Vanda Pharmaceuticals (VNDA) 10-Q 7 May 20 2020 Q1 Quarterly report Financial data

Cover Page

Cover Page - shares	3 Months Ended
	Mar. 31, 2020	Apr. 30, 2020
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2020
Document Transition Report	false
Entity File Number	001-34186
Entity Registrant Name	VANDA PHARMACEUTICALS INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	03-0491827
Entity Address, Address Line One	2200 Pennsylvania Avenue NW
Entity Address, Address Line Two	Suite 300 E
Entity Address, City or Town	Washington
Entity Address, State or Province	DC
Entity Address, Postal Zip Code	20037
City Area Code	202
Local Phone Number	734-3400
Title of 12(b) Security	Common Stock, par value $0.001 per share
Trading Symbol	VNDA
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		54,550,461
Entity Central Index Key	0001347178
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1
Amendment Flag	false

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 64,950	$ 45,072
Marketable securities	247,376	267,057
Accounts receivable, net	29,272	26,367
Inventory	1,320	1,140
Prepaid expenses and other current assets	17,828	14,500
Total current assets	360,746	354,136
Property and equipment, net	3,877	3,864
Operating lease right-of-use assets	10,875	11,180
Intangible assets, net	22,667	23,037
Deferred tax assets	86,641	87,680
Non-current inventory and other	3,719	3,851
Total assets	488,525	483,748
Current liabilities:
Accounts payable and accrued liabilities	26,045	27,590
Product revenue allowances	33,177	31,915
Total current liabilities	59,222	59,505
Operating lease non-current liabilities	12,139	12,455
Other non-current liabilities	778	843
Total liabilities	72,139	72,803
Commitments and contingencies (Notes 8 and 13)
Stockholders’ equity:
Preferred stock, $0.001 par value; 20,000,000 shares authorized, and no shares issued or outstanding at March 31, 2020 and December 31, 2019	0	0
Common stock, $0.001 par value; 150,000,000 shares authorized; 54,132,336 and 53,549,612 shares issued and outstanding at March 31, 2020 and December 31, 2019, respectively	54	54
Additional paid-in capital	635,730	631,307
Accumulated other comprehensive income	781	249
Accumulated deficit	(220,179)	(220,665)
Total stockholders’ equity	416,386	410,945
Total liabilities and stockholders’ equity	$ 488,525	$ 483,748

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares	Mar. 31, 2020	Dec. 31, 2019
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	20,000,000	20,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	150,000,000	150,000,000
Common stock, shares issued (in shares)	54,132,336	53,549,612
Common stock, shares outstanding (in shares)	54,132,336	53,549,612

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Revenues:
Net product sales	$ 58,000	$ 47,713
Total revenues	58,000	47,713
Operating expenses:
Cost of goods sold excluding amortization	5,207	5,113
Research and development	15,527	13,278
Selling, general and administrative	37,021	31,029
Intangible asset amortization	370	380
Total operating expenses	58,125	49,800
Loss from operations	(125)	(2,087)
Other income	1,366	1,485
Income (loss) before income taxes	1,241	(602)
Provision for income taxes	755	10
Net income (loss)	$ 486	$ (612)
Net income (loss) per share:
Basic (in dollars per share)	$ 0.01	$ (0.01)
Diluted (in dollars per share)	$ 0.01	$ (0.01)
Weighted average shares outstanding:
Basic (in shares)	53,806,317	52,752,774
Diluted (in shares)	54,870,146	52,752,774

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 486	$ (612)
Other comprehensive income (loss):
Net foreign currency translation loss	(13)	(4)
Change in net unrealized gain on marketable securities	705	138
Tax provision on other comprehensive income (loss)	(160)	0
Other comprehensive income, net of tax	532	134
Comprehensive income (loss)	$ 1,018	$ (478)

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Other Comprehensive Income	Accumulated Deficit
Beginning balance (in shares) at Dec. 31, 2018		52,477,593
Beginning balance at Dec. 31, 2018	$ 275,422	$ 52	$ 611,587	$ 1	$ (336,218)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock form the exercise of stock options and settlement of restricted stock units (in shares)		485,083
Issuance of common stock from the exercise of stock options and settlement of restricted stock units	179	$ 1	178
Stock-based compensation expense	3,282		3,282
Net income (loss)	(612)				(612)
Other comprehensive income (loss), net of tax	134			134
Ending balance (in shares) at Mar. 31, 2019		52,962,676
Ending balance at Mar. 31, 2019	$ 278,405	$ 53	615,047	135	(336,830)
Beginning balance (in shares) at Dec. 31, 2019	53,549,612	53,549,612
Beginning balance at Dec. 31, 2019	$ 410,945	$ 54	631,307	249	(220,665)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock form the exercise of stock options and settlement of restricted stock units (in shares)		582,724
Issuance of common stock from the exercise of stock options and settlement of restricted stock units	479	$ 0	479
Stock-based compensation expense	3,944		3,944
Net income (loss)	486				486
Other comprehensive income (loss), net of tax	$ 532			532
Ending balance (in shares) at Mar. 31, 2020	54,132,336	54,132,336
Ending balance at Mar. 31, 2020	$ 416,386	$ 54	$ 635,730	$ 781	$ (220,179)

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Cash flows from operating activities
Net income (loss)	$ 486	$ (612)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation of property and equipment	351	332
Stock-based compensation	3,944	3,282
Amortization of discounts and premiums on marketable securities	(287)	(906)
Intangible asset amortization	370	380
Deferred income taxes	879	0
Other non-cash adjustments, net	314	317
Changes in operating assets and liabilities:
Accounts receivable	(2,905)	2,434
Prepaid expenses and other assets	(3,524)	247
Inventory	76	(44)
Accounts payable and other liabilities	(1,795)	3,507
Product revenue allowances	1,184	706
Net cash provided by (used in) operating activities	(907)	9,643
Cash flows from investing activities
Purchases of property and equipment	(373)	(393)
Purchases of marketable securities	(41,400)	(100,803)
Maturities of marketable securities	62,073	64,745
Net cash provided by (used in) investing activities	20,300	(36,451)
Cash flows from financing activities
Proceeds from the exercise of stock options	479	179
Net cash provided by financing activities	479	179
Effect of exchange rate changes on cash, cash equivalents and restricted cash	5	2
Net change in cash, cash equivalents and restricted cash	19,877	(26,627)
Cash, cash equivalents and restricted cash
Beginning of period	45,650	61,749
End of period	$ 65,527	$ 35,122

Business Organization and Prese

Business Organization and Presentation	3 Months Ended
	Mar. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Business Organization and Presentation	Business Organization and Presentation Business organization Vanda Pharmaceuticals Inc. (the Company) is a leading global biopharmaceutical company focused on the development and commercialization of innovative therapies to address high unmet medical needs and improve the lives of patients. The Company commenced its operations in 2003 and operates in one reporting segment. The Company’s commercial portfolio is currently comprised of two products, HETLIOZ ® for the treatment of Non-24 Hour Sleep-Wake Disorder (Non-24) and Fanapt ® for the treatment of schizophrenia. HETLIOZ ® is the first treatment for Non-24 approved by the U.S. Food and Drug Administration (FDA). In addition, the Company has a number of drugs in development, including: • HETLIOZ ® (tasimelteon) for the treatment of jet lag disorder (JLD), Smith-Magenis Syndrome (SMS), pediatric Non-24 and delayed sleep phase disorder (DSPD); • Fanapt ® (iloperidone) for the treatment of bipolar disorder and a long acting injectable (LAI) formulation program for the treatment of schizophrenia; • Tradipitant (VLY-686), a small molecule neurokinin-1 receptor (NK-1R) antagonist, for the treatment of atopic dermatitis, gastroparesis, motion sickness and COVID-19 Acute Respiratory Distress Syndrome (ARDS); • VTR-297, a small molecule histone deacetylase (HDAC) inhibitor for the treatment of hematologic malignancies and with potential use as a treatment for several oncology indications; • VQW-765, a small molecule nicotinic acetylcholine receptor partial agonist, with potential use for the treatment of psychiatric disorders; and • Portfolio of Cystic Fibrosis Transmembrane Conductance Regulator (CFTR) activators and inhibitors for the treatment of dry eye and ocular inflammation and for the treatment of secretory diarrhea disorders, including cholera. 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 and accompanying notes included in the Company's annual report on Form 10-K (Annual Report) for the fiscal year ended December 31, 2019 . The financial information as of March 31, 2020 and for the three months ended March 31, 2020 and 2019 is unaudited, but in the opinion of management, all adjustments considered necessary for a fair statement of the results for these interim periods have been included. All intercompany accounts and transactions have been eliminated in consolidation. The condensed consolidated balance sheet data as of December 31, 2019

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2020
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies There have been no material changes to the significant accounting policies previously disclosed in the Annual Report. 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. Management continually re-evaluates its estimates, judgments and assumptions, and management’s evaluation could change. Actual results could differ from those estimates. Cash, Cash Equivalents and Restricted Cash For purposes of the Condensed Consolidated Balance Sheets and Condensed Consolidated Statements of Cash Flows, cash equivalents represent highly-liquid investments with a maturity date of three months or less at the date of purchase. Cash and cash equivalents include investments in money market funds with commercial banks and financial institutions, and commercial paper of high-quality corporate issuers. Restricted cash relates primarily to amounts held as collateral for letters of credit for leases for office space at the Company’s Washington, D.C. headquarters. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Condensed Consolidated Balance Sheets to the total end of period cash, cash equivalents and restricted cash reported within the Condensed Consolidated Statement of Cash Flows: (in thousands) March 31, March 31, Cash and cash equivalents $ 64,950 $ 34,379 Restricted cash included in: Prepaid expenses and other current assets — 157 Non-current inventory and other 577 586 Total cash, cash equivalents and restricted cash $ 65,527 $ 35,122 Revenue from Net Product Sales The Company’s net product sales consist of sales of HETLIOZ ® and Fanapt ® . Net sales by product for the three months ended March 31, 2020 and 2019 were as follows: Three Months Ended (in thousands) March 31, March 31, HETLIOZ ® product sales, net $ 35,336 $ 28,957 Fanapt ® product sales, net 22,664 18,756 Total net product sales $ 58,000 $ 47,713 Major Customers HETLIOZ ® is 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 which is the point at which control is transferred to the customer. There were five major customers that each accounted for more than 10% of total revenues and, as a group, represented 96% of total revenues for the three months ended March 31, 2020 . There were five major customers that each accounted for more than 10% of accounts receivable and, as a group, represented 94% of total accounts receivable at March 31, 2020 . Receivables are carried at transaction price net of allowance for credit losses. Allowance for credit losses is measured using historical loss rates based on the aging of receivables and incorporating current conditions and forward-looking estimates. Recent Accounting Pronouncements In December 2019, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2019-12, Income Taxes (Topic 740), Simplifying the Accounting for Income Taxes , which clarifies and simplifies certain aspects of the accounting for income taxes. The standard is effective for years beginning after December 15, 2020, and interim periods within annual periods beginning after December 15, 2020. The Company is evaluating this standard to determine if adoption will have a material impact on the Company’s condensed consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses , which changes the impairment model for most financial assets and certain other financial instruments. The standard requires the use of a forward-looking “expected loss” model for instruments measured at amortized cost that generally will result in the earlier recognition of allowances for losses. The standard is effective for years beginning after December 15, 2019, and interim periods within annual periods beginning after December 15, 2019. The adoption of this standard on January 1, 2020 did not have a material impact on the Company's condensed consolidated financial results.

Marketable Securities

Marketable Securities	3 Months Ended
	Mar. 31, 2020
Investments, Debt and Equity Securities [Abstract]
Marketable Securities	Marketable Securities The following is a summary of the Company’s available-for-sale marketable securities as of March 31, 2020 , which all have contractual maturities of less than two years: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value (in thousands) U.S. Treasury and government agencies $ 87,014 $ 558 $ — $ 87,572 Corporate debt 122,964 572 (110 ) 123,426 Asset-backed securities 36,386 56 (64 ) 36,378 Total marketable securities $ 246,364 $ 1,186 $ (174 ) $ 247,376 The following is a summary of the Company’s available-for-sale marketable securities as of December 31, 2019 , which all have contractual maturities of less than two years: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value (in thousands) U.S. Treasury and government agencies $ 88,535 $ 68 $ (2 ) $ 88,601 Corporate debt 129,860 196 (1 ) 130,055 Asset-backed securities 48,355 49 (3 ) 48,401 Total marketable securities $ 266,750 $ 313 $ (6 ) $ 267,057

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2020
Fair Value Disclosures [Abstract]
Fair Value Measurements	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, 2020 and December 31, 2019 consist of cash equivalents and 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 is also 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, corporate notes and asset-backed securities that use as their basis readily observable market parameters. As of March 31, 2020 , 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, 2020 Using Total Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (in thousands) (Level 1) (Level 2) (Level 3) U.S. Treasury and government agencies $ 87,572 $ 87,572 $ — $ — Corporate debt 123,426 — 123,426 — Asset-backed securities 36,378 — 36,378 — Total assets measured at fair value $ 247,376 $ 87,572 $ 159,804 $ — As of December 31, 2019 , 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, 2019 Using Total Fair Value Quoted Prices in Significant Other Significant (in thousands) (Level 1) (Level 2) (Level 3) U.S. Treasury and government agencies $ 88,601 $ 88,601 $ — $ — Corporate debt 137,025 — 137,025 — Asset-backed securities 48,401 — 48,401 — Total assets measured at fair value $ 274,027 $ 88,601 $ 185,426 $ — Total assets measured at fair value as of December 31, 2019 include $7.0 million of cash equivalents. 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, accounts receivable, restricted cash, accounts payable and accrued liabilities, product revenue allowances and milestone obligations under license agreements, the carrying values of which materially approximate their fair values.

Inventory

Inventory	3 Months Ended
	Mar. 31, 2020
Inventory Disclosure [Abstract]
Inventory	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 levels are evaluated for the amount of inventory that would be sold within one year. At certain times, the level of inventory can exceed the forecasted level of cost of goods sold for the next twelve months. The Company classifies the estimate of such inventory as non-current. Inventory consisted of the following as of March 31, 2020 and December 31, 2019 : (in thousands) March 31, December 31, Current assets Finished goods $ 1,320 $ 1,140 Total inventory, current $ 1,320 $ 1,140 Non-Current assets Raw materials $ 659 $ 659 Work-in-process 949 1,109 Finished goods 934 1,056 Total inventory, non-current 2,542 2,824 Total inventory $ 3,862 $ 3,964

Intangible Assets

Intangible Assets	3 Months Ended
	Mar. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets	Intangible Assets HETLIOZ ® . In January 2014, the Company announced that the FDA had approved the New Drug Application (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 estimated economic useful life of the related product patents, the latest of which expires in July 2035 . In April 2018, the Company met its final milestone under its license agreement when cumulative worldwide sales of HETLIOZ ® reached $250.0 million . As a result of the achievement of this milestone, the Company made a payment to BMS of $25.0 million in 2018. The $25.0 million , which was capitalized as an intangible asset in the first quarter of 2015, was determined to be additional consideration for the acquisition of the HETLIOZ ® intangible asset and is being amortized on a straight-line basis over the estimated economic useful life of the related product patents, the latest of which expires in July 2035 . The estimated economic useful life of both the $8.0 million and the $25.0 million intangible assets were changed from February 2035 to July 2035 based on the July 2035 expiration date of U.S. patent number 10,376,487 ('487 Patent) issued by the U.S. Patent and Trademark Office in August 2019. The following is a summary of the Company’s intangible assets as of March 31, 2020 : March 31, 2020 (in thousands) Estimated Useful Life (Years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount HETLIOZ ® July 2035 $ 33,000 $ 10,333 $ 22,667 The following is a summary of the Company’s intangible assets as of December 31, 2019 : December 31, 2019 (in thousands) Estimated Useful Life (Years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount HETLIOZ ® July 2035 $ 33,000 $ 9,963 $ 23,037 As of March 31, 2020 and December 31, 2019 , the Company also had $27.9 million of fully amortized intangible assets related to Fanapt ® . Intangible assets are amortized over their estimated useful economic life using the straight-line method. Amortization expense was $0.4 million for each of the three months ended March 31, 2020 and 2019 . The following is a summary of the future intangible asset amortization schedule as of March 31, 2020 : (in thousands) Total 2020 2021 2022 2023 2024 Thereafter HETLIOZ ® $ 22,667 $ 1,108 $ 1,478 $ 1,478 $ 1,478 $ 1,478 $ 15,647

Accounts Payable and Accrued Li

Accounts Payable and Accrued Liabilities	3 Months Ended
	Mar. 31, 2020
Payables and Accruals [Abstract]
Accounts Payable and Accrued Liabilities	Accounts Payable and Accrued Liabilities The following is a summary of the Company’s accounts payable and accrued liabilities as of March 31, 2020 and December 31, 2019 : (in thousands) March 31, December 31, Consulting and other professional fees $ 7,636 $ 5,376 Research and development expenses 5,839 5,893 Royalties payable 4,912 5,904 Compensation and employee benefits 3,762 6,597 Operating lease liabilities 2,101 2,147 Other 1,795 1,673 Total accounts payable and accrued liabilities $ 26,045 $ 27,590

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies 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 ® . As of March 31, 2020 , the Company has paid BMS $37.5 million in upfront fees and milestone obligations, including $33.0 million of regulatory approval and commercial milestones capitalized as intangible assets (see Note 6 ). The Company has no remaining milestone obligations to BMS. 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 (NCE) patent in that territory. During the period prior to the expiry of the NCE 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 NCE patent existed or for the remainder of the 10 years after the expiry of the NCE 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 ® . Fanapt ® . Pursuant to the terms of a settlement agreement with Novartis, Novartis transferred all U.S. and Canadian rights in the Fanapt ® franchise to the Company on December 31, 2014. The Company paid directly to Sanofi S.A (Sanofi) a fixed royalty of 3% of net sales through December 2019 related to manufacturing know-how. The Company is also obligated to pay Sanofi a fixed royalty on Fanapt ® net sales equal to 6% on Sanofi know-how not related to manufacturing under certain conditions for a period of up to 10 years in markets where the NCE patent has expired or was not issued. The Company is obligated to pay this 6% royalty on net sales in the U.S. through November 2026. 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. Lilly is eligible to receive future payments based upon achievement of specified development, regulatory approval and commercialization milestones as well as tiered-royalties on net sales at percentage rates up to the low double digits . As of March 31, 2020 , the Company has paid Lilly $3.0 million in upfront fees and development milestones, including a $2.0 million milestone payment in July 2018 as a result of enrolling the first subject into a Phase III study for tradipitant. As of March 31, 2020 , remaining milestone obligations include a $2.0 million development milestone due upon the filing of the first marketing authorization for tradipitant in either the U.S. or European Union (E.U.), $10.0 million and $5.0 million for the first approval of a marketing authorization for tradipitant in the U.S. and E.U., respectively, and up to $80.0 million for sales milestones. The Company is obligated to use its commercially reasonable efforts to develop and commercialize tradipitant. VQW-765. In connection with a settlement agreement with Novartis relating to Fanapt ® , the Company received an exclusive worldwide license under certain patents and patent applications, and other licenses to intellectual property, to develop and commercialize VQW-765, 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 VQW-765 and is responsible for all development costs. 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 . Portfolio of CFTR activators and inhibitors . In March 2017, the Company entered into a license agreement with the University of California San Francisco (UCSF), under which the Company acquired an exclusive worldwide license to develop and commercialize a portfolio of CFTR activators and inhibitors. Pursuant to the license agreement, the Company will develop and commercialize the CFTR activators and inhibitors and is responsible for all development costs under the license agreement, including current pre-investigational new drug development work. UCSF is eligible to receive future payments based upon achievement of specified development and commercialization milestones as well as single-digit royalties on net sales. As of March 31, 2020 , the Company has paid UCSF $1.2 million in upfront fees and development milestones, including an upfront license fee payment of $1.0 million in 2017 and a $0.2 million development milestone payment in March 2019. As of March 31, 2020 , remaining milestone obligations include $12.2 million for development milestones and $33.0 million for future regulatory approval and sales milestones. Included in the $12.2 million in development milestones is a $350,000 milestone due upon the conclusion of a Phase I study for each licensed product but not to exceed $1.1 million in total for the CFTR portfolio. Purchase Commitments 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, marketing, and other services may be terminated on generally 90 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. Noncancellable long-term contractual cash obligations include noncancellable purchase commitments longer than one year and primarily relate to commitments for media and data services, of which $3.2 million , $1.0 million , and $0.5 million are expected to be paid in 2020 , 2021 and 2022

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income	3 Months Ended
	Mar. 31, 2020
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Accumulated Other Comprehensive Income (Loss)	Accumulated Other Comprehensive Income The accumulated balances related to each component of other comprehensive income (loss), net of taxes, were as follows as of March 31, 2020 and December 31, 2019 : (in thousands) March 31, December 31, Foreign currency translation $ — $ 13 Unrealized gain on marketable securities 781 236 Accumulated other comprehensive income $ 781 $ 249 There were no reclassifications out of accumulated other comprehensive income for either of the three months ended March 31, 2020 or 2019 .

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Mar. 31, 2020
Share-based Payment Arrangement [Abstract]
Stock-Based Compensation	Stock-Based Compensation As of March 31, 2020 , there were 6,335,548 shares that were subject to outstanding options and restricted stock units (RSUs) under the 2006 Equity Incentive Plan (2006 Plan) and the Amended and Restated 2016 Equity Incentive Plan (2016 Plan, and together with the 2006 Plan, Plans). The 2006 Plan expired by its terms in April 2016, and the Company adopted the 2016 Plan. Outstanding options and RSUs under the 2006 Plan remain in effect and the terms of the 2006 Plan continue to apply, but no additional awards can be granted under the 2006 Plan. In June 2016, the Company’s stockholders approved the 2016 Plan. The 2016 Plan has been amended and restated twice to increase the number of shares reserved for issuance, among other administrative changes. Both amendments and restatements of the 2016 Plan were approved by the Company's stockholders. There are a total of 7,100,000 shares of common stock reserved for issuance under the 2016 Plan, 2,153,920 shares of which remained available for future grant as of March 31, 2020 . Stock Options The Company has granted option awards under the Plans 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. Service option awards granted to employees and new directors upon their election vest and become exercisable over four years with the first 25% of the shares subject to service option awards vesting on the first anniversary of the grant date and remaining 75% of the shares subject to the service option awards in 36 equal monthly installments thereafter. Subsequent annual service option awards granted to directors vest and become exercisable in full on the first anniversary of the grant date. 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, 2020 , $9.1 million of unrecognized compensation costs related to unvested service option awards are expected to be recognized over a weighted average period of 1.5 years. No option awards are classified as a liability as of March 31, 2020 . A summary of option activity under the Plans for the three months ended March 31, 2020 follows: 2006 and 2016 Plans (in thousands, except for share and per share amounts) Number of Shares Weighted Average Exercise Price at Grant Date Weighted Average Remaining Term (Years) Aggregate Intrinsic Value Outstanding at December 31, 2019 4,495,145 $ 12.21 5.58 $ 21,148 Granted 487,500 11.42 Forfeited (225,000 ) 18.83 Expired (10,104 ) 11.78 Exercised (172,500 ) 4.96 890 Outstanding at March 31, 2020 4,575,041 12.07 5.81 4,818 Exercisable at March 31, 2020 3,379,139 11.02 4.63 4,818 Vested and expected to vest at March 31, 2020 4,340,916 11.99 5.60 4,818 The weighted average grant-date fair value of options granted was $5.73 and $11.50 per share for the three months ended March 31, 2020 and 2019 , respectively. Proceeds from the exercise of stock options amounted to $0.5 million and $0.2 million for the three months ended March 31, 2020 and 2019 , respectively. Restricted Stock Units 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 under the Plans with service conditions (service RSUs) that vest in four equal annual installments provided that the employee remains employed with the Company. Annual service RSUs granted to directors vest on the first anniversary of the grant date. As of March 31, 2020 , $25.9 million of unrecognized compensation costs related to unvested service RSUs are expected to be recognized over a weighted average period of 2.0 years. No RSUs are classified as a liability as of March 31, 2020 . A summary of RSU activity under the Plans for the three months ended March 31, 2020 follows: 2006 and 2016 Plans Number of Shares Underlying RSUs Weighted Average Grant Date Fair Value Unvested at December 31, 2019 1,649,285 $ 18.04 Granted 745,818 11.32 Forfeited (136,091 ) 18.65 Vested (498,505 ) 16.73 Unvested at March 31, 2020 1,760,507 15.52 The grant date fair value for the 498,505 shares underlying RSUs that vested during the three months ended March 31, 2020 was $8.3 million . Stock-Based Compensation Expense Stock-based compensation expense recognized for the three months ended March 31, 2020 and 2019 was comprised of the following: Three Months Ended (in thousands) March 31, March 31, Research and development $ 1,111 $ 728 Selling, general and administrative 2,833 2,554 Total stock-based compensation expense $ 3,944 $ 3,282 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 never paid cash dividends to its stockholders 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, 2020 and 2019 were as follows: Three Months Ended March 31, March 31, Expected dividend yield 0 % 0 % Weighted average expected volatility 52 % 58 % Weighted average expected term (years) 6.09 5.92 Weighted average risk-free rate 1.37 % 2.51 %

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2020
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes For the three months ended March 31, 2020 and 2019 , the Company recorded income tax expense of $ 0.8 million and less than $0.1 million , respectively. The income tax expense for the three months ended March 31, 2020 was primarily driven by the estimated effective tax rate for the year and the discrete impact of $0.4 million of net shortfall tax expense related to stock-based compensation activity during the quarter. As a result of the tax valuation allowance against deferred tax assets in the U.S., there was no benefit for federal income taxes associated with the loss before taxes for the three months ended March 31, 2019 . Income taxes were recorded related to certain U.S. state and foreign jurisdictions for the three months ended March 31, 2019 . The Company assesses the need for a valuation allowance against its deferred tax asset each quarter through the review of all available positive and negative evidence. Deferred tax assets are reduced by a tax valuation allowance when, in the opinion of management, it is more likely than not that some portion of the deferred tax assets will not be realized. The analysis depends on historical and projected taxable income. Projected taxable income includes significant assumptions related to revenue, commercial expenses and research and development activities. During the third quarter of 2019, after considering all available positive and negative evidence, including but not limited to cumulative income in recent periods, historical, current and future projected results and significant risks and uncertainties related to forecasts, the Company concluded that it was more likely than not that substantially all of its deferred tax assets in the U.S. are realizable in future periods. A valuation allowance was retained against certain U.S. federal tax attributes with short carryforward periods and District of Columbia state deferred tax assets as of March 31, 2020 and December 31, 2019

Earnings per Share

Earnings per Share	3 Months Ended
	Mar. 31, 2020
Earnings Per Share [Abstract]
Earnings per Share	Earnings per Share Basic earnings per share (EPS) is calculated by dividing the net income (loss) by the weighted average number of shares of common stock outstanding. Diluted EPS is computed by dividing the net income (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 income (loss) per share of common stock for the three months ended March 31, 2020 and 2019 : Three Months Ended (in thousands, except for share and per share amounts) March 31, March 31, Numerator: Net income (loss) $ 486 $ (612 ) Denominator: Weighted average shares outstanding, basic 53,806,317 52,752,774 Effect of dilutive securities 1,063,829 — Weighted average shares outstanding, diluted 54,870,146 52,752,774 Net income (loss) per share, basic and diluted: Basic $ 0.01 $ (0.01 ) Diluted $ 0.01 $ (0.01 ) Antidilutive securities excluded from calculations of diluted net income (loss) per share 3,095,224 3,068,806 The Company incurred a net loss for the three months ended March 31, 2019 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.

Legal Matters

Legal Matters	3 Months Ended
	Mar. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
Legal Matters	Legal Matters Fanapt ® . The Company has been involved in litigation with Roxane Laboratories, Inc. (Roxane) and its affiliates, West-Ward Pharmaceuticals International Limited and West-Ward Pharmaceuticals Corp (West-Ward), since the Company filed a lawsuit against Roxane in the U.S. District Court for the District of Delaware (Delaware District Court) for patent infringement in June 2014. The lawsuit was filed in response to Roxane’s submission to the U.S. Food and Drug Administration (FDA) of an Abbreviated New Drug Application (ANDA) for a generic version of Fanapt ® prior to the expiration of certain of the Company’s patents covering Fanapt ® , including U.S. Patent No. 8,586,610 (‘610 Patent). In August 2016, the Delaware District Court ruled in the Company’s favor, permanently enjoining Roxane from manufacturing, using, selling, offering to sell, distributing or importing any generic iloperidone product described in Roxane’s ANDA until the expiration of the ‘610 Patent in November 2027, or May 2028 if the Company obtains pediatric exclusivity. In April 2018, following an appeal by Roxane of the Delaware District Court’s decision to the Federal Circuit Court of Appeals (Federal Circuit), the Federal Circuit affirmed the Delaware District Court’s ruling. In June 2018, West-Ward, having replaced Roxane as defendants following the acquisition of Roxane by West-Ward’s parent company, Hikma Pharmaceuticals PLC, petitioned the Federal Circuit for a rehearing en banc. In August 2018, the Federal Circuit denied West-Ward's petition. In January 2019, West-Ward filed a petition in the U.S. Supreme Court for a writ of certiorari seeking reversal of the Federal Circuit’s decision. In March 2019, the U.S. Supreme Court invited the Solicitor General of the U.S. to file a brief in the matter expressing the views of the U.S. In January 2020, the U.S. Supreme Court denied West-Ward's petition for writ of certiorari. In 2015, the Company filed six separate patent infringement lawsuits in the Delaware District Court against Roxane, Inventia Healthcare Pvt. Ltd. (Inventia), Lupin Ltd. and Lupin Pharmaceuticals, Inc. (Lupin), Taro Pharmaceuticals USA, Inc. and Taro Pharmaceutical Industries, Ltd. (Taro), and Apotex Inc. and Apotex Corp. (Apotex, and collectively with Roxane, Inventia, Lupin and Taro, the Fanapt ® Defendants). These lawsuits were filed in response to the submission to the FDA by each of the Fanapt ® Defendants of ANDAs for generic versions of Fanapt ® prior to the expiration of the ‘610 Patent in November 2027 or the U.S. Patent No. 9,138,432 in September 2025. The Company entered into separate confidential stipulations with each of Inventia and Lupin regarding any potential launch of their generic versions of Fanapt ® . The parties are scheduled to provide the court with a status report on May 28, 2020 with respect to the remaining lawsuits against the other Fanapt ® Defendants. HETLIOZ ® . In April and May 2018, the Company filed three separate patent infringement lawsuits in the Delaware District Court against Teva Pharmaceuticals USA, Inc. (Teva), MSN Pharmaceuticals Inc. and MSN Laboratories Private Limited (MSN) and Apotex (collectively with Teva and MSN, the HETLIOZ ® Defendants) after having received Paragraph IV certification notice letters (Paragraph IV Letters) from each of the HETLIOZ ® Defendants alleging that certain of the Company's patents covering HETLIOZ ® (collectively, the HETLIOZ ® Patents) were invalid, unenforceable and/or would not be infringed by the manufacture, use or sale of their generic versions of HETLIOZ ® , as described in the ANDAs submitted to the FDA by each of the HETLIOZ ® Defendants, prior to the expiration of the latest to expire of the HETLIOZ ® Patents in 2034. Each of the HETLIOZ ® Patents are listed in the Approved Drug Products with Therapeutic Equivalence Evaluations (Orange Book). In December 2018, the Company filed amended complaints against each of the HETLIOZ ® Defendants following the receipt of additional Paragraph IV Letters from Teva and Apotex concerning its Orange Book listed '977 Patent, which expires in 2035. These lawsuits are scheduled for trial in July 2021. In March 2019, April 2019, and May 2019, the Company filed three additional patent infringement lawsuits in the Delaware District Court against the HETLIOZ ® Defendants following the receipt of additional Paragraph IV Letters from each concerning its Orange Book listed U.S. Patent No. 10,149,829, which expires in 2033. These lawsuits have been consolidated with the other lawsuits against the HETLIOZ ® Defendants and are also scheduled for trial in July 2021. In November and December 2019, the Company filed additional patent infringement lawsuits in the Delaware District Court against Apotex and Teva, respectively, for infringement of its Orange Book listed U.S. Patent No. 10,376,487 (‘487 Patent) following the receipt of additional Paragraph IV Letters from Apotex and Teva regarding the '487 Patent, which expires in July 2035. Teva asserted a counterclaim for a declaratory judgment that the ‘487 Patent is invalid. The Company answered Teva’s counterclaim by denying their allegation that the ‘487 Patent is invalid. In January 2020, the Company filed two additional patent infringement lawsuits in the Delaware District Court against Teva and Apotex for infringement of its Orange Book-listed U.S. Patent No. 10,449,176 (‘176 Patent) following the receipt of additional Paragraph IV Letters from Teva and Apotex regarding the ‘176 Patent, which expires in January 2033. These lawsuits have been consolidated with the other lawsuits against the HETLIOZ ® Defendants and are also scheduled for trial in July 2021. In January 2020 and February 2020, the Company received additional Paragraph IV Letters from MSN concerning the '487 patent and the '176 Patent, respectively, in which MSN alleges that the ‘487 and the '176 Patents are invalid, unenforceable and/or will not be infringed by the commercial manufacture, use, sale, offer for sale, or importation of MSN's generic version of HETLIOZ ® as described in MSN's ANDA. In February and March 2020 the Company filed two additional lawsuits in the Delaware District Court against MSN for infringement of its ‘487 Patent and ‘176 Patent. These lawsuits have been consolidated with the other lawsuits against the HETLIOZ ® Defendants and are also scheduled for trial in July 2021. Other Matters . In April 2018, the Company submitted a protocol amendment to the FDA, proposing a 52-week open-label extension (OLE) period for patients who had completed the tradipitant Phase II clinical study (2301) in gastroparesis. In May 2018, based on feedback from the FDA, the Company amended the protocol limiting the duration of treatment in the 2301 study to a total of three months, while continuing to seek further dialogue with the FDA on extending the study duration to 52-weeks. As a part of this negotiation process, in September 2018, the Company submitted a new follow-on 52-week OLE protocol to the FDA (2302) for patients who had completed the 2301 study. While waiting for further feedback, the Company did not enroll any patients in any study beyond 12 weeks. In December 2018, the FDA imposed a partial clinical hold (PCH) on the two proposed studies, stating that the Company is required first to conduct additional chronic toxicity studies in canines, monkeys or minipigs before allowing patients access in any clinical protocol beyond 12 weeks. At that time, the FDA informed the Company that the original PCH was not based on any safety or efficacy data related to tradipitant, but, rather that these additional toxicity studies were required by a guidance document. Subsequently, the FDA has taken the position that an additional study was required in order for the FDA to have adequate toxicology data to undertake a risk analysis of tradipitant. On February 5, 2019, the Company filed a lawsuit against the FDA in the U.S. District Court for the District of Columbia (DC District Court), challenging the FDA’s legal authority to issue the PCH, and seeking an order to set it aside. In February 2019, the FDA filed a Motion for Voluntary Remand to the Agency and for a Stay of the Case. In March 2019, the DC District Court granted the FDA’s request for voluntary remand and returned the matter to the FDA for further consideration. In April 2019, the FDA provided its remand response, in which it indicated that, upon review of scientific literature and tradipitant data, it believes that a PCH continues to be appropriate until the Company has adequate safety data from a nine-month non-rodent toxicity study. In May 2019, the Company filed an amended complaint, and in July 2019, the Company filed a Motion for Summary Judgment based on its continuing belief after review of the FDA’s remand response that additional chronic toxicity studies are unjustified, and that it has provided the FDA with sufficient information regarding the safety of tradipitant to justify the continued study of tradipitant in patients beyond 12 weeks, in accordance with applicable law and FDA regulations. The FDA filed a reply and cross-motion for summary judgment in October 2019 and an oral hearing was held in December 2019. In January 2020, the Court granted the FDA's cross-motion for summary judgment and granted judgment in favor of the FDA on the Company's claims. The Company has elected not to appeal the Court's ruling. In February 2019, a qui tam action filed against the Company was unsealed by order of the DC District Court. The qui tam action, which was filed under seal in March 2017, was brought by a former Company employee on behalf of the U.S., 28 states and the District of Columbia (collectively, the Plaintiff States) and the policyholders of certain insurance companies under the Federal False Claims Act and state law equivalents to the Federal False Claims Act and related state laws. The complaint alleged that the Company violated these laws through the promotion and marketing of its products Fanapt ® and HETLIOZ ® and sought, among other things, treble damages, civil penalties for each alleged false claim, and attorneys’ fees and costs. By virtue of the DC District Court having unsealed the original complaint, the Company learned that in January 2019, the U.S. Department of Justice (the DOJ), as well as the Plaintiff States, elected not to intervene in the qui tam action at that time. In May 2019, the plaintiff filed an amended complaint under seal repeating the same allegations and seeking the same relief. According to a filing unsealed in June 2019, the DOJ reaffirmed its decision not to intervene and incorporated its prior filing, indicating that neither the DOJ nor the Plaintiff States were intervening regarding the original complaint. Although the DOJ and the Plaintiff States have elected not to intervene, the plaintiff may litigate this action and the DOJ and the Plaintiff States may later seek to intervene in the action. In August 2019, the Company filed a motion to dismiss, and in October 2019 the plaintiff filed a reply. In March 2020, the DC District Court vacated the scheduled hearing on the Company's motion to dismiss and will notify the parties of a new hearing date if one is deemed necessary by the DC District Court. The Company intends to vigorously defend itself in the case. In February 2019, a securities class action, Gordon v. Vanda Pharmaceuticals Inc. , was filed in the U.S. District Court for the Eastern District of New York naming the Company and certain of its officers as defendants. An amended complaint was filed in July 2019. The amended complaint, filed on behalf of a purported stockholder, asserts claims on behalf of a putative class of all persons who purchased the Company’s publicly traded securities between November 4, 2015 and February 11, 2019, for alleged violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended, and Rule 10b-5 promulgated thereunder. The amended complaint alleges that the defendants made false and misleading statements and/or omissions regarding Fanapt ® , HETLIOZ ® and the Company’s interactions with the FDA regarding tradipitant between November 3, 2015 and February 11, 2019. On March 23, 2020, the Company filed a motion to dismiss the complaint. The plaintiff is expected to file its reply by May 7, 2020. The Company believes that it has meritorious defenses and intends to vigorously defend this lawsuit. The Company does not anticipate that this litigation will have a material adverse effect on its business, results of operations or financial condition. However, this lawsuit is subject to inherent uncertainties, the actual cost may be significant, and the Company may not prevail. The Company believes it is entitled to coverage under its relevant insurance policies, subject to a retention, but coverage could be denied or prove to be insufficient. In July 2019, a shareholder derivative complaint, Samuel Williams vs. Mihael Polymeropoulos, et al. , was filed in the U.S. District Court for the Eastern District of New York naming certain current and former Company directors and officers as defendants. In September 2019, a shareholder derivative complaint, Michael Bavaro v. Mihael Polymeropoulos, et al. , was filed in the Delaware District Court naming certain current and former Company directors and officers as defendants. In October 2019, the Company filed a motion to transfer the Bavaro case to the Eastern District of New York, where the Gordon and Williams cases are pending. In March 2020, the Delaware District Court transferred the Bavaro case to the Eastern District of New York, consolidating the Williams and Bavaro cases, and the plaintiffs filed a consolidated complaint on April 24, 2020. These complaints, filed on behalf of purported stockholders, derivatively on behalf of the Company, assert claims for alleged breach of fiduciary duties by certain of the Company’s current and former directors and officers. The Company believes that it has meritorious defenses and intends to vigorously defend these lawsuits. The Company does not anticipate that this litigation will have a material adverse effect on its business, results of operations or financial condition. However, these lawsuits are subject to inherent uncertainties, the actual cost may be significant, and the Company may not prevail. The Company believes it is entitled to coverage under its relevant insurance policies, subject to a retention, but coverage could be denied or prove to be insufficient. In July 2017, the CHMP issued a negative opinion recommending against approval of Fanaptum ® (oral iloperidone tablets) for the treatment of schizophrenia in adult patients in the E.U. The CHMP was of the opinion that the benefits of Fanaptum ® did not outweigh its risks and recommended against marketing authorization. In March 2018, the Company filed an application seeking annulment of the EMA’s negative opinion and the subsequent European Commission decision refusing marketing authorization of Fanaptum in the European General Court. In December 2019, the General Court issued its judgment dismissing the action, leaving the EMA opinion and Commission decision intact. In February 2020, the Company filed an appeal of this judgment with the Court of Justice of the E.U.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2020
Accounting Policies [Abstract]
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 and accompanying notes included in the Company's annual report on Form 10-K (Annual Report) for the fiscal year ended December 31, 2019 . The financial information as of March 31, 2020 and for the three months ended March 31, 2020 and 2019 is unaudited, but in the opinion of management, all adjustments considered necessary for a fair statement of the results for these interim periods have been included. All intercompany accounts and transactions have been eliminated in consolidation. The condensed consolidated balance sheet data as of December 31, 2019 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 any future year or period.
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. Management continually re-evaluates its estimates, judgments and assumptions, and management’s evaluation could change. Actual results could differ from those estimates.
Cash, Cash Equivalents and Restricted Cash	Cash, Cash Equivalents and Restricted Cash For purposes of the Condensed Consolidated Balance Sheets and Condensed Consolidated Statements of Cash Flows, cash equivalents represent highly-liquid investments with a maturity date of three months or less at the date of purchase. Cash and cash equivalents include investments in money market funds with commercial banks and financial institutions, and commercial paper of high-quality corporate issuers. Restricted cash relates primarily to amounts held as collateral for letters of credit for leases for office space at the Company’s Washington, D.C. headquarters.
Major Customers	Major Customers HETLIOZ ® is 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 which is the point at which control is transferred to the customer. There were five major customers that each accounted for more than 10% of total revenues and, as a group, represented 96% of total revenues for the three months ended March 31, 2020 . There were five major customers that each accounted for more than 10% of accounts receivable and, as a group, represented 94% of total accounts receivable at March 31, 2020 . Receivables are carried at transaction price net of allowance for credit losses. Allowance for credit losses is measured using historical loss rates based on the aging of receivables and incorporating current conditions and forward-looking estimates.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In December 2019, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2019-12, Income Taxes (Topic 740), Simplifying the Accounting for Income Taxes , which clarifies and simplifies certain aspects of the accounting for income taxes. The standard is effective for years beginning after December 15, 2020, and interim periods within annual periods beginning after December 15, 2020. The Company is evaluating this standard to determine if adoption will have a material impact on the Company’s condensed consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses , which changes the impairment model for most financial assets and certain other financial instruments. The standard requires the use of a forward-looking “expected loss” model for instruments measured at amortized cost that generally will result in the earlier recognition of allowances for losses. The standard is effective for years beginning after December 15, 2019, and interim periods within annual periods beginning after December 15, 2019. The adoption of this standard on January 1, 2020 did not have a material impact on the Company's condensed consolidated financial results.
Marketable securities	Marketable securities classified in Level 1 and Level 2 as of March 31, 2020 and December 31, 2019 consist of cash equivalents and 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 is also 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, corporate notes and asset-backed securities that use as their basis readily observable market parameters.
Inventory	InventoryThe 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 levels are evaluated for the amount of inventory that would be sold within one year. At certain times, the level of inventory can exceed the forecasted level of cost of goods sold for the next twelve months. The Company classifies the estimate of such inventory as non-current.
Earnings per Share	Earnings per Share Basic earnings per share (EPS) is calculated by dividing the net income (loss) by the weighted average number of shares of common stock outstanding. Diluted EPS is computed by dividing the net income (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.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2020
Accounting Policies [Abstract]
Schedule of Cash Flow, Supplemental Disclosures	The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Condensed Consolidated Balance Sheets to the total end of period cash, cash equivalents and restricted cash reported within the Condensed Consolidated Statement of Cash Flows: (in thousands) March 31, March 31, Cash and cash equivalents $ 64,950 $ 34,379 Restricted cash included in: Prepaid expenses and other current assets — 157 Non-current inventory and other 577 586 Total cash, cash equivalents and restricted cash $ 65,527 $ 35,122
Net Sales by Product	The Company’s net product sales consist of sales of HETLIOZ ® and Fanapt ® . Net sales by product for the three months ended March 31, 2020 and 2019 were as follows: Three Months Ended (in thousands) March 31, March 31, HETLIOZ ® product sales, net $ 35,336 $ 28,957 Fanapt ® product sales, net 22,664 18,756 Total net product sales $ 58,000 $ 47,713

Marketable Securities (Tables)

Marketable Securities (Tables)	3 Months Ended
	Mar. 31, 2020
Investments, Debt and Equity Securities [Abstract]
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, 2020 , which all have contractual maturities of less than two years: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value (in thousands) U.S. Treasury and government agencies $ 87,014 $ 558 $ — $ 87,572 Corporate debt 122,964 572 (110 ) 123,426 Asset-backed securities 36,386 56 (64 ) 36,378 Total marketable securities $ 246,364 $ 1,186 $ (174 ) $ 247,376 The following is a summary of the Company’s available-for-sale marketable securities as of December 31, 2019 , which all have contractual maturities of less than two years: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value (in thousands) U.S. Treasury and government agencies $ 88,535 $ 68 $ (2 ) $ 88,601 Corporate debt 129,860 196 (1 ) 130,055 Asset-backed securities 48,355 49 (3 ) 48,401 Total marketable securities $ 266,750 $ 313 $ (6 ) $ 267,057

(Tables)

(Tables)	3 Months Ended
	Mar. 31, 2020
Fair Value Disclosures [Abstract]
Assets Measured at Fair Value on Recurring Basis	As of March 31, 2020 , 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, 2020 Using Total Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (in thousands) (Level 1) (Level 2) (Level 3) U.S. Treasury and government agencies $ 87,572 $ 87,572 $ — $ — Corporate debt 123,426 — 123,426 — Asset-backed securities 36,378 — 36,378 — Total assets measured at fair value $ 247,376 $ 87,572 $ 159,804 $ — As of December 31, 2019 , 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, 2019 Using Total Fair Value Quoted Prices in Significant Other Significant (in thousands) (Level 1) (Level 2) (Level 3) U.S. Treasury and government agencies $ 88,601 $ 88,601 $ — $ — Corporate debt 137,025 — 137,025 — Asset-backed securities 48,401 — 48,401 — Total assets measured at fair value $ 274,027 $ 88,601 $ 185,426 $ —

Inventory (Tables)

Inventory (Tables)	3 Months Ended
	Mar. 31, 2020
Inventory Disclosure [Abstract]
Inventory	Inventory consisted of the following as of March 31, 2020 and December 31, 2019 : (in thousands) March 31, December 31, Current assets Finished goods $ 1,320 $ 1,140 Total inventory, current $ 1,320 $ 1,140 Non-Current assets Raw materials $ 659 $ 659 Work-in-process 949 1,109 Finished goods 934 1,056 Total inventory, non-current 2,542 2,824 Total inventory $ 3,862 $ 3,964

Intangible Assets (Tables)

Intangible Assets (Tables)	3 Months Ended
	Mar. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Summary of Intangible Assets	The following is a summary of the Company’s intangible assets as of March 31, 2020 : March 31, 2020 (in thousands) Estimated Useful Life (Years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount HETLIOZ ® July 2035 $ 33,000 $ 10,333 $ 22,667 The following is a summary of the Company’s intangible assets as of December 31, 2019 : December 31, 2019 (in thousands) Estimated Useful Life (Years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount HETLIOZ ® July 2035 $ 33,000 $ 9,963 $ 23,037
Summary of Future Intangible Asset Amortization	The following is a summary of the future intangible asset amortization schedule as of March 31, 2020 : (in thousands) Total 2020 2021 2022 2023 2024 Thereafter HETLIOZ ® $ 22,667 $ 1,108 $ 1,478 $ 1,478 $ 1,478 $ 1,478 $ 15,647

Accounts Payable and Accrued _2

Accounts Payable and Accrued Liabilities (Tables)	3 Months Ended
	Mar. 31, 2020
Payables and Accruals [Abstract]
Summary of Accounts Payable and Accrued Liabilities	The following is a summary of the Company’s accounts payable and accrued liabilities as of March 31, 2020 and December 31, 2019 : (in thousands) March 31, December 31, Consulting and other professional fees $ 7,636 $ 5,376 Research and development expenses 5,839 5,893 Royalties payable 4,912 5,904 Compensation and employee benefits 3,762 6,597 Operating lease liabilities 2,101 2,147 Other 1,795 1,673 Total accounts payable and accrued liabilities $ 26,045 $ 27,590

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Income (Tables)	3 Months Ended
	Mar. 31, 2020
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Summary of Accumulated Balances Related to Each Component of Other Comprehensive Income (Loss)	The accumulated balances related to each component of other comprehensive income (loss), net of taxes, were as follows as of March 31, 2020 and December 31, 2019 : (in thousands) March 31, December 31, Foreign currency translation $ — $ 13 Unrealized gain on marketable securities 781 236 Accumulated other comprehensive income $ 781 $ 249

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2020
Share-based Payment Arrangement [Abstract]
Summary of Option Activity Plan	A summary of option activity under the Plans for the three months ended March 31, 2020 follows: 2006 and 2016 Plans (in thousands, except for share and per share amounts) Number of Shares Weighted Average Exercise Price at Grant Date Weighted Average Remaining Term (Years) Aggregate Intrinsic Value Outstanding at December 31, 2019 4,495,145 $ 12.21 5.58 $ 21,148 Granted 487,500 11.42 Forfeited (225,000 ) 18.83 Expired (10,104 ) 11.78 Exercised (172,500 ) 4.96 890 Outstanding at March 31, 2020 4,575,041 12.07 5.81 4,818 Exercisable at March 31, 2020 3,379,139 11.02 4.63 4,818 Vested and expected to vest at March 31, 2020 4,340,916 11.99 5.60 4,818
Summary of RSU Activity for 2006 Plan and 2016 Plan	A summary of RSU activity under the Plans for the three months ended March 31, 2020 follows: 2006 and 2016 Plans Number of Shares Underlying RSUs Weighted Average Grant Date Fair Value Unvested at December 31, 2019 1,649,285 $ 18.04 Granted 745,818 11.32 Forfeited (136,091 ) 18.65 Vested (498,505 ) 16.73 Unvested at March 31, 2020 1,760,507 15.52
Stock-Based Compensation Expense	Stock-based compensation expense recognized for the three months ended March 31, 2020 and 2019 was comprised of the following: Three Months Ended (in thousands) March 31, March 31, Research and development $ 1,111 $ 728 Selling, general and administrative 2,833 2,554 Total stock-based compensation expense $ 3,944 $ 3,282
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, 2020 and 2019 were as follows: Three Months Ended March 31, March 31, Expected dividend yield 0 % 0 % Weighted average expected volatility 52 % 58 % Weighted average expected term (years) 6.09 5.92 Weighted average risk-free rate 1.37 % 2.51 %

Earnings per Share (Tables)

Earnings per Share (Tables)	3 Months Ended
	Mar. 31, 2020
Earnings Per Share [Abstract]
Basic and Diluted Net Loss Per Share of Common Stock	The following table presents the calculation of basic and diluted net income (loss) per share of common stock for the three months ended March 31, 2020 and 2019 : Three Months Ended (in thousands, except for share and per share amounts) March 31, March 31, Numerator: Net income (loss) $ 486 $ (612 ) Denominator: Weighted average shares outstanding, basic 53,806,317 52,752,774 Effect of dilutive securities 1,063,829 — Weighted average shares outstanding, diluted 54,870,146 52,752,774 Net income (loss) per share, basic and diluted: Basic $ 0.01 $ (0.01 ) Diluted $ 0.01 $ (0.01 ) Antidilutive securities excluded from calculations of diluted net income (loss) per share 3,095,224 3,068,806

Business Organization and Pre_2

Business Organization and Presentation (Detail)	3 Months Ended
	Mar. 31, 2020Segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of operating segments	1

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019	Mar. 31, 2019	Dec. 31, 2018
Cash and Cash Equivalents [Line Items]
Cash and cash equivalents	$ 64,950	$ 45,072	$ 34,379
Restricted cash included in:
Total cash, cash equivalents and restricted cash	65,527	$ 45,650	35,122	$ 61,749
Prepaid expenses and other current assets
Restricted cash included in:
Restricted cash	0		157
Non-current inventory and other
Restricted cash included in:
Restricted cash	$ 577		$ 586

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Net Sales by Product (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Revenue from External Customer [Line Items]
Net product sales	$ 58,000	$ 47,713
HETLIOZ® product sales, net
Revenue from External Customer [Line Items]
Net product sales	35,336	28,957
Fanapt® product sales, net
Revenue from External Customer [Line Items]
Net product sales	$ 22,664	$ 18,756

Summary of Significant Accoun_6

Summary of Significant Accounting Policies - Major Customers (Detail)	3 Months Ended
	Mar. 31, 2020Customer
Customer Concentration Risk | Sales Revenue, Net
Summary Of Significant Accounting Policies [Line Items]
Number of major customers that each accounted for more than 10% of total revenues	5
Concentration risk, percentage	96.00%
Credit Concentration Risk | Accounts Receivable
Summary Of Significant Accounting Policies [Line Items]
Concentration risk, percentage	94.00%
Number of major customers that each accounted for more than 10% of total accounts receivable	5

Marketable Securities Available

Marketable Securities Available-For-Sale Marketable Securities (Detail) - Noncurrent Investments - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 246,364	$ 266,750
Gross Unrealized Gains	1,186	313
Gross Unrealized Losses	(174)	(6)
Fair Market Value	247,376	267,057
U.S. Treasury and government agencies
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	87,014	88,535
Gross Unrealized Gains	558	68
Gross Unrealized Losses	0	(2)
Fair Market Value	87,572	88,601
Corporate debt
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	122,964	129,860
Gross Unrealized Gains	572	196
Gross Unrealized Losses	(110)	(1)
Fair Market Value	123,426	130,055
Asset-backed securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	36,386	48,355
Gross Unrealized Gains	56	49
Gross Unrealized Losses	(64)	(3)
Fair Market Value	$ 36,378	$ 48,401

Fair Value Measurements - Asset

Fair Value Measurements - Assets Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	$ 247,376	$ 274,027
U.S. Treasury and government agencies
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	87,572	88,601
Corporate debt
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	123,426	137,025
Asset-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	36,378	48,401
Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	87,572	88,601
Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Treasury and government agencies
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	87,572	88,601
Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate debt
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Asset-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	0	0
Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	159,804	185,426
Significant Other Observable Inputs (Level 2) | U.S. Treasury and government agencies
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	0	0
Significant Other Observable Inputs (Level 2) | Corporate debt
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	123,426	137,025
Significant Other Observable Inputs (Level 2) | Asset-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	36,378	48,401
Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	0	0
Significant Unobservable Inputs (Level 3) | U.S. Treasury and government agencies
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	0	0
Significant Unobservable Inputs (Level 3) | Corporate debt
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	0	0
Significant Unobservable Inputs (Level 3) | Asset-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	$ 0	0
Cash Equivalents
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value		$ 7,000

Inventory (Detail)

Inventory (Detail) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Current assets
Finished goods	$ 1,320	$ 1,140
Total inventory, current	1,320	1,140
Non-Current assets
Raw materials	659	659
Work-in-process	949	1,109
Finished goods	934	1,056
Total inventory, non-current	2,542	2,824
Total inventory	$ 3,862	$ 3,964

Intangible Assets - (HETLIOZ) -

Intangible Assets - (HETLIOZ) - Additional Information (Detail) - HETLIOZ® - USD ($) $ in Millions	1 Months Ended	3 Months Ended			194 Months Ended
	Apr. 30, 2018	Jun. 30, 2018	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2020
Finite-Lived Intangible Assets [Line Items]
Acquisition of intangible assets		$ 25		$ 8	$ 37.5
Cumulative worldwide sales milestone	$ 250
Intangible assets capitalized			$ 25		$ 33

Intangible Assets - (Fanapt) -

Intangible Assets - (Fanapt) - Additional Information (Detail) - USD ($) $ in Millions	Mar. 31, 2020	Dec. 31, 2019
Fanapt®
Finite-Lived Intangible Assets [Line Items]
Fully amortized intangible assets	$ 27.9	$ 27.9

Intangible Assets - Additional

Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible asset amortization	$ 370	$ 380

Intangible Assets - Summary of

Intangible Assets - Summary of Intangible Assets (Detail) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Finite-Lived Intangible Assets [Line Items]
Net Carrying Amount	$ 22,667	$ 23,037
HETLIOZ®
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	33,000	33,000
Accumulated Amortization	10,333	9,963
Net Carrying Amount	$ 22,667	$ 23,037

Intangible Assets - Summary o_2

Intangible Assets - Summary of Future Intangible Asset Amortization (Detail) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Finite-Lived Intangible Assets [Line Items]
Net Carrying Amount	$ 22,667	$ 23,037
HETLIOZ®
Finite-Lived Intangible Assets [Line Items]
Net Carrying Amount	22,667	$ 23,037
2020	1,108
2021	1,478
2022	1,478
2023	1,478
2024	1,478
Thereafter	$ 15,647

Accounts Payable and Accrued _3

Accounts Payable and Accrued Liabilities (Detail) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Payables and Accruals [Abstract]
Consulting and other professional fees	$ 7,636	$ 5,376
Research and development expenses	5,839	5,893
Royalties payable	4,912	5,904
Compensation and employee benefits	3,762	6,597
Operating lease liabilities	2,101	2,147
Other	1,795	1,673
Accounts payable and accrued liabilities	$ 26,045	$ 27,590

Commitments and Contingencies -

Commitments and Contingencies - (HETLIOZ) - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended				194 Months Ended
	Mar. 31, 2020	Jun. 30, 2018	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2020
HETLIOZ
Percentage of future sublicense fees payable to third-party	mid-twenties
HETLIOZ®
HETLIOZ
Acquisition of intangible assets		$ 25		$ 8	$ 37.5
Intangible assets capitalized			$ 25		$ 33
Royalty payment period	10 years
Royalty payable percentage on net sales	10.00%

Commitments and Contingencies_2

Commitments and Contingencies - (Fanapt) - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2020
November 16,2016 through December 31,2019
Fanapt
Royalty payable percentage on net sales	3.00%
Fanapt®
Fanapt
Royalty payable percentage on net sales	6.00%
Royalty payment period	10 years

Commitments and Contingencies_3

Commitments and Contingencies - (Tradipitant) - Additional Information (Detail) - Tradipitant - USD ($) $ in Millions	1 Months Ended	3 Months Ended	96 Months Ended
	Jul. 31, 2018	Mar. 31, 2020	Mar. 31, 2020
Commitments and Contingencies [Line Items]
Future percentage of royalty payments based net sales		low double digits
Development and milestone obligations paid to third party	$ 2		$ 3
Possible future milestone payment		$ 2
Sales Milestone
Commitments and Contingencies [Line Items]
Possible future milestone payment		80
UNITED STATES | Regulatory Approval Milestone
Commitments and Contingencies [Line Items]
Possible future milestone payment		10
Europe | Regulatory Approval Milestone
Commitments and Contingencies [Line Items]
Possible future milestone payment		$ 5

Commitments and Contingencies_4

Commitments and Contingencies - (VQW-765) - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2020
VQW-765
Commitments and Contingencies [Line Items]
Future percentage of royalty payments based net sales	mid-teens

Commitments and Contingencies_5

Commitments and Contingencies - (CFTR Activators and Inhibitors) - Additional Information (Detail) - CFTR Activators and Inhibitors - USD ($) $ in Thousands	1 Months Ended	3 Months Ended	12 Months Ended	37 Months Ended
	Mar. 31, 2019	Mar. 31, 2020	Dec. 31, 2017	Mar. 31, 2020
Commitments and Contingencies [Line Items]
Future percentage of royalty payments based net sales		single-digit
Development and milestone obligations paid to third party				$ 1,200
Regulatory Approval Milestone
CFTR activators and inhibitors
Possible future milestone payments		$ 12,200
Future Regulatory Approval And Sales Milestones
CFTR activators and inhibitors
Possible future milestone payments		33,000
Development And Milestone Payment, Conclusion Of Phase I Study
Commitments and Contingencies [Line Items]
Development and milestone obligations paid to third party	$ 200		$ 1,000
CFTR activators and inhibitors
Possible future milestone payments		350
Maximum | Development And Milestone Payment, Conclusion Of Phase I Study
CFTR activators and inhibitors
Possible future milestone payments		$ 1,100

Commitments and Contingencies_6

Commitments and Contingencies - Purchase Commitments (Details) $ in Millions	3 Months Ended
	Mar. 31, 2020USD ($)
Commitments and Contingencies Disclosure [Abstract]
Agreements for clinical and marketing services, termination notice period	90 days
Purchase Obligation, Fiscal Year Maturity [Abstract]
2020	$ 3.2
2021	1
2022	$ 0.5

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Income - Summary of Accumulated Balances Related to Each Component of Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Foreign currency translation	$ 0	$ 13
Unrealized gain on marketable securities	781	236
Accumulated other comprehensive income	$ 781	$ 249

Accumulated Other Comprehensi_4

Accumulated Other Comprehensive Income - Additional Information (Detail) - USD ($)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Reclassification Out of Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Reclassifications out of accumulated other comprehensive income (loss)	$ 0	$ 0

Stock-Based Compensation - (Sto

Stock-Based Compensation - (Stock-Based Compensation) - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2020shares
2006 Plan and 2016 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 (in shares)	6,335,548
2016 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares of common stock reserved for issuance (in shares)	7,100,000
Number of shares of common stock available for future grant (in shares)	2,153,920

Stock-Based Compensation - (S_2

Stock-Based Compensation - (Stock Option) - Additional Information (Detail) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2020USD ($)installment$ / shares	Mar. 31, 2019USD ($)$ / shares
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%
Number of vesting equal installments | installment	36
Vesting period for subsequent stock options granted to directors	4 years
Options granted, weighted average fair value per share (in dollars per share) | $ / shares	$ 5.73	$ 11.50
Proceeds from exercise of employee stock options	$ 479	$ 179
Service option awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expenses	$ 9,100
Unrecognized compensation expenses, weighted average period	1 year 6 months

Stock-Based Compensation - (RSU

Stock-Based Compensation - (RSU) - Additional Information (Detail) $ in Millions	3 Months Ended
	Mar. 31, 2020USD ($)installmentshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of vesting equal installments | installment	36
Restricted Stock Units (RSU)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of vesting equal installments | installment	4
Unrecognized compensation expenses related to unvested RSUs | $	$ 25.9
Unrecognized compensation expenses, weighted average period	2 years
Grant date fair value of common stock granted (in shares) | shares	498,505
Grant date fair value of common stock vested | $	$ 8.3

Stock-Based Compensation - Summ

Stock-Based Compensation - Summary of Option Activity for 2006 Plan and the 2016 Plan (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Number of Shares
Expired (in shares)	(10,104)
Weighted Average Exercise Price at Grant Date
Expired (in dollars per share)	$ 11.78
2006 Plan and 2016 Plan
Number of Shares
Beginning balance (in shares)	4,495,145
Granted (in shares)	487,500
Forfeited (in shares)	(225,000)
Exercised (in shares)	(172,500)
Ending balance (in shares)	4,575,041	4,495,145
Exercisable (in shares)	3,379,139
Vested and expected to vest at end of period (in shares)	4,340,916
Weighted Average Exercise Price at Grant Date
Beginning balance (in dollars per share)	$ 12.21
Granted (in dollars per share)	11.42
Forfeited (in dollars per share)	18.83
Exercised (in dollars per share)	4.96
Ending balance (in dollars per share)	12.07	$ 12.21
Exercisable (in dollars per share)	11.02
Vested and expected to vest at end of period (in dollars per share)	$ 11.99
Weighted Average Remaining Term (Years)
Weighted Average Remaining Term	5 years 9 months 21 days	5 years 6 months 29 days
Exercisable	4 years 7 months 17 days
Vested and expected to vest at end of period	5 years 7 months 6 days
Aggregate Intrinsic Value
Beginning balance	$ 21,148
Exercised	890
Ending balance	4,818	$ 21,148
Exercisable	4,818
Vested and expected to vest at end of period	$ 4,818

Stock-Based Compensation - Su_2

Stock-Based Compensation - Summary of RSU Activity Plan (Detail) - Restricted Stock Units (RSU)	3 Months Ended
	Mar. 31, 2020$ / sharesshares
Number of Shares Unvested
Beginning balance (in shares) | shares	1,649,285
Granted (in shares) | shares	745,818
Forfeited (in shares) | shares	(136,091)
Vested (in shares) | shares	(498,505)
Ending balance (in shares) | shares	1,760,507
Weighted Average Price/Share Unvested
Beginning balance (in dollars per share) | $ / shares	$ 18.04
Granted (in dollars per share) | $ / shares	11.32
Forfeited (in dollars per share) | $ / shares	18.65
Vested (in dollars per share) | $ / shares	16.73
Ending balance (in dollars per share) | $ / shares	$ 15.52

Stock-Based Compensation - Tota

Stock-Based Compensation - Total Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	$ 3,944	$ 3,282
Research and development
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	1,111	728
Selling, general and administrative
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	$ 2,833	$ 2,554

Stock-Based Compensation - Blac

Stock-Based Compensation - Black-Scholes-Merton Option Pricing Model for Stock Options Granted (Detail)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Share-based Payment Arrangement [Abstract]
Expected dividend yield	0.00%	0.00%
Weighted average expected volatility	52.00%	58.00%
Weighted average expected term (years)	6 years 1 month 2 days	5 years 11 months 1 day
Weighted average risk-free rate	1.37%	2.51%

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Income Tax Disclosure [Abstract]
Income tax expense (benefit)	$ 755	$ 10
Discrete impact of net shortfall tax expense	$ 400

Earnings per Share (Detail)

Earnings per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Numerator:
Net income (loss)	$ 486	$ (612)
Denominator:
Weighted average shares outstanding, basic (in shares)	53,806,317	52,752,774
Effect of dilutive securities (in shares)	1,063,829	0
Weighted average shares outstanding, diluted (in shares)	54,870,146	52,752,774
Net income (loss) per share, basic and diluted:
Basic (in dollars per share)	$ 0.01	$ (0.01)
Diluted (in dollars per share)	$ 0.01	$ (0.01)
Antidilutive securities excluded from calculations of diluted net income per share (in shares)	3,095,224	3,068,806