NanoString (NSTG) 10-Q 4 Nov 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Nov. 01, 2016
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3
Trading Symbol	NSTG
Entity Registrant Name	NANOSTRING TECHNOLOGIES INC
Entity Central Index Key	1,401,708
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		21,004,015

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 10,468	$ 21,856
Short-term investments	43,116	27,188
Accounts receivable, net	21,041	19,725
Inventory	11,730	10,138
Prepaid expenses and other	4,385	3,886
Total current assets	90,740	82,793
Restricted cash	143	143
Deferred offering costs	229	181
Property and equipment, net	10,705	9,414
Other assets	440	338
Total assets	102,257	92,869
Current liabilities:
Accounts payable	2,127	3,243
Accrued liabilities	9,917	12,181
Deferred revenue, current portion	16,748	5,261
Deferred rent, current portion	5	0
Lease financing obligations, current portion	92	226
Total current liabilities	28,889	20,911
Deferred revenue, net of current portion	26,752	6,486
Deferred rent and other long-term liabilities	6,192	4,257
Long-term debt and lease financing obligations, net of current portion and debt issuance costs	46,980	41,000
Total liabilities	108,813	72,654
Commitment and contingencies
Stockholders’ equity (deficit):
Preferred stock, $0.0001 par value, 15,000 shares authorized; none issued	0	0
Common stock, $0.0001 par value, 150,000 shares authorized; 19,928 and 19,570 shares issued and outstanding at September 30, 2016 and December 31, 2015, respectively	2	2
Additional paid-in capital	251,399	242,693
Accumulated other comprehensive income (loss)	(10)	(29)
Accumulated deficit	(257,947)	(222,451)
Total stockholders’ equity (deficit)	(6,556)	20,215
Total liabilities and stockholders’ equity (deficit)	$ 102,257	$ 92,869

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, shares authorized (in shares)	15,000,000	15,000,000
Preferred stock, shares issued (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares)	150,000,000	150,000,000
Common stock, shares issued (in shares)	19,928,000	19,570,000
Common stock, shares outstanding (in shares)	19,928,000	19,570,000

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Revenue:
Product and service	$ 19,167	$ 13,910	$ 48,791	$ 37,240
Collaboration	4,766	1,783	12,466	3,112
Total revenue	23,933	15,693	61,257	40,352
Costs and expenses:
Cost of product and service revenue	8,075	6,289	21,816	17,500
Research and development	8,717	5,812	24,724	17,526
Selling, general and administrative	15,607	12,036	46,018	38,984
Total costs and expenses	32,399	24,137	92,558	74,010
Loss from operations	(8,466)	(8,444)	(31,301)	(33,658)
Other income (expense):
Interest income	104	58	266	181
Interest expense	(1,509)	(1,022)	(4,150)	(3,007)
Other income (expense), net	(179)	(59)	(238)	(281)
Total other income (expense), net	(1,584)	(1,023)	(4,122)	(3,107)
Net loss before provision for income tax	(10,050)	(9,467)	(35,423)	(36,765)
Provision for income tax	(38)	0	(73)	0
Net loss	$ (10,088)	$ (9,467)	$ (35,496)	$ (36,765)
Net loss per share - basic and diluted (in dollars per share)	$ (0.51)	$ (0.49)	$ (1.79)	$ (1.95)
Weighted average shares used in computing basic and diluted net loss per share (in shares)		19,431	19,779	18,862

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Statement of Comprehensive Income [Abstract]
Net loss	$ (10,088)	$ (9,467)	$ (35,496)	$ (36,765)
Change in unrealized gain or loss on short-term investments	(37)	25	19	39
Comprehensive loss	$ (10,125)	$ (9,442)	$ (35,477)	$ (36,726)

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Operating activities
Net loss	$ (35,496)	$ (36,765)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	2,215	1,420
Stock-based compensation expense	6,504	4,749
Amortization of premium on short-term investments	90	287
Interest accrued on long-term debt	115	0
Conversion of accrued interest to long-term debt	993	815
(Gain) loss on sale of property and equipment	(2)	2
Changes in operating assets and liabilities:
Accounts receivable, net	(1,320)	(467)
Inventory	(2,713)	(6,769)
Prepaid expenses and other	(532)	634
Other assets	(111)	104
Accounts payable	(1,178)	(857)
Accrued liabilities	(1,775)	(3,013)
Deferred revenue	31,755	87
Deferred rent	1,806	1,011
Net cash provided by (used in) operating activities	351	(38,762)
Investing activities
Purchases of property and equipment	(2,709)	(1,847)
Proceeds from sale of property and equipment	4	20
Proceeds from sale of short-term investments	3,400	3,000
Proceeds from maturity of short-term investments	29,200	46,178
Purchases of short-term investments	(48,600)	(23,150)
Net cash (used in) provided by investing activities	(18,705)	24,201
Financing activities
Borrowings under long-term debt agreement	5,000	0
Repayment of lease financing obligations	(192)	(203)
Proceeds from sale of common stock, net	0	12,508
Deferred offering costs	(44)	(137)
Proceeds from issuance of common stock for employee stock purchase plan	1,489	1,296
Proceeds from exercise of stock options	714	546
Net cash provided by financing activities	6,967	14,010
Net decrease in cash and cash equivalents	(11,387)	(551)
Effect of exchange rate changes on cash and cash equivalents	(1)	(37)
Cash and cash equivalents
Beginning of period	21,856	17,223
End of period	$ 10,468	$ 16,635

Description of Business

Description of Business	9 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
Description of Business	Description of Business NanoString Technologies, Inc. (the “Company”) was incorporated in the state of Delaware on June 20, 2003 . The Company’s headquarters are located in Seattle, Washington. The Company’s technology enables direct detection, identification and quantification of individual target molecules in a biological sample by attaching a unique color coded fluorescent reporter to each target molecule of interest. The Company markets its proprietary nCounter Analysis System, consisting of instruments and consumables, including its Prosigna Breast Cancer Assay, to academic, government, biopharmaceutical and clinical laboratory customers. The Company has incurred losses to date and expects to incur additional losses in the foreseeable future. The Company continues to devote the majority of its resources to the growth of its business in accordance with its business plan. The Company’s activities have been financed primarily through the sale of equity securities, incurrence of indebtedness and, to a lesser extent, capital leases and other borrowings.

Basis of Presentation and Summa

Basis of Presentation and Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
Basis of Presentation and Summary of Significant Accounting Policies	Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated financial statements reflect the accounts of the Company and its wholly-owned subsidiaries. The unaudited condensed consolidated balance sheet at December 31, 2015 has been derived from the audited consolidated financial statements at that date but does not include all of the information and disclosures required by generally accepted accounting principles in the United States of America (“U.S. GAAP”) for annual financial statements. These unaudited condensed consolidated financial statements and notes should be read in conjunction with the Company’s audited consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 . The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) and U.S. GAAP for unaudited condensed consolidated financial information. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The accompanying unaudited condensed consolidated financial statements reflect all adjustments consisting of normal recurring adjustments which, in the opinion of management, are necessary for a fair statement of the Company’s financial position and results of its operations, as of and for the periods presented. Unless indicated otherwise, all amounts presented in financial tables are presented in thousands, except for per share and par value amounts. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Actual results could differ from those estimates. The results of the Company’s operations for the three and nine month periods ended September 30, 2016 are not necessarily indicative of the results to be expected for the full year or for any other period. Revenue Recognition The Company recognizes revenue when (1) persuasive evidence of an arrangement exists, (2) delivery has occurred or services have been rendered, (3) the price to the customer is fixed or determinable and (4) collectability is reasonably assured. The Company generates the majority of its revenue from the sale of products and services. The Company’s products consist of its proprietary nCounter Analysis Systems and related consumables. Services consist of extended warranties and service fees for assay processing. A delivered product or service is considered to be a separate unit of accounting when it has value to the customer on a stand-alone basis. Products or services have value on a stand-alone basis if they are sold separately by any vendor or the customer could resell the delivered product. Instruments, consumables and in vitro diagnostic kits are considered to be separate units of accounting as they are sold separately and revenue is recognized upon transfer of ownership, which is generally upon shipment. Instrument revenue related to installation and calibration services is recognized when services are rendered by the Company. Such services can also be provided by the Company’s distribution partners and other third parties. For instruments sold solely to run Prosigna assays, training must be provided prior to instrument revenue recognition. Instrument revenue from leased instruments is recognized ratably over the lease term. Service revenue is recognized when earned, which is generally upon the rendering of the related services. Service agreements and service fees for assay processing are each considered separate units of accounting as they are sold separately. The Company offers service agreements on its nCounter Analysis Systems for periods ranging from 12 to 36 months after the end of the standard 12 -month warranty period. Service agreements are generally separately priced. Revenue from service agreements is deferred and recognized in income on a straight-line basis over the service period. For arrangements with multiple deliverables, the Company allocates the agreement consideration at the inception of the agreement to the deliverables based upon their relative selling prices. To date, selling prices have been established by reference to vendor specific objective evidence based on stand-alone sales transactions for each deliverable. Vendor specific objective evidence is considered to have been established when a substantial majority of individual sales transactions within the previous 12-month period fall within a reasonably narrow range, which the Company has defined to be plus or minus 15% of the mean sales price of actual stand-alone sales transactions. The Company uses its best estimate of selling price for individual deliverables when vendor specific objective evidence or third-party evidence is unavailable. Allocated revenue is only recognized for each deliverable when the revenue recognition criteria have been met. The Company enters into collaborative agreements that may generate upfront fees with subsequent milestone payments that may be earned upon completion of development-related milestones. The Company is able to estimate the total cost of services under the arrangements and recognizes collaboration revenue using a proportional performance model. Costs incurred to date compared to total expected costs are used to determine proportional performance, as this is considered to be representative of the delivery of outputs under the arrangements. Revenue recognized at any point in time is limited to cash received and non-contingent amounts contractually due. Changes in estimates of total expected costs are accounted for prospectively as a change in estimate. From period to period, collaboration revenue can fluctuate substantially based on the achievement of development-related milestones. Recent Accounting Pronouncements As an “emerging growth company,” the Jumpstart Our Business Startups (“JOBS”) Act allows the Company to delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. In May 2014, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update (“ASU”) entitled “ASU 2014-09, Revenue from Contracts with Customers.” The standard requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to a customer. This guidance will replace most existing revenue recognition guidance and will become effective for the Company in fiscal year 2018, including interim periods within that reporting period, based on the FASB decision in July 2015 (ASU 2015-14, Revenue from Contracts with Customers - Deferral of the Effective Date) to delay the effective date of the new revenue recognition standard by one year, but providing entities a choice to adopt the standard as of the original effective date. In March 2016, the FASB issued “ASU 2016-08, Principal vs Agent Considerations (Reporting Revenue Gross versus Net)” which clarifies the implementation guidance on principal versus agent considerations. In April 2016, the FASB issued “ASU 2016-10, Identifying Performance Obligations and Licensing” which clarifies the implementation guidance on identifying performance obligations and the licensing implementation guidance. In May 2016, the FASB issued “ASU 2016-12, Narrow-Scope Improvements and Practical Expedients” which provides practical expedient for contract modifications and clarification on assessing the collectability criterion, presentation of sales taxes, measurement date for noncash consideration and completed contracts at transition. These standards permit the use of either the retrospective or cumulative effect transition method. The Company has not selected a transition method and is currently evaluating the impact these standards will have on its consolidated results of operations, financial condition, cash flows, and financial statement disclosures. In August 2014, FASB issued “ASU 2014-15, Presentation of Financial Statements – Going Concern.” The standard requires entities to evaluate for each annual and interim reporting period, whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued (or within one year after the date that the financial statements are available to be issued when applicable). The standard will become effective for the Company beginning January 1, 2017. In July 2015, FASB issued “ASU 2015-11, Inventory – Simplifying the Measurement of Inventory.” The standard requires entities to measure inventory at the lower of cost and net realizable value. The standard will become effective for the Company beginning January 1, 2017. The Company does not anticipate adoption of the standard will have a material impact on its consolidated results of operations, financial condition, cash flows, and financial statement disclosures. In November 2015, FASB issued “ASU 2015-17, Balance Sheet Classification of Deferred Taxes.” The standard requires deferred income tax liabilities and assets be classified as noncurrent in the consolidated balance sheet. The standard will become effective for the Company beginning January 1, 2018. The Company does not anticipate adoption of the standard will have a material impact on its consolidated results of operations, financial condition, cash flows, and financial statement disclosures. In February 2016, FASB issued “ASU 2016-02, Leases - Recognition and Measurement of Financial Assets and Financial Liabilities.” The standard requires the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition. The standard requires lessors to classify leases as either sales-type, finance or operating. A sales-type lease occurs if the lessor transfers all of the risks and rewards, as well as control of the underlying asset, to the lessee. If risks and rewards are conveyed without the transfer of control, the lease is treated as a financing lease. If the lessor does not convey risks and rewards or control, an operating lease results. The standard will become effective for the Company beginning January 1, 2019. The Company is currently assessing the impact adoption of this standard will have on its consolidated results of operations, financial condition, cash flows, and financial statement disclosures. In March 2016, FASB issued “ASU 2016-09, Improvements to Employee Share-Based Payment Accounting” which amends Accounting Standard Codification Topic 718, “Compensation – Stock Compensation”. The standard includes provisions intended to simplify various aspects related to the accounting and presentation for stock-based payments in the financial statements, including the income tax effects of stock-based payments, minimum withholding requirements upon award settlement, and the method of calculating forfeitures in the recognition of stock compensation expense. The standard will become effective for the Company beginning January 1, 2018. The Company is currently assessing the impact adoption of this standard will have on its consolidated results of operations, financial condition, cash flows, and financial statement disclosures.

Net Loss Per Share

Net Loss Per Share	9 Months Ended
	Sep. 30, 2016
Earnings Per Share [Abstract]
Net Loss Per Share	Net Loss Per Share Net loss per share is computed by dividing the net loss by the weighted average number of shares of common stock outstanding. Any outstanding stock options and warrants have not been included in the calculation of the diluted net loss per share because to do so would be anti-dilutive. Accordingly, the numerator and the denominator used in computing both basic and diluted net loss per share for each period are the same. The following shares underlying outstanding options and warrants were excluded from the computation of basic and diluted net loss per share for the periods presented because their effect would have been anti-dilutive (in thousands): Three Months Ended Nine Months Ended 2016 2015 2016 2015 Options to purchase common stock 4,752 4,208 4,665 4,025 Restricted stock units 117 15 106 15 Common stock warrants 483 572 524 572

Concentration of Risks

Concentration of Risks	9 Months Ended
	Sep. 30, 2016
Risks and Uncertainties [Abstract]
Concentration of Risks	Concentration of Risks Financial instruments that potentially expose the Company to concentrations of credit risk consist principally of cash and cash equivalents, short-term investments and accounts receivable. Cash is invested in accordance with the Company’s investment policy, which includes guidelines intended to minimize and diversify credit risk. Most of the Company’s investments are not federally insured. The Company has credit risk related to the collectability of its accounts receivable. The Company performs initial and ongoing evaluations of its customers’ credit history or financial position and generally extends credit on account without collateral. The Company has not experienced any significant credit losses to date. The Company had one customer/collaborator that individually represented 11% and 13% of total revenue during the three and nine months ended September 30, 2016 , respectively, one customer/collaborator that represented 11% of total revenue during the three months ended September 30, 2015 , and no customers that represented more than 10% of total revenue for the nine months ended September 30, 2015 . The Company had one customer/collaborator that represented 11% of total accounts receivable as of September 30, 2016 and no customers or collaborators that represented more than 10% of total accounts receivable as of December 31, 2015 . The Company is also subject to supply chain risks related to the outsourcing of the manufacturing and production of its instruments to sole suppliers. Although there are a limited number of manufacturers for instruments of this type, the Company believes that other suppliers could provide similar products on comparable terms. Similarly, the Company sources certain raw materials used in the manufacture of consumables from certain sole suppliers. A change in suppliers could cause a delay in manufacturing and a possible loss of sales, which would adversely affect operating results.

Short-term Investments

Short-term Investments	9 Months Ended
	Sep. 30, 2016
Investments, Debt and Equity Securities [Abstract]
Short-term Investments	Short-term Investments Short-term investments consisted of available-for-sale securities as follows (in thousands): Type of securities as of September 30, 2016 Amortized cost Gross unrealized gains Gross unrealized losses Fair value Corporate debt securities $ 29,811 $ 1 $ (17 ) $ 29,795 U.S. government-related debt securities 13,315 7 (1 ) 13,321 Total available-for-sale securities $ 43,126 $ 8 $ (18 ) $ 43,116 Type of securities as of December 31, 2015 Amortized cost Gross unrealized gains Gross unrealized losses Fair value Corporate debt securities $ 26,116 $ — $ (28 ) $ 26,088 U.S. government-related debt securities 1,101 — (1 ) 1,100 Total available-for-sale securities $ 27,217 $ — $ (29 ) $ 27,188 The fair values of available-for-sale securities by contractual maturity were as follows (in thousands): September 30, 2016 December 31, 2015 Maturing in one year or less $ 33,799 $ 27,188 Maturing in one to three years 9,317 — Total available-for-sale securities $ 43,116 $ 27,188 The Company has both the intent and ability to sell its available-for-sale investments maturing greater than one year within 12 months from the balance sheet date and, accordingly, has classified these securities as current in the condensed consolidated balance sheet. The Company has no investments that have been in a continuous unrealized loss position as of September 30, 2016 . The Company invests in securities that are rated investment grade or better. The unrealized losses on investments as of September 30, 2016 and December 31, 2015 were primarily caused by interest rate increases. The Company reviews the individual securities in its portfolio to determine whether a decline in a security’s fair value below the amortized cost basis is other-than-temporary. The Company determined that as of September 30, 2016 , there were no investments in its portfolio that were other-than-temporarily impaired.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2016
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements The Company establishes the fair value of its assets and liabilities using the price that would be received to sell an asset or paid to transfer a financial liability in an orderly transaction between market participants at the measurement date. A fair value hierarchy is used to measure fair value. The three levels of the fair value hierarchy are as follows: Level 1: Quoted prices in active markets for identical assets and liabilities. Level 2: Quoted prices for similar instruments 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 and significant value drivers are observable in active markets. Level 3: Valuations derived from valuation techniques in which one or more significant inputs and significant value drivers are unobservable. The recorded amounts of certain financial instruments, including cash, accounts receivable, prepaid expenses and other, accounts payable and accrued liabilities, approximate fair value due to their relatively short-term maturities. The recorded amount of the Company’s long-term debt approximates fair value because the related interest rates approximate rates currently available to the Company. The Company’s available-for-sale securities by level within the fair value hierarchy were as follows (in thousands): As of September 30, 2016 Level 1 Level 2 Level 3 Total Cash equivalents: Money market fund $ 9,009 $ — $ — $ 9,009 Short-term investments: Corporate debt securities — 29,795 — 29,795 U.S. government-related debt securities — 13,321 — 13,321 Total $ 9,009 $ 43,116 $ — $ 52,125 As of December 31, 2015 Level 1 Level 2 Level 3 Total Cash equivalents: Money market fund $ 5,371 $ — $ — $ 5,371 Short-term investments: Corporate debt securities — 26,088 — 26,088 U.S. government-related debt securities — 1,100 — 1,100 Total $ 5,371 $ 27,188 $ — $ 32,559

Inventory

Inventory	9 Months Ended
	Sep. 30, 2016
Inventory Disclosure [Abstract]
Inventory	Inventory Inventory consisted of the following as of the date indicated (in thousands): September 30, 2016 December 31, 2015 Raw materials $ 4,999 $ 3,575 Work in process 3,443 2,895 Finished goods 3,288 3,668 $ 11,730 $ 10,138

Long-term Debt and Lease Financ

Long-term Debt and Lease Financing Obligations	9 Months Ended
	Sep. 30, 2016
Debt Disclosure [Abstract]
Long-term Debt and Lease Financing Obligations	Long-term Debt and Lease Financing Obligations In April 2014, the Company entered into a term loan agreement under which it could borrow up to $45.0 million , including an option to defer payment of a portion of the interest that would accrue on the borrowing under the term loan agreement. Upon initial closing, the Company borrowed $20.0 million , and in October 2014, the Company borrowed an additional $10.0 million under the term loan agreement. In October 2015, the Company amended the term loan agreement to, among other provisions, increase the maximum borrowing capacity to $60.0 million (excluding deferred interest), reduce the applicable interest rate from 12.5% to 12.0% , extend the interest-only period through March 2021 , and extend the final maturity to March 2022 . Under the amended agreement, borrowings accrue interest at 12.0% annually, payable quarterly, of which 3.0% can be deferred during the first six years of the term at the Company’s option and paid together with the principal at maturity. The Company has elected to exercise the option to defer payment of interest and has recorded $2.5 million of deferred interest through September 30, 2016 . In December 2015, the Company borrowed an additional $10.0 million under the terms of the amended agreement. In June 2016, the Company borrowed an additional $5.0 million . At its option, the Company may borrow up to an additional $15.0 million through December 31, 2016. Total borrowings and deferred interest under the amended term loan agreement were $47.5 million and $41.5 million as of September 30, 2016 and December 31, 2015 , respectively. Under the amended term loan agreement, the Company may pay interest-only for the first seven years of the term and principal payments are due in four equal installments during the eighth year of the term. The Company has the option to prepay the term loan, in whole or part, at any time subject to payment of a redemption fee of up to 4% , which declines 1% annually, with no redemption fee payable if prepayment occurs after the fourth year of the loan. In addition, a facility fee equal to 2.0% of the amount borrowed plus any accrued interest is payable at the end of the term or when the loan is repaid in full. A long-term liability of $1.1 million is being accreted using the effective interest method for the facility fee over the term of loan agreement. Obligations under the term loan agreement are collateralized by substantially all of the Company’s assets. The term loan agreement contains customary conditions to borrowings, events of default and negative covenants, including covenants that could limit the Company’s ability to, among other things, incur additional indebtedness, liens or other encumbrances, make dividends or other distributions; buy, sell or transfer assets; engage in any new line of business; and enter into certain transactions with affiliates. The term loan agreement also includes a $2.0 million minimum liquidity covenant and minimum revenue-based financial requirements, specifically $70.0 million for 2016 with annual increases of $15.0 million for each subsequent fiscal year thereafter. If the Company’s actual revenue is below the minimum annual revenue requirement for any given year, it may avoid a related default by generating proceeds from an equity or subordinated debt issuance equal to the shortfall between its actual revenue and the minimum revenue requirement. The Company was in compliance with its financial covenants as of September 30, 2016 . Long-term debt and lease financing obligations, consisted of the following (in thousands): September 30, 2016 December 31, 2015 Term loans payable $ 47,480 $ 41,487 Lease financing obligations 92 284 Total long-term debt and lease financing obligations 47,572 41,771 Unamortized debt issuance costs (500 ) (545 ) Current portion of lease financing obligations (92 ) (226 ) Long-term debt and lease financing obligations, net of debt issuance costs and current portion $ 46,980 $ 41,000 Scheduled future principal payments for outstanding debt and lease financing obligations were as follows at September 30, 2016 (in thousands): Years Ending December 31, Remainder of 2016 $ 34 2017 58 2018 — 2019 — 2020 — Thereafter 47,480 $ 47,572

Collaboration Agreements

Collaboration Agreements	9 Months Ended
	Sep. 30, 2016
Deferred Revenue Disclosure [Abstract]
Collaboration Agreements	Collaboration Agreements The Company uses a proportional performance model to recognize collaboration revenue over the Company’s performance period for each collaboration agreement. Costs incurred to date compared to total expected costs are used to determine proportional performance, as this is considered to be representative of the delivery of outputs under the arrangement. Revenue recognized at any point in time is limited to cash received and amounts contractually due. Changes in estimates of total expected costs are accounted for prospectively as a change in estimate. All amounts received or due are classified as collaboration revenue as they are earned. Celgene Corporation In March 2014, the Company entered into a collaboration agreement with Celgene Corporation (“Celgene”) to develop, seek regulatory approval for, and commercialize a companion diagnostic assay for use in screening patients with Diffuse Large B-Cell Lymphoma. The Company is eligible to receive payments totaling up to $45.0 million , of which $5.8 million was received as an upfront payment upon delivery of certain information to Celgene, $17.0 million is for potential success-based development and regulatory milestones, and the remainder is for potential commercial payments in the event sales of the test do not exceed certain pre-specified minimum annual revenue during the first three years following regulatory approval. In October 2015, the parties amended the collaboration agreement to include additional countries to conduct clinical trials and in return the Company received an upfront payment of $1.6 million in December 2015. The Company will retain all commercial rights to the diagnostic test developed under this collaboration, subject to certain backup rights granted to Celgene to commercialize the diagnostic test in a particular country if the Company elects to cease distribution or elects not to distribute the diagnostic in such country. Assuming success in the clinical trial process, and subject to regulatory approval, the Company will market and sell the diagnostic assay. The Company achieved and was paid for milestones totaling $6.0 million during 2014. The process of successfully developing a product candidate, obtaining regulatory approval and ultimately commercializing a product candidate is highly uncertain and the attainment of any additional milestones is therefore uncertain and difficult to predict. In addition, certain milestones are outside the Company’s control and are dependent on the performance of Celgene and the outcome of a clinical trial and related regulatory processes. Accordingly, the Company is not able to reasonably estimate when, if at all, any additional milestone payments may be payable to the Company by Celgene. The Company recognized collaboration revenue related to the Celgene agreement of $0.6 million and $0.2 million for the three months ended September 30, 2016 and 2015 , respectively, and $2.3 million and $1.2 million for the nine months ended September 30, 2016 and 2015 , respectively. At September 30, 2016 , the Company had recorded $6.1 million of deferred revenue related to the Celgene collaboration, of which $1.8 million is estimated to be recognizable as revenue within one year. Merck & Co., Inc. In May 2015, the Company entered into a clinical research collaboration agreement with Merck Sharp & Dohme Corp., a subsidiary of Merck & Co., Inc. (“Merck”), to develop an assay intended to optimize immune-related gene expression signatures and evaluate the potential to predict benefit from Merck’s anti-PD-1therapy, KEYTRUDA. Under the terms of the collaboration agreement, the Company was eligible to receive up to $4.0 million , of which $2.0 million was received as an upfront payment in July 2015 and $1.9 million was received as development payments during 2015. In February 2016, the Company expanded its collaboration with Merck by entering into a new development collaboration agreement to clinically develop and commercialize a novel diagnostic test, based on an optimized gene expression signature, to predict response to KEYTRUDA in multiple tumor types. Under the terms of the new collaboration agreement, the Company received $12.0 million upfront as a technology access fee, will receive additional development funding, and is eligible to receive up to $12.0 million of near-term preclinical milestone payments, of which $8.5 million was achieved and received during the nine months ended September 30, 2016 , and other potential downstream regulatory milestone payments. The Company recognized collaboration revenue of $2.2 million and $6.1 million related to the Merck agreement for the three and nine months ended September 30, 2016 , respectively, and $1.6 million and $1.8 million for the three and nine months ended September 30, 2015 , respectively. As of September 30, 2016 , the Company had recorded $22.4 million of deferred revenue related to the Merck collaboration, $7.7 million of which is estimated to be recognized as revenue within one year. Medivation, Inc. and Astellas Pharma, Inc. In January 2016, the Company entered into a collaboration agreement with Medivation, Inc. ("Medivation") and Astellas Pharma Inc. (“Astellas”) to pursue the translation of a novel gene expression signature algorithm discovered by Medivation into a companion diagnostic assay using the nCounter Analysis System. Under the terms of the collaboration agreement, the Company will modify its PAM50-based Prosigna Breast Cancer Assay for potential use as a companion diagnostic test for XTANDI (enzalutamide) for triple negative breast cancer. XTANDI is currently approved by the U.S. Food and Drug Administration for the treatment of metastatic castration-resistant prostate cancer. The modified Prosigna test will be based upon data from a Phase 2 trial conducted by Medivation and Astellas that evaluated enzalutamide in patients with triple negative breast cancer. Under the terms of the collaboration agreement, the Company will be responsible for developing and validating the diagnostic test and, if the parties thereafter determine to proceed, will also be responsible for seeking regulatory approval for and commercializing the test. During 2016, the Company received $6.0 million upfront for technology access, $6.0 million in pre-clinical milestones, and is eligible to receive up to $10.0 million in development funding over the term of the agreement, in addition to other potential downstream milestone payments. The Company recognized collaboration revenue of $1.5 million and $3.6 million related to the Medivation/Astellas agreement for the three and nine months ended September 30, 2016 , respectively, and none for the three and nine months ended September 30, 2015 . As of September 30, 2016 , the Company had recorded $10.8 million of deferred revenue related to the Medivation/Astellas collaboration, $4.1 million of which is estimated to be recognized as revenue within one year.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies From time to time, the Company may become involved in litigation relating to claims arising from the ordinary course of business. Management believes that there are no claims or actions pending against the Company currently, the ultimate disposition of which would have a material adverse effect on the Company’s consolidated results of operation, financial condition or cash flows.

Information about Geographic Ar

Information about Geographic Areas	9 Months Ended
	Sep. 30, 2016
Segment Reporting [Abstract]
Information about Geographic Areas	Information about Geographic Areas The Company operates as a single reportable segment and enables customers to perform both research and clinical testing on its nCounter Analysis Systems. The Company has one sales force that sells these systems to both research and clinical testing labs, and its nCounter Elements reagents can be used for both research and diagnostic testing. In addition, the Company’s Prosigna Breast Cancer Assay is marketed to clinical laboratories. The Company has also entered into collaboration agreements with Celgene, Merck and Medivation and Astellas. The following table of total revenue is based on the geographic location of the Company’s customers, distributors and collaborators. For sales to distributors, their geographic location may be different from the geographic locations of the ultimate end user. Americas consists of the United States, Canada, Mexico and South America; and Asia Pacific includes Japan, China, South Korea, Singapore, Malaysia and Australia. Total revenue by geography was as follows (in thousands): Three Months Ended September 30, Nine Months Ended 2016 2015 2016 2015 Americas $ 16,784 $ 10,929 $ 43,188 $ 26,584 Europe & Middle East 4,934 3,400 12,667 9,355 Asia Pacific 2,215 1,364 5,402 4,413 Total revenue $ 23,933 $ 15,693 $ 61,257 $ 40,352 Total revenue in the United States was $16.2 million and $9.6 million for the three months ended September 30, 2016 and 2015 , respectively, and $41.5 million and $24.5 million for the nine months ended September 30, 2016 and 2015 , respectively. The Company’s assets are primarily located in the United States and not allocated to any specific geographic region. Substantially all of the Company’s long-lived assets are located in the United States.

Subsequent Event

Subsequent Event	9 Months Ended
	Sep. 30, 2016
Subsequent Events [Abstract]
Subsequent Event	Subsequent Event In October 2016, the Company sold 1,062,330 shares of its common stock through the “at the market” equity offering program under its sales agreement with Cowen & Company (“Cowen”) for total gross proceeds of $21.2 million . The net proceeds from the sale of the shares, after deducting Cowen’s commission and other expenses of the offering, were approximately $20.4 million . After completion of this sale, approximately $5.8 million of the Company’s common stock remained available for sale under the “at the market” equity offering program.

Basis of Presentation and Sum19

Basis of Presentation and Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
Basis of Presentation	The accompanying unaudited condensed consolidated financial statements reflect the accounts of the Company and its wholly-owned subsidiaries. The unaudited condensed consolidated balance sheet at December 31, 2015 has been derived from the audited consolidated financial statements at that date but does not include all of the information and disclosures required by generally accepted accounting principles in the United States of America (“U.S. GAAP”) for annual financial statements. These unaudited condensed consolidated financial statements and notes should be read in conjunction with the Company’s audited consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 . The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) and U.S. GAAP for unaudited condensed consolidated financial information. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The accompanying unaudited condensed consolidated financial statements reflect all adjustments consisting of normal recurring adjustments which, in the opinion of management, are necessary for a fair statement of the Company’s financial position and results of its operations, as of and for the periods presented. Unless indicated otherwise, all amounts presented in financial tables are presented in thousands, except for per share and par value amounts. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Actual results could differ from those estimates. The results of the Company’s operations for the three and nine month periods ended September 30, 2016 are not necessarily indicative of the results to be expected for the full year or for any other period.
Revenue Recognition	The Company recognizes revenue when (1) persuasive evidence of an arrangement exists, (2) delivery has occurred or services have been rendered, (3) the price to the customer is fixed or determinable and (4) collectability is reasonably assured. The Company generates the majority of its revenue from the sale of products and services. The Company’s products consist of its proprietary nCounter Analysis Systems and related consumables. Services consist of extended warranties and service fees for assay processing. A delivered product or service is considered to be a separate unit of accounting when it has value to the customer on a stand-alone basis. Products or services have value on a stand-alone basis if they are sold separately by any vendor or the customer could resell the delivered product. Instruments, consumables and in vitro diagnostic kits are considered to be separate units of accounting as they are sold separately and revenue is recognized upon transfer of ownership, which is generally upon shipment. Instrument revenue related to installation and calibration services is recognized when services are rendered by the Company. Such services can also be provided by the Company’s distribution partners and other third parties. For instruments sold solely to run Prosigna assays, training must be provided prior to instrument revenue recognition. Instrument revenue from leased instruments is recognized ratably over the lease term. Service revenue is recognized when earned, which is generally upon the rendering of the related services. Service agreements and service fees for assay processing are each considered separate units of accounting as they are sold separately. The Company offers service agreements on its nCounter Analysis Systems for periods ranging from 12 to 36 months after the end of the standard 12 -month warranty period. Service agreements are generally separately priced. Revenue from service agreements is deferred and recognized in income on a straight-line basis over the service period. For arrangements with multiple deliverables, the Company allocates the agreement consideration at the inception of the agreement to the deliverables based upon their relative selling prices. To date, selling prices have been established by reference to vendor specific objective evidence based on stand-alone sales transactions for each deliverable. Vendor specific objective evidence is considered to have been established when a substantial majority of individual sales transactions within the previous 12-month period fall within a reasonably narrow range, which the Company has defined to be plus or minus 15% of the mean sales price of actual stand-alone sales transactions. The Company uses its best estimate of selling price for individual deliverables when vendor specific objective evidence or third-party evidence is unavailable. Allocated revenue is only recognized for each deliverable when the revenue recognition criteria have been met. The Company enters into collaborative agreements that may generate upfront fees with subsequent milestone payments that may be earned upon completion of development-related milestones. The Company is able to estimate the total cost of services under the arrangements and recognizes collaboration revenue using a proportional performance model. Costs incurred to date compared to total expected costs are used to determine proportional performance, as this is considered to be representative of the delivery of outputs under the arrangements. Revenue recognized at any point in time is limited to cash received and non-contingent amounts contractually due. Changes in estimates of total expected costs are accounted for prospectively as a change in estimate. From period to period, collaboration revenue can fluctuate substantially based on the achievement of development-related milestones.
Recent Accounting Pronouncements	As an “emerging growth company,” the Jumpstart Our Business Startups (“JOBS”) Act allows the Company to delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. In May 2014, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update (“ASU”) entitled “ASU 2014-09, Revenue from Contracts with Customers.” The standard requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to a customer. This guidance will replace most existing revenue recognition guidance and will become effective for the Company in fiscal year 2018, including interim periods within that reporting period, based on the FASB decision in July 2015 (ASU 2015-14, Revenue from Contracts with Customers - Deferral of the Effective Date) to delay the effective date of the new revenue recognition standard by one year, but providing entities a choice to adopt the standard as of the original effective date. In March 2016, the FASB issued “ASU 2016-08, Principal vs Agent Considerations (Reporting Revenue Gross versus Net)” which clarifies the implementation guidance on principal versus agent considerations. In April 2016, the FASB issued “ASU 2016-10, Identifying Performance Obligations and Licensing” which clarifies the implementation guidance on identifying performance obligations and the licensing implementation guidance. In May 2016, the FASB issued “ASU 2016-12, Narrow-Scope Improvements and Practical Expedients” which provides practical expedient for contract modifications and clarification on assessing the collectability criterion, presentation of sales taxes, measurement date for noncash consideration and completed contracts at transition. These standards permit the use of either the retrospective or cumulative effect transition method. The Company has not selected a transition method and is currently evaluating the impact these standards will have on its consolidated results of operations, financial condition, cash flows, and financial statement disclosures. In August 2014, FASB issued “ASU 2014-15, Presentation of Financial Statements – Going Concern.” The standard requires entities to evaluate for each annual and interim reporting period, whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued (or within one year after the date that the financial statements are available to be issued when applicable). The standard will become effective for the Company beginning January 1, 2017. In July 2015, FASB issued “ASU 2015-11, Inventory – Simplifying the Measurement of Inventory.” The standard requires entities to measure inventory at the lower of cost and net realizable value. The standard will become effective for the Company beginning January 1, 2017. The Company does not anticipate adoption of the standard will have a material impact on its consolidated results of operations, financial condition, cash flows, and financial statement disclosures. In November 2015, FASB issued “ASU 2015-17, Balance Sheet Classification of Deferred Taxes.” The standard requires deferred income tax liabilities and assets be classified as noncurrent in the consolidated balance sheet. The standard will become effective for the Company beginning January 1, 2018. The Company does not anticipate adoption of the standard will have a material impact on its consolidated results of operations, financial condition, cash flows, and financial statement disclosures. In February 2016, FASB issued “ASU 2016-02, Leases - Recognition and Measurement of Financial Assets and Financial Liabilities.” The standard requires the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition. The standard requires lessors to classify leases as either sales-type, finance or operating. A sales-type lease occurs if the lessor transfers all of the risks and rewards, as well as control of the underlying asset, to the lessee. If risks and rewards are conveyed without the transfer of control, the lease is treated as a financing lease. If the lessor does not convey risks and rewards or control, an operating lease results. The standard will become effective for the Company beginning January 1, 2019. The Company is currently assessing the impact adoption of this standard will have on its consolidated results of operations, financial condition, cash flows, and financial statement disclosures. In March 2016, FASB issued “ASU 2016-09, Improvements to Employee Share-Based Payment Accounting” which amends Accounting Standard Codification Topic 718, “Compensation – Stock Compensation”. The standard includes provisions intended to simplify various aspects related to the accounting and presentation for stock-based payments in the financial statements, including the income tax effects of stock-based payments, minimum withholding requirements upon award settlement, and the method of calculating forfeitures in the recognition of stock compensation expense. The standard will become effective for the Company beginning January 1, 2018. The Company is currently assessing the impact adoption of this standard will have on its consolidated results of operations, financial condition, cash flows, and financial statement disclosures.
Net Loss Per Share	Net loss per share is computed by dividing the net loss by the weighted average number of shares of common stock outstanding. Any outstanding stock options and warrants have not been included in the calculation of the diluted net loss per share because to do so would be anti-dilutive. Accordingly, the numerator and the denominator used in computing both basic and diluted net loss per share for each period are the same
Fair Value Measurements	The Company establishes the fair value of its assets and liabilities using the price that would be received to sell an asset or paid to transfer a financial liability in an orderly transaction between market participants at the measurement date. A fair value hierarchy is used to measure fair value. The three levels of the fair value hierarchy are as follows: Level 1: Quoted prices in active markets for identical assets and liabilities. Level 2: Quoted prices for similar instruments 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 and significant value drivers are observable in active markets. Level 3: Valuations derived from valuation techniques in which one or more significant inputs and significant value drivers are unobservable. The recorded amounts of certain financial instruments, including cash, accounts receivable, prepaid expenses and other, accounts payable and accrued liabilities, approximate fair value due to their relatively short-term maturities. The recorded amount of the Company’s long-term debt approximates fair value because the related interest rates approximate rates currently available to the Company.

Net Loss Per Share (Tables)

Net Loss Per Share (Tables)	9 Months Ended
	Sep. 30, 2016
Earnings Per Share [Abstract]
Summary of Shares Underlying Outstanding Options and Warrants were Excluded from Computation of Basic and Diluted Net Loss Per Share	The following shares underlying outstanding options and warrants were excluded from the computation of basic and diluted net loss per share for the periods presented because their effect would have been anti-dilutive (in thousands): Three Months Ended Nine Months Ended 2016 2015 2016 2015 Options to purchase common stock 4,752 4,208 4,665 4,025 Restricted stock units 117 15 106 15 Common stock warrants 483 572 524 572

Short-term Investments (Tables)

Short-term Investments (Tables)	9 Months Ended
	Sep. 30, 2016
Investments, Debt and Equity Securities [Abstract]
Short-Term Investments Available-for-Sale Securities	Short-term investments consisted of available-for-sale securities as follows (in thousands): Type of securities as of September 30, 2016 Amortized cost Gross unrealized gains Gross unrealized losses Fair value Corporate debt securities $ 29,811 $ 1 $ (17 ) $ 29,795 U.S. government-related debt securities 13,315 7 (1 ) 13,321 Total available-for-sale securities $ 43,126 $ 8 $ (18 ) $ 43,116 Type of securities as of December 31, 2015 Amortized cost Gross unrealized gains Gross unrealized losses Fair value Corporate debt securities $ 26,116 $ — $ (28 ) $ 26,088 U.S. government-related debt securities 1,101 — (1 ) 1,100 Total available-for-sale securities $ 27,217 $ — $ (29 ) $ 27,188
Fair Values of Available-for-Sale Securities by Contractual Maturity	The fair values of available-for-sale securities by contractual maturity were as follows (in thousands): September 30, 2016 December 31, 2015 Maturing in one year or less $ 33,799 $ 27,188 Maturing in one to three years 9,317 — Total available-for-sale securities $ 43,116 $ 27,188

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2016
Fair Value Disclosures [Abstract]
Company's Available-for-Sale Securities by Level within Fair Value Hierarchy	The Company’s available-for-sale securities by level within the fair value hierarchy were as follows (in thousands): As of September 30, 2016 Level 1 Level 2 Level 3 Total Cash equivalents: Money market fund $ 9,009 $ — $ — $ 9,009 Short-term investments: Corporate debt securities — 29,795 — 29,795 U.S. government-related debt securities — 13,321 — 13,321 Total $ 9,009 $ 43,116 $ — $ 52,125 As of December 31, 2015 Level 1 Level 2 Level 3 Total Cash equivalents: Money market fund $ 5,371 $ — $ — $ 5,371 Short-term investments: Corporate debt securities — 26,088 — 26,088 U.S. government-related debt securities — 1,100 — 1,100 Total $ 5,371 $ 27,188 $ — $ 32,559

Inventory (Tables)

Inventory (Tables)	9 Months Ended
	Sep. 30, 2016
Inventory Disclosure [Abstract]
Schedule of Inventory	Inventory consisted of the following as of the date indicated (in thousands): September 30, 2016 December 31, 2015 Raw materials $ 4,999 $ 3,575 Work in process 3,443 2,895 Finished goods 3,288 3,668 $ 11,730 $ 10,138

Long-term Debt and Lease Fina24

Long-term Debt and Lease Financing Obligations (Tables)	9 Months Ended
	Sep. 30, 2016
Debt Disclosure [Abstract]
Components of Borrowings, Including Current Portion	Long-term debt and lease financing obligations, consisted of the following (in thousands): September 30, 2016 December 31, 2015 Term loans payable $ 47,480 $ 41,487 Lease financing obligations 92 284 Total long-term debt and lease financing obligations 47,572 41,771 Unamortized debt issuance costs (500 ) (545 ) Current portion of lease financing obligations (92 ) (226 ) Long-term debt and lease financing obligations, net of debt issuance costs and current portion $ 46,980 $ 41,000
Scheduled Future Principal Payments under Outstanding Debt Obligations	Scheduled future principal payments for outstanding debt and lease financing obligations were as follows at September 30, 2016 (in thousands): Years Ending December 31, Remainder of 2016 $ 34 2017 58 2018 — 2019 — 2020 — Thereafter 47,480 $ 47,572

Information about Geographic 25

Information about Geographic Areas (Tables)	9 Months Ended
	Sep. 30, 2016
Segment Reporting [Abstract]
Classification of Revenue by Geography	Total revenue by geography was as follows (in thousands): Three Months Ended September 30, Nine Months Ended 2016 2015 2016 2015 Americas $ 16,784 $ 10,929 $ 43,188 $ 26,584 Europe & Middle East 4,934 3,400 12,667 9,355 Asia Pacific 2,215 1,364 5,402 4,413 Total revenue $ 23,933 $ 15,693 $ 61,257 $ 40,352

Basis of Presentation and Sum26

Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2016
Significant Accounting Policies [Line Items]
Standard warranty period	12 months
Percentage used to determine discount for stand-alone sales (previous 12 months)	15.00%
Minimum
Significant Accounting Policies [Line Items]
Extended warranty period	12 months
Maximum
Significant Accounting Policies [Line Items]
Extended warranty period	36 months

Net Loss Per Share - Summary of

Net Loss Per Share - Summary of Shares Underlying Outstanding Options and Warrants were Excluded from Computation of Basic and Diluted Net Loss Per Share (Detail) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Options to purchase common stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from computation of earnings per share (in shares)	4,752	4,208	4,665	4,025
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from computation of earnings per share (in shares)	117	15	106	15
Common stock warrants | Common Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from computation of earnings per share (in shares)	483	572	524	572

Concentration of Risks - Additi

Concentration of Risks - Additional Information (Detail) - Customer	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Customer Concentration Risk | Total revenue
Concentration Risk [Line Items]
Number of customer that individually represented more than 10% of total revenue and accounts receivable	1	1	1	0
Concentration risk percentage	11.00%	11.00%	13.00%
Credit Concentration Risk | Total accounts receivable
Concentration Risk [Line Items]
Number of customer that individually represented more than 10% of total revenue and accounts receivable			1		0
Concentration risk percentage			11.00%

Short-term Investments - Availa

Short-term Investments - Available-for-Sale Securities (Detail) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Schedule of Available-for-sale Securities [Line Items]
Amortized cost	$ 43,126	$ 27,217
Gross unrealized gains	8	0
Gross unrealized losses	(18)	(29)
Fair value	43,116	27,188
Corporate debt securities
Schedule of Available-for-sale Securities [Line Items]
Amortized cost	29,811	26,116
Gross unrealized gains	1	0
Gross unrealized losses	(17)	(28)
Fair value	29,795	26,088
U.S. government-related debt securities
Schedule of Available-for-sale Securities [Line Items]
Amortized cost	13,315	1,101
Gross unrealized gains	7	0
Gross unrealized losses	(1)	(1)
Fair value	$ 13,321	$ 1,100

Short-term Investments - Fair V

Short-term Investments - Fair Values of Available-for-Sale Securities by Contractual Maturity (Detail) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Investments, Debt and Equity Securities [Abstract]
Maturing in one year or less	$ 33,799	$ 27,188
Maturing in one to three years	9,317	0
Total available-for-sale securities	$ 43,116	$ 27,188

Short-term Investments - Additi

Short-term Investments - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2016USD ($)
Investments, Debt and Equity Securities [Abstract]
Investments that were other-than-temporarily impaired	$ 0

Fair Value Measurements - Compa

Fair Value Measurements - Company's Available-for-Sale Securities by Level within Fair Value Hierarchy (Detail) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	$ 43,116	$ 27,188
Total	52,125	32,559
Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	29,795	26,088
U.S. government-related debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	13,321	1,100
Money market fund
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	9,009	5,371
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	9,009	5,371
Level 1 | Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	0	0
Level 1 | U.S. government-related debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	0	0
Level 1 | Money market fund
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	9,009	5,371
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	43,116	27,188
Level 2 | Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	29,795	26,088
Level 2 | U.S. government-related debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	13,321	1,100
Level 2 | Money market fund
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	0	0
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	0	0
Level 3 | Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	0	0
Level 3 | U.S. government-related debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	0	0
Level 3 | Money market fund
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	$ 0	$ 0

Inventory - Schedule of Invento

Inventory - Schedule of Inventory (Detail) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Inventory Disclosure [Abstract]
Raw materials	$ 4,999	$ 3,575
Work in process	3,443	2,895
Finished goods	3,288	3,668
Inventory, net	$ 11,730	$ 10,138

Long-term Debt and Lease Fina34

Long-term Debt and Lease Financing Obligations - Additional Information (Detail) - Term Loan Agreement	9 Months Ended
	Sep. 30, 2016USD ($)installment	Dec. 31, 2016USD ($)	Jun. 30, 2016USD ($)	Dec. 31, 2015USD ($)	Oct. 31, 2015USD ($)	Oct. 31, 2014USD ($)	Apr. 30, 2014USD ($)
Line of Credit Facility [Line Items]
Credit facility, maximum borrowing capacity					$ 60,000,000		$ 45,000,000
Credit facility, additional borrowing capacity			$ 5,000,000	$ 10,000,000		$ 10,000,000
Percentage of accrue interest	12.00%				12.50%
Percentage of deferred payment	3.00%
Interest deferral period	6 years
Deferred interest payment	$ 2,500,000
Term loans payable	$ 47,480,000			$ 41,487,000
Interest payment period	7 years
Number of installments | installment	4
Percentage payment up on repayment of principal amount	2.00%
Long term liability	$ 1,100,000
Minimum liquidity	2,000,000
Annual revenue requirements	70,000,000
Increase in annual revenue in fiscal years	$ 15,000,000
Maximum
Line of Credit Facility [Line Items]
Credit facility, additional borrowing capacity							$ 20,000,000
Percentage of redemption fee	4.00%
Annual percentage decrease	1.00%
Maximum | Forecast
Line of Credit Facility [Line Items]
Credit facility, additional borrowing capacity		$ 15,000,000

Long-term Debt and Lease Fina35

Long-term Debt and Lease Financing Obligations - Components of Borrowings, Including Current Portion (Detail) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Total long-term debt and lease financing obligations	$ 47,572
Long-term debt and lease financing obligations, net of debt issuance costs and current portion	46,980	$ 41,000
Term Loan Agreement
Debt Instrument [Line Items]
Term loans payable	47,480	41,487
Lease financing obligations	92	284
Total long-term debt and lease financing obligations	47,572	41,771
Unamortized debt issuance costs	(500)	(545)
Current portion of lease financing obligations	(92)	(226)
Long-term debt and lease financing obligations, net of debt issuance costs and current portion	$ 46,980	$ 41,000

Long-term Debt and Lease Fina36

Long-term Debt and Lease Financing Obligations - Scheduled Future Principal Payments under Outstanding Debt Obligations (Detail) $ in Thousands	Sep. 30, 2016USD ($)
Debt Disclosure [Abstract]
Remainder of 2016	$ 34
2,017	58
2,018	0
2,019	0
2,020	0
Thereafter	47,480
Total long-term debt and lease financing obligations	$ 47,572

Collaboration Agreements - Addi

Collaboration Agreements - Additional Information (Detail) - USD ($)	1 Months Ended				3 Months Ended		9 Months Ended		12 Months Ended
	Feb. 29, 2016	Dec. 31, 2015	Jul. 31, 2015	Mar. 31, 2014	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015	Dec. 31, 2014
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Collaboration agreement upfront payment		$ 1,600,000
Minimum annual revenue period							3 years
Amount of certain milestones achieved in account receivable		19,725,000			$ 21,041,000		$ 21,041,000		$ 19,725,000
Revenue recognized under collaboration agreement					4,766,000	$ 1,783,000	12,466,000	$ 3,112,000
Estimated deferred revenue recognized within one year		$ 5,261,000			16,748,000		16,748,000		5,261,000
Collaborative Arrangement | Celgene Corporation
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Maximum success-based milestone payments				$ 45,000,000
Amount of certain milestones achieved in account receivable										$ 6,000,000
Revenue recognized under collaboration agreement					600,000	200,000	2,300,000	1,200,000
Deferred revenue recorded under collaboration agreement					6,100,000		6,100,000
Estimated deferred revenue recognized within one year					1,800,000		$ 1,800,000
Collaborative agreement period							1 year
Collaborative Arrangement | Celgene Corporation | Maximum
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Maximum success-based milestone payments							$ 17,000,000
Collaborative Arrangement | Celgene Corporation | Upfront Payment Arrangement
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Collaboration agreement upfront payment				$ 5,800,000
Collaborative Arrangement | Merck Sharp & Dohme Corp.
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Deferred revenue recorded under collaboration agreement					22,400,000		22,400,000
Collaborative Arrangement | Merck Sharp & Dohme Corp. | Upfront Payment Arrangement
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Collaboration agreement upfront payment	$ 12,000,000		$ 2,000,000				8,500,000		$ 1,900,000
Collaborative Arrangement | Medivation, Inc. and Astellas Pharma, Inc.
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue recognized under collaboration agreement					1,500,000	0	3,600,000	0
Deferred revenue recorded under collaboration agreement					10,800,000		$ 10,800,000
Collaborative agreement period							1 year
Collaborative Arrangement | Medivation, Inc. and Astellas Pharma, Inc. | Upfront Payment Arrangement
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Collaboration agreement upfront payment							$ 6,000,000
New Clinical Collaborative Arrangement [Member] | Merck Sharp & Dohme Corp. | Maximum
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Maximum success-based milestone payments							12,000,000
Clinical Research Collaborative Arrangement | Merck Sharp & Dohme Corp.
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue recognized under collaboration agreement					2,200,000	$ 1,600,000	6,100,000	$ 1,800,000
Deferred revenue recorded under collaboration agreement					7,700,000		$ 7,700,000
Collaborative agreement period							1 year
Clinical Research Collaborative Arrangement | Merck Sharp & Dohme Corp. | Maximum
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Maximum success-based milestone payments							$ 4,000,000
Clinical Research Collaborative Arrangement | Medivation, Inc. and Astellas Pharma, Inc.
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Deferred revenue recorded under collaboration agreement					$ 4,100,000		4,100,000
Clinical Research Collaborative Arrangement | Medivation, Inc. and Astellas Pharma, Inc. | Maximum
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Maximum success-based milestone payments							6,000,000
Development Funding | Medivation, Inc. and Astellas Pharma, Inc. | Maximum
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Maximum success-based milestone payments							$ 10,000,000

Information about Geographic 38

Information about Geographic Areas - Additional Information (Detail) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016USD ($)	Sep. 30, 2015USD ($)	Sep. 30, 2016USD ($)sales_forceSegment	Sep. 30, 2015USD ($)
Revenues from External Customers and Long-Lived Assets [Line Items]
Number of sales forces | sales_force			1
Number of reportable segment | Segment			1
Total revenue	$ 23,933	$ 15,693	$ 61,257	$ 40,352
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	$ 16,200	$ 9,600	$ 41,500	$ 24,500

Information about Geographic 39

Information about Geographic Areas - Classification of Revenue by Geography (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	$ 23,933	$ 15,693	$ 61,257	$ 40,352
Americas
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	16,784	10,929	43,188	26,584
Europe & Middle East
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	4,934	3,400	12,667	9,355
Asia Pacific
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	$ 2,215	$ 1,364	$ 5,402	$ 4,413

Subsequent Event (Details)

Subsequent Event (Details) - USD ($) $ in Thousands	1 Months Ended	9 Months Ended
	Oct. 31, 2016	Sep. 30, 2016	Sep. 30, 2015
Subsequent Event [Line Items]
Proceeds from equity offering program		$ 0	$ 12,508
Subsequent Event | At the market equity offering | Cowen and Company, LLC
Subsequent Event [Line Items]
Common stock, shares issued (in shares)	1,062,330
Proceeds from equity offering program	$ 21,200
Proceeds from underwritten public offering after fees and commissions	20,400
Common stock remained available for sale	$ 5,800