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 | 'PBYI | ' | ' |
Entity Registrant Name | 'PUMA BIOTECHNOLOGY, INC. | ' | ' |
Entity Central Index Key | '0001401667 | ' | ' |
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 | 'Large Accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 30,117,819 | ' |
Entity Public Float | ' | ' | $703,209,481 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $43,044 | $137,408 |
Marketable securities | 40,904 | ' |
Licensor receivable | 9,813 | 10,612 |
Prepaid expenses and other, current | 2,635 | 952 |
Total current assets | 96,396 | 148,972 |
Property and equipment, net | 1,684 | 1,479 |
Prepaid expenses and other, long-term | 5,080 | 36 |
Restricted cash | 1,214 | 1,212 |
Total assets | 104,374 | 151,699 |
Current liabilities: | ' | ' |
Accounts payable | 10,692 | 482 |
Accrued expenses | 8,579 | 21,219 |
Total current liabilities | 19,271 | 21,701 |
Deferred rent | 1,116 | 1,089 |
Total liabilities | 20,387 | 22,790 |
Commitments and contingencies (Note 9) | ' | ' |
Stockholders' equity: | ' | ' |
Common stock-$.0001 par value; 100,000,000 shares authorized; 28,991,289 issued and outstanding at December 31, 2013, and 28,676,666 issued and outstanding at December 31, 2012 | 3 | 3 |
Additional paid-in capital | 223,232 | 213,498 |
Accumulated other comprehensive income | 3 | ' |
Deficit accumulated during the development stage | -139,251 | -84,592 |
Total stockholders' equity | 83,987 | 128,909 |
Total liabilities and stockholders' equity | $104,374 | $151,699 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 28,991,289 | 28,676,666 |
Common stock, shares outstanding | 28,991,289 | 28,676,666 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | 39 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 |
Operating expenses: | ' | ' | ' | ' |
General and administrative | $9,787 | $24,814 | $9,331 | $43,939 |
Research and development | 45,046 | 49,636 | 826 | 95,508 |
Totals | 54,833 | 74,450 | 10,157 | 139,447 |
Loss from operations | -54,833 | -74,450 | -10,157 | -139,447 |
Other income (expenses): | ' | ' | ' | ' |
Interest income | 172 | 98 | 4 | 274 |
Other income (expense) | 2 | ' | -80 | -78 |
Totals | 174 | 98 | -76 | 196 |
Net loss | -54,659 | -74,352 | -10,233 | -139,251 |
Net loss applicable to common stock | ($54,659) | ($74,352) | ($10,233) | ($139,251) |
Net loss per common share-basic and diluted | ($1.90) | ($3.42) | ($1.32) | ' |
Weighted-average common shares outstanding-basic and diluted | 28,696,573 | 21,725,986 | 7,746,529 | ' |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Loss (USD $) | 12 Months Ended | 39 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 |
Net loss | ($54,659) | ($74,352) | ($10,233) | ($139,251) |
Other comprehensive income (loss) | ' | ' | ' | ' |
Unrealized gain on available-for-sale securities | 3 | ' | ' | 3 |
Comprehensive loss | ($54,656) | ($74,352) | ($10,233) | ($139,248) |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | Total | Private Placement | Public Offering | Common Stock | Common Stock | Common Stock | Common Stock | Additional Paid-in Capital | Additional Paid-in Capital | Additional Paid-in Capital | Accumulated Other Comprehensive Development Income | Deficit Accumulated During the Stage |
USD ($) | USD ($) | USD ($) | USD ($) | Cash | Private Placement | Public Offering | USD ($) | Private Placement | Public Offering | USD ($) | USD ($) | |
USD ($) | USD ($) | USD ($) | USD ($) | |||||||||
Beginning Balance at Sep. 15, 2010 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of common stock (in shares) | ' | ' | ' | ' | 4,000,000 | ' | ' | ' | ' | ' | ' | ' |
Paid-in capital | $7,000 | ' | ' | ' | ' | ' | ' | $7,000 | ' | ' | ' | ' |
Net loss | -7,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -7,000 |
Ending Balance at Dec. 31, 2010 | ' | ' | ' | ' | ' | ' | ' | 7,000 | ' | ' | ' | -7,000 |
Ending Balance (in shares) at Dec. 31, 2010 | ' | ' | ' | 4,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of common stock (in shares) | ' | ' | ' | ' | ' | 16,000,000 | ' | ' | ' | ' | ' | ' |
Paid-in capital | 61,000 | ' | ' | ' | ' | ' | ' | 61,000 | ' | ' | ' | ' |
Issuance of common stock | ' | 56,741,000 | ' | ' | ' | 2,000 | ' | ' | 56,739,000 | ' | ' | ' |
Conversion of stockholder's note payable to equity (in shares) | ' | ' | ' | 40,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Conversion of stockholder's note payable to equity | 150,000 | ' | ' | ' | ' | ' | ' | 150,000 | ' | ' | ' | ' |
Stock option compensation | 67,000 | ' | ' | ' | ' | ' | ' | 67,000 | ' | ' | ' | ' |
Anti-dilutive warrant | 7,586,000 | ' | ' | ' | ' | ' | ' | 7,586,000 | ' | ' | ' | ' |
Net loss | -10,233,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -10,233,000 |
Ending Balance at Dec. 31, 2011 | 54,372,000 | ' | ' | 2,000 | ' | ' | ' | 64,610,000 | ' | ' | ' | -10,240,000 |
Ending Balance (in shares) at Dec. 31, 2011 | ' | ' | ' | 20,040,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of common stock (in shares) | ' | ' | ' | ' | ' | ' | 8,625,000 | ' | ' | ' | ' | ' |
Issuance of common stock | ' | ' | 129,214,000 | ' | ' | ' | 1,000 | ' | ' | 129,213,000 | ' | ' |
Stock option compensation | 1,408,000 | ' | ' | ' | ' | ' | ' | 1,408,000 | ' | ' | ' | ' |
Anti-dilutive warrant | 18,222,000 | ' | ' | ' | ' | ' | ' | 18,222,000 | ' | ' | ' | ' |
Exercises of stock options (in shares) | 11,666 | ' | ' | 11,666 | ' | ' | ' | ' | ' | ' | ' | ' |
Exercises of stock options | 45,000 | ' | ' | ' | ' | ' | ' | 45,000 | ' | ' | ' | ' |
Net loss | -74,352,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -74,352,000 |
Ending Balance at Dec. 31, 2012 | 128,909,000 | ' | ' | 3,000 | ' | ' | ' | 213,498,000 | ' | ' | ' | -84,592,000 |
Ending Balance (in shares) at Dec. 31, 2012 | ' | ' | ' | 28,676,666 | ' | ' | ' | ' | ' | ' | ' | ' |
Stock option compensation | 7,519,000 | ' | ' | ' | ' | ' | ' | 7,519,000 | ' | ' | ' | ' |
Exercises of stock options (in shares) | 314,623 | ' | ' | 314,623 | ' | ' | ' | ' | ' | ' | ' | ' |
Exercises of stock options | 2,215,000 | ' | ' | ' | ' | ' | ' | 2,215,000 | ' | ' | ' | ' |
Unrealized gain on available for sale securities | 3,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,000 | ' |
Net loss | -54,659,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -54,659,000 |
Ending Balance at Dec. 31, 2013 | $83,987,000 | ' | ' | $3,000 | ' | ' | ' | $223,232,000 | ' | ' | $3,000 | ($139,251,000) |
Ending Balance (in shares) at Dec. 31, 2013 | ' | ' | ' | 28,991,289 | ' | ' | ' | ' | ' | ' | ' | ' |
Consolidated_Statements_of_Sto1
Consolidated Statements of Stockholders' Equity (Parenthetical) (USD $) | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2010 | Dec. 31, 2012 | Dec. 31, 2011 | |
Issuance of common stock, per share | $0.00 | $16 | $3.75 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | 39 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 |
Operating activities: | ' | ' | ' | ' |
Net loss | ($54,659) | ($74,352) | ($10,233) | ($139,251) |
Adjustments to reconcile net loss to net cash used in operating activities: | ' | ' | ' | ' |
Depreciation and amortization | 423 | 265 | 11 | 699 |
Build-out allowance received from landlord | ' | 464 | 439 | 903 |
Stock option expense | 7,519 | 1,408 | 67 | 8,994 |
Anti-dilutive warrant | ' | 18,222 | 7,586 | 25,808 |
Changes in operating assets and liabilities: | ' | ' | ' | ' |
Licensor receivable | 799 | -10,612 | ' | -9,813 |
Prepaid expenses and other | -6,727 | -707 | -281 | -7,715 |
Accounts payable | 10,210 | 395 | 87 | 10,692 |
Accrued expenses | -12,640 | 20,719 | 500 | 8,579 |
Accrual of deferred rent | 27 | 186 | ' | 213 |
Net cash used in operating activities | -55,048 | -44,012 | -1,824 | -100,891 |
Investing activities: | ' | ' | ' | ' |
Purchase of property and equipment | -624 | -591 | -254 | -1,469 |
Expenditures for leasehold improvements | -4 | -471 | -439 | -914 |
Restricted cash | -2 | -159 | -1,053 | -1,214 |
Purchase of available-for-sale securities | -49,347 | ' | ' | -49,347 |
Sale/maturity of available-for-sale securities | 8,446 | ' | ' | 8,446 |
Net cash used in investing activities | -41,531 | -1,221 | -1,746 | -44,498 |
Financing activities: | ' | ' | ' | ' |
Proceeds from issuance of stockholder's convertible notepayable | ' | ' | 150 | 150 |
Net proceeds from issuance of common stock | ' | 129,214 | 56,741 | 185,955 |
Net proceeds from exercise of options | 2,215 | 45 | ' | 2,260 |
Capital contributions by stockholder | ' | ' | 61 | 68 |
Net cash provided by financing activities | 2,215 | 129,259 | 56,952 | 188,433 |
Net (decrease) increase in cash and cash equivalents | -94,364 | 84,026 | 53,382 | 43,044 |
Cash and cash equivalents, beginning of period | 137,408 | 53,382 | ' | ' |
Cash and cash equivalents, end of period | 43,044 | 137,408 | 53,382 | 43,044 |
Supplemental disclosures of non-cash investing and financing activities: | ' | ' | ' | ' |
Conversion of stockholder's note payable to common stock | ' | ' | $150 | $150 |
Business_and_Basis_of_Presenta
Business and Basis of Presentation | 12 Months Ended |
Dec. 31, 2013 | |
Business and Basis of Presentation | ' |
Note 1—Business and Basis of Presentation: | |
Business: | |
Puma Biotechnology, Inc., or Puma, is a development stage biopharmaceutical company based in Los Angeles, California. References in these Notes to Consolidated Financial Statements to the “Company” refer to Puma Biotechnology, Inc., a private Delaware company formed on September 15, 2010, for periods prior to the Merger (as defined below), which took place on October 4, 2011, and Puma Biotechnology, Inc., a Delaware company formed on April 27, 2007, and formerly known as Innovative Acquisitions Corp., for periods following the Merger. The Company is a development stage biopharmaceutical company with a focus on the acquisition, development and commercialization of innovative products to enhance cancer care. The Company focuses on in-licensing drug candidates that are undergoing or have already completed initial clinical testing for the treatment of cancer and then seeks to further develop those drug candidates for commercial use. | |
In November 2012, the Company established and incorporated Puma Biotechnology Ltd., a wholly owned subsidiary, for the sole purpose of serving as Puma’s legal representative in the United Kingdom and the European Union in connection with Puma’s clinical trial activity in those countries. | |
Basis of Presentation: | |
The Company is a development stage enterprise since it has not yet generated any revenue from the sale of products through December 31, 2013. The Company is initially focused on developing neratinib for the treatment of patients with human epidermal growth factor receptor type 2, or HER2-positive, breast cancer, HER2 mutated non-small cell lung cancer, HER2-negative breast cancer that has a HER2 mutation and other solid tumors that have an activating mutation in HER2. Accordingly, the accompanying consolidated financial statements have been prepared in accordance with the Financial Accounting Standards Board, or FASB, Accounting Standards Codification, or ASC, ASC 915, Development Stage Entities. The Company has reported a net loss of $54.7 million and negative cash flows from operations of $55.0 million for the year ended December 31, 2013. The net loss from the date of inception, September 15, 2010, to December 31, 2013, amounted to $139.3 million while the negative cash flows from operations from the date of inception amounted to $100.9 million. Management believes that the Company will continue to incur net losses and negative net cash flows from operating activities through the drug development process. | |
The Company’s continued operations will depend on its ability to raise funds through various potential sources, such as equity and debt financing. Through December 31, 2013, and into 2014, the Company’s financing was primarily through public offerings of Company common stock and private equity placements. Given the current and desired pace of clinical development of its three product candidates, management estimates that the Company had sufficient cash on hand at December 31, 2013, to fund clinical development through 2015 and beyond. The Company sold additional shares of its common stock through an underwritten public offering in February 2014 (see Note 10). As a result, the Company received net proceeds of approximately $129.3 million. The Company may need additional financing until it can achieve profitability, if ever. There can be no assurance that additional capital will be available on favorable terms or at all or that any additional capital that the Company is able to obtain will be sufficient to meet its needs. If it is unable to raise additional capital, the Company could likely be forced to curtail desired development activities, which will delay the development of its product candidates. | |
Merger with Public Company: | |
On September 29, 2011, the Company entered into an agreement and plan of merger, or the Merger Agreement, with Innovative Acquisitions Corp., or IAC, and IAC’s wholly-owned subsidiary, IAC Merger Corporation, or Merger Sub. On October 4, 2011, the Company completed a reverse merger in which Merger Sub merged with and into the Company and the Company became a wholly-owned subsidiary of IAC, or the Merger. At the effective time of the Merger, the Company’s then issued and outstanding 18,666,733 shares of common stock were exchanged for 18,666,733 shares of common stock of IAC and each share of the Company’s common stock that was outstanding immediately prior to the effective time was cancelled, with one share of the Company common stock issued to IAC. Concurrently, IAC redeemed all of its shares from its pre-Merger stockholders in exchange for aggregate consideration of $40,000 paid by the Company. The Company also paid $40,000 for IAC’s professional fees associated with the Merger, directly to legal counsel for IAC’s former stockholders. Following the Merger and the redemption, the Company’s prior stockholders owned the same percentage of IAC’s common stock as they held of the Company’s common stock prior to the Merger. | |
Upon completion of the Merger, the Company merged with and into IAC, and IAC adopted the Company’s business plan and changed its name to “Puma Biotechnology, Inc.” Further, upon completion of the Merger, the existing officers and directors of IAC resigned and the existing officers and directors of the Company were appointed officers and directors of IAC. | |
The Merger was accounted for as a reverse acquisition, with the Company as the accounting acquirer and IAC as the accounting acquiree. The merger of a private operating company into a non-operating public shell corporation with nominal net assets is considered to be a capital transaction, in substance, rather than a business combination for accounting purposes. Accordingly, the Company treated this transaction as a capital transaction without recording goodwill or adjusting any of its other assets or liabilities. Consideration in the amount of $80,000 paid to the former stockholders of IAC and their attorney was recorded as an other expense item and included in the Company’s net loss for the year ended December 31, 2011. |
Significant_Accounting_Policie
Significant Accounting Policies | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Significant Accounting Policies | ' | ||||||||||||||||
Note 2—Significant Accounting Policies: | |||||||||||||||||
The significant accounting policies followed in the preparation of these consolidated financial statements are as follows: | |||||||||||||||||
Use of Estimates: | |||||||||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States, or GAAP, requires management to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the balance sheet and reported amounts of expenses for the period presented. Accordingly, actual results could differ from those estimates. Significant estimates include accrued expenses for the cost of services provided by consultants who manage clinical trials and conduct research and clinical trials on behalf of the Company that are billed on a delayed basis. As the actual costs become known, the Company adjusts its estimated cost in that period. The value of stock-based compensation includes estimates based on future events which are difficult to predict. It is at least reasonably possible that a change in the estimates used to record accrued expenses and to value the stock-based compensation will occur in the near term. | |||||||||||||||||
Principles of Consolidation: | |||||||||||||||||
The Consolidated Financial Statements include the accounts of the Company and its wholly owned subsidiary. All significant intercompany balances and transactions have been eliminated in consolidation. | |||||||||||||||||
Cash and Cash Equivalents: | |||||||||||||||||
The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. Cash equivalents are carried at cost, which approximates fair value. | |||||||||||||||||
Licensor Receivable: | |||||||||||||||||
Licensor receivable represents external “out of pocket” clinical trial costs in excess of an agreed upon “cap cost” for clinical trials that were ongoing at the time the licensing agreement with the Licensor (defined below) was entered (see Note 9). The licensing agreement allows the Company to bill the Licensor for all external “out of pocket” costs in excess of the cap cost on a quarterly basis. Licensor receivables include both invoiced and un-invoiced costs in excess of the cap. The Company has not established a reserve against this receivable as it is deemed to be 100% collectable. | |||||||||||||||||
Investment Securities: | |||||||||||||||||
The Company classifies all investment securities (short term and long term) as available-for-sale, as the sale of such securities may be required prior to maturity to implement management’s strategies. These securities are carried at fair value, with the unrealized gains and losses, reported as a component of accumulated other comprehensive income (loss) in stockholders’ equity until realized. Realized gains and losses from the sale of available-for-sale securities, if any, are determined on a specific identification basis. A decline in the market value of any available-for-sale security below cost that is determined to be other than temporary results in a revaluation of its carrying amount to fair value. The impairment is charged to earnings and a new cost basis for the security is established. Premiums and discounts are amortized or accreted over the life of the related security as an adjustment to yield using the straight-line method. Interest income is recognized when earned. | |||||||||||||||||
Assets Measured at Fair Value on a Recurring Basis: | |||||||||||||||||
ASC 820, Fair Value Measurement, or ASC 820, provides a single definition of fair value and a common framework for measuring fair value as well as new disclosure requirements for fair value measurements used in financial statements. Under ASC 820, fair value is determined based upon the exit price that would be received by a company to sell an asset or paid by a company to transfer a liability in an orderly transaction between market participants, exclusive of any transaction costs. Fair value measurements are determined by either the principal market or the most advantageous market. The principal market is the market with the greatest level of activity and volume for the asset or liability. Absent a principal market to measure fair value, the Company uses the most advantageous market, which is the market from which the Company would receive the highest selling price for the asset or pay the lowest price to settle the liability, after considering transaction costs. However, when using the most advantageous market, transaction costs are only considered to determine which market is the most advantageous and these costs are then excluded when applying a fair value measurement. ASC 820 creates a three-level hierarchy to prioritize the inputs used in the valuation techniques to derive fair values. The basis for fair value measurements for each level within the hierarchy is described below, with Level 1 having the highest priority and Level 3 having the lowest. | |||||||||||||||||
Level 1: | Quoted prices in active markets for identical assets or liabilities. | ||||||||||||||||
Level 2: | Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs are observable in active markets. | ||||||||||||||||
Level 3: | Valuations derived from valuation techniques in which one or more significant inputs are unobservable. | ||||||||||||||||
Following are the major categories of assets measured at fair value on a recurring basis as of December 31, 2013 and 2012, using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3) (in thousands): | |||||||||||||||||
December 31, 2013 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Cash equivalents | $ | 41,598 | $ | — | $ | — | $ | 41,598 | |||||||||
Marketable securities—corporate bonds | — | 40,904 | — | 40,904 | |||||||||||||
$ | 41,598 | $ | 40,904 | $ | — | $ | 82,502 | ||||||||||
December 31, 2012 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Cash equivalents | $ | 134,867 | $ | — | $ | — | $ | 134,867 | |||||||||
The Company’s investments in corporate bonds are exposed to price fluctuations. The fair value measurements for corporate bonds are based upon the quoted prices of similar items in active markets multiplied by the number of securities owned, exclusive of any transaction costs and without any adjustments to reflect discounts that may be applied to selling a large block of securities at one time. | |||||||||||||||||
Concentration of Risk: | |||||||||||||||||
Financial instruments, which potentially subject the Company to concentrations of credit risk, principally consist of cash and cash equivalents. The Company’s cash and cash equivalents in excess of the Federal Deposit Insurance Corporation and the Securities Investor Protection Corporation insured limits at December 31, 2013, were approximately $44.2 million. The Company does not believe it is exposed to any significant credit risk due to the quality nature of the financial instruments in which the money is held. Pursuant to the Company’s internal investment policy, investments must be rated A-1/P-1 or better by Standard and Poor’s Corporation and Moody’s Investor Services at the time of purchase. | |||||||||||||||||
Property and Equipment: | |||||||||||||||||
Property and equipment are recorded at cost and depreciated over estimated useful lives ranging from three to five years using the straight-line method. Leasehold improvements are recorded at cost and amortized over the shorter of their useful lives or the term of the lease by use of the straight-line method. Maintenance and repair costs are charged to operations as incurred. | |||||||||||||||||
The Company assesses the impairment of long-lived assets, primarily property and equipment, whenever events or changes in business circumstances indicate that carrying amounts of the assets may not be fully recoverable. When such events occur, management determines whether there has been impairment by comparing the asset’s carrying value with its fair value, as measured by the anticipated undiscounted net cash flows of the asset. Should impairment exist, the asset is written down to its estimated fair value. The Company has not recognized any impairment losses through December 31, 2013. | |||||||||||||||||
Research and Development Expenses: | |||||||||||||||||
Research and development expenses are charged to operations as incurred. The major components of research and development costs include clinical manufacturing costs, clinical trial expenses, consulting and other third-party costs, salaries and employee benefits, stock-based compensation expense, supplies and materials, and allocations of various overhead costs. Clinical trial expenses include, but are not limited to, investigator fees, site costs, comparator drug costs, and clinical research organization, or CRO, costs. In the normal course of business, the Company contracts with third parties to perform various clinical trial activities in the ongoing development of potential products. The financial terms of these agreements are subject to negotiation and variations from contract to contract and may result in uneven payment flows. Payments under the contracts depend on factors such as the achievement of certain events, the successful enrollment of patients and the completion of portions of the clinical trial or similar conditions. The Company’s accruals for clinical trials are based on estimates of the services received and efforts expended pursuant to contracts with numerous clinical trial sites, cooperative groups and CROs. The objective of the Company’s accrual policy is to match the recording of expenses in the Consolidated Financial Statements to the actual services received and efforts expended. As actual costs become known, the Company adjusts its accruals in that period. | |||||||||||||||||
In instances where the Company enters into agreements with third parties for clinical trials and other consulting activities, upfront amounts are recorded to prepaid expenses and other in the accompanying Consolidated Balance Sheets and expensed as services are performed or as the underlying goods are delivered. If the Company does not expect the services to be rendered or goods to be delivered, any remaining capitalized amounts for non-refundable upfront payments are charged to expense immediately. Amounts due under such arrangements may be either fixed fee or fee for service, and may include upfront payments, monthly payments and payments upon the completion of milestones or receipt of deliverables. | |||||||||||||||||
Costs related to the acquisition of technology rights and patents for which development work is still in process are charged to operations as incurred and considered a component of research and development costs. | |||||||||||||||||
Research and Development Reimbursement: | |||||||||||||||||
The licensing agreement set a “cap” on the amount of external expenses the Company would incur, beginning January 1, 2012, in completing the clinical trials transferred from the Licensor to the Company. The license agreement stipulates that the Licensor would be responsible for all external expenses associated with the transferred clinical trials and that the Company would invoice for such costs on a quarterly basis. All amounts reimbursed by the Licensor represent charges for services provided by third parties and not by the Company; accordingly, the Company has elected to treat the reimbursed costs as a “pass-through” expense billable to the Licensor and as an off set to research and development expenses. Consequently, research and development expenses are recorded net of any excess cap costs billed to the Licensor. The Company recognized approximately $16.4 million and $10.6 million of excess cap cost billed to the Licensor in 2013 and 2012, respectively. | |||||||||||||||||
Stock-Based Compensation: | |||||||||||||||||
Stock option awards: | |||||||||||||||||
ASC 718, Compensation-Stock Compensation, or ASC 718, requires the fair value of all share-based payments to employees, including grants of stock options, to be recognized in the statement of operations over the requisite service period. Under ASC 718, employee option grants are generally valued at the grant date and those valuations do not change once they have been established. The fair value of each option award is estimated on the grant date using the Black-Scholes Option Pricing Method. As allowed by ASC 718 for companies with a short period of publicly traded stock history, the Company’s estimate of expected volatility is based on the average expected volatilities of a sampling of five companies with similar attributes to the Company, including industry, stage of life cycle, size and financial leverage. The risk-free rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant valuation. ASC 718 does not allow companies to account for option forfeitures as they occur; instead, estimated option forfeitures must be calculated when the option is granted to reduce the option expense to be recognized over the life of the award and updated upon receipt of further information as to the amount of options expected to be forfeited. Due to its limited history, the Company uses the simplified method to determine the expected life of the option grants. | |||||||||||||||||
Warrants: | |||||||||||||||||
Warrants granted to employees are normally valued at the fair value of the instrument on the grant date and are recognized in the statement of operations over the requisite service period. When the requisite service period precedes the grant date and a market condition exists in the warrant, the Company values the warrant using the Monte Carlo Simulation Method. When the terms of the warrant become fixed, the Company values the warrant using the Black-Scholes Option Pricing Method. As allowed by ASC 718 for companies with a short period of publicly traded stock history, the Company’s estimate of expected volatility is based on the average volatilities of a sampling of eight to nine companies with similar attributes to the Company, including industry, stage of life cycle, size and financial leverage. The risk-free rate for periods within the contractual life of the warrant is based on the U.S. Treasury yield curve in effect at the time of grant valuation. In determining the value of the warrant until the terms are fixed, the Company factors in the probability of the market condition occurring and several possible scenarios. When the requisite service period precedes the grant date and is deemed to be complete, the Company records the fair value of the warrant at the time of issuance as an equity stock-based compensation transaction. The warrant is revalued each reporting period up to the grant date when the final fair value of the warrant is established and recorded. The grant date is determined when all pertinent information, such as exercise price and quantity are known. | |||||||||||||||||
Income Taxes: | |||||||||||||||||
The Company follows ASC 740, Income Taxes, or ASC 740, which requires recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the consolidated financial statements or tax returns. Under this method, deferred tax assets and liabilities are based on the differences between the consolidated financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance to the extent management concludes it is more likely than not that the asset will not be realized. 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 standard addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the Consolidated Financial Statements. Under ASC 740, the Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the tax authorities, based on the technical merits of the position. The tax benefits recognized in the Consolidated Financial Statements from such a position should be measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. ASC 740 also provides guidance on de-recognition, classification, interest and penalties on income taxes, accounting in interim periods and requires increased disclosures. At the date of adoption, and as of December 31, 2013 and 2012, the Company did not have a liability for unrecognized tax uncertainties. | |||||||||||||||||
The Company is subject to routine audits by taxing jurisdictions. As of December 31, 2013, the Company’s tax years for 2010, 2011 and 2012 are subject to examination by the authorities. Currently, the Company is under review for the 2011 and 2012 tax years by the Internal Revenue Service. The Company’s policy is to record interest and penalties on uncertain tax positions as income tax expense. As of December 31, 2013 and 2012, the Company had no accrued interest or penalties related to uncertain tax positions. | |||||||||||||||||
Net Loss per Common Share: | |||||||||||||||||
Basic net loss per common share is computed by dividing net loss applicable to common stockholders by the weighted average number of common shares outstanding during the periods presented as required by ASC 260, Earnings per Share. Diluted earnings per common share are the same as basic earnings per share because the assumed exercise of the Company’s outstanding options are anti-dilutive. For the year ended December 31, 2013, potentially dilutive securities excluded from the calculations were 2,604,224 shares issuable upon exercise of options and 2,116,250 shares issuable upon exercise of a warrant. For the years ended December 31, 2012 and 2011, potentially dilutive securities excluded from the earnings per common share calculation were 4,022,584 and 670,000, respectively. | |||||||||||||||||
Deferred Rent: | |||||||||||||||||
The Company has entered into operating lease agreements for its corporate offices in Los Angeles and South San Francisco that contain provisions for future rent increases, leasehold improvement allowances and rent abatements. The Company records monthly rent expense equal to the total of the payments due over the lease term, divided by the number of months of the lease term. The difference between the rent expense recorded and the amount paid is credited or charged to deferred rent, which is reflected as a separate line item in the accompanying Consolidated Balance Sheets. Additionally, the Company recorded as deferred rent the cost of the leasehold improvements paid by the landlord, which is amortized on a straight-line basis over the term of the lease. | |||||||||||||||||
Reclassifications: | |||||||||||||||||
Certain amounts for 2012 and 2011 have been reclassified to conform to the current year’s presentation. |
Prepaid_Expenses_and_Other
Prepaid Expenses and Other | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Prepaid Expenses and Other | ' | ||||||||
Note 3—Prepaid Expenses and Other: | |||||||||
Prepaid expenses and other consisted of the following at December 31 (in thousands): | |||||||||
2013 | 2012 | ||||||||
Current: | |||||||||
CRO services | $ | 863 | $ | 365 | |||||
Other clinical development | 1,089 | 252 | |||||||
Insurance | 554 | 229 | |||||||
Prepaid rent | — | 74 | |||||||
Other | 129 | 32 | |||||||
2,635 | 952 | ||||||||
Long-term: | |||||||||
CRO services | 1,509 | — | |||||||
Other clinical development | 3,359 | — | |||||||
Insurance | 142 | — | |||||||
Other | 70 | 36 | |||||||
5,080 | 36 | ||||||||
Totals | $ | 7,715 | $ | 988 | |||||
Property_and_Equipment
Property and Equipment | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Property and Equipment | ' | ||||||||
Note 4—Property and Equipment: | |||||||||
Property and equipment consisted of the following at December 31 (in thousands): | |||||||||
2013 | 2012 | ||||||||
Leasehold improvements | $ | 914 | $ | 910 | |||||
Computer equipment | 874 | 535 | |||||||
Telephone equipment | 82 | 34 | |||||||
Furniture and fixtures | 513 | 276 | |||||||
2,383 | 1,755 | ||||||||
Less: accumulated depreciation and amortization | (699 | ) | (276 | ) | |||||
Totals | $ | 1,684 | $ | 1,479 | |||||
Accrued_Expenses
Accrued Expenses | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Accrued Expenses | ' | ||||||||
Note 5—Accrued Expenses: | |||||||||
Accrued expenses consisted of the following at December 31 (in thousands): | |||||||||
2013 | 2012 | ||||||||
Accrued CRO/licensor services | $ | 4,801 | $ | 19,846 | |||||
Accrued other clinical development | 2,369 | 389 | |||||||
Accrued legal fees | 84 | 121 | |||||||
Accrued compensation | 1,066 | 787 | |||||||
Other | 259 | 76 | |||||||
$ | 8,579 | $ | 21,219 | ||||||
Accrued CRO/licensor services represent the Company’s estimate of such costs as of December 31, 2013, which will be adjusted in the period the actual costs become known. |
Stockholders_Equity
Stockholders' Equity | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Stockholders' Equity | ' | ||||||||||||||||
Note 6—Stockholders’ Equity: | |||||||||||||||||
Common Stock: | |||||||||||||||||
The Company issued 4,000,000 shares of common stock at $0.0001 per share to its Founder and Chief Executive Officer and President, Alan Auerbach, in September 2010 for $400. Additionally, Mr. Auerbach contributed capital totaling $6,531 during the year ended December 31, 2010. | |||||||||||||||||
During the year ended December 31, 2011, Mr. Auerbach contributed capital totaling $61,983. Additionally, in October 2011, 40,000 shares of common stock were issued to Mr. Auerbach through debt conversion at $3.75 per share, or $150,000. | |||||||||||||||||
October 2011 Common Stock Offering. Immediately prior to the Merger, pursuant to a securities purchase agreement, or the Securities Purchase Agreement, Puma sold 14,666,733 shares of its common stock to certain institutional and accredited investors at a price per share of $3.75, for aggregate gross proceeds of approximately $55 million. Puma also issued a warrant to each investor that provided such investor with anti-dilution protection in regard to certain issuances of securities. The Company assumed these warrants in the Merger and they were exercisable only if the Company sold securities at a price below $3.75 per share on or prior to the date on which shares of Company common stock were first quoted in an over-the-counter market or listed for quotation on a national securities exchange or trading system if the Company had not previously sold securities for less than $3.75 per share. Otherwise, the warrants had a ten-year term and an exercise price of $0.01 per share. The Company’s common stock was approved for quotation on April 18, 2012, and began trading on April 20, 2012, on the OTC Bulletin Board, or OTCBB, and the OTCQB under the symbol “PBYI” and the Company did not sell securities at a price below $3.75 per share on or prior to such date. These warrants subsequently terminated unexercised in accordance with their terms. | |||||||||||||||||
November 2011 Common Stock Offering. On November 18, 2011, the Company entered into subscription agreements with 139 accredited investors, pursuant to which the Company sold in a private placement an aggregate of 1,333,267 shares of common stock at a price per share of $3.75 per share, for aggregate gross proceeds of approximately $5.0 million. Leerink Swann LLC, or Leerink, acted as lead placement agent and National Securities Corporation acted as co-placement agent in connection with this private placement and received compensation of approximately $84,000 and $150,000, respectively. In addition to the costs noted above, the Company incurred legal fees and other costs totaling approximately $487,000. | |||||||||||||||||
October 2012 Common Stock Offering. On October 18, 2012, the Company entered into an underwriting agreement with Merrill Lynch, Pierce, Fenner & Smith Incorporated and Leerink, as representatives of several underwriters, providing for the offer and sale in a firm-commitment underwritten public offering of 7,500,000 shares of the Company’s common stock, par value $0.0001 per share, at a price of $16 per share, less the underwriting discount. On October 19, 2012, the underwriters exercised the overallotment option granted to the underwriters to purchase an additional 1,125,000 shares of Company common stock from the Company at $16 per share, less the underwriting discount. The transactions were completed on October 24, 2012; the Company received net proceeds of approximately $129.2 million, which is comprised of gross proceeds of approximately $138 million, offset by the underwriting discount and estimated offering expenses of $8.8 million payable by the Company. | |||||||||||||||||
The Company issued 314,623 and 11,666 shares of common stock upon exercise of stock options during the years ended December 31, 2013 and 2012, respectively. | |||||||||||||||||
Authorized Shares: | |||||||||||||||||
At inception, the Company had 1,200,000 shares of stock authorized for issuance, all of which were common stock, par value $0.0001 per share. On September 15, 2011, the total number of shares of common stock the Company was authorized to issue was increased to 25,000,000. Immediately following the increase in authorized shares, the Company executed a four-for-one forward stock split. The share amounts, including earnings per share, stated in the Company’s Consolidated Financial Statements have been adjusted to reflect the four-for-one stock split. | |||||||||||||||||
Following the Merger, the Company had 110,000,000 shares of stock authorized for issuance, of which 100,000,000 were common stock, par value $0.0001 per share, and 10,000,000 were preferred stock, par value $0.0001 per share. On October 4, 2011, the Board of Directors of the Company and the stockholders owning 100% of the Company’s issued and outstanding common stock approved an Amended and Restated Certificate of Incorporation, or the Amended Certificate, which eliminated the Company’s entire authorized class of preferred stock and reduced the total number of shares of capital stock that the Company may issue from 110,000,000 shares to 100,000,000 shares, all of which are designated as common stock, par value $0.0001 per share. The Amended Certificate became effective on November 14, 2011, upon the filing of the Amended Certificate with the Secretary of State of the State of Delaware. | |||||||||||||||||
Warrants: | |||||||||||||||||
In October 2011, the Company issued anti-dilutive warrants to 27 investors pursuant to a securities purchase agreement. These warrants were exercisable only if the Company sold securities at a price below $3.75 per share on or prior to the date on which the Company’s common stock was first quoted in an over-the-counter market or listed for quotation on a national securities exchange or trading system. The Company’s common stock was approved for quotation on the OTCBB, on April 18, 2012, and began trading on April 20, 2012 under the symbol “PBYI” and the Company did not sell securities at a price below $3.75 per share on or prior to such date. Accordingly, these warrants subsequently terminated unexercised in accordance with their terms. The fair value of the warrants issued was determined using the Monte Carlo Simulation Method with the following assumptions: | |||||||||||||||||
October | |||||||||||||||||
2011 | |||||||||||||||||
Dividend yield | 0 | % | |||||||||||||||
Expected volatility | 84.4 | % | |||||||||||||||
Risk-free interest rate | 1.81 | % | |||||||||||||||
Common stock price on date of issuance | $ | 3.75 | |||||||||||||||
Exercise price | $ | 0.01 | |||||||||||||||
Warrant term in years | 10 | ||||||||||||||||
Using the above assumptions, the portion of the private placement proceeds attributed to the fair value of the warrants was determined to be approximately $1.8 million and recorded within additional paid-in capital. | |||||||||||||||||
Following the October 2011 common stock offering, Mr. Auerbach held approximately 21% of the 18,666,733 outstanding shares of the Company’s common stock. Pursuant to the terms of the securities purchase agreement, the Company issued an anti-dilutive warrant to Mr. Auerbach, as the Company’s founder. The warrant was issued to provide Mr. Auerbach with the right to maintain ownership of at least 20% of the Company’s common stock in the event that the Company raised capital through the sale of its securities in the future. | |||||||||||||||||
The warrant has a ten-year term and is exercisable only in the event of the first subsequent financing, excluding certain types of financings set forth in the warrant, that results in gross cash proceeds to the Company of at least $15 million. The warrant has an exercise price equal to the price paid per share in such financing and is exercisable for the number of shares of the Company’s common stock necessary for Mr. Auerbach to maintain ownership of at least 20% of the outstanding shares of Company common stock after such financing. Upon the occurrence of the first subsequent financing of at least $15 million, the warrant may be exercised any time up to the ten-year expiration date of October 4, 2021. The grant date of the warrant would occur on the date of the subsequent financing when the aggregate number of shares exercisable and the price per share will be determined. The Company determined that the warrant has an implied service requisite period in 2011 that is prior to its grant date. The Company also determined that a market condition subsequent to the implied service period exists as the exercise or partial exercise of the warrant can only occur if there is a subsequent financing. | |||||||||||||||||
In connection with the closing of a public offering on October 24, 2012, the exercise price and number of shares underlying the warrant issued to Mr. Auerbach were established and, accordingly, the final value of the warrant became fixed. Pursuant to the terms of the warrant, Mr. Auerbach may exercise the warrant to acquire 2,116,250 shares of the Company’s common stock at $16 per share until October 4, 2021. | |||||||||||||||||
The warrant was valued at approximately $6.9 million at the time of issuance, using the Monte Carlo Simulation Method, and recorded to the Consolidated Statements of Operations. The warrant was revalued at approximately $7.6 million on December 31, 2011, using the Monte Carlo Simulation Method. Once the terms of the warrant became fixed, the fair value of the warrant as of October 24, 2012, using the Black-Scholes Option Pricing Method, was approximately $25.8 million and resulted in an adjustment to the fair value of the warrant of $18.2 million in 2012, which is included in general and administrative expense in the accompanying Consolidated Statements of Operations for the year ended December 31, 2012. | |||||||||||||||||
The fair value of the warrant at October 24, 2012, was determined by the following assumptions using the Black-Scholes Option Pricing Method: | |||||||||||||||||
October | |||||||||||||||||
2012 | |||||||||||||||||
Common stock price | $ | 16.00 | |||||||||||||||
Dividend yield | 0 | % | |||||||||||||||
Expected volatility | 75.5 | % | |||||||||||||||
Risk-free interest rate | 1.81 | % | |||||||||||||||
Remaining warrant term in years | 9 | ||||||||||||||||
The fair value at December 31, 2011, was determined by the following assumptions using the Monte Carlo Simulation Method: | |||||||||||||||||
Dec-11 | |||||||||||||||||
Dividend yield | 0% | ||||||||||||||||
Expected volatility | 84.4%-85.1% | ||||||||||||||||
Risk-free interest rate | 1.81%-1.89% | ||||||||||||||||
Warrant term in years | 10 | ||||||||||||||||
The fair value of the warrant, on December 31, 2011 was estimated based on projected equity raises ranging from $15 million to $100 million in 2013 using weighted probability factors. | |||||||||||||||||
Stock-Based Compensation: | |||||||||||||||||
The Company’s 2011 Incentive Award Plan, or the 2011 Plan, was adopted by the Board of Directors on September 15, 2011. Pursuant to the 2011 Plan, the Company may grant incentive stock options and nonqualified stock options, as well as other forms of equity-based compensation. Incentive stock options may be granted only to employees, while consultants, employees, officers and directors are eligible for the grant of nonqualified options under the 2011 Plan. The maximum term of stock options granted under the 2011 Plan is 10 years. The exercise price of incentive stock options granted under the 2011 Plan must be at least equal to the fair value of such shares on the date of grant. Through December 31, 2013, a total of 3,529,412 shares of the Company’s common stock has been reserved for issuance under the 2011 Plan. | |||||||||||||||||
The Company awarded only “plain vanilla options” as determined by the SEC Staff Accounting Bulletin 107, or Share Based Payment. As of December 31, 2013, 2,604,224 shares of the Company’s common stock are issuable upon the exercise of outstanding awards granted under the 2011 Plan and 598,899 shares of the Company’s common stock are available for future issuance under the 2011 Plan. The fair value of options granted to employees was estimated using the Black-Scholes Option Pricing Method (see Note 2) with the following weighted-average assumptions used during the years ended December 31: | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Dividend yield | 0 | % | 0 | % | 0 | % | |||||||||||
Expected volatility | 83.6 | % | 86.4 | % | 86 | % | |||||||||||
Risk-free interest rate | 1.4 | % | 1 | % | 1.1 | % | |||||||||||
Expected life in years | 5.85 | 5.79 | 5.81 | ||||||||||||||
Employee stock-based compensation was as follows for the years ended December 31 (in thousands except per share data): | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Stock-based compensation: | |||||||||||||||||
Options- | |||||||||||||||||
Research and development | $ | 5,188 | $ | 924 | $ | 38 | |||||||||||
General and administrative, or G&A | 2,331 | 484 | 29 | ||||||||||||||
Warrants -G&A | — | 18,222 | 7,586 | ||||||||||||||
Total share-based compensation expense | $ | 7,519 | $ | 19,630 | $ | 7,653 | |||||||||||
Impact on basic and diluted net loss per share | $ | 0.26 | $ | 0.9 | $ | 0.99 | |||||||||||
Weighted average shares (basic and diluted) | 28,696,573 | 21,725,986 | 7,746,529 | ||||||||||||||
Activity with respect to options granted under the 2011 Plan is summarized as follows: | |||||||||||||||||
Shares | Weighted | Weighted Average | Aggregate | ||||||||||||||
Average | Remaining | Intrinsic Value | |||||||||||||||
Exercise | Contractual Term | (in thousands) | |||||||||||||||
Price | (years) | ||||||||||||||||
Outstanding at December 31, 2011 | — | — | |||||||||||||||
Options granted in the period ended March 31, 2012 for which compensation was recognized during 2011 | 670,000 | $ | 3.75 | ||||||||||||||
Granted during 2012 | 1,278,000 | $ | 11.48 | ||||||||||||||
Forfeited during 2012 | (30,000 | ) | $ | 3.75 | |||||||||||||
Exercised during 2012 | (11,666 | ) | $ | 3.75 | $ | 190 | |||||||||||
Outstanding at December 31, 2012 | 1,906,334 | $ | 8.93 | ||||||||||||||
Granted during 2013 | 1,032,375 | $ | 44.77 | ||||||||||||||
Forfeited during 2013 | (19,862 | ) | $ | 11.6 | |||||||||||||
Exercised during 2013 | (314,623 | ) | $ | 7.29 | $ | 23,525 | |||||||||||
Outstanding at December 31, 2013 | 2,604,224 | $ | 23.31 | 8.9 | $ | 208,902 | |||||||||||
Unvested at December 31, 2013 | 1,838,633 | $ | 29.51 | 9.1 | $ | 136,105 | |||||||||||
Exercisable at December 31, 2013 | 765,591 | $ | 8.44 | 8.3 | $ | 72,797 | |||||||||||
At December 31, 2013, total estimated unrecognized employee compensation cost related to non-vested stock options granted prior to that date was approximately $33.8 million, which is expected to be recognized over a weighted-average period of 2.5 years. The weighted-average grant date fair value of options granted during the years ended December 31, 2013 and 2012, was $29.94 per share and $6.38 per share, respectively. | |||||||||||||||||
Stock options | Shares | Weighted | |||||||||||||||
Average | |||||||||||||||||
Grant-Date | |||||||||||||||||
Fair Value | |||||||||||||||||
Nonvested shares at December 31, 2012 | 1,659,399 | $ | 7.03 | ||||||||||||||
Granted | 1,032,375 | 29.94 | |||||||||||||||
Vested/Issued | (833,279 | ) | 9.85 | ||||||||||||||
Forfeited | (19,862 | ) | 8.12 | ||||||||||||||
Nonvested shares at December 31, 2013 | 1,838,633 | $ | 20.18 | ||||||||||||||
401k_Savings_Plan
401(k) Savings Plan | 12 Months Ended |
Dec. 31, 2013 | |
401(k) Savings Plan | ' |
Note 7—401(k) Savings Plan: | |
During 2012, the Company adopted a 401(k) savings plan for the benefit of its employees. The Company is required to make matching contributions to the 401(k) plan equal to 100% of the first 3% of wages deferred by each participating employee and 50% on the next 2% of wages deferred by each participating employee. The Company incurred expenses for employer matching contributions of approximately $0.2 million, $0.1 million, and $0 for the years ended December 31, 2013, 2012, and 2011, respectively. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Taxes | ' | ||||||||||||
Note 8—Income Taxes: | |||||||||||||
Temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes (net operating loss carry-forwards) give rise to the Company’s deferred income taxes. The components of the Company’s net deferred tax assets as of December 31, 2013 and 2012 are as follows (in thousands): | |||||||||||||
Federal | State | Total | |||||||||||
Deferred tax assets—2013: | |||||||||||||
Net operating loss carry forwards | $ | 35,641 | $ | 6,116 | $ | 41,757 | |||||||
Business credit carryforwards | 3,513 | 1,539 | 5,052 | ||||||||||
Organization costs | 200 | 34 | 234 | ||||||||||
Compensation | 9,791 | 1,681 | 11,472 | ||||||||||
Depreciation | 42 | 7 | 49 | ||||||||||
Other | 73 | 12 | 85 | ||||||||||
49,260 | 9,389 | 58,649 | |||||||||||
Deferred tax liabilities | — | — | — | ||||||||||
Total deferred tax assets | 49,260 | 9,389 | 58,649 | ||||||||||
Valuation allowance | (49,260 | ) | (9,389 | ) | (58,649 | ) | |||||||
Net deferred tax assets | $ | — | $ | — | $ | — | |||||||
Federal | State | Total | |||||||||||
Deferred tax assets—2012: | |||||||||||||
Net operating loss carry | $ | 19,020 | $ | 3,263 | $ | 22,283 | |||||||
forwards | |||||||||||||
Organization costs | 230 | 40 | 270 | ||||||||||
Compensation | 9,080 | 1,558 | 10,638 | ||||||||||
Other | 64 | 11 | 75 | ||||||||||
28,394 | 4,872 | 33,266 | |||||||||||
Deferred tax liabilities— depreciation | (2 | ) | — | (2 | ) | ||||||||
Total deferred tax assets | 28,392 | 4,872 | 33,264 | ||||||||||
Valuation allowance | (28,392 | ) | (4,872 | ) | (33,264 | ) | |||||||
Net deferred tax assets | $ | — | $ | — | $ | — | |||||||
As the ultimate realization of the potential benefits of the Company’s deferred tax assets is considered unlikely by management, the Company has offset the deferred tax assets attributable to those potential benefits through valuation allowances. Accordingly, the Company did not recognize any benefit from income taxes in the accompanying consolidated statements of operations to offset its pre-tax losses. The valuation allowance increased $25.3 million in 2013 and $29.2 million in 2012. At December 31, 2013, the Company had federal and state net operating loss carryforwards of approximately $104.8 million each, which will begin to expire in 2031. At December 31, 2013, the Company also has federal and state research and development credit carryforwards of approximately $4.4 million and $2.9 million, respectively. Pursuant to the Internal Revenue Code, Sections 382 and 383, use of the Company’s net operating loss and credit carryforwards could be limited if a cumulative change in ownership of more than 50% occurs within a three-year period. The Company has not yet performed an assessment on the potential limitation on net operating loss and credit carryforwards. | |||||||||||||
As a result of certain realization requirements of ASC 718, the table of deferred tax assets and liabilities shown above does not include certain deferred tax assets as of December 31, 2013 and 2012 that arose directly from (or the use of which was postponed by) tax deductions related to equity compensation in excess of compensation recognized for financial reporting. Those deferred tax assets include federal and net operating losses. Equity will be increased by approximately $8.1 million if and when such deferred tax assets are ultimately realized. The Company uses ASC 740 ordering when determining when excess tax benefits have been realized. | |||||||||||||
The provision (credit) for income taxes in the accompanying Consolidated Statements of Operations differs from the amount calculated by applying the statutory income tax rate to income (loss) from continuing operations before income taxes. The primary components of such differences are as follows as of December 31 (in thousands): | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Tax computed at the federal statutory rate | $ | (18,584 | ) | $ | (25,280 | ) | $ | (3,479 | ) | ||||
State taxes | (3,948 | ) | (4,279 | ) | (594 | ) | |||||||
Permanent items | (806 | ) | 346 | 24 | |||||||||
Change in valuation allowance | 23,338 | 29,213 | 4,049 | ||||||||||
Total provision | $ | — | $ | — | $ | — | |||||||
The following is a tabular reconciliation of the total amounts of unrecognized tax benefits at December 31: | |||||||||||||
(in thousands) | 2013 | 2012 | |||||||||||
Unrecognized tax benefits—January 1 | $ | — | $ | — | |||||||||
Gross increases—tax positions in prior period | 205 | — | |||||||||||
Gross decreases—tax positions in prior period | — | — | |||||||||||
Gross increases—tax positions in current period | 1,058 | — | |||||||||||
Settlement | — | — | |||||||||||
Lapse of statute of limitations | — | — | |||||||||||
Unrecognized tax benefits—December 31 | $ | 1,263 | $ | — | |||||||||
The unrecognized tax benefits that, if recognized, would affect the effective tax rate is zero at December 31, 2013. The Company does not have tax positions for which it is reasonable possible that the total amounts of unrecognized tax benefit will significantly increase or decrease within 12 months of the reporting date. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Commitments and Contingencies | ' | ||||||||
Note 9—Commitments and Contingencies: | |||||||||
Office Leases: | |||||||||
On December 7, 2011, the Company, entered into a non-cancelable operating lease for office space. The initial term of the lease is for seven years and commenced on December 10, 2011. The base rent was approximately $44,400 per month during the first year and will increase each year during the initial term, up to approximately $53,000 per month during the seventh year. The lease has an expiration date of December 9, 2018. In addition, the Company has an option to extend the lease for an additional five-year term. The lease is subject to additional charges for common area maintenance and other costs. Concurrent with the execution of the lease, the Company provided the landlord an automatically renewable stand-by letter of credit in the amount of $1,000,000. The stand-by letter of credit is collateralized by a high-yield savings account in the amount of approximately $1,053,000, which is classified as restricted cash on the accompanying Consolidated Balance Sheets. Rent expense for the years ended December 31, 2013, 2012, and 2011, was approximately $872,500, $526,900 and $41,125, respectively. | |||||||||
On June 7, 2012, the Company entered into a long-term lease agreement for office space in South San Francisco, California. The initial term of the lease is seven years and commenced on November 1, 2012. The base rent was approximately $20,250 per month during the first year and will increase over the course of the initial term, up to approximately $30,820 per month during the seventh year. In addition, the Company has an option to extend the lease for an additional five-year term, which would commence upon the expiration of the initial term. In the event the Company elects to extend the lease, the minimum monthly rent payable for the additional term will be the then-current fair market rent calculated in accordance with the terms of the lease. The Company provided the landlord an automatically renewable stand-by letter of credit in the amount of $150,000. The stand-by letter of credit is collateralized by a high-yield savings account in the amount of approximately $159,000, which is classified as restricted cash on the accompanying Consolidated Balance Sheets. | |||||||||
On November 28, 2012, the Company entered into an amendment to the lease for its office space in Los Angeles, California. This amendment added approximately 3,500 rentable square feet to the existing lease of approximately 13,250 square feet. Pursuant to the amendment, the Company’s monthly rent increased by approximately $12,145 per month following the execution of the amendment and will be increased to approximately $14,080 per month at the end of the lease term. | |||||||||
On December 1, 2013, the Company entered into a second amendment to the lease for its office space in Los Angeles, California. This amendment added approximately 5,949 rentable square feet to the existing lease of approximately 16,750 square feet. Pursuant to the amendment, the Company’s monthly rent increased by approximately $10,400 per month following the execution of the amendment and will be increased to approximately $25,100 per month at the end of the lease term. | |||||||||
Future minimum lease payments for each of the years subsequent to December 31, 2013, are as follows (in thousands): | |||||||||
Year Ending December 31, | Amount | ||||||||
2014 | $ | 1,117 | |||||||
2015 | 1,313 | ||||||||
2016 | 1,376 | ||||||||
2017 | 1,417 | ||||||||
2018 | 1,459 | ||||||||
Thereafter | 308 | ||||||||
Total | $ | 6,990 | |||||||
License Agreement: | |||||||||
In August 2011, the Company entered into an agreement pursuant to which Pfizer, Inc., or the Licensor, agreed to grant it a worldwide license for the development, manufacture and commercialization of PB272 neratinib (oral), PB272 neratinib (intravenous) and PB357, and certain related compounds. The license is exclusive with respect to certain patent rights owned by or licensed to the Licensor. Under the agreement, the Company is obligated to commence a new clinical trial for a product containing one of these compounds within a specified period of time and to use commercially reasonable efforts to complete clinical trials and to achieve certain milestones as provided in a development plan. From the closing date of the agreement through December 31, 2011, the Licensor continued to conduct the existing clinical trials on behalf of the Company at the Licensor’s sole expense. At the Company’s request, the Licensor has agreed to continue to perform certain services in support of the existing clinical trials at the Company’s expense. These services will continue through the completion of the transitioned clinical trials. The license agreement “capped” the out of pocket expense the Company would be responsible for completing the then existing clinical trials. All agreed upon costs incurred by the Company above the “cost cap” would be reimbursed by the Licensor. The Company exceeded the “cost cap” during the fourth quarter for 2012. In accordance with the license agreement, the Company billed the Licensor for agreed upon costs above the “cost cap” and will continue to do so until the various clinical trials are closed. | |||||||||
As consideration for the license, the Company is required to make substantial payments upon the achievement of certain milestones totaling approximately $187.5 million if all such milestones are achieved. Should the Company commercialize any of the compounds licensed from the Licensor or any products containing any of these compounds, the Company will be obligated to pay to the Licensor annual royalties between approximately 10% and 20% of net sales of all such products, subject to certain reductions and offsets in some circumstances. The Company’s royalty obligation continues, on a product-by-product and country-by-country basis, until the later of (i) the last to expire licensed patent covering the applicable licensed product in such country, or (ii) the earlier of generic competition for such licensed product reaching a certain level in such country or expiration of a certain time period after first commercial sale of such licensed product in such country. In the event that the Company sublicenses the rights granted to the Company under the license agreement with the Licensor to a third party, the same milestone and royalty payments are required. The Company can terminate the license agreement at will at any time after April 4, 2013, or for safety concerns, in each case upon specified advance notice. | |||||||||
Clinical Research Organization Contracts: | |||||||||
The Company engages with clinical research organizations, or CROs, for the management of its ongoing clinical trials. The Company may cancel these agreements with a 30 to 45 day written notice to the CRO. The Company would be obligated to pay for services rendered up to that point. The CRO contracts held by the Company as of December 31, 2013, are summarized as follows (in thousands): | |||||||||
Indication | Total | Months | |||||||
Contract | Remaining | ||||||||
Amount | on Contract | ||||||||
Remaining | |||||||||
as of | |||||||||
December 31, | |||||||||
2013 | |||||||||
HER2 Mutation Positive Solid Tumor (5201) | $ | 3,560 | 32 | ||||||
HER2 Mutuant Non-Small Cell Lung Cancer (4201) | 5,060 | 28 | |||||||
HER2 Overexpressed/Amplified Breast Cancer (Licensor Legacy Clinical Trials) | 18,389 | 15 | |||||||
HER2 Plus Metastatic Breast Cancer (1301) | 46,477 | 43 | |||||||
Metastatic HER2-Amplified or Triple-Negative Breast Cancer (10-005) | 1,399 | 36 | |||||||
$ | 74,885 | ||||||||
Subsequent_Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2013 | |
Subsequent Event | ' |
Note 10—Subsequent Event: | |
Financing: | |
On February 14, 2014, the Company completed an underwritten offering of 1,126,530 shares of the Company’s common stock (including an additional 146,938 shares of Company common stock issued and sold pursuant to the underwriters’ option to purchase additional shares), par value $0.0001 per share, at a price of $122.50 per share, less the underwriting discount. The net proceeds received by the Company were approximately $129.3 million after deducting the underwriting discount and estimated offering expenses payable by the Company. |
Quarterly_Financial_Data
Quarterly Financial Data | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Quarterly Financial Data | ' | ||||||||||||||||
Note 11 – Quarterly Financial Data: | |||||||||||||||||
Quarterly financial data (in thousands except share | |||||||||||||||||
data): | |||||||||||||||||
(unaudited) | Three Months Ended | ||||||||||||||||
March 31, | June 30, | September 30, | December 31, | ||||||||||||||
2013 | |||||||||||||||||
Revenues | $ | — | $ | — | $ | — | $ | — | |||||||||
Net loss | (11,780 | ) | (12,650 | ) | (14,283 | ) | (15,946 | ) | |||||||||
Net loss applicable to common stock | (11,780 | ) | (12,650 | ) | (14,283 | ) | (15,946 | ) | |||||||||
Net loss per share—basic and diluted | (0.41 | ) | (0.44 | ) | (0.50 | ) | (0.55 | ) | |||||||||
Weighted-average common shares outstanding—basic and diluted | 28,676,666 | 28,676,666 | 28,682,055 | 28,750,382 | |||||||||||||
2012 | |||||||||||||||||
Revenues | $ | — | $ | — | $ | — | $ | — | |||||||||
Net loss | (11,826 | ) | (14,754 | ) | (25,859 | ) | (21,913 | ) | |||||||||
Net loss applicable to common stock | (11,826 | ) | (14,754 | ) | (25,859 | ) | (21,913 | ) | |||||||||
Net loss per share—basic and diluted | (0.59 | ) | (0.74 | ) | (1.29 | ) | (0.83 | ) | |||||||||
Weighted-average common shares outstanding—basic and diluted | 20,040,000 | 20,040,000 | 20,040,000 | 26,511,141 |
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Use of Estimates | ' | ||||||||||||||||
Use of Estimates: | |||||||||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States, or GAAP, requires management to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the balance sheet and reported amounts of expenses for the period presented. Accordingly, actual results could differ from those estimates. Significant estimates include accrued expenses for the cost of services provided by consultants who manage clinical trials and conduct research and clinical trials on behalf of the Company that are billed on a delayed basis. As the actual costs become known, the Company adjusts its estimated cost in that period. The value of stock-based compensation includes estimates based on future events which are difficult to predict. It is at least reasonably possible that a change in the estimates used to record accrued expenses and to value the stock-based compensation will occur in the near term. | |||||||||||||||||
Principles of Consolidation | ' | ||||||||||||||||
Principles of Consolidation: | |||||||||||||||||
The Consolidated Financial Statements include the accounts of the Company and its wholly owned subsidiary. All significant intercompany balances and transactions have been eliminated in consolidation. | |||||||||||||||||
Cash and Cash Equivalents | ' | ||||||||||||||||
Cash and Cash Equivalents: | |||||||||||||||||
The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. Cash equivalents are carried at cost, which approximates fair value. | |||||||||||||||||
Licensor Receivable | ' | ||||||||||||||||
Licensor Receivable: | |||||||||||||||||
Licensor receivable represents external “out of pocket” clinical trial costs in excess of an agreed upon “cap cost” for clinical trials that were ongoing at the time the licensing agreement with the Licensor (defined below) was entered (see Note 9). The licensing agreement allows the Company to bill the Licensor for all external “out of pocket” costs in excess of the cap cost on a quarterly basis. Licensor receivables include both invoiced and un-invoiced costs in excess of the cap. The Company has not established a reserve against this receivable as it is deemed to be 100% collectable. | |||||||||||||||||
Investment Securities | ' | ||||||||||||||||
Investment Securities: | |||||||||||||||||
The Company classifies all investment securities (short term and long term) as available-for-sale, as the sale of such securities may be required prior to maturity to implement management’s strategies. These securities are carried at fair value, with the unrealized gains and losses, reported as a component of accumulated other comprehensive income (loss) in stockholders’ equity until realized. Realized gains and losses from the sale of available-for-sale securities, if any, are determined on a specific identification basis. A decline in the market value of any available-for-sale security below cost that is determined to be other than temporary results in a revaluation of its carrying amount to fair value. The impairment is charged to earnings and a new cost basis for the security is established. Premiums and discounts are amortized or accreted over the life of the related security as an adjustment to yield using the straight-line method. Interest income is recognized when earned. | |||||||||||||||||
Assets Measured at Fair Value on a Recurring Basis | ' | ||||||||||||||||
Assets Measured at Fair Value on a Recurring Basis: | |||||||||||||||||
ASC 820, Fair Value Measurement, or ASC 820, provides a single definition of fair value and a common framework for measuring fair value as well as new disclosure requirements for fair value measurements used in financial statements. Under ASC 820, fair value is determined based upon the exit price that would be received by a company to sell an asset or paid by a company to transfer a liability in an orderly transaction between market participants, exclusive of any transaction costs. Fair value measurements are determined by either the principal market or the most advantageous market. The principal market is the market with the greatest level of activity and volume for the asset or liability. Absent a principal market to measure fair value, the Company uses the most advantageous market, which is the market from which the Company would receive the highest selling price for the asset or pay the lowest price to settle the liability, after considering transaction costs. However, when using the most advantageous market, transaction costs are only considered to determine which market is the most advantageous and these costs are then excluded when applying a fair value measurement. ASC 820 creates a three-level hierarchy to prioritize the inputs used in the valuation techniques to derive fair values. The basis for fair value measurements for each level within the hierarchy is described below, with Level 1 having the highest priority and Level 3 having the lowest. | |||||||||||||||||
Level 1: | Quoted prices in active markets for identical assets or liabilities. | ||||||||||||||||
Level 2: | Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs are observable in active markets. | ||||||||||||||||
Level 3: | Valuations derived from valuation techniques in which one or more significant inputs are unobservable. | ||||||||||||||||
Following are the major categories of assets measured at fair value on a recurring basis as of December 31, 2013 and 2012, using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3) (in thousands): | |||||||||||||||||
December 31, 2013 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Cash equivalents | $ | 41,598 | $ | — | $ | — | $ | 41,598 | |||||||||
Marketable securities—corporate bonds | — | 40,904 | — | 40,904 | |||||||||||||
$ | 41,598 | $ | 40,904 | $ | — | $ | 82,502 | ||||||||||
December 31, 2012 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Cash equivalents | $ | 134,867 | $ | — | $ | — | $ | 134,867 | |||||||||
The Company’s investments in corporate bonds are exposed to price fluctuations. The fair value measurements for corporate bonds are based upon the quoted prices of similar items in active markets multiplied by the number of securities owned, exclusive of any transaction costs and without any adjustments to reflect discounts that may be applied to selling a large block of securities at one time. | |||||||||||||||||
Concentration of Risk | ' | ||||||||||||||||
Concentration of Risk: | |||||||||||||||||
Financial instruments, which potentially subject the Company to concentrations of credit risk, principally consist of cash and cash equivalents. The Company’s cash and cash equivalents in excess of the Federal Deposit Insurance Corporation and the Securities Investor Protection Corporation insured limits at December 31, 2013, were approximately $44.2 million. The Company does not believe it is exposed to any significant credit risk due to the quality nature of the financial instruments in which the money is held. Pursuant to the Company’s internal investment policy, investments must be rated A-1/P-1 or better by Standard and Poor’s Corporation and Moody’s Investor Services at the time of purchase. | |||||||||||||||||
Property and Equipment | ' | ||||||||||||||||
Property and Equipment: | |||||||||||||||||
Property and equipment are recorded at cost and depreciated over estimated useful lives ranging from three to five years using the straight-line method. Leasehold improvements are recorded at cost and amortized over the shorter of their useful lives or the term of the lease by use of the straight-line method. Maintenance and repair costs are charged to operations as incurred. | |||||||||||||||||
The Company assesses the impairment of long-lived assets, primarily property and equipment, whenever events or changes in business circumstances indicate that carrying amounts of the assets may not be fully recoverable. When such events occur, management determines whether there has been impairment by comparing the asset’s carrying value with its fair value, as measured by the anticipated undiscounted net cash flows of the asset. Should impairment exist, the asset is written down to its estimated fair value. The Company has not recognized any impairment losses through December 31, 2013. | |||||||||||||||||
Research and Development Expenses | ' | ||||||||||||||||
Research and Development Expenses: | |||||||||||||||||
Research and development expenses are charged to operations as incurred. The major components of research and development costs include clinical manufacturing costs, clinical trial expenses, consulting and other third-party costs, salaries and employee benefits, stock-based compensation expense, supplies and materials, and allocations of various overhead costs. Clinical trial expenses include, but are not limited to, investigator fees, site costs, comparator drug costs, and clinical research organization, or CRO, costs. In the normal course of business, the Company contracts with third parties to perform various clinical trial activities in the ongoing development of potential products. The financial terms of these agreements are subject to negotiation and variations from contract to contract and may result in uneven payment flows. Payments under the contracts depend on factors such as the achievement of certain events, the successful enrollment of patients and the completion of portions of the clinical trial or similar conditions. The Company’s accruals for clinical trials are based on estimates of the services received and efforts expended pursuant to contracts with numerous clinical trial sites, cooperative groups and CROs. The objective of the Company’s accrual policy is to match the recording of expenses in the Consolidated Financial Statements to the actual services received and efforts expended. As actual costs become known, the Company adjusts its accruals in that period. | |||||||||||||||||
In instances where the Company enters into agreements with third parties for clinical trials and other consulting activities, upfront amounts are recorded to prepaid expenses and other in the accompanying Consolidated Balance Sheets and expensed as services are performed or as the underlying goods are delivered. If the Company does not expect the services to be rendered or goods to be delivered, any remaining capitalized amounts for non-refundable upfront payments are charged to expense immediately. Amounts due under such arrangements may be either fixed fee or fee for service, and may include upfront payments, monthly payments and payments upon the completion of milestones or receipt of deliverables. | |||||||||||||||||
Costs related to the acquisition of technology rights and patents for which development work is still in process are charged to operations as incurred and considered a component of research and development costs. | |||||||||||||||||
Research and Development Reimbursement | ' | ||||||||||||||||
Research and Development Reimbursement: | |||||||||||||||||
The licensing agreement set a “cap” on the amount of external expenses the Company would incur, beginning January 1, 2012, in completing the clinical trials transferred from the Licensor to the Company. The license agreement stipulates that the Licensor would be responsible for all external expenses associated with the transferred clinical trials and that the Company would invoice for such costs on a quarterly basis. All amounts reimbursed by the Licensor represent charges for services provided by third parties and not by the Company; accordingly, the Company has elected to treat the reimbursed costs as a “pass-through” expense billable to the Licensor and as an off set to research and development expenses. Consequently, research and development expenses are recorded net of any excess cap costs billed to the Licensor. The Company recognized approximately $16.4 million and $10.6 million of excess cap cost billed to the Licensor in 2013 and 2012, respectively. | |||||||||||||||||
Stock-Based Compensation | ' | ||||||||||||||||
Stock-Based Compensation: | |||||||||||||||||
Stock option awards: | |||||||||||||||||
ASC 718, Compensation-Stock Compensation, or ASC 718, requires the fair value of all share-based payments to employees, including grants of stock options, to be recognized in the statement of operations over the requisite service period. Under ASC 718, employee option grants are generally valued at the grant date and those valuations do not change once they have been established. The fair value of each option award is estimated on the grant date using the Black-Scholes Option Pricing Method. As allowed by ASC 718 for companies with a short period of publicly traded stock history, the Company’s estimate of expected volatility is based on the average expected volatilities of a sampling of five companies with similar attributes to the Company, including industry, stage of life cycle, size and financial leverage. The risk-free rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant valuation. ASC 718 does not allow companies to account for option forfeitures as they occur; instead, estimated option forfeitures must be calculated when the option is granted to reduce the option expense to be recognized over the life of the award and updated upon receipt of further information as to the amount of options expected to be forfeited. Due to its limited history, the Company uses the simplified method to determine the expected life of the option grants. | |||||||||||||||||
Warrants: | |||||||||||||||||
Warrants granted to employees are normally valued at the fair value of the instrument on the grant date and are recognized in the statement of operations over the requisite service period. When the requisite service period precedes the grant date and a market condition exists in the warrant, the Company values the warrant using the Monte Carlo Simulation Method. When the terms of the warrant become fixed, the Company values the warrant using the Black-Scholes Option Pricing Method. As allowed by ASC 718 for companies with a short period of publicly traded stock history, the Company’s estimate of expected volatility is based on the average volatilities of a sampling of eight to nine companies with similar attributes to the Company, including industry, stage of life cycle, size and financial leverage. The risk-free rate for periods within the contractual life of the warrant is based on the U.S. Treasury yield curve in effect at the time of grant valuation. In determining the value of the warrant until the terms are fixed, the Company factors in the probability of the market condition occurring and several possible scenarios. When the requisite service period precedes the grant date and is deemed to be complete, the Company records the fair value of the warrant at the time of issuance as an equity stock-based compensation transaction. The warrant is revalued each reporting period up to the grant date when the final fair value of the warrant is established and recorded. The grant date is determined when all pertinent information, such as exercise price and quantity are known. | |||||||||||||||||
Income Taxes | ' | ||||||||||||||||
Income Taxes: | |||||||||||||||||
The Company follows ASC 740, Income Taxes, or ASC 740, which requires recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the consolidated financial statements or tax returns. Under this method, deferred tax assets and liabilities are based on the differences between the consolidated financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance to the extent management concludes it is more likely than not that the asset will not be realized. 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 standard addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the Consolidated Financial Statements. Under ASC 740, the Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the tax authorities, based on the technical merits of the position. The tax benefits recognized in the Consolidated Financial Statements from such a position should be measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. ASC 740 also provides guidance on de-recognition, classification, interest and penalties on income taxes, accounting in interim periods and requires increased disclosures. At the date of adoption, and as of December 31, 2013 and 2012, the Company did not have a liability for unrecognized tax uncertainties. | |||||||||||||||||
The Company is subject to routine audits by taxing jurisdictions. As of December 31, 2013, the Company’s tax years for 2010, 2011 and 2012 are subject to examination by the authorities. Currently, the Company is under review for the 2011 and 2012 tax years by the Internal Revenue Service. The Company’s policy is to record interest and penalties on uncertain tax positions as income tax expense. As of December 31, 2013 and 2012, the Company had no accrued interest or penalties related to uncertain tax positions. | |||||||||||||||||
Net Loss per Common Share | ' | ||||||||||||||||
Net Loss per Common Share: | |||||||||||||||||
Basic net loss per common share is computed by dividing net loss applicable to common stockholders by the weighted average number of common shares outstanding during the periods presented as required by ASC 260, Earnings per Share. Diluted earnings per common share are the same as basic earnings per share because the assumed exercise of the Company’s outstanding options are anti-dilutive. For the year ended December 31, 2013, potentially dilutive securities excluded from the calculations were 2,604,224 shares issuable upon exercise of options and 2,116,250 shares issuable upon exercise of a warrant. For the years ended December 31, 2012 and 2011, potentially dilutive securities excluded from the earnings per common share calculation were 4,022,584 and 670,000, respectively. | |||||||||||||||||
Deferred Rent | ' | ||||||||||||||||
Deferred Rent: | |||||||||||||||||
The Company has entered into operating lease agreements for its corporate offices in Los Angeles and South San Francisco that contain provisions for future rent increases, leasehold improvement allowances and rent abatements. The Company records monthly rent expense equal to the total of the payments due over the lease term, divided by the number of months of the lease term. The difference between the rent expense recorded and the amount paid is credited or charged to deferred rent, which is reflected as a separate line item in the accompanying Consolidated Balance Sheets. Additionally, the Company recorded as deferred rent the cost of the leasehold improvements paid by the landlord, which is amortized on a straight-line basis over the term of the lease. | |||||||||||||||||
Reclassifications | ' | ||||||||||||||||
Reclassifications: | |||||||||||||||||
Certain amounts for 2012 and 2011 have been reclassified to conform to the current year’s presentation. |
Significant_Accounting_Policie2
Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Assets Measured at Fair Value on Recurring Basis | ' | ||||||||||||||||
Following are the major categories of assets measured at fair value on a recurring basis as of December 31, 2013 and 2012, using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3) (in thousands): | |||||||||||||||||
December 31, 2013 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Cash equivalents | $ | 41,598 | $ | — | $ | — | $ | 41,598 | |||||||||
Marketable securities—corporate bonds | — | 40,904 | — | 40,904 | |||||||||||||
$ | 41,598 | $ | 40,904 | $ | — | $ | 82,502 | ||||||||||
December 31, 2012 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Cash equivalents | $ | 134,867 | $ | — | $ | — | $ | 134,867 |
Prepaid_Expenses_and_Other_Tab
Prepaid Expenses and Other (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Components of Prepaid Expenses and Other | ' | ||||||||
Prepaid expenses and other consisted of the following at December 31 (in thousands): | |||||||||
2013 | 2012 | ||||||||
Current: | |||||||||
CRO services | $ | 863 | $ | 365 | |||||
Other clinical development | 1,089 | 252 | |||||||
Insurance | 554 | 229 | |||||||
Prepaid rent | — | 74 | |||||||
Other | 129 | 32 | |||||||
2,635 | 952 | ||||||||
Long-term: | |||||||||
CRO services | 1,509 | — | |||||||
Other clinical development | 3,359 | — | |||||||
Insurance | 142 | — | |||||||
Other | 70 | 36 | |||||||
5,080 | 36 | ||||||||
Totals | $ | 7,715 | $ | 988 | |||||
Property_and_Equipment_Tables
Property and Equipment (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Property and Equipment | ' | ||||||||
Property and equipment consisted of the following at December 31 (in thousands): | |||||||||
2013 | 2012 | ||||||||
Leasehold improvements | $ | 914 | $ | 910 | |||||
Computer equipment | 874 | 535 | |||||||
Telephone equipment | 82 | 34 | |||||||
Furniture and fixtures | 513 | 276 | |||||||
2,383 | 1,755 | ||||||||
Less: accumulated depreciation and amortization | (699 | ) | (276 | ) | |||||
Totals | $ | 1,684 | $ | 1,479 | |||||
Accrued_Expenses_Tables
Accrued Expenses (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Accrued Expenses | ' | ||||||||
Accrued expenses consisted of the following at December 31 (in thousands): | |||||||||
2013 | 2012 | ||||||||
Accrued CRO/licensor services | $ | 4,801 | $ | 19,846 | |||||
Accrued other clinical development | 2,369 | 389 | |||||||
Accrued legal fees | 84 | 121 | |||||||
Accrued compensation | 1,066 | 787 | |||||||
Other | 259 | 76 | |||||||
$ | 8,579 | $ | 21,219 | ||||||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Fair Value Options Weighted-Average Assumptions | ' | ||||||||||||||||
The fair value of options granted to employees was estimated using the Black-Scholes Option Pricing Method (see Note 2) with the following weighted-average assumptions used during the years ended December 31: | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Dividend yield | 0 | % | 0 | % | 0 | % | |||||||||||
Expected volatility | 83.6 | % | 86.4 | % | 86 | % | |||||||||||
Risk-free interest rate | 1.4 | % | 1 | % | 1.1 | % | |||||||||||
Expected life in years | 5.85 | 5.79 | 5.81 | ||||||||||||||
Recognized Expense of Share Based Compensation | ' | ||||||||||||||||
Employee stock-based compensation was as follows for the years ended December 31 (in thousands except per share data): | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Stock-based compensation: | |||||||||||||||||
Options- | |||||||||||||||||
Research and development | $ | 5,188 | $ | 924 | $ | 38 | |||||||||||
General and administrative, or G&A | 2,331 | 484 | 29 | ||||||||||||||
Warrants -G&A | — | 18,222 | 7,586 | ||||||||||||||
Total share-based compensation expense | $ | 7,519 | $ | 19,630 | $ | 7,653 | |||||||||||
Impact on basic and diluted net loss per share | $ | 0.26 | $ | 0.9 | $ | 0.99 | |||||||||||
Weighted average shares (basic and diluted) | 28,696,573 | 21,725,986 | 7,746,529 | ||||||||||||||
Activity with Respect to Options Granted | ' | ||||||||||||||||
Activity with respect to options granted under the 2011 Plan is summarized as follows: | |||||||||||||||||
Shares | Weighted | Weighted Average | Aggregate | ||||||||||||||
Average | Remaining | Intrinsic Value | |||||||||||||||
Exercise | Contractual Term | (in thousands) | |||||||||||||||
Price | (years) | ||||||||||||||||
Outstanding at December 31, 2011 | — | — | |||||||||||||||
Options granted in the period ended March 31, 2012 for which compensation was recognized during 2011 | 670,000 | $ | 3.75 | ||||||||||||||
Granted during 2012 | 1,278,000 | $ | 11.48 | ||||||||||||||
Forfeited during 2012 | (30,000 | ) | $ | 3.75 | |||||||||||||
Exercised during 2012 | (11,666 | ) | $ | 3.75 | $ | 190 | |||||||||||
Outstanding at December 31, 2012 | 1,906,334 | $ | 8.93 | ||||||||||||||
Granted during 2013 | 1,032,375 | $ | 44.77 | ||||||||||||||
Forfeited during 2013 | (19,862 | ) | $ | 11.6 | |||||||||||||
Exercised during 2013 | (314,623 | ) | $ | 7.29 | $ | 23,525 | |||||||||||
Outstanding at December 31, 2013 | 2,604,224 | $ | 23.31 | 8.9 | $ | 208,902 | |||||||||||
Unvested at December 31, 2013 | 1,838,633 | $ | 29.51 | 9.1 | $ | 136,105 | |||||||||||
Exercisable at December 31, 2013 | 765,591 | $ | 8.44 | 8.3 | $ | 72,797 | |||||||||||
Stock Options | ' | ||||||||||||||||
Stock options | Shares | Weighted | |||||||||||||||
Average | |||||||||||||||||
Grant-Date | |||||||||||||||||
Fair Value | |||||||||||||||||
Nonvested shares at December 31, 2012 | 1,659,399 | $ | 7.03 | ||||||||||||||
Granted | 1,032,375 | 29.94 | |||||||||||||||
Vested/Issued | (833,279 | ) | 9.85 | ||||||||||||||
Forfeited | (19,862 | ) | 8.12 | ||||||||||||||
Nonvested shares at December 31, 2013 | 1,838,633 | $ | 20.18 | ||||||||||||||
Monte Carlo Simulation Valuation Model | ' | ||||||||||||||||
Warrant Fair Market Value Assumptions | ' | ||||||||||||||||
The fair value of the warrants issued was determined using the Monte Carlo Simulation Method with the following assumptions: | |||||||||||||||||
October | |||||||||||||||||
2011 | |||||||||||||||||
Dividend yield | 0 | % | |||||||||||||||
Expected volatility | 84.4 | % | |||||||||||||||
Risk-free interest rate | 1.81 | % | |||||||||||||||
Common stock price on date of issuance | $ | 3.75 | |||||||||||||||
Exercise price | $ | 0.01 | |||||||||||||||
Warrant term in years | 10 | ||||||||||||||||
The fair value at December 31, 2011, was determined by the following assumptions using the Monte Carlo Simulation Method: | |||||||||||||||||
Dec-11 | |||||||||||||||||
Dividend yield | 0% | ||||||||||||||||
Expected volatility | 84.4%-85.1% | ||||||||||||||||
Risk-free interest rate | 1.81%-1.89% | ||||||||||||||||
Warrant term in years | 10 | ||||||||||||||||
Black Scholes Option Pricing Model | ' | ||||||||||||||||
Warrant Fair Market Value Assumptions | ' | ||||||||||||||||
The fair value of the warrant at October 24, 2012, was determined by the following assumptions using the Black-Scholes Option Pricing Method: | |||||||||||||||||
October | |||||||||||||||||
2012 | |||||||||||||||||
Common stock price | $ | 16.00 | |||||||||||||||
Dividend yield | 0 | % | |||||||||||||||
Expected volatility | 75.5 | % | |||||||||||||||
Risk-free interest rate | 1.81 | % | |||||||||||||||
Remaining warrant term in years | 9 |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Components of Net Deferred Tax Assets | ' | ||||||||||||
The components of the Company’s net deferred tax assets as of December 31, 2013 and 2012 are as follows (in thousands): | |||||||||||||
Federal | State | Total | |||||||||||
Deferred tax assets—2013: | |||||||||||||
Net operating loss carry forwards | $ | 35,641 | $ | 6,116 | $ | 41,757 | |||||||
Business credit carryforwards | 3,513 | 1,539 | 5,052 | ||||||||||
Organization costs | 200 | 34 | 234 | ||||||||||
Compensation | 9,791 | 1,681 | 11,472 | ||||||||||
Depreciation | 42 | 7 | 49 | ||||||||||
Other | 73 | 12 | 85 | ||||||||||
49,260 | 9,389 | 58,649 | |||||||||||
Deferred tax liabilities | — | — | — | ||||||||||
Total deferred tax assets | 49,260 | 9,389 | 58,649 | ||||||||||
Valuation allowance | (49,260 | ) | (9,389 | ) | (58,649 | ) | |||||||
Net deferred tax assets | $ | — | $ | — | $ | — | |||||||
Federal | State | Total | |||||||||||
Deferred tax assets—2012: | |||||||||||||
Net operating loss carry | $ | 19,020 | $ | 3,263 | $ | 22,283 | |||||||
forwards | |||||||||||||
Organization costs | 230 | 40 | 270 | ||||||||||
Compensation | 9,080 | 1,558 | 10,638 | ||||||||||
Other | 64 | 11 | 75 | ||||||||||
28,394 | 4,872 | 33,266 | |||||||||||
Deferred tax liabilities— depreciation | (2 | ) | — | (2 | ) | ||||||||
Total deferred tax assets | 28,392 | 4,872 | 33,264 | ||||||||||
Valuation allowance | (28,392 | ) | (4,872 | ) | (33,264 | ) | |||||||
Net deferred tax assets | $ | — | $ | — | $ | — | |||||||
Schedule of Income Tax Reconciliation | ' | ||||||||||||
The provision (credit) for income taxes in the accompanying Consolidated Statements of Operations differs from the amount calculated by applying the statutory income tax rate to income (loss) from continuing operations before income taxes. The primary components of such differences are as follows as of December 31 (in thousands): | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Tax computed at the federal statutory rate | $ | (18,584 | ) | $ | (25,280 | ) | $ | (3,479 | ) | ||||
State taxes | (3,948 | ) | (4,279 | ) | (594 | ) | |||||||
Permanent items | (806 | ) | 346 | 24 | |||||||||
Change in valuation allowance | 23,338 | 29,213 | 4,049 | ||||||||||
Total provision | $ | — | $ | — | $ | — | |||||||
Reconciliation of Unrecognized Tax Benefits | ' | ||||||||||||
The following is a tabular reconciliation of the total amounts of unrecognized tax benefits at December 31: | |||||||||||||
(in thousands) | 2013 | 2012 | |||||||||||
Unrecognized tax benefits—January 1 | $ | — | $ | — | |||||||||
Gross increases—tax positions in prior period | 205 | — | |||||||||||
Gross decreases—tax positions in prior period | — | — | |||||||||||
Gross increases—tax positions in current period | 1,058 | — | |||||||||||
Settlement | — | — | |||||||||||
Lapse of statute of limitations | — | — | |||||||||||
Unrecognized tax benefits—December 31 | $ | 1,263 | $ | — | |||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Future Minimum Lease Payments | ' | ||||||||
Future minimum lease payments for each of the years subsequent to December 31, 2013, are as follows (in thousands): | |||||||||
Year Ending December 31, | Amount | ||||||||
2014 | $ | 1,117 | |||||||
2015 | 1,313 | ||||||||
2016 | 1,376 | ||||||||
2017 | 1,417 | ||||||||
2018 | 1,459 | ||||||||
Thereafter | 308 | ||||||||
Total | $ | 6,990 | |||||||
Summary of Clinical Research Organization Contracts | ' | ||||||||
The CRO contracts held by the Company as of December 31, 2013, are summarized as follows (in thousands): | |||||||||
Indication | Total | Months | |||||||
Contract | Remaining | ||||||||
Amount | on Contract | ||||||||
Remaining | |||||||||
as of | |||||||||
December 31, | |||||||||
2013 | |||||||||
HER2 Mutation Positive Solid Tumor (5201) | $ | 3,560 | 32 | ||||||
HER2 Mutuant Non-Small Cell Lung Cancer (4201) | 5,060 | 28 | |||||||
HER2 Overexpressed/Amplified Breast Cancer (Licensor Legacy Clinical Trials) | 18,389 | 15 | |||||||
HER2 Plus Metastatic Breast Cancer (1301) | 46,477 | 43 | |||||||
Metastatic HER2-Amplified or Triple-Negative Breast Cancer (10-005) | 1,399 | 36 | |||||||
$ | 74,885 | ||||||||
Quarterly_Financial_Data_Table
Quarterly Financial Data (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Quarterly Financial Data | ' | ||||||||||||||||
Quarterly financial data (in thousands except share | |||||||||||||||||
data): | |||||||||||||||||
(unaudited) | Three Months Ended | ||||||||||||||||
March 31, | June 30, | September 30, | December 31, | ||||||||||||||
2013 | |||||||||||||||||
Revenues | $ | — | $ | — | $ | — | $ | — | |||||||||
Net loss | (11,780 | ) | (12,650 | ) | (14,283 | ) | (15,946 | ) | |||||||||
Net loss applicable to common stock | (11,780 | ) | (12,650 | ) | (14,283 | ) | (15,946 | ) | |||||||||
Net loss per share—basic and diluted | (0.41 | ) | (0.44 | ) | (0.50 | ) | (0.55 | ) | |||||||||
Weighted-average common shares outstanding—basic and diluted | 28,676,666 | 28,676,666 | 28,682,055 | 28,750,382 | |||||||||||||
2012 | |||||||||||||||||
Revenues | $ | — | $ | — | $ | — | $ | — | |||||||||
Net loss | (11,826 | ) | (14,754 | ) | (25,859 | ) | (21,913 | ) | |||||||||
Net loss applicable to common stock | (11,826 | ) | (14,754 | ) | (25,859 | ) | (21,913 | ) | |||||||||
Net loss per share—basic and diluted | (0.59 | ) | (0.74 | ) | (1.29 | ) | (0.83 | ) | |||||||||
Weighted-average common shares outstanding—basic and diluted | 20,040,000 | 20,040,000 | 20,040,000 | 26,511,141 |
Business_and_Basis_of_Presenta1
Business and Basis of Presentation - Additional Information (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended | 39 Months Ended | 1 Months Ended | |||||||||||
Sep. 30, 2011 | 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, 2010 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Sep. 29, 2011 | Feb. 14, 2014 | |
Subsequent Event | ||||||||||||||||
Underwritten Public Offering | ||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net loss | ' | ($15,946,000) | ($14,283,000) | ($12,650,000) | ($11,780,000) | ($21,913,000) | ($25,859,000) | ($14,754,000) | ($11,826,000) | ($7,000) | ($54,659,000) | ($74,352,000) | ($10,233,000) | ($139,251,000) | ' | ' |
Cash flows from operating activities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -55,048,000 | -44,012,000 | -1,824,000 | -100,891,000 | ' | ' |
Net proceeds from issuance of common stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 129,214,000 | 56,741,000 | 185,955,000 | ' | 129,300,000 |
Merger agreement, shares Issued | 18,666,733 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Merger agreement, shares received in exchange | 18,666,733 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Merger agreement, shares exchange ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' |
Share redeemed, aggregate consideration | 40,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Merger related Professional fees paid | 40,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Consideration paid for former Stockholders of IAC and their attorney | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $80,000 | ' | ' | ' |
Significant_Accounting_Policie3
Significant Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Receivables, deemed collection percentage | 100.00% | ' | ' |
Cash and cash equivalents in excess of insured limits | $44.20 | ' | ' |
Costs of excess cap billed to the licensor | $16.40 | $10.60 | ' |
Anti-dilutive securities excluded from the calculation of diluted earnings per share | ' | 4,022,584 | 670,000 |
Stock Options | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Anti-dilutive securities excluded from the calculation of diluted earnings per share | 2,604,224 | ' | ' |
Warrants | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Anti-dilutive securities excluded from the calculation of diluted earnings per share | 2,116,250 | ' | ' |
Minimum | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Property and equipment, useful lives | '3 years | ' | ' |
Maximum | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Cash equivalents, original maturity | '3 months | ' | ' |
Property and equipment, useful lives | '5 years | ' | ' |
Assets_Measured_at_Fair_Value_
Assets Measured at Fair Value on Recurring Basis (Detail) (Fair Value, Measurements, Recurring, 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] | ' | ' |
Cash equivalents | $41,598 | $134,867 |
Total | 82,502 | ' |
Marketable securities corporate bonds | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Marketable securities-corporate bonds | 40,904 | ' |
Level 1 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash equivalents | 41,598 | 134,867 |
Total | 41,598 | ' |
Level 2 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total | 40,904 | ' |
Level 2 | Marketable securities corporate bonds | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Marketable securities-corporate bonds | $40,904 | ' |
Components_of_Prepaid_Expenses
Components of Prepaid Expenses and Other (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Prepayments and Deposits [Line Items] | ' | ' |
Prepaid expenses and other, current | $2,635 | $952 |
Prepaid expenses and other, long-term | 5,080 | 36 |
Totals | 7,715 | 988 |
CRO services | ' | ' |
Prepayments and Deposits [Line Items] | ' | ' |
Prepaid expenses and other, current | 863 | 365 |
Prepaid expenses and other, long-term | 1,509 | ' |
Other clinical development | ' | ' |
Prepayments and Deposits [Line Items] | ' | ' |
Prepaid expenses and other, current | 1,089 | 252 |
Prepaid expenses and other, long-term | 3,359 | ' |
Insurance | ' | ' |
Prepayments and Deposits [Line Items] | ' | ' |
Prepaid expenses and other, current | 554 | 229 |
Prepaid expenses and other, long-term | 142 | ' |
Prepaid rent | ' | ' |
Prepayments and Deposits [Line Items] | ' | ' |
Prepaid expenses and other, current | ' | 74 |
Other Assets | ' | ' |
Prepayments and Deposits [Line Items] | ' | ' |
Prepaid expenses and other, current | 129 | 32 |
Prepaid expenses and other, long-term | $70 | $36 |
Property_and_Equipment_Detail
Property and Equipment (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Leasehold improvements | $914 | $910 |
Furniture and fixtures | 513 | 276 |
Property, Plant and Equipment, Gross | 2,383 | 1,755 |
Less: accumulated depreciation and amortization | -699 | -276 |
Totals | 1,684 | 1,479 |
Computer Equipment | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment other, gross | 874 | 535 |
Telephone Equipment | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment other, gross | $82 | $34 |
Accrued_Expenses_Detail
Accrued Expenses (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Schedule of Accrued Liabilities [Line Items] | ' | ' |
Accrued CRO/licensor services | $4,801 | $19,846 |
Accrued other clinical development | 2,369 | 389 |
Accrued legal fees | 84 | 121 |
Accrued compensation | 1,066 | 787 |
Other | 259 | 76 |
Totals | $8,579 | $21,219 |
Stockholders_Equity_Additional
Stockholders Equity - Additional Information (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended | 39 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 1 Months Ended | 1 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | ||||||||||||||||
Oct. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Sep. 15, 2011 | Sep. 14, 2011 | Oct. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Oct. 31, 2011 | Oct. 31, 2011 | Oct. 31, 2011 | Nov. 30, 2011 | Nov. 18, 2011 | Oct. 31, 2012 | Oct. 18, 2012 | Oct. 31, 2012 | Oct. 31, 2011 | Sep. 30, 2010 | Dec. 31, 2011 | Dec. 31, 2010 | Oct. 31, 2011 | Nov. 30, 2011 | Nov. 30, 2011 | |
Convertible Debt | 2011 Incentive Award Plan | Maximum | Maximum | Minimum | Minimum | Private Placement | Private Placement | Subscription Agreements | Subscription Agreements | Underwritten Public Offering | Underwritten Public Offering | Underwritten Public Offering | President | President | President | President | President | Leerink | National Securities Corporation | |||||||||
2011 Incentive Award Plan | Minimum gross proceed of first subsequent financing for warrants be exercisable | Maximum | Person | Overallotment Option Exercised by Underwriters | Minimum | Subscription Agreements | Subscription Agreements | |||||||||||||||||||||
Stockholders Equity Note [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of common stock (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 40,000 | ' | ' | ' | ' | ' | 14,666,733 | ' | 1,333,267 | ' | 7,500,000 | ' | 1,125,000 | ' | 4,000,000 | ' | ' | ' | ' | ' |
Issuance of common stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $400 | ' | ' | ' | ' | ' |
Issuance of common stock, per share | ' | $0.00 | ' | $16 | $3.75 | ' | ' | ' | $3.75 | ' | ' | ' | $3.75 | ' | $3.75 | ' | $3.75 | ' | $16 | ' | $16 | ' | $0.00 | ' | ' | ' | ' | ' |
Capital contribution by the CEO | ' | 7,000 | ' | ' | 61,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 61,983 | 6,531 | ' | ' | ' |
Aggregate Gross proceeds of common stock | ' | ' | ' | 129,214,000 | 56,741,000 | 185,955,000 | ' | ' | 150,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 129,200,000 | ' | ' | ' | ' | ' | ' | ' |
Gross proceeds from issuance of common stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 55,000,000 | ' | 5,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock price | ' | ' | $16 | ' | ' | $16 | ' | ' | ' | ' | ' | ' | ' | ' | ' | $3.75 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Term of Warrant | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrant, exercise price | 0.01 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of accredited investors | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 139 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Private Placement Fee | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 84,000 | 150,000 |
Legal fees and other costs associated with the equity raises | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 487,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, par value | ' | ' | $0.00 | $0.00 | ' | $0.00 | $0.00 | $0.00 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.00 | ' | ' | ' | ' | ' | ' | ' | ' |
Gross proceeds from issuance of common stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 138,000,000 | ' | ' | ' | ' | ' | ' | ' |
Public offering, underwriting discount and estimated offering expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8,800,000 | ' | ' | ' | ' | ' | ' | ' |
Issuance of common stock on exercise of option | ' | ' | 314,623 | 11,666 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, shares authorized | ' | ' | 100,000,000 | 100,000,000 | ' | 100,000,000 | 25,000,000 | 1,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares of stock authorized before amendment | ' | ' | 110,000,000 | ' | ' | 110,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock, shares authorized | ' | ' | 10,000,000 | ' | ' | 10,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock, par value | ' | ' | $0.00 | ' | ' | $0.00 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity method investment ownership percentage | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares of stock authorized | 100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of investors to which anti-dilutive warrants were issued | 27 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Portion of the private placement proceeds attributed to the fair value of the warrants | 1,800,000 | ' | ' | 18,222,000 | 7,586,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of shares held by related party | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 21.00% | ' | ' | ' | ' | ' | ' |
Outstanding shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 18,666,733 | ' | ' | ' | ' | ' | ' |
Minimum ownership percentage of outstanding shares of common stock the president need to maintain after issuance of warrants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20.00% | ' | ' |
Gross cash proceeds from minimum first subsequent financing of warrants exercisable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrant expiration date | 4-Oct-21 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares of common stock that could be acquired by warrant | ' | ' | 2,116,250 | ' | ' | 2,116,250 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Value of warrants | 6,900,000 | ' | ' | 25,800,000 | 7,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Adjustment to fair value of warrants | ' | ' | ' | 18,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value estimate assumption, projected equity raises | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000,000 | ' | 15,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock options granted, term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock shares reserved for issuance | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,529,412 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock issuable upon exercise of outstanding awards granted | ' | ' | 765,591 | ' | ' | 765,591 | ' | ' | ' | 2,604,224 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock available for future issuance | ' | ' | ' | ' | ' | ' | ' | ' | ' | 598,899 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated unrecognized employee compensation cost related to non-vested stock options granted | ' | ' | $33,800,000 | ' | ' | $33,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated unrecognized employee compensation cost related to non-vested stock options granted, Weighted-average period of recognition | ' | ' | '2 years 6 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted-average grant date fair value of options granted | ' | ' | $29.94 | $6.38 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair_Value_of_Warrants_Issued_
Fair Value of Warrants Issued Using Monte Carlo Simulation Method (Detail) (USD $) | Dec. 31, 2013 | Oct. 31, 2011 | Oct. 31, 2011 | Dec. 31, 2011 |
Monte Carlo Simulation Valuation Model | Monte Carlo Simulation Valuation Model | |||
Class of Warrant or Right [Line Items] | ' | ' | ' | ' |
Dividend yield | ' | ' | 0.00% | 0.00% |
Expected volatility | ' | ' | 84.40% | ' |
Risk-free interest rate | ' | ' | 1.81% | ' |
Common stock price on date of issuance | $16 | ' | $3.75 | ' |
Exercise price | ' | 0.01 | 0.01 | ' |
Warrant term in years | ' | ' | '10 years | '10 years |
Fair_Value_of_Warrants_Determi
Fair Value of Warrants Determined Using Black-Scholes Options Pricing Method (Detail) (USD $) | Dec. 31, 2013 | Oct. 31, 2012 |
Black Scholes Option Pricing Model | ||
Class of Warrant or Right [Line Items] | ' | ' |
Common stock price | $16 | $16 |
Dividend yield | ' | 0.00% |
Expected volatility | ' | 75.50% |
Risk-free interest rate | ' | 1.81% |
Remaining warrant term in years | ' | '9 years |
Fair_Value_of_Warrants_Determi1
Fair Value of Warrants Determined Using Monte Carlo Simulation Method (Detail) (Monte Carlo Simulation Valuation Model) | 1 Months Ended | 12 Months Ended |
Oct. 31, 2011 | Dec. 31, 2011 | |
Class of Warrant or Right [Line Items] | ' | ' |
Dividend yield | 0.00% | 0.00% |
Expected volatility | 84.40% | ' |
Risk-free interest rate | 1.81% | ' |
Warrant term in years | '10 years | '10 years |
Minimum | ' | ' |
Class of Warrant or Right [Line Items] | ' | ' |
Expected volatility | ' | 84.40% |
Risk-free interest rate | ' | 1.81% |
Maximum | ' | ' |
Class of Warrant or Right [Line Items] | ' | ' |
Expected volatility | ' | 85.10% |
Risk-free interest rate | ' | 1.89% |
Fair_Value_Options_WeightedAve
Fair Value Options Weighted-Average Assumptions (Detail) (Stock Options) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Stock Options | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Dividend yield | 0.00% | 0.00% | 0.00% |
Expected volatility | 83.60% | 86.40% | 86.00% |
Risk-free interest rate | 1.40% | 1.00% | 1.10% |
Expected life in years | '5 years 10 months 6 days | '5 years 9 months 15 days | '5 years 9 months 22 days |
StockBased_Compensation_Expens
Stock-Based Compensation Expense (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 39 Months Ended | |||||||||
In Thousands, except 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 | Dec. 31, 2013 |
Share Based Compensation [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based compensation expense | ' | ' | ' | ' | ' | ' | ' | ' | $7,519 | $1,408 | $67 | $8,994 |
Total share-based compensation expense | ' | ' | ' | ' | ' | ' | ' | ' | 7,519 | 19,630 | 7,653 | ' |
Impact on basic and diluted net loss per share | ' | ' | ' | ' | ' | ' | ' | ' | $0.26 | $0.90 | $0.99 | ' |
Weighted average shares (basic and diluted) | 28,750,382 | 28,682,055 | 28,676,666 | 28,676,666 | 26,511,141 | 20,040,000 | 20,040,000 | 20,040,000 | 28,696,573 | 21,725,986 | 7,746,529 | ' |
Stock Options | Research and development | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share Based Compensation [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based compensation expense | ' | ' | ' | ' | ' | ' | ' | ' | 5,188 | 924 | 38 | ' |
Stock Options | General and administrative | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share Based Compensation [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based compensation expense | ' | ' | ' | ' | ' | ' | ' | ' | 2,331 | 484 | 29 | ' |
Warrants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share Based Compensation [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based compensation expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | $18,222 | $7,586 | ' |
Activity_with_Respect_to_Optio
Activity with Respect to Options Granted (Detail) (USD $) | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Shares | ' | ' |
Beginning balance, shares | 1,906,334 | ' |
Granted, shares | 1,032,375 | 1,278,000 |
Forfeited, shares | -19,862 | -30,000 |
Exercised, shares | -314,623 | -11,666 |
Ending balance, shares | 2,604,224 | 1,906,334 |
Unvested, shares | 1,838,633 | ' |
Exercisable, shares | 765,591 | ' |
Weighted Average Exercise Price | ' | ' |
Beginning Balance, Weighted Average Exercise Price | $8.93 | ' |
Granted, Weighted Average Exercise Price | $44.77 | $11.48 |
Forfeited, Weighted Average Exercise Price | $11.60 | $3.75 |
Exercised, Weighted Average Exercise Price | $7.29 | $3.75 |
Ending Balance, Weighted Average Exercise Price | $23.31 | $8.93 |
Unvested, Weighted Average Exercise Price | $29.51 | ' |
Exercisable, Weighted Average Exercise Price | $8.44 | ' |
Weighted Average Remaining Contractual Term (years) | ' | ' |
Ending balance, Weighted Average Remaining Contractual Term (years) | '8 years 10 months 24 days | ' |
Unvested, Weighted Average Remaining Contractual Term (years) | '9 years 1 month 6 days | ' |
Exercisable, Weighted Average Remaining Contractual Term (years) | '8 years 3 months 18 days | ' |
Aggregate Intrinsic Value | ' | ' |
Exercised, Aggregate Intrinsic Value | $23,525 | $190 |
Ending balance, Aggregate Intrinsic Value | 208,902 | ' |
Unvested, Aggregate Intrinsic Value | 136,105 | ' |
Exercisable, Aggregate Intrinsic Value | $72,797 | ' |
Stock Options to Employees Hired Prior to December 31,2011 | ' | ' |
Shares | ' | ' |
Granted, shares | ' | 670,000 |
Weighted Average Exercise Price | ' | ' |
Granted, Weighted Average Exercise Price | ' | $3.75 |
Stock_Options_Detail
Stock Options (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Shares | ' | ' |
Beginning balance, shares | 1,906,334 | ' |
Granted | 1,032,375 | 1,278,000 |
Forfeited | -19,862 | -30,000 |
Ending balance, shares | 2,604,224 | 1,906,334 |
Weighted Average Grant-Date Fair Value | ' | ' |
Granted | $29.94 | $6.38 |
Non Vested Stock Options | ' | ' |
Shares | ' | ' |
Beginning balance, shares | 1,659,399 | ' |
Granted | 1,032,375 | ' |
Vested/Issued | -833,279 | ' |
Forfeited | -19,862 | ' |
Ending balance, shares | 1,838,633 | ' |
Weighted Average Grant-Date Fair Value | ' | ' |
Beginning balance, Weighted Average Grant-Date Fair Value | $7.03 | ' |
Granted | $29.94 | ' |
Vested/Issued | $9.85 | ' |
Forfeited | $8.12 | ' |
Ending balance, Weighted Average Grant-Date Fair Value | $20.18 | ' |
Savings_Plan_Additional_Inform
Savings Plan - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Savings Plan [Line Items] | ' | ' | ' |
Employer matching contribution expenses | $0.20 | $0.10 | $0 |
First 3% of each Participant's Contributions | ' | ' | ' |
Savings Plan [Line Items] | ' | ' | ' |
Company's matching contributions to the 401(k)plan | 100.00% | ' | ' |
Second 2% of each Participant's Contributions | ' | ' | ' |
Savings Plan [Line Items] | ' | ' | ' |
Company's matching contributions to the 401(k)plan | 50.00% | ' | ' |
Components_of_Net_Deferred_Tax
Components of Net Deferred Tax Assets (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deferred tax assets-2012: | ' | ' |
Net operating loss carry forwards | $41,757 | $22,283 |
Business credit carryforwards | 5,052 | ' |
Organization costs | 234 | 270 |
Compensation | 11,472 | 10,638 |
Depreciation | 49 | ' |
Other | 85 | 75 |
Deferred Tax Assets, Gross, Total | 58,649 | 33,266 |
Deferred tax liabilities | ' | ' |
Deferred tax liabilities- depreciation | ' | -2 |
Total deferred tax assets | 58,649 | 33,264 |
Valuation allowance | -58,649 | -33,264 |
Net deferred tax assets | ' | ' |
Federal | ' | ' |
Deferred tax assets-2012: | ' | ' |
Net operating loss carry forwards | 35,641 | 19,020 |
Business credit carryforwards | 3,513 | ' |
Organization costs | 200 | 230 |
Compensation | 9,791 | 9,080 |
Depreciation | 42 | ' |
Other | 73 | 64 |
Deferred Tax Assets, Gross, Total | 49,260 | 28,394 |
Deferred tax liabilities | ' | ' |
Deferred tax liabilities- depreciation | ' | -2 |
Total deferred tax assets | 49,260 | 28,392 |
Valuation allowance | -49,260 | -28,392 |
Net deferred tax assets | ' | ' |
State | ' | ' |
Deferred tax assets-2012: | ' | ' |
Net operating loss carry forwards | 6,116 | 3,263 |
Business credit carryforwards | 1,539 | ' |
Organization costs | 34 | 40 |
Compensation | 1,681 | 1,558 |
Depreciation | 7 | ' |
Other | 12 | 11 |
Deferred Tax Assets, Gross, Total | 9,389 | 4,872 |
Deferred tax liabilities | ' | ' |
Total deferred tax assets | 9,389 | 4,872 |
Valuation allowance | -9,389 | -4,872 |
Net deferred tax assets | ' | ' |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Income Taxes [Line Items] | ' | ' |
Increase in valuation allowance | $25,300,000 | $29,200,000 |
Federal operating loss carryforwards, expiration beginning year | '2031 | ' |
State operating loss carryforwards, expiration beginning year | '2031 | ' |
Increase in equity with deferred tax assets realization | 8,100,000 | ' |
Unrecognized tax benefits that would affect the effective tax rate, if recognized | 0 | ' |
Federal | ' | ' |
Income Taxes [Line Items] | ' | ' |
Operating loss carryforwards | 104,800,000 | ' |
Federal | Research and development | ' | ' |
Income Taxes [Line Items] | ' | ' |
Tax credit carryforwards | 4,400,000 | ' |
State | ' | ' |
Income Taxes [Line Items] | ' | ' |
Operating loss carryforwards | 104,800,000 | ' |
State | Research and development | ' | ' |
Income Taxes [Line Items] | ' | ' |
Tax credit carryforwards | $2,900,000 | ' |
Schedule_of_Income_Tax_Reconci
Schedule of Income Tax Reconciliation (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] | ' | ' | ' |
Tax computed at the federal statutory rate | ($18,584) | ($25,280) | ($3,479) |
State taxes | -3,948 | -4,279 | -594 |
Permanent items | -806 | 346 | 24 |
Change in valuation allowance | 23,338 | 29,213 | 4,049 |
Total provision | ' | ' | ' |
Reconciliation_of_Unrecognized
Reconciliation of Unrecognized Tax Benefits (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of Unrecognized Tax Benefits [Line Items] | ' | ' |
Gross increases-tax positions in prior period | $205 | ' |
Gross decreases-tax positions in prior period | ' | ' |
Gross increases-tax positions in current period | 1,058 | ' |
Settlement | ' | ' |
Lapse of statute of limitations | ' | ' |
Unrecognized tax benefits-December 31 | $1,263 | ' |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | Nov. 30, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Nov. 30, 2012 | Dec. 31, 2013 | Nov. 30, 2012 | Dec. 31, 2012 | Jun. 07, 2012 | Jun. 07, 2012 | Jun. 07, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 07, 2011 | Dec. 07, 2011 | Dec. 07, 2011 | |
sqft | sqft | Minimum | Maximum | CRO services | CRO services | Additional Office Space Lease | Additional Office Space Lease | Additional Office Space Lease | Additional Office Space Lease | Lease Agreement executed on June 7, 2012 | Lease Agreement executed on June 7, 2012 | Lease Agreement executed on June 7, 2012 | Lease Agreement executed on June 7, 2012 | Lease Agreement executed on December 7, 2011 | Lease Agreement executed on December 7, 2011 | Lease Agreement executed on December 7, 2011 | Lease Agreement executed on December 7, 2011 | Lease Agreement executed on December 7, 2011 | Lease Agreement executed on December 7, 2011 | |
Minimum | Maximum | sqft | sqft | Maximum | Maximum | Minimum | Maximum | Minimum | Maximum | |||||||||||
Commitments and Contingencies Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Office lease, lease term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '7 years | ' | ' | ' | ' | ' | '7 years | ' | ' | ' |
Additional lease rent per month | ' | ' | ' | ' | ' | ' | $10,400 | $12,145 | $25,100 | $14,080 | ' | ' | $20,250 | $30,820 | ' | ' | ' | ' | $44,400 | $53,000 |
Lease expiration date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9-Dec-18 | ' | ' | ' |
Office space, lease extension term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | '5 years | ' | ' | ' |
Office space, lease extension Stand-by letter of credit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 150,000 | ' | ' | ' | ' | ' | 1,000,000 | ' | ' |
Office space, collateralized high-yield savings account | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 159,000 | ' | ' | ' | ' | ' | 1,053,000 | ' | ' |
Rent expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 872,500 | 526,900 | 41,125 | ' | ' | ' |
Additional square feet leased | ' | ' | ' | ' | ' | ' | 5,949 | 3,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Existing square feet of leased property | 16,750 | 13,250 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
License agreement, expected milestone payment | $187,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Annual royalties as a percentage of net sales | ' | ' | 10.00% | 20.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Written notice of termination, period | ' | ' | ' | ' | '30 days | '45 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Future_Minimum_Lease_Payments_
Future Minimum Lease Payments (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Schedule of Operating Leases [Line Items] | ' |
2014 | $1,117 |
2015 | 1,313 |
2016 | 1,376 |
2017 | 1,417 |
2018 | 1,459 |
Thereafter | 308 |
Total | $6,990 |
Summary_of_Clinical_Research_O
Summary of Clinical Research Organization Contracts (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
Research and Development Arrangement, Contract to Perform for Others [Line Items] | ' |
Total contract amount remaining | $74,885 |
HER2 Mutation Positive Solid Tumor (5201) | ' |
Research and Development Arrangement, Contract to Perform for Others [Line Items] | ' |
Total contract amount remaining | 3,560 |
Months remaining on contract | '32 months |
HER2 Mutuant Non-Small Cell Lung Cancer (4201) | ' |
Research and Development Arrangement, Contract to Perform for Others [Line Items] | ' |
Total contract amount remaining | 5,060 |
Months remaining on contract | '28 months |
HER2 Over expressed/Amplified Breast Cancer (Licensor Legacy Clinical Trials) | ' |
Research and Development Arrangement, Contract to Perform for Others [Line Items] | ' |
Total contract amount remaining | 18,389 |
Months remaining on contract | '15 months |
HER2 Plus Metastatic Breast Cancer (1301) | ' |
Research and Development Arrangement, Contract to Perform for Others [Line Items] | ' |
Total contract amount remaining | 46,477 |
Months remaining on contract | '43 months |
Metastatic HER2-Amplified or Triple-Negative Breast Cancer (10-005) | ' |
Research and Development Arrangement, Contract to Perform for Others [Line Items] | ' |
Total contract amount remaining | $1,399 |
Months remaining on contract | '36 months |
Subsequent_Event_Additional_In
Subsequent Event - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 39 Months Ended | 1 Months Ended | 1 Months Ended | ||||||
Dec. 31, 2010 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Sep. 15, 2011 | Sep. 14, 2011 | Oct. 31, 2012 | Oct. 18, 2012 | Oct. 31, 2012 | Feb. 14, 2014 | Feb. 14, 2014 | |
Underwritten Public Offering | Underwritten Public Offering | Underwritten Public Offering | Subsequent Event | Subsequent Event | |||||||
Overallotment Option Exercised by Underwriters | Underwritten Public Offering | Underwritten Public Offering | |||||||||
Overallotment Option Exercised by Underwriters | |||||||||||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of common stock, shares | ' | ' | ' | ' | ' | ' | 7,500,000 | ' | 1,125,000 | 1,126,530 | 146,938 |
Common stock, par value | ' | $0.00 | ' | $0.00 | $0.00 | $0.00 | ' | $0.00 | ' | $0.00 | ' |
Issuance of common stock, per share | $0.00 | $16 | $3.75 | ' | ' | ' | $16 | ' | $16 | $122.50 | ' |
Net proceeds from issuance of common stock | ' | $129,214,000 | $56,741,000 | $185,955,000 | ' | ' | ' | ' | $129,200,000 | $129,300,000 | ' |
Quarterly_Financial_Data_Detai
Quarterly Financial Data (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 39 Months Ended | ||||||||||
In Thousands, except 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, 2010 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 |
Quarterly Financial Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net loss | -15,946 | -14,283 | -12,650 | -11,780 | -21,913 | -25,859 | -14,754 | -11,826 | -7 | -54,659 | -74,352 | -10,233 | -139,251 |
Net loss applicable to common stock | ($15,946) | ($14,283) | ($12,650) | ($11,780) | ($21,913) | ($25,859) | ($14,754) | ($11,826) | ' | ($54,659) | ($74,352) | ($10,233) | ($139,251) |
Net loss per share-basic and diluted | ($0.55) | ($0.50) | ($0.44) | ($0.41) | ($0.83) | ($1.29) | ($0.74) | ($0.59) | ' | ($1.90) | ($3.42) | ($1.32) | ' |
Weighted-average common shares outstanding-basic and diluted | 28,750,382 | 28,682,055 | 28,676,666 | 28,676,666 | 26,511,141 | 20,040,000 | 20,040,000 | 20,040,000 | ' | 28,696,573 | 21,725,986 | 7,746,529 | ' |