Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | Apr. 30, 2015 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | VNDA | |
Entity Registrant Name | Vanda Pharmaceuticals Inc. | |
Entity Central Index Key | 1347178 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 41,798,503 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $32,809 | $60,901 |
Marketable securities | 101,520 | 68,921 |
Accounts receivable, net | 20,120 | 3,654 |
Inventory | 5,215 | 5,170 |
Prepaid expenses and other current assets | 2,503 | 3,084 |
Total current assets | 162,167 | 141,730 |
Property and equipment, net | 3,080 | 2,437 |
Intangible assets, net | 47,580 | 26,724 |
Restricted cash and other | 813 | 813 |
Total assets | 213,640 | 171,704 |
Current liabilities: | ||
Accounts payable | 1,490 | 835 |
Accrued and other current liabilities | 30,299 | 6,951 |
Total current liabilities | 31,789 | 7,786 |
Milestone obligation under license agreement | 25,000 | |
Other non-current liabilities | 4,378 | 3,101 |
Total liabilities | 61,167 | 10,887 |
Commitments and contingencies (Notes 13 and 14) | ||
Stockholders' equity: | ||
Preferred stock, $0.001 par value; 20,000,000 shares authorized, and no shares issued or outstanding | ||
Common stock, $0.001 par value; 150,000,000 shares authorized; 41,793,422 and 41,486,361 shares issued and outstanding at March 31, 2015 and December 31, 2014, respectively | 42 | 41 |
Additional paid-in capital | 450,609 | 448,744 |
Accumulated other comprehensive income | 27 | 16 |
Accumulated deficit | -298,205 | -287,984 |
Total stockholders' equity | 152,473 | 160,817 |
Total liabilities and stockholders' equity | $213,640 | $171,704 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares authorized | 20,000,000 | 20,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares issued | 41,793,422 | 41,486,361 |
Common stock, shares outstanding | 41,793,422 | 41,486,361 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Revenues: | ||
Product sales, net | $22,150 | |
Royalty revenue | 1,691 | |
Licensing revenue | 7,452 | |
Total revenues | 22,150 | 9,143 |
Operating expenses: | ||
Cost of goods sold | 5,015 | |
Research and development | 4,478 | 7,263 |
Selling, general and administrative | 18,806 | 27,893 |
Intangible asset amortization | 4,144 | 565 |
Total operating expenses | 32,443 | 35,721 |
Loss from operations | -10,293 | -26,578 |
Other income | 72 | 45 |
Net loss | ($10,221) | ($26,533) |
Basic and diluted net loss per share | ($0.24) | ($0.79) |
Weighted average shares outstanding, basic and diluted | 41,744,948 | 33,678,706 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Net loss | ($10,221) | ($26,533) |
Other comprehensive income (loss): | ||
Change in net unrealized income (loss) on marketable securities | 11 | -13 |
Tax provision on other comprehensive income (loss) | 0 | 0 |
Other comprehensive income (loss), net of tax: | 11 | -13 |
Comprehensive loss | ($10,210) | ($26,546) |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (USD $) | Total | Common Stock | Additional Paid-in Capital | Other Comprehensive Income | Accumulated Deficit |
In Thousands, except Share data | |||||
Beginning balance at Dec. 31, 2014 | $160,817 | $41 | $448,744 | $16 | ($287,984) |
Beginning balance (in shares) at Dec. 31, 2014 | 41,486,361 | ||||
Issuance of common stock from the exercise of stock options and settlement of restricted stock units (in shares) | 332,383 | ||||
Issuance of common stock from the exercise of stock options and settlement of restricted stock units | 203 | 1 | 202 | ||
Shares withheld upon settlement of equity awards(in shares) | -25,322 | ||||
Shares withheld upon settlement of equity awards | -282 | -282 | |||
Employee and non-employee stock based compensation expense | 1,945 | 1,945 | |||
Net income (loss) | -10,221 | -10,221 | |||
Other comprehensive income, net of tax | 11 | 11 | |||
Ending balance at Mar. 31, 2015 | $152,473 | $42 | $450,609 | $27 | ($298,205) |
Ending balance (in shares) at Mar. 31, 2015 | 41,793,422 |
CONDENSED_CONSOLIDATED_STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cash flows from operating activities | ||
Net loss | ($10,221) | ($26,533) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization of property and equipment | 140 | 125 |
Employee and non-employee stock-based compensation | 1,945 | 1,393 |
Amortization of discounts and premiums on marketable securities | 197 | 53 |
Intangible asset amortization | 4,144 | 565 |
Changes in assets and liabilities: | ||
Accounts receivable | -16,466 | 340 |
Prepaid expenses and other current assets | 581 | -429 |
Inventory | -45 | -192 |
Accounts payable | 654 | 292 |
Accrued liabilities | 24,387 | 7,934 |
Deferred revenue | 239 | -7,452 |
Net cash provided by (used in) operating activities | 5,555 | -23,904 |
Cash flows from investing activities | ||
Acquisition of intangible assets | -8,000 | |
Purchases of property and equipment | -783 | -135 |
Purchases of marketable securities | -59,890 | -2,319 |
Proceeds from sale of marketable securities | 7,198 | |
Maturities of marketable securities | 27,105 | 3,500 |
Change in restricted cash | 145 | |
Net cash provided by (used in) investing activities | -33,568 | 389 |
Cash flows from financing activities | ||
Obligations paid in connection with settlement of equity awards | -282 | -436 |
Proceeds from exercise of employee stock options | 203 | 2,447 |
Net cash provided by (used in) financing activities | -79 | 2,011 |
Net decrease in cash and cash equivalents | -28,092 | -21,504 |
Cash and cash equivalents | ||
Beginning of period | 60,901 | 64,764 |
End of period | 32,809 | 43,260 |
Non-cash investing activities | ||
Acquisition of intangible asset included in liabilities | $25,000 |
Business_Organization_and_Pres
Business Organization and Presentation | 3 Months Ended | |||
Mar. 31, 2015 | ||||
Business Organization and Presentation | 1. Business Organization and Presentation | |||
Business Organization | ||||
Vanda Pharmaceuticals Inc. (Vanda or the Company) is a biopharmaceutical company focused on the development and commercialization of products for the treatment of central nervous system disorders. Vanda commenced its operations in 2003 and the Company’s portfolio includes the following products: | ||||
• | HETLIOZ® (tasimelteon), a product for the treatment of Non-24-Hour Sleep-Wake Disorder (Non-24) for which a New Drug Application (NDA) was approved by the U.S. Food and Drug Administration (FDA) in January 2014 and launched commercially in the U.S. in April 2014. In April 2015, the European Medicines Agency’s (EMA) Committee for Medicinal Products for Human Use (CHMP) adopted a positive opinion recommending approval of HETLIOZ® for the treatment of Non-24 in totally blind adults in the European Union (EU). The CHMP positive opinion will be reviewed by the European Commission (EC). If approved, the EC grants a centralized marketing authorization with unified labeling that is valid in the 28 countries that are members of the EU, as well as European Economic Area members Iceland, Liechtenstein and Norway. The EC final decision is expected mid-year 2015. HETLIOZ® has potential utility in a number of circadian rhythm disorders. Ongoing HETLIOZ® life cycle management activities include an observation study in Smith-Magenis Syndrome (SMS) and a clinical development plan is being develop for pediatric Non-24. In addition, the Company is evaluating the use of HETLIOZ® in other circadian rhythm indications and exploring the creation of a new liquid formulation of HETLIOZ®. | |||
• | Fanapt® (iloperidone), a product for the treatment of schizophrenia, the oral formulation of which was being marketed and sold in the U.S. by Novartis Pharma AG (Novartis) until December 31, 2014. On December 31, 2014, Novartis transferred all the U.S. and Canadian commercial rights to the Fanapt® franchise to the Company. See Note 3, Settlement Agreement with Novartis, for further information. Additionally, the Company’s distribution partners launched Fanapt® in Israel and Mexico in 2014. | |||
• | Tradipitant (VLY-686), a small molecule neurokinin-1 receptor (NK-1R) antagonist, which is presently in clinical development for the treatment of chronic pruritus in atopic dermatitis. Results from a Phase II study for the treatment of chronic pruritus in atopic dermatitis were announced in March 2015. Clinical evaluation is ongoing to assess potential future development activities. | |||
• | Trichostatin A, a small molecule histone deacetylase (HDAC) inhibitor. | |||
• | AQW051, a Phase II alpha-7 nicotinic acetylcholine receptor partial agonist. | |||
Basis of Presentation | ||||
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with the Company’s consolidated financial statements for the fiscal year ended December 31, 2014 included in the Company’s annual report on Form 10-K. The financial information as of March 31, 2015 and for the three months ended March 31, 2015 and 2014 is unaudited, but in the opinion of management, all adjustments, consisting only of normal recurring accruals, considered necessary for a fair statement of the results for these interim periods have been included. The condensed consolidated balance sheet data as of December 31, 2014 was derived from audited financial statements but does not include all disclosures required by GAAP. | ||||
The results of the Company’s operations for any interim period are not necessarily indicative of the results that may be expected for any other interim period or for a full fiscal year. The financial information included herein should be read in conjunction with the consolidated financial statements and notes in the Company’s annual report on Form 10-K for the fiscal year ended December 31, 2014. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies | ||||||||
Use of Estimates | |||||||||
The preparation of financial statements in conformity with GAAP requires management to make estimates that affect the reported amounts of assets and liabilities at the date of the financial statements, disclosure of contingent assets and liabilities, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. | |||||||||
Inventory | |||||||||
Inventory, which is recorded at the lower of cost or market, includes the cost of third-party manufacturing and other direct and indirect costs and is valued using the first-in, first-out method. The Company capitalizes inventory costs associated with its products upon regulatory approval when, based on management’s judgment, future commercialization is considered probable and the future economic benefit is expected to be realized; otherwise, such costs are expensed as research and development. Inventory is evaluated for impairment by consideration of factors such as lower of cost or market, net realizable value, obsolescence or expiry. | |||||||||
Net Product Sales | |||||||||
The Company’s net product sales consist of sales of HETLIOZ® and, beginning in 2015, sales of Fanapt®. Net sales by product for the three months ended March 31, 2015 and 2014 were as follows: | |||||||||
Three Months Ended | |||||||||
March 31, | March 31, | ||||||||
(in thousands) | 2015 | 2014 | |||||||
HETLIOZ® product sales, net | $ | 7,460 | $ | — | |||||
Fanapt® product sales, net | 14,690 | — | |||||||
$ | 22,150 | $ | — | ||||||
The Company applies the revenue recognition guidance in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Subtopic 605-15, Revenue Recognition—Products. The Company recognizes revenue from product sales when there is persuasive evidence that an arrangement exists, title to product and associated risk of loss has passed to the customer, the price is fixed or determinable, collectability is reasonably assured and the Company has no further performance obligations. | |||||||||
HETLIOZ® is only available in the U.S. for distribution through a limited number of specialty pharmacies, and is not available in retail pharmacies. Fanapt® is available in the U.S. for distribution through a limited number of wholesalers and is available in retail pharmacies. The Company invoices and records revenue when its customers, specialty pharmacies and wholesalers, receive product from the third-party logistics warehouse. Revenues and accounts receivable are concentrated with these customers. The top six customers represented 95% of total revenues for the three months ended March 31, 2015, and the top three customers represented 80% of accounts receivable at March 31, 2015. The Company has not experienced any losses relating to receivables from customers. | |||||||||
The Company has entered into distribution agreements with Probiomed S.A. de C.V. (Probiomed) for the commercialization of Fanapt® in Mexico and Megapharm Ltd. for the commercialization of Fanapt® in Israel. With the exception of sales to Probiomed, the Company invoices and records revenue upon delivery of Fanapt® to the distribution partner. The Probiomed distribution agreement contains a contracted delivery price plus a revenue sharing provision based on Probiomed’s sales of Fanapt®. As a result, the selling price of Fanapt® is not fixed or determinable upon delivery of Fanapt® to Probiomed. The Company defers revenue recognition until the revenue sharing provision is calculated. As of March 31, 2015, the Company recorded $0.4 million of deferred revenue related to Fanapt® sales. | |||||||||
Product Sales Discounts and Allowances | |||||||||
The Company’s product sales are recorded net of applicable discounts, chargebacks, rebates, co-pay assistance, service fees and product returns that are applicable for various government and commercial payors. Reserves established for discounts and returns are classified as reductions of accounts receivable if the amount is payable to direct customers, with the exception of service fees. Service fees are classified as a liability. Reserves established for chargebacks, rebates or co-pay assistance are classified as a liability if the amount is payable to a party other than customers. The Company currently records sales allowances for the following: | |||||||||
Rebates: Allowances for rebates include mandated and supplemental discounts under the Medicaid Drug Rebate Program as well as contracted rebate programs with other payors. Rebate amounts owed after the final dispensing of the product to a benefit plan participant are based upon contractual agreements or legal requirements with public sector benefit providers, such as Medicaid. The allowance for rebates is based on statutory or contracted discount rates and expected utilization. Estimates for the expected utilization of rebates are based on historical activity and, where available, actual and pending prescriptions for which the Company has validated the insurance benefits. Rebates are generally invoiced and paid in arrears, such that the accrual balance consists of an estimate of the amount expected to be incurred for the current quarter’s activity, plus an accrual balance for known prior quarter’s unpaid rebates. If actual future invoicing varies from estimates, the Company may need to adjust accruals, which would affect net revenue in the period of adjustment. | |||||||||
Chargebacks: Chargebacks are discounts that occur when contracted customers purchase directly from specialty pharmacies and wholesalers. Contracted customers, which currently consist primarily of Public Health Service institutions, non-profit clinics, and Federal government entities purchasing via the Federal Supply Schedule, generally purchase the product at a discounted price. The specialty pharmacy or wholesaler, in turn, charges back the difference between the price initially paid by the specialty pharmacy or wholesaler and the discounted price paid to the specialty pharmacy or wholesaler by the contracted customer. The allowance for chargebacks is based on historical activity and, where available, actual and pending prescriptions for which the Company has validated the insurance benefits. | |||||||||
Medicare Part D Coverage Gap: Medicare Part D prescription drug benefit mandates manufacturers to fund approximately 50% of the Medicare Part D insurance coverage gap for prescription drugs sold to eligible patients. Estimates for expected Medicare Part D coverage gap are based in part on historical activity and, where available, actual and pending prescriptions for which the Company has validated the insurance benefits. Funding of the coverage gap is generally invoiced and paid in arrears so that the accrual balance consists of an estimate of the amount expected to be incurred for the current quarter’s activity, plus an accrual balance for known prior quarter activity. If actual future funding varies from estimates, the Company may need to adjust accruals, which would affect net revenue in the period of adjustment. | |||||||||
Service Fees: The Company also incurs specialty pharmacy and wholesaler fees for services and their data. These fees are based on contracted terms and are known amounts. The Company accrues service fees at the time of revenue recognition, resulting in a reduction of product sales and the recognition of an accrued liability, unless it receives an identifiable and separate benefit for the consideration and it can reasonably estimate the fair value of the benefit received. In which case, service fees are recorded as selling, general and administrative expense. | |||||||||
Co-payment Assistance: Patients who have commercial insurance and meet certain eligibility requirements may receive co-payment assistance. Co-pay assistance utilization is based on information provided by the Company’s third-party administrator. The allowance for co-pay assistance is based on actual sales and an estimate for pending sales based on either historical activity or pending sales for which the Company has validated the insurance benefits. | |||||||||
Prompt-pay: Specialty pharmacies and wholesalers are offered discounts for prompt payment. The Company expects that the specialty pharmacies and wholesalers will earn prompt payment discounts and, therefore, deducts the full amount of these discounts from total product sales when revenues are recognized. | |||||||||
Product Returns: Consistent with industry practice, the Company generally offers direct customers a limited right to return as defined within the Company’s returns policy. The Company considers several factors in the estimation process, including historical return activity, expiration dates of product shipped to specialty pharmacies, inventory levels within the distribution channel, product shelf life, prescription trends and other relevant factors. | |||||||||
Stock-based Compensation | |||||||||
Compensation costs for all stock-based awards to employees and directors are measured based on the grant date fair value of those awards and recognized over the period during which the employee or director is required to perform service in exchange for the award. The Company generally recognizes the expense over the award’s vesting period. The fair value of restricted stock units (RSUs) awarded is also amortized using the straight line method. Stock-based compensation expense recognized in the consolidated statements of operations is based on awards ultimately expected to vest. Therefore, it has been reduced for estimated forfeitures. Forfeitures are required to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. | |||||||||
Advertising Expense | |||||||||
The Company expenses the costs of advertising, including branded promotional expenses, as incurred. Branded advertising expenses, recorded in selling, general and administrative expenses, were $1.0 million and $0.9 million for the three months ended March 31, 2015 and 2014, respectively. | |||||||||
Segment Reporting | |||||||||
The Company operates in one reporting segment and, accordingly, no segment disclosures are presented herein. | |||||||||
Recent accounting pronouncements | |||||||||
In January 2015, the Financial Accounting Standards board (FASB) issued Accounting Standards Update (ASU) 2015-01, Income Statement-Extraordinary and Unusual Items, to simplify income statement classification by removing the concept of extraordinary items from U.S. GAAP. As a result, items that are both unusual and infrequent will no longer be separately reported net of tax after continuing operations. The new standard is effective for both public and private companies for periods beginning after December 15, 2015. Adoption of this new standard is not expected to have a material impact on the Company’s consolidated financial statements. | |||||||||
In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements – Going Concern. The new standard requires management of public and private companies to evaluate whether there is substantial doubt about the entity’s ability to continue as a going concern and, if so, disclose that fact. Management will also be required to evaluate and disclose whether its plans alleviate that doubt. The new standard is effective for annual periods ending after December 15, 2016, and interim periods within annual periods beginning after December 15, 2016. Adoption of this new standard is not expected to have a material impact on the Company’s consolidated financial statements. | |||||||||
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). This new standards requires companies to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which a company expects to be entitled in exchange for those goods or services. Under the new standard, revenue is recognized when a customer obtains control of a good or service. The standard allows for two transition methods - entities can either apply the new standard (i) retrospectively to each prior reporting period presented, or (ii) retrospectively with the cumulative effect of initially applying the standard recognized at the date of initial adoption. The new standard is effective for public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption of the standard is prohibited. The Company is evaluating this standard to determine if adoption will have a material impact on the Company’s consolidated financial statements. |
Settlement_Agreement_with_Nova
Settlement Agreement with Novartis | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Settlement Agreement with Novartis | 3. Settlement Agreement with Novartis | ||||
In May 2014, the Company commenced arbitration proceedings with Novartis relating to the license of Fanapt® (the Fanapt® Arbitration). In December 2014, the Company entered into a settlement agreement with Novartis and certain of its affiliates (the Settlement Agreement). Pursuant to the terms of the Settlement Agreement, the Company and Novartis dismissed the Fanapt® Arbitration and released each other from any related claims. In addition, in connection with the Settlement Agreement, Novartis (i) transferred all U.S. and Canadian rights in the Fanapt® franchise to the Company, (ii) purchased $25.0 million of the Company’s common stock at a price per share equal to $13.82, and (iii) granted to the Company an exclusive worldwide license to AQW051, a Phase II alpha-7 nicotinic acetylcholine receptor partial agonist. | |||||
Pursuant to the stock purchase agreement entered into as part of the Settlement Agreement, Novartis purchased $25.0 million of the Company’s common stock. The Company issued to Novartis an aggregate of 1,808,973 shares at $13.82 per share, which per share represented a 10% premium to the average closing prices of the Company’s common stock for the ten trading days prior to December 22, 2014. The Company recorded a loss of $0.9 million as part of gain on arbitration settlement in the consolidated statement of operations for the period ending December 31, 2014 related to the issuance of stock, which was valued using the Company’s closing stock price on December 31, 2014, the effective date of the transaction. | |||||
In connection with the Settlement Agreement, the Company received an exclusive worldwide license under certain patents and patent applications, and other licenses to intellectual property, to develop and commercialize AQW051. Under the AQW051 license agreement, the Company is obligated to use its commercially reasonable efforts to develop and commercialize AQW051 and is responsible for all development costs under the AQW051 license agreement. Novartis is eligible to receive tiered-royalties on net sales at percentage rates up to the mid-teens. The Company evaluated AQW051 and determined that the asset is both incomplete and has substance. However, given the early stage of AQW051 and the future costs of development, no transaction value was allocated to this asset. | |||||
The Company accounted for the Settlement Agreement in accordance with the provisions of ASC Subtopic 805, Business Combinations (ASC 805). Under the provisions of ASC 805, the acquisition date for a business is the date on which the company obtains control of the acquiree. The Company obtained control on December 31, 2014, the effective date of the Settlement Agreement. The following summarizes the fair value of consideration exchanged as part of the Settlement Agreement: | |||||
(in thousands) | |||||
Equity issued | $ | 25,904 | |||
Cash received | (25,000 | ) | |||
Settlement of pre-existing non-contractual relationship | 18,087 | ||||
$ | 18,991 | ||||
Assets acquired and recorded at fair value as of December 31, 2014 were as follows: | |||||
(in thousands) | |||||
Inventory | $ | 2,960 | |||
Intangible - Re-acquired right | 15,940 | ||||
Prepaid services | 91 | ||||
$ | 18,991 | ||||
The Company recorded the reacquired right as an intangible asset as of December 31, 2014. The Company is amortizing the reacquired right on a straight-line basis through November 2016. | |||||
Due to the effective date of the Settlement Agreement being December 31, 2014, the Company did not recognize any revenue or operating expenses related to U.S. or Canadian commercial sales of Fanapt® in the consolidated statement of operations for the year ended December 31, 2014. | |||||
In connection with the Settlement Agreement, the Company and Novartis terminated the 2009 Amended Sublicense Agreement (the 2009 Agreement). Given the termination of this pre-existing contractual relationship and that there is no further obligation under the 2009 Agreement, the Company recognized a gain of $59.5 million, representing the remaining deferred revenue related to the $200.0 million upfront payment received from Novartis under the 2009 Agreement. This amount was included in gain on arbitration settlement in the consolidated statement of operations in the fourth quarter of 2014. | |||||
The Settlement Agreement provided for a mutual release of claims and dismissed the Fanapt® Arbitration, which effectively settled a pre-existing non-contractual relationship. As a result, the Company recorded an $18.1 million gain on the settlement of arbitration, which represented the value of a potential future arbitration outcome. This amount was valued based on a probability weighted scenario analysis that took into consideration the probability of each potential future alternative outcomes of the arbitration between the parties. This amount is included in gain on arbitration settlement in the consolidated statement of operations in the fourth quarter of 2014. |
Earnings_per_Share
Earnings per Share | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Earnings per Share | 4. Earnings per Share | ||||||||
Basic earnings per share (EPS) is calculated by dividing the net loss by the weighted average number of shares of common stock outstanding. Diluted EPS is computed by dividing the net loss by the weighted average number of shares of common stock outstanding, plus potential outstanding common stock for the period. Potential outstanding common stock includes stock options and shares underlying RSUs, but only to the extent that their inclusion is dilutive. | |||||||||
The following table presents the calculation of basic and diluted net loss per share of common stock for the three months ended March 31, 2015 and 2014: | |||||||||
Three Months Ended | |||||||||
(in thousands, except for share and per share amounts) | March 31, | March 31, | |||||||
2015 | 2014 | ||||||||
Numerator: | |||||||||
Net loss | $ | (10,221 | ) | $ | (26,533 | ) | |||
Denominator: | |||||||||
Weighted average shares outstanding, basic and diluted | 41,744,948 | 33,678,706 | |||||||
Net loss per share, basic and diluted: | |||||||||
Net loss per share | $ | (0.24 | ) | $ | (0.79 | ) | |||
Antidilutive securities excluded from calculations of diluted net loss per share | 5,656,662 | 3,870,508 | |||||||
The Company incurred net losses for the three months ended March 31, 2015 and 2014 causing inclusion of any potentially dilutive securities to have an anti-dilutive effect, resulting in dilutive loss per share and basic loss per share attributable to common stockholders being equivalent. |
Marketable_Securities
Marketable Securities | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Marketable Securities | 5. Marketable Securities | ||||||||||||||||
The following is a summary of the Company’s available-for-sale marketable securities as of March 31, 2015, which all have contract maturities of less than one year: | |||||||||||||||||
March 31, 2015 | Amortized | Gross | Gross | Fair | |||||||||||||
Unrealized | Unrealized | Market | |||||||||||||||
(in thousands) | Cost | Gains | Losses | Value | |||||||||||||
U.S. Treasury and government agencies | $ | 47,992 | $ | 7 | $ | (3 | ) | $ | 47,996 | ||||||||
Corporate debt | 53,501 | 28 | (5 | ) | 53,524 | ||||||||||||
$ | 101,493 | $ | 35 | $ | (8 | ) | $ | 101,520 | |||||||||
The following is a summary of the Company’s available-for-sale marketable securities as of December 31, 2014: | |||||||||||||||||
December 31, 2014 | Amortized | Gross | Gross | Fair | |||||||||||||
Unrealized | Unrealized | Market | |||||||||||||||
(in thousands) | Cost | Gains | Losses | Value | |||||||||||||
U.S. Treasury and government agencies | $ | 30,618 | $ | 4 | $ | (4 | ) | $ | 30,618 | ||||||||
Corporate debt | 38,287 | 25 | (9 | ) | 38,303 | ||||||||||||
$ | 68,905 | $ | 29 | $ | (13 | ) | $ | 68,921 | |||||||||
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Fair Value Measurements | 6. Fair Value Measurements | ||||||||||||||||
Authoritative guidance establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: | |||||||||||||||||
• | Level 1 — defined as observable inputs such as quoted prices in active markets | ||||||||||||||||
• | Level 2 — defined as inputs other than quoted prices in active markets that are either directly or indirectly observable | ||||||||||||||||
• | Level 3 — defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions | ||||||||||||||||
Marketable securities classified in Level 1 and Level 2 as of March 31, 2015 and December 31, 2014 consist of available-for-sale marketable securities. The valuation of Level 1 instruments is determined using a market approach, and is based upon unadjusted quoted prices for identical assets in active markets. The valuation of investments classified in Level 2 also is determined using a market approach based upon quoted prices for similar assets in active markets, or other inputs that are observable for substantially the full term of the financial instrument. Level 2 securities include certificates of deposit, commercial paper and corporate notes that use as their basis readily observable market parameters. The Company did not transfer any assets between Level 2 and Level 1 during the three months ended March 31, 2015. | |||||||||||||||||
As of March 31, 2015, the Company held certain assets that are required to be measured at fair value on a recurring basis, as follows: | |||||||||||||||||
Fair Value Measurement as of March 31, 2015 Using | |||||||||||||||||
(in thousands) | March 31, | Quoted Prices in | Significant Other | Significant | |||||||||||||
2015 | Active Markets for | Observable Inputs | Unobservable | ||||||||||||||
Identical Assets | (Level 2) | Inputs | |||||||||||||||
(Level 1) | (Level 3) | ||||||||||||||||
Available-for-sale securities | $ | 101,520 | $ | 47,996 | $ | 53,524 | $ | — | |||||||||
As of December 31, 2014, the Company held certain assets that are required to be measured at fair value on a recurring basis, as follows: | |||||||||||||||||
Fair Value Measurement as of December 31, 2014 Using | |||||||||||||||||
(in thousands) | December 31, | Quoted Prices in | Significant Other | Significant | |||||||||||||
2014 | Active Markets for | Observable Inputs | Unobservable | ||||||||||||||
Identical Assets | (Level 2) | Inputs | |||||||||||||||
(Level 1) | (Level 3) | ||||||||||||||||
Available-for-sale securities | $ | 68,921 | $ | 30,618 | $ | 38,303 | $ | — | |||||||||
The Company also has financial assets and liabilities, not required to be measured at fair value on a recurring basis, which primarily consist of cash and cash equivalents, accounts receivable, restricted cash, accounts payable and accrued liabilities, the carrying value of which materially approximate their fair values. |
Inventory
Inventory | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Inventory | 7. Inventory | ||||||||
The Company evaluates expiry risk by evaluating current and future product demand relative to product shelf life. The Company builds demand forecasts by considering factors such as, but not limited to, overall market potential, market share, market acceptance and patient usage. Inventory consisted of the following as of March 31, 2015 and December 31, 2014: | |||||||||
(in thousands) | March 31, | December 31, | |||||||
2015 | 2014 | ||||||||
Raw materials | $ | 162 | $ | 198 | |||||
Work-in-process | 1,692 | 1,326 | |||||||
Finished goods | 3,069 | 3,394 | |||||||
Deferred cost of goods sold | 292 | 252 | |||||||
Total | $ | 5,215 | $ | 5,170 | |||||
Deferred cost of goods sold represents the cost of product shipped to Probiomed, for which revenue recognition has been deferred. See Note 2, Summary of Significant Accounting Policies, for a discussion of Fanapt® revenue recognition. |
Prepaid_Expenses_and_Other_Cur
Prepaid Expenses and Other Current Assets | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Prepaid Expenses and Other Current Assets | 8. Prepaid Expenses and Other Current Assets | ||||||||
The following is a summary of the Company’s prepaid expenses and other current assets as of March 31, 2015 and December 31, 2014: | |||||||||
(in thousands) | March 31, | December 31, | |||||||
2015 | 2014 | ||||||||
Prepaid insurance | $ | 52 | $ | 270 | |||||
Prepaid manufacturing cost | 346 | 358 | |||||||
Other prepaid expenses and vendor advances | 1,781 | 2,302 | |||||||
Other current assets | 324 | 154 | |||||||
Total prepaid expenses and other current assets | $ | 2,503 | $ | 3,084 | |||||
Intangible_Assets
Intangible Assets | 3 Months Ended | ||||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||||
Intangible Assets | 9. Intangible Assets | ||||||||||||||||||||||||||||
The following is a summary of the Company’s intangible asset as of March 31, 2015: | |||||||||||||||||||||||||||||
March 31, 2015 | |||||||||||||||||||||||||||||
(in thousands) | Estimated | Gross | Accumulated | Net | |||||||||||||||||||||||||
Useful Life | Carrying | Amortization | Carrying | ||||||||||||||||||||||||||
(Years) | Amount | Amount | |||||||||||||||||||||||||||
HETLIOZ® | January 2033 | $ | 33,000 | $ | 2,170 | $ | 30,830 | ||||||||||||||||||||||
Fanapt® | November 2016 | 27,941 | 11,191 | 16,750 | |||||||||||||||||||||||||
$ | 60,941 | $ | 13,361 | $ | 47,580 | ||||||||||||||||||||||||
The following is a summary of the Company’s intangible asset as of December 31, 2014: | |||||||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||||
(in thousands) | Estimated | Gross | Accumulated | Net | |||||||||||||||||||||||||
Useful Life | Carrying | Amortization | Carrying | ||||||||||||||||||||||||||
(Years) | Amount | Amount | |||||||||||||||||||||||||||
HETLIOZ® | January 2033 | $ | 8,000 | $ | 539 | $ | 7,461 | ||||||||||||||||||||||
Fanapt® | November 2016 | 27,941 | 8,678 | 19,263 | |||||||||||||||||||||||||
$ | 35,941 | $ | 9,217 | $ | 26,724 | ||||||||||||||||||||||||
In January 2014, the Company announced that the FDA had approved the NDA for HETLIOZ®. As a result of this approval, the Company met a milestone under its license agreement with Bristol-Myers Squibb (BMS) that required the Company to make a license payment of $8.0 million to BMS. The $8.0 million is being amortized on a straight-line basis over the remaining life of the U.S. patent for HETLIOZ®, which prior to June 2014, the Company expected to last until December 2022. In June 2014, the Company received a notice of allowance from the U.S. Patent and Trademark Office for a patent covering the method of use of HETLIOZ®. The patent expires in January 2033, thereby potentially extending the exclusivity protection in the U.S. beyond the composition of matter patent. As a result of the patent allowance, the Company extended the estimated useful life of the U.S. patent for HETLIOZ® from December 2022 to January 2033. | |||||||||||||||||||||||||||||
The Company is obligated to make a future milestone payment to BMS of $25.0 million in the event that cumulative worldwide sales of HETLIOZ® reach $250.0 million. The likelihood of achieving the milestone and the related milestone obligation was determined to be probable during the three months ended March 31, 2015. As a result ,the future obligation of $25.0 million was recorded as a non-current liability as of March 31, 2015 along with an addition of $25.0 million to capitalized intangible assets relating to HETLIOZ®. The $25.0 million was determined to be additional consideration for the acquisition of the HETLIOZ® intangible asset, which was created upon FDA approval on January 31, 2014. The actual payment of the $25.0 million will occur once the $250.0 million in cumulative worldwide sales of HETLIOZ® is realized. The $25.0 million is being amortized on a straight-line basis over the remaining life of the U.S. patent for HETLIOZ®, which is expected to be January 2033. Amortization of intangible assets relating to HETLIOZ® amounted to $1.6 million for the three months ended March 31, 2015 and includes a catch-up adjustment of $1.2 million to retroactively record cumulative amortization from January 31, 2014 to December 31, 2014 for the milestone obligation of $25.0 million. In future periods the Company expects annual amortization of capitalized intangible asset costs relating to HETLIOZ® will amount to $1.7 million until the expiration of the patent in 2033. | |||||||||||||||||||||||||||||
In 2009, the Company announced that the FDA had approved the NDA for Fanapt®. As a result of this approval, the Company met a milestone under its original sublicense agreement with Novartis that required the Company to make a license payment of $12.0 million to Novartis. The $12.0 million is being amortized on a straight-line basis over the remaining life of the U.S. composition of matter patent for Fanapt® to November 2016. | |||||||||||||||||||||||||||||
Pursuant to the Settlement Agreement, Novartis transferred all U.S. and Canadian rights in the Fanapt® franchise to the Company. As a result, the Company recognized an intangible asset of $15.9 million on December 31, 2014 related to the reacquired right to Fanapt®, which is being amortized on a straight-line basis through November 2016. The useful life estimation for the Fanapt® intangible asset is based on the market participant methodology prescribed by ASC 805, and therefore does not reflect the impact of additional Fanapt® patents solely owned by the Company with varying expiration dates, the latest of which is October 2030. See Note 3, Settlement Agreement with Novartis, for further discussion. | |||||||||||||||||||||||||||||
The intangible assets are being amortized over their estimated useful economic life using the straight-line method. Amortization expense was $4.1 million and $0.6 million for the three months ended March 31, 2015 and 2014, respectively. The following is a summary of the future intangible asset amortization schedule as of March 31, 2015: | |||||||||||||||||||||||||||||
(in thousands) | Total | Remainder | 2016 | 2017 | 2018 | 2019 | Thereafter | ||||||||||||||||||||||
of 2015 | |||||||||||||||||||||||||||||
HETLIOZ® | $ | 30,830 | $ | 1,290 | $ | 1,721 | $ | 1,721 | $ | 1,721 | $ | 1,721 | $ | 22,656 | |||||||||||||||
Fanapt® | 16,750 | 7,537 | 9,213 | — | — | — | — | ||||||||||||||||||||||
$ | 47,580 | $ | 8,827 | $ | 10,934 | $ | 1,721 | $ | 1,721 | $ | 1,721 | $ | 22,656 | ||||||||||||||||
Accrued_Liabilities
Accrued Liabilities | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Accrued Liabilities | 10. Accrued Liabilities | ||||||||
The following is a summary of the Company’s accrued liabilities as of March 31, 2015 and December 31, 2014: | |||||||||
(in thousands) | March 31, | December 31, | |||||||
2015 | 2014 | ||||||||
Accrued sales allowances | $ | 14,683 | $ | 495 | |||||
Accrued research and development expenses | 1,992 | 1,759 | |||||||
Accrued consulting and other professional fees | 6,923 | 2,522 | |||||||
Compensation and employee benefits | 1,106 | 388 | |||||||
Royalties payable | 4,167 | 602 | |||||||
Other accrued liabilities | 1,428 | 1,185 | |||||||
$ | 30,299 | $ | 6,951 | ||||||
Deferred_Revenue
Deferred Revenue | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Deferred Revenue | 11. Deferred Revenue | ||||||||
The following is a summary of changes in total deferred revenue for the three months ended March 31, 2015 and 2014: | |||||||||
Three Months Ended | |||||||||
(in thousands) | March 31, | March 31, | |||||||
2015 | 2014 | ||||||||
Balance beginning of period | $ | 174 | $ | 90,275 | |||||
Deferred Fanapt® product revenue | 239 | — | |||||||
Licensing revenue recognized | — | 7,452 | |||||||
Balance end of period | $ | 413 | $ | 82,823 | |||||
The Company entered into an amended and restated sublicense agreement with Novartis in 2009, pursuant to which Novartis had the right to commercialize and develop Fanapt® in the U.S. and Canada. Under the amended and restated sublicense agreement, the Company received an upfront payment of $200.0 million. The Company and Novartis established a Joint Steering Committee (JSC) following the effective date of the amended and restated sublicense agreement. The Company concluded that the JSC constitutes a deliverable under the amended and restated sublicense agreement and that revenue related to the upfront payment will be recognized ratably over the term of the JSC; however, the delivery or performance had no term as the exact length of the JSC is undefined. As a result, the Company deemed the performance period of the JSC to be the life of the U.S. patent of Fanapt®. Revenue related to the upfront payment was recognized ratably from the date the amended and restated sublicense agreement became effective (November 2009) through the expected duration of the Novartis commercialization of Fanapt® in the U.S. which was estimated to be through the expiry of the Fanapt® composition of patent, including a granted Hatch-Waxman extension (November 2016). During the year ended December 31, 2014, the Company recognized revenue of $30.7 million related to the license agreement. | |||||||||
In connection with the Settlement Agreement, the Company recognized the remaining deferred revenue balance of $59.5 million during the three months ended December 31, 2014, as part of the gain on arbitration settlement. See Note 3, Settlement Agreement with Novartis, for further discussion. |
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2015 | |
Income Taxes | 12. Income Taxes |
Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The fact that the Company has historically generated net operating losses (NOLs) serves as strong evidence that it is more likely than not that deferred tax assets will not be realized in the future. Therefore, the Company has a full valuation allowance against all deferred tax assets as of March 31, 2015 and December 31, 2014. Changes in ownership may limit the amount of NOL carryforwards that can be utilized in the future to offset taxable income. Ownership changes did occur as of December 31, 2014 and December 31, 2008. However, the Company believes that it had sufficient Built-In-Gain to offset the IRC Section 382 limitation generated by the ownership changes. Any future ownership changes may cause the Company’s existing tax attributes to have additional limitations. |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended | ||||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||||
Commitments and Contingencies | 13. Commitments and Contingencies | ||||||||||||||||||||||||||||
Operating leases | |||||||||||||||||||||||||||||
The following is a summary of the minimum annual future payments under operating leases as of March 31, 2015: | |||||||||||||||||||||||||||||
(in thousands) | Total | Remainder | 2016 | 2017 | 2018 | 2019 | Thereafter | ||||||||||||||||||||||
of 2015 | |||||||||||||||||||||||||||||
Operating leases | $ | 14,446 | $ | 1,131 | $ | 1,500 | $ | 1,538 | $ | 1,576 | $ | 1,616 | $ | 7,085 | |||||||||||||||
The minimum annual future payments for operating leases consists of the lease for office space for the Company’s headquarters located in Washington, D.C., which expires in 2023. | |||||||||||||||||||||||||||||
In 2011, the Company entered into an office lease with Square 54 Office Owner LLC (the Landlord) for Vanda’s current headquarters, consisting of 21,400 square feet at 2200 Pennsylvania Avenue, N.W. in Washington, D.C. (the Lease). Subject to the prior rights of other tenants in the building, the Company has the right to renew the Lease for five years following the expiration of its original term. The Company has the right to sublease or assign all or a portion of the premises, subject to standard conditions. The Lease may be terminated early by the Company or the Landlord upon certain conditions. | |||||||||||||||||||||||||||||
In March 2014, the Company and the Landlord entered into a lease amendment (the Lease Amendment). Under the Lease Amendment, the Company has the right to occupy an additional 8,860 square feet in the building. The Lease Amendment has a 12 year and one month term beginning on September 1, 2014, but may be terminated early by either the Landlord or the Company upon certain conditions. The Company will pay approximately $0.4 million in additional annual rent over the term of the Lease Amendment; however, rent is being abated for the first nine months. The Landlord will provide the Company with an allowance of approximately $0.8 million for construction on the premises to the Company’s specifications, subject to certain conditions. The allowance for tenant improvements will be reflected in the consolidated financial statements as an increase to capitalized leasehold improvements and an increase to deferred rent. Subject to the prior rights of other tenants in the building, the Company will have the right to renew the Lease Amendment for five years following the expiration of its original term. The Company will also have the right to sublease or assign all or a portion of the premises, subject to standard conditions. | |||||||||||||||||||||||||||||
Rent expense under operating leases, was $0.4 million and $0.4 million for the three months ended March 31, 2015 and 2014, respectively. | |||||||||||||||||||||||||||||
Guarantees and indemnifications | |||||||||||||||||||||||||||||
The Company has entered into a number of standard intellectual property indemnification agreements in the ordinary course of its business. Pursuant to these agreements, the Company indemnifies, holds harmless, and agrees to reimburse the indemnified party for losses suffered or incurred by the indemnified party, generally the Company’s business partners or customers, in connection with any U.S. patent or any copyright or other intellectual property infringement claim by any third party with respect to the Company’s products. The term of these indemnification agreements is generally perpetual from the date of execution of the agreement. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is unlimited. Since inception, the Company has not incurred costs to defend lawsuits or settle claims related to these indemnification agreements. The Company also indemnifies its officers and directors for certain events or occurrences, subject to certain conditions. | |||||||||||||||||||||||||||||
License agreements | |||||||||||||||||||||||||||||
The Company’s rights to develop and commercialize its products are subject to the terms and conditions of licenses granted to the Company by other pharmaceutical companies. | |||||||||||||||||||||||||||||
HETLIOZ®. In February 2004, the Company entered into a license agreement with BMS under which it received an exclusive worldwide license under certain patents and patent applications, and other licenses to intellectual property, to develop and commercialize HETLIOZ®. In partial consideration for the license, the Company paid BMS an initial license fee of $0.5 million. The Company made a milestone payment to BMS of $1.0 million under the license agreement in 2006 relating to the initiation of its first Phase III clinical trial for HETLIOZ®. As a result of the FDA acceptance of the Company’s NDA for HETLIOZ® for the treatment of Non-24 in July 2013, the Company incurred a $3.0 million milestone obligation under the license agreement with BMS. As a result of the FDA’s approval of the HETLIOZ® NDA in January 2014, the Company incurred an $8.0 million milestone obligation in the first quarter of 2014 under the same license agreement that was capitalized as an intangible asset and is being amortized over the expected HETLIOZ® patent life in the U.S. The Company is obligated to make a future milestone payment to BMS of $25.0 million in the event that cumulative worldwide sales of HETLIOZ® reach $250.0 million. During the first quarter of 2015, the likelihood of achieving the milestone and the related milestone obligation was determined to be probable. As such, the $25.0 million milestone obligation was capitalized as an intangible asset and is being amortized over the expected HETLIOZ® patent life in the U.S. The actual payment of the $25.0 million will occur once the $250.0 million in cumulative worldwide sales of HETLIOZ® is realized. Additionally, the Company is obligated to make royalty payments on HETLIOZ® net sales to BMS in any territory where the Company commercializes HETLIOZ® for a period equal to the greater of 10 years following the first commercial sale in the territory or the expiry of the new chemical entity patent in that territory. During the period prior to the expiry of the new chemical entity patent in a territory, the Company is obligated to pay a 10% royalty on net sales in that territory. The royalty rate is decreased by half for countries in which no new chemical entity patent existed or for the remainder of the 10 years after the expiry of the new chemical entity patent. The Company is also obligated under the license agreement to pay BMS a percentage of any sublicense fees, upfront payments and milestone and other payments (excluding royalties) that it receives from a third party in connection with any sublicensing arrangement, at a rate which is in the mid-twenties. The Company has agreed with BMS in the license agreement for HETLIOZ® to use its commercially reasonable efforts to develop and commercialize HETLIOZ®. | |||||||||||||||||||||||||||||
The license agreement was amended in April 2013 to add a process that would allow BMS to waive the right to develop and commercialize HETLIOZ® in those countries not covered by a development and commercialization agreement. Subsequent to the execution of the April 2013 amendment, BMS provided the Company with formal written notice that it irrevocably waived the option to exercise the right to reacquire any or all rights to any product (as defined in the license agreement) containing HETLIOZ®, or to develop or commercialize any such product, in the countries not covered by a development and commercialization agreement. | |||||||||||||||||||||||||||||
Either party may terminate the HETLIOZ® license agreement under certain circumstances, including a material breach of the agreement by the other. In the event the Company terminates the license, or if BMS terminates the license due to the Company’s breach, all rights licensed and developed by the Company under the license agreement will revert or otherwise be licensed back to BMS on an exclusive basis. | |||||||||||||||||||||||||||||
Fanapt®. Pursuant to the terms of the Settlement Agreement, Novartis transferred all U.S. and Canadian rights in the Fanapt® franchise to the Company on December 31, 2014. | |||||||||||||||||||||||||||||
A predecessor company of Sanofi, Hoechst Marion Roussel, Inc. (HMRI) discovered Fanapt® and completed early clinical work on the product. In 1996, following a review of its product portfolio, HMRI licensed its rights to the Fanapt® patents and patent applications to Titan Pharmaceuticals, Inc. (Titan) on an exclusive basis. In 1997, soon after it had acquired its rights, Titan sublicensed its rights to Fanapt® on an exclusive basis to Novartis. In June 2004, the Company acquired exclusive worldwide rights to these patents and patent applications, as well as certain Novartis patents and patent applications to develop and commercialize Fanapt®, through a sublicense agreement with Novartis. In partial consideration for this sublicense, the Company paid Novartis an initial license fee of $0.5 million and was obligated to make future milestone payments to Novartis (the majority of which were tied to sales milestones), as well as royalty payments to Novartis at a rate which, as a percentage of net sales, was in the mid-twenties. As a result of the FDA’s approval of the NDA for Fanapt® in May 2009, the Company met a milestone under the sublicense agreement, which required it to make a payment of $12.0 million to Novartis. | |||||||||||||||||||||||||||||
In October 2009, the Company entered into an amended and restated sublicense agreement with Novartis, which amended and restated the June 2004 sublicense agreement. Pursuant to the amended and restated sublicense agreement, Novartis has exclusive commercialization rights to all formulations of Fanapt® in the U.S. and Canada. Novartis began selling Fanapt® in the U.S. during the first quarter of 2010. Novartis was responsible for the further clinical development activities in the U.S. and Canada. Pursuant to the amended and restated sublicense agreement, the Company received an upfront payment of $200.0 million and was eligible for additional payments upon Novartis’ achievement of certain commercial and development milestones for Fanapt® in the U.S. and Canada. The Company also received royalties, which, as a percentage of net sales, were in the low double-digits, on net sales of Fanapt® in the U.S. and Canada. The Company retained exclusive rights to Fanapt® outside the U.S. and Canada and is obligated to make royalty payments to Sanofi S.A. on Fanapt® sales outside the U.S. and Canada. | |||||||||||||||||||||||||||||
The Company has entered into agreements with the following partners for the commercialization of Fanapt® in the countries set forth below: | |||||||||||||||||||||||||||||
Country | Partner | Market Approval Date | |||||||||||||||||||||||||||
Mexico | Probiomed S.A. de C.V. | October 2013 | |||||||||||||||||||||||||||
Israel | Megapharm Ltd. | August 2012 | |||||||||||||||||||||||||||
Pursuant to the terms of the Settlement Agreement, Novartis transferred all U.S. and Canadian rights in the Fanapt® franchise to the Company on December 31, 2014. The Company is obligated to make royalty payments to Sanofi, S.A. and Titan, at a percentage rate equal to 23% on annual U.S. net sales of Fanapt® up to $200.0 million, and at a percentage in the mid-twenties on sales over $200.0 million through November 2016. After the expiration of the new chemical entity patent in major markets (US, United Kingdom, Germany, France, Italy, Spain and Japan) and some non-major markets, the Company will have a fixed royalty obligation to Sanofi on Fanapt® net sales of up to 9%. See Note 3, Settlement Agreement with Novartis, for further information. | |||||||||||||||||||||||||||||
Tradipitant. In April 2012, the Company entered into a license agreement with Eli Lilly and Company (Lilly) pursuant to which the Company acquired an exclusive worldwide license under certain patents and patent applications, and other licenses to intellectual property, to develop and commercialize an NK-1R antagonist, tradipitant, for all human indications. The patent describing tradipitant as a new chemical entity expires in April 2023, except in the U.S., where it expires in June 2024 absent any applicable patent term adjustments. | |||||||||||||||||||||||||||||
Pursuant to the license agreement, the Company paid Lilly an initial license fee of $1.0 million and will be responsible for all development costs. The initial license fee was recognized as research and development expense in the consolidated statement of operations for the year ended December 31, 2012. Lilly is also eligible to receive additional payments based upon achievement of specified development and commercialization milestones as well as tiered-royalties on net sales at percentage rates up to the low double digits. These milestones include $4.0 million for pre-NDA approval milestones and up to $95.0 million for future regulatory approval and sales milestones. Vanda is obligated to use its commercially reasonable efforts to develop and commercialize tradipitant. | |||||||||||||||||||||||||||||
Either party may terminate the license agreement under certain circumstances, including a material breach of the license agreement by the other. In the event that Vanda terminates the license agreement, or if Lilly terminates due to Vanda’s breach or for certain other reasons set forth in the license agreement, all rights licensed and developed by Vanda under the license agreement will revert or otherwise be licensed back to Lilly on an exclusive basis, subject to payment by Lilly to the Company of a royalty on net sales of products that contain tradipitant. | |||||||||||||||||||||||||||||
AQW051. In connection with the Settlement Agreement, the Company received an exclusive worldwide license under certain patents and patent applications, and other licenses to intellectual property, to develop and commercialize AQW051, a Phase II alpha-7 nicotinic acetylcholine receptor partial agonist. | |||||||||||||||||||||||||||||
Pursuant to the license agreement, the Company is obligated to use its commercially reasonable efforts to develop and commercialize AQW051 and is responsible for all development costs under the AQW051 license agreement. The Company has no milestone obligations; however, Novartis is eligible to receive tiered-royalties on net sales at percentage rates up to the mid-teens. | |||||||||||||||||||||||||||||
Research and development and marketing agreements | |||||||||||||||||||||||||||||
In the course of its business, the Company regularly enters into agreements with clinical organizations to provide services relating to clinical development and clinical manufacturing activities under fee service arrangements. The Company’s current agreements for clinical services may be terminated on generally 60 days’ notice without incurring additional charges, other than charges for work completed but not paid for through the effective date of termination and other costs incurred by the Company’s contractors in closing out work in progress as of the effective date of termination. |
Legal_Matters
Legal Matters | 3 Months Ended |
Mar. 31, 2015 | |
Legal Matters | 14. Legal Matters |
In June 2014, the Company filed suit against Roxane Laboratories, Inc. (Roxane) in the U.S. District Court for the District of Delaware. The suit seeks an adjudication that Roxane has infringed one or more claims of the Company’s U.S. Patent No. 8,586,610 (the Patent) by submitting to the FDA an Abbreviated New Drug Application (ANDA) for generic versions of Fanapt® oral tablets in 1 mg, 2 mg, 4 mg, 6 mg, 8 mg, 10 mg, and 12 mg strengths. The relief requested by the Company includes a request for a permanent injunction preventing Roxane from infringing the asserted claims of the Patent by engaging in the manufacture, use, offer to sell, sale, importation or distribution of generic versions of Fanapt® before the expiration of the Patent in 2027. | |
Pursuant to the Settlement Agreement, the Company assumed Novartis’ patent infringement action against Roxane in the U.S. District Court for the District of Delaware. The suit alleges that Roxane’s filing of an ANDA for generic iloperidone with a paragraph IV certification infringes Sanofi’s new chemical entity patent. Roxane is defending on the grounds that the patent claims are invalid or unenforceable or that certain patent claims are not infringed. Roxane also filed a motion to dismiss on the grounds that the court lacks jurisdiction. | |
The two pending cases against Roxane were consolidated by agreement of the parties in April 2015 and are scheduled to be tried together in a four-day bench trial beginning on February 29, 2016. | |
In May 2015, the Company announced that it filed a lawsuit in the U.S. District Court for the District of Delaware against Inventia Healthcare Pvt. Ltd. (Inventia) for patent infringement. The lawsuit was filed as a result of Inventia submitting an ANDA seeking approval for generic versions of Fanapt® prior to the expiration of the Patent. Vanda received Inventia’s paragraph IV notice regarding the Patent on April 3, 2015. |
Employee_StockBased_Compensati
Employee Stock-Based Compensation | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Employee Stock-Based Compensation | 15. Employee Stock-Based Compensation | ||||||||||||||||
Compensation costs for all stock-based awards to employees and directors are measured based on the grant date fair value of those awards and recognized over the period during which the employee or director is required to perform service in exchange for the award. The Company recognizes the expense over the award’s vesting period. | |||||||||||||||||
The fair value of stock options granted and RSUs awarded are amortized using the straight-line method. As stock-based compensation expense recognized in the consolidated statements of operations is based on awards ultimately expected to vest, it has been reduced for estimated forfeitures. Forfeitures are required to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. | |||||||||||||||||
The fair value of each option award is estimated on the date of grant using the Black-Scholes-Merton option pricing model that uses the assumptions noted in the following table. Expected volatility rates are based on the historical volatility of the Company’s publicly traded common stock and other factors. The risk-free interest rates are based on the U.S. Treasury yield for a period consistent with the expected term of the option in effect at the time of the grant. The Company has not paid dividends to its stockholders since its inception (other than a dividend of preferred share purchase rights, which was declared in September 2008) and does not plan to pay dividends in the foreseeable future. | |||||||||||||||||
Assumptions used in the Black-Scholes-Merton option pricing model for employee and director stock options granted during the three months ended March 31, 2015 and 2014 were as follows: | |||||||||||||||||
Three Months Ended | |||||||||||||||||
March 31, | March 31, | ||||||||||||||||
2015 | 2014 | ||||||||||||||||
Expected dividend yield | 0 | % | 0 | % | |||||||||||||
Weighted average expected volatility | 61 | % | 66 | % | |||||||||||||
Weighted average expected term (years) | 5.97 | 5.85 | |||||||||||||||
Weighted average risk-free rate | 1.59 | % | 1.79 | % | |||||||||||||
Weighted average fair value per share | $ | 6.14 | $ | 7.9 | |||||||||||||
Total employee stock-based compensation expense related to stock-based awards for the three months ended March 31, 2015 and 2014 was comprised of the following: | |||||||||||||||||
Three Months Ended | |||||||||||||||||
(in thousands) | March 31, | March 31, | |||||||||||||||
2015 | 2014 | ||||||||||||||||
Research and development | $ | 603 | $ | 442 | |||||||||||||
Selling, general and administrative | 1,321 | 912 | |||||||||||||||
$ | 1,924 | $ | 1,354 | ||||||||||||||
As of March 31, 2015, the Company had two equity incentive plans, the Second Amended and Restated Management Equity Plan (the 2004 Plan) and the 2006 Equity Incentive Plan (the 2006 Plan) that were adopted in December 2004 and April 2006, respectively. An aggregate of 594,082 shares were subject to outstanding options granted under the 2004 Plan as of March 31, 2015, and no additional options will be granted under this plan. As of March 31, 2015, there were 11,829,472 shares of the Company’s common stock reserved for issuance under the 2006 Plan, of which 7,505,463 shares were subject to outstanding options and RSUs granted to employees and non-employees and 1,930,220 shares remained available for future grant. On January 1 of each year, the number of shares reserved under the 2006 Plan is automatically increased by the lesser of 4% of the total number of shares of common stock that are outstanding at that time or 1,500,000 shares (or such lesser number as may be approved by the Company’s board of directors). As of January 1, 2015, the number of shares of common stock that may be issued under the 2006 Plan was automatically increased by 1,500,000 shares, increasing the number of shares of common stock available for issuance under the Plan to 11,829,472 shares. | |||||||||||||||||
The Company has granted option awards with service conditions (service option awards) that are subject to terms and conditions established by the compensation committee of the board of directors. Service option awards have 10-year contractual terms and all service option awards granted prior to December 31, 2006, service option awards granted to new employees, and certain service option awards granted to existing employees vest and become exercisable on the first anniversary of the grant date with respect to the 25% of the shares subject to service option awards. The remaining 75% of the shares subject to the service option awards vest and become exercisable monthly in equal installments thereafter over three years. Certain service option awards granted to existing employees after December 31, 2006 vest and become exercisable monthly in equal installments over four years. The initial service option awards granted to directors upon their election vest and become exercisable in equal monthly installments over a period of four years, while the subsequent annual service option awards granted to directors vest and become exercisable in equal monthly installments over a period of one year. Certain service option awards to executives and directors provide for accelerated vesting if there is a change in control of the Company. Certain service option awards to employees and executives provide for accelerated vesting if the respective employee’s or executive’s service is terminated by the Company for any reason other than cause or permanent disability. As of March 31, 2015, $15.0 million of unrecognized compensation costs related to unvested service option awards are expected to be recognized over a weighted average period of 1.7 years. No option awards are classified as a liability as of March 31, 2015. | |||||||||||||||||
A summary of option activity for the 2004 Plan for the three months ended March 31, 2015 follows: | |||||||||||||||||
2004 Option Plan | Weighted Average | Weighted Average | Aggregate | ||||||||||||||
(in thousands, except for share and per share amounts) | Number of | Exercise Price at | Remaining Term | Intrinsic | |||||||||||||
Shares | Grant Date | (Years) | Value | ||||||||||||||
Outstanding at December 31, 2014 | 652,810 | 1.74 | 0.78 | 8,212 | |||||||||||||
Expired | — | ||||||||||||||||
Exercised | (58,728 | ) | 1.12 | 590 | |||||||||||||
Outstanding at March 31, 2015 | 594,082 | 1.8 | 0.58 | 4,455 | |||||||||||||
Exercisable at March 31, 2015 | 594,082 | 1.8 | 0.58 | 4,455 | |||||||||||||
Vested and expected to vest at March 31, 2015 | 594,082 | 1.8 | 0.58 | 4,455 | |||||||||||||
A summary of option activity for the 2006 Plan for the three months ended March 31, 2015 follows: | |||||||||||||||||
2006 Option Plan | Weighted Average | Weighted Average | Aggregate | ||||||||||||||
(in thousands, except for share and per share amounts) | Number of | Exercise Price at | Remaining Term | Intrinsic | |||||||||||||
Shares | Grant Date | (Years) | Value | ||||||||||||||
Outstanding at December 31, 2014 | 6,227,112 | 11.58 | 6.71 | 28,523 | |||||||||||||
Granted | 459,000 | 11.61 | |||||||||||||||
Forfeited | (89,893 | ) | 11.39 | ||||||||||||||
Expired | — | ||||||||||||||||
Exercised | (42,562 | ) | 4.59 | 254 | |||||||||||||
Outstanding at March 31, 2015 | 6,553,657 | 11.63 | 6.66 | 8,878 | |||||||||||||
Exercisable at March 31, 2015 | 4,023,610 | 12.22 | 5.13 | 6,788 | |||||||||||||
Vested and expected to vest at March 31, 2015 | 6,324,233 | 11.63 | 6.56 | 8,835 | |||||||||||||
Proceeds from the exercise of stock options amounted to $0.2 million for the three months ended March 31, 2015. | |||||||||||||||||
An RSU is a stock award that entitles the holder to receive shares of the Company’s common stock as the award vests. The fair value of each RSU is based on the closing price of the Company’s stock on the date of grant. The Company has granted RSUs with service conditions (service RSUs) that vest in four equal annual installments provided that the employee remains employed with the Company. As of March 31, 2015, $9.6 million of unrecognized compensation costs related to unvested service RSUs are expected to be recognized over a weighted average period of 2.1 years. No service RSUs are classified as a liability as of March 31, 2015. | |||||||||||||||||
A summary of RSU activity for the 2006 Plan for the three months ended March 31, 2015 follows: | |||||||||||||||||
RSUs | Number of | Weighted | |||||||||||||||
Shares | Average | ||||||||||||||||
Underlying | Grant Date | ||||||||||||||||
RSUs | Fair Value | ||||||||||||||||
Unvested at December 31, 2014 | 1,025,961 | $ | 9.94 | ||||||||||||||
Granted | 188,000 | 11.64 | |||||||||||||||
Forfeited | (31,062 | ) | 11.33 | ||||||||||||||
Vested | (231,093 | ) | 7.96 | ||||||||||||||
Unvested at March 31, 2015 | 951,806 | 10.71 | |||||||||||||||
The grant date fair value for the 231,093 shares underlying RSUs that vested during the three months ended March 31, 2015 was $1.8 million. |
Business_Organization_and_Pres1
Business Organization and Presentation (Policies) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Business Organization | Business Organization | ||||||||
Vanda Pharmaceuticals Inc. (Vanda or the Company) is a biopharmaceutical company focused on the development and commercialization of products for the treatment of central nervous system disorders. Vanda commenced its operations in 2003 and the Company’s portfolio includes the following products: | |||||||||
• | HETLIOZ® (tasimelteon), a product for the treatment of Non-24-Hour Sleep-Wake Disorder (Non-24) for which a New Drug Application (NDA) was approved by the U.S. Food and Drug Administration (FDA) in January 2014 and launched commercially in the U.S. in April 2014. In April 2015, the European Medicines Agency’s (EMA) Committee for Medicinal Products for Human Use (CHMP) adopted a positive opinion recommending approval of HETLIOZ® for the treatment of Non-24 in totally blind adults in the European Union (EU). The CHMP positive opinion will be reviewed by the European Commission (EC). If approved, the EC grants a centralized marketing authorization with unified labeling that is valid in the 28 countries that are members of the EU, as well as European Economic Area members Iceland, Liechtenstein and Norway. The EC final decision is expected mid-year 2015. HETLIOZ® has potential utility in a number of circadian rhythm disorders. Ongoing HETLIOZ® life cycle management activities include an observation study in Smith-Magenis Syndrome (SMS) and a clinical development plan is being develop for pediatric Non-24. In addition, the Company is evaluating the use of HETLIOZ® in other circadian rhythm indications and exploring the creation of a new liquid formulation of HETLIOZ®. | ||||||||
• | Fanapt® (iloperidone), a product for the treatment of schizophrenia, the oral formulation of which was being marketed and sold in the U.S. by Novartis Pharma AG (Novartis) until December 31, 2014. On December 31, 2014, Novartis transferred all the U.S. and Canadian commercial rights to the Fanapt® franchise to the Company. See Note 3, Settlement Agreement with Novartis, for further information. Additionally, the Company’s distribution partners launched Fanapt® in Israel and Mexico in 2014. | ||||||||
• | Tradipitant (VLY-686), a small molecule neurokinin-1 receptor (NK-1R) antagonist, which is presently in clinical development for the treatment of chronic pruritus in atopic dermatitis. Results from a Phase II study for the treatment of chronic pruritus in atopic dermatitis were announced in March 2015. Clinical evaluation is ongoing to assess potential future development activities. | ||||||||
• | Trichostatin A, a small molecule histone deacetylase (HDAC) inhibitor. | ||||||||
• | AQW051, a Phase II alpha-7 nicotinic acetylcholine receptor partial agonist. | ||||||||
Basis of Presentation | Basis of Presentation | ||||||||
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with the Company’s consolidated financial statements for the fiscal year ended December 31, 2014 included in the Company’s annual report on Form 10-K. The financial information as of March 31, 2015 and for the three months ended March 31, 2015 and 2014 is unaudited, but in the opinion of management, all adjustments, consisting only of normal recurring accruals, considered necessary for a fair statement of the results for these interim periods have been included. The condensed consolidated balance sheet data as of December 31, 2014 was derived from audited financial statements but does not include all disclosures required by GAAP. | |||||||||
The results of the Company’s operations for any interim period are not necessarily indicative of the results that may be expected for any other interim period or for a full fiscal year. The financial information included herein should be read in conjunction with the consolidated financial statements and notes in the Company’s annual report on Form 10-K for the fiscal year ended December 31, 2014. | |||||||||
Use of Estimates | Use of Estimates | ||||||||
The preparation of financial statements in conformity with GAAP requires management to make estimates that affect the reported amounts of assets and liabilities at the date of the financial statements, disclosure of contingent assets and liabilities, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. | |||||||||
Inventory | Inventory | ||||||||
Inventory, which is recorded at the lower of cost or market, includes the cost of third-party manufacturing and other direct and indirect costs and is valued using the first-in, first-out method. The Company capitalizes inventory costs associated with its products upon regulatory approval when, based on management’s judgment, future commercialization is considered probable and the future economic benefit is expected to be realized; otherwise, such costs are expensed as research and development. Inventory is evaluated for impairment by consideration of factors such as lower of cost or market, net realizable value, obsolescence or expiry. | |||||||||
Net Product Sales | Net Product Sales | ||||||||
The Company’s net product sales consist of sales of HETLIOZ® and, beginning in 2015, sales of Fanapt®. Net sales by product for the three months ended March 31, 2015 and 2014 were as follows: | |||||||||
Three Months Ended | |||||||||
March 31, | March 31, | ||||||||
(in thousands) | 2015 | 2014 | |||||||
HETLIOZ® product sales, net | $ | 7,460 | $ | — | |||||
Fanapt® product sales, net | 14,690 | — | |||||||
$ | 22,150 | $ | — | ||||||
The Company applies the revenue recognition guidance in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Subtopic 605-15, Revenue Recognition—Products. The Company recognizes revenue from product sales when there is persuasive evidence that an arrangement exists, title to product and associated risk of loss has passed to the customer, the price is fixed or determinable, collectability is reasonably assured and the Company has no further performance obligations. | |||||||||
HETLIOZ® is only available in the U.S. for distribution through a limited number of specialty pharmacies, and is not available in retail pharmacies. Fanapt® is available in the U.S. for distribution through a limited number of wholesalers and is available in retail pharmacies. The Company invoices and records revenue when its customers, specialty pharmacies and wholesalers, receive product from the third-party logistics warehouse. Revenues and accounts receivable are concentrated with these customers. The top six customers represented 95% of total revenues for the three months ended March 31, 2015, and the top three customers represented 80% of accounts receivable at March 31, 2015. The Company has not experienced any losses relating to receivables from customers. | |||||||||
The Company has entered into distribution agreements with Probiomed S.A. de C.V. (Probiomed) for the commercialization of Fanapt® in Mexico and Megapharm Ltd. for the commercialization of Fanapt® in Israel. With the exception of sales to Probiomed, the Company invoices and records revenue upon delivery of Fanapt® to the distribution partner. The Probiomed distribution agreement contains a contracted delivery price plus a revenue sharing provision based on Probiomed’s sales of Fanapt®. As a result, the selling price of Fanapt® is not fixed or determinable upon delivery of Fanapt® to Probiomed. The Company defers revenue recognition until the revenue sharing provision is calculated. As of March 31, 2015, the Company recorded $0.4 million of deferred revenue related to Fanapt® sales. | |||||||||
Product Sales Discounts and Allowances | |||||||||
The Company’s product sales are recorded net of applicable discounts, chargebacks, rebates, co-pay assistance, service fees and product returns that are applicable for various government and commercial payors. Reserves established for discounts and returns are classified as reductions of accounts receivable if the amount is payable to direct customers, with the exception of service fees. Service fees are classified as a liability. Reserves established for chargebacks, rebates or co-pay assistance are classified as a liability if the amount is payable to a party other than customers. The Company currently records sales allowances for the following: | |||||||||
Rebates: Allowances for rebates include mandated and supplemental discounts under the Medicaid Drug Rebate Program as well as contracted rebate programs with other payors. Rebate amounts owed after the final dispensing of the product to a benefit plan participant are based upon contractual agreements or legal requirements with public sector benefit providers, such as Medicaid. The allowance for rebates is based on statutory or contracted discount rates and expected utilization. Estimates for the expected utilization of rebates are based on historical activity and, where available, actual and pending prescriptions for which the Company has validated the insurance benefits. Rebates are generally invoiced and paid in arrears, such that the accrual balance consists of an estimate of the amount expected to be incurred for the current quarter’s activity, plus an accrual balance for known prior quarter’s unpaid rebates. If actual future invoicing varies from estimates, the Company may need to adjust accruals, which would affect net revenue in the period of adjustment. | |||||||||
Chargebacks: Chargebacks are discounts that occur when contracted customers purchase directly from specialty pharmacies and wholesalers. Contracted customers, which currently consist primarily of Public Health Service institutions, non-profit clinics, and Federal government entities purchasing via the Federal Supply Schedule, generally purchase the product at a discounted price. The specialty pharmacy or wholesaler, in turn, charges back the difference between the price initially paid by the specialty pharmacy or wholesaler and the discounted price paid to the specialty pharmacy or wholesaler by the contracted customer. The allowance for chargebacks is based on historical activity and, where available, actual and pending prescriptions for which the Company has validated the insurance benefits. | |||||||||
Medicare Part D Coverage Gap: Medicare Part D prescription drug benefit mandates manufacturers to fund approximately 50% of the Medicare Part D insurance coverage gap for prescription drugs sold to eligible patients. Estimates for expected Medicare Part D coverage gap are based in part on historical activity and, where available, actual and pending prescriptions for which the Company has validated the insurance benefits. Funding of the coverage gap is generally invoiced and paid in arrears so that the accrual balance consists of an estimate of the amount expected to be incurred for the current quarter’s activity, plus an accrual balance for known prior quarter activity. If actual future funding varies from estimates, the Company may need to adjust accruals, which would affect net revenue in the period of adjustment. | |||||||||
Service Fees: The Company also incurs specialty pharmacy and wholesaler fees for services and their data. These fees are based on contracted terms and are known amounts. The Company accrues service fees at the time of revenue recognition, resulting in a reduction of product sales and the recognition of an accrued liability, unless it receives an identifiable and separate benefit for the consideration and it can reasonably estimate the fair value of the benefit received. In which case, service fees are recorded as selling, general and administrative expense. | |||||||||
Co-payment Assistance: Patients who have commercial insurance and meet certain eligibility requirements may receive co-payment assistance. Co-pay assistance utilization is based on information provided by the Company’s third-party administrator. The allowance for co-pay assistance is based on actual sales and an estimate for pending sales based on either historical activity or pending sales for which the Company has validated the insurance benefits. | |||||||||
Prompt-pay: Specialty pharmacies and wholesalers are offered discounts for prompt payment. The Company expects that the specialty pharmacies and wholesalers will earn prompt payment discounts and, therefore, deducts the full amount of these discounts from total product sales when revenues are recognized. | |||||||||
Product Returns: Consistent with industry practice, the Company generally offers direct customers a limited right to return as defined within the Company’s returns policy. The Company considers several factors in the estimation process, including historical return activity, expiration dates of product shipped to specialty pharmacies, inventory levels within the distribution channel, product shelf life, prescription trends and other relevant factors. | |||||||||
Stock-based Compensation | Stock-based Compensation | ||||||||
Compensation costs for all stock-based awards to employees and directors are measured based on the grant date fair value of those awards and recognized over the period during which the employee or director is required to perform service in exchange for the award. The Company generally recognizes the expense over the award’s vesting period. The fair value of restricted stock units (RSUs) awarded is also amortized using the straight line method. Stock-based compensation expense recognized in the consolidated statements of operations is based on awards ultimately expected to vest. Therefore, it has been reduced for estimated forfeitures. Forfeitures are required to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. | |||||||||
Advertising Expense | Advertising Expense | ||||||||
The Company expenses the costs of advertising, including branded promotional expenses, as incurred. Branded advertising expenses, recorded in selling, general and administrative expenses, were $1.0 million and $0.9 million for the three months ended March 31, 2015 and 2014, respectively. | |||||||||
Segment Reporting | Segment Reporting | ||||||||
The Company operates in one reporting segment and, accordingly, no segment disclosures are presented herein. | |||||||||
Recent accounting pronouncements | Recent accounting pronouncements | ||||||||
In January 2015, the Financial Accounting Standards board (FASB) issued Accounting Standards Update (ASU) 2015-01, Income Statement-Extraordinary and Unusual Items, to simplify income statement classification by removing the concept of extraordinary items from U.S. GAAP. As a result, items that are both unusual and infrequent will no longer be separately reported net of tax after continuing operations. The new standard is effective for both public and private companies for periods beginning after December 15, 2015. Adoption of this new standard is not expected to have a material impact on the Company’s consolidated financial statements. | |||||||||
In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements – Going Concern. The new standard requires management of public and private companies to evaluate whether there is substantial doubt about the entity’s ability to continue as a going concern and, if so, disclose that fact. Management will also be required to evaluate and disclose whether its plans alleviate that doubt. The new standard is effective for annual periods ending after December 15, 2016, and interim periods within annual periods beginning after December 15, 2016. Adoption of this new standard is not expected to have a material impact on the Company’s consolidated financial statements. | |||||||||
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). This new standards requires companies to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which a company expects to be entitled in exchange for those goods or services. Under the new standard, revenue is recognized when a customer obtains control of a good or service. The standard allows for two transition methods - entities can either apply the new standard (i) retrospectively to each prior reporting period presented, or (ii) retrospectively with the cumulative effect of initially applying the standard recognized at the date of initial adoption. The new standard is effective for public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption of the standard is prohibited. The Company is evaluating this standard to determine if adoption will have a material impact on the Company’s consolidated financial statements. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Net Sales by Product | The Company’s net product sales consist of sales of HETLIOZ® and, beginning in 2015, sales of Fanapt®. Net sales by product for the three months ended March 31, 2015 and 2014 were as follows: | ||||||||
Three Months Ended | |||||||||
March 31, | March 31, | ||||||||
(in thousands) | 2015 | 2014 | |||||||
HETLIOZ® product sales, net | $ | 7,460 | $ | — | |||||
Fanapt® product sales, net | 14,690 | — | |||||||
$ | 22,150 | $ | — | ||||||
Settlement_Agreement_with_Nova1
Settlement Agreement with Novartis (Tables) | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Fair Value of Consideration Exchanged as Part of Settlement Agreement | The following summarizes the fair value of consideration exchanged as part of the Settlement Agreement: | ||||
(in thousands) | |||||
Equity issued | $ | 25,904 | |||
Cash received | (25,000 | ) | |||
Settlement of pre-existing non-contractual relationship | 18,087 | ||||
$ | 18,991 | ||||
Assets Acquired and Recorded at Fair Value | Assets acquired and recorded at fair value as of December 31, 2014 were as follows: | ||||
(in thousands) | |||||
Inventory | $ | 2,960 | |||
Intangible - Re-acquired right | 15,940 | ||||
Prepaid services | 91 | ||||
$ | 18,991 | ||||
Earnings_per_Share_Tables
Earnings per Share (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Basic and Diluted Net Loss Per Share of Common Stock | The following table presents the calculation of basic and diluted net loss per share of common stock for the three months ended March 31, 2015 and 2014: | ||||||||
Three Months Ended | |||||||||
(in thousands, except for share and per share amounts) | March 31, | March 31, | |||||||
2015 | 2014 | ||||||||
Numerator: | |||||||||
Net loss | $ | (10,221 | ) | $ | (26,533 | ) | |||
Denominator: | |||||||||
Weighted average shares outstanding, basic and diluted | 41,744,948 | 33,678,706 | |||||||
Net loss per share, basic and diluted: | |||||||||
Net loss per share | $ | (0.24 | ) | $ | (0.79 | ) | |||
Antidilutive securities excluded from calculations of diluted net loss per share | 5,656,662 | 3,870,508 | |||||||
Marketable_Securities_Tables
Marketable Securities (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Summary of Available-for-Sale Marketable Securities | The following is a summary of the Company’s available-for-sale marketable securities as of March 31, 2015, which all have contract maturities of less than one year: | ||||||||||||||||
March 31, 2015 | Amortized | Gross | Gross | Fair | |||||||||||||
Unrealized | Unrealized | Market | |||||||||||||||
(in thousands) | Cost | Gains | Losses | Value | |||||||||||||
U.S. Treasury and government agencies | $ | 47,992 | $ | 7 | $ | (3 | ) | $ | 47,996 | ||||||||
Corporate debt | 53,501 | 28 | (5 | ) | 53,524 | ||||||||||||
$ | 101,493 | $ | 35 | $ | (8 | ) | $ | 101,520 | |||||||||
The following is a summary of the Company’s available-for-sale marketable securities as of December 31, 2014: | |||||||||||||||||
December 31, 2014 | Amortized | Gross | Gross | Fair | |||||||||||||
Unrealized | Unrealized | Market | |||||||||||||||
(in thousands) | Cost | Gains | Losses | Value | |||||||||||||
U.S. Treasury and government agencies | $ | 30,618 | $ | 4 | $ | (4 | ) | $ | 30,618 | ||||||||
Corporate debt | 38,287 | 25 | (9 | ) | 38,303 | ||||||||||||
$ | 68,905 | $ | 29 | $ | (13 | ) | $ | 68,921 | |||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Assets Measured at Fair Value on Recurring Basis | As of March 31, 2015, the Company held certain assets that are required to be measured at fair value on a recurring basis, as follows: | ||||||||||||||||
Fair Value Measurement as of March 31, 2015 Using | |||||||||||||||||
(in thousands) | March 31, | Quoted Prices in | Significant Other | Significant | |||||||||||||
2015 | Active Markets for | Observable Inputs | Unobservable | ||||||||||||||
Identical Assets | (Level 2) | Inputs | |||||||||||||||
(Level 1) | (Level 3) | ||||||||||||||||
Available-for-sale securities | $ | 101,520 | $ | 47,996 | $ | 53,524 | $ | — | |||||||||
As of December 31, 2014, the Company held certain assets that are required to be measured at fair value on a recurring basis, as follows: | |||||||||||||||||
Fair Value Measurement as of December 31, 2014 Using | |||||||||||||||||
(in thousands) | December 31, | Quoted Prices in | Significant Other | Significant | |||||||||||||
2014 | Active Markets for | Observable Inputs | Unobservable | ||||||||||||||
Identical Assets | (Level 2) | Inputs | |||||||||||||||
(Level 1) | (Level 3) | ||||||||||||||||
Available-for-sale securities | $ | 68,921 | $ | 30,618 | $ | 38,303 | $ | — |
Inventory_Tables
Inventory (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Inventory | Inventory consisted of the following as of March 31, 2015 and December 31, 2014: | ||||||||
(in thousands) | March 31, | December 31, | |||||||
2015 | 2014 | ||||||||
Raw materials | $ | 162 | $ | 198 | |||||
Work-in-process | 1,692 | 1,326 | |||||||
Finished goods | 3,069 | 3,394 | |||||||
Deferred cost of goods sold | 292 | 252 | |||||||
Total | $ | 5,215 | $ | 5,170 | |||||
Prepaid_Expenses_and_Other_Cur1
Prepaid Expenses and Other Current Assets (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Summary of Prepaid Expenses, and Other Current Assets | The following is a summary of the Company’s prepaid expenses and other current assets as of March 31, 2015 and December 31, 2014: | ||||||||
(in thousands) | March 31, | December 31, | |||||||
2015 | 2014 | ||||||||
Prepaid insurance | $ | 52 | $ | 270 | |||||
Prepaid manufacturing cost | 346 | 358 | |||||||
Other prepaid expenses and vendor advances | 1,781 | 2,302 | |||||||
Other current assets | 324 | 154 | |||||||
Total prepaid expenses and other current assets | $ | 2,503 | $ | 3,084 | |||||
Intangible_Assets_Tables
Intangible Assets (Tables) | 3 Months Ended | ||||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||||
Summary of Intangible Asset | The following is a summary of the Company’s intangible asset as of March 31, 2015: | ||||||||||||||||||||||||||||
March 31, 2015 | |||||||||||||||||||||||||||||
(in thousands) | Estimated | Gross | Accumulated | Net | |||||||||||||||||||||||||
Useful Life | Carrying | Amortization | Carrying | ||||||||||||||||||||||||||
(Years) | Amount | Amount | |||||||||||||||||||||||||||
HETLIOZ® | January 2033 | $ | 33,000 | $ | 2,170 | $ | 30,830 | ||||||||||||||||||||||
Fanapt® | November 2016 | 27,941 | 11,191 | 16,750 | |||||||||||||||||||||||||
$ | 60,941 | $ | 13,361 | $ | 47,580 | ||||||||||||||||||||||||
The following is a summary of the Company’s intangible asset as of December 31, 2014: | |||||||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||||
(in thousands) | Estimated | Gross | Accumulated | Net | |||||||||||||||||||||||||
Useful Life | Carrying | Amortization | Carrying | ||||||||||||||||||||||||||
(Years) | Amount | Amount | |||||||||||||||||||||||||||
HETLIOZ® | January 2033 | $ | 8,000 | $ | 539 | $ | 7,461 | ||||||||||||||||||||||
Fanapt® | November 2016 | 27,941 | 8,678 | 19,263 | |||||||||||||||||||||||||
$ | 35,941 | $ | 9,217 | $ | 26,724 | ||||||||||||||||||||||||
Summary of Future Intangible Asset Amortization | The following is a summary of the future intangible asset amortization schedule as of March 31, 2015: | ||||||||||||||||||||||||||||
(in thousands) | Total | Remainder | 2016 | 2017 | 2018 | 2019 | Thereafter | ||||||||||||||||||||||
of 2015 | |||||||||||||||||||||||||||||
HETLIOZ® | $ | 30,830 | $ | 1,290 | $ | 1,721 | $ | 1,721 | $ | 1,721 | $ | 1,721 | $ | 22,656 | |||||||||||||||
Fanapt® | 16,750 | 7,537 | 9,213 | — | — | — | — | ||||||||||||||||||||||
$ | 47,580 | $ | 8,827 | $ | 10,934 | $ | 1,721 | $ | 1,721 | $ | 1,721 | $ | 22,656 | ||||||||||||||||
Accrued_Liabilities_Tables
Accrued Liabilities (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Summary of Accrued Liabilities | The following is a summary of the Company’s accrued liabilities as of March 31, 2015 and December 31, 2014: | ||||||||
(in thousands) | March 31, | December 31, | |||||||
2015 | 2014 | ||||||||
Accrued sales allowances | $ | 14,683 | $ | 495 | |||||
Accrued research and development expenses | 1,992 | 1,759 | |||||||
Accrued consulting and other professional fees | 6,923 | 2,522 | |||||||
Compensation and employee benefits | 1,106 | 388 | |||||||
Royalties payable | 4,167 | 602 | |||||||
Other accrued liabilities | 1,428 | 1,185 | |||||||
$ | 30,299 | $ | 6,951 | ||||||
Deferred_Revenue_Tables
Deferred Revenue (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Summary of Changes in Total Deferred Revenue | The following is a summary of changes in total deferred revenue for the three months ended March 31, 2015 and 2014: | ||||||||
Three Months Ended | |||||||||
(in thousands) | March 31, | March 31, | |||||||
2015 | 2014 | ||||||||
Balance beginning of period | $ | 174 | $ | 90,275 | |||||
Deferred Fanapt® product revenue | 239 | — | |||||||
Licensing revenue recognized | — | 7,452 | |||||||
Balance end of period | $ | 413 | $ | 82,823 | |||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 3 Months Ended | ||||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||||
Summary of Minimum Annual Future Payments under Operating Leases | The following is a summary of the minimum annual future payments under operating leases as of March 31, 2015: | ||||||||||||||||||||||||||||
(in thousands) | Total | Remainder | 2016 | 2017 | 2018 | 2019 | Thereafter | ||||||||||||||||||||||
of 2015 | |||||||||||||||||||||||||||||
Operating leases | $ | 14,446 | $ | 1,131 | $ | 1,500 | $ | 1,538 | $ | 1,576 | $ | 1,616 | $ | 7,085 |
Employee_StockBased_Compensati1
Employee Stock-Based Compensation (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Black-Scholes-Merton Option Pricing Model for Employee and Director Stock Options Granted | Assumptions used in the Black-Scholes-Merton option pricing model for employee and director stock options granted during the three months ended March 31, 2015 and 2014 were as follows: | ||||||||||||||||
Three Months Ended | |||||||||||||||||
March 31, | March 31, | ||||||||||||||||
2015 | 2014 | ||||||||||||||||
Expected dividend yield | 0 | % | 0 | % | |||||||||||||
Weighted average expected volatility | 61 | % | 66 | % | |||||||||||||
Weighted average expected term (years) | 5.97 | 5.85 | |||||||||||||||
Weighted average risk-free rate | 1.59 | % | 1.79 | % | |||||||||||||
Weighted average fair value per share | $ | 6.14 | $ | 7.9 | |||||||||||||
Total Employee Stock-Based Compensation Expense | Total employee stock-based compensation expense related to stock-based awards for the three months ended March 31, 2015 and 2014 was comprised of the following: | ||||||||||||||||
Three Months Ended | |||||||||||||||||
(in thousands) | March 31, | March 31, | |||||||||||||||
2015 | 2014 | ||||||||||||||||
Research and development | $ | 603 | $ | 442 | |||||||||||||
Selling, general and administrative | 1,321 | 912 | |||||||||||||||
$ | 1,924 | $ | 1,354 | ||||||||||||||
Summary of RSU Activity for 2006 Plan | A summary of RSU activity for the 2006 Plan for the three months ended March 31, 2015 follows: | ||||||||||||||||
RSUs | Number of | Weighted | |||||||||||||||
Shares | Average | ||||||||||||||||
Underlying | Grant Date | ||||||||||||||||
RSUs | Fair Value | ||||||||||||||||
Unvested at December 31, 2014 | 1,025,961 | $ | 9.94 | ||||||||||||||
Granted | 188,000 | 11.64 | |||||||||||||||
Forfeited | (31,062 | ) | 11.33 | ||||||||||||||
Vested | (231,093 | ) | 7.96 | ||||||||||||||
Unvested at March 31, 2015 | 951,806 | 10.71 | |||||||||||||||
2004 Plan | |||||||||||||||||
Summary of Option Activity Plan | A summary of option activity for the 2004 Plan for the three months ended March 31, 2015 follows: | ||||||||||||||||
2004 Option Plan | Weighted Average | Weighted Average | Aggregate | ||||||||||||||
(in thousands, except for share and per share amounts) | Number of | Exercise Price at | Remaining Term | Intrinsic | |||||||||||||
Shares | Grant Date | (Years) | Value | ||||||||||||||
Outstanding at December 31, 2014 | 652,810 | 1.74 | 0.78 | 8,212 | |||||||||||||
Expired | — | ||||||||||||||||
Exercised | (58,728 | ) | 1.12 | 590 | |||||||||||||
Outstanding at March 31, 2015 | 594,082 | 1.8 | 0.58 | 4,455 | |||||||||||||
Exercisable at March 31, 2015 | 594,082 | 1.8 | 0.58 | 4,455 | |||||||||||||
Vested and expected to vest at March 31, 2015 | 594,082 | 1.8 | 0.58 | 4,455 | |||||||||||||
2006 Plan | |||||||||||||||||
Summary of Option Activity Plan | A summary of option activity for the 2006 Plan for the three months ended March 31, 2015 follows: | ||||||||||||||||
2006 Option Plan | Weighted Average | Weighted Average | Aggregate | ||||||||||||||
(in thousands, except for share and per share amounts) | Number of | Exercise Price at | Remaining Term | Intrinsic | |||||||||||||
Shares | Grant Date | (Years) | Value | ||||||||||||||
Outstanding at December 31, 2014 | 6,227,112 | 11.58 | 6.71 | 28,523 | |||||||||||||
Granted | 459,000 | 11.61 | |||||||||||||||
Forfeited | (89,893 | ) | 11.39 | ||||||||||||||
Expired | — | ||||||||||||||||
Exercised | (42,562 | ) | 4.59 | 254 | |||||||||||||
Outstanding at March 31, 2015 | 6,553,657 | 11.63 | 6.66 | 8,878 | |||||||||||||
Exercisable at March 31, 2015 | 4,023,610 | 12.22 | 5.13 | 6,788 | |||||||||||||
Vested and expected to vest at March 31, 2015 | 6,324,233 | 11.63 | 6.56 | 8,835 | |||||||||||||
Net_Sales_by_Product_Detail
Net Sales by Product (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Revenue from External Customer [Line Items] | ||
Product sales, net | $22,150 | |
Total revenues | 22,150 | 9,143 |
Hetlioz | ||
Revenue from External Customer [Line Items] | ||
Product sales, net | 7,460 | |
Fanapt | ||
Revenue from External Customer [Line Items] | ||
Product sales, net | $14,690 |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 3 Months Ended | |||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Deferred revenue | $413,000 | $82,823,000 | $174,000 | $90,275,000 |
Percentage of insurance coverage gap allocated for prescription drugs | 50.00% | |||
Advertising expenses | 1,000,000 | 900,000 | ||
Number of reportable segments | 1 | |||
Customer Concentration Risk | Sales Revenue, Net | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Concentration Risk, Percentage | 95.00% | |||
Number of major customers for sales revenues | 6 | |||
Credit Concentration Risk | Accounts Receivable | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Concentration Risk, Percentage | 80.00% | |||
Number of major customers for sales revenues | 3 | |||
Fanapt | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Deferred revenue | $413,000 |
Settlement_Agreement_with_Nova2
Settlement Agreement with Novartis - Additional Information (Detail) (USD $) | 12 Months Ended | 3 Months Ended | 1 Months Ended | ||
Dec. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2009 | |
Business Acquisition [Line Items] | |||||
Intangible assets, amortization method | Straight-line basis | ||||
Fanapt | |||||
Business Acquisition [Line Items] | |||||
Intangible assets, amortizing period end date | 2016-11 | 2016-11 | |||
Gain on termination of pre-existing non-contractual relationship | 18,100,000 | ||||
Upfront payment received | 200,000,000 | ||||
Settlement Agreement | |||||
Business Acquisition [Line Items] | |||||
Net proceeds from offering of common stock | 25,000,000 | ||||
Effective date of the Settlement Agreement | 31-Dec-14 | ||||
Gain on termination of pre-existing non-contractual relationship | 18,087,000 | ||||
Up-front Payment Arrangement | |||||
Business Acquisition [Line Items] | |||||
Gain on termination of pre-existing non-contractual relationship | 59,500,000 | ||||
Novartis Pharma AG | Settlement Agreement | |||||
Business Acquisition [Line Items] | |||||
Net proceeds from offering of common stock | 25,000,000 | ||||
Price per share | $13.82 | ||||
Stock issued during period, shares | 1,808,973 | ||||
Percentage of premium to average closing prices | 10.00% | 10.00% | 10.00% | ||
Trading days | 10 days | ||||
Gain (Loss) on issuance of stock | ($900,000) |
Fair_Value_of_Consideration_Ex
Fair Value of Consideration Exchanged as Part of Settlement Agreement (Detail) (Settlement Agreement, USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Settlement Agreement | |
Business Acquisition [Line Items] | |
Equity issued | $25,904 |
Cash received | -25,000 |
Settlement of pre-existing non-contractual relationship | 18,087 |
Business Combination, Consideration Transferred, Total | $18,991 |
Assets_Acquired_and_Recorded_a
Assets Acquired and Recorded at Fair Value (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Business Acquisition [Line Items] | |
Assets acquired and recorded at fair value, Inventory | $2,960 |
Assets acquired and recorded at fair value, Intangible re-acquired right | 15,940 |
Assets acquired and recorded at fair value, Prepaid services | 91 |
Assets acquired and recorded at fair value | $18,991 |
Basic_and_Diluted_Net_Income_L
Basic and Diluted Net Income (Loss) Per Share of Common Stock (Detail) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Numerator: | ||
Net loss | ($10,221) | ($26,533) |
Denominator: | ||
Weighted average shares outstanding, basic and diluted | 41,744,948 | 33,678,706 |
Net loss per share, basic and diluted: | ||
Net loss per share | ($0.24) | ($0.79) |
Antidilutive securities excluded from calculations of diluted net loss per share | 5,656,662 | 3,870,508 |
Summary_of_AvailableForSale_Ma
Summary of Available-For-Sale Marketable Securities (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Market Value | $101,520 | $68,921 |
Current Investment | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 101,493 | 68,905 |
Gross Unrealized Gains | 35 | 29 |
Gross Unrealized Losses | -8 | -13 |
Fair Market Value | 101,520 | 68,921 |
Current Investment | U.S. Treasury and government agencies | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 47,992 | 30,618 |
Gross Unrealized Gains | 7 | 4 |
Gross Unrealized Losses | -3 | -4 |
Fair Market Value | 47,996 | 30,618 |
Current Investment | Corporate debt | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 53,501 | 38,287 |
Gross Unrealized Gains | 28 | 25 |
Gross Unrealized Losses | -5 | -9 |
Fair Market Value | $53,524 | $38,303 |
Assets_Measured_at_Fair_Value_
Assets Measured at Fair Value on Recurring Basis (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | $101,520 | $68,921 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 47,996 | 30,618 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | $53,524 | $38,303 |
Inventory_Detail
Inventory (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Inventory [Line Items] | ||
Raw materials | $162 | $198 |
Work-in-process | 1,692 | 1,326 |
Finished goods | 3,069 | 3,394 |
Deferred cost of goods sold | 292 | 252 |
Total | $5,215 | $5,170 |
Summary_of_Prepaid_Expenses_an
Summary of Prepaid Expenses and Other Current Assets (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Prepaid Expenses And Other Current Assets [Line Items] | ||
Prepaid insurance | $52 | $270 |
Prepaid manufacturing cost | 346 | 358 |
Other prepaid expenses and vendor advances | 1,781 | 2,302 |
Other current assets | 324 | 154 |
Total prepaid expenses and other current assets | $2,503 | $3,084 |
Summary_of_Intangible_Assets_D
Summary of Intangible Assets (Detail) (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $60,941 | $35,941 |
Accumulated Amortization | 13,361 | 9,217 |
Net Carrying Amount | 47,580 | 26,724 |
Hetlioz | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Patent life end date | 2033-01 | 2033-01 |
Gross Carrying Amount | 33,000 | 8,000 |
Accumulated Amortization | 2,170 | 539 |
Net Carrying Amount | 30,830 | 7,461 |
Fanapt | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Patent life end date | 2016-11 | 2016-11 |
Gross Carrying Amount | 27,941 | 27,941 |
Accumulated Amortization | 11,191 | 8,678 |
Net Carrying Amount | $16,750 | $19,263 |
Intangible_Assets_Textual_3_Fa
Intangible Assets (Textual 3 - Fanapt) - Additional Information (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | |||
In Thousands, unless otherwise specified | Jul. 31, 2013 | Feb. 28, 2004 | Mar. 31, 2014 | Dec. 31, 2006 | Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2009 | Dec. 31, 2004 |
Finite-Lived Intangible Assets [Line Items] | ||||||||
Acquisition of intangible assets | $3,000 | $500 | $8,000 | $1,000 | ||||
Assets acquired and recorded at fair value, Intangible re-acquired right | 15,940 | |||||||
Fanapt | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Acquisition of intangible assets | 8,000 | 12,000 | 500 | |||||
Estimated Patent life end date | 2016-11 | 2016-11 | ||||||
Assets acquired and recorded at fair value, Intangible re-acquired right | $15,940 |
Intangible_Assets_Textual_2_HE
Intangible Assets (Textual 2 - HETLIOZ) - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Mar. 31, 2004 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Milestone obligation under license agreement | $25,000,000 | |||
Intangible asset, amortization | 4,144,000 | 565,000 | ||
Hetlioz | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Estimated Patent life end date | 2033-01 | 2033-01 | ||
Possible future milestone payment in the event product reaches a certain agreed upon sales threshold | 25,000,000 | |||
Cumulative worldwide sales milestone | 250,000,000 | |||
Milestone obligation under license agreement | 25,000,000 | |||
Intangible assets capitalized | 25,000,000 | |||
Intangible asset, amortization | 1,600,000 | |||
Hetlioz | Minimum | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Estimated Patent life end date | 2022-12 | |||
Hetlioz | Maximum | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Estimated Patent life end date | 2033-01 | |||
Hetlioz | Catch-up Adjustment | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible asset, amortization | 1,200,000 | |||
Hetlioz | Future Period | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible asset, amortization | $1,700,000 |
Intangible_Assets_Additional_I
Intangible Assets - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset amortization | $4,144 | $565 |
Summary_of_Future_Intangible_A
Summary of Future Intangible Asset Amortization (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ||
Net Carrying Amount | $47,580 | $26,724 |
Remainder of 2015 | 8,827 | |
2016 | 10,934 | |
2017 | 1,721 | |
2018 | 1,721 | |
2019 | 1,721 | |
Thereafter | 22,656 | |
Hetlioz | ||
Finite-Lived Intangible Assets [Line Items] | ||
Net Carrying Amount | 30,830 | 7,461 |
Remainder of 2015 | 1,290 | |
2016 | 1,721 | |
2017 | 1,721 | |
2018 | 1,721 | |
2019 | 1,721 | |
Thereafter | 22,656 | |
Fanapt | ||
Finite-Lived Intangible Assets [Line Items] | ||
Net Carrying Amount | 16,750 | 19,263 |
Remainder of 2015 | 7,537 | |
2016 | $9,213 |
Summary_of_Accrued_Liabilities
Summary of Accrued Liabilities (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Accrued Liabilities [Line Items] | ||
Accrued sales allowances | $14,683 | $495 |
Accrued research and development expenses | 1,992 | 1,759 |
Accrued consulting and other professional fees | 6,923 | 2,522 |
Compensation and employee benefits | 1,106 | 388 |
Royalties payable | 4,167 | 602 |
Other accrued liabilities | 1,428 | 1,185 |
Accrued liabilities | $30,299 | $6,951 |
Summary_of_Changes_in_Total_De
Summary of Changes in Total Deferred Revenue (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Deferred Revenue Arrangement [Line Items] | ||
Balance beginning of period | $174 | $90,275 |
Deferred FanaptB. product revenue | 239 | |
Licensing revenue recognized | 7,452 | |
Balance end of period | $413 | $82,823 |
Deferred_Revenue_Additional_In
Deferred Revenue - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | |
Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2009 | |
Deferred Revenue Arrangement [Line Items] | ||||
Licensing agreement | $7,452,000 | $30,700,000 | ||
Up-front Payment Arrangement | ||||
Deferred Revenue Arrangement [Line Items] | ||||
Recognized as part of gain on arbitration settlement | 59,500,000 | |||
Fanapt | ||||
Deferred Revenue Arrangement [Line Items] | ||||
Upfront payment received | 200,000,000 | |||
Recognized as part of gain on arbitration settlement | $18,100,000 |
Summary_of_Minimum_Annual_Futu
Summary of Minimum Annual Future Payments Under Operating Leases (Detail) (USD $) | Mar. 31, 2015 |
In Thousands, unless otherwise specified | |
Operating Leased Assets [Line Items] | |
Operating leases, Total | $14,446 |
Operating leases,Remainder of 2015 | 1,131 |
Operating leases, 2016 | 1,500 |
Operating leases, 2017 | 1,538 |
Operating leases, 2018 | 1,576 |
Operating leases, 2019 | 1,616 |
Operating leases, Thereafter | $7,085 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Detail) (USD $) | 3 Months Ended | 1 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2011 |
sqft | sqft | |||
Commitments and Contingencies Disclosure [Line Items] | ||||
Rent expense | $0.40 | $0.40 | ||
Washington DC Lease Amendment | ||||
Commitments and Contingencies Disclosure [Line Items] | ||||
Renewal term of Lease agreement | 5 years | |||
Square feet leased | 8,860 | 8,860 | ||
Lease term | 12 years 1 month | |||
Additional annual rental payment under lease amendment | 0.4 | 0.4 | ||
Allowance for tenant improvements | $0.80 | |||
Washington DC Lease | ||||
Commitments and Contingencies Disclosure [Line Items] | ||||
Renewal term of Lease agreement | 5 years | |||
Square feet leased | 21,400 |
Commitments_and_Contingencies_2
Commitments and Contingencies (Textual 2 - HETLIOZ) - Additional Information (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Jul. 31, 2013 | Feb. 28, 2004 | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2006 | |
HETLIOZ | |||||
Acquisition of intangible assets | $3,000,000 | $500,000 | $8,000,000 | $1,000,000 | |
Milestone obligation under license agreement | 25,000,000 | ||||
Percentage of future sublicense fees payable to third-party | Mid-twenties | ||||
Hetlioz | |||||
HETLIOZ | |||||
Milestone obligation under license agreement | 25,000,000 | ||||
Royalty percentage | 10.00% | ||||
Cumulative worldwide sales milestone | 250,000,000 | ||||
Intangible assets capitalized | $25,000,000 |
Commitments_and_Contingencies_3
Commitments and Contingencies (Textual 3 - Fanapt) - Additional Information (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | |||
Jul. 31, 2013 | Feb. 28, 2004 | Mar. 31, 2014 | Dec. 31, 2006 | Dec. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2009 | Dec. 31, 2004 | |
Fanapt | ||||||||
Acquisition of intangible assets | $3,000,000 | $500,000 | $8,000,000 | $1,000,000 | ||||
Novartis Pharma AG | Through November 2016 | ||||||||
Fanapt | ||||||||
Royalty percentage | 23.00% | |||||||
Novartis Pharma AG | Royalty Rate for Annual Sales in Excess of $200 million | ||||||||
Fanapt | ||||||||
Future royalty payments to Novartis based on sales | mid-twenties | |||||||
Novartis Pharma AG | Beyond November 2016 | ||||||||
Fanapt | ||||||||
Royalty percentage | 9.00% | |||||||
Maximum | Novartis Pharma AG | ||||||||
Fanapt | ||||||||
Possible future milestone payment agreed upon sales threshold | 200,000,000 | |||||||
Fanapt | ||||||||
Fanapt | ||||||||
Acquisition of intangible assets | 8,000,000 | 12,000,000 | 500,000 | |||||
Future royalty payments to Novartis based on sales | mid-twenties | |||||||
Upfront payment received | $200,000,000 |
Commitments_and_Contingencies_4
Commitments and Contingencies (Textual 4 - Tradipitant) - Additional Information (Detail) (Tradipitant, USD $) | 3 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2012 |
Tradipitant | ||
Future percentage of royalty payments based net sales | Low double digits | |
Possible future milestone payments | $4 | |
Milestone payment under license agreement | 1 | |
License Agreement | ||
Tradipitant | ||
Possible future milestone payments | $95 |
Legal_Matters_Additional_Infor
Legal Matters - Additional Information (Detail) (Subsequent Event, Roxane Laboratories Inc., Pending Cases) | 1 Months Ended |
Apr. 30, 2015 | |
Case | |
Subsequent Event | Roxane Laboratories Inc. | Pending Cases | |
Legal Proceedings [Line Items] | |
Number of cases that were consolidated | 2 |
BlackScholesMerton_Option_Pric
Black-Scholes-Merton Option Pricing Model for Employee and Director Stock Options Granted (Detail) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Share Based Payment Award Stock Options Valuation Assumptions [Line Items] | ||
Expected dividend yield | 0.00% | 0.00% |
Weighted average expected volatility | 61.00% | 66.00% |
Weighted average expected term (years) | 5 years 11 months 19 days | 5 years 10 months 6 days |
Weighted average risk-free rate | 1.59% | 1.79% |
Weighted average fair value per share | $6.14 | $7.90 |
Total_Employee_StockBased_Comp
Total Employee Stock-Based Compensation Expense (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total employee stock-based compensation expense | $1,924 | $1,354 |
Research and development | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total employee stock-based compensation expense | 603 | 442 |
Selling, general and administrative | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total employee stock-based compensation expense | $1,321 | $912 |
Equity_Incentive_Plans_Textual
Equity Incentive Plans (Textual 1 - Equity Incentive Plan) - Additional Information (Detail) | 3 Months Ended | |
Mar. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of equity incentive plans | 2 | |
2004 Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Outstanding options granted | 594,082 | 652,810 |
2006 Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Outstanding options granted | 6,553,657 | 6,227,112 |
Common stock reserved for issuance | 11,829,472 | |
2006 Plan | Outstanding options and RSUs granted (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares subject to outstanding options and RSUs | 7,505,463 | |
Shares available for future grant | 1,930,220 | |
2006 Plan | January 1, 2014 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Common stock reserved for issuance | 11,829,472 | |
Increase each January 1 in the number of shares reserved under 2006 Plan as a percentage of common stock outstanding | 4.00% | |
Minimum increase each January 1 in the number of shares reserved | 1,500,000 | |
Increase in number of shares reserved and available for future grant | 1,500,000 |
Equity_Incentive_Plans_Textual1
Equity Incentive Plans (Textual 2 Stock Option) - Additional Information (Detail) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share based compensation option awards contractual term | 10 years | |
Portion of initial stock options granted to employees that vests on employee's first anniversary | 25.00% | |
Portion of initial stock options granted to employees that vests ratably over three years after completion of first year of service | 75.00% | |
Option awards vesting period, after completion of one year of service | 3 years | |
Vesting period | 4 years | |
Vesting period for initial stock options granted to directors | 4 years | |
Vesting period for subsequent stock options granted to directors | 1 year | |
Unrecognized compensation expenses, weighted average period | 2 years 1 month 6 days | |
Proceeds from exercise of employee stock options | $203,000 | $2,447,000 |
Service option awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation expenses | $15,000,000 | |
Unrecognized compensation expenses, weighted average period | 1 year 8 months 12 days |
Summary_of_Option_Activity_for
Summary of Option Activity for 2004 Plan (Detail) (2004 Plan, USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
2004 Plan | ||
Number of Shares | ||
Beginning balance | 652,810 | |
Expired | 0 | |
Exercised | -58,728 | |
Ending balance | 594,082 | 652,810 |
Exercisable | 594,082 | |
Vested and expected to vest at March 31, 2015 | 594,082 | |
Weighted Average Exercise Price at Grant Date | ||
Beginning balance | $1.74 | |
Expired | $0 | |
Exercised | $1.12 | |
Ending balance | $1.80 | $1.74 |
Exercisable | $1.80 | |
Vested and expected to vest at March 31, 2015 | $1.80 | |
Weighted Average Remaining Term (Years) | ||
Weighted Average Remaining Term | 6 months 29 days | 9 months 11 days |
Exercisable | 6 months 29 days | |
Vested and expected to vest at March 31, 2015 | 6 months 29 days | |
Aggregate Intrinsic Value | ||
Beginning balance | $8,212 | |
Exercised | 590 | |
Ending balance | 4,455 | 8,212 |
Exercisable | 4,455 | |
Vested and expected to vest at March 31, 2015 | $4,455 |
Summary_of_Option_Activity_for1
Summary of Option Activity for 2006 Plan (Detail) (2006 Plan, USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
2006 Plan | ||
Number of Shares | ||
Beginning balance | 6,227,112 | |
Granted | 459,000 | |
Forfeited | -89,893 | |
Expired | 0 | |
Exercised | -42,562 | |
Ending balance | 6,553,657 | 6,227,112 |
Exercisable | 4,023,610 | |
Vested and expected to vest at March 31, 2015 | 6,324,233 | |
Weighted Average Exercise Price at Grant Date | ||
Beginning balance | $11.58 | |
Granted | $11.61 | |
Forfeited | $11.39 | |
Expired | $0 | |
Exercised | $4.59 | |
Ending balance | $11.63 | $11.58 |
Exercisable | $12.22 | |
Vested and expected to vest at March 31, 2015 | $11.63 | |
Weighted Average Remaining Term (Years) | ||
Weighted Average Remaining Term | 6 years 7 months 28 days | 6 years 8 months 16 days |
Exercisable | 5 years 1 month 17 days | |
Vested and expected to vest at March 31, 2015 | 6 years 6 months 22 days | |
Aggregate Intrinsic Value | ||
Beginning balance | $28,523 | |
Exercised | 254 | |
Ending balance | 8,878 | 28,523 |
Exercisable | 6,788 | |
Vested and expected to vest at March 31, 2015 | $8,835 |
Equity_Incentive_Plans_Textual2
Equity Incentive Plans (Textual 3 RSU) - Additional Information (Detail) (USD $) | 3 Months Ended |
In Millions, except Share data, unless otherwise specified | Mar. 31, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period of RSU awards in equal installments | 4 years |
Unrecognized compensation expenses, weighted average period | 2 years 1 month 6 days |
Fair value of common stock vested | $1.80 |
2006 Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Fair value of common stock vested, shares | 231,093 |
Restricted Stock Units (RSU) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation expenses related to unvested RSUs | $9.60 |
Summary_of_RSU_Activity_for_20
Summary of RSU Activity for 2006 Plan (Detail) (2006 Plan, USD $) | 3 Months Ended |
Mar. 31, 2015 | |
2006 Plan | |
Number of Shares Unvested | |
Beginning balance | 1,025,961 |
Granted | 188,000 |
Forfeited | -31,062 |
Vested | -231,093 |
Ending balance | 951,806 |
Weighted Average Price/Share Unvested | |
Beginning balance | $9.94 |
Granted | $11.64 |
Forfeited | $11.33 |
Vested | $7.96 |
Ending balance | $10.71 |