Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Feb. 28, 2014 | Jun. 30, 2013 | |
Document Information [Line Items] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Trading Symbol | 'SGNT | ' | ' |
Entity Registrant Name | 'SAGENT PHARMACEUTICALS, INC. | ' | ' |
Entity Central Index Key | '0001369786 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Filer Category | 'Accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 31,840,035 | ' |
Entity Public Float | ' | ' | $365,000,000 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $42,332 | $27,687 |
Short-term investments | 113,810 | 36,605 |
Accounts receivable, net of chargebacks and other deductions | 23,033 | 31,609 |
Inventories, net | 46,481 | 47,106 |
Due from related party | 3,644 | 1,440 |
Prepaid expenses and other current assets | 6,491 | 2,821 |
Total current assets | 235,791 | 147,268 |
Property, plant, and equipment, net | 57,684 | 780 |
Investment in joint ventures | 2,063 | 19,622 |
Goodwill | 6,038 | ' |
Intangible assets, net | 8,326 | 4,277 |
Other assets | 306 | 368 |
Total assets | 310,208 | 172,315 |
Current liabilities: | ' | ' |
Accounts payable | 24,937 | 21,813 |
Due to related party | 3,129 | 7,026 |
Accrued profit sharing | 8,740 | 4,246 |
Accrued liabilities | 13,004 | 7,369 |
Current portion of deferred purchase consideration | 3,381 | ' |
Current portion of long-term debt | 10,333 | ' |
Notes payable | ' | ' |
Total current liabilities | 63,524 | 40,454 |
Long term liabilities: | ' | ' |
Long-term portion of deferred purchase consideration | 8,329 | ' |
Long-term debt | ' | ' |
Other long-term liabilities | 2,329 | 6 |
Total liabilities | 74,182 | 40,460 |
Stockholders' equity: | ' | ' |
Common stock - $0.01 par value, 100,000,000 authorized, and 31,789,348 and 28,116,489 outstanding at December 31, 2013 and December 31, 2012, respectively | 318 | 281 |
Additional paid-in capital | 349,278 | 272,725 |
Accumulated other comprehensive income | 487 | 2,500 |
Accumulated deficit | -114,057 | -143,651 |
Total stockholders' equity | 236,026 | 131,855 |
Total liabilities and stockholders' equity | $310,208 | $172,315 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Common stock, par value | $0.01 | $0.01 |
Common stock, authorized shares | 100,000,000 | 100,000,000 |
Common stock, outstanding shares | 31,789,348 | 28,116,489 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Net revenue | $244,750 | $183,615 | $152,405 |
Cost of sales | 167,228 | 152,508 | 133,636 |
Gross profit | 77,522 | 31,107 | 18,769 |
Operating expenses: | ' | ' | ' |
Product development | 20,275 | 17,136 | 12,763 |
Selling, general and administrative | 36,198 | 30,093 | 25,148 |
Management reorganization | ' | 708 | ' |
Equity in net (income) loss of joint ventures | -2,395 | -1,337 | 2,531 |
Total operating expenses | 54,078 | 46,600 | 40,442 |
Termination fee | 5,000 | ' | ' |
Gain on previously held equity interest | 2,936 | ' | ' |
Income (loss) from operations | 31,380 | -15,493 | -21,673 |
Interest income and other | 39 | 243 | 284 |
Interest expense | -930 | -1,567 | -4,195 |
Change in fair value of preferred stock warrants | ' | ' | -838 |
Income (loss) before income taxes | 30,489 | -16,817 | -26,422 |
Provision for income taxes | 895 | ' | ' |
Net income (loss) | $29,594 | ($16,817) | ($26,422) |
Net income (loss) per common share: | ' | ' | ' |
Basic | $1.01 | ($0.60) | ($1.31) |
Diluted | $0.99 | ($0.60) | ($1.31) |
Weighted-average of shares used to compute net income (loss) per common share: | ' | ' | ' |
Basic | 29,213 | 27,980 | 20,105 |
Diluted | 29,937 | 27,980 | 20,105 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Net income (loss) | $29,594 | ($16,817) | ($26,422) |
Other comprehensive income (loss), net of tax | ' | ' | ' |
Foreign currency translation adjustments | 790 | 237 | 966 |
Reclassification of cumulative currency translation gain | -2,782 | ' | ' |
Unrealized gains (losses) gains on available for sale securities | -21 | 101 | -89 |
Total other comprehensive income (loss), net of tax | -2,013 | 338 | 877 |
Comprehensive income (loss) | $27,581 | ($16,479) | ($25,545) |
Statements_of_Preferred_Stock_
Statements of Preferred Stock and Stockholders' Equity (Deficit) (USD $) | Total | Series A Preferred Stock | Series B Preferred Stock | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit |
In Thousands, except Share data | |||||||
Beginning Balance at Dec. 31, 2010 | ($96,809) | $113,000 | $44,774 | ' | $2,318 | $1,285 | ($100,412) |
Beginning Balance (in shares) at Dec. 31, 2010 | ' | 113,000,000 | 32,714,284 | 2,054,467 | ' | ' | ' |
Issuance of common stock (in shares) | ' | ' | ' | 6,612,500 | ' | ' | ' |
Issuance of common stock | 97,871 | ' | ' | 66 | 97,805 | ' | ' |
Exchange of preferred for common (shares) | ' | -113,000,000 | -32,714,284 | 18,591,212 | ' | ' | ' |
Exchange of preferred for common | 157,774 | -113,000 | -44,774 | 186 | 157,588 | ' | ' |
Reincorporation of Sagent Holding Common stock | ' | ' | ' | 20 | -20 | ' | ' |
Exercise of warrants (shares) | ' | ' | ' | 454,500 | ' | ' | ' |
Exercise of warrants | 5,001 | ' | ' | 5 | 4,996 | ' | ' |
Exercise of stock options (in shares) | ' | ' | ' | 188,495 | ' | ' | ' |
Exercise of stock options | 856 | ' | ' | 2 | 854 | ' | ' |
Repurchase liability related to restricted stock | -120 | ' | ' | ' | -120 | ' | ' |
Stock compensation expense | 2,641 | ' | ' | ' | 2,641 | ' | ' |
Comprehensive income (loss) | -25,545 | ' | ' | ' | ' | 877 | -26,422 |
Ending Balance at Dec. 31, 2011 | 141,669 | ' | ' | 279 | 266,062 | 2,162 | -126,834 |
Ending Balance (in shares) at Dec. 31, 2011 | ' | ' | ' | 27,901,174 | ' | ' | ' |
Exercise of stock options (in shares) | ' | ' | ' | 215,315 | ' | ' | ' |
Exercise of stock options | 995 | ' | ' | 2 | 993 | ' | ' |
Repurchase liability related to restricted stock | 76 | ' | ' | ' | 76 | ' | ' |
Stock compensation expense | 5,594 | ' | ' | ' | 5,594 | ' | ' |
Comprehensive income (loss) | -16,479 | ' | ' | ' | ' | 338 | -16,817 |
Ending Balance at Dec. 31, 2012 | 131,855 | ' | ' | 281 | 272,725 | 2,500 | -143,651 |
Ending Balance (in shares) at Dec. 31, 2012 | ' | ' | ' | 28,116,489 | ' | ' | ' |
Issuance of common stock (in shares) | ' | ' | ' | 3,542,470 | ' | ' | ' |
Issuance of common stock | 70,580 | ' | ' | 36 | 70,544 | ' | ' |
Exercise of stock options (in shares) | ' | ' | ' | 130,389 | ' | ' | ' |
Exercise of stock options | 717 | ' | ' | 1 | 716 | ' | ' |
Stock compensation expense | 5,293 | ' | ' | ' | 5,293 | ' | ' |
Comprehensive income (loss) | 27,581 | ' | ' | ' | ' | -2,013 | 29,594 |
Ending Balance at Dec. 31, 2013 | $236,026 | ' | ' | $318 | $349,278 | $487 | ($114,057) |
Ending Balance (in shares) at Dec. 31, 2013 | ' | ' | ' | 31,789,348 | ' | ' | ' |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash flows from operating activities | ' | ' | ' |
Net income (loss) | $29,594 | ($16,817) | ($26,422) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ' | ' | ' |
Depreciation and amortization | 7,074 | 5,996 | 3,624 |
Stock-based compensation | 5,293 | 5,552 | 2,545 |
Equity in net (income) loss of joint ventures | -2,395 | -1,337 | 2,531 |
Dividends from unconsolidated joint ventures | 4,318 | 5,155 | ' |
Gain on previously held equity interest | -2,936 | ' | ' |
Change in fair value of preferred stock warrants | ' | ' | 838 |
Other | -115 | ' | ' |
Changes in operating assets and liabilities, net of effect of acquisition: | ' | ' | ' |
Accounts receivable, net | 8,578 | -2,581 | -10,089 |
Inventories, net | 3,053 | -5,619 | -10,920 |
Prepaid expenses and other current assets | -3,466 | -856 | 3,470 |
Due from related party | -6,924 | 939 | -1,511 |
Accounts payable and other accrued liabilities | 7,477 | -10,554 | 15,516 |
Net cash provided by (used in) operating activities | 49,551 | -20,122 | -20,418 |
Cash flows from investing activities | ' | ' | ' |
Capital expenditures | -1,103 | -111 | -324 |
Acquisition of business, net of cash acquired | -12,996 | ' | ' |
Return of principal balance of restricted cash | ' | 23 | 185 |
Investments in unconsolidated joint ventures | -19 | -399 | -1,046 |
Return of capital from unconsolidated joint venture | ' | ' | 1,185 |
Purchases of investments | -275,198 | -252,092 | -168,274 |
Sale of investments | 196,728 | 288,462 | 93,439 |
Purchase of product rights | -5,174 | -3,248 | -4,762 |
Government grants received | 605 | ' | ' |
Net cash (used in) provided by investing activities | -97,157 | 32,635 | -79,597 |
Cash flows from financing activities | ' | ' | ' |
(Reduction) increase in short-term notes payable | ' | -24,867 | 4,141 |
Proceeds from issuance of long-term debt | ' | ' | 15,000 |
Repayment of long-term debt | -8,961 | -12,273 | -2,727 |
Proceeds from issuance of common stock, net of issuance costs | 71,247 | 995 | 101,551 |
Payment of deferred financing costs | -28 | -884 | -123 |
Net cash provided by (used in) financing activities | 62,258 | -37,029 | 117,842 |
Effect of exchange rate movements in cash | -7 | ' | ' |
Net increase (decrease) in cash and cash equivalents | 14,645 | -24,516 | 17,827 |
Cash and cash equivalents, at beginning of period | 27,687 | 52,203 | 34,376 |
Cash and cash equivalents, at end of period | 42,332 | 27,687 | 52,203 |
Supplemental disclosure of cash flow information | ' | ' | ' |
Cash paid for interest | $652 | $1,021 | $3,499 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||
Dec. 31, 2013 | |||
Summary of Significant Accounting Policies | ' | ||
Note 1. Summary of Significant Accounting Policies: | |||
Nature of Operations | |||
Sagent Pharmaceuticals, Inc. (“Sagent”, “we”, “us” or “our”) is a specialty pharmaceutical company that develops, sources, manufactures and markets pharmaceutical products, principally injectable-based generic equivalents to branded products. We completed our initial public offering (“IPO”) on April 26, 2011. In connection with our IPO, we incorporated (the “Reincorporation”) in Delaware as Sagent Pharmaceuticals, Inc. Prior to the Reincorporation, we were a Cayman Islands company, and our corporate name was Sagent Holding Co. (“Sagent Holding”). Our products are typically sold to pharmaceutical wholesale companies which then distribute the products to end-user hospitals, long-term care facilities, alternate care sites, and clinics. The injectable pharmaceutical marketplace is comprised of end users who have relationships with group purchasing organizations (GPOs) or specialty distributors that focus on a particular therapeutic class. GPOs enter into product purchasing agreements with Sagent and other pharmaceutical suppliers for products in an effort to secure favorable drug pricing on behalf of their end-user members. | |||
We are organized as a single reportable segment comprised of operations which develop, source, manufacture and market generic injectable products for sale in the United States, deriving a significant portion of our revenues from a single class of pharmaceutical wholesale customers within the United States. | |||
Basis of Presentation | |||
The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP). | |||
The consolidated financial statements include the assets, liabilities, and results of operations of Sagent Pharmaceuticals, Inc. and its wholly-owned subsidiaries. Intercompany balances and transactions have been eliminated in consolidation. | |||
On June 4, 2013, we acquired the remaining 50% equity interest in Kanghong Sagent (Chengdu) Pharmaceutical Co. Ltd. (“KSCP”) from our former joint venture partner (the “SCP Acquisition”), and accordingly, the consolidated financial statements since that date include KSCP as a wholly-owned subsidiary. Prior to the SCP Acquisition, we accounted for our investment in KSCP using the equity method of accounting, as our interest in the entity provided for joint financial and operational control, and operating results of KSCP were reported on a one-month lag. In August 2013, we formally changed the name of this entity to Sagent (China) Pharmaceuticals Co., Ltd. (“SCP”). | |||
Sagent Agila LLC (“Sagent Agila”) is a joint venture incorporated in Wyoming with Strides Inc., a wholly-owned subsidiary of Strides Arcolab International Limited (“Strides”), established in January 2007 with the principal business of development, manufacturing, marketing, distribution and sale of generic pharmaceutical products to the U.S. market. In December 2013, Mylan Inc. (“Mylan”) acquired Strides’ Agila Specialities Pvt. Ltd., subsidiary (“Agila”), including Strides’ ownership share of the Sagent Agila joint venture. | |||
We account for our 50% interest in Sagent Agila under the equity method of accounting as our interest in the entity provides for joint financial and operational control. Sagent’s equity in the net income (loss) of Sagent Agila is included in the accompanying consolidated statements of operations as equity in net income (loss) of joint ventures. | |||
Reincorporation | |||
In connection with our 2011 IPO and concurrent with our Reincorporation in Delaware, the holders of our preferred stock exchanged each of their outstanding shares of preferred stock for 0.12759 shares of our common stock. | |||
Use of Estimates | |||
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |||
Foreign Currencies | |||
We translate the results of operations of our foreign subsidiary using average exchange rates during each period, whereas balance sheet accounts are translated using exchange rates at the end of each period. We record currency translation adjustments as a component of equity. Transaction gains and losses are recorded in interest income and other in the statements of operations and were not significant for any of the periods presented. | |||
Fair Value of Financial Instruments | |||
The carrying amounts reported in the balance sheets for cash and cash equivalents and other current monetary assets and liabilities approximate fair value because of the immediate or short-term maturity of these financial instruments. | |||
Cash and Cash Equivalents | |||
We consider all highly liquid money market instruments with an original maturity of three months or less when purchased to be cash equivalents. These amounts are stated at cost, which approximates fair value. At December 31, 2013, cash equivalents were deposited in financial institutions and consisted of immediately available fund balances. The majority of our funds at December 31, 2013 were maintained at two stable financial institutions, each in an amount in excess of federally insured limits. This represents a concentration of credit risk. We have not experienced any losses on our deposits of cash and cash equivalents to date. | |||
Cash collateral pledged under various lease agreements and cash restricted by financing agreements is classified as restricted cash and cash equivalents in the accompanying consolidated balance sheets as our ability to withdraw the funds is contractually limited. | |||
Financial Instruments | |||
We consider all highly liquid money market investments with a maturity of three months or less at the date of purchase to be cash equivalents. The fair values of these investments approximate their carrying values. Investments with original maturities of greater than three months and remaining maturities of less than one year are classified as short-term investments. Investments with maturities beyond one year are classified as short-term based on their highly liquid nature and because such marketable securities represent the investment of cash that is available for current operations. All cash equivalents and short-term investments are classified as available-for-sale and realized gains and losses are recorded using the specific identification method. Changes in market value, excluding other-than-temporary impairments, are reflected in other comprehensive income (“OCI”). | |||
Investments are considered to be impaired when a decline in fair value is judged to be other-than-temporary. Fair value is calculated based on publicly available market information or other estimates determined by management. We employ a systematic methodology on a quarterly basis that considers available quantitative and qualitative evidence in evaluating potential impairment of our investments. If the cost of an investment exceeds its fair value, we evaluate, among other factors, general market conditions, credit quality of debt instrument issuers, the duration and extent to which the fair value is less than cost, and for equity securities, our intent and ability to hold, or plans to sell, the investment. For fixed income securities, we also evaluate whether we have plans to sell the security or it is more likely than not that we will be required to sell the security before recovery. We also consider specific adverse conditions related to the financial health of and business outlook for the investee, including industry and sector performance, changes in technology, and operational and financing cash flow factors. Once a decline in fair value is determined to be other-than-temporary, an impairment charge is recorded to other expense and a new cost basis in the investment is established. | |||
Inventories | |||
Inventories are stated at the lower of cost (first in, first out) or market value. Inventories consist of products currently approved for marketing and may include certain products pending regulatory approval. From time to time, we capitalize inventory costs associated with products prior to receiving regulatory approval based on our judgment of probable future commercial success and realizable value. Such judgment incorporates management’s knowledge and best judgment of where the product is in the regulatory review process, market conditions, competing products and economic expectations for the product post-approval relative to the risk of manufacturing the product prior to approval. If final regulatory approval for such products is denied or delayed, we may need to reserve for and expense such inventory. | |||
We establish reserves for inventory to reflect situations in which the cost of the inventory is not expected to be recovered. In evaluating whether inventory is stated at the lower of cost or market, management considers such factors as the amount of inventory on hand, estimated time required to sell such inventory, remaining shelf life and current expected market conditions, including level of competition. We record provisions for inventory to cost of goods sold. | |||
Property, Plant, and Equipment | |||
Property, plant, and equipment is stated at cost, less accumulated depreciation. The cost of repairs and maintenance is expensed when incurred, while expenditures for refurbishments and improvements that significantly add to the productive capacity or extend the useful life of an asset are capitalized. Provisions for depreciation are computed for financial reporting purposes using the straight-line method over the estimated useful life of the related asset and for leasehold improvements over the lesser of the estimated useful life of the related asset or the term of the related lease as follows: | |||
Land and land improvements | Remaining term of Chinese land use right (June 2057) | ||
Building and improvements | 5 to 40 years or remaining term of lease | ||
Machinery, equipment, furniture, and fixtures | 3 to 10 years | ||
Property, plant and equipment that is purchased or constructed which requires a period of time before the assets are ready for their intended use are accounted for as construction-in-progress. Construction-in-progress is recorded at acquisition cost, including installation costs and associated interest costs. Construction-in-progress is transferred to specific property, plant and equipment accounts and commences depreciation when these assets are ready for their intended use. The capitalization of interest costs commences when expenditures for the asset have been made, activities that are necessary to prepare the asset for its intended use are in progress and interest cost is being incurred. The capitalization period ends when the asset is substantially complete and ready for its intended use. | |||
Deferred Financing Costs | |||
Deferred financing costs related to the issuance of debt are amortized using the straight-line method over the term of the related debt instrument, which approximates the effective interest method. We capitalized deferred financing costs of $28 and $284 in 2013 and 2012, respectively, related to our SVB revolving loan facility and our former senior secured revolving credit facility and term loan credit facility. Deferred financing costs are recorded within Other Assets on our consolidated balance sheets, and totaled $206 and $268 at December 31, 2013 and 2012, respectively. | |||
Impairment of Long-Lived Assets | |||
We evaluate long-lived assets, including intangible assets with definite lives, for impairment whenever events or other changes in circumstances indicate that the carrying value of an asset may no longer be recoverable. An evaluation of recoverability is performed by comparing the carrying values of the assets to projected future undiscounted cash flows, in addition to other quantitative and qualitative analyses. Judgments made by management related to the expected useful lives of long-lived assets and the ability to realize undiscounted cash flows in excess of the carrying amounts of such assets are affected by factors such as changes in economic conditions and changes in operating performance. Upon indication that the carrying values of such assets may not be recoverable, we recognize an impairment loss as a charge against current operations. We recorded an impairment charge within cost of sales of $44 related to one product license right in the year ended December 31, 2013. No impairment charges were recorded during the years ended December 31, 2012 or 2011. | |||
Product Development Agreements | |||
Product development costs are expensed as incurred. These expenses include the costs of our internal product development efforts and acquired in-process research and development, as well as product development costs incurred in connection with our third-party collaboration efforts. Non-refundable milestone payments made under contract research and development arrangements or product licensing arrangements prior to regulatory approval may be deferred and are expensed as the related services are delivered and the milestone is achieved. If we determine that it is no longer probable that the product will be pursued, any related capitalized amount is expensed in the current period. | |||
Once a product receives regulatory approval, we record any subsequent milestone payments as an intangible asset to be amortized on a straight-line basis as a component of cost of sales over the related license period or the estimated life of the acquired product. At December 31, 2013, the amortization period for intangible assets arising from approved products ranges from five to eight years with a weighted-average period prior to the next renewal or extension of six years. We make the determination whether to capitalize or expense amounts related to the development of new products and technologies through agreements with third parties based on our ability to recover our cost in a reasonable period of time from the estimated future cash flows anticipated to be generated pursuant to each agreement. Market, regulatory, and legal factors, among other things, may affect the realizability of the projected cash flows that an agreement was initially expected to generate. We regularly monitor these factors and subject capitalized costs to periodic impairment testing. | |||
Goodwill and Intangible Assets | |||
Goodwill is recognized as the excess of fair value of consideration transferred to acquire an entity over the fair values assigned to assets acquired and liabilities assumed. Goodwill is not amortized, but rather tested for impairment on an annual basis and more often if circumstances require. We assess goodwill impairment risk by first performing a qualitative review of entity-specific, industry, market and general economic factors for our reporting unit. If significant potential goodwill impairment risk exists, we apply a two-step quantitative test. Impairment losses are recognized whenever the implied fair value of goodwill is less than its carrying value. We test goodwill for impairment at least annually on October 1. No impairment of goodwill was recorded in the year ended December 31, 2013. | |||
Certain amounts paid to third parties that are capitalized related to the development of new products and technologies are included within intangible assets. We determine the estimated fair values of certain intangible assets with definitive lives utilizing valuations performed by management at the time of their acquisition, based on anticipated future cash flow activity. | |||
We test indefinite-lived intangible assets for impairment by first performing a qualitative review by assessing events and circumstances that could affect the fair value or carrying value of the indefinite-lived intangible asset. If significant potential impairment risk exists for a specific non-amortizable intangible asset, we quantitatively test for impairment by comparing the fair value of each intangible asset with its carrying value. Fair value of non-amortizable intangible assets is determined using planned growth rates, market-based discount rates and estimates of royalty rates. If the carrying value of the asset exceeds its fair value, the intangible asset is considered impaired and is reduced to its estimated fair value. | |||
Definite-lived intangible assets are amortized over their estimated useful lives and evaluated for impairment as long-lived assets. | |||
Acquired In-Process Research and Development | |||
The fair value of in-process research and development (“IPR&D”) projects acquired in a business combination are capitalized and accounted for as indefinite-lived intangible assets until the underlying project receives regulatory approval, at which point the intangible asset will be accounted for as a definite-lived intangible asset, or discontinuation, at which point the intangible asset will be written off. Development costs incurred after the acquisition are expensed as incurred. Indefinite- and definite-lived assets are subject to impairment reviews as discussed previously. | |||
Advertising and Promotion Expense | |||
All advertising and promotion costs are expensed as selling, general, and administrative expenses when incurred. Total direct advertising and promotion expense incurred was $766, $683, and $679 for the years ended December 31, 2013, 2012 and 2011, respectively. | |||
Income Taxes | |||
Deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax bases, as well as net operating loss and capital loss carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the financial statements in the period that includes the legislative enactment date. We recognize the financial statement effects of a tax position only when it is more likely than not that the position will be sustained upon examination and recognize any interest and penalties accrued in relation to unrecognized tax benefits in income tax expense. We establish valuation allowances against deferred tax assets when it is more likely than not that the realization of those deferred tax assets will not occur. | |||
In assessing the realizability of deferred tax assets, we consider whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. We also consider the scheduled reversal of deferred tax liabilities, projected future taxable income or losses, and tax planning strategies in making this assessment. Based upon our history of aggregate tax losses over the past three years, we do not believe realization of these tax assets is more likely than not. As such, full valuation allowances for the deferred tax assets were established. | |||
Revenue Recognition – General | |||
We recognize revenue when our obligations to a customer are fulfilled relative to a specific product and all of the following conditions are satisfied: (i) persuasive evidence of an arrangement exists; (ii) the price is fixed or determinable; (iii) collectability is reasonably assured; and (iv) delivery has occurred. Delivery is deemed to have occurred upon customer receipt of product, upon fulfillment of acceptance terms, if any, and when no significant contractual obligations remain. Net sales reflect reductions of gross sales for estimated wholesaler chargebacks, estimated contractual allowances, and estimated early payment discounts. We provide for estimated returns at the time of sale based on historic product return experience. | |||
In the case of new products for which the product introduction is not an extension of an existing line of product, where we determine that there are not products in a similar therapeutic category, or where we determine the new product has dissimilar characteristics with existing products, such that we cannot reliably estimate expected returns of the new product, we defer recognition of revenue until the right of return no longer exists or until we have developed sufficient historical experience to estimate sales returns. | |||
Shipping and handling fees billed to customers are recognized in net revenue. Other shipping and handling costs are included in cost of goods sold. | |||
Revenue Recognition – Chargebacks | |||
The majority of our products are distributed through independent pharmaceutical wholesalers. In accordance with industry practice, sales to wholesalers are initially transacted at wholesale list price. The wholesalers then generally sell to an end user, normally a hospital, alternative healthcare facility, or an independent pharmacy, at a lower price previously contractually established between the end user and Sagent. | |||
When we initially record a sale to a wholesaler, the sale and resulting receivable are recorded at our list price. However, experience indicates that most of these selling prices will eventually be reduced to a lower, end-user contract price. Therefore, at the time of the sale, a contra asset is recorded for, and revenue is reduced by, the difference between the list price and the estimated average end-user contract price. This contra asset is calculated by product code, taking the expected number of outstanding wholesale units sold that will ultimately be sold under end-user contracts multiplied by the anticipated, weighted-average contract price. When the wholesaler ultimately sells the product, the wholesaler charges us, or issues a chargeback, for the difference between the list price and the end-user contract price and such chargeback is offset against the initial estimated contra asset. Periodically, we review the wholesale list prices for our products, and from time to time may reduce list prices based on market conditions or competitive pricing pressures. Reductions in the wholesale list price of our products reduce both our gross sales and the revenue reduction recorded upon initial product sale, but do not change the end-user contract selling price. | |||
The significant estimates inherent in the initial chargeback provision relate to wholesale units pending chargeback and to the ultimate end-user contract-selling price. We base the estimate for these factors on product-specific sales and internal chargeback processing experience, estimated wholesaler inventory stocking levels, current contract pricing and our expectation for future contract pricing changes. Our chargeback provision is potentially impacted by a number of market conditions, including: competitive pricing, competitive products, and other changes impacting demand in both the distribution channel and end users. | |||
We rely on internal data, external data from our wholesaler customers, and management estimates to estimate the amount of inventory in the channel subject to future chargeback. The amount of product in the channel is comprised of both product at the wholesaler and product that the wholesaler has sold, but not yet reported as end-user sales. Physical inventory in the channel is estimated by the evaluation of our monthly sales to the wholesalers and our knowledge of inventory levels and estimated inventory turnover at these wholesalers. | |||
Our total chargeback accrual was $43,682 and $24,265 at December 31, 2013 and 2012, respectively, and is included as a reduction of accounts receivable. Our total chargeback expense was $300,835, $166,051 and $167,521 for the years ended December 31, 2013, 2012 and 2011, respectively. | |||
Revenue Recognition – Cash Discounts | |||
We offer cash discounts, approximating 2% of the gross sales price, as an incentive for prompt payment and occasionally offer greater discounts and extended payment terms in support of product launches or other promotional programs. Our wholesale customers typically pay within terms, and we account for cash discounts by reducing net sales and accounts receivable by the full amount of the discount offered at the time of sale. We consider payment performance and adjust the accrual to reflect actual experience. | |||
Our total accrual for cash discounts was $2,414 and $1,373 at December 31, 2013 and 2012, respectively, and is included as a reduction of accounts receivable. | |||
Revenue Recognition – Sales Returns | |||
Consistent with industry practice, our return policy permits customers to return products within a window of time before and after the expiration of product dating. We provide for product returns and other customer credits at the time of sale by applying historical experience factors. We provide specifically for known outstanding returns and credits. The effect of any changes in estimated returns is taken in the current period’s income. | |||
For returns of established products, we determine our estimate of the sales return accrual primarily based on historical experience, but also consider other factors that could impact sales returns. These factors include levels of inventory in the distribution channel, estimated shelf life, product recalls, timing of product returns relative to expiry, product discontinuances, price changes of competitive products, and introductions of competitive new products. | |||
Our total accrual for returns and credits was $4,895 and $3,262 at December 31, 2013 and 2012, respectively, and is included as a reduction of accounts receivable. | |||
Revenue Recognition – Contractual Allowances | |||
Contractual allowances, generally rebates or administrative fees, are offered to certain wholesale customers, GPOs, and end-user customers, consistent with pharmaceutical industry practices. Settlement of rebates and fees may generally occur from one to five months from date of sale. We provide a provision for contractual allowances at the time of sale based on the historical relationship between sales and such allowances. Contractual allowances are reflected in the consolidated financial statements as a reduction of revenues and as a current accrued liability. | |||
Stock Based Compensation | |||
We recognize compensation cost for all share-based payments (including employee stock options) at fair value. We use the straight-line attribution method to recognize stock based compensation expense over the vesting period of the award. Options currently granted generally expire ten years from the grant date and vest ratably over a four-year period. | |||
Stock based compensation expense for performance based options is measured and recognized if the performance measures are considered probable of being achieved. We evaluate the probability of the achievement of the performance measures at each balance sheet date. If it is not probable that the performance measures will be achieved, any previously recognized compensation cost would be reversed. | |||
Stock based compensation expense for cash-settled awards is measured and recognized at fair value on a periodic basis. | |||
We use the Black-Scholes option pricing model to estimate the fair value of options granted under our equity incentive plans and rights to acquire stock granted under the stock participation plan. Stock-based compensation expense was $5,293, $5,552 and $2,545 for the years ended December 31, 2013, 2012 and 2011, respectively. | |||
Acquisitions
Acquisitions | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Acquisitions | ' | ||||||||
Note 2. Acquisitions: | |||||||||
Remaining equity interest of SCP | |||||||||
On April 30, 2013, we entered into a Share Purchase Agreement with Chengdu Kanghong Pharmaceuticals (Group) Co. Ltd. (“CKT”) to acquire CKT’s 50% equity interest in KSCP for $25,000, payable in installments through September 2015. The SCP Acquisition closed on June 4, 2013, following approval by the Chengdu Hi-Tech Industrial Development Zone Bureau of Investment Services. Concurrent with the closing of the SCP Acquisition, we paid $10,000 of the aggregate purchase consideration, and recorded a liability of $13,836 representing the fair value of our future payments as of the acquisition date to CKT under the terms of the Share Purchase Agreement. Upon the execution of the Share Purchase Agreement, we entered into a Share Pledge Agreement with CKT pursuant to which we pledged a portion of the shares to be acquired as collateral securing our future installment payment obligations. In December, we paid $2,500 of the installment payment obligation. Future installment payments are payable as follows: | |||||||||
(in thousands) | |||||||||
2014 | 3,500 | ||||||||
2015 | 9,000 | ||||||||
The SCP Acquisition was financed with cash and short term investments. The SCP Acquisition provided us with full control of the SCP manufacturing facility and served our long term strategic goals of additional investment in product development and vertically integrated capacity expansion. | |||||||||
As a result of the SCP Acquisition, we remeasured the previously held equity interest in KSCP to fair value, resulting in a gain of $2,936 reported as gain on previously held equity interest in the condensed consolidated statements of operations. The gain includes $2,782 reclassified from accumulated other comprehensive income (loss), and previously recorded as currency translation adjustments. Both the gain on previously held equity interest and the fair value of the non-controlling interest in SCP that we acquired were based on an asset approach valuation method. Acquisition related costs of $479 were recognized as product development expenses. | |||||||||
The acquisition date fair value transferred for the purchase of SCP is as follows: | |||||||||
(in thousands) | |||||||||
Cash | $ | 10,000 | |||||||
Present value of remaining purchase consideration | 13,836 | ||||||||
Previously held equity interest | 15,949 | ||||||||
Gain on remeasurement of previously held equity interest in KSCP | 154 | ||||||||
Total purchase consideration | $ | 39,939 | |||||||
The fair value of identifiable assets acquired and liabilities assumed for the SCP acquisition is shown in the table below: | |||||||||
(in thousands) | |||||||||
Goodwill | $ | 6,038 | |||||||
Acquired tangible assets, net of assumed liabilities | 33,901 | ||||||||
Total allocation of fair value | $ | 39,939 | |||||||
The net tangible assets acquired consist primarily of cash of $2,704, inventory of $2,396, prepaid assets of $196, and property, plant and equipment of $56,654, net of assumed liabilities, primarily long term bank loans of $19,095 and accrued compensation and other liabilities of $8,954. We recorded goodwill of $6,038 due to the synergies achieved by having control over the products and manufacturing at the SCP facility. | |||||||||
SCP’s revenues of $344 and losses of $6,137 are included in the company’s consolidated results from the date of acquisition. | |||||||||
Product rights acquisitions | |||||||||
On August 30, 2013, we entered into an agreement with Mylan to acquire two products rights, Mesna and Acetylcysteine, owned by Sagent Agila. The acquisition closed on December 12, 2013, following the completion of Mylan’s acquisition of Agila from Strides. Under the terms of the agreement, we acquired the product rights from Sagent Agila. The total fair value of consideration transferred was $3,400, consisting of $3,200 of cash and $200 of contingent consideration. Sagent Agila deconsolidated its ownership in the product rights, recognizing a gain of $3,400, which the joint venture partners shared through their equity interests in Sagent Agila. | |||||||||
We estimated the fair value of the contingent consideration to be $200 using a probability weighting approach that considered the possible outcomes based on assumptions related to the timing and probability of the Acetylcysteine product approval date. The transaction was accounted for as a purchase of a business, and consequently, results of operations reflect the new basis of accounting from the date of the acquisition. The acquisition of these two products provides us with full control of the product rights and enhanced profitability, as we will no longer be required to share the profitability with our joint venture partner. The acquisition was financed with cash. Acquisition related costs related to this transaction were nominal. | |||||||||
The estimated fair value of identifiable assets acquired and liabilities assumed for Mesna and Acetylcysteine is shown in the table below: | |||||||||
(in thousands) | |||||||||
Definite-lived intangible asset | $ | 2,180 | |||||||
In-process research and development | 1,220 | ||||||||
Total allocation of fair value | $ | 3,400 | |||||||
The following unaudited pro forma financial information reflects the consolidated results of operations of Sagent as if the acquisitions had taken place on January 1, 2012 and January 1, 2013. The pro forma information includes acquisition and integration expenses. The pro forma financial information is not necessarily indicative of the results of operations as they would have been had the transaction been effected on the assumed date. | |||||||||
Year Ended December 31, | |||||||||
2013 | 2012 | ||||||||
Condensed statement of operations information | |||||||||
Net revenues | $ | 244,750 | $ | 183,615 | |||||
Net income (loss) | 18,405 | (15,540 | ) | ||||||
Diluted income (loss) per common share | $ | 0.61 | $ | (0.56 | ) |
Investments
Investments | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Investments | ' | ||||||||||||||||||||||||
Note 3. Investments | |||||||||||||||||||||||||
Our investments at December 31, 2013 were comprised of the following: | |||||||||||||||||||||||||
Cost basis | Unrealized | Unrealized | Recorded | Cash and | Short term | ||||||||||||||||||||
gains | losses | basis | cash | investments | |||||||||||||||||||||
equivalents | |||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Cash | $ | 30,740 | $ | — | $ | — | $ | 30,740 | $ | 30,740 | $ | — | |||||||||||||
Money market funds | 11,592 | — | — | 11,592 | 11,592 | — | |||||||||||||||||||
Commercial paper | 21,297 | — | (3 | ) | 21,294 | — | 21,294 | ||||||||||||||||||
Corporate bonds and notes | 92,523 | 46 | (53 | ) | 92,516 | — | 92,516 | ||||||||||||||||||
$ | 156,152 | $ | 46 | $ | (56 | ) | $ | 156,142 | $ | 42,332 | $ | 113,810 | |||||||||||||
Our investments at December 31, 2012 were comprised of the following: | |||||||||||||||||||||||||
Cost basis | Unrealized | Unrealized | Recorded | Cash and | Short term | ||||||||||||||||||||
gains | losses | basis | cash | investments | |||||||||||||||||||||
equivalents | |||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Cash | $ | 9,546 | $ | — | $ | — | $ | 9,546 | $ | 9,546 | $ | — | |||||||||||||
Money market funds | 18,141 | — | — | 18,141 | 18,141 | — | |||||||||||||||||||
Commercial paper | 23,249 | — | (2 | ) | 23,247 | — | 23,247 | ||||||||||||||||||
Corporate bonds and notes | 13,344 | 14 | 13,358 | — | 13,358 | ||||||||||||||||||||
$ | 64,280 | $ | 14 | $ | (2 | ) | $ | 64,292 | $ | 27,687 | $ | 36,605 | |||||||||||||
Investments with continuous unrealized losses for less than twelve months and their related fair values were as follows: | |||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||||||||||||||
Fair value | Unrealized | Fair value | Unrealized | ||||||||||||||||||||||
losses | losses | ||||||||||||||||||||||||
Commercial paper | $ | 19,294 | $ | (3 | ) | $ | 23,247 | $ | (2 | ) | |||||||||||||||
Corporate bonds and notes | 50,922 | (53 | ) | — | — | ||||||||||||||||||||
Unrealized losses from fixed-income securities are primarily attributable to changes in interest rates. Because we do not intend to sell these investments, and it is not more likely than not that we will be required to sell our investments before recovery of their amortized cost basis, which may be maturity, we do not consider these investments to be other-than-temporarily impaired at December 31, 2013 or 2012. | |||||||||||||||||||||||||
The original cost and estimated current fair value of our fixed-income securities are set forth below. | |||||||||||||||||||||||||
Cost basis | Estimated fair | ||||||||||||||||||||||||
value | |||||||||||||||||||||||||
Due in one year or less | $ | 54,032 | $ | 54,020 | |||||||||||||||||||||
Between one and five years | 59,788 | 59,790 |
Accounts_Receivable_and_Concen
Accounts Receivable and Concentration of Credit Risk | 12 Months Ended |
Dec. 31, 2013 | |
Accounts Receivable and Concentration of Credit Risk | ' |
Note 4. Accounts Receivable and Concentration of Credit Risk | |
We typically establish multi-year contractual agreements with GPOs and individual hospital groups to offer our products to end-user customers. As is common in the pharmaceutical industry, a significant amount of our pharmaceutical products are sold to end users under these GPO contracts through a relatively small number of drug wholesalers, which comprise the primary pharmaceutical distribution chain in the United States. Three wholesalers collectively represented approximately 84%, 82% and 83% of net revenue in 2013, 2012 and 2011, respectively, and represented approximately 87% and 89% of accounts receivable at December 31, 2013 and 2012, respectively. To help control our credit exposure, we routinely monitor the creditworthiness of customers, review outstanding customer balances, and record allowances for bad debts as necessary. Historical credit loss has not been significant. We had a reserve of $23 and $124 for bad debts as of December 31, 2013 and 2012, respectively. We do not require collateral. |
Inventories
Inventories | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Inventories | ' | ||||||||||||||||||||||||
Note 5. Inventories | |||||||||||||||||||||||||
Inventories at December 31, 2013 and 2012 were as follows: | |||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||||||||||||||
Approved | Pending | Inventory | Approved | Pending | Inventory | ||||||||||||||||||||
regulatory | regulatory | ||||||||||||||||||||||||
approval | approval | ||||||||||||||||||||||||
Finished goods | $ | 44,510 | $ | 1,437 | $ | 45,947 | $ | 46,410 | $ | 1,437 | $ | 47,847 | |||||||||||||
Raw materials | 5,614 | 19 | 5,633 | 1,280 | — | 1,280 | |||||||||||||||||||
Inventory reserve | (3,662 | ) | (1,437 | ) | (5,099 | ) | (2,021 | ) | — | (2,021 | ) | ||||||||||||||
$ | 46,462 | $ | 19 | $ | 46,481 | $ | 45,669 | $ | 1,437 | $ | 47,106 | ||||||||||||||
Property_plant_and_equipment
Property, plant and equipment | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Property, plant and equipment | ' | ||||||||
Note 6. Property, plant and equipment | |||||||||
Property, plant and equipment at December 31, 2013 and 2012 were as follows: | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Land and land improvements | $ | 2,235 | $ | — | |||||
Buildings and improvements | 19,696 | 103 | |||||||
Machinery, equipment, furniture and fixtures | 38,000 | 1,764 | |||||||
Construction in process | 460 | — | |||||||
60,391 | 1,867 | ||||||||
Less: accumulated depreciation | (2,707 | ) | (1,087 | ) | |||||
$ | 57,684 | $ | 780 | ||||||
Depreciation expense was $1,620, $215 and $225 in the years ended December 31, 2013, 2012 and 2011, respectively. We placed $49,744 of assets related to our Chinese manufacturing facility into service in September 2013, as production of the first commercial batches from the facility occurred at that time. |
Investment
Investment | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
SCP | ' | ||||||||||||
Investment | ' | ||||||||||||
Note 8. Investment in SCP | |||||||||||||
Prior to the SCP Acquisition in June 2013, we accounted for our 50% interest in SCP under the equity method of accounting. Under the equity method of accounting, our share of income or loss is recorded as “equity in net income (loss) of joint ventures” in the consolidated statements of operations on a one-month lag. Changes in the carrying value of SCP consist of the following: | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Investment in SCP at beginning of year | $ | 17,461 | $ | 20,888 | |||||||||
Equity in net loss of SCP | (1,825 | ) | (3,814 | ) | |||||||||
Currency translation adjustment | 294 | 237 | |||||||||||
Investments in SCP | 19 | 150 | |||||||||||
Acquisition of remaining equity interest in SCP | (15,949 | ) | — | ||||||||||
Investment in SCP at end of year | $ | — | $ | 17,461 | |||||||||
Condensed statement of operations through the date of the SCP Acquisition and balance sheet information at December 31, 2012 is presented below. All amounts are presented in accordance with accounting principles generally accepted in the United States. In addition, the assets and liabilities of SCP have been translated at exchange rates as of the balance sheet date and revenues and expenses of SCP have been translated at the weighted-average exchange rate for each respective reporting period. | |||||||||||||
Period ended | Year ended | ||||||||||||
June 4, | December 31, | ||||||||||||
2013 | 2012 | 2011 | |||||||||||
Condensed statement of operations information | |||||||||||||
Net revenues | $ | — | $ | — | $ | — | |||||||
Gross profit | — | — | — | ||||||||||
Net loss | (2,805 | ) | (7,044 | ) | (8,581 | ) | |||||||
December 31, | |||||||||||||
2012 | |||||||||||||
Condensed balance sheet information | |||||||||||||
Current assets | $ | 3,717 | |||||||||||
Noncurrent assets | 53,728 | ||||||||||||
Total assets | $ | 57,445 | |||||||||||
Current liabilities | $ | 4,741 | |||||||||||
Long-term liabilities | 18,296 | ||||||||||||
Stockholders’ equity | 34,408 | ||||||||||||
Total liabilities and stockholders’ equity | $ | 57,445 | |||||||||||
Sagent Agila LLC | ' | ||||||||||||
Investment | ' | ||||||||||||
Note 7. Investment in Sagent Agila | |||||||||||||
We account for our 50% interest in Sagent Agila under the equity method of accounting. Under the equity method of accounting, our share of income or loss is recorded as “equity in net income (loss) of joint ventures” in the consolidated statements of operations. | |||||||||||||
Changes in the carrying value of Sagent Agila consist of the following: | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Investment in Sagent Agila at beginning of year | $ | 2,161 | $ | 1,874 | |||||||||
Equity in net income of Sagent Agila | 4,220 | 5,151 | |||||||||||
Dividend paid | (4,318 | ) | (5,155 | ) | |||||||||
Investments in Sagent Agila | — | 291 | |||||||||||
Investment in Sagent Agila at end of year | $ | 2,063 | $ | 2,161 | |||||||||
Condensed statement of operations and balance sheet information of Sagent Agila is presented below. All amounts are presented in accordance with accounting principles generally accepted in the United States. | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Condensed statement of operations information | |||||||||||||
Net revenues | $ | 16,927 | $ | 28,948 | $ | 10,540 | |||||||
Gross profit | 5,454 | 11,279 | 4,128 | ||||||||||
Net income | 8,440 | 10,302 | 3,599 | ||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Condensed balance sheet information | |||||||||||||
Current assets | $ | 7,910 | $ | 11,015 | |||||||||
Noncurrent assets | 522 | 770 | |||||||||||
Total assets | $ | 8,432 | $ | 11,785 | |||||||||
Current liabilities | $ | 4,328 | $ | 7,485 | |||||||||
Long-term liabilities | — | — | |||||||||||
Stockholders’ equity | 4,104 | 4,300 | |||||||||||
Total liabilities and stockholders’ equity | $ | 8,432 | $ | 11,785 | |||||||||
Goodwill_and_Intangible_assets
Goodwill and Intangible assets, net | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Goodwill and Intangible assets, net | ' | ||||||||||||||||||||||||
Note 9. Goodwill and Intangible assets, net | |||||||||||||||||||||||||
We recorded goodwill of approximately $6,038 related to the SCP Acquisition. There were no reductions of goodwill relating to impairments. | |||||||||||||||||||||||||
Intangible assets at December 31, 2013 and 2012 were as follows: | |||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||||||||||||||
Gross carrying | Accumulated | Intangible | Gross carrying | Accumulated | Intangible | ||||||||||||||||||||
amount | amortization | assets, net | amount | amortization | assets, net | ||||||||||||||||||||
Product licensing rights | $ | 5,941 | $ | (2,087 | ) | $ | 3,854 | $ | 3,156 | $ | (1,541 | ) | $ | 1,615 | |||||||||||
Product development rights | 3,252 | — | 3,252 | 2,662 | — | 2,662 | |||||||||||||||||||
Total definite-lived intangible assets | $ | 9,193 | $ | (2,087 | ) | $ | 7,106 | $ | 5,818 | $ | (1,541 | ) | $ | 4,277 | |||||||||||
In-process research and development (IPR&D) | $ | 1,220 | $ | — | $ | 1,220 | $ | — | $ | — | $ | — | |||||||||||||
Total intangible assets | $ | 10,413 | $ | (2,087 | ) | $ | 8,326 | $ | 5,818 | $ | (1,541 | ) | $ | 4,277 | |||||||||||
Movements in intangible assets were due to the following: | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Product | Product | IPR&D | Product | Product | |||||||||||||||||||||
licensing | development | licensing | development | ||||||||||||||||||||||
rights | rights | rights | rights | ||||||||||||||||||||||
Balance at January 1 | $ | 1,615 | $ | 2,662 | $ | — | $ | 1,458 | $ | 3,968 | |||||||||||||||
Acquisition of product rights | 604 | 4,570 | — | 628 | 2,620 | ||||||||||||||||||||
Sagent Agila product acquisitions | 2,180 | 1,220 | — | — | |||||||||||||||||||||
Amortization of product rights | (545 | ) | (3,980 | ) | — | (471 | ) | (3,926 | ) | ||||||||||||||||
Balance at December 31 | $ | 3,854 | $ | 3,252 | $ | 1,220 | $ | 1,615 | $ | 2,662 | |||||||||||||||
Amortization expense related to our product licensing rights was $545, $471 and $402 for the years ended December 31, 2013, 2012 and 2011, respectively. Amortization expense related to our product development rights was $3,980, $3,926 and $1,547 for the years ended December 31, 2013, 2012 and 2011, respectively. The weighted-average period prior to the next extension or renewal for the 22 products comprising our product licensing rights intangible asset was 72 months at December 31, 2013. | |||||||||||||||||||||||||
We currently estimate amortization expense over each of the next five years as follows: | |||||||||||||||||||||||||
Amortization | |||||||||||||||||||||||||
expense | |||||||||||||||||||||||||
For the year ending December 31, | |||||||||||||||||||||||||
2014 | $ | 4,102 | |||||||||||||||||||||||
2015 | 538 | ||||||||||||||||||||||||
2016 | 511 | ||||||||||||||||||||||||
2017 | 487 | ||||||||||||||||||||||||
2018 | 463 |
Accrued_liabilities
Accrued liabilities | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Accrued liabilities | ' | ||||||||
Note 10. Accrued liabilities | |||||||||
Accrued liabilities at December 31, 2013 and 2012 were as follows: | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Payroll and employee benefits | $ | 6,143 | $ | 1,211 | |||||
Sales and marketing | 5,305 | 5,649 | |||||||
Taxes payable | 895 | — | |||||||
Other accrued liabilities | 661 | 509 | |||||||
$ | 13,004 | $ | 7,369 | ||||||
Debt
Debt | 12 Months Ended |
Dec. 31, 2013 | |
Debt | ' |
Note 11. Debt | |
Credit facilities acquired under the SCP Acquisition | |
In connection with the acquisition of the remaining 50% equity interest in SCP, we assumed two loan contracts with the Agricultural Bank of China Ltd. in the amount of RMB 37,000 ($6,069) and RMB 83,000 ($13,613) originally entered into in June 2011 and August 2010, respectively, (the “ABC Loans”) each with a five year term. Amounts outstanding under the ABC Loans bear an interest rate equal to the benchmark lending interest rate published by the People’s Bank of China. During the term of the loan, the rate is subject to adjustment every three months. The ABC Loans are secured by the property, plant and equipment of SCP. As of December 31, 2013, RMB 63,000 ($10,333) was outstanding under the ABC Loans, at an interest rate of 6.00% per annum. As the interest rate resets on a quarterly basis, the fair value of our long-term debt approximates its carrying value. Repayment will be accelerated if the liabilities to assets ratio exceed 70% and 80% during the term of the RMB 37,000 and RMB 83,000 credit facilities, respectively, or if our SCP subsidiary is unable to achieve 50% of its projected revenues when it commences commercial activities. | |
On January 2, 2014, we repaid in full the then-outstanding balance of the ABC Loans, totaling RMB 63.0 million ($10.3 million). Upon prepayment of the ABC Loans, the loan contracts were terminated. No early termination fees were incurred as part of the prepayment of the ABC Loans. | |
Silicon Valley Bank Loan and Security Agreement | |
In 2009, our principal operating subsidiary entered into a $15,000 senior secured revolving credit facility (the “Revolver”) with Midcap Financial, LLC (“Midcap”), which was to expire in June 2012. In December 2010, the Revolver was amended to increase the facility by $10,000, to $25,000, and the expiration date was extended to June 2013. In March 2011, our principal operating subsidiary amended the Revolver to permit, among other things, the entry into a new $15,000 term loan credit facility (the “Term Loan”) and the incurrence of debt and granting of liens thereunder. The amendment also required that we become a borrower under the Revolver. The Revolver and Term Loan were further amended in September 2011 primarily to include our parent company as a co-borrower under the facilities. Availability under the Revolver was based on our accounts receivable and inventory balances, and was $24,867 as of December 31, 2011. All available amounts as of this date had been drawn, with the net proceeds of the notes having been used for general corporate purposes. Financing costs associated with the Revolver, including commitment fees, were deferred and are being amortized to interest expense over the life of the agreement. | |
The interest rate on the Revolver, which bore interest at a rate equal to either an adjusted London Interbank Offered Rate (“LIBOR”), plus a margin of 5.50%, or an alternate base rate plus a margin of 4.50%, was 8.50% at December 31, 2011. | |
In March 2011, our principal operating subsidiary entered into a $15,000 Term Loan with Midcap as agent and lender, and Silicon Valley Bank as lender. The interest rate on the Term Loan, which bore interest at LIBOR plus a margin of 9.0%, subject to a 3.0% LIBOR floor, was 12.0% at December 31, 2011. Equal monthly amortization payments in respect to the Term Loan were payable beginning September 1, 2011. Under the agreement, we were required to maintain the lesser of $15,000 or 65% of our consolidated cash balances with a single financial institution and were also required to pay a financing fee of $600 when the Term Loan was repaid. The financing fee was amortized to interest expense over the life of the loan, and the related obligation was included in other long-term liabilities on our balance sheet. | |
In February 2012, we entered into a Loan and Security Agreement with Silicon Valley Bank (the “SVB Agreement”). The SVB Agreement provides for a $40,000 asset based revolving loan facility, with availability subject to a borrowing base consisting of eligible accounts receivable and inventory and the satisfaction of conditions precedent specified in the SVB Agreement. The SVB Agreement matures on February 13, 2016, at which time all outstanding amounts will become due and payable. Borrowings under the SVB Agreement may be used for general corporate purposes, including funding working capital. Amounts drawn bear an interest rate equal to, at our option, either a Eurodollar rate plus 2.50% per annum or an alternative base rate plus 1.50% per annum. We also pay a commitment fee on undrawn amounts equal to 0.30% per annum. | |
The SVB Agreement contains various customary affirmative and negative covenants. The negative covenants restrict our ability to, among other things, incur additional indebtedness, create or permit to exist liens, make certain investments, dividends and other payments in respect of capital stock, sell assets or otherwise dispose of our property, change our lines of business, or enter into a merger or acquisition, in each case, subject to thresholds and exceptions as set forth in the SVB Agreement. The financial covenants in the SVB Agreement are limited to maintenance of a minimum adjusted quick ratio and a minimum free cash flow. The SVB Agreement also contains customary events of default, including non-payment of principal, interest and other fees after stated grace periods, violations of covenants, material inaccuracy of representations and warranties, certain bankruptcy and liquidation events, certain material judgments and attachment events, cross-default to other debt in excess of a specified amount and material agreements, failure to maintain certain material governmental approvals, and actual or asserted invalidity of subordination terms, guarantees and collateral, in each case, subject to grace periods, thresholds and exceptions as set forth in the SVB Agreement. | |
During the continuance of an event of default, at Silicon Valley Bank’s option, all obligations will bear interest at a rate per annum equal to 5.00% per annum above the otherwise applicable rate. At March 31, 2012, we were not in compliance with the free cash flow covenant in the SVB Agreement. On May 10, 2012, Silicon Valley Bank agreed to waive our non-compliance with the covenant at March 31, 2012 and modified the covenant for the remainder of 2012. In connection with the waiver and modification, we paid a fee of $100. As of December 31, 2012, no borrowings were outstanding and we were in compliance with all of our covenants under the SVB Agreement. | |
Concurrent with entering into the SVB Agreement, we repaid in full with cash on hand all outstanding amounts under our former Term Loan and Revolver, plus certain associated fees, and terminated the agent’s and lender’s commitments to extend further credit under those facilities. Concurrent with the repayment and termination of these agreements, all liens and security interests against our property that secured the obligations under these agreements were released and discharged. Loans under the SVB Agreement are secured by a lien on substantially all of our and our principal operating subsidiary’s assets, other than our equity interests in our joint ventures and certain other limited exceptions. | |
As part of the termination of these prior agreements, we were required to pay to the lenders under those facilities $1,500 of early termination fees and a $600 exit fee associated with the Term Loan; however, $1,050 of such fees owing to Silicon Valley Bank under these agreements were deferred in connection with the execution of the SVB Agreement and will only be payable upon the occurrence of certain early termination events as set forth in the SVB Agreement. We have accounted for the termination of these prior agreements as the extinguishment of the Term Loan, and the partial extinguishment of the Revolver. We recorded $1,124 in the year ended December 31, 2012 to account for early termination fees and the acceleration of deferred financing costs related to the partial extinguishment of these facilities within interest expense in the consolidated statement of operations. | |
On September 23, 2013, we entered into a Second Loan Modification Agreement to the SVB Agreement with Silicon Valley Bank (the “Modification”). The Modification altered the calculation methodology of the borrowing base that is used to determine our borrowing availability and the covenant for the Adjusted Quick Ratio tested at the end of each month and eliminated the covenant to maintain a specified level of free cash flow in quarters where we maintain eligible cash balances of $30 million or greater. We did not amend the term, the maximum availability, or the interest rate applicable to the amounts drawn under the SVB Agreement. As of December 31, 2013, no borrowings were outstanding and we were in compliance with all of our covenants under the SVB Agreement |
Fair_value_measurements
Fair value measurements | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Fair value measurements | ' | ||||||||||||||||
Note 12. Fair value measurements | |||||||||||||||||
Assets and liabilities measured at fair value on a recurring basis as of December 31, 2013 consisted of the following: | |||||||||||||||||
Total fair value | Quoted prices in | Significant other | Significant | ||||||||||||||
active markets | observable | unobservable | |||||||||||||||
for identical | inputs (Level 2) | inputs | |||||||||||||||
assets (Level 1) | (Level 3) | ||||||||||||||||
Assets | |||||||||||||||||
Money market funds | $ | 11,592 | $ | 11,592 | $ | — | $ | — | |||||||||
Corporate bonds and notes | 92,516 | — | 92,516 | — | |||||||||||||
Commercial paper | 21,294 | — | 21,294 | — | |||||||||||||
Short-term investments | $ | 113,810 | $ | — | $ | 113,810 | $ | — | |||||||||
Total assets | $ | 125,402 | $ | 11,592 | $ | 113,810 | $ | — | |||||||||
Liabilities | |||||||||||||||||
Contingent purchase consideration | $ | 200 | $ | — | $ | — | $ | 200 | |||||||||
The fair value of our Level 2 investments is based on a combination of quoted market prices of similar securities and matrix pricing provided by third-party pricing services utilizing securities of similar quality and maturity. | |||||||||||||||||
Assets measured at fair value on a recurring basis as of December 31, 2012 consisted of the following: | |||||||||||||||||
Total fair value | Quoted prices in | Significant other | Significant | ||||||||||||||
active markets for | observable | unobservable | |||||||||||||||
identical assets | inputs (Level 2) | inputs | |||||||||||||||
(Level 1) | (Level 3) | ||||||||||||||||
Assets | |||||||||||||||||
Money market funds | $ | 18,141 | $ | 18,141 | $ | — | $ | — | |||||||||
Corporate bonds and notes | 13,358 | — | 13,358 | — | |||||||||||||
Commercial paper | 23,247 | — | 23,247 | — | |||||||||||||
Short-term investments | $ | 36,605 | $ | — | $ | 36,605 | $ | — | |||||||||
Total assets | $ | 54,746 | $ | 18,141 | $ | 36,605 | $ | — | |||||||||
During the year ended December 31, 2013, changes in the fair value of our contingent purchase consideration measured using significant unobservable inputs (Level 3), were comprised of the following: | |||||||||||||||||
Year ended | |||||||||||||||||
December 31, 2013 | |||||||||||||||||
Balance at beginning of period | $ | — | |||||||||||||||
Issuance of contingent purchase consideration | 200 | ||||||||||||||||
Change in fair value of contingent purchase consideration | — | ||||||||||||||||
Payment of contingent purchase consideration | — | ||||||||||||||||
Balance at end of period | $ | 200 | |||||||||||||||
Employee_Benefit_Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2013 | |
Employee Benefit Plan | ' |
Note 13. Employee Benefit Plan | |
We sponsor a 401(k) defined-contribution plan (the “401(k) Plan”) covering substantially all eligible employees. Employee contributions to the 401(k) Plan are voluntary. We contribute an amount equal to 50% of a covered employee’s eligible contribution up to 6% of a participant’s compensation. Employer contributions vest over a period of three years. Participants’ contributions are limited to their annual tax deferred contribution limit as allowed by the Internal Revenue Service. The Company’s total matching contributions to the 401(k) Plan were $338, $340 and $310 for years ended December 31, 2013, 2012 and 2011, respectively. We may contribute additional amounts to the 401(k) Plan at our discretion. Discretionary employer contributions vest over the same three-year period. We made no discretionary contributions to the 401(k) Plan during the three-year period ended December 31, 2013. |
Preferred_Stock_and_Stockholde
Preferred Stock and Stockholders' Equity | 12 Months Ended |
Dec. 31, 2013 | |
Preferred Stock and Stockholders' Equity | ' |
Note 14. Preferred Stock and Stockholders’ Equity | |
Common Stock | |
We are authorized to issue 100,000,000 shares of common stock as of both December 31, 2013 and 2013. We have reserved 5,892,670 shares at December 31, 2013 and 2012, for the issuance of common stock upon the exercise of outstanding stock options. | |
On September 16, 2013, we completed a registered equity offering, issuing 3,542,470 new shares of our common stock at $21.25 per share in exchange for total consideration of $75,277. We received proceeds from the offering, net of the underwriting discount and expenses, of $70,580. | |
Preferred Stock | |
Prior to the initial public offering, Sagent Holding was authorized to issue 113,000,000 shares of Series A preferred stock (“Series A preferred”), 7,000,000 shares of Series B preferred stock (“Series B preferred”) and 30,136,052 shares of Series B-1 preferred stock (“Series B-1 preferred” and, with Series A preferred and Series B preferred, collectively, “preferred stock”). | |
The total shares of Series A preferred stock that were issued at December 31, 2010 was 113,000,000, all at $1.00 per share. In March 2010, Sagent Holding issued 7,000,000 Series B preferred shares for $1.40 per share. In April and August 2010, Sagent Holding issued a total of 25,714,284 Series B-1 preferred shares for $1.40 per share. | |
In connection with our IPO and concurrent with our Reincorporation in Delaware, the holders of Sagent Holding preferred stock exchanged each of their outstanding shares of preferred stock for 0.12759 shares of our common stock. | |
Following the initial public offering, we were authorized to issue 5,000,000 shares of preferred stock. No preferred stock was issued or outstanding at December 31, 2013. | |
Voting Rights | |
The holders of our common stock are entitled to one vote for each share held of record upon such matters and in such manner as may be provided by law. Prior to our IPO, each holder of Series A and B preferred stock was entitled to the number of votes equal to the number of shares of common stock into which such shares could be converted as of the record date. Each holder of Series A and B preferred stock was entitled to vote on all matters on which common stockholders shall be entitled to vote. Each holder of Series A and B preferred stock was entitled to receive notice of all stockholders’ meetings within the same time frame and in the same manner as notice given to all stockholders entitled to vote. | |
Dividends | |
We accrue dividends when, and if, declared by our Board of Directors (the “Board”). We have never declared a dividend on any class of stock. | |
Liquidation | |
In the event of a liquidation, dissolution, or wind up, each holder of Series A and B preferred stock was entitled to a preferential payment in the amount of the redemption value thereof. The redemption value was equal to the liquidation value of the Series A and B preferred stock; $1.00 and $1.40, respectively, plus all accumulated and unpaid dividends. The holders of our common stock are entitled to share ratably in all assets remaining after payment of liabilities and liquidation preferences of any outstanding shares of preferred stock. Holders of our common stock have no preemptive rights or rights to convert their common stock into any other securities. | |
Conversion | |
The shares of Series A and B preferred stock were each convertible into an equal number of shares of common stock, at any time, at the option of the holder. | |
Redemption | |
According to Sagent Holding’s Sixth Amended and Restated Articles of Association, Sagent Holdings preferred stock was capable of being redeemed by us at such price and on all such other terms as the Board of Directors may determine. This redemption feature was deemed not to be in our control with respect to Sagent Holdings preferred stock, and, therefore, Sagent Holdings preferred stock was reported as temporary equity in the consolidated balance sheets. | |
Preferred Stock Warrants | |
In connection with the issuance of our Series B-1 preferred stock, Sagent Holding issued 2,380,952 Series B-1 preferred stock warrants at $2.10 and 2,040,816 Series B-1 stock warrants at $2.45, all of which were immediately exercisable and expired at the earlier of (i) four years from issuance, (ii) the acquisition of Sagent by another entity, subject to certain conditions or (iii) immediately prior to the closing of our first firm commitment underwritten public offering pursuant to an effective registration statement. | |
Each warrant entitled its owner to purchase Series B-1 shares or shares of the class and series of Preferred Shares issued by Sagent Holding to investors in a subsequent financing, subject to the terms and conditions of the warrant agreement. The warrant holders were not entitled to vote, to receive dividends or to exercise any of the rights of common or preferred shareholders for any purpose until such warrants have been duly exercised. | |
The fair value of these warrants was recorded on the balance sheet at issuance and marked to market at each balance sheet date. The change in the fair value of the warrants was recorded in the consolidated statement of operations. Upon the expiry or exercise of the warrants immediately prior to the Company’s initial public offering, the then carrying value of the warrants were adjusted against equity. On April 26, 2011, the holder of our preferred stock warrants exercised all of the warrants concurrent with our IPO, acquiring 454,500 shares of our common stock having a fair value at the IPO of $7,272, for $5,001 of cash. |
Accumulated_comprehensive_inco
Accumulated comprehensive income (loss) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Accumulated comprehensive income (loss) | ' | ||||||||||||
Note 15. Accumulated comprehensive income (loss) | |||||||||||||
Accumulated comprehensive income (loss) at December 31, 2013, 2012 and 2011 is comprised of the following: | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Currency translation adjustment, net of tax | $ | 496 | $ | 2,488 | $ | 2,251 | |||||||
Unrealized gain (loss) on available for sale securities, net of tax | (9 | ) | 12 | (89 | ) | ||||||||
$ | 487 | $ | 2,500 | $ | 2,162 | ||||||||
The following table summarizes the changes in balances of each component of accumulated other comprehensive income, net of tax as of December 31, 2013. | |||||||||||||
Currency | Unrealized gains | Total | |||||||||||
translation | (losses) on | ||||||||||||
adjustment | available for sale | ||||||||||||
securities | |||||||||||||
Balance as of December 31, 2012 | $ | 2,488 | $ | 12 | $ | 2,500 | |||||||
Other comprehensive income (loss) before reclassifications | 790 | (21 | ) | 769 | |||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | (2,782 | ) | — | (2,782 | ) | ||||||||
Net current-period other comprehensive loss | (1,992 | ) | (21 | ) | (2,013 | ) | |||||||
Balance as of December 31, 2013 | $ | 496 | $ | (9 | ) | $ | 487 | ||||||
No amounts were reclassified out of accumulated other comprehensive income for the years ended December 31, 2012 or 2011. The table below presents the amounts reclassified out of each component of accumulated other comprehensive income for the year ended December 31, 2013. | |||||||||||||
Type of reclassification | Amount | Affected line item in the condensed | |||||||||||
reclassified from | consolidated statement of operations | ||||||||||||
accumulated other | |||||||||||||
comprehensive | |||||||||||||
income | |||||||||||||
Currency translation adjustment – reclassification of cumulative currency translation gain | $ | 2,782 | Gain on previously held equity interest | ||||||||||
Total reclassification for the year ended December 31, 2013, net of tax | $ | 2,782 | |||||||||||
Earnings_per_share
Earnings per share | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Earnings per share | ' | ||||||||||||
Note 16. Earnings per share | |||||||||||||
Basic earnings per share is computed by dividing income available to common shareholders by the weighted average number of common shares outstanding for the period. Because of their anti-dilutive effect, 1,194,717, 2,280,106 and 2,151,135 of common share equivalents, comprised of restricted stock and unexercised stock options, have been excluded from the diluted earnings per share calculation for the years ended December 31, 2013, 2012 and 2011, respectively. The table below presents the computation of basic and diluted earnings per share for the years ended December 31, 2013, 2012 and 2011. | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Basic and dilutive numerator | |||||||||||||
Net income (loss), as reported | $ | 29,594 | $ | (16,817 | ) | $ | (26,422 | ) | |||||
Denominator | |||||||||||||
Weighted average common shares outstanding – basic (in thousands) | 29,213 | 27,980 | 20,105 | ||||||||||
Net effect of dilutive securities | |||||||||||||
Stock options and restricted stock | 724 | — | — | ||||||||||
Weighted average common shares outstanding – diluted (in thousands) | 29,937 | 27,980 | 20,105 | ||||||||||
Net income (loss) per common share (basic) | $ | 1.01 | $ | (0.60 | ) | $ | (1.31 | ) | |||||
Net income (loss) per common share (diluted) | $ | 0.99 | $ | (0.60 | ) | $ | (1.31 | ) | |||||
StockBased_Compensation
Stock-Based Compensation | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Stock-Based Compensation | ' | ||||||||||||||||||||
Note 17. Stock-Based Compensation | |||||||||||||||||||||
Prior to the initial public offering, we had a stock plan, the 2007 Global Share Plan (the “2007 Plan”), for key employees and nonemployees, which provided for the grant of nonqualified and incentive stock options and/or shares of restricted stock, deferred stock, and other equity awards in our common stock. Concurrent with the initial public offering, our Board adopted the 2011 Incentive Compensation Plan (the “2011 Plan”, with the 2007 Plan, the “Plans”), for employees and nonemployees, which provides for the grant of nonqualified and incentive stock options and/or shares of restricted stock, deferred stock and other equity awards in our common stock. The Board administers the Plans. A total of 2,475,184 and 4,000,000 shares are authorized under the 2007 Plan and 2011 Plan, respectively, as of December 31, 2013. At December 31, 2013, we had 413,036 shares of common stock available for grant under the 2007 Plan and 2,600,488 shares of common stock available for grant under the 2011 Plan. | |||||||||||||||||||||
Stock options, exercisable for shares of our common stock, generally vest over a four-year period from the grant date and expire ten years from the grant date. The strike price of the options granted under the 2007 Plan is established at or above the fair value of our stock as of the grant date. The strike price of stock options granted under the 2011 Plan is established as the closing price of our stock on the business day prior to the grant date. | |||||||||||||||||||||
In 2010, the Board approved an amendment to the 2007 Plan which permits employees to exercise their stock options prior to vesting. Once purchased, we have the right to repurchase unvested stock from the employee upon termination of their services. The repurchase price is equal to the original exercise price of the option. | |||||||||||||||||||||
Restricted Stock | |||||||||||||||||||||
The Company measures the fair value of the restricted stock on the date of grant based on the estimated fair value of the common stock on that day. The fair value is amortized to stock-based compensation expense, net of estimated forfeitures, ratably over the vesting period. As of December 31, 2013, the total amount of unrecognized stock-based compensation related to grants of restricted stock was approximately $1,257. The Company expects to recognize this expense over an average period of approximately 33 months. The following table summarizes restricted stock activity during the year ended December 31, 2013: | |||||||||||||||||||||
Restricted | Weighted-Average | ||||||||||||||||||||
stock | Grant Date Fair | ||||||||||||||||||||
Value | |||||||||||||||||||||
Balance at January 1, 2013 | 50,039 | $ | 19.93 | ||||||||||||||||||
Granted | 56,224 | 16.65 | |||||||||||||||||||
Vested | (9,677 | ) | 14.92 | ||||||||||||||||||
Forfeited | (7,378 | ) | 9.31 | ||||||||||||||||||
Balance at December 31, 2013 | 89,208 | $ | 18.64 | ||||||||||||||||||
Stock options – Valuation Information | |||||||||||||||||||||
We estimate the value of stock options on the date of grant using a Black-Scholes option pricing model. The risk-free rate of interest for the average contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. The dividend yield is zero as we have not paid nor do we anticipate paying any dividends. For service-based awards, we used the “simplified method” described in Staff Accounting Bulletin (“SAB”) Topic 14, Share-Based Payment, where the expected term of awards granted is based on the midpoint between the vesting date and the end of the contractual term, as we do not have sufficient historical exercise data to provide a reasonable basis upon which to estimate expected term. For performance-based awards, we determine the expected term based on the anticipated achievement and exercise pattern of the underlying options. Our expected volatility is based on a weighted average of the historical volatility of similar companies’ stock and the historical volatility of our stock since our IPO. The weighted-average estimated values of employee stock option grants and rights granted under the Plans as well as the weighted-average assumptions that were used in calculating such values during the last three years were based on estimates at the date of grant as follows: | |||||||||||||||||||||
Risk free | Expected life | Expected | Expected | Fair value at | |||||||||||||||||
interest rate | dividend yield | volatility | grant date | ||||||||||||||||||
2013 | 1.24 | % | 6 years | 0 | % | 62 | % | $ | 9.31 | ||||||||||||
2012 | 1.05 | % | 6 years | 0 | % | 61 | % | $ | 10.67 | ||||||||||||
2011 | 1.47 | % | 6 years | 0 | % | 61 | % | $ | 11.15 | ||||||||||||
Stock options outstanding that have vested and are expected to vest as of December 31, 2013, were as follows: | |||||||||||||||||||||
Number of | Weighted-Average | Weighted-Average | Aggregate | ||||||||||||||||||
shares | Exercise Price | Remaining | Intrinsic | ||||||||||||||||||
Contractual Term | Value(1) | ||||||||||||||||||||
Vested | 1,450,992 | $ | 10.75 | 6.5 | $ | 21,242 | |||||||||||||||
Expected to vest | 1,010,168 | $ | 17.67 | 8.3 | 7,805 | ||||||||||||||||
Total | 2,461,160 | $ | 13.59 | 7.2 | $ | 29,047 | |||||||||||||||
(1) | The Aggregate Intrinsic Value amounts represent the difference between the exercise price and $25.38, the fair value of our stock on December 31, 2013, for in-the-money options. | ||||||||||||||||||||
Stock Option Activity | |||||||||||||||||||||
The following table sets forth stock option activity for the year ended December 31, 2013: | |||||||||||||||||||||
Options Outstanding | Exercisable Options | ||||||||||||||||||||
Number of | Weighted-Average | Number of shares | Weighted-Average | ||||||||||||||||||
shares | Exercise Price | Exercise Price | |||||||||||||||||||
Outstanding at January 1, 2013 | 2,236,128 | $ | 12.62 | 982,179 | $ | 7.6 | |||||||||||||||
Granted | 399,774 | $ | 17.08 | — | |||||||||||||||||
Exercised | (120,712 | ) | $ | 6.25 | — | ||||||||||||||||
Forfeited | (54,040 | ) | $ | 15.57 | — | ||||||||||||||||
Outstanding at December 31, 2013 | 2,461,160 | $ | 13.59 | 1,450,992 | $ | 10.75 | |||||||||||||||
As of December 31, 2011, the weighted-average remaining contractual lives of options outstanding and options exercisable were 8.5 years and 7.4 years, respectively. As of December 31, 2012, the weighted-average remaining contractual lives of options outstanding and options exercisable were 7.8 years and 6.9 years, respectively. As of December 31, 2013, the weighted-average remaining contractual lives of options outstanding and options exercisable were 7.2 years and 6.5 years, respectively | |||||||||||||||||||||
The total intrinsic value of options exercised in 2013, 2012 and 2011 was $1,860, $2,210 and $2,100, respectively. The total fair value of options vested was approximately $5,036, $3,388 and $2,476 in 2013, 2012 and 2011, respectively. As of December 31, 2013, there was $6,903 of unrecognized stock-based compensation expense related to unvested stock options, which will be recognized over a weighted-average period of 2.3 years. |
Net_Revenue_by_Product
Net Revenue by Product | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Net Revenue by Product | ' | ||||||||||||
Note 18. Net Revenue by Product | |||||||||||||
Net revenue by product category is as follows: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Therapeutic Class | |||||||||||||
Anti-Infective | $ | 90,604 | $ | 81,923 | $ | 63,476 | |||||||
Critical Care | 65,612 | 71,683 | 54,489 | ||||||||||
Oncology | 88,534 | 30,009 | 34,440 | ||||||||||
Total | $ | 244,750 | $ | 183,615 | $ | 152,405 | |||||||
Geographic_Data
Geographic Data | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Geographic Data | ' | ||||||||||||
Note 19. Geographic Data: | |||||||||||||
Geographic data for net revenue and long-lived assets were: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Net revenue: | |||||||||||||
United States | $ | 244,272 | $ | 183,615 | $ | 152,405 | |||||||
Others | 478 | — | — | ||||||||||
Total | $ | 244,750 | $ | 183,615 | $ | 152,405 | |||||||
2013 | 2012 | 2011 | |||||||||||
Long-lived assets: | |||||||||||||
United States | $ | 17,401 | $ | 25,047 | $ | 29,662 | |||||||
China | 57,016 | — | — | ||||||||||
Total | $ | 74,417 | $ | 25,047 | $ | 29,662 | |||||||
Management_reorganization
Management reorganization | 12 Months Ended |
Dec. 31, 2013 | |
Management reorganization | ' |
Note 20. Management reorganization: | |
In August 2012, we completed a reorganization of our executive management team in which we eliminated certain positions within the Company. Costs associated with the reorganization, primarily severance related charges, are reflected in the management reorganization caption in the consolidated statements of operations for the year ended December 31, 2012. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Taxes | ' | ||||||||||||
Note 21. Income Taxes: | |||||||||||||
Components of income (loss) before income taxes are as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Domestic | $ | 36,671 | $ | (16,817 | ) | $ | (24,066 | ) | |||||
Foreign | (6,182 | ) | — | (2,356 | ) | ||||||||
Income (loss) before income taxes | $ | 30,489 | $ | (16,817 | ) | $ | (26,422 | ) | |||||
Deferred income tax assets and liabilities are determined based on differences between financial reporting and tax bases of assets and liabilities and net operating loss and other tax credit carryforwards. These items are measured using the enacted tax rates applicable to the period when the differences are expected to reverse. We record a valuation allowance to reduce the deferred income tax assets to the amount that is more likely than not to be realized. | |||||||||||||
We have generated tax losses since incorporation and do not believe that it is more likely than not that the losses and other deferred tax assets will be utilized. As such, we have recorded a full valuation allowance against our deferred tax assets. A summary of our net operating loss carryforwards, including the timing of expiry, is as follows: | |||||||||||||
Year of Expiry | Net Operating | ||||||||||||
Loss | |||||||||||||
Carryforwards | |||||||||||||
2030 | 16,967 | ||||||||||||
2031 | 13,256 | ||||||||||||
2032 | 8,674 | ||||||||||||
Total | $ | 38,897 | |||||||||||
Additional carryforwards of $27,678, principally related to our China subsidiary, will expire between 2014 and 2018. Net operating losses and carryforwards are available for use against our consolidated federal taxable income. | |||||||||||||
The following is a reconciliation of our income tax provision (benefit) computed at the U.S. federal statutory rate to the income tax provision (benefit) reported in the consolidated statements of operations: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Provision (benefit) at statutory rate | $ | 10,366 | $ | (5,718 | ) | $ | (8,983 | ) | |||||
State income taxes, net of federal income tax | 230 | (37 | ) | (236 | ) | ||||||||
Foreign rate differential | 560 | — | 801 | ||||||||||
Valuation allowance | (9,998 | ) | 4,561 | 7,799 | |||||||||
Permanent book / tax differences | (263 | ) | 1,194 | 619 | |||||||||
Provision for income taxes | $ | 895 | $ | — | $ | — | |||||||
Of the total 2013 provision for income taxes, $707 related to the fourth quarter correction of AMT expense that was not recorded during the first three quarters of 2013. | |||||||||||||
The tax effects of temporary differences giving rise to deferred income tax assets and liabilities were: | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Deferred tax assets: | |||||||||||||
Product development and start-up costs | $ | 12,039 | $ | 10,142 | |||||||||
Inventory | 2,652 | 2,000 | |||||||||||
Loss and credit carryforwards | 21,521 | 30,233 | |||||||||||
Bad debt reserves | 8 | 400 | |||||||||||
Accrued expenses / other | 3,210 | 2,487 | |||||||||||
Deferred compensation | 2,281 | 1,512 | |||||||||||
Alternative minimum tax carryforwards | 895 | — | |||||||||||
Total deferred tax assets | $ | 42,606 | $ | 46,774 | |||||||||
Deferred tax liabilities: | |||||||||||||
Depreciation | $ | (497 | ) | $ | (117 | ) | |||||||
Total deferred tax liabilities | (497 | ) | (117 | ) | |||||||||
Net deferred tax asset | 42,109 | 46,657 | |||||||||||
Valuation allowance | (42,109 | ) | (46,657 | ) | |||||||||
Net deferred tax assets (liabilities) | $ | — | $ | — | |||||||||
Our loss and credit carryforwards include $940 of windfall tax benefits that would reverse to accumulated paid-in-capital upon realization. | |||||||||||||
We classify uncertain tax positions as noncurrent income tax liabilities unless expected to be paid within one year. Classification of net deferred tax assets (liabilities) on the consolidated balance sheets is as follows: | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Current assets | $ | 6 | $ | 6 | |||||||||
Noncurrent liabilities | (6 | ) | (6 | ) | |||||||||
Net deferred tax assets (liabilities) | $ | — | $ | — | |||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Commitments and Contingencies | ' | ||||
Note 22. Commitments and Contingencies | |||||
Product Development Agreements | |||||
We have entered into various business agreements for the development and marketing of finished dosage form pharmaceutical products, including (i) development and supply agreements, some of which contain contingent milestone payments, as well as (ii) straight-supply agreements, which may contain minimum purchase commitments. | |||||
These agreements may include future payment commitments for contingent milestone payments. We will be responsible for contingent milestone payments based upon the occurrence of future events. Each agreement defines the triggering event of its future payment schedule, such as meeting development progress timelines, successful product testing and validation, successful clinical studies, various FDA and other regulatory approvals, and other factors as negotiated in each case. | |||||
We have entered into significant development, marketing, and supply agreements with A.C.S. Dobfar S.p.a. (“Dobfar”), A.C.S. Dobfar SA-Switzerland (“Info”), Gland Pharma Limited (“Gland”), and Actavis, an international pharmaceutical company. Key terms of these agreements are set forth below. | |||||
Dobfar | |||||
Pursuant to a manufacture and supply agreement with Dobfar and its distributor, WorldGen LLC (“WorldGen”), Dobfar develops, manufactures and supplies us with presentations of cefepime through WorldGen. We have agreed to pay WorldGen the transfer price for each unit of cefepime provided under the agreement. | |||||
Under a manufacture and supply agreement with Info, Info develops, manufactures, and supplies us with presentations of levofloxacin in premix bags. We have agreed to pay a transfer price for each unit of levofloxacin supplied, plus a percentage of the net profit from the sales of levofloxacin in premix bags. In addition, we have agreed to share with Info the cost of development activities equally. The initial term of the agreement expires on July 7, 2016, after which we have the option to renew the agreement for successive additional two year terms unless Info provides notice of its intent to terminate the agreement at least two years prior to its initial expiration date or the expiration date of a renewal term. | |||||
The current renewal term of the cefepime agreement expires on April 1, 2015, after which we have the option to renew the agreement for successive additional one-year terms unless Dobfar provides notice of its intent to terminate the agreement at least six months prior to the expiration of a renewal term. In addition, we also have supply agreements or other purchase commitments with Dobfar and/or WorldGen covering six currently marketed products – ampicillin, ampicillin sulbactam, cefazolin, cefoxitin, ceftazadime and ceftriaxone – and, with Info, covering three currently marketed products – ciprofloxacin, fluconazole, and zoledronic acid bags, in both 4mg and 5mg presentations, and additional products currently under development. | |||||
Gland | |||||
Pursuant to our development and supply agreement with Gland, we jointly developed our heparin products with Gland, and Gland agreed to supply us heparin for sale in the U.S. market. In addition, we have agreed to use Gland as our exclusive supplier for heparin and Gland has agreed not to, directly or indirectly, sell heparin to any other person or entity that markets or makes use of or sells heparin in the U.S., subject to certain exceptions. | |||||
We have agreed to pay a transfer price for each unit of heparin supplied under the agreement, plus a percentage of the net profit from the sales of heparin. In addition, each party has agreed to share the cost of development activities equally up to a specified amount. | |||||
The initial term of the agreement expires in June 2016, after which, unless a third party has rights to market heparin in the U.S. as a result of our discontinuing active sales of heparin there, the agreement automatically renews for consecutive periods of one year unless either party provides notice of its intent to terminate the agreement at least 24 months prior to the desired date of termination. | |||||
In addition, we also have other supply agreements with Gland covering four currently marketed products, adenosine, amiodarone, ondansetron and vancomycin, and additional products currently under initial development. | |||||
Actavis | |||||
In April 2009, we entered into a development, manufacturing and supply agreement with Actavis. Under the terms of this agreement, we became the exclusive U.S. marketing partner under certain conditions for a portfolio of six specialty injectable products developed and manufactured by Actavis under its ANDAs. In February 2010, this agreement was amended to include two additional products. Pursuant to this agreement, Actavis will supply these products to us at a specified transfer price and will receive a specified percentage of the net profit from sales of such products. In March 2013, we agreed to with Actavis to terminate the development, manufacturing and supply agreement, effective December 31, 2014. As consideration for the termination of the agreement, we will receive a greater percentage of the net profit from sales of products during the remaining term of the agreement and a one-time payment of $5,000. As of December 31, 2013, this agreement with Actavis covered ten marketed products. | |||||
The table below summarizes our estimate for contingent potential milestone payments and fees for the year ended December 31, 2013 and beyond assuming all contingent milestone payments occur. These payments do not include sales-based royalty payments, which are dependent on the introduction of new products. As new products are launched, sales-based royalty payments are recognized as an element of cost of goods sold in the consolidated statements of operations. | |||||
Contingent milestone payments are as follows at December 31, 2013: | |||||
2014 | 18,805 | ||||
2015 | 7,528 | ||||
2016 | 2,293 | ||||
2017 | 3,227 | ||||
2018 | 204 | ||||
Thereafter | — | ||||
Total | $ | 32,057 | |||
Leases | |||||
We have entered into various operating lease agreements for office space, communications, information technology equipment and software, and office equipment. Total rental expense amounted to $431, $467 and $422 for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||
As of December 31, 2013, total future annual minimum lease payments related to noncancelable operating leases are as follows: | |||||
2014 | 297 | ||||
2015 | 306 | ||||
2016 | 315 | ||||
Total | $ | 918 | |||
Regulatory Matters | |||||
We are subject to regulatory oversight by the FDA and other regulatory authorities with respect to the development, manufacturing and sale of our products. Failure to comply with regulatory requirements could have a significant adverse effect on our business and operations. | |||||
Litigation | |||||
From time to time, we are subject to claims and litigation arising in the ordinary course of business. These claims may include assertions that our products infringe existing patents and claims that the use of our products has caused personal injuries. We intend to vigorously defend any such litigation that may arise under all defenses that would be available to us. Currently, we are party to the following claim. | |||||
Zoledronic Acid (Generic versions of Zometa® and Reclast®). On February 20, 2013, Novartis Pharmaceuticals Corporation (“Novartis”) sued the Company and several other defendants in the United States District Court for the District of New Jersey, alleging, among other things, that sales of the Company’s (i) zoledronic acid premix bag (4mg/100ml), made by ACS Dobfar Info S.A. (“Info”), also a defendant, a generic version of Novartis’ Zometa® ready to use bottle, would infringe U.S. Patent No. 7,932,241 (the “241 Patent”) and U.S. Patent No. 8,324,189 (the “189 Patent”) and (ii) zoledronic acid premix bag (5mg/100ml), also made by Info, a generic version of Novartis’ Reclast® ready to use bottle, would infringe U.S. Patent No. 8,052,987 and the 241 Patent, and (iii) zoledronic acid vial (4mg/5ml), made by Actavis LLC, also a defendant, a generic version of Novartis’ Zometa® vial, would infringe the 189 Patent. (Novartis Pharmaceuticals Corporation v. Actavis, LLC, et. al., Case No. 13-cv-1028) On March 1, 2013, the District Court denied Novartis’ request for a temporary restraining order against the Company and the other defendants, including Actavis and Info. On March 6, 2013, the Company, began selling Actavis’ zoledronic acid vial, the generic version of Zometa®. Also, as of August 27, 2013 and October 1, 2013, the Company began selling zoledronic acid premix bags in 4mg/100ml and 5mg/100ml presentations, respectively. The Company believes it has substantial meritorious defenses to the case, and the Company has sold and will continue to sell these products. While an estimate of the potential loss resulting from an adverse final determination that one of the patents in suit is valid and infringed cannot currently be made as specific monetary damages have not been asserted, an adverse final determination could have a material adverse effect on the Company’s business, results of operations, financial condition and cash flows. | |||||
At this time, there are no other proceedings of which we are aware that are considered likely to have a material adverse effect on the consolidated financial position or results of operations. | |||||
Related_party_transactions
Related party transactions | 12 Months Ended |
Dec. 31, 2013 | |
Related party transactions | ' |
Note 23. Related party transactions: | |
As of December 31, 2013 and 2012, respectively, we had a receivable of $3,644 and $1,404 from Sagent Agila LLC, which is expected to offset future profit-sharing payments. These amounts are included within due from related party on the consolidated balance sheet. As of December 31, 2013 and 2012, respectively, we had a payable of $3,129 and $7,026 to Sagent Agila LLC, principally for the acquisition of inventory and amounts due under profit-sharing arrangements. During the years ended December 31, 2013 and 2012, Sagent Agila LLC distributed $8,635 and $10,310 to its joint venture partners. As the Sagent Agila joint venture was in a cumulative loss position during 2011, our share of the 2011 distribution was treated as a return of capital in the consolidated statement of cash flows. | |
Quarterly_Financial_Data_Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Quarterly Financial Data (Unaudited) | ' | ||||||||||||||||
Note 24. Quarterly Financial Data (Unaudited) | |||||||||||||||||
2013 Quarters | |||||||||||||||||
First | Second | Third | Fourth | ||||||||||||||
Net revenue | $ | 60,211 | $ | 59,591 | $ | 60,842 | $ | 64,106 | |||||||||
Gross profit | $ | 18,458 | $ | 23,218 | $ | 18,587 | $ | 17,259 | |||||||||
Income from continuing operations | $ | 9,887 | $ | 13,434 | $ | 3,101 | $ | 4,958 | |||||||||
Net income | $ | 9,838 | $ | 13,370 | $ | 2,826 | $ | 3,560 | |||||||||
Weighted-average shares used to compute net income per share | |||||||||||||||||
Basic | 28,135 | 28,163 | 28,745 | 31,776 | |||||||||||||
Diluted | 28,746 | 28,828 | 29,568 | 32,609 | |||||||||||||
Net income per share | |||||||||||||||||
Basic | $ | 0.35 | $ | 0.47 | $ | 0.1 | $ | 0.11 | |||||||||
Diluted | $ | 0.34 | $ | 0.46 | $ | 0.1 | $ | 0.11 | |||||||||
2012 Quarters | |||||||||||||||||
First | Second | Third | Fourth | ||||||||||||||
Net revenue | $ | 38,280 | $ | 42,680 | $ | 49,429 | $ | 53,226 | |||||||||
Gross profit | $ | 5,762 | $ | 6,506 | $ | 7,221 | $ | 11,618 | |||||||||
Loss from continuing operations | $ | (6,952 | ) | $ | (4,740 | ) | $ | (3,758 | ) | $ | (43 | ) | |||||
Net loss | $ | (8,289 | ) | $ | (4,716 | ) | $ | (3,750 | ) | $ | (62 | ) | |||||
Weighted-average shares used to compute net loss per share | |||||||||||||||||
Basic | 27,915 | 27,936 | 27,977 | 28,092 | |||||||||||||
Diluted | 27,915 | 27,936 | 27,977 | 28,092 | |||||||||||||
Net income per share | |||||||||||||||||
Basic | $ | (0.30 | ) | $ | (0.17 | ) | $ | (0.13 | ) | $ | (0.00 | ) | |||||
Diluted | $ | (0.30 | ) | $ | (0.17 | ) | $ | (0.13 | ) | $ | (0.00 | ) |
Valuation_and_Qualifying_Accou
Valuation and Qualifying Accounts | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Valuation and Qualifying Accounts | ' | ||||||||||||||||||||
Sagent Pharmaceuticals, Inc. | |||||||||||||||||||||
Valuation and Qualifying Accounts | |||||||||||||||||||||
For the years ended December 31, 2013, 2012 and 2011 | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Col. A | Col. B | Col. C | Col. D | Col. E | |||||||||||||||||
Description | Balance at | Charged to | Charged to | Deductions | Balance at | ||||||||||||||||
Beginning | Costs and | Other | End of | ||||||||||||||||||
of Period | Expenses | Accounts | Period | ||||||||||||||||||
Chargeback Allowance | |||||||||||||||||||||
Year ended December 31, 2013 | $ | 24,265 | $ | 300,835 | $ | — | $ | 281,418 | $ | 43,682 | |||||||||||
Year ended December 31, 2012 | $ | 28,932 | $ | 166,051 | $ | — | $ | 170,718 | $ | 24,265 | |||||||||||
Year ended December 31, 2011 | $ | 13,507 | $ | 167,521 | $ | — | $ | 152,096 | $ | 28,932 | |||||||||||
Allowance for Cash Discounts | |||||||||||||||||||||
Year ended December 31, 2013 | $ | 1,373 | $ | 12,204 | $ | — | $ | 11,163 | $ | 2,414 | |||||||||||
Year ended December 31, 2012 | $ | 1,804 | $ | 7,665 | $ | — | $ | 8,096 | $ | 1,373 | |||||||||||
Year ended December 31, 2011 | $ | 701 | $ | 8,188 | $ | — | $ | 7,085 | $ | 1,804 | |||||||||||
Allowance for Credits | |||||||||||||||||||||
Year ended December 31, 2013 | $ | 3,262 | $ | 6,760 | $ | — | $ | 5,127 | $ | 4,895 | |||||||||||
Year ended December 31, 2012 | $ | 1,940 | $ | 3,539 | $ | — | $ | 2,217 | $ | 3,262 | |||||||||||
Year ended December 31, 2011 | $ | 1,880 | $ | 1,458 | $ | — | $ | 1,398 | $ | 1,940 | |||||||||||
Deferred Tax Valuation Allowance | |||||||||||||||||||||
Year ended December 31, 2013 | $ | 46,657 | $ | 1,158 | $ | 5,843 | $ | 11,549 | $ | 42,109 | |||||||||||
Year ended December 31, 2012 | $ | 40,816 | $ | 5,841 | $ | — | $ | — | $ | 46,657 | |||||||||||
Year ended December 31, 2011 | $ | 32,937 | $ | 7,879 | $ | — | $ | — | $ | 40,816 | |||||||||||
Inventory Reserve Allowance | |||||||||||||||||||||
Year ended December 31, 2013 | $ | 2,021 | $ | 3,078 | $ | — | $ | — | $ | 5,099 | |||||||||||
Year ended December 31, 2012 | $ | 6,443 | $ | — | $ | — | $ | 4,422 | $ | 2,021 | |||||||||||
Year ended December 31, 2011 | $ | 846 | $ | 5,597 | $ | — | $ | — | $ | 6,443 | |||||||||||
Allowance for doubtful accounts | |||||||||||||||||||||
Year ended December 31, 2013 | $ | 124 | $ | — | $ | — | $ | 101 | $ | 23 | |||||||||||
Year ended December 31, 2012 | $ | — | $ | 124 | $ | — | $ | — | $ | 124 | |||||||||||
Year ended December 31, 2011 | $ | — | $ | — | $ | — | $ | — | $ | — |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||
Dec. 31, 2013 | |||
Nature of Operations | ' | ||
Nature of Operations | |||
Sagent Pharmaceuticals, Inc. (“Sagent”, “we”, “us” or “our”) is a specialty pharmaceutical company that develops, sources, manufactures and markets pharmaceutical products, principally injectable-based generic equivalents to branded products. We completed our initial public offering (“IPO”) on April 26, 2011. In connection with our IPO, we incorporated (the “Reincorporation”) in Delaware as Sagent Pharmaceuticals, Inc. Prior to the Reincorporation, we were a Cayman Islands company, and our corporate name was Sagent Holding Co. (“Sagent Holding”). Our products are typically sold to pharmaceutical wholesale companies which then distribute the products to end-user hospitals, long-term care facilities, alternate care sites, and clinics. The injectable pharmaceutical marketplace is comprised of end users who have relationships with group purchasing organizations (GPOs) or specialty distributors that focus on a particular therapeutic class. GPOs enter into product purchasing agreements with Sagent and other pharmaceutical suppliers for products in an effort to secure favorable drug pricing on behalf of their end-user members. | |||
We are organized as a single reportable segment comprised of operations which develop, source, manufacture and market generic injectable products for sale in the United States, deriving a significant portion of our revenues from a single class of pharmaceutical wholesale customers within the United States. | |||
Basis of Presentation | ' | ||
Basis of Presentation | |||
The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP). | |||
The consolidated financial statements include the assets, liabilities, and results of operations of Sagent Pharmaceuticals, Inc. and its wholly-owned subsidiaries. Intercompany balances and transactions have been eliminated in consolidation. | |||
On June 4, 2013, we acquired the remaining 50% equity interest in Kanghong Sagent (Chengdu) Pharmaceutical Co. Ltd. (“KSCP”) from our former joint venture partner (the “SCP Acquisition”), and accordingly, the consolidated financial statements since that date include KSCP as a wholly-owned subsidiary. Prior to the SCP Acquisition, we accounted for our investment in KSCP using the equity method of accounting, as our interest in the entity provided for joint financial and operational control, and operating results of KSCP were reported on a one-month lag. In August 2013, we formally changed the name of this entity to Sagent (China) Pharmaceuticals Co., Ltd. (“SCP”). | |||
Sagent Agila LLC (“Sagent Agila”) is a joint venture incorporated in Wyoming with Strides Inc., a wholly-owned subsidiary of Strides Arcolab International Limited (“Strides”), established in January 2007 with the principal business of development, manufacturing, marketing, distribution and sale of generic pharmaceutical products to the U.S. market. In December 2013, Mylan Inc. (“Mylan”) acquired Strides’ Agila Specialities Pvt. Ltd., subsidiary (“Agila”), including Strides’ ownership share of the Sagent Agila joint venture. | |||
We account for our 50% interest in Sagent Agila under the equity method of accounting as our interest in the entity provides for joint financial and operational control. Sagent’s equity in the net income (loss) of Sagent Agila is included in the accompanying consolidated statements of operations as equity in net income (loss) of joint ventures. | |||
Reincorporation | ' | ||
Reincorporation | |||
In connection with our 2011 IPO and concurrent with our Reincorporation in Delaware, the holders of our preferred stock exchanged each of their outstanding shares of preferred stock for 0.12759 shares of our common stock. | |||
Use of Estimates | ' | ||
Use of Estimates | |||
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |||
Foreign Currencies | ' | ||
Foreign Currencies | |||
We translate the results of operations of our foreign subsidiary using average exchange rates during each period, whereas balance sheet accounts are translated using exchange rates at the end of each period. We record currency translation adjustments as a component of equity. Transaction gains and losses are recorded in interest income and other in the statements of operations and were not significant for any of the periods presented. | |||
Fair Value of Financial Instruments | ' | ||
Fair Value of Financial Instruments | |||
The carrying amounts reported in the balance sheets for cash and cash equivalents and other current monetary assets and liabilities approximate fair value because of the immediate or short-term maturity of these financial instruments. | |||
Cash and Cash Equivalents | ' | ||
Cash and Cash Equivalents | |||
We consider all highly liquid money market instruments with an original maturity of three months or less when purchased to be cash equivalents. These amounts are stated at cost, which approximates fair value. At December 31, 2013, cash equivalents were deposited in financial institutions and consisted of immediately available fund balances. The majority of our funds at December 31, 2013 were maintained at two stable financial institutions, each in an amount in excess of federally insured limits. This represents a concentration of credit risk. We have not experienced any losses on our deposits of cash and cash equivalents to date. | |||
Cash collateral pledged under various lease agreements and cash restricted by financing agreements is classified as restricted cash and cash equivalents in the accompanying consolidated balance sheets as our ability to withdraw the funds is contractually limited. | |||
Financial Instruments | ' | ||
Financial Instruments | |||
We consider all highly liquid money market investments with a maturity of three months or less at the date of purchase to be cash equivalents. The fair values of these investments approximate their carrying values. Investments with original maturities of greater than three months and remaining maturities of less than one year are classified as short-term investments. Investments with maturities beyond one year are classified as short-term based on their highly liquid nature and because such marketable securities represent the investment of cash that is available for current operations. All cash equivalents and short-term investments are classified as available-for-sale and realized gains and losses are recorded using the specific identification method. Changes in market value, excluding other-than-temporary impairments, are reflected in other comprehensive income (“OCI”). | |||
Investments are considered to be impaired when a decline in fair value is judged to be other-than-temporary. Fair value is calculated based on publicly available market information or other estimates determined by management. We employ a systematic methodology on a quarterly basis that considers available quantitative and qualitative evidence in evaluating potential impairment of our investments. If the cost of an investment exceeds its fair value, we evaluate, among other factors, general market conditions, credit quality of debt instrument issuers, the duration and extent to which the fair value is less than cost, and for equity securities, our intent and ability to hold, or plans to sell, the investment. For fixed income securities, we also evaluate whether we have plans to sell the security or it is more likely than not that we will be required to sell the security before recovery. We also consider specific adverse conditions related to the financial health of and business outlook for the investee, including industry and sector performance, changes in technology, and operational and financing cash flow factors. Once a decline in fair value is determined to be other-than-temporary, an impairment charge is recorded to other expense and a new cost basis in the investment is established. | |||
Inventories | ' | ||
Inventories | |||
Inventories are stated at the lower of cost (first in, first out) or market value. Inventories consist of products currently approved for marketing and may include certain products pending regulatory approval. From time to time, we capitalize inventory costs associated with products prior to receiving regulatory approval based on our judgment of probable future commercial success and realizable value. Such judgment incorporates management’s knowledge and best judgment of where the product is in the regulatory review process, market conditions, competing products and economic expectations for the product post-approval relative to the risk of manufacturing the product prior to approval. If final regulatory approval for such products is denied or delayed, we may need to reserve for and expense such inventory. | |||
We establish reserves for inventory to reflect situations in which the cost of the inventory is not expected to be recovered. In evaluating whether inventory is stated at the lower of cost or market, management considers such factors as the amount of inventory on hand, estimated time required to sell such inventory, remaining shelf life and current expected market conditions, including level of competition. We record provisions for inventory to cost of goods sold. | |||
Property, Plant, and Equipment | ' | ||
Property, Plant, and Equipment | |||
Property, plant, and equipment is stated at cost, less accumulated depreciation. The cost of repairs and maintenance is expensed when incurred, while expenditures for refurbishments and improvements that significantly add to the productive capacity or extend the useful life of an asset are capitalized. Provisions for depreciation are computed for financial reporting purposes using the straight-line method over the estimated useful life of the related asset and for leasehold improvements over the lesser of the estimated useful life of the related asset or the term of the related lease as follows: | |||
Land and land improvements | Remaining term of Chinese land use right (June 2057) | ||
Building and improvements | 5 to 40 years or remaining term of lease | ||
Machinery, equipment, furniture, and fixtures | 3 to 10 years | ||
Property, plant and equipment that is purchased or constructed which requires a period of time before the assets are ready for their intended use are accounted for as construction-in-progress. Construction-in-progress is recorded at acquisition cost, including installation costs and associated interest costs. Construction-in-progress is transferred to specific property, plant and equipment accounts and commences depreciation when these assets are ready for their intended use. The capitalization of interest costs commences when expenditures for the asset have been made, activities that are necessary to prepare the asset for its intended use are in progress and interest cost is being incurred. The capitalization period ends when the asset is substantially complete and ready for its intended use. | |||
Deferred Financing Costs | ' | ||
Deferred Financing Costs | |||
Deferred financing costs related to the issuance of debt are amortized using the straight-line method over the term of the related debt instrument, which approximates the effective interest method. We capitalized deferred financing costs of $28 and $284 in 2013 and 2012, respectively, related to our SVB revolving loan facility and our former senior secured revolving credit facility and term loan credit facility. Deferred financing costs are recorded within Other Assets on our consolidated balance sheets, and totaled $206 and $268 at December 31, 2013 and 2012, respectively. | |||
Impairment of Long-Lived Assets | ' | ||
Impairment of Long-Lived Assets | |||
We evaluate long-lived assets, including intangible assets with definite lives, for impairment whenever events or other changes in circumstances indicate that the carrying value of an asset may no longer be recoverable. An evaluation of recoverability is performed by comparing the carrying values of the assets to projected future undiscounted cash flows, in addition to other quantitative and qualitative analyses. Judgments made by management related to the expected useful lives of long-lived assets and the ability to realize undiscounted cash flows in excess of the carrying amounts of such assets are affected by factors such as changes in economic conditions and changes in operating performance. Upon indication that the carrying values of such assets may not be recoverable, we recognize an impairment loss as a charge against current operations. We recorded an impairment charge within cost of sales of $44 related to one product license right in the year ended December 31, 2013. No impairment charges were recorded during the years ended December 31, 2012 or 2011. | |||
Product Development Agreements | ' | ||
Product Development Agreements | |||
Product development costs are expensed as incurred. These expenses include the costs of our internal product development efforts and acquired in-process research and development, as well as product development costs incurred in connection with our third-party collaboration efforts. Non-refundable milestone payments made under contract research and development arrangements or product licensing arrangements prior to regulatory approval may be deferred and are expensed as the related services are delivered and the milestone is achieved. If we determine that it is no longer probable that the product will be pursued, any related capitalized amount is expensed in the current period. | |||
Once a product receives regulatory approval, we record any subsequent milestone payments as an intangible asset to be amortized on a straight-line basis as a component of cost of sales over the related license period or the estimated life of the acquired product. At December 31, 2013, the amortization period for intangible assets arising from approved products ranges from five to eight years with a weighted-average period prior to the next renewal or extension of six years. We make the determination whether to capitalize or expense amounts related to the development of new products and technologies through agreements with third parties based on our ability to recover our cost in a reasonable period of time from the estimated future cash flows anticipated to be generated pursuant to each agreement. Market, regulatory, and legal factors, among other things, may affect the realizability of the projected cash flows that an agreement was initially expected to generate. We regularly monitor these factors and subject capitalized costs to periodic impairment testing. | |||
Goodwill and Intangible Assets | ' | ||
Goodwill and Intangible Assets | |||
Goodwill is recognized as the excess of fair value of consideration transferred to acquire an entity over the fair values assigned to assets acquired and liabilities assumed. Goodwill is not amortized, but rather tested for impairment on an annual basis and more often if circumstances require. We assess goodwill impairment risk by first performing a qualitative review of entity-specific, industry, market and general economic factors for our reporting unit. If significant potential goodwill impairment risk exists, we apply a two-step quantitative test. Impairment losses are recognized whenever the implied fair value of goodwill is less than its carrying value. We test goodwill for impairment at least annually on October 1. No impairment of goodwill was recorded in the year ended December 31, 2013. | |||
Certain amounts paid to third parties that are capitalized related to the development of new products and technologies are included within intangible assets. We determine the estimated fair values of certain intangible assets with definitive lives utilizing valuations performed by management at the time of their acquisition, based on anticipated future cash flow activity. | |||
We test indefinite-lived intangible assets for impairment by first performing a qualitative review by assessing events and circumstances that could affect the fair value or carrying value of the indefinite-lived intangible asset. If significant potential impairment risk exists for a specific non-amortizable intangible asset, we quantitatively test for impairment by comparing the fair value of each intangible asset with its carrying value. Fair value of non-amortizable intangible assets is determined using planned growth rates, market-based discount rates and estimates of royalty rates. If the carrying value of the asset exceeds its fair value, the intangible asset is considered impaired and is reduced to its estimated fair value. | |||
Definite-lived intangible assets are amortized over their estimated useful lives and evaluated for impairment as long-lived assets. | |||
Acquired In-Process Research and Development | ' | ||
Acquired In-Process Research and Development | |||
The fair value of in-process research and development (“IPR&D”) projects acquired in a business combination are capitalized and accounted for as indefinite-lived intangible assets until the underlying project receives regulatory approval, at which point the intangible asset will be accounted for as a definite-lived intangible asset, or discontinuation, at which point the intangible asset will be written off. Development costs incurred after the acquisition are expensed as incurred. Indefinite- and definite-lived assets are subject to impairment reviews as discussed previously. | |||
Advertising and Promotion Expense | ' | ||
Advertising and Promotion Expense | |||
All advertising and promotion costs are expensed as selling, general, and administrative expenses when incurred. Total direct advertising and promotion expense incurred was $766, $683, and $679 for the years ended December 31, 2013, 2012 and 2011, respectively. | |||
Income Taxes | ' | ||
Income Taxes | |||
Deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax bases, as well as net operating loss and capital loss carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the financial statements in the period that includes the legislative enactment date. We recognize the financial statement effects of a tax position only when it is more likely than not that the position will be sustained upon examination and recognize any interest and penalties accrued in relation to unrecognized tax benefits in income tax expense. We establish valuation allowances against deferred tax assets when it is more likely than not that the realization of those deferred tax assets will not occur. | |||
In assessing the realizability of deferred tax assets, we consider whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. We also consider the scheduled reversal of deferred tax liabilities, projected future taxable income or losses, and tax planning strategies in making this assessment. Based upon our history of aggregate tax losses over the past three years, we do not believe realization of these tax assets is more likely than not. As such, full valuation allowances for the deferred tax assets were established. | |||
Revenue Recognition - General | ' | ||
Revenue Recognition – General | |||
We recognize revenue when our obligations to a customer are fulfilled relative to a specific product and all of the following conditions are satisfied: (i) persuasive evidence of an arrangement exists; (ii) the price is fixed or determinable; (iii) collectability is reasonably assured; and (iv) delivery has occurred. Delivery is deemed to have occurred upon customer receipt of product, upon fulfillment of acceptance terms, if any, and when no significant contractual obligations remain. Net sales reflect reductions of gross sales for estimated wholesaler chargebacks, estimated contractual allowances, and estimated early payment discounts. We provide for estimated returns at the time of sale based on historic product return experience. | |||
In the case of new products for which the product introduction is not an extension of an existing line of product, where we determine that there are not products in a similar therapeutic category, or where we determine the new product has dissimilar characteristics with existing products, such that we cannot reliably estimate expected returns of the new product, we defer recognition of revenue until the right of return no longer exists or until we have developed sufficient historical experience to estimate sales returns. | |||
Shipping and handling fees billed to customers are recognized in net revenue. Other shipping and handling costs are included in cost of goods sold. | |||
Revenue Recognition - Chargebacks | ' | ||
Revenue Recognition – Chargebacks | |||
The majority of our products are distributed through independent pharmaceutical wholesalers. In accordance with industry practice, sales to wholesalers are initially transacted at wholesale list price. The wholesalers then generally sell to an end user, normally a hospital, alternative healthcare facility, or an independent pharmacy, at a lower price previously contractually established between the end user and Sagent. | |||
When we initially record a sale to a wholesaler, the sale and resulting receivable are recorded at our list price. However, experience indicates that most of these selling prices will eventually be reduced to a lower, end-user contract price. Therefore, at the time of the sale, a contra asset is recorded for, and revenue is reduced by, the difference between the list price and the estimated average end-user contract price. This contra asset is calculated by product code, taking the expected number of outstanding wholesale units sold that will ultimately be sold under end-user contracts multiplied by the anticipated, weighted-average contract price. When the wholesaler ultimately sells the product, the wholesaler charges us, or issues a chargeback, for the difference between the list price and the end-user contract price and such chargeback is offset against the initial estimated contra asset. Periodically, we review the wholesale list prices for our products, and from time to time may reduce list prices based on market conditions or competitive pricing pressures. Reductions in the wholesale list price of our products reduce both our gross sales and the revenue reduction recorded upon initial product sale, but do not change the end-user contract selling price. | |||
The significant estimates inherent in the initial chargeback provision relate to wholesale units pending chargeback and to the ultimate end-user contract-selling price. We base the estimate for these factors on product-specific sales and internal chargeback processing experience, estimated wholesaler inventory stocking levels, current contract pricing and our expectation for future contract pricing changes. Our chargeback provision is potentially impacted by a number of market conditions, including: competitive pricing, competitive products, and other changes impacting demand in both the distribution channel and end users. | |||
We rely on internal data, external data from our wholesaler customers, and management estimates to estimate the amount of inventory in the channel subject to future chargeback. The amount of product in the channel is comprised of both product at the wholesaler and product that the wholesaler has sold, but not yet reported as end-user sales. Physical inventory in the channel is estimated by the evaluation of our monthly sales to the wholesalers and our knowledge of inventory levels and estimated inventory turnover at these wholesalers. | |||
Our total chargeback accrual was $43,682 and $24,265 at December 31, 2013 and 2012, respectively, and is included as a reduction of accounts receivable. Our total chargeback expense was $300,835, $166,051 and $167,521 for the years ended December 31, 2013, 2012 and 2011, respectively. | |||
Revenue Recognition - Cash Discounts | ' | ||
Revenue Recognition – Cash Discounts | |||
We offer cash discounts, approximating 2% of the gross sales price, as an incentive for prompt payment and occasionally offer greater discounts and extended payment terms in support of product launches or other promotional programs. Our wholesale customers typically pay within terms, and we account for cash discounts by reducing net sales and accounts receivable by the full amount of the discount offered at the time of sale. We consider payment performance and adjust the accrual to reflect actual experience. | |||
Our total accrual for cash discounts was $2,414 and $1,373 at December 31, 2013 and 2012, respectively, and is included as a reduction of accounts receivable. | |||
Revenue Recognition - Sales Returns | ' | ||
Revenue Recognition – Sales Returns | |||
Consistent with industry practice, our return policy permits customers to return products within a window of time before and after the expiration of product dating. We provide for product returns and other customer credits at the time of sale by applying historical experience factors. We provide specifically for known outstanding returns and credits. The effect of any changes in estimated returns is taken in the current period’s income. | |||
For returns of established products, we determine our estimate of the sales return accrual primarily based on historical experience, but also consider other factors that could impact sales returns. These factors include levels of inventory in the distribution channel, estimated shelf life, product recalls, timing of product returns relative to expiry, product discontinuances, price changes of competitive products, and introductions of competitive new products. | |||
Our total accrual for returns and credits was $4,895 and $3,262 at December 31, 2013 and 2012, respectively, and is included as a reduction of accounts receivable. | |||
Revenue Recognition - Contractual Allowances | ' | ||
Revenue Recognition – Contractual Allowances | |||
Contractual allowances, generally rebates or administrative fees, are offered to certain wholesale customers, GPOs, and end-user customers, consistent with pharmaceutical industry practices. Settlement of rebates and fees may generally occur from one to five months from date of sale. We provide a provision for contractual allowances at the time of sale based on the historical relationship between sales and such allowances. Contractual allowances are reflected in the consolidated financial statements as a reduction of revenues and as a current accrued liability. | |||
Stock Based Compensation | ' | ||
Stock Based Compensation | |||
We recognize compensation cost for all share-based payments (including employee stock options) at fair value. We use the straight-line attribution method to recognize stock based compensation expense over the vesting period of the award. Options currently granted generally expire ten years from the grant date and vest ratably over a four-year period. | |||
Stock based compensation expense for performance based options is measured and recognized if the performance measures are considered probable of being achieved. We evaluate the probability of the achievement of the performance measures at each balance sheet date. If it is not probable that the performance measures will be achieved, any previously recognized compensation cost would be reversed. | |||
Stock based compensation expense for cash-settled awards is measured and recognized at fair value on a periodic basis. | |||
We use the Black-Scholes option pricing model to estimate the fair value of options granted under our equity incentive plans and rights to acquire stock granted under the stock participation plan. Stock-based compensation expense was $5,293, $5,552 and $2,545 for the years ended December 31, 2013, 2012 and 2011, respectively. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||
Dec. 31, 2013 | |||
Estimated Useful Life of Assets and Leasehold Improvements | ' | ||
Provisions for depreciation are computed for financial reporting purposes using the straight-line method over the estimated useful life of the related asset and for leasehold improvements over the lesser of the estimated useful life of the related asset or the term of the related lease as follows: | |||
Land and land improvements | Remaining term of Chinese land use right (June 2057) | ||
Building and improvements | 5 to 40 years or remaining term of lease | ||
Machinery, equipment, furniture, and fixtures | 3 to 10 years |
Acquisitions_Tables
Acquisitions (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Future Payments Related to Acquisition | ' | ||||||||
Future installment payments are payable as follows: | |||||||||
(in thousands) | |||||||||
2014 | 3,500 | ||||||||
2015 | 9,000 | ||||||||
Consolidated Pro Forma Operations Results in Acquisitions | ' | ||||||||
The pro forma financial information is not necessarily indicative of the results of operations as they would have been had the transaction been effected on the assumed date. | |||||||||
Year Ended December 31, | |||||||||
2013 | 2012 | ||||||||
Condensed statement of operations information | |||||||||
Net revenues | $ | 244,750 | $ | 183,615 | |||||
Net income (loss) | 18,405 | (15,540 | ) | ||||||
Diluted income (loss) per common share | $ | 0.61 | $ | (0.56 | ) | ||||
SCP | ' | ||||||||
Fair value of transferred | ' | ||||||||
The acquisition date fair value transferred for the purchase of SCP is as follows: | |||||||||
(in thousands) | |||||||||
Cash | $ | 10,000 | |||||||
Present value of remaining purchase consideration | 13,836 | ||||||||
Previously held equity interest | 15,949 | ||||||||
Gain on remeasurement of previously held equity interest in KSCP | 154 | ||||||||
Total purchase consideration | $ | 39,939 | |||||||
Allocation of Purchase Price | ' | ||||||||
The fair value of identifiable assets acquired and liabilities assumed for the SCP acquisition is shown in the table below: | |||||||||
(in thousands) | |||||||||
Goodwill | $ | 6,038 | |||||||
Acquired tangible assets, net of assumed liabilities | 33,901 | ||||||||
Total allocation of fair value | $ | 39,939 | |||||||
Mylan Inc | ' | ||||||||
Allocation of Purchase Price | ' | ||||||||
The estimated fair value of identifiable assets acquired and liabilities assumed for Mesna and Acetylcysteine is shown in the table below: | |||||||||
(in thousands) | |||||||||
Definite-lived intangible asset | $ | 2,180 | |||||||
In-process research and development | 1,220 | ||||||||
Total allocation of fair value | $ | 3,400 | |||||||
Investments_Tables
Investments (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Investments | ' | ||||||||||||||||||||||||
Our investments at December 31, 2013 were comprised of the following: | |||||||||||||||||||||||||
Cost basis | Unrealized | Unrealized | Recorded | Cash and | Short term | ||||||||||||||||||||
gains | losses | basis | cash | investments | |||||||||||||||||||||
equivalents | |||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Cash | $ | 30,740 | $ | — | $ | — | $ | 30,740 | $ | 30,740 | $ | — | |||||||||||||
Money market funds | 11,592 | — | — | 11,592 | 11,592 | — | |||||||||||||||||||
Commercial paper | 21,297 | — | (3 | ) | 21,294 | — | 21,294 | ||||||||||||||||||
Corporate bonds and notes | 92,523 | 46 | (53 | ) | 92,516 | — | 92,516 | ||||||||||||||||||
$ | 156,152 | $ | 46 | $ | (56 | ) | $ | 156,142 | $ | 42,332 | $ | 113,810 | |||||||||||||
Our investments at December 31, 2012 were comprised of the following: | |||||||||||||||||||||||||
Cost basis | Unrealized | Unrealized | Recorded | Cash and | Short term | ||||||||||||||||||||
gains | losses | basis | cash | investments | |||||||||||||||||||||
equivalents | |||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Cash | $ | 9,546 | $ | — | $ | — | $ | 9,546 | $ | 9,546 | $ | — | |||||||||||||
Money market funds | 18,141 | — | — | 18,141 | 18,141 | — | |||||||||||||||||||
Commercial paper | 23,249 | — | (2 | ) | 23,247 | — | 23,247 | ||||||||||||||||||
Corporate bonds and notes | 13,344 | 14 | 13,358 | — | 13,358 | ||||||||||||||||||||
$ | 64,280 | $ | 14 | $ | (2 | ) | $ | 64,292 | $ | 27,687 | $ | 36,605 | |||||||||||||
Investments with Continuous Unrealized Losses for Less Than Twelve Months and Related Fair Values | ' | ||||||||||||||||||||||||
Investments with continuous unrealized losses for less than twelve months and their related fair values were as follows: | |||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||||||||||||||
Fair value | Unrealized | Fair value | Unrealized | ||||||||||||||||||||||
losses | losses | ||||||||||||||||||||||||
Commercial paper | $ | 19,294 | $ | (3 | ) | $ | 23,247 | $ | (2 | ) | |||||||||||||||
Corporate bonds and notes | 50,922 | (53 | ) | — | — | ||||||||||||||||||||
Cost and Estimated Current Fair Value of Fixed-Income Securities | ' | ||||||||||||||||||||||||
The original cost and estimated current fair value of our fixed-income securities are set forth below. | |||||||||||||||||||||||||
Cost basis | Estimated fair | ||||||||||||||||||||||||
value | |||||||||||||||||||||||||
Due in one year or less | $ | 54,032 | $ | 54,020 | |||||||||||||||||||||
Between one and five years | 59,788 | 59,790 |
Inventories_Tables
Inventories (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Inventory Valuation | ' | ||||||||||||||||||||||||
Inventories at December 31, 2013 and 2012 were as follows: | |||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||||||||||||||
Approved | Pending | Inventory | Approved | Pending | Inventory | ||||||||||||||||||||
regulatory | regulatory | ||||||||||||||||||||||||
approval | approval | ||||||||||||||||||||||||
Finished goods | $ | 44,510 | $ | 1,437 | $ | 45,947 | $ | 46,410 | $ | 1,437 | $ | 47,847 | |||||||||||||
Raw materials | 5,614 | 19 | 5,633 | 1,280 | — | 1,280 | |||||||||||||||||||
Inventory reserve | (3,662 | ) | (1,437 | ) | (5,099 | ) | (2,021 | ) | — | (2,021 | ) | ||||||||||||||
$ | 46,462 | $ | 19 | $ | 46,481 | $ | 45,669 | $ | 1,437 | $ | 47,106 | ||||||||||||||
Property_plant_and_equipment_T
Property, plant and equipment (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Property, Plant and Equipment | ' | ||||||||
Property, plant and equipment at December 31, 2013 and 2012 were as follows: | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Land and land improvements | $ | 2,235 | $ | — | |||||
Buildings and improvements | 19,696 | 103 | |||||||
Machinery, equipment, furniture and fixtures | 38,000 | 1,764 | |||||||
Construction in process | 460 | — | |||||||
60,391 | 1,867 | ||||||||
Less: accumulated depreciation | (2,707 | ) | (1,087 | ) | |||||
$ | 57,684 | $ | 780 | ||||||
Investment_Tables
Investment (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
SCP | ' | ||||||||||||
Changes in Investment | ' | ||||||||||||
Changes in the carrying value of SCP consist of the following: | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Investment in SCP at beginning of year | $ | 17,461 | $ | 20,888 | |||||||||
Equity in net loss of SCP | (1,825 | ) | (3,814 | ) | |||||||||
Currency translation adjustment | 294 | 237 | |||||||||||
Investments in SCP | 19 | 150 | |||||||||||
Acquisition of remaining equity interest in SCP | (15,949 | ) | — | ||||||||||
Investment in SCP at end of year | $ | — | $ | 17,461 | |||||||||
Condensed Statement of Operations Information | ' | ||||||||||||
Condensed statement of operations through the date of the SCP Acquisition and balance sheet information at December 31, 2012 is presented below. All amounts are presented in accordance with accounting principles generally accepted in the United States. In addition, the assets and liabilities of SCP have been translated at exchange rates as of the balance sheet date and revenues and expenses of SCP have been translated at the weighted-average exchange rate for each respective reporting period. | |||||||||||||
Period ended | Year ended | ||||||||||||
June 4, | December 31, | ||||||||||||
2013 | 2012 | 2011 | |||||||||||
Condensed statement of operations information | |||||||||||||
Net revenues | $ | — | $ | — | $ | — | |||||||
Gross profit | — | — | — | ||||||||||
Net loss | (2,805 | ) | (7,044 | ) | (8,581 | ) | |||||||
Condensed Statement of Balance Sheet | ' | ||||||||||||
December 31, | |||||||||||||
2012 | |||||||||||||
Condensed balance sheet information | |||||||||||||
Current assets | $ | 3,717 | |||||||||||
Noncurrent assets | 53,728 | ||||||||||||
Total assets | $ | 57,445 | |||||||||||
Current liabilities | $ | 4,741 | |||||||||||
Long-term liabilities | 18,296 | ||||||||||||
Stockholders’ equity | 34,408 | ||||||||||||
Total liabilities and stockholders’ equity | $ | 57,445 | |||||||||||
Sagent Agila LLC | ' | ||||||||||||
Changes in Investment | ' | ||||||||||||
Changes in the carrying value of Sagent Agila consist of the following: | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Investment in Sagent Agila at beginning of year | $ | 2,161 | $ | 1,874 | |||||||||
Equity in net income of Sagent Agila | 4,220 | 5,151 | |||||||||||
Dividend paid | (4,318 | ) | (5,155 | ) | |||||||||
Investments in Sagent Agila | — | 291 | |||||||||||
Investment in Sagent Agila at end of year | $ | 2,063 | $ | 2,161 | |||||||||
Condensed Statement of Operations Information | ' | ||||||||||||
Condensed statement of operations and balance sheet information of Sagent Agila is presented below. All amounts are presented in accordance with accounting principles generally accepted in the United States. | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Condensed statement of operations information | |||||||||||||
Net revenues | $ | 16,927 | $ | 28,948 | $ | 10,540 | |||||||
Gross profit | 5,454 | 11,279 | 4,128 | ||||||||||
Net income | 8,440 | 10,302 | 3,599 | ||||||||||
Condensed Statement of Balance Sheet | ' | ||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Condensed balance sheet information | |||||||||||||
Current assets | $ | 7,910 | $ | 11,015 | |||||||||
Noncurrent assets | 522 | 770 | |||||||||||
Total assets | $ | 8,432 | $ | 11,785 | |||||||||
Current liabilities | $ | 4,328 | $ | 7,485 | |||||||||
Long-term liabilities | — | — | |||||||||||
Stockholders’ equity | 4,104 | 4,300 | |||||||||||
Total liabilities and stockholders’ equity | $ | 8,432 | $ | 11,785 | |||||||||
Goodwill_and_Intangible_assets1
Goodwill and Intangible assets, net (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Schedule of Intangible Assets -Finite lived | ' | ||||||||||||||||||||||||
Intangible assets at December 31, 2013 and 2012 were as follows: | |||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||||||||||||||
Gross carrying | Accumulated | Intangible | Gross carrying | Accumulated | Intangible | ||||||||||||||||||||
amount | amortization | assets, net | amount | amortization | assets, net | ||||||||||||||||||||
Product licensing rights | $ | 5,941 | $ | (2,087 | ) | $ | 3,854 | $ | 3,156 | $ | (1,541 | ) | $ | 1,615 | |||||||||||
Product development rights | 3,252 | — | 3,252 | 2,662 | — | 2,662 | |||||||||||||||||||
Total definite-lived intangible assets | $ | 9,193 | $ | (2,087 | ) | $ | 7,106 | $ | 5,818 | $ | (1,541 | ) | $ | 4,277 | |||||||||||
In-process research and development (IPR&D) | $ | 1,220 | $ | — | $ | 1,220 | $ | — | $ | — | $ | — | |||||||||||||
Total intangible assets | $ | 10,413 | $ | (2,087 | ) | $ | 8,326 | $ | 5,818 | $ | (1,541 | ) | $ | 4,277 | |||||||||||
Schedule of Intangible Assets - Indefinite Lived | ' | ||||||||||||||||||||||||
Intangible assets at December 31, 2013 and 2012 were as follows: | |||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||||||||||||||
Gross carrying | Accumulated | Intangible | Gross carrying | Accumulated | Intangible | ||||||||||||||||||||
amount | amortization | assets, net | amount | amortization | assets, net | ||||||||||||||||||||
Product licensing rights | $ | 5,941 | $ | (2,087 | ) | $ | 3,854 | $ | 3,156 | $ | (1,541 | ) | $ | 1,615 | |||||||||||
Product development rights | 3,252 | — | 3,252 | 2,662 | — | 2,662 | |||||||||||||||||||
Total definite-lived intangible assets | $ | 9,193 | $ | (2,087 | ) | $ | 7,106 | $ | 5,818 | $ | (1,541 | ) | $ | 4,277 | |||||||||||
In-process research and development (IPR&D) | $ | 1,220 | $ | — | $ | 1,220 | $ | — | $ | — | $ | — | |||||||||||||
Total intangible assets | $ | 10,413 | $ | (2,087 | ) | $ | 8,326 | $ | 5,818 | $ | (1,541 | ) | $ | 4,277 | |||||||||||
Movements in Intangible Assets | ' | ||||||||||||||||||||||||
Movements in intangible assets were due to the following: | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Product | Product | IPR&D | Product | Product | |||||||||||||||||||||
licensing | development | licensing | development | ||||||||||||||||||||||
rights | rights | rights | rights | ||||||||||||||||||||||
Balance at January 1 | $ | 1,615 | $ | 2,662 | $ | — | $ | 1,458 | $ | 3,968 | |||||||||||||||
Acquisition of product rights | 604 | 4,570 | — | 628 | 2,620 | ||||||||||||||||||||
Sagent Agila product acquisitions | 2,180 | 1,220 | — | — | |||||||||||||||||||||
Amortization of product rights | (545 | ) | (3,980 | ) | — | (471 | ) | (3,926 | ) | ||||||||||||||||
Balance at December 31 | $ | 3,854 | $ | 3,252 | $ | 1,220 | $ | 1,615 | $ | 2,662 | |||||||||||||||
Schedule of Estimate Amortization Expense over Each of the Next Five Years | ' | ||||||||||||||||||||||||
We currently estimate amortization expense over each of the next five years as follows: | |||||||||||||||||||||||||
Amortization | |||||||||||||||||||||||||
expense | |||||||||||||||||||||||||
For the year ending December 31, | |||||||||||||||||||||||||
2014 | $ | 4,102 | |||||||||||||||||||||||
2015 | 538 | ||||||||||||||||||||||||
2016 | 511 | ||||||||||||||||||||||||
2017 | 487 | ||||||||||||||||||||||||
2018 | 463 |
Accrued_liabilities_Tables
Accrued liabilities (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Accrued Liabilities | ' | ||||||||
Accrued liabilities at December 31, 2013 and 2012 were as follows: | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Payroll and employee benefits | $ | 6,143 | $ | 1,211 | |||||
Sales and marketing | 5,305 | 5,649 | |||||||
Taxes payable | 895 | — | |||||||
Other accrued liabilities | 661 | 509 | |||||||
$ | 13,004 | $ | 7,369 | ||||||
Fair_value_measurements_Tables
Fair value measurements (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Summary of Assets and Liabilities Measured at Fair Value on Recurring Basis | ' | ||||||||||||||||
Assets and liabilities measured at fair value on a recurring basis as of December 31, 2013 consisted of the following: | |||||||||||||||||
Total fair value | Quoted prices in | Significant other | Significant | ||||||||||||||
active markets | observable | unobservable | |||||||||||||||
for identical | inputs (Level 2) | inputs | |||||||||||||||
assets (Level 1) | (Level 3) | ||||||||||||||||
Assets | |||||||||||||||||
Money market funds | $ | 11,592 | $ | 11,592 | $ | — | $ | — | |||||||||
Corporate bonds and notes | 92,516 | — | 92,516 | — | |||||||||||||
Commercial paper | 21,294 | — | 21,294 | — | |||||||||||||
Short-term investments | $ | 113,810 | $ | — | $ | 113,810 | $ | — | |||||||||
Total assets | $ | 125,402 | $ | 11,592 | $ | 113,810 | $ | — | |||||||||
Liabilities | |||||||||||||||||
Contingent purchase consideration | $ | 200 | $ | — | $ | — | $ | 200 | |||||||||
Assets measured at fair value on a recurring basis as of December 31, 2012 consisted of the following: | |||||||||||||||||
Total fair value | Quoted prices in | Significant other | Significant | ||||||||||||||
active markets for | observable | unobservable | |||||||||||||||
identical assets | inputs (Level 2) | inputs | |||||||||||||||
(Level 1) | (Level 3) | ||||||||||||||||
Assets | |||||||||||||||||
Money market funds | $ | 18,141 | $ | 18,141 | $ | — | $ | — | |||||||||
Corporate bonds and notes | 13,358 | — | 13,358 | — | |||||||||||||
Commercial paper | 23,247 | — | 23,247 | — | |||||||||||||
Short-term investments | $ | 36,605 | $ | — | $ | 36,605 | $ | — | |||||||||
Total assets | $ | 54,746 | $ | 18,141 | $ | 36,605 | $ | — | |||||||||
Summary of Fair Value of Preferred Stock Warrants Measured Using Significant Unobservable Inputs | ' | ||||||||||||||||
During the year ended December 31, 2013, changes in the fair value of our contingent purchase consideration measured using significant unobservable inputs (Level 3), were comprised of the following: | |||||||||||||||||
Year ended | |||||||||||||||||
December 31, 2013 | |||||||||||||||||
Balance at beginning of period | $ | — | |||||||||||||||
Issuance of contingent purchase consideration | 200 | ||||||||||||||||
Change in fair value of contingent purchase consideration | — | ||||||||||||||||
Payment of contingent purchase consideration | — | ||||||||||||||||
Balance at end of period | $ | 200 | |||||||||||||||
Accumulated_comprehensive_inco1
Accumulated comprehensive income (loss) (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Accumulated Other Comprehensive Income | ' | ||||||||||||
Accumulated comprehensive income (loss) at December 31, 2013, 2012 and 2011 is comprised of the following: | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Currency translation adjustment, net of tax | $ | 496 | $ | 2,488 | $ | 2,251 | |||||||
Unrealized gain (loss) on available for sale securities, net of tax | (9 | ) | 12 | (89 | ) | ||||||||
$ | 487 | $ | 2,500 | $ | 2,162 | ||||||||
The following table summarizes the changes in balances of each component of accumulated other comprehensive income, net of tax as of December 31, 2013. | |||||||||||||
Currency | Unrealized gains | Total | |||||||||||
translation | (losses) on | ||||||||||||
adjustment | available for sale | ||||||||||||
securities | |||||||||||||
Balance as of December 31, 2012 | $ | 2,488 | $ | 12 | $ | 2,500 | |||||||
Other comprehensive income (loss) before reclassifications | 790 | (21 | ) | 769 | |||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | (2,782 | ) | — | (2,782 | ) | ||||||||
Net current-period other comprehensive loss | (1,992 | ) | (21 | ) | (2,013 | ) | |||||||
Balance as of December 31, 2013 | $ | 496 | $ | (9 | ) | $ | 487 | ||||||
Amounts Reclassified Out of Accumulated Other Comprehensive Income | ' | ||||||||||||
The table below presents the amounts reclassified out of each component of accumulated other comprehensive income for the year ended December 31, 2013. | |||||||||||||
Type of reclassification | Amount | Affected line item in the condensed | |||||||||||
reclassified from | consolidated statement of operations | ||||||||||||
accumulated other | |||||||||||||
comprehensive | |||||||||||||
income | |||||||||||||
Currency translation adjustment – reclassification of cumulative currency translation gain | $ | 2,782 | Gain on previously held equity interest | ||||||||||
Total reclassification for the year ended December 31, 2013, net of tax | $ | 2,782 | |||||||||||
Earnings_per_share_Tables
Earnings per share (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Schedule of Calculation of Numerator and Denominator in Earnings Per Share | ' | ||||||||||||
The table below presents the computation of basic and diluted earnings per share for the years ended December 31, 2013, 2012 and 2011. | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Basic and dilutive numerator | |||||||||||||
Net income (loss), as reported | $ | 29,594 | $ | (16,817 | ) | $ | (26,422 | ) | |||||
Denominator | |||||||||||||
Weighted average common shares outstanding – basic (in thousands) | 29,213 | 27,980 | 20,105 | ||||||||||
Net effect of dilutive securities | |||||||||||||
Stock options and restricted stock | 724 | — | — | ||||||||||
Weighted average common shares outstanding – diluted (in thousands) | 29,937 | 27,980 | 20,105 | ||||||||||
Net income (loss) per common share (basic) | $ | 1.01 | $ | (0.60 | ) | $ | (1.31 | ) | |||||
Net income (loss) per common share (diluted) | $ | 0.99 | $ | (0.60 | ) | $ | (1.31 | ) | |||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Restricted Stock Activity | ' | ||||||||||||||||||||
The following table summarizes restricted stock activity during the year ended December 31, 2013: | |||||||||||||||||||||
Restricted | Weighted-Average | ||||||||||||||||||||
stock | Grant Date Fair | ||||||||||||||||||||
Value | |||||||||||||||||||||
Balance at January 1, 2013 | 50,039 | $ | 19.93 | ||||||||||||||||||
Granted | 56,224 | 16.65 | |||||||||||||||||||
Vested | (9,677 | ) | 14.92 | ||||||||||||||||||
Forfeited | (7,378 | ) | 9.31 | ||||||||||||||||||
Balance at December 31, 2013 | 89,208 | $ | 18.64 | ||||||||||||||||||
Weighted-Average Assumptions Used in Calculating Estimated Values | ' | ||||||||||||||||||||
The weighted-average estimated values of employee stock option grants and rights granted under the Plans as well as the weighted-average assumptions that were used in calculating such values during the last three years were based on estimates at the date of grant as follows: | |||||||||||||||||||||
Risk free | Expected life | Expected | Expected | Fair value at | |||||||||||||||||
interest rate | dividend yield | volatility | grant date | ||||||||||||||||||
2013 | 1.24 | % | 6 years | 0 | % | 62 | % | $ | 9.31 | ||||||||||||
2012 | 1.05 | % | 6 years | 0 | % | 61 | % | $ | 10.67 | ||||||||||||
2011 | 1.47 | % | 6 years | 0 | % | 61 | % | $ | 11.15 | ||||||||||||
Stock Options Outstanding Vested and Expected to Vest | ' | ||||||||||||||||||||
Stock options outstanding that have vested and are expected to vest as of December 31, 2013, were as follows: | |||||||||||||||||||||
Number of | Weighted-Average | Weighted-Average | Aggregate | ||||||||||||||||||
shares | Exercise Price | Remaining | Intrinsic | ||||||||||||||||||
Contractual Term | Value(1) | ||||||||||||||||||||
Vested | 1,450,992 | $ | 10.75 | 6.5 | $ | 21,242 | |||||||||||||||
Expected to vest | 1,010,168 | $ | 17.67 | 8.3 | 7,805 | ||||||||||||||||
Total | 2,461,160 | $ | 13.59 | 7.2 | $ | 29,047 | |||||||||||||||
(1) | The Aggregate Intrinsic Value amounts represent the difference between the exercise price and $25.38, the fair value of our stock on December 31, 2013, for in-the-money options. | ||||||||||||||||||||
Stock Option Activity | ' | ||||||||||||||||||||
The following table sets forth stock option activity for the year ended December 31, 2013: | |||||||||||||||||||||
Options Outstanding | Exercisable Options | ||||||||||||||||||||
Number of | Weighted-Average | Number of shares | Weighted-Average | ||||||||||||||||||
shares | Exercise Price | Exercise Price | |||||||||||||||||||
Outstanding at January 1, 2013 | 2,236,128 | $ | 12.62 | 982,179 | $ | 7.6 | |||||||||||||||
Granted | 399,774 | $ | 17.08 | — | |||||||||||||||||
Exercised | (120,712 | ) | $ | 6.25 | — | ||||||||||||||||
Forfeited | (54,040 | ) | $ | 15.57 | — | ||||||||||||||||
Outstanding at December 31, 2013 | 2,461,160 | $ | 13.59 | 1,450,992 | $ | 10.75 | |||||||||||||||
Net_Revenue_by_Product_Tables
Net Revenue by Product (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Schedule of Net Revenue by Product Category | ' | ||||||||||||
Net revenue by product category is as follows: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Therapeutic Class | |||||||||||||
Anti-Infective | $ | 90,604 | $ | 81,923 | $ | 63,476 | |||||||
Critical Care | 65,612 | 71,683 | 54,489 | ||||||||||
Oncology | 88,534 | 30,009 | 34,440 | ||||||||||
Total | $ | 244,750 | $ | 183,615 | $ | 152,405 | |||||||
Geographic_Data_Tables
Geographic Data (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Geographic Data for Net Revenue | ' | ||||||||||||
Geographic data for net revenue and long-lived assets were: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Net revenue: | |||||||||||||
United States | $ | 244,272 | $ | 183,615 | $ | 152,405 | |||||||
Others | 478 | — | — | ||||||||||
Total | $ | 244,750 | $ | 183,615 | $ | 152,405 | |||||||
Geographic data For Long-lived Assets | ' | ||||||||||||
2013 | 2012 | 2011 | |||||||||||
Long-lived assets: | |||||||||||||
United States | $ | 17,401 | $ | 25,047 | $ | 29,662 | |||||||
China | 57,016 | — | — | ||||||||||
Total | $ | 74,417 | $ | 25,047 | $ | 29,662 | |||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Components of Loss Before Income Taxes | ' | ||||||||||||
Components of income (loss) before income taxes are as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Domestic | $ | 36,671 | $ | (16,817 | ) | $ | (24,066 | ) | |||||
Foreign | (6,182 | ) | — | (2,356 | ) | ||||||||
Income (loss) before income taxes | $ | 30,489 | $ | (16,817 | ) | $ | (26,422 | ) | |||||
Net Operating Loss Carryforwards | ' | ||||||||||||
A summary of our net operating loss carryforwards, including the timing of expiry, is as follows: | |||||||||||||
Year of Expiry | Net Operating | ||||||||||||
Loss | |||||||||||||
Carryforwards | |||||||||||||
2030 | 16,967 | ||||||||||||
2031 | 13,256 | ||||||||||||
2032 | 8,674 | ||||||||||||
Total | $ | 38,897 | |||||||||||
Reconciliation of Income Tax Provision (Benefit) | ' | ||||||||||||
The following is a reconciliation of our income tax provision (benefit) computed at the U.S. federal statutory rate to the income tax provision (benefit) reported in the consolidated statements of operations: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Provision (benefit) at statutory rate | $ | 10,366 | $ | (5,718 | ) | $ | (8,983 | ) | |||||
State income taxes, net of federal income tax | 230 | (37 | ) | (236 | ) | ||||||||
Foreign rate differential | 560 | — | 801 | ||||||||||
Valuation allowance | (9,998 | ) | 4,561 | 7,799 | |||||||||
Permanent book / tax differences | (263 | ) | 1,194 | 619 | |||||||||
Provision for income taxes | $ | 895 | $ | — | $ | — | |||||||
Deferred Income Tax Assets and Liabilities | ' | ||||||||||||
The tax effects of temporary differences giving rise to deferred income tax assets and liabilities were: | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Deferred tax assets: | |||||||||||||
Product development and start-up costs | $ | 12,039 | $ | 10,142 | |||||||||
Inventory | 2,652 | 2,000 | |||||||||||
Loss and credit carryforwards | 21,521 | 30,233 | |||||||||||
Bad debt reserves | 8 | 400 | |||||||||||
Accrued expenses / other | 3,210 | 2,487 | |||||||||||
Deferred compensation | 2,281 | 1,512 | |||||||||||
Alternative minimum tax carryforwards | 895 | — | |||||||||||
Total deferred tax assets | $ | 42,606 | $ | 46,774 | |||||||||
Deferred tax liabilities: | |||||||||||||
Depreciation | $ | (497 | ) | $ | (117 | ) | |||||||
Total deferred tax liabilities | (497 | ) | (117 | ) | |||||||||
Net deferred tax asset | 42,109 | 46,657 | |||||||||||
Valuation allowance | (42,109 | ) | (46,657 | ) | |||||||||
Net deferred tax assets (liabilities) | $ | — | $ | — | |||||||||
Classification of net deferred tax assets (liabilities) on the consolidated balance sheets is as follows: | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Current assets | $ | 6 | $ | 6 | |||||||||
Noncurrent liabilities | (6 | ) | (6 | ) | |||||||||
Net deferred tax assets (liabilities) | $ | — | $ | — | |||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Contingent Payments | ' | ||||
Contingent milestone payments are as follows at December 31, 2013: | |||||
2014 | 18,805 | ||||
2015 | 7,528 | ||||
2016 | 2,293 | ||||
2017 | 3,227 | ||||
2018 | 204 | ||||
Thereafter | — | ||||
Total | $ | 32,057 | |||
Future Annual Minimum Lease Payments Related to Noncancelable Operating Leases | ' | ||||
As of December 31, 2013, total future annual minimum lease payments related to noncancelable operating leases are as follows: | |||||
2014 | 297 | ||||
2015 | 306 | ||||
2016 | 315 | ||||
Total | $ | 918 | |||
Quarterly_Financial_Data_Unaud1
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Quarterly Financial Data | ' | ||||||||||||||||
2013 Quarters | |||||||||||||||||
First | Second | Third | Fourth | ||||||||||||||
Net revenue | $ | 60,211 | $ | 59,591 | $ | 60,842 | $ | 64,106 | |||||||||
Gross profit | $ | 18,458 | $ | 23,218 | $ | 18,587 | $ | 17,259 | |||||||||
Income from continuing operations | $ | 9,887 | $ | 13,434 | $ | 3,101 | $ | 4,958 | |||||||||
Net income | $ | 9,838 | $ | 13,370 | $ | 2,826 | $ | 3,560 | |||||||||
Weighted-average shares used to compute net income per share | |||||||||||||||||
Basic | 28,135 | 28,163 | 28,745 | 31,776 | |||||||||||||
Diluted | 28,746 | 28,828 | 29,568 | 32,609 | |||||||||||||
Net income per share | |||||||||||||||||
Basic | $ | 0.35 | $ | 0.47 | $ | 0.1 | $ | 0.11 | |||||||||
Diluted | $ | 0.34 | $ | 0.46 | $ | 0.1 | $ | 0.11 | |||||||||
2012 Quarters | |||||||||||||||||
First | Second | Third | Fourth | ||||||||||||||
Net revenue | $ | 38,280 | $ | 42,680 | $ | 49,429 | $ | 53,226 | |||||||||
Gross profit | $ | 5,762 | $ | 6,506 | $ | 7,221 | $ | 11,618 | |||||||||
Loss from continuing operations | $ | (6,952 | ) | $ | (4,740 | ) | $ | (3,758 | ) | $ | (43 | ) | |||||
Net loss | $ | (8,289 | ) | $ | (4,716 | ) | $ | (3,750 | ) | $ | (62 | ) | |||||
Weighted-average shares used to compute net loss per share | |||||||||||||||||
Basic | 27,915 | 27,936 | 27,977 | 28,092 | |||||||||||||
Diluted | 27,915 | 27,936 | 27,977 | 28,092 | |||||||||||||
Net income per share | |||||||||||||||||
Basic | $ | (0.30 | ) | $ | (0.17 | ) | $ | (0.13 | ) | $ | (0.00 | ) | |||||
Diluted | $ | (0.30 | ) | $ | (0.17 | ) | $ | (0.13 | ) | $ | (0.00 | ) |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 04, 2013 | Dec. 31, 2013 |
Allowance for Cash Discounts | Allowance for Cash Discounts | Allowance for Cash Discounts | Allowance for Cash Discounts | Allowance for Credits | Allowance for Credits | Allowance for Credits | Allowance for Credits | Minimum | Maximum | Chargeback Allowance | Chargeback Allowance | Chargeback Allowance | Other Assets | Other Assets | KSCP | Sagent Agila LLC | ||||
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Initial public offering date | 26-Apr-11 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of remaining equity interest acquired | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' |
Joint venture, ownership interest percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% |
Conversion ratio of preferred shares to common stock shares | ' | ' | 0.12759 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred financing costs | $28 | $284 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $206 | $268 | ' | ' |
Impairment charges | 44 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Regulatory approved products, amortization period for intangible assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | '8 years | ' | ' | ' | ' | ' | ' | ' |
Regulatory approved products, weighted-average amortization period prior to the next renewal or extension | '6 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill Impairment | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Advertising and promotion expense | 766 | 683 | 679 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accounts receivable, accrual | ' | ' | ' | 2,414 | 1,373 | 1,804 | 701 | 4,895 | 3,262 | 1,940 | 1,880 | ' | ' | 43,682 | 24,265 | ' | ' | ' | ' | ' |
Accounts receivable, expense | ' | ' | ' | 12,204 | 7,665 | 8,188 | ' | 6,760 | 3,539 | 1,458 | ' | ' | ' | 300,835 | 166,051 | 167,521 | ' | ' | ' | ' |
Cash discounts, percentage of gross sales price | 2.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Rebates and fees settlement period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 month | '5 months | ' | ' | ' | ' | ' | ' | ' |
Share based compensation, options granted expiration period | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share based compensation, options vesting period | '4 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock-based compensation expense | $5,293 | $5,552 | $2,545 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated_Useful_Life_of_Prope
Estimated Useful Life of Property Plant and Equipment (Detail) | 12 Months Ended |
Dec. 31, 2013 | |
Land and Land Improvements | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, plant and equipment, estimated useful life | 'Remaining term of Chinese land use right (June 2057) |
Property, plant and equipment, expiration month and year | '2057-06 |
Building and Improvements | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, plant and equipment, estimated useful life | '5 to 40 years or remaining term of lease |
Building and Improvements | Minimum | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, plant and equipment, estimated useful life | '5 years |
Building and Improvements | Maximum | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, plant and equipment, estimated useful life | '40 years |
Machinery and Equipment | Minimum | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, plant and equipment, estimated useful life | '3 years |
Machinery and Equipment | Maximum | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, plant and equipment, estimated useful life | '10 years |
Acquisition_Additional_Informa
Acquisition - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | ||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Jun. 04, 2013 | Dec. 31, 2013 | Aug. 30, 2013 |
SCP | SCP | SCP | Mylan Inc | ||||||||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of remaining equity interest acquired | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' | ' |
Business acquisition, purchase price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $25,000 | $39,939 | $3,400 |
Business acquisition, gross consideration paid | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,000 | 10,000 | 3,200 |
Business acquisition, fair value of future payment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 13,836 | 13,836 | ' |
Installment payment obligation, cash payments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,500 | ' | ' | ' |
Gain on previously held equity interest | ' | ' | ' | ' | ' | ' | ' | ' | 2,936 | ' | ' | ' | ' | 2,936 | ' |
Reclassification of cumulative currency translation gain | ' | ' | ' | ' | ' | ' | ' | ' | 2,782 | ' | ' | ' | ' | 2,782 | ' |
Business acquisition related cost | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 479 | ' |
Cash | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,704 | ' | ' |
Inventory | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,396 | ' | ' |
Prepaid assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 196 | ' | ' |
Property, plant and equipment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 56,654 | ' | ' |
Long term bank loans | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 19,095 | ' | ' |
Accrued compensation and other liabilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8,954 | ' | ' |
Goodwill | 6,038 | ' | ' | ' | ' | ' | ' | ' | 6,038 | ' | ' | ' | 6,038 | ' | ' |
Net revenue | 64,106 | 60,842 | 59,591 | 60,211 | 53,226 | 49,429 | 42,680 | 38,280 | 244,750 | 183,615 | 152,405 | ' | ' | 344 | ' |
Net income (loss) | 3,560 | 2,826 | 13,370 | 9,838 | -62 | -3,750 | -4,716 | -8,289 | 29,594 | -16,817 | -26,422 | ' | ' | -6,137 | ' |
Contingent consideration | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200 |
Fair value of contingent consideration | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $200 |
Future_Payments_Related_to_Acq
Future Payments Related to Acquisition (Detail) (SCP, USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
SCP | ' |
Business Acquisition [Line Items] | ' |
2014 | $3,500 |
2015 | $9,000 |
Purchase_Consideration_related
Purchase Consideration related to Acquisition (Detail) (SCP, USD $) | 1 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Jun. 04, 2013 | Dec. 31, 2013 |
SCP | ' | ' |
Schedule of Business Acquisitions, Purchase Price [Line Items] | ' | ' |
Cash | $10,000 | $10,000 |
Present value of remaining purchase consideration | 13,836 | 13,836 |
Previously held equity interest | ' | 15,949 |
Gain on remeasurement of previously held equity interest in KSCP | ' | 154 |
Total purchase consideration | $25,000 | $39,939 |
Allocation_of_Purchase_Price_D
Allocation of Purchase Price (Detail) (USD $) | Dec. 31, 2013 | Aug. 30, 2013 | Jun. 04, 2013 |
In Thousands, unless otherwise specified | SCP | ||
Business Acquisition [Line Items] | ' | ' | ' |
Goodwill | $6,038 | ' | $6,038 |
Acquired tangible assets, net of assumed liabilities | ' | 3,400 | 33,901 |
Total allocation of fair value | ' | ' | $39,939 |
Estimated_Fair_Value_of_Identi
Estimated Fair Value of Identifiable Assets Acquired and Liabilities Assumed (Detail) (USD $) | Aug. 30, 2013 |
In Thousands, unless otherwise specified | |
Schedule Of Finite And Indefinite Lived Assets Acquired And Liabilities Assumed By Major Class [Line Items] | ' |
Definite-lived intangible asset | $2,180 |
In-process research and development | 1,220 |
Total allocation of fair value | $3,400 |
Pro_Forma_Operations_Results_D
Pro Forma Operations Results (Detail) (USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Business Acquisition [Line Items] | ' | ' |
Net revenues | $244,750 | $183,615 |
Net income (loss) | $18,405 | ($15,540) |
Diluted income (loss) per common share | $0.61 | ($0.56) |
Investments_Detail
Investments (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Thousands, unless otherwise specified | ||||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' |
Cost basis | $156,152 | $64,280 | ' | ' |
Unrealized gains | 46 | 14 | ' | ' |
Unrealized losses | -56 | -2 | ' | ' |
Recorded basis | 156,142 | 64,292 | ' | ' |
Cash and cash equivalents | 42,332 | 27,687 | 52,203 | 34,376 |
Short term investments | 113,810 | 36,605 | ' | ' |
Cash | ' | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' |
Cost basis | 30,740 | 9,546 | ' | ' |
Recorded basis | 30,740 | 9,546 | ' | ' |
Cash and cash equivalents | 30,740 | 9,546 | ' | ' |
Money market funds | ' | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' |
Cost basis | 11,592 | 18,141 | ' | ' |
Recorded basis | 11,592 | 18,141 | ' | ' |
Cash and cash equivalents | 11,592 | 18,141 | ' | ' |
Commercial paper | ' | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' |
Cost basis | 21,297 | 23,249 | ' | ' |
Unrealized losses | -3 | -2 | ' | ' |
Recorded basis | 21,294 | 23,247 | ' | ' |
Short term investments | 21,294 | 23,247 | ' | ' |
Corporate bonds and notes | ' | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' |
Cost basis | 92,523 | 13,344 | ' | ' |
Unrealized gains | 46 | 14 | ' | ' |
Unrealized losses | -53 | ' | ' | ' |
Recorded basis | 92,516 | 13,358 | ' | ' |
Short term investments | $92,516 | $13,358 | ' | ' |
Investments_with_Continuous_Un
Investments with Continuous Unrealized Losses for Less Than Twelve Months and Related Fair Values (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Commercial paper | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Fair value | $19,294 | $23,247 |
Unrealized losses | -3 | -2 |
Corporate bonds and notes | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Fair value | 50,922 | ' |
Unrealized losses | ($53) | ' |
Cost_and_Estimated_Current_Fai
Cost and Estimated Current Fair Value of Fixed-Income Securities (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Schedule of Available-for-sale Securities [Line Items] | ' |
Due in one year or less, cost basis | $54,032 |
Between one and five years, cost basis | 59,788 |
Due in one year or less, Estimated fair value | 54,020 |
Between one and five years, Estimated fair value | $59,790 |
Accounts_Receivable_and_Concen1
Accounts Receivable and Concentration of Credit Risk - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Customer | Customer | Customer | |
Accounts and Other Receivables [Line Items] | ' | ' | ' |
Number of wholesalers | 3 | 3 | 3 |
Reserve for accounts receivable | $23 | $124 | ' |
Sales | ' | ' | ' |
Accounts and Other Receivables [Line Items] | ' | ' | ' |
Concentration of credit risk | 84.00% | 82.00% | 83.00% |
Accounts Receivable | ' | ' | ' |
Accounts and Other Receivables [Line Items] | ' | ' | ' |
Concentration of credit risk | 87.00% | 89.00% | ' |
Inventories_Detail
Inventories (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Inventory [Line Items] | ' | ' |
Finished goods | $45,947 | $47,847 |
Raw materials | 5,633 | 1,280 |
Inventory reserve | -5,099 | -2,021 |
Inventory, Net, Total | 46,481 | 47,106 |
Approved | ' | ' |
Inventory [Line Items] | ' | ' |
Finished goods | 44,510 | 46,410 |
Raw materials | 5,614 | 1,280 |
Inventory reserve | -3,662 | -2,021 |
Inventory, Net, Total | 46,462 | 45,669 |
Pending Regulatory Approval | ' | ' |
Inventory [Line Items] | ' | ' |
Finished goods | 1,437 | 1,437 |
Raw materials | 19 | ' |
Inventory reserve | -1,437 | ' |
Inventory, Net, Total | $19 | $1,437 |
Property_Plant_and_Equipment_D
Property Plant and Equipment (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Property Plant and equipment before depreciation | $60,391 | $1,867 |
Less accumulated depreciation | -2,707 | -1,087 |
Property Plant and equipment after depreciation | 57,684 | 780 |
Land and Land Improvements | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property Plant and equipment before depreciation | 2,235 | ' |
Buildings and improvements | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property Plant and equipment before depreciation | 19,696 | 103 |
Machinery, equipment, furniture, and fixtures | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property Plant and equipment before depreciation | 38,000 | 1,764 |
Construction in process | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property Plant and equipment before depreciation | $460 | ' |
Property_Plant_and_Equipment_A
Property Plant and Equipment - Additional Information (Detail) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2013 |
China | ||||
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' |
Depreciation expense | $1,620 | $215 | $225 | ' |
Assets related to Chinese manufacturing facility placed in service | ' | ' | ' | $49,744 |
Investment_in_Sagent_Agila_Add
Investment in Sagent Agila - Additional Information (Detail) (Sagent Agila LLC) | Dec. 31, 2013 |
Sagent Agila LLC | ' |
Schedule of Equity Method Investments [Line Items] | ' |
Joint venture, ownership interest percentage | 50.00% |
Changes_in_Investment_of_Sagen
Changes in Investment of Sagent Agila (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' |
Investment at beginning of year | $19,622 | ' | ' |
Equity in net loss (income) of joint ventures | -2,395 | -1,337 | 2,531 |
Investment at end of year | 2,063 | 19,622 | ' |
Sagent Agila LLC | ' | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' |
Investment at beginning of year | 2,161 | 1,874 | ' |
Equity in net loss (income) of joint ventures | 4,220 | 5,151 | ' |
Dividends paid | -4,318 | -5,155 | ' |
Investments | ' | 291 | ' |
Investment at end of year | $2,063 | $2,161 | ' |
Condensed_Statement_of_Operati
Condensed Statement of Operations Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
SCP | ' | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' |
Net (income) loss | ($2,805) | ($7,044) | ($8,581) |
Sagent Agila LLC | ' | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' |
Net revenues | 16,927 | 28,948 | 10,540 |
Gross profit | 5,454 | 11,279 | 4,128 |
Net (income) loss | $8,440 | $10,302 | $3,599 |
Condensed_Statement_of_Balance
Condensed Statement of Balance Sheet (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
SCP | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' |
Current assets | ' | $3,717 |
Noncurrent assets | ' | 53,728 |
Total assets | ' | 57,445 |
Current liabilities | ' | 4,741 |
Long-term liabilities | ' | 18,296 |
Stockholders' equity | ' | 34,408 |
Total liabilities and stockholders' equity | ' | 57,445 |
Sagent Agila LLC | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' |
Current assets | 7,910 | 11,015 |
Noncurrent assets | 522 | 770 |
Total assets | 8,432 | 11,785 |
Current liabilities | 4,328 | 7,485 |
Stockholders' equity | 4,104 | 4,300 |
Total liabilities and stockholders' equity | $8,432 | $11,785 |
Investment_in_SCP_Additional_I
Investment in SCP - Additional Information (Detail) (SCP) | Dec. 31, 2013 |
SCP | ' |
Schedule of Equity Method Investments [Line Items] | ' |
Joint venture, ownership interest percentage | 50.00% |
Changes_in_Investment_of_Sagen1
Changes in Investment of Sagent Pharmaceutical Corporation Limited (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' |
Investment at beginning of year | $19,622 | ' | ' |
Equity in net loss (income) of joint ventures | -2,395 | -1,337 | 2,531 |
Investment at end of year | 2,063 | 19,622 | ' |
SCP | ' | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' |
Investment at beginning of year | 17,461 | 20,888 | ' |
Equity in net loss (income) of joint ventures | -1,825 | -3,814 | ' |
Currency translation adjustment | 294 | 237 | ' |
Investments | 19 | 150 | ' |
Acquisition of remaining equity interest in SCP | -15,949 | ' | ' |
Investment at end of year | ' | $17,461 | ' |
Goodwill_and_Intangible_assets2
Goodwill and Intangible assets, net - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Amortization expense | $2,087 | $1,541 | ' |
Number of products | 22 | ' | ' |
Weighted-average period prior to next extension or renewal of intangible asset | '6 years | ' | ' |
SCP | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Goodwill acquired | 6,038 | ' | ' |
Product Licensing Rights | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Amortization expense | 545 | 471 | 402 |
Weighted-average period prior to next extension or renewal of intangible asset | '72 months | ' | ' |
Product Development Rights | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Amortization expense | $3,980 | $3,926 | $1,547 |
Schedule_of_Intangible_Assets_
Schedule of Intangible Assets (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Definite-lived intangible assets, Gross carrying amount | $9,193 | $5,818 | ' |
Definite-lived intangible assets, Accumulated amortization | -2,087 | -1,541 | ' |
Definite-lived intangible assets, net | 7,106 | 4,277 | ' |
Intangible assets, Gross carrying amount | 10,413 | 5,818 | ' |
Intangible assets, Accumulated amortization | -2,087 | -1,541 | ' |
Intangible assets, net | 8,326 | 4,277 | ' |
IPR&D | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Indefinite-lived IPR&D, Gross carrying amount | 1,220 | ' | ' |
Indefinite-lived IPR&D, Accumulated amortization | ' | ' | ' |
Indefinite-lived IPR&D, Intangible assets, net | 1,220 | ' | ' |
Product Licensing Rights | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Definite-lived intangible assets, Gross carrying amount | 5,941 | 3,156 | ' |
Definite-lived intangible assets, Accumulated amortization | -2,087 | -1,541 | ' |
Definite-lived intangible assets, net | 3,854 | 1,615 | 1,458 |
Intangible assets, Accumulated amortization | -545 | -471 | -402 |
Product Development Rights | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Definite-lived intangible assets, Gross carrying amount | 3,252 | 2,662 | ' |
Definite-lived intangible assets, net | 3,252 | 2,662 | 3,968 |
Intangible assets, Accumulated amortization | ($3,980) | ($3,926) | ($1,547) |
Movements_in_Intangible_Assets
Movements in Intangible Assets (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Intangible Assets Disclosure [Line Items] | ' | ' | ' |
Beginning Balance | $4,277 | ' | ' |
Amortization of product rights | -2,087 | -1,541 | ' |
Ending Balance | 7,106 | 4,277 | ' |
IPR&D | ' | ' | ' |
Intangible Assets Disclosure [Line Items] | ' | ' | ' |
Balance at December 31 | 1,220 | ' | ' |
IPR&D | Sagent Agila product acquisitions | ' | ' | ' |
Intangible Assets Disclosure [Line Items] | ' | ' | ' |
Sagent Agila product acquisitions | 1,220 | ' | ' |
Product Licensing Rights | ' | ' | ' |
Intangible Assets Disclosure [Line Items] | ' | ' | ' |
Beginning Balance | 1,615 | 1,458 | ' |
Acquisition of product rights | 604 | 628 | ' |
Amortization of product rights | -545 | -471 | -402 |
Ending Balance | 3,854 | 1,615 | 1,458 |
Product Licensing Rights | Sagent Agila product acquisitions | ' | ' | ' |
Intangible Assets Disclosure [Line Items] | ' | ' | ' |
Acquisition of product rights | 2,180 | ' | ' |
Product Development Rights | ' | ' | ' |
Intangible Assets Disclosure [Line Items] | ' | ' | ' |
Beginning Balance | 2,662 | 3,968 | ' |
Acquisition of product rights | 4,570 | 2,620 | ' |
Amortization of product rights | -3,980 | -3,926 | -1,547 |
Ending Balance | $3,252 | $2,662 | $3,968 |
Schedule_of_Estimate_Amortizat
Schedule of Estimate Amortization Expense over Each of the Next Five Years (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Finite-Lived Intangible Assets [Line Items] | ' |
For the year ending December 31, 2014 | $4,102 |
For the year ending December 31, 2015 | 538 |
For the year ending December 31, 2016 | 511 |
For the year ending December 31, 2017 | 487 |
For the year ending December 31, 2018 | $463 |
Accrued_Liabilities_Detail
Accrued Liabilities (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Accrued Liabilities [Line Items] | ' | ' |
Payroll and employee benefits | $6,143 | $1,211 |
Sales and marketing | 5,305 | 5,649 |
Taxes payable | 895 | ' |
Other accrued liabilities | 661 | 509 |
Accrued Liabilities, Total | $13,004 | $7,369 |
Debt_Additional_Information_De
Debt - Additional Information (Detail) | 12 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2011 | Jun. 04, 2013 | Jun. 04, 2013 | Jun. 04, 2013 | Jun. 04, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Jan. 02, 2014 | Jan. 02, 2014 | Dec. 31, 2010 | Dec. 31, 2009 | Dec. 31, 2011 | Mar. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2011 | Mar. 31, 2011 | Mar. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Feb. 29, 2012 | Feb. 29, 2012 | Feb. 29, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | |
USD ($) | CNY | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Loan Contract One | Loan Contract One | Loan Contract Two | Loan Contract Two | Credit Facility One | Credit Facility Two | Subsequent Event | Subsequent Event | Midcap Financial, LLC | Midcap Financial, LLC | Midcap Financial, LLC | Midcap Financial, LLC | Midcap Financial, LLC | MidCap Financial Llc and Silicon Valley Bank | MidCap Financial Llc and Silicon Valley Bank | MidCap Financial Llc and Silicon Valley Bank | Silicon Valley Bank Loan And Security Agreement | Silicon Valley Bank Loan And Security Agreement | Silicon Valley Bank Loan And Security Agreement | Silicon Valley Bank Loan And Security Agreement | Silicon Valley Bank Loan And Security Agreement | SVB Agreement | SVB Agreement | SVB Agreement | |
London Interbank Offered Rate (LIBOR) | Base Rate | USD ($) | CNY | USD ($) | CNY | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Term Loan Credit Facilty | After Amendment | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Minimum | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | USD ($) | Revolving Credit Facility | ||||||||
USD ($) | CNY | USD ($) | USD ($) | USD ($) | USD ($) | Revolving Credit Facility | USD ($) | London Interbank Offered Rate (LIBOR) | USD ($) | USD ($) | Base Rate | Eurodollar | USD ($) | ||||||||||||||||
USD ($) | |||||||||||||||||||||||||||||
Line of Credit Facility [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loan contracts assumed in a business combination | ' | ' | ' | ' | ' | $6,069,000 | 37,000,000 | $13,613,000 | 83,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period of loan contract | '5 years | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding ABC loan amount | 10,333,000 | 63,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
ABC loan, interest rate | 6.00% | 6.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt covenant, maximum liquidity ratio that triggers acceleration of repayment | ' | ' | ' | ' | ' | ' | ' | ' | ' | 70.00% | 80.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt covenant, projected revenue below which triggers acceleration of repayment | 50.00% | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repayment of outstanding balance of credit facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,300,000 | 63,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit facility, borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15,000,000 | ' | 15,000,000 | 25,000,000 | ' | 15,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit facility, maturity period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2012-06 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit facility, increased borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit facility, maturity period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2013-06 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit facility, receivable and inventory balances borrowing basis | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 24,867,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basis Spread on Variable Rate | ' | ' | ' | 5.50% | 4.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9.00% | ' | ' | ' | 1.50% | 2.50% | ' | ' | ' |
Interest rate on the revolver | ' | ' | 8.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit facility, London Interbank Offered Rate floor | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit facility, minimum cash balance required to be maintained | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit facility, percentage of cash at a single financial institution required to be maintained | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 65.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Financing fees paid | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount available under revolving credit facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 40,000,000 | ' | ' | ' | ' | ' |
Agreement maturity date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 13-Feb-16 | ' | ' | ' | ' | ' |
Commitment fee on undrawn amounts | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.30% | ' | ' | ' | ' | ' |
Credit facility, interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.00% | ' | ' |
Covenant fee | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000 |
Borrowings outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | 0 |
Early termination fees | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,500,000 |
Exit fees with term loan credit facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 600,000 | ' |
Fees own under deferred termination event | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,050,000 | ' |
Deferred financing costs within interest expense, early termination fees | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,124,000 | ' |
Loan and security agreement date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 23-Sep-13 | ' | ' | ' | ' | ' | ' | ' |
Minimum cash requirement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $30,000,000 | ' | ' | ' | ' | ' | ' |
Summary_of_Assets_Measured_at_
Summary of Assets Measured at Fair Value on Recurring Basis (Detail) (Assets measured at fair value on a recurring basis, USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total assets | $125,402 | $54,746 |
Contingent purchase consideration | 200 | ' |
Money market funds | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total assets | 11,592 | 18,141 |
Corporate bonds and notes | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total assets | 92,516 | 13,358 |
Commercial paper | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total assets | 21,294 | 23,247 |
Short-term investments | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total assets | 113,810 | 36,605 |
Quoted prices in active markets for identical assets (Level 1) | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total assets | 11,592 | 18,141 |
Quoted prices in active markets for identical assets (Level 1) | Money market funds | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total assets | 11,592 | 18,141 |
Significant other observable inputs (Level 2) | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total assets | 113,810 | 36,605 |
Significant other observable inputs (Level 2) | Corporate bonds and notes | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total assets | 92,516 | 13,358 |
Significant other observable inputs (Level 2) | Commercial paper | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total assets | 21,294 | 23,247 |
Significant other observable inputs (Level 2) | Short-term investments | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total assets | 113,810 | 36,605 |
Significant unobservable inputs (Level 3) | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Contingent purchase consideration | $200 | ' |
Summary_of_Fair_Value_of_Prefe
Summary of Fair Value of Preferred Stock Warrants Measured Using Significant Unobservable Inputs (Detail) (Contingent Consideration Liability, USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
Contingent Consideration Liability | ' |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' |
Issuance of contingent purchase consideration | $200 |
Change in fair value of contingent purchase consideration | ' |
Payment of contingent purchase consideration | ' |
Balance at end of period | $200 |
Employee_Benefit_Plan_Addition
Employee Benefit Plan - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
401(k) Plan, matching contribution percentage | 50.00% | ' | ' |
401(k) Plan, maximum contribution percentage | 6.00% | ' | ' |
401(k) Plan, employer contribution vesting period | '3 years | ' | ' |
401(k) Plan, total matching contribution | $338 | $340 | $310 |
401(k) Plan, employer discretionary contribution | $0 | $0 | $0 |
Preferred_Stock_and_Stockholde1
Preferred Stock and Stockholders' Equity - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | 1 Months Ended | 1 Months Ended | ||||||||||||||
In Thousands, except Share data, unless otherwise specified | Sep. 16, 2013 | Apr. 30, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Apr. 30, 2011 | Dec. 31, 2013 | Apr. 25, 2011 | Dec. 31, 2010 | Dec. 31, 2013 | Apr. 25, 2011 | Mar. 31, 2010 | Dec. 31, 2013 | Apr. 25, 2011 | Aug. 31, 2010 | Apr. 30, 2010 | Aug. 31, 2010 | Aug. 31, 2010 |
Warrant | Series A Preferred Stock | Series A Preferred Stock | Series A Preferred Stock | Series B Preferred Stock | Series B Preferred Stock | Series B Preferred Stock | Series B1 Preferred Stock | Series B1 Preferred Stock | Series B1 Preferred Stock | Series B1 Preferred Stock | Series B1 Preferred Stock | Series B1 Preferred Stock | ||||||
Warrant 1 | Warrant 2 | |||||||||||||||||
Equity Structure And Transactions [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock shares authorized | ' | ' | 100,000,000 | 100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock share reserved for outstanding stock options | ' | ' | 5,892,670 | 5,892,670 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock shares issued upon exercise of preferred stock warrants | 3,542,470 | ' | ' | ' | ' | 454,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of common stock, per share | $21.25 | ' | $25.38 | ' | ' | ' | ' | ' | $1 | ' | ' | $1.40 | ' | ' | $1.40 | $1.40 | ' | ' |
Fair value of the common stock | $75,277 | ' | $70,580 | ' | $97,871 | $7,272 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from the offering, net of the underwriting discount and expenses | 70,580 | ' | 71,247 | 995 | 101,551 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock, shares authorized | ' | ' | 5,000,000 | ' | ' | ' | ' | 113,000,000 | ' | ' | 7,000,000 | ' | ' | 30,136,052 | ' | ' | ' | ' |
Preferred stock, shares issued | ' | ' | 0 | ' | ' | ' | ' | ' | 113,000,000 | ' | ' | 7,000,000 | ' | ' | 25,714,284 | 25,714,284 | ' | ' |
Conversion ratio of preferred shares to common stock shares | ' | ' | 0.12759 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock, shares outstanding | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock, redemption value | ' | ' | ' | ' | ' | ' | $1 | ' | ' | $1.40 | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock, warrants issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,380,952 | 2,040,816 |
Preferred stock, warrants price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2.10 | $2.45 |
Preferred stock, warrants issued expiration period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '4 years | ' | ' | ' | ' | ' |
Cash received | ' | $5,001 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Currency translation adjustment, net of tax | $496 | $2,488 | $2,251 |
Unrealized gain (loss) on available for sale securities, net of tax | -9 | 12 | -89 |
Accumulated other comprehensive income | $487 | $2,500 | $2,162 |
Component_of_Accumulated_Other
Component of Accumulated Other Comprehensive Income (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2011 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Balance as of December 31, 2012 | $2,500 | $2,162 |
Other comprehensive income (loss) before reclassifications | 769 | ' |
Amounts reclassified from accumulated other comprehensive income (loss) | -2,782 | ' |
Net current-period other comprehensive loss | -2,013 | ' |
Balance as of December 31, 2013 | 487 | 2,162 |
Currency translation adjustment | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Balance as of December 31, 2012 | 2,488 | ' |
Other comprehensive income (loss) before reclassifications | 790 | ' |
Amounts reclassified from accumulated other comprehensive income (loss) | -2,782 | ' |
Net current-period other comprehensive loss | -1,992 | ' |
Balance as of December 31, 2013 | 496 | ' |
Unrealized gains (losses) on available for sale securities | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Balance as of December 31, 2012 | 12 | ' |
Other comprehensive income (loss) before reclassifications | -21 | ' |
Net current-period other comprehensive loss | -21 | ' |
Balance as of December 31, 2013 | ($9) | ' |
Amounts_Reclassified_Out_of_Ac
Amounts Reclassified Out of Accumulated Other Comprehensive Income (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' |
Total reclassification for the year ended December 31, 2013, net of tax | $2,782 |
Reclassification out of Accumulated Other Comprehensive Income | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' |
Gain on previously held equity interest | $2,782 |
Earnings_Per_Share_Additional_
Earnings Per Share - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Anti-dilutive share excluded from the calculation of diluted earnings | 1,194,717 | 2,280,106 | 2,151,135 |
Schedule_of_Calculation_of_Num
Schedule of Calculation of Numerator and Denominator in Earnings Per Share (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Basic and dilutive numerator | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (loss), as reported | $3,560 | $2,826 | $13,370 | $9,838 | ($62) | ($3,750) | ($4,716) | ($8,289) | $29,594 | ($16,817) | ($26,422) |
Denominator | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average common shares outstanding - basic (in thousands) | 31,776 | 28,745 | 28,163 | 28,135 | 28,092 | 27,977 | 27,936 | 27,915 | 29,213 | 27,980 | 20,105 |
Net effect of dilutive securities Stock options and restricted stock | ' | ' | ' | ' | ' | ' | ' | ' | 724 | ' | ' |
Weighted average common shares outstanding - diluted (in thousands) | 32,609 | 29,568 | 28,828 | 28,746 | 28,092 | 27,977 | 27,936 | 27,915 | 29,937 | 27,980 | 20,105 |
Net income (loss) per common share (basic) | $0.11 | $0.10 | $0.47 | $0.35 | $0 | ($0.13) | ($0.17) | ($0.30) | $1.01 | ($0.60) | ($1.31) |
Net income (loss) per common share (diluted) | $0.11 | $0.10 | $0.46 | $0.34 | $0 | ($0.13) | ($0.17) | ($0.30) | $0.99 | ($0.60) | ($1.31) |
Stock_Based_Compensation_Addit
Stock- Based Compensation - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Equity awards, vesting period | '4 years | ' | ' |
Stock options, expiration period | '10 years | ' | ' |
Weighted-average remaining contractual lives of options outstanding | '7 years 2 months 12 days | '7 years 9 months 18 days | '8 years 6 months |
Weighted-average remaining contractual lives of options exercisable | '6 years 6 months | '6 years 10 months 24 days | '7 years 4 months 24 days |
Intrinsic value of stock options exercised | $1,860 | $2,210 | $2,100 |
Fair value of options vested | 5,036 | 3,388 | 2,476 |
Unrecognized stock-based compensation | 6,903 | ' | ' |
Stock Options | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Equity awards, vesting period | '4 years | ' | ' |
Stock options, expiration period | '10 years | ' | ' |
Unrecognized stock-based compensation, average period recognized | '2 years 3 months 18 days | ' | ' |
Restricted Stock Awards | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Unrecognized stock-based compensation related to restricted stock | $1,257 | ' | ' |
Unrecognized stock-based compensation, average period recognized | '33 months | ' | ' |
Equity Incentive Plan Twenty Zero Seven | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Incentive compensation plan, shares authorized | 2,475,184 | ' | ' |
Incentive compensation plan, shares available for grant | 413,036 | ' | ' |
Equity Incentive Plan Twenty Eleven | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Incentive compensation plan, shares authorized | 4,000,000 | ' | ' |
Incentive compensation plan, shares available for grant | 2,600,488 | ' | ' |
Restricted_Stock_Activity_Deta
Restricted Stock Activity (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Weighted-Average Grant Date Fair Value | ' | ' | ' |
Granted | $9.31 | $10.67 | $11.15 |
Restricted Stock Awards | ' | ' | ' |
Restricted stock | ' | ' | ' |
Beginning Balance | 50,039 | ' | ' |
Granted | 56,224 | ' | ' |
Vested | -9,677 | ' | ' |
Forfeited | -7,378 | ' | ' |
Ending Balance | 89,208 | ' | ' |
Weighted-Average Grant Date Fair Value | ' | ' | ' |
Beginning Balance | $19.93 | ' | ' |
Granted | $16.65 | ' | ' |
Vested | $14.92 | ' | ' |
Forfeited | $9.31 | ' | ' |
Ending Balance | $18.64 | ' | ' |
WeightedAverage_Assumptions_Us
Weighted-Average Assumptions Used in Calculating Estimated Values (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Risk free interest rate | 1.24% | 1.05% | 1.47% |
Expected life | '6 years | '6 years | '6 years |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Expected volatility | 62.00% | 61.00% | 61.00% |
Fair value at grant date | $9.31 | $10.67 | $11.15 |
Stock_Options_Outstanding_Vest
Stock Options Outstanding Vested and Expected to Vest (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Sep. 16, 2013 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | |
Vested and expected to vest, Number of shares | 2,461,160 | ' | |
Vested and expected to vest, Weighted-Average Exercise Price | $13.59 | ' | |
Vested and expected to vest, Weighted-Average Remaining Contractual Term | '7 years 2 months 12 days | ' | |
Vested and expected to vest, Aggregate Intrinsic Value | $29,047 | [1] | ' |
Fair value of stock | $25.38 | $21.25 | |
Options Vested | ' | ' | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | |
Vested and expected to vest, Number of shares | 1,450,992 | ' | |
Vested and expected to vest, Weighted-Average Exercise Price | $10.75 | ' | |
Vested and expected to vest, Weighted-Average Remaining Contractual Term | '6 years 6 months | ' | |
Vested and expected to vest, Aggregate Intrinsic Value | 21,242 | [1] | ' |
Options Expected To Vest | ' | ' | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | |
Vested and expected to vest, Number of shares | 1,010,168 | ' | |
Vested and expected to vest, Weighted-Average Exercise Price | $17.67 | ' | |
Vested and expected to vest, Weighted-Average Remaining Contractual Term | '8 years 3 months 18 days | ' | |
Vested and expected to vest, Aggregate Intrinsic Value | $7,805 | [1] | ' |
[1] | The Aggregate Intrinsic Value amounts represent the difference between the exercise price and $25.38, the fair value of our stock on December 31, 2013, for in-the-money options. |
Stock_Option_Activity_Detail
Stock Option Activity (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | |
Options Outstanding | Options Exercisable | Options Exercisable | |
Number of shares | ' | ' | ' |
Beginning Balance | 2,236,128 | 1,450,992 | 982,179 |
Granted | 399,774 | ' | ' |
Exercised | -120,712 | ' | ' |
Forfeited | -54,040 | ' | ' |
Ending Balance | 2,461,160 | 1,450,992 | 982,179 |
Weighted-Average Exercise Price | ' | ' | ' |
Beginning Balance | $12.62 | $10.75 | $7.60 |
Granted | $17.08 | ' | ' |
Exercised | $6.25 | ' | ' |
Forfeited | $15.57 | ' | ' |
Ending Balance | $13.59 | $10.75 | $7.60 |
Schedule_of_Net_Amount_of_Risk
Schedule of Net Amount of Risk by Product and Guarantee (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Product Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenue by Product Line | $64,106 | $60,842 | $59,591 | $60,211 | $53,226 | $49,429 | $42,680 | $38,280 | $244,750 | $183,615 | $152,405 |
Anti-infective | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Product Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenue by Product Line | ' | ' | ' | ' | ' | ' | ' | ' | 90,604 | 81,923 | 63,476 |
Critical care | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Product Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenue by Product Line | ' | ' | ' | ' | ' | ' | ' | ' | 65,612 | 71,683 | 54,489 |
Oncology | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Product Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenue by Product Line | ' | ' | ' | ' | ' | ' | ' | ' | $88,534 | $30,009 | $34,440 |
Geographic_Data_for_Net_Revenu
Geographic Data for Net Revenue (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenue | $64,106 | $60,842 | $59,591 | $60,211 | $53,226 | $49,429 | $42,680 | $38,280 | $244,750 | $183,615 | $152,405 |
United States | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenue | ' | ' | ' | ' | ' | ' | ' | ' | 244,272 | 183,615 | 152,405 |
Others | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenue | ' | ' | ' | ' | ' | ' | ' | ' | $478 | ' | ' |
Geographic_Data_for_LongLived_
Geographic Data for Long-Lived Assets (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | |||
Segment Reporting Information [Line Items] | ' | ' | ' |
Long-lived assets | $74,417 | $25,047 | $29,662 |
United States | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Long-lived assets | 17,401 | 25,047 | 29,662 |
China | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Long-lived assets | $57,016 | ' | ' |
Components_of_Loss_Before_Inco
Components of Loss Before Income Taxes (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Schedule of Income Before Income Tax [Line Items] | ' | ' | ' |
Domestic | $36,671 | ($16,817) | ($24,066) |
Foreign | -6,182 | ' | -2,356 |
Income (loss) before income taxes | $30,489 | ($16,817) | ($26,422) |
Net_Operating_Loss_Carry_Forwa
Net Operating Loss Carry Forwards (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Operating Loss Carryforwards [Line Items] | ' |
Net Operating Loss Carryforwards | $38,897 |
Expiration Date Two Thousand Thirty | ' |
Operating Loss Carryforwards [Line Items] | ' |
Net Operating Loss Carryforwards | 16,967 |
Expiration Date Two Thousand Thirty One | ' |
Operating Loss Carryforwards [Line Items] | ' |
Net Operating Loss Carryforwards | 13,256 |
Expiring in Twenty Thirty Two | ' |
Operating Loss Carryforwards [Line Items] | ' |
Net Operating Loss Carryforwards | $8,674 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
Income Tax Disclosure [Line Items] | ' |
Net Operating Loss Carryforwards | $38,897 |
Provision for income taxes | 895 |
Fourth Quarter Correction Of AMT Expense | ' |
Income Tax Disclosure [Line Items] | ' |
Provision for income taxes | 707 |
Net Operating Loss Carryforwards Expiring Between 2014 and 2018 | ' |
Income Tax Disclosure [Line Items] | ' |
Net Operating Loss Carryforwards | 27,678 |
Windfall Tax Benefits Not Reflected | ' |
Income Tax Disclosure [Line Items] | ' |
Loss and credit carryforwards | $940 |
Reconciliation_of_Income_Tax_P
Reconciliation of Income Tax Provision (Benefit) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Reconciliation Of Income Taxes [Line Items] | ' | ' | ' |
Provision (benefit) at statutory rate | $10,366 | ($5,718) | ($8,983) |
State income taxes, net of federal income tax | 230 | -37 | -236 |
Foreign rate differential | 560 | ' | 801 |
Valuation allowance | -9,998 | 4,561 | 7,799 |
Permanent book / tax differences | -263 | 1,194 | 619 |
Provision for income taxes | $895 | ' | ' |
Deferred_Income_Tax_Assets_and
Deferred Income Tax Assets and Liabilities (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ' | ' |
Product development and start-up costs | $12,039 | $10,142 |
Inventory | 2,652 | 2,000 |
Loss and credit carryforwards | 21,521 | 30,233 |
Bad debt reserves | 8 | 400 |
Accrued expenses / other | 3,210 | 2,487 |
Deferred compensation | 2,281 | 1,512 |
Alternative minimum tax carryforwards | 895 | ' |
Total deferred tax assets | 42,606 | 46,774 |
Deferred tax liabilities: | ' | ' |
Depreciation | -497 | -117 |
Total deferred tax liabilities | -497 | -117 |
Net deferred tax asset | 42,109 | 46,657 |
Valuation allowance | -42,109 | -46,657 |
Net deferred tax assets (liabilities) | ' | ' |
Classification_of_Net_Deferred
Classification of Net Deferred Tax Assets and Liabilities (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Schedule of Deferred Tax Assets and Liabilities [Line Items] | ' | ' |
Current assets | $6 | $6 |
Noncurrent liabilities | -6 | -6 |
Net deferred tax assets (liabilities) | ' | ' |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional information (Detail) (USD $) | 12 Months Ended | 1 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2013 | Feb. 28, 2010 | Apr. 30, 2009 |
Dobfar Spa | Dobfar Spa | Dobfar Spa | Dobfar Switzerland | Gland Pharma Limited | Actavis | Actavis | Actavis | ||||
Cefepime | Product currently marketed | Product currently marketed | Product | Product | Product | ||||||
Product | Product | ||||||||||
Commitments and Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Agreement, initial expiration date | ' | ' | ' | 7-Jul-16 | 1-Apr-15 | ' | ' | ' | ' | ' | ' |
Agreement, optional renewal period | ' | ' | ' | '1 year | ' | ' | ' | '1 year | ' | ' | ' |
Notice period required prior to expiation of renewal term | ' | ' | ' | '6 months | ' | ' | ' | '24 months | ' | ' | ' |
Number of products covered by the agreement | ' | ' | ' | ' | ' | 6 | 3 | ' | ' | 2 | 6 |
Agreement, initial expiration date | ' | ' | ' | ' | ' | ' | ' | '2016-06 | ' | ' | ' |
Number of Products | ' | ' | ' | ' | ' | ' | ' | 4 | ' | ' | ' |
Development, manufacturing and supply agreement, effective termination date | ' | ' | ' | ' | ' | ' | ' | ' | 31-Dec-14 | ' | ' |
Development, manufacturing and supply agreement, one time payment for termination | ' | ' | ' | ' | ' | ' | ' | ' | $5,000 | ' | ' |
Total rental expense | $431 | $467 | $422 | ' | ' | ' | ' | ' | ' | ' | ' |
Contingent_Milestone_Payments_
Contingent Milestone Payments (Detail) (Milestone Payments, USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Milestone Payments | ' |
Licensing Future Miniumum Payments [Line Items] | ' |
2014 | $18,805 |
2015 | 7,528 |
2016 | 2,293 |
2017 | 3,227 |
2018 | 204 |
Thereafter | ' |
Total | $32,057 |
Future_Annual_Minimum_Lease_Pa
Future Annual Minimum Lease Payments Related to Noncancelable Operating Leases (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Schedule of Operating Leases [Line Items] | ' |
2014 | $297 |
2015 | 306 |
2016 | 315 |
Total | $918 |
Related_Party_Transactions_Add
Related Party Transactions - Additional Information (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Related Party Transaction [Line Items] | ' | ' |
Distribution to joint venture partners | $4,318 | $5,155 |
Sagent Agila LLC | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Receivables from related party | 3,644 | 1,404 |
Payable for the acquisition of inventory | 3,129 | 7,026 |
Distribution to joint venture partners | $8,635 | $10,310 |
Quarterly_Financial_Data_Detai
Quarterly Financial Data (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Quarterly Financial Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenue | $64,106 | $60,842 | $59,591 | $60,211 | $53,226 | $49,429 | $42,680 | $38,280 | $244,750 | $183,615 | $152,405 |
Gross profit | 17,259 | 18,587 | 23,218 | 18,458 | 11,618 | 7,221 | 6,506 | 5,762 | 77,522 | 31,107 | 18,769 |
Income from continuing operations | 4,958 | 3,101 | 13,434 | 9,887 | -43 | -3,758 | -4,740 | -6,952 | 31,380 | -15,493 | -21,673 |
Net income | $3,560 | $2,826 | $13,370 | $9,838 | ($62) | ($3,750) | ($4,716) | ($8,289) | $29,594 | ($16,817) | ($26,422) |
Weighted-average shares used to compute net income per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic | 31,776 | 28,745 | 28,163 | 28,135 | 28,092 | 27,977 | 27,936 | 27,915 | 29,213 | 27,980 | 20,105 |
Diluted | 32,609 | 29,568 | 28,828 | 28,746 | 28,092 | 27,977 | 27,936 | 27,915 | 29,937 | 27,980 | 20,105 |
Net income per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic | $0.11 | $0.10 | $0.47 | $0.35 | $0 | ($0.13) | ($0.17) | ($0.30) | $1.01 | ($0.60) | ($1.31) |
Diluted | $0.11 | $0.10 | $0.46 | $0.34 | $0 | ($0.13) | ($0.17) | ($0.30) | $0.99 | ($0.60) | ($1.31) |
Valuation_and_Qualifying_Accou1
Valuation and Qualifying Accounts (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Chargeback Allowance | ' | ' | ' |
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' |
Valuation Allowances and Reserves, Beginning Balance | $24,265 | $28,932 | $13,507 |
Valuation Allowances and Reserves, Charged to Cost and Expense | 300,835 | 166,051 | 167,521 |
Valuation Allowances and Reserves, Deductions | 281,418 | 170,718 | 152,096 |
Valuation Allowances and Reserves, Ending Balance | 43,682 | 24,265 | 28,932 |
Allowance for Cash Discounts | ' | ' | ' |
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' |
Valuation Allowances and Reserves, Beginning Balance | 1,373 | 1,804 | 701 |
Valuation Allowances and Reserves, Charged to Cost and Expense | 12,204 | 7,665 | 8,188 |
Valuation Allowances and Reserves, Deductions | 11,163 | 8,096 | 7,085 |
Valuation Allowances and Reserves, Ending Balance | 2,414 | 1,373 | 1,804 |
Allowance for Credits | ' | ' | ' |
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' |
Valuation Allowances and Reserves, Beginning Balance | 3,262 | 1,940 | 1,880 |
Valuation Allowances and Reserves, Charged to Cost and Expense | 6,760 | 3,539 | 1,458 |
Valuation Allowances and Reserves, Deductions | 5,127 | 2,217 | 1,398 |
Valuation Allowances and Reserves, Ending Balance | 4,895 | 3,262 | 1,940 |
Deferred Tax Valuation Allowance | ' | ' | ' |
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' |
Valuation Allowances and Reserves, Beginning Balance | 46,657 | 40,816 | 32,937 |
Valuation Allowances and Reserves, Charged to Cost and Expense | 1,158 | 5,841 | 7,879 |
Valuation Allowances and Reserves, Charged to Other Accounts | 5,843 | ' | ' |
Valuation Allowances and Reserves, Deductions | 11,549 | ' | ' |
Valuation Allowances and Reserves, Ending Balance | 42,109 | 46,657 | 40,816 |
Inventory Reserve Allowance | ' | ' | ' |
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' |
Valuation Allowances and Reserves, Beginning Balance | 2,021 | 6,443 | 846 |
Valuation Allowances and Reserves, Charged to Cost and Expense | 3,078 | ' | 5,597 |
Valuation Allowances and Reserves, Deductions | ' | 4,422 | ' |
Valuation Allowances and Reserves, Ending Balance | 5,099 | 2,021 | 6,443 |
Allowance for doubtful accounts | ' | ' | ' |
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' |
Valuation Allowances and Reserves, Beginning Balance | 124 | ' | ' |
Valuation Allowances and Reserves, Charged to Cost and Expense | ' | 124 | ' |
Valuation Allowances and Reserves, Deductions | 101 | ' | ' |
Valuation Allowances and Reserves, Ending Balance | $23 | $124 | ' |