 31, 2014, 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 in May 2016. At December 31, 2014, 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, 2014, these warrants remained outstanding and exercisable. | |
In March 2014, in conjunction with the Royalty Securitization Financing, we issued to the debt holders a five-year warrant to purchase 345,661 shares of our common stock at a price of $0.01 per share. The warrant expires in March 2019. At December 31, 2014, 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 additional paid in capital and are indexed to our common stock. |
Equity_Incentive_Plans
Equity Incentive Plans | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||
Equity Incentive Plans | 11. 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 granted 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. | |||||||||||||||||||||||||
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. | |||||||||||||||||||||||||
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, 2014 | 2,121,504 | $ | 7.53 | ||||||||||||||||||||||
Options granted | 778,800 | 4.3 | |||||||||||||||||||||||
Options exercised | (22,842 | ) | 3.49 | ||||||||||||||||||||||
Options forfeited | (790,242 | ) | 4.76 | ||||||||||||||||||||||
Options cancelled | (108,947 | ) | 13.26 | ||||||||||||||||||||||
Balance as of December 31, 2014 | 1,978,273 | 7.1 | |||||||||||||||||||||||
At December 31, 2014, options to exercise 861,443 shares of our common stock, at a weighted average exercise price of $10.71 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, 2014, 2013 and 2012 was $26,000, $13,000, and $0, respectively. Options to exercise 23,019 shares of our common stock expired in 2014. | |||||||||||||||||||||||||
Information regarding the stock options outstanding at December 31, 2014 is summarized as follows: | |||||||||||||||||||||||||
Outstanding | Exercisable | ||||||||||||||||||||||||
Exercise Price | Number of | Remaining | Aggregate | Number | Remaining | Aggregate | |||||||||||||||||||
Shares | Contractual | Intrinsic | of Shares | Contractual | Intrinsic | ||||||||||||||||||||
Life | Value | Life | Value | ||||||||||||||||||||||
(In Years) | (In Years) | ||||||||||||||||||||||||
$1.34 — $3.32 | 99,200 | 9.77 | $ | 3,044 | 906 | 7.58 | $ | — | |||||||||||||||||
$3.47 — $3.47 | 255,733 | 7.08 | — | 150,625 | 6.74 | — | |||||||||||||||||||
$3.50 — $4.38 | 247,363 | 8.66 | — | 57,302 | 7.52 | — | |||||||||||||||||||
$4.41 — $4.42 | 248,661 | 7.4 | — | 200,420 | 7.17 | — | |||||||||||||||||||
$4.43 — $4.56 | 84,700 | 8.94 | — | 15,110 | 8.04 | — | |||||||||||||||||||
$4.57 — $4.57 | 369,000 | 9.49 | — | — | — | — | |||||||||||||||||||
$4.58 — $5.11 | 219,567 | 8.62 | — | 62,788 | 8.4 | — | |||||||||||||||||||
$5.13 — $14.20 | 158,919 | 5.68 | — | 81,565 | 2.63 | — | |||||||||||||||||||
$15.30 — $117.00 | 295,130 | 5.2 | — | 292,727 | 5.19 | — | |||||||||||||||||||
1,978,273 | 7.76 | $ | 3,044 | 861,443 | 6.12 | $ | — | ||||||||||||||||||
The intrinsic value noted in the table above is calculated as the difference between the market value per share as of December 31, 2014 and the exercise price of the shares. The market value per share as of December 31, 2014, the last trading date of 2014, was $1.49 as reported by The NASDAQ Stock Market. | |||||||||||||||||||||||||
Information with respect to unvested share units (restricted stock units) as of December 31, 2014 is as follows: | |||||||||||||||||||||||||
Number | Weighted | ||||||||||||||||||||||||
of Shares | Average | ||||||||||||||||||||||||
Grant Date | |||||||||||||||||||||||||
Fair Value | |||||||||||||||||||||||||
Outstanding at January 1, 2014 | 521,050 | $ | 4.67 | ||||||||||||||||||||||
Granted | — | — | |||||||||||||||||||||||
Released | (31,825 | ) | 4.67 | ||||||||||||||||||||||
Forfeited | (408,175 | ) | 4.67 | ||||||||||||||||||||||
Outstanding at December 31, 2014 | 81,050 | 4.67 | |||||||||||||||||||||||
The total value of restricted stock units released during the years ended December 31, 2014, 2013, and 2012 was $136,000, $75,000, and $1,443,000, respectively. | |||||||||||||||||||||||||
We authorized shares of common stock for issuance under the 2005 Plan and the Directors’ Plan as follows. | |||||||||||||||||||||||||
Year | Number of Shares | ||||||||||||||||||||||||
2012 | 120,000 | ||||||||||||||||||||||||
2013 | 2,319,812 | ||||||||||||||||||||||||
2014 | 158,751 | ||||||||||||||||||||||||
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, 2014, 1,667,850 and 136,110 shares remained available for issuance under the 2005 Plan and the Directors’ Plan, respectively. | |||||||||||||||||||||||||
On January 1, 2015 an additional 100,000 and 75,000 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, 2014, 2013 and 2012 an additional 75,000, 75,000, and 72,136 shares, respectively, were reserved for issuance. We issued 70,226, 54,494, and 18,409 shares at weighted average prices of $2.82, $3.67, and $4.44 during the years ended December 31, 2014, 2013 and 2012, respectively. At December 31, 2014, 79,406 shares were available for issuance under the ESPP. | |||||||||||||||||||||||||
On January 1, 2015 an additional 75,000 shares were reserved for issuance under the ESPP. |
401k_Plan
401(k) Plan | 12 Months Ended |
Dec. 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | |
401(k) Plan | 12. 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. During the years ended December 31, 2014 and 2013, we matched a total of $128,000 and $96,000 employee contributions, respectively. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Income Taxes | 13. 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, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Federal tax benefit at statutory rate | $ | (12,489 | ) | $ | (13,469 | ) | $ | (9,512 | ) | ||||
State tax benefit net of federal effect | (2,143 | ) | (2,311 | ) | (1,632 | ) | |||||||
Research and development credits | (560 | ) | (532 | ) | (254 | ) | |||||||
Other permanent differences | 2 | 14 | (30 | ) | |||||||||
Share-based compensation | 414 | 650 | 1,040 | ||||||||||
Adjustment to basis in subsidiary | (3,246 | ) | 15,899 | (757 | ) | ||||||||
Change in valuation allowance | 16,946 | (357 | ) | 11,016 | |||||||||
Reduction of deferred tax asset attributed to expired net operating loss | 1,076 | 106 | — | ||||||||||
carryforward | |||||||||||||
Other | — | — | 129 | ||||||||||
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, | |||||||||||||
2014 | 2013 | ||||||||||||
Federal and state net operating loss carryforwards | $ | 130,011 | $ | 114,643 | |||||||||
Federal and state research and development credit carryforwards | 15,536 | 14,977 | |||||||||||
Accrued liabilities | 7,177 | 8,085 | |||||||||||
Capitalized research and development costs | 16,027 | 13,845 | |||||||||||
Other | 2,092 | 2,648 | |||||||||||
Total deferred tax assets | 170,843 | 154,198 | |||||||||||
Valuation allowance | (170,843 | ) | (154,198 | ) | |||||||||
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 (decreased) increased by approximately $16,645,000, $(272,000) and $10,552,000 during the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||
As of December 31, 2014 we had federal net operating loss carryforwards of approximately $331,586,000. We also had federal research and development tax credit carryforwards of approximately $10,441,000. The net operating loss and tax credit carryforwards will expire at various dates beginning in 2020, if not utilized. | |||||||||||||
As of December 31, 2014, we had state net operating loss carryforwards of approximately $305,544,000 which will begin to expire in 2014. We also had state research and development tax credit carryforwards of approximately $7,720,000, which have no expiration. | |||||||||||||
As of December 31, 2014, 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, 2014, 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, 2012 | 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 | |||||||||||
Additions based on tax positions taken during a prior period | — | ||||||||||||
Reductions based on tax positions taken during a prior period | — | ||||||||||||
Additions based on tax positions taken during the current period | 113 | ||||||||||||
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, 2014 | $ | 2,932 | |||||||||||
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, 2014. 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 2000 to 2014 remain open in various taxing jurisdictions. |
Quarterly_Results
Quarterly Results | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Quarterly Results | 14. Quarterly Results (Unaudited) | ||||||||||||||||
The following table is in thousands, except per share amounts: | |||||||||||||||||
Quarter Ended | |||||||||||||||||
March 31 | June 30 | September 30 | December 31 | ||||||||||||||
Fiscal 2014 | |||||||||||||||||
Revenues | $ | 2,166 | $ | 1,484 | $ | 457 | $ | 1,454 | |||||||||
Loss from operations | (8,803 | ) | (11,349 | ) | (10,040 | ) | (7,264 | ) | |||||||||
Net loss | (10,735 | ) | (5,962 | ) | (13,328 | ) | (6,707 | ) | |||||||||
Basic and diluted net loss per share | (0.62 | ) | (0.34 | ) | (0.77 | ) | (0.35 | ) | |||||||||
Fiscal 2013 | |||||||||||||||||
Revenues | $ | 729 | $ | 43,635 | $ | 2,166 | $ | 1,309 | |||||||||
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 | ) | |||||||||
During the quarter ended December 31, 2014, we reversed approximately $1,009,000 and $1,191,000 of share-based compensation that was recognized during the three quarters ended September 31, 2014 and the three years ended December 31, 2013, respectively, due to a reversal of share-based compensation related to the rescission of equity awards. |
Need_to_Raise_Additional_Capit1
Need to Raise Additional Capital (Policies) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Accounting Policies [Abstract] | ||||
Need to Raise Additional Capital | We have incurred significant losses from operations since inception and expect losses to continue for the foreseeable future. As of December 31, 2014, we had cash, cash equivalents, marketable securities and restricted cash (see Note 3) of $37.5 million and working capital of $30.3 million. Our operating and capital plans call for cash expenditures to exceed these amounts for the next twelve months. We plan to raise additional capital to fund our operations and to develop our product candidates. We plan to finance our operations through the sale of equity securities, debt arrangements or partnership or licensing collaborations. Such funding may not be available or may be on terms that are not favorable to us. Our inability to raise capital as and when needed could have a negative impact on our financial condition and our ability to continue as a going concern. If we become unable to continue as a going concern, we may have to liquidate our assets, and might realize significantly less than the values at which they are carried on our financial statements, and stockholders may lose all or part of their investment in our common stock. Based on our available cash resources and our expected cash usage, we estimate that we have sufficient capital resources to meet our anticipated cash needs into the fourth quarter of 2015. | |||
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, 2014, 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 then current estimated WACC. The change in discount rate increased the net loss for 2013 by approximately $3,600,000 or $0.22 per share. In 2014, we increased the discount rate from 16.5% to 20% to reflect our current estimated WACC. The change in discount rate decreased the net loss for 2014 by approximately $6.4 million or $0.36 per share. The increase in our discount rate reflects the impact of our current financial condition, market capitalization and our estimated increase in borrowing costs. | ||||
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 our 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, 2014 and 2013, the estimated fair value of our financing obligations was $52,075,000 and $9,342,000, respectively and had book values of $63,767,000 and $11,524,000, 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 estimated 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. In addition, the fair value of our royalty securitization financing will be affected by the timing and amount of royalties and milestones earned under the Teva Agreement. | ||||
Concentration of Credit Risk | Concentration of Credit Risk | |||
Financial instruments that potentially subject us to credit risk consist of cash, cash equivalents, marketable securities and restricted cash 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. | ||||
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 March 2014, from the proceeds from the Royalty Securitization Financing (see Note 7), we established a $6,890,000 interest reserve account, which is classified as a noncurrent asset, to cover any potential shortfall in royalties and milestones received from Teva and quarterly interest payments. At December 31, 2014, $2,757,000 remained in the interest reserve account. | ||||
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, 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, 2014, we have not recognized any long-lived asset impairment. | ||||
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 and beginning in the first quarter of 2014, we have royalty revenue. | ||||
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 is 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 our 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. 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 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. | ||||
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, 2014, there was $3,020,000, $334,000 and $13,000 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 2.7 years, 2.1 years and 0.3 years, respectively. | ||||
New Accounting Pronouncements | New Accounting Pronouncements | |||
In August 2014, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) No. 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU 2014-15”). ASU 2014-15 requires management to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. In doing so, companies will have reduced diversity in the timing and content of footnote disclosures than under the current guidance. ASU 2014-15 is effective for us in the first quarter of 2016 with early adoption permitted. We do not believe the impact of adopting ASU 2014-15 on our results of operations or financial position. | ||||
In May 2014 the Financial Accounting Standards Board, or FASB, issued the Accounting Standards Update, or ASU, No. 2014-09, Revenue from Contracts with Customers (Topic 606), that will supersede nearly all existing revenue recognition guidance under US GAAP. The core principle of the guidance is that an entity should recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The standard will be effective for public entities for annual and interim periods beginning after December 15, 2016. | ||||
Entities can choose to apply the standard using either the full retrospective approach or a modified retrospective approach. Entities electing the full retrospective adoption will apply the standard to each period presented in the financial statements. This means that entities will have to apply the new guidance as if it had been in effect since the inception of all its contracts with customers presented in the financial statements. Entities that elect the modified retrospective approach will apply the guidance retrospectively only to the most current period presented in the financial statements. This means that entities will have to recognize the cumulative effect of initially applying the new standard as an adjustment to the opening balance of retained earnings at the date of initial application. The new revenue standard will be applied to contracts that are in progress at the date of initial application. | ||||
We plan to adopt the new standard on January 1, 2017. We have not yet evaluated which adoption method we plan to use or the potential effect the new standard will have on our consolidated financial statements. | ||||
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_Account1
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
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, 2014 and 2013 (in thousands): | ||||||||||||||||
December 31, 2014 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets | |||||||||||||||||
Money market funds | $ | 12,674 | $ | — | $ | — | $ | 12,674 | |||||||||
Corporate debt securities | — | 24,617 | — | 24,617 | |||||||||||||
Total assets | $ | 12,674 | $ | 24,617 | $ | — | $ | 37,291 | |||||||||
Liabilities | |||||||||||||||||
Contingent consideration liability | $ | — | $ | — | $ | 30,800 | $ | 30,800 | |||||||||
Total liabilities | $ | — | $ | — | $ | 30,800 | $ | 30,800 | |||||||||
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 | |||||||||
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, 2014 and 2013 (in thousands). | ||||||||||||||||
December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
(In thousands) | |||||||||||||||||
Beginning balance | $ | 39,200 | $ | 9,600 | |||||||||||||
Payments made | (251 | ) | (10,313 | ) | |||||||||||||
Adjustments to fair value measurement | (8,149 | ) | 39,913 | ||||||||||||||
Ending balance | $ | 30,800 | $ | 39,200 | |||||||||||||
Schedule of Inventory | Inventory, which is stated at the lower of cost or estimated market value, consists of the following (in thousands): | ||||||||||||||||
December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Raw materials | $ | 3,677 | $ | 3,044 | |||||||||||||
Work in process | — | — | |||||||||||||||
Finished goods | 52 | 403 | |||||||||||||||
Total inventory | $ | 3,729 | $ | 3,447 | |||||||||||||
Share-based Compensation Grant Date Fair Value | During the years ended December 31, 2014, 2013 and 2012, the weighted average fair value per share of the employee stock options, restricted stock units and stock purchase rights granted were: | ||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Stock Options | $ | 2.83 | $ | 3.46 | $ | 2.6 | |||||||||||
Restricted Stock Units | — | 4.67 | 4.96 | ||||||||||||||
Stock Purchase Rights | 1.32 | 1.76 | 3.86 | ||||||||||||||
Share-based Compensation Assumptions | During the years ended December 31, 2014, 2013 and 2012, we calculated the estimated grant date fair value of stock options and stock purchase rights using the following assumptions: | ||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Stock Option Plans | |||||||||||||||||
Weighted-average expected term | 5.0 Years | 5.0 Years | 5.0 Years | ||||||||||||||
Expected volatility | 83% | 99% | 98% | ||||||||||||||
Risk-free interest rate | 1.66% | 0.86% | 0.62% | ||||||||||||||
Dividend yield | 0% | 0% | 0% | ||||||||||||||
Employee Stock Purchase Plan | |||||||||||||||||
Weighted-average expected term | 0.5 Years | 0.5 Years | 0.6 Years | ||||||||||||||
Expected volatility | 61% | 80% | 98% | ||||||||||||||
Risk-free interest rate | 0.86% | 0.70% | 0.14% | ||||||||||||||
Dividend yield | 0% | 0% | 0% |
Net_Loss_per_Share_Tables
Net Loss per Share (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Earnings Per Share [Abstract] | |||||||||||||
Potentially Anti-Dilutive Securities | Potentially anti-dilutive securities include the following (in thousands): | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Outstanding stock options | 2,429 | 1,657 | 840 | ||||||||||
Unvested restricted stock units | 371 | 315 | 120 | ||||||||||
Warrants to purchase common stock | 6,561 | 6,462 | 5,582 | ||||||||||
Convertible debt | 4,803 | 651 | — |
Cash_Equivalents_and_Marketabl1
Cash Equivalents and Marketable Securities (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Cash and Cash Equivalents [Abstract] | |||||||||||||
Schedule of 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, 2014 and 2013 are as follows (in thousands): | ||||||||||||
December 31, 2014 | Amortized | Fair | Unrealized | ||||||||||
Cost | Value | Gain/ | |||||||||||
(Loss) | |||||||||||||
Money market funds | $ | 12,674 | $ | 12,674 | $ | — | |||||||
Corporate debt securities | 24,620 | 24,617 | (3 | ) | |||||||||
Total | 37,294 | 37,291 | (3 | ) | |||||||||
Less amounts classified as cash equivalents | (17,717 | ) | (17,717 | ) | — | ||||||||
Total marketable securities | $ | 19,577 | $ | 19,574 | $ | (3 | ) | ||||||
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 marketable securities | $ | 8,577 | $ | 8,578 | $ | 1 | |||||||
Balance_Sheet_Components_Table
Balance Sheet Components (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||
Components of Property and Equipment | Property and equipment consisted of the following (in thousands): | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Lab equipment | $ | 9,850 | $ | 9,035 | |||||
Manufacturing equipment | 11,239 | 10,502 | |||||||
Computer equipment and software | 5,136 | 4,706 | |||||||
Furniture | 816 | 816 | |||||||
Leasehold improvements | 18,950 | 18,899 | |||||||
Property and equipment, gross | 45,991 | 43,958 | |||||||
Less: accumulated depreciation | (32,038 | ) | (28,967 | ) | |||||
Property and equipment, net | $ | 13,953 | $ | 14,991 | |||||
Components of Other Accrued Liabilities | Other accrued liabilities consisted of the following (in thousands): | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Accrued compensation | $ | 2,781 | $ | 3,435 | |||||
Accrued professional fees | 1,144 | 796 | |||||||
Other | 768 | 505 | |||||||
$ | 4,693 | $ | 4,736 | ||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Future Minimum Lease Payments by Year | Future minimum lease payments under non-cancelable operating leases, at December 31, 2014 were as follows (in thousands): | ||||
Lease | |||||
Payments | |||||
2015 | $ | 3,197 | |||
2016 | 3,287 | ||||
2017 | 3,386 | ||||
2018 | 853 | ||||
2019 | — | ||||
Thereafter | — | ||||
Total minimum payments | $ | 10,723 | |||
Financing_Obligations_Tables
Financing Obligations (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||
Schedule of Effective Interest Rate Drawdown after Taking into Consideration Beneficial Ownership Features and Right to Borrow Asset Discount | The following table shows the effective interest rate for each drawdown after taking into consideration the beneficial ownership features and the right-to-borrow asset discount. | ||||||||||||||||
Draw | Beneficial | Reclassified | Effective | ||||||||||||||
Amount | Conversion | Unamortized | Interest | ||||||||||||||
Feature | Right-to- | Rate | |||||||||||||||
Borrow | |||||||||||||||||
Sep-13 | $ | 10,000,000 | $ | 2,455,000 | $ | 900,000 | 14.2 | % | |||||||||
Dec-13 | 5,000,000 | 657,000 | 393,000 | 10.2 | % | ||||||||||||
Mar-14 | 5,000,000 | 883,000 | 318,000 | 11.6 | % | ||||||||||||
Jun-14 | 5,000,000 | 148,000 | 252,000 | 6.6 | % | ||||||||||||
Long Term Debt Payments by Year | Future scheduled principal payments under the debt obligations as of December 31, 2014 are as follows (in thousands): | ||||||||||||||||
Total | |||||||||||||||||
2015 | — | ||||||||||||||||
2016 | — | ||||||||||||||||
2017 | — | ||||||||||||||||
2018 | 25,000 | ||||||||||||||||
Thereafter | — | ||||||||||||||||
Total | $ | 25,000 | |||||||||||||||
Equity_Incentive_Plans_Tables
Equity Incentive Plans (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based 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, 2014 | 2,121,504 | $ | 7.53 | ||||||||||||||||||||||
Options granted | 778,800 | 4.3 | |||||||||||||||||||||||
Options exercised | (22,842 | ) | 3.49 | ||||||||||||||||||||||
Options forfeited | (790,242 | ) | 4.76 | ||||||||||||||||||||||
Options cancelled | (108,947 | ) | 13.26 | ||||||||||||||||||||||
Balance as of December 31, 2014 | 1,978,273 | 7.1 | |||||||||||||||||||||||
Information Regarding Stock Options Outstanding | Information regarding the stock options outstanding at December 31, 2014 is summarized as follows: | ||||||||||||||||||||||||
Outstanding | Exercisable | ||||||||||||||||||||||||
Exercise Price | Number of | Remaining | Aggregate | Number | Remaining | Aggregate | |||||||||||||||||||
Shares | Contractual | Intrinsic | of Shares | Contractual | Intrinsic | ||||||||||||||||||||
Life | Value | Life | Value | ||||||||||||||||||||||
(In Years) | (In Years) | ||||||||||||||||||||||||
$1.34 — $3.32 | 99,200 | 9.77 | $ | 3,044 | 906 | 7.58 | $ | — | |||||||||||||||||
$3.47 — $3.47 | 255,733 | 7.08 | — | 150,625 | 6.74 | — | |||||||||||||||||||
$3.50 — $4.38 | 247,363 | 8.66 | — | 57,302 | 7.52 | — | |||||||||||||||||||
$4.41 — $4.42 | 248,661 | 7.4 | — | 200,420 | 7.17 | — | |||||||||||||||||||
$4.43 — $4.56 | 84,700 | 8.94 | — | 15,110 | 8.04 | — | |||||||||||||||||||
$4.57 — $4.57 | 369,000 | 9.49 | — | — | — | — | |||||||||||||||||||
$4.58 — $5.11 | 219,567 | 8.62 | — | 62,788 | 8.4 | — | |||||||||||||||||||
$5.13 — $14.20 | 158,919 | 5.68 | — | 81,565 | 2.63 | — | |||||||||||||||||||
$15.30 — $117.00 | 295,130 | 5.2 | — | 292,727 | 5.19 | — | |||||||||||||||||||
1,978,273 | 7.76 | $ | 3,044 | 861,443 | 6.12 | $ | — | ||||||||||||||||||
Summary of Unvested Share Units (Restricted Stock Units) | Information with respect to unvested share units (restricted stock units) as of December 31, 2014 is as follows: | ||||||||||||||||||||||||
Number | Weighted | ||||||||||||||||||||||||
of Shares | Average | ||||||||||||||||||||||||
Grant Date | |||||||||||||||||||||||||
Fair Value | |||||||||||||||||||||||||
Outstanding at January 1, 2014 | 521,050 | $ | 4.67 | ||||||||||||||||||||||
Granted | — | — | |||||||||||||||||||||||
Released | (31,825 | ) | 4.67 | ||||||||||||||||||||||
Forfeited | (408,175 | ) | 4.67 | ||||||||||||||||||||||
Outstanding at December 31, 2014 | 81,050 | 4.67 | |||||||||||||||||||||||
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 | ||||||||||||||||||||||||
2012 | 120,000 | ||||||||||||||||||||||||
2013 | 2,319,812 | ||||||||||||||||||||||||
2014 | 158,751 |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
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, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Federal tax benefit at statutory rate | $ | (12,489 | ) | $ | (13,469 | ) | $ | (9,512 | ) | ||||
State tax benefit net of federal effect | (2,143 | ) | (2,311 | ) | (1,632 | ) | |||||||
Research and development credits | (560 | ) | (532 | ) | (254 | ) | |||||||
Other permanent differences | 2 | 14 | (30 | ) | |||||||||
Share-based compensation | 414 | 650 | 1,040 | ||||||||||
Adjustment to basis in subsidiary | (3,246 | ) | 15,899 | (757 | ) | ||||||||
Change in valuation allowance | 16,946 | (357 | ) | 11,016 | |||||||||
Reduction of deferred tax asset attributed to expired net operating loss | 1,076 | 106 | — | ||||||||||
carryforward | |||||||||||||
Other | — | — | 129 | ||||||||||
Total | $ | — | $ | — | $ | — | |||||||
Report of Company's Deferred Tax Assets | Significant components of our deferred tax assets are as follows (in thousands): | ||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Federal and state net operating loss carryforwards | $ | 130,011 | $ | 114,643 | |||||||||
Federal and state research and development credit carryforwards | 15,536 | 14,977 | |||||||||||
Accrued liabilities | 7,177 | 8,085 | |||||||||||
Capitalized research and development costs | 16,027 | 13,845 | |||||||||||
Other | 2,092 | 2,648 | |||||||||||
Total deferred tax assets | 170,843 | 154,198 | |||||||||||
Valuation allowance | (170,843 | ) | (154,198 | ) | |||||||||
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, 2012 | 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 | |||||||||||
Additions based on tax positions taken during a prior period | — | ||||||||||||
Reductions based on tax positions taken during a prior period | — | ||||||||||||
Additions based on tax positions taken during the current period | 113 | ||||||||||||
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, 2014 | $ | 2,932 | |||||||||||
Quarterly_Results_Tables
Quarterly Results (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
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 2014 | |||||||||||||||||
Revenues | $ | 2,166 | $ | 1,484 | $ | 457 | $ | 1,454 | |||||||||
Loss from operations | (8,803 | ) | (11,349 | ) | (10,040 | ) | (7,264 | ) | |||||||||
Net loss | (10,735 | ) | (5,962 | ) | (13,328 | ) | (6,707 | ) | |||||||||
Basic and diluted net loss per share | (0.62 | ) | (0.34 | ) | (0.77 | ) | (0.35 | ) | |||||||||
Fiscal 2013 | |||||||||||||||||
Revenues | $ | 729 | $ | 43,635 | $ | 2,166 | $ | 1,309 | |||||||||
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 | ) |
The_Company_Additional_Informa
The Company - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | |||||||
Mar. 31, 2014 | Dec. 31, 2014 | Jul. 23, 2012 | 31-May-13 | Sep. 30, 2012 | Aug. 31, 2012 | Feb. 23, 2012 | Oct. 31, 2014 | Oct. 27, 2014 | Mar. 15, 2012 | Mar. 05, 2012 | Dec. 31, 2013 | |
Segment | ||||||||||||
Product Information [Line Items] | ||||||||||||
Number of business segment | 1 | |||||||||||
Issuance of common stock in the aggregate stock and warrants sale | 19,404,697 | 17,279,804 | ||||||||||
Number of common shares, callable by warrants issued in the aggregate stock and warrants sale | 345,661 | |||||||||||
Exercise price of warrant | $0.01 | |||||||||||
Warrant expiration date | 31-Mar-19 | |||||||||||
Azimuth Opportunity L.P. line of credit [Member] | ||||||||||||
Product Information [Line Items] | ||||||||||||
Issuance of common stock in the aggregate stock and warrants sale | 80,429 | 1,437,481 | 3,489,860 | 3,489,860 | ||||||||
Net proceeds received in the aggregate stock and warrants sale | $6,347,000 | $13,393,000 | $13,393,000 | |||||||||
Common stock average price per share | $4.48 | $3.88 | $3.88 | |||||||||
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% | |||||||||||
Underwritten Public Offering [Member] | ||||||||||||
Product Information [Line Items] | ||||||||||||
Issuance of common stock in the aggregate stock and warrants sale | 4,400,000 | |||||||||||
Number of common shares, callable by warrants issued in the aggregate stock and warrants sale | 4,400,000 | |||||||||||
Net proceeds received in the aggregate stock and warrants sale | 20,231,000 | |||||||||||
Exercise price of warrant | $5 | |||||||||||
Warrant expiration date | 23-Feb-17 | 23-Feb-17 | ||||||||||
Date from which warrants are exercisable | 24-Feb-13 | |||||||||||
Private Placement [Member] | Grupo Ferrer Internacional, S.A. [Member] | ||||||||||||
Product Information [Line Items] | ||||||||||||
Amount of consideration received by company in exchange for shares sold in transaction | 8,000,000 | 3,000,000 | ||||||||||
Sale of stock, number of shares issued in transaction | 2,000,000 | 241,936 | ||||||||||
Common stock average price per share | $4 | $12.40 | ||||||||||
Premium on the fair value from sale of stock, classified as deferred revenue | $2,400,000 | $2,400,000 | $1,452,000 |
Need_to_Raise_Additional_Capit2
Need to Raise Additional Capital - Additional Information (Detail) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Need To Raise Additional Capital Textual [Abstract] | |
Cash, cash equivalents, marketable securities and restricted cash | $37.50 |
Working capital | $30.30 |
Operating and capital plans | Next twelve months |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies - Financial Assets by Major Security Type and Liability Measured at Fair Value on Recurring Basis (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets | ||
Cash and Cash Equivalents, Fair Value Disclosure | $17,717 | $14,770 |
Total assets | 37,291 | 23,348 |
Liabilities | ||
Contingent consideration liability | 30,800 | 39,200 |
Total liabilities | 30,800 | 39,200 |
Money market funds [Member] | ||
Assets | ||
Cash and Cash Equivalents, Fair Value Disclosure | 12,674 | 11,345 |
Corporate debt securities [Member] | ||
Assets | ||
Cash and Cash Equivalents, Fair Value Disclosure | 24,617 | 12,003 |
Level 1 [Member] | ||
Assets | ||
Total assets | 12,674 | 11,345 |
Liabilities | ||
Contingent consideration liability | 0 | 0 |
Total liabilities | 0 | 0 |
Level 1 [Member] | Money market funds [Member] | ||
Assets | ||
Cash and Cash Equivalents, Fair Value Disclosure | 12,674 | 11,345 |
Level 1 [Member] | Corporate debt securities [Member] | ||
Assets | ||
Cash and Cash Equivalents, Fair Value Disclosure | 0 | 0 |
Level 2 [Member] | ||
Assets | ||
Total assets | 24,617 | 12,003 |
Liabilities | ||
Contingent consideration liability | 0 | 0 |
Total liabilities | 0 | 0 |
Level 2 [Member] | Money market funds [Member] | ||
Assets | ||
Cash and Cash Equivalents, Fair Value Disclosure | 0 | 0 |
Level 2 [Member] | Corporate debt securities [Member] | ||
Assets | ||
Cash and Cash Equivalents, Fair Value Disclosure | 24,617 | 12,003 |
Level 3 [Member] | ||
Assets | ||
Total assets | 0 | 0 |
Liabilities | ||
Contingent consideration liability | 30,800 | 39,200 |
Total liabilities | 30,800 | 39,200 |
Level 3 [Member] | Money market funds [Member] | ||
Assets | ||
Cash and Cash Equivalents, Fair Value Disclosure | 0 | 0 |
Level 3 [Member] | Corporate debt securities [Member] | ||
Assets | ||
Cash and Cash Equivalents, Fair Value Disclosure | $0 | $0 |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | 0 Months Ended | 12 Months Ended | 1 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Oct. 05, 2011 | Dec. 31, 2012 | 31-May-13 | Mar. 31, 2014 | |
Business Acquisition, Contingent Consideration [Line Items] | ||||||
Increased (decreased) in net loss resulted from change in discount rate | $6,400,000 | $3,600,000 | ||||
Increased (decreased) in net loss per share resulted from change in discount rate | $0.36 | $0.22 | ||||
Increased (decreased) in net loss resulted from change in assumptions | -8,149,000 | 39,913,000 | ||||
Estimated fair value of financing obligations | 52,075,000 | 9,342,000 | ||||
Book values of financing obligations | 63,767,000 | 11,524,000 | ||||
Maturity period of highly liquid investments | Three months or less | |||||
Interest reserve | 2,757,000 | 6,890,000 | ||||
Uncertain tax position recognition likelihood percentage | 50.00% | |||||
Grupo Ferrer Internacional, S.A. [Member] | ||||||
Business Acquisition, Contingent Consideration [Line Items] | ||||||
Upfront cash received under collaborative arrangement | 1,000,000 | 10,000,000 | ||||
Upfront cash received under collaborative arrangement | 1,000,000 | 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 | 251,000 | 312,500 | 5,000,000 | |||
No collaboration partner [Member] | ||||||
Business Acquisition, Contingent Consideration [Line Items] | ||||||
Increase (decrease) in net loss per share | ($0.15) | |||||
Teva Pharmaceuticals USA, Inc. [Member] | ||||||
Business Acquisition, Contingent Consideration [Line Items] | ||||||
Increase (decrease) in net loss per share | ($0.46) | $2.39 | ||||
Upfront cash received under collaborative arrangement | 40,000,000 | 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 | $10,000,000 | ||||
Maximum [Member] | ||||||
Business Acquisition, Contingent Consideration [Line Items] | ||||||
Cash flow discount rate | 20.00% | 18.00% | ||||
Minimum [Member] | ||||||
Business Acquisition, Contingent Consideration [Line Items] | ||||||
Cash flow discount rate | 16.50% | 16.50% |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies - Fair Value Measurement of Contingent Consideration Liability (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Fair Value Disclosures [Abstract] | ||
Beginning balance | $39,200 | $9,600 |
Payments made | -251 | -10,313 |
Adjustments to fair value measurement | -8,149 | 39,913 |
Ending balance | $30,800 | $39,200 |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies - Useful Life - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
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_Account6
Summary of Significant Accounting Policies - Schedule of Inventory (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ||
Raw materials | $3,677 | $3,044 |
Work in process | 0 | 0 |
Finished goods | 52 | 403 |
Total inventory | $3,729 | $3,447 |
Summary_of_Significant_Account7
Summary of Significant Accounting Policies - Share-based Compensation Grant Date Fair Value (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock Options | $2.83 | $3.46 | $2.60 |
Restricted Stock Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted Stock Units or Stock Purchase Rights | $0 | $4.67 | $4.96 |
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 | $1.32 | $1.76 | $3.86 |
Summary_of_Significant_Account8
Summary of Significant Accounting Policies - Share-based Compensation Assumptions (Detail) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
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 | 83.00% | 99.00% | 98.00% |
Risk-free interest rate | 1.66% | 0.86% | 0.62% |
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 | 6 months | 7 months 6 days |
Expected volatility | 61.00% | 80.00% | 98.00% |
Risk-free interest rate | 0.86% | 0.70% | 0.14% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Summary_of_Significant_Account9
Summary of Significant Accounting Policies - Share-based Compensation by Award Type - Additional Information (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | 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 | $3,020,000 | |
Costs expected to be recognized over a weighted average period | 2 years 8 months 12 days | |
Stock options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation costs | 334,000 | |
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 | $13,000 | |
Costs expected to be recognized over a weighted average period | 3 months 18 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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Stock options [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive securities | 2,429 | 1,657 | 840 |
Restricted stock units [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive securities | 371 | 315 | 120 |
Warrants to purchase common stock [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive securities | 6,561 | 6,462 | 5,582 |
Convertible debt [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive securities | 4,803 | 651 | 0 |
Cash_Equivalents_and_Marketabl2
Cash Equivalents and Marketable Securities - Schedule of Cash Equivalents and Marketable Securities (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Cash Cash Equivalents And Investments [Line Items] | ||
Amortized Cost | $19,577 | $8,577 |
Fair Value | 19,574 | 8,578 |
Unrealized Gain/(Loss) | -3 | 1 |
Less amounts classified as cash equivalents, Amortized Cost | -17,717 | -14,770 |
Less amounts classified as cash equivalents, Fair Value | -17,717 | -14,770 |
Less amounts classified as cash equivalents, Unrealized Gain/(Loss) | 0 | 0 |
Money market funds [Member] | ||
Cash Cash Equivalents And Investments [Line Items] | ||
Amortized Cost | 12,674 | 11,345 |
Fair Value | 12,674 | 11,345 |
Unrealized Gain/(Loss) | 0 | 0 |
Less amounts classified as cash equivalents, Fair Value | -12,674 | -11,345 |
Corporate debt securities [Member] | ||
Cash Cash Equivalents And Investments [Line Items] | ||
Amortized Cost | 24,620 | 12,002 |
Fair Value | 24,617 | 12,003 |
Unrealized Gain/(Loss) | -3 | 1 |
Less amounts classified as cash equivalents, Fair Value | -24,617 | -12,003 |
Total [Member] | ||
Cash Cash Equivalents And Investments [Line Items] | ||
Amortized Cost | 37,294 | 23,347 |
Fair Value | 37,291 | 23,348 |
Unrealized Gain/(Loss) | ($3) | $1 |
Balance_Sheet_Components_Compo
Balance Sheet Components - Components of Property and Equipment (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $45,991 | $43,958 |
Less: accumulated depreciation | -32,038 | -28,967 |
Property and equipment, net | 13,953 | 14,991 |
Lab equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 9,850 | 9,035 |
Manufacturing equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 11,239 | 10,502 |
Computer equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 5,136 | 4,706 |
Furniture [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 816 | 816 |
Leasehold improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $18,950 | $18,899 |
Balance_Sheet_Components_Compo1
Balance Sheet Components - Components of Other Accrued Liabilities (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Payables and Accruals [Abstract] | ||
Accrued compensation | $2,781 | $3,435 |
Accrued professional fees | 1,144 | 796 |
Other | 768 | 505 |
Total other accrued liabilities | $4,693 | $4,736 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Operating Leases - Additional Information (Detail) (USD $) | 12 Months Ended | 1 Months Ended | 0 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Aug. 31, 2010 | Mar. 30, 2012 | |
sqft | sqft | ||||
Operating Leased Assets [Line Items] | |||||
General and administrative expenses | $13,344,000 | $15,778,000 | $11,093,000 | ||
Depreciation | 3,393,000 | 3,323,000 | 4,336,000 | ||
Rent expenses, net of sublease income | 1,953,000 | 2,286,000 | 1,972,000 | ||
Rental income from the sublease agreement | 0 | 0 | 340,000 | ||
Agreement to sublease [Member] | Cypress Bioscience, Inc. [Member] | |||||
Operating Leased Assets [Line Items] | |||||
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 | ||||
2023 Building [Member] | |||||
Operating Leased Assets [Line Items] | |||||
Termination of 2023 lease Building, square feet | 41,290 | ||||
General and administrative expenses | 1,421,000 | ||||
Deferred rent liability | 2,073,000 | ||||
Depreciation | $652,000 | ||||
2091 Building [Member] | |||||
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 |
Commitments_and_Contingencies_2
Commitments and Contingencies - Future Minimum Lease Payments by Year (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Commitments and Contingencies Disclosure [Abstract] | |
2015 | $3,197 |
2016 | 3,287 |
2017 | 3,386 |
2018 | 853 |
2019 | 0 |
Thereafter | 0 |
Total minimum payments | $10,723 |
Commitments_and_Contingencies_3
Commitments and Contingencies - Manufacturing and Supply - Additional Information (Detail) (Autoliv ASP, Inc. [Member], USD $) | 1 Months Ended | ||
Dec. 31, 2014 | Feb. 28, 2011 | Jun. 30, 2010 | |
Long-term Purchase Commitment [Line Items] | |||
Amount of cash paid to Autoliv ASP, Inc. | $4,000,000 | ||
Value of cancelled note | 4,000,000 | ||
Agreement termination year | 2018 | ||
Original Note [Member] | |||
Long-term Purchase Commitment [Line Items] | |||
Value of unsecured promissory note issued | 4,000,000 | 4,000,000 | |
New Note [Member] | |||
Long-term Purchase Commitment [Line Items] | |||
Value of unsecured promissory note issued | 2,800,000 | ||
Value of cancelled note | $4,000,000 | ||
Agreement termination date | 2016-10 |
Commitments_and_Contingencies_4
Commitments and Contingencies - Contingencies - Additional Information (Detail) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | |
Provisions for liabilities | $0 |
Financing_Obligations_Addition
Financing Obligations - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | 1 Months Ended | 3 Months Ended | 1 Months Ended | ||||||
Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Feb. 28, 2011 | Jun. 30, 2010 | 31-May-13 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | 31-May-10 | |
Debt Instrument [Line Items] | |||||||||||
Borrowing under loan agreement | $50,830,000 | $15,000,000 | |||||||||
Number of common shares, callable by warrants issued in the aggregate stock and warrants sale | 345,661 | 345,661 | |||||||||
Exercise price of warrant | $0.01 | $0.01 | |||||||||
Warrant expiration date | 31-Mar-19 | ||||||||||
Estimated the fair value of warrant | 1,721,000 | ||||||||||
Contractual term of the warrant | 5 years | ||||||||||
Risk-free interest rate | 1.54% | ||||||||||
Expected volatility rate | 87.00% | ||||||||||
Expected dividend yield | 0.00% | ||||||||||
Non-recourse notes issued | 45,000,000 | ||||||||||
Warrant exercisable term | 5 years | ||||||||||
Effective interest rate of notes | 12.25% | 12.25% | |||||||||
First quarterly interest payment | 15-Jun-14 | ||||||||||
Interest reserve | 6,890,000 | 2,757,000 | 6,890,000 | ||||||||
Notes redemption description | 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. | ||||||||||
Interest expense amortization period | 5 years | ||||||||||
Total fees and expenses | 4,171,000 | ||||||||||
Financing from royalty securitization | 45,000,000 | ||||||||||
Royalty securitization financing legal maturity date | 2027 | ||||||||||
Autoliv ASP, Inc. [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Amount of cash paid to Autoliv ASP, Inc. | 4,000,000 | ||||||||||
Value of cancelled note | 4,000,000 | ||||||||||
Teva Pharmaceuticals USA, Inc. [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Borrowing under loan agreement | 25,000,000 | 15,000,000 | 5,000,000 | 5,000,000 | 5,000,000 | 10,000,000 | |||||
Debt instrument interest rate | 4.00% | ||||||||||
Aggregate term loan advances | 25,000,000 | ||||||||||
Debt instrument payment terms | 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. | ||||||||||
Debt instrument conversion price per share | $4.48 | ||||||||||
Number of years from effective date to receive note advances | 2 years | ||||||||||
Unamortized borrowing cost from financing obligation | 318,000 | 393,000 | 252,000 | 318,000 | 393,000 | 900,000 | |||||
Interest expense under right-to-borrow asset | 216,000 | 752,000 | |||||||||
Effective interest rate of notes | 11.60% | 10.20% | 6.60% | 11.60% | 10.20% | 14.20% | |||||
New Note [Member] | Autoliv ASP, Inc. [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Installment period of New Note | 48 months | ||||||||||
Value of unsecured promissory note issued | 2,800,000 | ||||||||||
Value of cancelled note | 4,000,000 | ||||||||||
Debt instrument interest rate | 8.00% | ||||||||||
Periodic payment of New Note | 68,000 | ||||||||||
Original Note [Member] | Autoliv ASP, Inc. [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Value of unsecured promissory note issued | 4,000,000 | 4,000,000 | |||||||||
Hercules Technology Growth Capital, Inc. [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Borrowing under loan agreement | 15,000,000 | ||||||||||
Rate of interest for amount remaining | 10.75% | ||||||||||
Loan interest prime rate, maximum | 14.00% | ||||||||||
Installment period of New Note | 33 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 | $26.90 | ||||||||||
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% | ||||||||||
Warrant exercisable term | 5 years | ||||||||||
Hercules Technology Growth Capital, Inc. [Member] | Prime Rate [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Prime rate plus percentage spread | 6.50% |
Financing_Obligations_Schedule
Financing Obligations - Schedule of Effective Interest Rate Drawdown after Taking into Consideration Beneficial Ownership Features and Right to Borrow Asset Discount (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||
Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | |
Debt Instrument [Line Items] | ||||||
Draw Amount | $50,830,000 | $15,000,000 | ||||
Beneficial Conversion Feature | 3,112,000 | 1,032,000 | 3,112,000 | |||
Effective Interest Rate | 12.25% | |||||
Teva Pharmaceuticals USA, Inc. [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Draw Amount | 5,000,000 | 5,000,000 | 5,000,000 | 10,000,000 | 25,000,000 | 15,000,000 |
Beneficial Conversion Feature | 148,000 | 883,000 | 657,000 | 2,455,000 | 657,000 | |
Reclassified Unamortized Right-to-Borrow | $252,000 | $318,000 | $393,000 | $900,000 | $393,000 | |
Effective Interest Rate | 6.60% | 11.60% | 10.20% | 14.20% | 10.20% |
Financing_Obligations_Long_Ter
Financing Obligations - Long Term Debt Payments by Year (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Debt Disclosure [Abstract] | |
2015 | $0 |
2016 | 0 |
2017 | 0 |
2018 | 25,000 |
Thereafter | 0 |
Total | $25,000 |
License_Agreements_Additional_
License Agreements - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | |||||||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Aug. 31, 2010 | Oct. 05, 2011 | Oct. 31, 2014 | Mar. 31, 2012 | Jan. 31, 2015 | Oct. 31, 2014 | Oct. 27, 2014 | Mar. 15, 2012 | 31-May-13 | |
License Agreements [Line Items] | ||||||||||||||||||||
Revenue under agreement | $1,454,000 | $457,000 | $1,484,000 | $2,166,000 | $1,309,000 | $2,166,000 | $43,635,000 | $729,000 | $2,997,000 | $46,965,000 | $4,070,000 | |||||||||
Common stock price, per share | $1.49 | $1.49 | ||||||||||||||||||
Expected volatility rate | 87.00% | |||||||||||||||||||
Estimated debt yield | 0.00% | |||||||||||||||||||
Cypress Bioscience, Inc. [Member] | ||||||||||||||||||||
License Agreements [Line Items] | ||||||||||||||||||||
Upfront cash received under collaborative arrangement | 5,000,000 | |||||||||||||||||||
Revenue under agreement | 0 | 0 | 1,259,000 | |||||||||||||||||
Deferred revenue | 0 | 0 | ||||||||||||||||||
Grupo Ferrer Internacional, S.A. [Member] | ||||||||||||||||||||
License Agreements [Line Items] | ||||||||||||||||||||
Upfront cash received under collaborative arrangement | 1,000,000 | 10,000,000 | ||||||||||||||||||
Revenue under agreement | 1,987,000 | 2,915,000 | 2,811,000 | |||||||||||||||||
Deferred revenue | 5,513,000 | 5,513,000 | ||||||||||||||||||
Eligible receipt of additional milestone payments | 48,000,000 | 51,000,000 | ||||||||||||||||||
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 | 2,000,000 | 241,936 | ||||||||||||||||||
Purchase of common stock, value | 8,000,000 | 3,000,000 | ||||||||||||||||||
Common stock price, per share | $4 | $12.40 | $4 | |||||||||||||||||
Estimated performance period of agreement | 4 years | |||||||||||||||||||
Total outstanding shares of common stock ownership percentage | 11.55% | 11.55% | ||||||||||||||||||
Upfront cash received under collaborative arrangement | 1,000,000 | 1,250,000 | ||||||||||||||||||
Grupo Ferrer Internacional, S.A. [Member] | Symphony Allegro [Member] | Subsequent Event [Member] | ||||||||||||||||||||
License Agreements [Line Items] | ||||||||||||||||||||
Payment related to common stock | 865,000 | |||||||||||||||||||
Grupo Ferrer Internacional, S.A. [Member] | Private Placement [Member] | ||||||||||||||||||||
License Agreements [Line Items] | ||||||||||||||||||||
Premium on the fair value from sale of stock, classified as deferred revenue | 2,400,000 | 2,400,000 | 1,452,000 | |||||||||||||||||
Grupo Ferrer Internacional, S.A. [Member] | Allegro stockholders [Member] | ||||||||||||||||||||
License Agreements [Line Items] | ||||||||||||||||||||
Payments to former stockholders under collaborative arrangement | 251,000 | 312,500 | 5,000,000 | |||||||||||||||||
Teva Pharmaceuticals USA, Inc. [Member] | ||||||||||||||||||||
License Agreements [Line Items] | ||||||||||||||||||||
Upfront cash received under collaborative arrangement | 40,000,000 | 40,000,000 | ||||||||||||||||||
Eligible receipt of additional milestone payments | 195,000,000 | |||||||||||||||||||
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 | |||||||||||||||||||
Eligible receipt of additional payments | 195,000,000 | |||||||||||||||||||
Teva Pharmaceuticals USA, Inc. [Member] | Allegro stockholders [Member] | ||||||||||||||||||||
License Agreements [Line Items] | ||||||||||||||||||||
Payments to former stockholders under collaborative arrangement | $10,313,000 | $10,000,000 |
Warrants_Additional_Informatio
Warrants - Additional Information (Detail) (USD $) | 1 Months Ended | 0 Months Ended | 12 Months Ended | 1 Months Ended | |||
Mar. 31, 2014 | 6-May-11 | Aug. 10, 2010 | Feb. 23, 2012 | Dec. 31, 2014 | 31-May-10 | Dec. 31, 2013 | |
Class of Warrant or Right [Line Items] | |||||||
Number of common shares, callable by warrants issued in the aggregate stock and warrants sale | 345,661 | ||||||
Exercise price of warrant | $0.01 | ||||||
Warrant expiration date | 31-Mar-19 | ||||||
Contractual term of the warrant | 5 years | ||||||
Issuance of common stock in the aggregate stock and warrants sale | 19,404,697 | 17,279,804 | |||||
Registered Direct Equity Issuances [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 | |||||
Exercise price of warrant | $17.55 | $33 | |||||
Warrant expiration date | 31-May-16 | 31-Aug-15 | |||||
Issuance of common stock in the aggregate stock and warrants sale | 1,192,703 | 668,518 | |||||
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 | ||||||
Underwritten Public Offering [Member] | |||||||
Class of Warrant or Right [Line Items] | |||||||
Number of common shares, callable by warrants issued in the aggregate stock and warrants sale | 4,400,000 | ||||||
Exercise price of warrant | $5 | ||||||
Warrant expiration date | 23-Feb-17 | 23-Feb-17 | |||||
Issuance of common stock in the aggregate stock and warrants sale | 4,400,000 | ||||||
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 | 37,639 | ||||||
Exercise price of warrant | $26.90 | ||||||
Warrant expiration date | 31-May-15 | ||||||
Contractual term of the warrant | 5 years |
Equity_Incentive_Plans_Additio
Equity Incentive Plans - Additional Information (Detail) (USD $) | 12 Months Ended | 1 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2005 | 31-May-13 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Authorized shares of common stock for issuance, Number of Shares | 158,751 | 2,319,812 | 120,000 | ||
Number of shares, Exercisable | 861,443 | ||||
Weighted average exercise price exercisable | $10.71 | ||||
Intrinsic value of options exercised | $26,000 | $13,000 | $0 | ||
Options to exercise, shares | 108,947 | ||||
Sale of common stock, value | $1.49 | ||||
2005 Equity Incentive Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Authorized for issuance thereunder share of common stock | 108,879 | ||||
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 | ||||
Maximum contractual term for issuing new grants stock options and restricted stock units | 10 years | ||||
Increase in annual reserve by percentage of shares of common stock | 2.00% | ||||
Increase in annual reserve by shares of common stock | 100,000 | ||||
Authorized shares of common stock for issuance, Number of Shares | 100,000 | ||||
Shares available for issuance | 1,667,850 | ||||
Shares authorized for issuance include annual reserve | 119,812 | ||||
2005 Equity Incentive Plan [Member] | Restricted Stock Units [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Restricted stock units granted to non-employee directors | 1 year | ||||
2005 Non-Employee Director's Stock Option Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Authorized for issuance thereunder share of common stock | 25,000 | ||||
Vesting period for stock options and restricted stock units | 4 years | ||||
Maximum contractual term for issuing new grants stock options and restricted stock units | 10 years | ||||
Authorized shares of common stock for issuance, Number of Shares | 75,000 | 200,000 | |||
Shares available for issuance | 136,110 | ||||
Shares authorized for issuance include annual reserve | 2,200,000 | ||||
2011 Employee Stock Option Exchange Program [Member] | Restricted Stock Units [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total value of options exercised restricted stock units | $136,000 | $75,000 | $1,443,000 | ||
2005 Employee Stock Purchase Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Authorized for issuance thereunder share of common stock | 50,000 | ||||
Increase in annual reserve by percentage of shares of common stock | 1.00% | ||||
Authorized shares of common stock for issuance, Number of Shares | 75,000 | ||||
Shares available for issuance | 70,226 | 54,494 | 18,409 | ||
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 issued under ESPP | 75,000 | 75,000 | 72,136 | ||
Weighted average price | $2.82 | $3.67 | $4.44 | ||
Shares available for issuance under the ESPP | 79,406 | ||||
2005 Employee Stock Purchase Plan [Member] | Forecast [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares issued under ESPP | 75,000 |
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, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Outstanding at January 1, 2014, Number of Shares | 2,121,504 |
Options granted, Number of Shares | 778,800 |
Options exercised, Number of Shares | -22,842 |
Options forfeited, Number of Shares | -790,242 |
Options canceled, Number of Shares | -108,947 |
Outstanding at December 31, 2014, Number of Shares | 1,978,273 |
Outstanding at January 1, 2014, Weighted Average Exercise Price | $7.53 |
Options granted, Weighted Average Exercise Price | $4.30 |
Options exercised, Weighted Average Exercise Price | $3.49 |
Options forfeited, Weighted Average Exercise Price | $4.76 |
Options canceled, Weighted Average Exercise Price | $13.26 |
Outstanding at December 31, 2014, Weighted Average Exercise Price | $7.10 |
Equity_Incentive_Plans_Informa
Equity Incentive Plans - Information Regarding Stock Options Outstanding (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Shares, Outstanding | 1,978,273 | 2,121,504 |
Remaining Contractual Life (In Years), Outstanding | 7 years 9 months 4 days | |
Aggregate Intrinsic Value, Outstanding | $3,044 | |
Number of shares, Exercisable | 861,443 | |
Remaining Contractual Life (In Years), Exercisable | 6 years 1 month 13 days | |
Aggregate Intrinsic Value, Exercisable | 0 | |
$1.34 - $3.32 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise Price, Lower Limit | $1.34 | |
Exercise Price, Upper Limit | $3.32 | |
Number of Shares, Outstanding | 99,200 | |
Remaining Contractual Life (In Years), Outstanding | 9 years 9 months 7 days | |
Aggregate Intrinsic Value, Outstanding | 3,044 | |
Number of shares, Exercisable | 906 | |
Remaining Contractual Life (In Years), Exercisable | 7 years 6 months 29 days | |
Aggregate Intrinsic Value, Exercisable | 0 | |
$3.47 - $3.47 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise Price, Lower Limit | $3.47 | |
Exercise Price, Upper Limit | $3.47 | |
Number of Shares, Outstanding | 255,733 | |
Remaining Contractual Life (In Years), Outstanding | 7 years 29 days | |
Aggregate Intrinsic Value, Outstanding | 0 | |
Number of shares, Exercisable | 150,625 | |
Remaining Contractual Life (In Years), Exercisable | 6 years 8 months 27 days | |
Aggregate Intrinsic Value, Exercisable | 0 | |
$3.50 - $4.38 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise Price, Lower Limit | $3.50 | |
Exercise Price, Upper Limit | $4.38 | |
Number of Shares, Outstanding | 247,363 | |
Remaining Contractual Life (In Years), Outstanding | 8 years 7 months 28 days | |
Aggregate Intrinsic Value, Outstanding | 0 | |
Number of shares, Exercisable | 57,302 | |
Remaining Contractual Life (In Years), Exercisable | 7 years 6 months 7 days | |
Aggregate Intrinsic Value, Exercisable | 0 | |
$4.41 - $4.42 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise Price, Lower Limit | $4.41 | |
Exercise Price, Upper Limit | $4.42 | |
Number of Shares, Outstanding | 248,661 | |
Remaining Contractual Life (In Years), Outstanding | 7 years 4 months 24 days | |
Aggregate Intrinsic Value, Outstanding | 0 | |
Number of shares, Exercisable | 200,420 | |
Remaining Contractual Life (In Years), Exercisable | 7 years 2 months 1 day | |
Aggregate Intrinsic Value, Exercisable | 0 | |
$4.43 - $4.56 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise Price, Lower Limit | $4.43 | |
Exercise Price, Upper Limit | $4.56 | |
Number of Shares, Outstanding | 84,700 | |
Remaining Contractual Life (In Years), Outstanding | 8 years 11 months 9 days | |
Aggregate Intrinsic Value, Outstanding | 0 | |
Number of shares, Exercisable | 15,110 | |
Remaining Contractual Life (In Years), Exercisable | 8 years 15 days | |
Aggregate Intrinsic Value, Exercisable | 0 | |
$4.57 - $4.57 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise Price, Lower Limit | $4.57 | |
Exercise Price, Upper Limit | $4.57 | |
Number of Shares, Outstanding | 369,000 | |
Remaining Contractual Life (In Years), Outstanding | 9 years 5 months 27 days | |
Aggregate Intrinsic Value, Outstanding | 0 | |
Number of shares, Exercisable | 0 | |
Remaining Contractual Life (In Years), Exercisable | 0 years | |
Aggregate Intrinsic Value, Exercisable | 0 | |
$4.58 - $5.11 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise Price, Lower Limit | $4.58 | |
Exercise Price, Upper Limit | $5.11 | |
Number of Shares, Outstanding | 219,567 | |
Remaining Contractual Life (In Years), Outstanding | 8 years 7 months 13 days | |
Aggregate Intrinsic Value, Outstanding | 0 | |
Number of shares, Exercisable | 62,788 | |
Remaining Contractual Life (In Years), Exercisable | 8 years 4 months 24 days | |
Aggregate Intrinsic Value, Exercisable | 0 | |
$5.13 - $14.20 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise Price, Lower Limit | $5.13 | |
Exercise Price, Upper Limit | $14.20 | |
Number of Shares, Outstanding | 158,919 | |
Remaining Contractual Life (In Years), Outstanding | 5 years 8 months 5 days | |
Aggregate Intrinsic Value, Outstanding | 0 | |
Number of shares, Exercisable | 81,565 | |
Remaining Contractual Life (In Years), Exercisable | 2 years 7 months 17 days | |
Aggregate Intrinsic Value, Exercisable | 0 | |
$15.30 - $117.00 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise Price, Lower Limit | $15.30 | |
Exercise Price, Upper Limit | $117 | |
Number of Shares, Outstanding | 295,130 | |
Remaining Contractual Life (In Years), Outstanding | 5 years 2 months 12 days | |
Aggregate Intrinsic Value, Outstanding | 0 | |
Number of shares, Exercisable | 292,727 | |
Remaining Contractual Life (In Years), Exercisable | 5 years 2 months 9 days | |
Aggregate Intrinsic Value, Exercisable | $0 |
Equity_Incentive_Plans_Summary1
Equity Incentive Plans - Summary of Unvested Share Units (Restricted Stock Units) (Detail) (Restricted Stock Units [Member], USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Restricted Stock Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Outstanding at January 1, 2014, Number Of Shares | 521,050 | ||
Granted, Number Of Shares | 0 | ||
Released, Number Of Shares | -31,825 | ||
Forfeited, Number Of Shares | -408,175 | ||
Outstanding at December 31, 2014, Number Of Shares | 81,050 | 521,050 | |
Outstanding at January 1, 2014, Weighted Average Grant-Date Fair Value | $4.67 | ||
Granted, Weighted Average Grant-Date Fair Value | $0 | $4.67 | $4.96 |
Released, Weighted Average Grant-Date Fair Value | $4.67 | ||
Forfeited, Weighted Average Grant-Date Fair Value | $4.67 | ||
Outstanding at December 31, 2014, Weighted Average Grant-Date Fair Value | $4.67 | $4.67 |
Equity_Incentive_Plans_Authori
Equity Incentive Plans - Authorized Shares of Common Stock for Issuance (Detail) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Authorized shares of common stock for issuance, Number of Shares | 158,751 | 2,319,812 | 120,000 |
401k_Plan_Additional_Informati
401(k) Plan - Additional Information (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Contribution Pension and Other Postretirement Plans Disclosure [Abstract] | ||
Employee contribution matched | $128,000 | $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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Federal tax benefit at statutory rate | ($12,489) | ($13,469) | ($9,512) |
State tax benefit net of federal effect | -2,143 | -2,311 | -1,632 |
Research and development credits | -560 | -532 | -254 |
Other permanent differences | 2 | 14 | -30 |
Share-based compensation | 414 | 650 | 1,040 |
Adjustment to basis in subsidiary | -3,246 | 15,899 | -757 |
Change in valuation allowance | 16,496 | -357 | 11,016 |
Reduction of deferred tax asset attributed to expired net operating loss carryforward | 1,076 | 106 | 0 |
Other | 0 | 0 | 129 |
Total | $0 | $0 | $0 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Disclosure [Line Items] | |||
Effective tax rate of deferred tax assets | 40.00% | ||
(Decreased) increase in valuation allowances | $16,645,000 | ($272,000) | $10,552,000 |
Deferred tax asset | 0 | ||
Minimum [Member] | |||
Income Tax Disclosure [Line Items] | |||
Various tax years | 2000 | ||
Maximum [Member] | |||
Income Tax Disclosure [Line Items] | |||
Various tax years | 2014 | ||
Internal Revenue Service (IRS) [Member] | |||
Income Tax Disclosure [Line Items] | |||
Net operating loss carryforwards | 331,586,000 | ||
Internal Revenue Service (IRS) [Member] | Research [Member] | |||
Income Tax Disclosure [Line Items] | |||
Research and development tax credit carryforwards | 10,441,000 | ||
Net operating loss and tax credit carryforwards expiration date | 2020 | ||
State research and development [Member] | |||
Income Tax Disclosure [Line Items] | |||
Net operating loss carryforwards | 305,544,000 | ||
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 | $7,720,000 |
Income_Taxes_Report_of_Company
Income Taxes - Report of Company's Deferred Tax Assets (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Income Tax Disclosure [Abstract] | ||
Federal and state net operating loss carryforwards | $130,011 | $114,643 |
Federal and state research and development credit carryforwards | 15,536 | 14,977 |
Accrued liabilities | 7,177 | 8,085 |
Capitalized research and development costs | 16,027 | 13,845 |
Other | 2,092 | 2,648 |
Total deferred tax assets | 170,843 | 154,198 |
Valuation allowance | -170,843 | -154,198 |
Net deferred tax assets | $0 | $0 |
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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Beginning Balance | $2,819 | $3,014 | $2,934 |
Additions based on tax positions taken during a prior period | 0 | 0 | 0 |
Reductions based on tax positions taken during a prior period | 0 | -231 | -16 |
Additions based on tax positions taken during the current period | 113 | 36 | 96 |
Reductions based on tax positions taken during the current period | 0 | 0 | 0 |
Reductions related to settlement of tax matters | 0 | 0 | 0 |
Reductions related to a lapse of applicable statute of limitations | 0 | 0 | 0 |
Ending Balance | $2,932 | $2,819 | $3,014 |
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, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenues | $1,454 | $457 | $1,484 | $2,166 | $1,309 | $2,166 | $43,635 | $729 | $2,997 | $46,965 | $4,070 |
Loss from operations | -7,264 | -10,040 | -11,349 | -8,803 | -9,357 | -10,339 | 31,069 | -9,603 | -37,456 | 1,770 | -28,872 |
Net loss | ($6,707) | ($13,328) | ($5,962) | ($10,735) | ($5,692) | ($12,412) | ($799) | ($20,712) | ($36,732) | ($39,615) | ($27,978) |
Basic and diluted net loss per share | ($0.35) | ($0.77) | ($0.34) | ($0.62) | ($0.33) | ($0.72) | ($0.05) | ($1.31) | ($2.07) | ($2.38) | ($2.24) |
Quarterly_Results_Additional_I
Quarterly Results - Additional Information (Detail) (USD $) | 3 Months Ended |
Dec. 31, 2014 | |
Three Quarters Ended September 30, 2014 [Member] | |
Interim Reporting [Line Items] | |
Share-based compensation expense reversal | $1,009,000 |
Three Years Ended December 31, 2013 [Member] | |
Interim Reporting [Line Items] | |
Share-based compensation expense reversal | $1,191,000 |