Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Oct. 31, 2016 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Emergent BioSolutions Inc. | |
Entity Central Index Key | 1,367,644 | |
Current Fiscal Year End Date | --12-31 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 40,498,025 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2016 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 298,932 | $ 308,304 |
Accounts receivable, net | 69,633 | 113,906 |
Inventories | 81,160 | 60,887 |
Deferred tax assets, current portion, net | 0 | 0 |
Income tax receivable, net | 11,831 | 6,573 |
Prepaid expenses and other current assets | 18,439 | 18,458 |
Current assets of discontinued operations | 0 | 29,282 |
Total current assets | 479,995 | 537,410 |
Property, plant and equipment, net | 362,544 | 327,808 |
In process research and development | 0 | 701 |
Intangible assets, net | 35,419 | 40,758 |
Goodwill | 41,001 | 41,001 |
Deferred tax assets, net | 11,286 | 11,286 |
Other assets | 1,781 | 2,155 |
Non-current assets of discontinued operations | 0 | 76,365 |
Total assets | 932,026 | 1,037,484 |
Current liabilities: | ||
Accounts payable | 46,342 | 37,970 |
Accrued expenses and other current liabilities | 4,279 | 6,207 |
Accrued compensation | 32,102 | 31,998 |
Notes payable, current portion | 20,000 | 0 |
Contingent consideration, current portion | 2,759 | 2,109 |
Provision for chargebacks | 0 | 0 |
Deferred revenue, current portion | 4,824 | 3,979 |
Current liabilities of discontinued operations | 0 | 17,348 |
Total current liabilities | 110,306 | 99,611 |
Contingent consideration, net of current portion | 20,169 | 23,046 |
Long-term indebtedness | 247,793 | 246,892 |
Deferred revenue, net of current portion | 4,695 | 3,426 |
Other liabilities | 1,440 | 1,258 |
Non-current liabilities of discontinued operations | 0 | 3,234 |
Total liabilities | 384,403 | 377,467 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred stock, $0.001 par value; 15,000,000 shares authorized, 0 shares issued and outstanding at both September 30, 2016 and December 31, 2015 | 0 | 0 |
Common stock, $0.001 par value; 200,000,000 shares authorized, 40,910,479 shares issued and 40,487,649 shares outstanding at September 30, 2016; 100,000,000 shares authorized, 39,829,408 shares issued and 39,406,578 shares outstanding at December 31, 2015 | 41 | 40 |
Treasury stock, at cost, 422,830 common shares at both September 30, 2016 and December 31, 2015 | (6,420) | (6,420) |
Additional paid-in capital | 342,888 | 317,971 |
Accumulated other comprehensive loss | (3,572) | (2,713) |
Retained earnings | 214,686 | 351,139 |
Total stockholders' equity | 547,623 | 660,017 |
Total liabilities and stockholders' equity | $ 932,026 | $ 1,037,484 |
Consolidated Balance Sheets (U3
Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Sep. 30, 2016 | Dec. 31, 2015 |
Stockholders' equity: | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 15,000,000 | 15,000,000 |
Preferred stock, 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) | 200,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 40,910,479 | 39,829,408 |
Common stock, shares outstanding (in shares) | 40,487,649 | 39,406,578 |
Treasury stock ( in shares) | 422,830 | 422,830 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |||
Revenues: | ||||||
Product sales | $ 96,698 | $ 117,512 | $ 208,785 | $ 204,563 | ||
Contract manufacturing | 14,712 | 11,341 | 32,455 | 32,443 | ||
Contracts, grants and collaborations | 31,504 | 29,525 | 95,879 | 92,541 | ||
Total revenues | 142,914 | 158,378 | 337,119 | 329,547 | ||
Operating expenses: | ||||||
Cost of product sales and contract manufacturing | 39,560 | 35,240 | 93,025 | 73,083 | ||
Research and development | 27,188 | 34,179 | 81,173 | 93,833 | ||
Selling, general and administrative | 40,688 | 25,800 | 108,328 | 86,263 | ||
Income from operations | 35,478 | 63,159 | 54,593 | 76,368 | ||
Other income (expense): | ||||||
Interest income | 358 | 104 | 764 | 459 | ||
Interest expense | (2,049) | (1,635) | (5,082) | (4,923) | ||
Other income (expense), net | (234) | 519 | (176) | 669 | ||
Total other expense, net | (1,925) | (1,012) | (4,494) | (3,795) | ||
Income from continuing operations before provision for income taxes | 33,553 | 62,147 | 50,099 | 72,573 | ||
Provision for income taxes | 13,165 | 20,059 | 19,861 | 23,648 | ||
Net Income from continuing operations | 20,388 | 42,088 | 30,238 | 48,925 | ||
Income (loss) from discontinued operations (net of tax) | 952 | (5,145) | (15,854) | (19,402) | ||
Net income | $ 21,340 | $ 36,943 | $ 14,384 | $ 29,523 | ||
Net income per share - basic: | ||||||
Income from continuing operations (in dollars per share) | $ 0.50 | $ 1.08 | $ 0.75 | $ 1.28 | ||
Income (loss) from discontinued operations (in dollars per share) | 0.02 | (0.14) | (0.40) | (0.51) | ||
Net income per share - basic (in dollars per share) | 0.52 | 0.94 | 0.35 | 0.77 | ||
Net income per share - diluted: | ||||||
Income from continuing operations (in dollars per share) | 0.43 | [1] | 0.90 | [1] | 0.68 | 1.11 |
Income (loss) from discontinued operations (in dollars per share) | 0.02 | (0.11) | (0.32) | (0.42) | ||
Net income per share - diluted (in dollars per share) | $ 0.45 | [1] | $ 0.79 | [1] | $ 0.36 | $ 0.69 |
Weighted-average number of shares - basic (in shares) | 40,465,423 | 38,831,341 | 40,071,730 | 38,423,715 | ||
Weighted-average number of shares - diluted (in shares) | 49,440,313 | 47,784,550 | 48,826,597 | 46,958,179 | ||
[1] | See Note 8 "Earnings per share" for details on calculation. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Consolidated Statements of Comprehensive Income (Unaudited) [Abstract] | ||||
Net income | $ 21,340 | $ 36,943 | $ 14,384 | $ 29,523 |
Foreign currency translations, net of tax | (492) | (495) | (859) | (1,144) |
Comprehensive income | $ 20,848 | $ 36,448 | $ 13,525 | $ 28,379 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 14,384 | $ 29,523 |
Adjustments to reconcile to net cash provided by (used in) operating activities: | ||
Stock-based compensation expense | 14,527 | 11,802 |
Depreciation and amortization | 28,155 | 25,859 |
Income taxes | 4,814 | 15,904 |
Change in fair value of contingent obligations | (1,253) | (10,898) |
Write off of debt issuance costs | 0 | 0 |
Impairment of in-process research and development | 0 | 9,827 |
Abandonment of long-lived assets | 3,749 | 0 |
Excess tax benefits from stock-based compensation | (10,825) | (8,002) |
Other | 2,467 | 197 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 45,035 | 1,749 |
Inventories | (16,183) | (14,396) |
Income taxes | (14,662) | (22,707) |
Prepaid expenses and other assets | (3,146) | 1,010 |
Accounts payable | (1,305) | 1,902 |
Accrued expenses and other liabilities | (1,699) | (2,060) |
Accrued compensation | (152) | (1,688) |
Provision for chargebacks | 103 | (296) |
Deferred revenue | (1,348) | 3,663 |
Net cash provided by operating activities | 62,661 | 41,389 |
Cash flows from investing activities: | ||
Purchases of property, plant and equipment | (56,243) | (33,631) |
Acquisition of Cangene Corporation, net of acquired cash | 0 | 0 |
Net cash used in investing activities | (56,243) | (33,631) |
Cash flows from financing activities: | ||
Proceeds from convertible debenture, net of bank fees | 0 | 0 |
Proceeds from long-term debt obligations | 0 | 2,000 |
Issuance of common stock upon exercise of stock options | 14,981 | 15,902 |
Excess tax benefits from stock-based compensation | 10,825 | 8,002 |
Distribution of Aptevo | (45,000) | 0 |
Contingent obligation payments | (1,226) | (5,427) |
Net cash (used in) provided by financing activities | (20,420) | 20,477 |
Effect of exchange rate changes on cash and cash equivalents | 139 | (16) |
Net (decrease) increase in cash and cash equivalents | (13,863) | 28,219 |
Cash and cash equivalents at beginning of period | 312,795 | 280,499 |
Cash and cash equivalents at end of period | $ 298,932 | $ 308,718 |
Summary of significant accounti
Summary of significant accounting policies | 9 Months Ended |
Sep. 30, 2016 | |
Summary of significant accounting policies [Abstract] | |
Summary of significant accounting policies | 1. Summary of significant accounting policies Basis of presentation and consolidation On August 6, 2015, Emergent BioSolutions Inc. (the "Company" or "Emergent"), announced its plan to separate into two independent publicly-traded companies. On August 1, 2016, the Company accomplished this plan through the completion of the spin-off of Aptevo Therapeutics Inc. ("Aptevo"), a biotechnology company focused on novel oncology and hematology therapeutics to meaningfully improve patients' lives. Emergent remains as a global specialty life sciences company focused on providing specialty products for civilian and military populations that address intentional and naturally emerging public health threats. In anticipation of the spin-off, the Company realigned certain components of its biosciences business to the new Aptevo segment to be consistent with how the Company's chief operating decision maker ("CODM") allocates resources and makes decisions about the operations of the Company. Effective January 1, 2016, the Company changed its segment presentation to reflect this new structure, and recast all prior periods presented to conform to the new presentation. On August 1, 2016, the Company completed the spin-off of Aptevo. Aptevo is now an independent public company trading under the symbol "APVO" on the NASDAQ Global Select Market ("NASDAQ"). The results of operations and financial position of Aptevo are reflected as discontinued operations for all periods presented through the date of the spin-off. The historical financial statements and footnotes have been revised accordingly. See Note 2. "Discontinued operations" for further details regarding the spin-off. For periods following the spin-off, the Company reports financial results under one business segment. The accompanying unaudited consolidated financial statements include the accounts of Emergent and its subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. The unaudited consolidated financial statements included herein have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X issued by the Securities and Exchange Commission ("SEC"). Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with U.S. generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2015, as filed with the SEC. During the nine months ended September 30, 2016 there have been no significant changes to the Company's summary of significant accounting policies contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2015, as filed with the SEC. In the opinion of the Company's management, any adjustments contained in the accompanying unaudited consolidated financial statements are of a normal recurring nature, except for the adjustments associated with the spin-off of Aptevo, and are necessary to present fairly the financial position of the Company as of September 30, 2016, specifically: the results of operations and comprehensive income for the three and nine months ended September 30, 2016 and 2015; and cash flows for the nine months ended September 30, 2016 and 2015. Interim results are not necessarily indicative of results that may be expected for any other interim period or for an entire year. We analyze our multiple element revenue-generating arrangements to determine whether the elements can be separated and accounted for individually as separate units of accounting. An item can generally be considered a separate unit of accounting if both of the following criteria are met: (1) the delivered item(s) has value to the customer on a stand-alone basis and (2) if the arrangement includes a general right of return and delivery or performance of the undelivered item(s) is considered probable and substantially in our control. Items that cannot be divided into separate units are combined with other units of accounting, as appropriate. Consideration received is allocated among the separate units based on the unit's relative selling price and is recognized in full when the appropriate revenue recognition criteria are met. We deem services to be rendered if no continuing obligation exists on our part. As of September 30, 2016, the Company has determined that its US Government contracts for Anthrasil™ (Anthrax Immune Globulin Intravenous (Human), BAT™ (Botulism Antitoxin Heptavalent (A,B,C,D,E,F,G)-Equine and VIGIV (Vaccinia Immune Globulin Intravenous (Human)) are multiple element arrangements. Recent accounting standards In April 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity In May 2014, the FASB issued ASU No. 2014-09, Summary and Amendments That Create Revenue from Contracts with Customers (Topic 606) and Other Assets and Deferred Costs—Contracts with Customers (Subtopic 340-40) In April 2015, the FASB issued ASU No. 2015-03, Interest - Imputation of Interest (Subtopic 835-30) In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation (Topic 718) |
Discontinued Operations
Discontinued Operations | 9 Months Ended |
Sep. 30, 2016 | |
Discontinued Operations [Abstract] | |
Discontinued Operations | 2. Discontinued operations On August 1, 2016, the Company completed the spin-off of Aptevo through The historical balance sheet and statements of operations of Aptevo have been presented as discontinued operations in the consolidated financial statements and prior periods have been restated. Discontinued operations include results of Aptevo's business except for certain allocated corporate overhead costs and certain costs associated with transition services provided by the Company to Aptevo. These allocated costs remain part of continuing operations. Due to differences between the basis of presentation for discontinued operations and the basis of presentation as a stand-alone company, the financial results of Aptevo included within discontinued operations for the Company may not be indicative of actual financial results of Aptevo. In conjunction with the spin-off, the Company entered into a Separation and Distribution Agreement with Aptevo to effect the separation of Aptevo from the Company (the "Separation"). The Company also entered into various other agreements to provide a framework for its relationship with Aptevo after the Separation, including a manufacturing services agreement, transition services agreement, a tax matters agreement and an employee matters agreement. The Separation and Distribution Agreement with Aptevo sets forth, among other things, the assets that were transferred, the liabilities assumed, and the contracts that were assigned to each of Aptevo and the Company as part of the Separation of the Company into two companies, and provided for when and how these transfers, assumptions and assignments were to occur. Under the terms of the manufacturing services agreement, the Company agreed to provide contract manufacturing services for certain of Aptevo's products commencing on the date of the Distribution. The contract has a term of ten years. For the three and nine months ended September 30, 2016, there has been no revenue under this agreement. Under the terms of the transition services agreement, the Company agreed to provide on an interim, transitional basis, various services, including, but not limited to, accounts payable administration, information technology services, regulatory and clinical support, general administrative services and other support services commencing on the date of the Distribution and terminating up to two years following the date of the Distribution. During the three and nine months ended September 30, 2016, approximately $0.5 million of transition services revenue associated with the provision of services to Aptevo. The tax matters agreement governs the respective rights, responsibilities and obligations of Aptevo and the Company with respect to taxes (including taxes arising in the ordinary course of business and taxes, if any, incurred as a result of any failure of the Distribution and certain related transactions to qualify as tax-free for U.S. federal income tax purposes), tax attributes, tax returns, tax proceedings and certain other tax matters. The employee matters agreement governs certain compensation and employee benefit obligations and allocates liabilities and responsibilities relating to employment matters, employee compensation and benefit plans and programs and other related matters, including the transfer or assignment of employees from the Company to Aptevo. The following table represents the carrying value of Aptevo's assets and liabilities distributed as part of the Separation on August 1, 2016: (in thousands) August 1, 2016 Assets: Cash and cash equivalents $ 45,000 Accounts receivable, net 4,465 Inventories 11,959 Other current assets 4,870 Current assets of discontinued operations 66,294 Property, plant and equipment, net 6,128 In-process research and development 41,800 Intangible assets, net 15,402 Goodwill 13,902 Non-current assets of discontinued operations 77,232 Total assets of discontinued operations $ 143,526 Liabilities: Accounts payable $ 6,285 Accrued expenses and other current liabilities 64 Accrued compensation 2,456 Contingent consideration 191 Provisions for chargebacks 2,341 Deferred revenue, current portion 433 Current liabilities of discontinued operations 11,770 Deferred revenue, net of current portion 3,232 Other liabilities 91 Non-current liabilities of discontinued operations 3,323 Total liabilities of discontinued operations $ 15,093 The following table represents Aptevo's assets and liabilities presented as discontinued operations and classified as held-for-disposition as of December 31, 2015: (in thousands) December 31, 2015 Assets: Cash and cash equivalents $ 4,492 Accounts receivable, net 6,861 Inventories 16,049 Prepaid expenses and other current assets 1,880 Current assets of discontinued operations 29,282 Property, plant and equipment, net 4,046 In-process research and development 41,800 Intangible assets, net 16,617 Goodwill 13,902 Non-current assets of discontinued operations 76,365 Total assets of discontinued operations $ 105,647 Liabilities: Accounts payable $ 8,134 Accrued expenses and other current liabilities 22 Accrued compensation 2,684 Contingent consideration, current portion 306 Provisions for chargebacks 2,238 Deferred revenue, current portion 3,964 Current liabilities of discontinued operations 17,348 Deferred revenue, net of current portion 3,163 Other liabilities 71 Non-current liabilities of discontinued operations 3,234 Total liabilities of discontinued operations $ 20,582 The following table summarizes results from discontinued operations of Aptevo included in the consolidated statements of operations: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2016 2015 2016 2015 Revenues: Product sales $ 3,019 $ 6,441 $ 21,183 $ 19,704 Collaborations 68 121 187 5,434 Total revenues 3,087 6,562 21,370 25,138 Operating expense: Cost of product sales 907 3,270 11,556 11,442 Research and development 2,509 7,689 18,024 27,678 Selling, general and administrative 7,499 5,756 23,792 16,239 Loss from operations (7,828 ) (10,153 ) (32,002 ) (30,221 ) Other income (expense), net: (116 ) 83 (41 ) (464 ) Loss from discontinued operations before benefit from income taxes (7,944 ) (10,070 ) (32,043 ) (30,685 ) Benefit from income taxes (8,896 ) (4,925 ) (16,189 ) (11,283 ) Net loss from discontinued operations $ 952 $ (5,145 ) $ (15,854 ) $ (19,402 ) The following table summarizes the cash flows of Aptevo included in the September 30, 2016 and 2015 consolidated statements of cash flows: Nine Months Ended September 30, (in thousands) 2016 2015 Net cash (used in) provided by operating activities $ (17,813 ) $ 1,414 Net cash used in investing activities (1,925 ) (970 ) Net cash provided by (used in) financing activities 15,247 (679 ) Net increase (decrease) in cash and cash equivalents $ (4,491 ) $ (235 ) |
Fair value measurements
Fair value measurements | 9 Months Ended |
Sep. 30, 2016 | |
Fair value measurements [Abstract] | |
Fair value measurements | 3. Fair value measurements The following table represents the Company's fair value hierarchy for its financial assets and liabilities measured at fair value on a recurring basis: September 30, 2016 (in thousands) Level 1 Level 2 Level 3 Total Assets: Investment in money market funds (1) $ 10 $ - $ - $ 10 Total assets $ 10 $ - $ - $ 10 Liabilities: Contingent consideration $ - $ - $ 22,928 $ 22,928 Total liabilities $ - $ - $ 22,928 $ 22,928 December 31, 2015 (in thousands) Level 1 Level 2 Level 3 Total Assets: Investment in money market funds (1) $ 3,323 $ - $ - $ 3,323 Total assets $ 3,323 $ - $ - $ 3,323 Liabilities: Contingent consideration $ - $ - $ 25,155 $ 25,155 Total liabilities $ - $ - $ 25,155 $ 25,155 (1) Included in cash and cash equivalents in the accompanying consolidated balance sheets. During the nine months ended September 30, 2016, the Company did not have any transfers between Level 1 and Level 2 assets or liabilities. For the three months ended September 30, 2016, the contingent consideration obligation associated with the EV-035 series of molecules increased by $0.1 million. For the nine months ended September 30, 2016, the contingent consideration obligation associated with the EV-035 series of molecules decreased by $0.3 million. For the three and nine months ended September 30, 2015, the contingent consideration obligation decreased by $9.9 million and $9.5 million, respectively. These changes are primarily due to the estimated timing and probability of success for certain development and regulatory milestones and the estimated timing and volume of potential future sales of the EV-035 series of molecules and the broad spectrum antiviral platform, which are inputs that have no observable market (Level 3), along with the novation of the Defense Threat Reduction Agency ("DTRA") contract for the EV-035 series of molecules. These decreases and increases in the contingent consideration were classified in the Company's statement of operations as both selling, general and administrative expense and research and development expense. During the nine months ended September 30, 2015, the Company received novation of the DTRA contract and paid the $4.0 million milestone to Evolva in the second quarter of 2015. For the three and nine months ended September 30, 2016, the contingent purchase consideration obligations associated with RSDL decreased by $2.3 million and $1.0 million, respectively. For the three and nine months ended September 30, 2015, the contingent consideration obligations associated with RSDL decreased by $1.9 million and $1.8 million, respectively. The fair value of the RSDL contingent consideration obligations decreased as a result of management's assessment of the assumed and actual achievement of future net sales, which are inputs that have no observable market (Level 3). These changes are classified in the Company's statement of operations as cost of product sales and contract manufacturing. The following table is a reconciliation of the beginning and ending balance of the liabilities, consisting only of contingent consideration, measured at fair value using significant unobservable inputs (Level 3) during the nine months ended September 30, 2016. (in thousands) Balance at December 31, 2015 $ 25,155 Income included in earnings 1,263 Settlements (964 ) Purchases, sales and issuances - Transfers in/(out) of Level 3 - Balance at September 30, 2016 $ 22,928 Separate disclosure is required for assets and liabilities measured at fair value on a recurring basis from those measured at fair value on a non-recurring basis. As of September 30, 2016, the in-process research and development asset for the EV-035 series of molecules was measured at fair value on a non-recurring basis. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2016 | |
Inventories [Abstract] | |
Inventories | 4. Inventories Inventories consisted of the following: September 30, December 31, (in thousands) 2016 2015 Raw materials and supplies $ 31,239 $ 21,275 Work-in-process 24,459 32,709 Finished goods 25,462 6,903 Total inventories $ 81,160 $ 60,887 |
Property, plant and equipment
Property, plant and equipment | 9 Months Ended |
Sep. 30, 2016 | |
Property, plant and equipment [Abstract] | |
Property, plant and equipment | 5. Property, plant and equipment Property, plant and equipment consisted of the following: September 30, December 31, (in thousands) 2016 2015 Land and improvements $ 20,391 $ 16,520 Buildings, building improvements and leasehold improvements 141,322 108,908 Furniture and equipment 191,529 129,933 Software 52,744 39,683 Construction-in-progress 64,885 126,531 Property, plant and equipment, gross 470,871 421,575 Less: Accumulated depreciation and amortization (108,327 ) (93,767 ) Total property, plant and equipment, net $ 362,544 $ 327,808 |
Intangible assets, in-process r
Intangible assets, in-process research and development | 9 Months Ended |
Sep. 30, 2016 | |
Intangible assets and in-process research and development [Abstract] | |
Intangible assets, in-process research and development | 6. Intangible assets and in-process research and development Intangible assets consisted of the following: (in thousands) Cost basis Balance at December 31, 2015 $ 57,099 Additions - Balance at September 30, 2016 $ 57,099 Accumulated amortization Balance at December 31, 2015 $ (16,343 ) Amortization (5,337 ) Balance at September 30, 2016 $ (21,680 ) Net balance at September 30, 2016 $ 35,419 In September 2015, the Company received data for the leading molecule in the EV-035 series of molecules, GC-072, that indicated a potential toxicity issue. The Company considered this information an indicator of impairment of the related EV-035 series of molecules in-process research and development ("IPR&D") asset, and completed an impairment assessment of this asset. For the three months ended September 30, 2016 and 2015, the Company recorded amortization expense of $1.7 million and $1.8 million, respectively. For the nine months ended September 30, 2016 and 2015, the Company recorded amortization expense of $5.3 million and $5.5 million, respectively, for intangible assets, which has been recorded in operating expenses, specifically selling, general and administrative and cost of product sales and contract manufacturing. As of September 30, 2016, the weighted average amortization period remaining for intangible assets is 78 months. |
Long-term debt
Long-term debt | 9 Months Ended |
Sep. 30, 2016 | |
Long-term debt [Abstract] | |
Long-term debt | 7. Long-term debt As of December 31, 2015, the Company reclassified debt issuance costs of $1.2 million and $4.9 million from prepaid expenses and other current assets and other assets, respectively, as a reduction to long-term debt. On January 29, 2014, the Company issued $250.0 million aggregate principal amount of 2.875% Convertible Senior Notes due 2021 (the "Notes"). The Notes mature on January 15, 2021, unless earlier purchased by the Company or converted. The original conversion rate was equal to 30.8821 shares of common stock per $1,000 principal amount of notes (which is equivalent to a conversion price of approximately $32.38 per share of common stock). The conversion rate is subject to adjustment upon the occurrence of certain specified events but will not be adjusted for accrued and unpaid interest. As of August 1, 2016, certain conversion features were triggered due to the completion of the Aptevo spin-off. The conversion rate under the Notes was adjusted in accordance with the terms of the indenture. Effective August 12, 2016, the conversion rate was adjusted to 32.3860 shares of common stock per $1,000 principal amount of notes (which is equivalent to a conversion price of approximately $30.88 per share of common stock). |
Equity awards
Equity awards | 9 Months Ended |
Sep. 30, 2016 | |
Equity awards [Abstract] | |
Equity awards | 8. Equity As of September 30, 2016, the Company had two stock-based employee compensation plans, the Fourth Amended and Restated Emergent BioSolutions Inc. 2006 Stock Incentive Plan (the "2006 Plan") and the Emergent BioSolutions Employee Stock Option Plan (the "2004 Plan"). The Company refers to both plans together as the "Emergent Plans." On May 19, 2016, at the Company's annual meeting, the Company's shareholders approved the Fourth Amended and Restated Emergent BioSolutions Inc. 2006 Stock Incentive Plan, and the issuance of 3.8 million shares thereunder. In addition, the Company's shareholders approved an increase in the number of authorized shares of common stock to 200 million shares from 100 million shares. In connection with the Separation, on August 1, 2016 and in accordance with the employee matters agreement and the Emergent Plans, the Company made certain adjustments to the exercise price and number of equity awards. Continuing Emergent employees with equity awards issued prior to Distribution received an equitable adjustment reflecting a revised exercise price and number of equity awards granted. Continuing Aptevo employees who had been granted Emergent equity awards had their grants canceled and reissued as Aptevo equity awards with an adjusted exercise price. The following is a summary of stock option award activity: 2006 Plan 2004 Plan Number of Shares Weighted-Average Exercise Price Number of Shares Weighted-Average Exercise Price Aggregate Intrinsic Value Outstanding at December 31, 2015 2,964,237 $ 22.73 29,699 $ 10.28 $ 52,119,607 Granted 403,978 33.70 - - Exercised (750,293 ) 19.56 (29,699 ) 10.28 Forfeited (62,441 ) 27.48 - - Canceled (146,986 ) 28.33 - - Equitable adjustment 236,313 22.90 - - Outstanding at September 30, 2016 2,644,808 22.84 - - 22,976,804 Exercisable at September 30, 2016 1,558,840 $ 19.51 - $ - $ 18,732,937 The following is a summary of restricted stock unit award activity: Number of Shares Weighted-Average Grant Price Aggregate Intrinsic Value Outstanding at December 31, 2015 889,004 $ 26.86 $ 35,569,048 Granted 488,738 34.36 Vested (416,289 ) 24.68 Forfeited (46,994 ) 29.84 Canceled (107,514 ) 30.90 Equitable adjustment 79,339 28.86 Outstanding at September 30, 2016 886,284 $ 28.95 $ 24,922,306 On July 14, 2016, the Company's board of directors authorized management to repurchase, from time to time, up to an aggregate of $50 million of the Company's common stock under a board-approved share repurchase program. The timing, amount, and price of any repurchases will be made pursuant to one or more 10b5-1 plans. The term of the board authorization of the repurchase program is until December 31, 2017. The plan will permit shares to be repurchased when the Company might otherwise be precluded from doing so under insider trading laws. The repurchase program may be suspended or discontinued at any time. Any repurchased shares will be available for use in connection with the Company's stock plans and for other corporate purposes. As of September 30, 2016, the Company has neither implemented a repurchase plan nor repurchased any shares under this program. |
Income taxes
Income taxes | 9 Months Ended |
Sep. 30, 2016 | |
Income taxes [Abstract] | |
Income taxes | 9. Income taxes The estimated effective annual tax rate for continued operations, which excludes discrete adjustments, was 37% and 29%, respectively, for the nine months ended September 30, 2016 and 2015. The increase in the estimated effective annual tax rate on continuing operations was primarily related to tax on the sale, within the Emergent consolidated group, of assets from Canadian subsidiaries to U.S. subsidiaries in preparation of the spin-off of Aptevo and a valuation allowance charge related to Aptevo net deferred tax assets prior to the Distribution, partially offset by a release of valuation allowances associated with Canadian Scientific Research and Experimental Development tax credits. |
Earnings per share
Earnings per share | 9 Months Ended |
Sep. 30, 2016 | |
Earnings per share [Abstract] | |
Earnings per share | 10. Earnings per share The following table presents the calculation of basic and diluted net income (loss) per share: Three Months Ended September 30, Nine Months Ended September 30, (in thousands, except share and per share data) 2016 2015 2016 2015 Numerator: Net income from continuing operations $ 20,388 $ 42,088 $ 30,238 $ 48,925 Interest expense, net of tax 934 786 2,234 2,378 Amortization of debt issuance costs, net of tax 183 215 569 671 Net income, adjusted from continuing operations 21,505 43,089 33,041 51,974 Income (loss) from discontinued operations 952 (5,145 ) (15,854 ) (19,402 ) Net income, adjusted $ 22,457 $ 37,944 $ 17,187 $ 32,572 Denominator: Weighted-average number of shares—basic 40,465,423 38,831,341 40,071,730 38,423,715 Dilutive securities—equity awards 878,390 1,232,684 658,367 813,939 Dilutive securities—convertible debt 8,096,500 7,720,525 8,096,500 7,720,525 Weighted-average number of shares—diluted 49,440,313 47,784,550 48,826,597 46,958,179 Net income per share-basic from continuing operations $ 0.50 $ 1.08 $ 0.75 $ 1.28 Income (loss) per share-basic from discontinued operations 0.02 (0.14 ) (0.40 ) (0.51 ) Net income per share-basic $ 0.52 $ 0.94 $ 0.35 $ 0.77 Net income per share-diluted from continuing operations $ 0.43 $ 0.90 $ 0.68 $ 1.11 Income (loss) per share-diluted from discontinued operations 0.02 (0.11 ) (0.32 ) (0.42 ) Net income per share-diluted $ 0.45 $ 0.79 $ 0.36 $ 0.69 For the three and nine months ended September 30, 2016 and 2015, basic earnings per share is computed by dividing net income by the weighted average number of shares of common stock outstanding during the period. For the three and nine months ended September 30, 2016 and 2015, diluted earnings per share is computed using the "if-converted" method by dividing the net income adjusted for interest expense and amortization of debt issuance cost, both net of tax, associated with the Company's Notes by the weighted average number of shares of common stock outstanding during the period. The weighted average number of shares is adjusted for the potential dilutive effect of the exercise of stock options and the vesting of restricted stock units along with the assumption of the conversion of the Notes, at the beginning of the period. For the three months ended September 30, 2016, approximately 0.4 million stock options were excluded from the calculation of diluted earnings per share. For the three and nine months ended September 30, 2015, along with the nine months ended September 30, 2016, substantially all of the outstanding stock options to purchase shares of common stock were included in the calculation of diluted earnings per share. |
Restructuring
Restructuring | 9 Months Ended |
Sep. 30, 2016 | |
Abandonment of equipment | |
Restructuring | 11. Restructuring In August 2016, the Company adopted a plan to restructure and reprioritize the operations of one of our facilities at the Emergent BioDefense Operations Lansing LLC ("EBOL") site due to the Company's large-scale manufacturing facility at EBOL commencing manufacturing operations. Severance and other related costs and asset-related charges are reflected within the Company's consolidated statement of income as a component of selling, general and administrative expense. The Company has completed this restructuring. The costs of the restructuring as of September 30, 2016 are detailed below: Incurred in Inception to Date Total Expected (in thousands) 2016 Costs Incurred to be Incurred Termination benefits $ 2,488 $ 2,488 $ 5,264 Abandonment of equipment 3,749 3,749 3,749 Other costs 691 691 691 Total $ 6,928 $ 6,928 $ 9,704 During the nine months ended September 30, 2016, the Company abandoned certain equipment and associated assets The following is a summary of the activity for the liabilities related to the EBOL restructuring: Termination (in thousands) Benefits Balance at December 31, 2015 $ - Expenses incurred 2,488 Amount paid - Other adjustments - Balance at September 30, 2016 $ 2,488 In addition to the above restructuring costs, the Company also recorded a charge of $1.7 million during the nine months ended September 30, 2016 related to retention payments for certain employees at the EBOL site. |
Related party transactions
Related party transactions | 9 Months Ended |
Sep. 30, 2016 | |
Related party transactions [Abstract] | |
Related party transactions | 12. Related party transactions In November 2015, the Company entered into a consulting arrangement with a member of the Company's Board of Directors, amended in July 2016, to provide assistance in connection with the planned spin-off of Aptevo. The total compensation under the agreement was approximately $0.2 million. The consulting agreement terminated on August 1, 2016. |
Segment information
Segment information | 9 Months Ended |
Sep. 30, 2016 | |
Segment information [Abstract] | |
Segment information | 13. Segment information On August 6, 2015, the Company announced its plan to separate into two independent publicly-traded companies. In anticipation of the spin-off, the Company realigned certain components of its biosciences business to the new Aptevo segment to be consistent with how the CODM allocates resources and makes decisions about the operations of the Company. Effective January 1, 2016, the Company changed its segment presentation to reflect this new structure, and recast all prior periods presented to conform to the new presentation. On August 1, 2016, the Company completed the spin-off of Aptevo. The results of operations and financial position of Aptevo are reflected as discontinued operations for all periods presented through the date of the spin-off. For financial reporting purposes, in the periods following the spin-off of Aptevo, the Company reports financial information for one business segment. For the three and nine months ended September 30, 2016 and 2015, substantially all of the Company's revenues are from the United States government. |
Litigation
Litigation | 9 Months Ended |
Sep. 30, 2016 | |
Litigation [Abstract] | |
Litigation | 14. Litigation On July 19, 2016, Plaintiff William Sponn, or Sponn, filed a putative class action complaint in the United States District Court for the District of Maryland on behalf of purchasers of the Company's common stock between January 11, 2016 and June 21, 2016, inclusive, or the Class Period, seeking to pursue remedies under the Securities Exchange Act of 1934 against the Company and certain of its senior officers and directors, collectively, the Defendants. The complaint alleges, among other things, that the Company made materially false and misleading statements about the government's demand for BioThrax and expectations that the Company's five-year exclusive procurement contract with HHS would be renewed and omitted certain material facts. Sponn is seeking unspecified damages, including legal costs. On October 25, 2016 the Court added City of Cape Coral Municipal Firefighters' Retirement Plan and City of Sunrise Police Officers' Retirement Plan as plaintiffs and appointed them Lead Plaintiffs and Robins Geller Rudman & Dowd LLP as Lead Counsel. The Defendants believe that the allegations in the complaint are without merit and intend to defend themselves vigorously against those claims. As of the date of this filing, the range of potential loss cannot be determined or estimated. |
Summary of significant accoun21
Summary of significant accounting policies (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Summary of significant accounting policies [Abstract] | |
Basis of presentation and consolidation | Basis of presentation and consolidation On August 6, 2015, Emergent BioSolutions Inc. (the "Company" or "Emergent"), announced its plan to separate into two independent publicly-traded companies. On August 1, 2016, the Company accomplished this plan through the completion of the spin-off of Aptevo Therapeutics Inc. ("Aptevo"), a biotechnology company focused on novel oncology and hematology therapeutics to meaningfully improve patients' lives. Emergent remains as a global specialty life sciences company focused on providing specialty products for civilian and military populations that address intentional and naturally emerging public health threats. In anticipation of the spin-off, the Company realigned certain components of its biosciences business to the new Aptevo segment to be consistent with how the Company's chief operating decision maker ("CODM") allocates resources and makes decisions about the operations of the Company. Effective January 1, 2016, the Company changed its segment presentation to reflect this new structure, and recast all prior periods presented to conform to the new presentation. On August 1, 2016, the Company completed the spin-off of Aptevo. Aptevo is now an independent public company trading under the symbol "APVO" on the NASDAQ Global Select Market ("NASDAQ"). The results of operations and financial position of Aptevo are reflected as discontinued operations for all periods presented through the date of the spin-off. The historical financial statements and footnotes have been revised accordingly. See Note 2. "Discontinued operations" for further details regarding the spin-off. For periods following the spin-off, the Company reports financial results under one business segment. The accompanying unaudited consolidated financial statements include the accounts of Emergent and its subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. The unaudited consolidated financial statements included herein have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X issued by the Securities and Exchange Commission ("SEC"). Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with U.S. generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2015, as filed with the SEC. During the nine months ended September 30, 2016 there have been no significant changes to the Company's summary of significant accounting policies contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2015, as filed with the SEC. In the opinion of the Company's management, any adjustments contained in the accompanying unaudited consolidated financial statements are of a normal recurring nature, except for the adjustments associated with the spin-off of Aptevo, and are necessary to present fairly the financial position of the Company as of September 30, 2016, specifically: the results of operations and comprehensive income for the three and nine months ended September 30, 2016 and 2015; and cash flows for the nine months ended September 30, 2016 and 2015. Interim results are not necessarily indicative of results that may be expected for any other interim period or for an entire year. We analyze our multiple element revenue-generating arrangements to determine whether the elements can be separated and accounted for individually as separate units of accounting. An item can generally be considered a separate unit of accounting if both of the following criteria are met: (1) the delivered item(s) has value to the customer on a stand-alone basis and (2) if the arrangement includes a general right of return and delivery or performance of the undelivered item(s) is considered probable and substantially in our control. Items that cannot be divided into separate units are combined with other units of accounting, as appropriate. Consideration received is allocated among the separate units based on the unit's relative selling price and is recognized in full when the appropriate revenue recognition criteria are met. We deem services to be rendered if no continuing obligation exists on our part. As of September 30, 2016, the Company has determined that its US Government contracts for Anthrasil™ (Anthrax Immune Globulin Intravenous (Human), BAT™ (Botulism Antitoxin Heptavalent (A,B,C,D,E,F,G)-Equine and VIGIV (Vaccinia Immune Globulin Intravenous (Human)) are multiple element arrangements. Recent accounting standards In April 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity In May 2014, the FASB issued ASU No. 2014-09, Summary and Amendments That Create Revenue from Contracts with Customers (Topic 606) and Other Assets and Deferred Costs—Contracts with Customers (Subtopic 340-40) In April 2015, the FASB issued ASU No. 2015-03, Interest - Imputation of Interest (Subtopic 835-30) In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation (Topic 718) |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Discontinued Operations [Abstract] | |
Summary of assets and liabilities presented as discontinued operations | The following table represents the carrying value of Aptevo's assets and liabilities distributed as part of the Separation on August 1, 2016: (in thousands) August 1, 2016 Assets: Cash and cash equivalents $ 45,000 Accounts receivable, net 4,465 Inventories 11,959 Other current assets 4,870 Current assets of discontinued operations 66,294 Property, plant and equipment, net 6,128 In-process research and development 41,800 Intangible assets, net 15,402 Goodwill 13,902 Non-current assets of discontinued operations 77,232 Total assets of discontinued operations $ 143,526 Liabilities: Accounts payable $ 6,285 Accrued expenses and other current liabilities 64 Accrued compensation 2,456 Contingent consideration 191 Provisions for chargebacks 2,341 Deferred revenue, current portion 433 Current liabilities of discontinued operations 11,770 Deferred revenue, net of current portion 3,232 Other liabilities 91 Non-current liabilities of discontinued operations 3,323 Total liabilities of discontinued operations $ 15,093 The following table represents Aptevo's assets and liabilities presented as discontinued operations and classified as held-for-disposition as of December 31, 2015: (in thousands) December 31, 2015 Assets: Cash and cash equivalents $ 4,492 Accounts receivable, net 6,861 Inventories 16,049 Prepaid expenses and other current assets 1,880 Current assets of discontinued operations 29,282 Property, plant and equipment, net 4,046 In-process research and development 41,800 Intangible assets, net 16,617 Goodwill 13,902 Non-current assets of discontinued operations 76,365 Total assets of discontinued operations $ 105,647 Liabilities: Accounts payable $ 8,134 Accrued expenses and other current liabilities 22 Accrued compensation 2,684 Contingent consideration, current portion 306 Provisions for chargebacks 2,238 Deferred revenue, current portion 3,964 Current liabilities of discontinued operations 17,348 Deferred revenue, net of current portion 3,163 Other liabilities 71 Non-current liabilities of discontinued operations 3,234 Total liabilities of discontinued operations $ 20,582 |
Summarized results of discontinued operations included in consolidated statements of income | The following table summarizes results from discontinued operations of Aptevo included in the consolidated statements of operations: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2016 2015 2016 2015 Revenues: Product sales $ 3,019 $ 6,441 $ 21,183 $ 19,704 Collaborations 68 121 187 5,434 Total revenues 3,087 6,562 21,370 25,138 Operating expense: Cost of product sales 907 3,270 11,556 11,442 Research and development 2,509 7,689 18,024 27,678 Selling, general and administrative 7,499 5,756 23,792 16,239 Loss from operations (7,828 ) (10,153 ) (32,002 ) (30,221 ) Other income (expense), net: (116 ) 83 (41 ) (464 ) Loss from discontinued operations before benefit from income taxes (7,944 ) (10,070 ) (32,043 ) (30,685 ) Benefit from income taxes (8,896 ) (4,925 ) (16,189 ) (11,283 ) Net loss from discontinued operations $ 952 $ (5,145 ) $ (15,854 ) $ (19,402 ) |
Summary of disposal groups including discontinued operations cash flow | The following table summarizes the cash flows of Aptevo included in the September 30, 2016 and 2015 consolidated statements of cash flows: Nine Months Ended September 30, (in thousands) 2016 2015 Net cash (used in) provided by operating activities $ (17,813 ) $ 1,414 Net cash used in investing activities (1,925 ) (970 ) Net cash provided by (used in) financing activities 15,247 (679 ) Net increase (decrease) in cash and cash equivalents $ (4,491 ) $ (235 ) |
Fair value measurements (Tables
Fair value measurements (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Fair value measurements [Abstract] | |
Fair Value Hierarchy for Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following table represents the Company's fair value hierarchy for its financial assets and liabilities measured at fair value on a recurring basis: September 30, 2016 (in thousands) Level 1 Level 2 Level 3 Total Assets: Investment in money market funds (1) $ 10 $ - $ - $ 10 Total assets $ 10 $ - $ - $ 10 Liabilities: Contingent consideration $ - $ - $ 22,928 $ 22,928 Total liabilities $ - $ - $ 22,928 $ 22,928 December 31, 2015 (in thousands) Level 1 Level 2 Level 3 Total Assets: Investment in money market funds (1) $ 3,323 $ - $ - $ 3,323 Total assets $ 3,323 $ - $ - $ 3,323 Liabilities: Contingent consideration $ - $ - $ 25,155 $ 25,155 Total liabilities $ - $ - $ 25,155 $ 25,155 (1) Included in cash and cash equivalents in the accompanying consolidated balance sheets. |
Reconciliation of Liabilities Measured at Fair Value Using Significant Unobservable Inputs (Level 3) | The following table is a reconciliation of the beginning and ending balance of the liabilities, consisting only of contingent consideration, measured at fair value using significant unobservable inputs (Level 3) during the nine months ended September 30, 2016. (in thousands) Balance at December 31, 2015 $ 25,155 Income included in earnings 1,263 Settlements (964 ) Purchases, sales and issuances - Transfers in/(out) of Level 3 - Balance at September 30, 2016 $ 22,928 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Inventories [Abstract] | |
Inventories | Inventories consisted of the following: September 30, December 31, (in thousands) 2016 2015 Raw materials and supplies $ 31,239 $ 21,275 Work-in-process 24,459 32,709 Finished goods 25,462 6,903 Total inventories $ 81,160 $ 60,887 |
Property, plant and equipment (
Property, plant and equipment (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Property, plant and equipment [Abstract] | |
Property, plant and equipment | Property, plant and equipment consisted of the following: September 30, December 31, (in thousands) 2016 2015 Land and improvements $ 20,391 $ 16,520 Buildings, building improvements and leasehold improvements 141,322 108,908 Furniture and equipment 191,529 129,933 Software 52,744 39,683 Construction-in-progress 64,885 126,531 Property, plant and equipment, gross 470,871 421,575 Less: Accumulated depreciation and amortization (108,327 ) (93,767 ) Total property, plant and equipment, net $ 362,544 $ 327,808 |
Intangible assets, in-process26
Intangible assets, in-process research and development (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Intangible assets and in-process research and development [Abstract] | |
Intangible Assets | Intangible assets consisted of the following: (in thousands) Cost basis Balance at December 31, 2015 $ 57,099 Additions - Balance at September 30, 2016 $ 57,099 Accumulated amortization Balance at December 31, 2015 $ (16,343 ) Amortization (5,337 ) Balance at September 30, 2016 $ (21,680 ) Net balance at September 30, 2016 $ 35,419 |
Equity awards (Tables)
Equity awards (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Equity awards [Abstract] | |
Option Award Activity | The following is a summary of stock option award activity: 2006 Plan 2004 Plan Number of Shares Weighted-Average Exercise Price Number of Shares Weighted-Average Exercise Price Aggregate Intrinsic Value Outstanding at December 31, 2015 2,964,237 $ 22.73 29,699 $ 10.28 $ 52,119,607 Granted 403,978 33.70 - - Exercised (750,293 ) 19.56 (29,699 ) 10.28 Forfeited (62,441 ) 27.48 - - Canceled (146,986 ) 28.33 - - Equitable adjustment 236,313 22.90 - - Outstanding at September 30, 2016 2,644,808 22.84 - - 22,976,804 Exercisable at September 30, 2016 1,558,840 $ 19.51 - $ - $ 18,732,937 |
Restricted Stock Units Activity | The following is a summary of restricted stock unit award activity: Number of Shares Weighted-Average Grant Price Aggregate Intrinsic Value Outstanding at December 31, 2015 889,004 $ 26.86 $ 35,569,048 Granted 488,738 34.36 Vested (416,289 ) 24.68 Forfeited (46,994 ) 29.84 Canceled (107,514 ) 30.90 Equitable adjustment 79,339 28.86 Outstanding at September 30, 2016 886,284 $ 28.95 $ 24,922,306 |
Earnings per share (Tables)
Earnings per share (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Earnings per share [Abstract] | |
Summary of Basic and Diluted Net Income (Loss) per Share | The following table presents the calculation of basic and diluted net income (loss) per share: Three Months Ended September 30, Nine Months Ended September 30, (in thousands, except share and per share data) 2016 2015 2016 2015 Numerator: Net income from continuing operations $ 20,388 $ 42,088 $ 30,238 $ 48,925 Interest expense, net of tax 934 786 2,234 2,378 Amortization of debt issuance costs, net of tax 183 215 569 671 Net income, adjusted from continuing operations 21,505 43,089 33,041 51,974 Income (loss) from discontinued operations 952 (5,145 ) (15,854 ) (19,402 ) Net income, adjusted $ 22,457 $ 37,944 $ 17,187 $ 32,572 Denominator: Weighted-average number of shares—basic 40,465,423 38,831,341 40,071,730 38,423,715 Dilutive securities—equity awards 878,390 1,232,684 658,367 813,939 Dilutive securities—convertible debt 8,096,500 7,720,525 8,096,500 7,720,525 Weighted-average number of shares—diluted 49,440,313 47,784,550 48,826,597 46,958,179 Net income per share-basic from continuing operations $ 0.50 $ 1.08 $ 0.75 $ 1.28 Income (loss) per share-basic from discontinued operations 0.02 (0.14 ) (0.40 ) (0.51 ) Net income per share-basic $ 0.52 $ 0.94 $ 0.35 $ 0.77 Net income per share-diluted from continuing operations $ 0.43 $ 0.90 $ 0.68 $ 1.11 Income (loss) per share-diluted from discontinued operations 0.02 (0.11 ) (0.32 ) (0.42 ) Net income per share-diluted $ 0.45 $ 0.79 $ 0.36 $ 0.69 |
Restructuring (Tables)
Restructuring (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Abandonment of equipment | |
Costs of the restructuring | The Company has completed this restructuring. The costs of the restructuring as of September 30, 2016 are detailed below: Incurred in Inception to Date Total Expected (in thousands) 2016 Costs Incurred to be Incurred Termination benefits $ 2,488 $ 2,488 $ 5,264 Abandonment of equipment 3,749 3,749 3,749 Other costs 691 691 691 Total $ 6,928 $ 6,928 $ 9,704 |
Summary of the activity for liabilities related to EPDU restructuring | The following is a summary of the activity for the liabilities related to the EBOL restructuring: Termination (in thousands) Benefits Balance at December 31, 2015 $ - Expenses incurred 2,488 Amount paid - Other adjustments - Balance at September 30, 2016 $ 2,488 In addition to the above restructuring costs, the Company also recorded a charge of $1.7 million during the nine months ended September 30, 2016 related to retention payments for certain employees at the EBOL site. |
Summary of significant accoun30
Summary of significant accounting policies (Details) | 9 Months Ended |
Sep. 30, 2016Company | |
Summary of significant accounting policies [Abstract] | |
Number of independent public companies | 2 |
Discontinued Operations (Detail
Discontinued Operations (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Aug. 01, 2016 | Dec. 31, 2015 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Percentage of outstanding shares distributed | 100.00% | |||||
Record date for distribution | Jul. 22, 2016 | |||||
Number of common stock distributed (in shares) | 20,230,000 | |||||
Assets [Abstract] | ||||||
Current assets of discontinued operations | $ 0 | $ 0 | $ 29,282,000 | |||
Non-current assets of discontinued operations | 0 | 0 | 76,365,000 | |||
Liabilities [Abstract] | ||||||
Current liabilities of discontinued operations | 0 | 0 | 17,348,000 | |||
Non-current liabilities of discontinued operations | 0 | 0 | 3,234,000 | |||
Aptevo [Member] | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Unsecured debt | $ 20,000,000 | |||||
TSA revenue from Aptevo | 548,700 | 548,700 | ||||
Revenues [Abstract] | ||||||
Product sales | 3,019,000 | $ 6,441,000 | 21,183,000 | $ 19,704,000 | ||
Contracts, grants and collaborations | 68,000 | 121,000 | 187,000 | 5,434,000 | ||
Total revenues | 3,087,000 | 6,562,000 | 21,370,000 | 25,138,000 | ||
Operating expense [Abstract] | ||||||
Cost of product sales | 907,000 | 3,270,000 | 11,556,000 | 11,442,000 | ||
Research and development | 2,509,000 | 7,689,000 | 18,024,000 | 27,678,000 | ||
Selling, general and administrative | 7,499,000 | 5,756,000 | 23,792,000 | 16,239,000 | ||
Income (loss) from operations | (7,828,000) | (10,153,000) | (32,002,000) | (30,221,000) | ||
Other income (expense), net [Abstract] | ||||||
Other income (expense), net | (116,000) | 83,000 | (41,000) | (464,000) | ||
Income (loss) from discontinued operations before provision for (benefit from) income taxes | (7,944,000) | (10,070,000) | (32,043,000) | (30,685,000) | ||
Provision for (benefit from) income taxes | (8,896,000) | (4,925,000) | (16,189,000) | (11,283,000) | ||
Net Income (loss) from discontinued operations | $ 952,000 | $ (5,145,000) | (15,854,000) | (19,402,000) | ||
Net Cash Provided by (Used in) Discontinued Operations [Abstract] | ||||||
Net cash used in operating activities | (17,813,000) | 1,414,000 | ||||
Net cash provided by investing activities | (1,925,000) | (970,000) | ||||
Net cash provided by financing activities | 15,247,000 | (679,000) | ||||
Net increase in cash and cash equivalents | $ (4,491,000) | $ (235,000) | ||||
Aptevo [Member] | Disposed of by Sale [Member] | ||||||
Assets [Abstract] | ||||||
Cash and cash equivalents | 45,000,000 | |||||
Accounts receivable, net | 4,465,000 | |||||
Inventories | 11,959,000 | |||||
Other current assets | 4,870,000 | |||||
Current assets of discontinued operations | 66,294,000 | |||||
Property, plant and equipment, net | 6,128,000 | |||||
In-process research and development | 41,800,000 | |||||
Intangible assets, net | 15,402,000 | |||||
Goodwill | 13,902,000 | |||||
Non-current assets of discontinued operations | 77,232,000 | |||||
Total assets of discontinued operations | 143,526,000 | |||||
Liabilities [Abstract] | ||||||
Accounts payable | 6,285,000 | |||||
Accrued expenses and other current liabilities | 64,000 | |||||
Accrued compensation | 2,456,000 | |||||
Contingent consideration, current portion | 191,000 | |||||
Provision for chargebacks | 2,341,000 | |||||
Deferred revenue, current portion | 433,000 | |||||
Current liabilities of discontinued operations | 11,770,000 | |||||
Deferred revenue, net of current portion | 3,232,000 | |||||
Other liabilities | 91,000 | |||||
Non-current liabilities of discontinued operations | 3,323,000 | |||||
Total liabilities of discontinued operations | $ 15,093,000 | |||||
Aptevo [Member] | Held-for-sale [Member] | ||||||
Assets [Abstract] | ||||||
Cash and cash equivalents | 4,492,000 | |||||
Accounts receivable, net | 6,861,000 | |||||
Inventories | 16,049,000 | |||||
Deferred tax assets, current portion, net | 0 | |||||
Income tax receivable net | 0 | |||||
Prepaid expenses and other current assets | 1,880,000 | |||||
Current assets of discontinued operations | 29,282,000 | |||||
Property, plant and equipment, net | 4,046,000 | |||||
In-process research and development | 41,800,000 | |||||
Intangible assets, net | 16,617,000 | |||||
Goodwill | 13,902,000 | |||||
Non-current assets of discontinued operations | 76,365,000 | |||||
Total assets of discontinued operations | 105,647,000 | |||||
Liabilities [Abstract] | ||||||
Accounts payable | 8,134,000 | |||||
Accrued expenses and other current liabilities | 22,000 | |||||
Accrued compensation | 2,684,000 | |||||
Contingent consideration, current portion | 306,000 | |||||
Provision for chargebacks | 2,238,000 | |||||
Deferred revenue, current portion | 3,964,000 | |||||
Current liabilities of discontinued operations | 17,348,000 | |||||
Deferred revenue, net of current portion | 3,163,000 | |||||
Other liabilities | 71,000 | |||||
Non-current liabilities of discontinued operations | 3,234,000 | |||||
Total liabilities of discontinued operations | $ 20,582,000 |
Fair value measurements (Detail
Fair value measurements (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | Dec. 17, 2014 | ||
Unobservable Input Reconciliation [Roll Forward] | |||||||
Balance, beginning of period | $ 25,155 | ||||||
Expense included in earnings | 1,263 | ||||||
Settlements | (964) | ||||||
Purchases, sales and issuances | 0 | ||||||
Transfers in/(out) of Level 3 | 0 | ||||||
Balance, end of period | $ 22,928 | 22,928 | |||||
Evolva Holding SA 035 & Broad Spectrum Antiviral Platform [Member] | |||||||
Unobservable Input Reconciliation [Roll Forward] | |||||||
Change in fair value of contingent obligations | 100 | $ (9,900) | (300) | $ (9,500) | |||
Contingent value rights based on the novation of the contract | $ 4,000 | ||||||
RSDL [Member] | |||||||
Unobservable Input Reconciliation [Roll Forward] | |||||||
Change in fair value of contingent obligations | (2,300) | $ (1,900) | (1,000) | $ (1,800) | |||
Fair Value, Measurements, Recurring [Member] | |||||||
Assets [Abstract] | |||||||
Investment in money market funds (1) | [1] | 10 | 10 | $ 3,323 | |||
Total assets | 10 | 10 | 3,323 | ||||
Liabilities [Abstract] | |||||||
Contingent consideration | 22,928 | 22,928 | 25,155 | ||||
Total liabilities | 22,928 | 22,928 | 25,155 | ||||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | |||||||
Assets [Abstract] | |||||||
Investment in money market funds (1) | [1] | 10 | 10 | 3,323 | |||
Total assets | 10 | 10 | 3,323 | ||||
Liabilities [Abstract] | |||||||
Contingent consideration | 0 | 0 | 0 | ||||
Total liabilities | 0 | 0 | 0 | ||||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | |||||||
Assets [Abstract] | |||||||
Investment in money market funds (1) | [1] | 0 | 0 | 0 | |||
Total assets | 0 | 0 | 0 | ||||
Liabilities [Abstract] | |||||||
Contingent consideration | 0 | 0 | 0 | ||||
Total liabilities | 0 | 0 | 0 | ||||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||||||
Assets [Abstract] | |||||||
Investment in money market funds (1) | [1] | 0 | 0 | 0 | |||
Total assets | 0 | 0 | 0 | ||||
Liabilities [Abstract] | |||||||
Contingent consideration | 22,928 | 22,928 | 25,155 | ||||
Total liabilities | $ 22,928 | $ 22,928 | $ 25,155 | ||||
[1] | Included in cash and cash equivalents in accompanying consolidated balance sheets |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Inventories [Abstract] | ||
Raw materials and supplies | $ 31,239 | $ 21,275 |
Work-in-process | 24,459 | 32,709 |
Finished goods | 25,462 | 6,903 |
Total inventories | $ 81,160 | $ 60,887 |
Property, plant and equipment34
Property, plant and equipment (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | $ 470,871 | $ 421,575 | |
Less: Accumulated depreciation and amortization | (108,327) | (93,767) | |
Total Property, plant and equipment, net | 362,544 | 327,808 | |
Depreciation and amortization | 28,155 | $ 25,859 | |
Land and Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | 20,391 | 16,520 | |
Buildings, Building Improvements and Leasehold Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | 141,322 | 108,908 | |
Furniture and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | 191,529 | 129,933 | |
Software [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | 52,744 | 39,683 | |
Construction-in-progress [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | $ 64,885 | $ 126,531 |
Intangible assets, in-process35
Intangible assets, in-process research and development (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Accumulated Amortization [Abstract] | ||||
Amortization | $ 1,651,000 | $ 1,844,000 | $ 5,337,000 | $ 5,532,000 |
Intangible assets, weighted average useful life | 78 months | |||
Biodefense [Member] | ||||
Cost Basis [Abstract] | ||||
Intangible Assets, Beginning Balance | $ 57,099,000 | |||
Additions | 0 | |||
Intangible Assets, Ending Balance | 57,099,000 | 57,099,000 | ||
Accumulated Amortization [Abstract] | ||||
Accumulated Amortization, Beginning Balance | (16,343,000) | |||
Accumulated Amortization, Ending Balance | (21,680,000) | (21,680,000) | ||
Net book value of intangible assets | $ 35,419,000 | $ 35,419,000 |
Long-term debt (Details)
Long-term debt (Details) $ / shares in Units, $ in Millions | Aug. 12, 2016shares$ / shares | Jan. 29, 2014USD ($)shares$ / shares | Dec. 31, 2015USD ($) |
Amount of debt issuance costs in prepaid expenses and other current assets, netted against long term debt [Member] | |||
Long-Term Debt [Line Items] | |||
Debt issuance costs | $ 1.2 | ||
Amount of debt issuance costs in other assets, netted against long term debt [Member] | |||
Long-Term Debt [Line Items] | |||
Debt issuance costs | $ 4.9 | ||
Convertible Senior Notes Due 2021 [Member] | |||
Long-Term Debt [Line Items] | |||
Face amount of debt instrument | $ 250 | ||
Interest rate, stated percentage | 2.875% | ||
Maturity date | Jan. 15, 2021 | ||
Conversion rate of notes per $1,000 principal amount (in shares) | shares | 32.3860 | 30.8821 | |
Conversion price per share (in dollars per share) | $ / shares | $ 30.88 | $ 32.38 |
Equity awards (Details)
Equity awards (Details) | 9 Months Ended | |
Sep. 30, 2016USD ($)Plan$ / sharesshares | Jul. 14, 2016USD ($) | |
Equity awards [Abstract] | ||
Number of stock-based employee compensation plans | Plan | 2 | |
Aggregate intrinsic value [Abstract] | ||
Stock Repurchase Program, Authorized Amount | $ | $ 50,000,000 | |
Stock Options Member [Member] | ||
Aggregate Intrinsic Value [Abstract] | ||
Outstanding, beginning of period | $ | $ 52,119,607 | |
Outstanding, end of period | $ | 22,976,804 | |
Exercisable, end of period | $ | $ 18,732,937 | |
2006 Plan [Member] | Restricted Stock Units (RSUs) [Member] | ||
Restricted stock unit award activity [Roll Forward] | ||
Outstanding, beginning of period (in shares) | 889,004 | |
Granted (in shares) | 488,738 | |
Vested (in shares) | (416,289) | |
Forfeited (in shares) | (46,994) | |
Cancelled (in shares) | (107,514) | |
Equitable adjustment (in shares) | 79,339 | |
Outstanding, end of period (in shares) | 886,284 | |
Weighted-Average Grant Price [Roll Forward] | ||
Outstanding, beginning of period (in dollars per share) | $ / shares | $ 26.86 | |
Granted (in dollars per share) | $ / shares | 34.36 | |
Vested (in dollars per share) | $ / shares | 24.68 | |
Forfeited (in dollars per share) | $ / shares | 29.84 | |
Cancelled (in dollars per share) | $ / shares | 30.90 | |
Equitable adjustment (in dollars per share) | $ / shares | 28.86 | |
Outstanding, end of period (in dollars per share) | $ / shares | $ 28.95 | |
Aggregate intrinsic value [Abstract] | ||
Outstanding, beginning of period | $ | $ 35,569,048 | |
Outstanding, end of period | $ | $ 24,922,306 | |
2006 Plan [Member] | Stock Options Member [Member] | ||
Options outstanding [Roll Forward] | ||
Outstanding, beginning of period (in shares) | 2,964,237 | |
Granted (in shares) | 403,978 | |
Exercised (in shares) | (750,293) | |
Forfeited (in shares) | (62,441) | |
Cancelled (in shares) | (146,986) | |
Equitable adjustment (in shares) | 236,313 | |
Outstanding, end of period (in shares) | 2,644,808 | |
Exercisable, end of period (in shares) | 1,558,840 | |
Weighted-Average Exercise Price [Roll Forward] | ||
Outstanding, beginning of period (in dollars per share) | $ / shares | $ 22.73 | |
Granted (in dollars per share) | $ / shares | 33.70 | |
Exercised (in dollars per share) | $ / shares | 19.56 | |
Forfeited (in dollars per share) | $ / shares | 27.48 | |
Cancelled (in dollars per share) | $ / shares | 28.33 | |
Equitable adjustment (in dollars per share) | $ / shares | 22.90 | |
Outstanding, end of period (in dollars per share) | $ / shares | 22.84 | |
Exercisable, end of period (in dollars per share) | $ / shares | $ 19.51 | |
Aggregate intrinsic value [Abstract] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized | 3,800,000 | |
2004 Plan [Member] | Stock Options Member [Member] | ||
Options outstanding [Roll Forward] | ||
Outstanding, beginning of period (in shares) | 29,699 | |
Granted (in shares) | 0 | |
Exercised (in shares) | (29,699) | |
Forfeited (in shares) | 0 | |
Cancelled (in shares) | 0 | |
Equitable adjustment (in shares) | 0 | |
Outstanding, end of period (in shares) | 0 | |
Exercisable, end of period (in shares) | 0 | |
Weighted-Average Exercise Price [Roll Forward] | ||
Outstanding, beginning of period (in dollars per share) | $ / shares | $ 10.28 | |
Granted (in dollars per share) | $ / shares | 0 | |
Exercised (in dollars per share) | $ / shares | 10.28 | |
Forfeited (in dollars per share) | $ / shares | 0 | |
Cancelled (in dollars per share) | $ / shares | 0 | |
Equitable adjustment (in dollars per share) | $ / shares | 0 | |
Outstanding, end of period (in dollars per share) | $ / shares | 0 | |
Exercisable, end of period (in dollars per share) | $ / shares | $ 0 |
Income taxes (Details)
Income taxes (Details) | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Income taxes [Abstract] | ||
Effective annual tax rate | 37.00% | 29.00% |
Earnings per share (Details)
Earnings per share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |||
Numerator [Abstract] | ||||||
Net Income from continuing operations | $ 20,388 | $ 42,088 | $ 30,238 | $ 48,925 | ||
Interest expense, net of tax | 934 | 786 | 2,234 | 2,378 | ||
Amortization of debt issuance costs, net of tax | 183 | 215 | 569 | 671 | ||
Net income, adjusted from continuing operations | 21,505 | 43,089 | 33,041 | 51,974 | ||
Income (loss) from discontinued operations | 952 | (5,145) | (15,854) | (19,402) | ||
Net income (loss), adjusted | $ 22,457 | $ 37,944 | $ 17,187 | $ 32,572 | ||
Denominator [Abstract] | ||||||
Weighted-average number of shares-basic (in shares) | 40,465,423 | 38,831,341 | 40,071,730 | 38,423,715 | ||
Dilutive securities-equity awards (in shares) | 878,390 | 1,232,684 | 658,367 | 813,939 | ||
Dilutive securities-convertible debt | 8,096,500 | 7,720,525 | 8,096,500 | 7,720,525 | ||
Weighted-average number of shares-diluted (in shares) | 49,440,313 | 47,784,550 | 48,826,597 | 46,958,179 | ||
Net income per share - basic from continuing operations (in dollars per share) | $ 0.50 | $ 1.08 | $ 0.75 | $ 1.28 | ||
Income (loss) per share - basic from discontinued operations (in dollars per share) | 0.02 | (0.14) | (0.40) | (0.51) | ||
Net income per share - basic (in dollars per share) | 0.52 | 0.94 | 0.35 | 0.77 | ||
Net income per share - diluted from continuing operations (in dollars per share) | 0.43 | [1] | 0.90 | [1] | 0.68 | 1.11 |
Income (loss) per share - diluted from discontinued operations (in dollars per share) | 0.02 | (0.11) | (0.32) | (0.42) | ||
Net income per share - diluted (in dollars per share) | $ 0.45 | [1] | $ 0.79 | [1] | $ 0.36 | $ 0.69 |
Stock Options [Member] | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Antidilutive shares excluded from calculation (in shares) | 400,000 | 0 | 0 | |||
Convertible debt [Member] | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Antidilutive shares excluded from calculation (in shares) | 0 | 0 | 0 | |||
[1] | See Note 8 "Earnings per share" for details on calculation. |
Restructuring (Details)
Restructuring (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Summary of activity for liabilities [Roll Forward] | ||
Impairment of idled equipment | $ 3,749 | $ 0 |
Selling, General and Administrative Expenses [Member] | ||
Summary of activity for liabilities [Roll Forward] | ||
Impairment of idled equipment | 3,700 | |
EBOL Restructuring Plan [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Incurred in 2016 | 6,928 | |
Inception to Date Costs Incurred | 6,928 | |
Total Expected to be Incurred | 9,704 | |
Termination benefits [Member] | EBOL Restructuring Plan [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Incurred in 2016 | 2,488 | |
Inception to Date Costs Incurred | 2,488 | |
Total Expected to be Incurred | 5,264 | |
Summary of activity for liabilities [Roll Forward] | ||
Balance, beginning of period | 0 | |
Expenses incurred | 2,488 | |
Amount paid | 0 | |
Other adjustments | 0 | |
Balance, end of period | 2,488 | |
Other costs [Member] | EBOL Restructuring Plan [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Incurred in 2016 | 691 | |
Inception to Date Costs Incurred | 691 | |
Total Expected to be Incurred | 691 | |
Abandonment of Equipment [Member] | EBOL Restructuring Plan [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Incurred in 2016 | 3,749 | |
Inception to Date Costs Incurred | 3,749 | |
Total Expected to be Incurred | $ 3,749 |
Related party transactions (Det
Related party transactions (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Related Party Transaction [Line Items] | |
Costs incurred from services rendered under marketing/consulting agreement | $ 0.2 |
Segment information (Details)
Segment information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($)CompanySegmentBusinessUnit | Sep. 30, 2015USD ($) | Jun. 30, 2016USD ($) | Dec. 31, 2015USD ($) | Jun. 30, 2015USD ($) | |
Segment Reporting Information [Line Items] | |||||||
Number of independent public companies | Company | 2 | ||||||
Number of business segments | Segment | 1 | ||||||
Net income | $ 21,340 | $ 36,943 | $ 14,384 | $ 29,523 | |||
Total assets | 932,026 | 932,026 | $ 1,037,484 | ||||
Biodefense [Member] | Intersegment Eliminations [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
External revenue | 0 | 0 | 0 | 0 | |||
Biodefense [Member] | Operating Segments [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
External revenue | 0 | 0 | 0 | 0 | |||
Net income | $ 0 | $ 0 | $ 0 | $ 0 | |||
Total assets | $ 0 | $ 0 | |||||
Aptevo [Member] | Operating Segments [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Number of business units | BusinessUnit | 1 |