Pfenex (PFNX) 10-Q 13 Nov 15 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Nov. 03, 2015
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q3
Trading Symbol	PFNX
Entity Registrant Name	Pfenex Inc.
Entity Central Index Key	1,478,121
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		23,290,720

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Current assets
Cash and cash equivalents	$ 115,924	$ 45,722
Accounts and unbilled receivables, net	1,097	1,584
Inventories	25	23
Income tax receivable	281	402
Deferred income taxes	3,281	3,281
Other current assets	1,976	1,753
Total current assets	122,584	52,765
Restricted cash	3,958	3,955
Income tax receivable	918
Property and equipment, net	3,076	2,310
Other long term assets	53	53
Intangible assets, net	5,965	6,363
Goodwill	5,577	5,577
Total assets	142,131	71,023
Current liabilities
Accounts payable	1,402	1,129
Accrued liabilities	5,331	2,633
Current portion of deferred revenue	3,882	201
Line of credit obligation		3,813
Total current liabilities	10,615	7,776
Deferred revenue, less current portion	45,173
Deferred tax liability	3,281	3,281
Line of credit obligation	3,813
Other long-term liabilities	57	92
Total liabilities	$ 62,939	$ 11,149
Commitments and contingencies (Note 7)
Stockholders' equity
Preferred stock, $0.001 par value, 10,000,000 shares authorized; no shares issued and outstanding
Common stock, $0.001 par value, 200,000,000 shares authorized; 23,254,132 and 20,405,066 shares issued and outstanding at September 30, 2015 and December 31, 2014, respectively	$ 24	$ 21
Additional paid-in capital	212,001	173,141
Accumulated deficit	(132,833)	(113,288)
Total stockholders' equity	79,192	59,874
Total liabilities and stockholders' equity	$ 142,131	$ 71,023

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2015	Dec. 31, 2014
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.001	$ 0.001
Common stock, authorized	200,000,000	200,000,000
Common stock, shares issued	23,254,132	20,405,066
Common stock, outstanding	23,254,132	20,405,066

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Income Statement [Abstract]
Revenue	$ 2,057	$ 2,801	$ 6,322	$ 8,625
Cost of revenue	682	1,579	2,911	6,031
Gross profit	1,375	1,222	3,411	2,594
Operating expense
Selling, general and administrative	3,276	2,447	10,855	5,966
Research and development	5,679	1,251	12,098	2,789
Total operating expense	8,955	3,698	22,953	8,755
Loss from operations	(7,580)	(2,476)	(19,542)	(6,161)
Other income (expense), net	(9)	(19)	38	(58)
Net loss before income taxes	(7,589)	(2,495)	(19,504)	(6,219)
Income tax expense	(1)		(41)	(1)
Net loss	$ (7,590)	$ (2,495)	$ (19,545)	$ (6,220)
Net loss per common share basic and diluted	$ (0.33)	$ (0.16)	$ (0.89)	$ (1.06)
Weighted-average common shares used to compute basic and diluted net loss per share	23,215	15,319	22,066	5,849

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Cash flows from operating activities
Net loss	$ (19,545)	$ (6,220)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities
Depreciation and amortization	394	348
Amortization of intangible assets	398	398
Stock-based compensation expense	1,221	191
Loss on disposal of property and equipment	51
Changes in operating assets and liabilities
Accounts and unbilled receivables	487	1,676
Inventories	(2)	2
Other current assets	(223)	(142)
Other long term assets		78
Accounts payable	273	(324)
Accrued expenses	2,663	(93)
Deferred revenue	48,854	(485)
Income tax receivable	(797)	(3)
Net cash provided by (used in) operating activities	33,774	(4,574)
Cash flow from investing activities
Sales/maturities of investments		1,250
Acquisitions of property and equipment	(1,211)	(20)
Net cash (used in) provided by investing activities	(1,211)	1,230
Cash flows from financing activities
Borrowings under line of credit agreement		223
Restricted cash	(3)	125
Repurchase of common stock		(131)
Proceeds from exercise of stock options and other stock issuances	300	33
Proceeds from issuance of common stock from initial public offering		50,641
Proceeds from issuance of common stock from secondary offering	37,342
Net cash provided by financing activities	37,639	50,891
Net increase in cash and cash equivalents	70,202	47,547
Cash and cash equivalents
Beginning of period	45,722	3,954
End of period	115,924	51,501
Supplemental schedule of cash flow information
Cash paid for interest	78	69
Cash paid for taxes	$ 942	21
Non-cash financing transactions
Conversion of preferred stock to common stock		113,940
Preferred stock dividends paid in common shares		7,307
Accretion of preferred stock redemption value		$ 760

Organization and Summary of Sig

Organization and Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Summary of Significant Accounting Policies	1. Organization and Summary of Significant Accounting Policies Business Activities and Organization Pfenex Inc. (“Company” or “Pfenex”) was incorporated in the state of Delaware in 2009. The Company is a clinical-stage biotechnology company engaged in the development of biosimilar and generic therapeutics and other high value and difficult-to-manufacture proteins. The Company’s lead product candidate is PF582, a biosimilar candidate to Lucentis (ranibizumab). Lucentis is marketed by Genentech, Inc. a wholly-owned member of the Roche Group and Novartis AG, for the treatment of patients with retinal diseases. The Company is conducting a Phase 1b/2a trial in patients with wet age-related macular degeneration, or wet AMD, with its collaboration partner, Hospira, Inc. (“Hospira”), a subsidiary of Pfizer Inc. (collectively with Hospira, “Pfizer”). Pfizer is responsible for determining the need for and timing of any interim analysis for the Phase 1b/2a trial. The Company expects to commence a comparative clinical study with Pfizer in 2016. Pfizer will be responsible for the manufacturing and commercialization of PF582 globally upon successful receipt of marketing approval. The Company’s next most advanced product candidates are PF530 and PF708. PF530 is a biosimilar candidate to Betaseron (interferon beta-1b), marketed by Bayer AG for the treatment of multiple sclerosis. The pilot Phase 1 study for PF530 was initiated in March 2015. PF708 is a generic candidate to Forteo (teriparatide), marketed by Eli Lilly for the treatment of osteoporosis. PF708 is expected to enter into a bioequivalence study by the end of 2015. In addition to the Company’s three lead product candidates, its pipeline includes four other biosimilar candidates as well as vaccine, generic and next generation biologic candidates. The Company filed the Investigational New Drug (“IND”) application for its recombinant anthrax vaccine at the end of 2014. The Company’s revenue in the near term is primarily related to monetizing its protein production platform through collaboration agreements, service agreements, government contracts and reagent protein product sales which may provide for various types of payments, including upfront payments, funding of research and development, milestone payments, intellectual property access fees and licensing fees. Reverse Stock Split On June 27, 2014, the Company effected a 2.812-for-1 reverse stock split of its common and preferred stock. All share and per share information has been retroactively adjusted to reflect this reverse stock split. Initial Public Offering In July 2014, the Company completed its initial public offering (“IPO”) in which 8,333,333 shares of common stock at a price of $6.00 per share were issued and sold. Additionally, the Company sold 1,095,751 shares of common stock pursuant to the underwriters’ option to purchase additional shares. The Company received aggregate proceeds of approximately $52.6 million from the sale of shares of common stock, net of underwriters’ discounts and commissions, but before deducting paid and unpaid offering expenses of approximately $2.0 million. In connection with the IPO, (i) all shares of the Company’s outstanding convertible preferred stock automatically converted into 8,634,857 shares of common stock, (ii) the Company issued 1,217,784 shares of common stock as payment of all accrued and unpaid dividends through July 28, 2014; (iii) the Company repurchased 423,185 shares of its common stock at a purchase price of $0.31 per share pursuant to the amended and restated subscription agreement, dated May 2, 2014, entered into with certain stockholders, including Signet Healthcare Partners Accredited Partnership III, LP and Signet Healthcare Partners QP Partnership III, LP; and (iv) certain members of the Company’s executive management team forfeited an aggregate of 100,000 shares of common stock. Follow-on Public Offering In April 2015, the Company completed a follow-on public offering pursuant to which it sold 2,610,000 shares of its common stock at a price to the public of $15.50 per share. In addition, certain existing stockholders sold 4,140,000 shares of common stock in the underwritten public offering at the same per-share price. The total proceeds the Company received from the offering were approximately $38.0 million, net of underwriting discounts and commissions of approximately $2.4 million. After deducting estimated offering expenses of approximately $0.6 million, net proceeds to the Company were $37.4 million. Subsidiary – Pfenex Limited The UK subsidiary was formed in December 2013 to assist with the Company’s international strategy at that time. In May 2015, the Company initiated the process to dissolve the subsidiary. The dissolution of the subsidiary was finalized in September 2015. Since its incorporation, there has been no activity in the subsidiary and therefore no intercompany relationship requiring inclusion in the accompanying unaudited condensed consolidated financial statements. Basis of Presentation The accompanying unaudited condensed consolidated financial statements, which include the Company’s wholly-owned subsidiary, have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”) for interim financial information and with the instructions of the Securities and Exchange Commission (“SEC”) on Form 10-Q and Rule 10-01 of Regulation S-X. Segments The Company operates in one segment. Management uses one measurement of profitability and does not segregate its business for internal reporting. All long-lived assets are maintained at the Company’s facility in the United States. Use of Estimates The preparation of the accompanying unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Estimates have been prepared on the basis of the most current and best available information. However, actual results could differ from those estimates. Cash and Cash Equivalents The Company considers all highly liquid investments that are readily convertible into cash and have an original maturity of three months or less at the time of purchase to be cash equivalents. Restricted Cash As discussed in Note 6, the Company has a line of credit with Wells Fargo Bank, National Association (“Wells Fargo”) under which the Company may borrow up to $3.9 million. The line of credit is secured by a security interest of first priority in favor of Wells Fargo in all funds deposited into the Company’s money market account held at Wells Fargo. Restrictions on the money market account will be removed when the line of credit is paid in full and has expired. The line of credit expires on July 1, 2018, at which time all outstanding amounts become due and payable. Concentrations Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash, cash equivalents, investments and accounts and unbilled receivables. The Company has established guidelines intended to limit its exposure to credit risk by placing investments with high credit quality financial institutions, diversifying its investment portfolio and placing investments with maturities that help maintain safety and liquidity. All cash and cash equivalents were held at two major financial institutions as of September 30, 2015 and December 31, 2014. For the Company’s cash position of $119.9 million as of September 30, 2015, which includes restricted cash of $4.0 million, the Company has exposure to credit loss for amounts in excess of insured limits in the event of non-performance by the institutions; however, the Company does not anticipate non-performance. Additional credit risk is related to the Company’s concentration of receivables. As of September 30, 2015 and December 31, 2014, receivables were concentrated among two customers representing 76% and 95% of total net receivables, respectively. For the three month period ended September 30, 2015, revenue was concentrated among two customers, including the Company’s collaborative partner, representing 77% of total revenues and three customers representing 85% for the three months ended September 30, 2014. For the nine month period ended September 30, 2015, revenue was concentrated among four customers, including the Company’s collaborative partner, representing 83% of total revenues and two customers representing 72% for the nine months ended September 30, 2014. There were no supplier concentrations. A portion of revenue is earned from sales outside the United States. Non-U.S. revenue is denominated in U.S. dollars. A breakdown of the Company’s net revenue from U.S. and non-U.S. sources for the three and nine months ended September 30, 2015 and 2014 is as follows: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2015 2014 2015 2014 US Revenue $ 1,939 $ 2,272 $ 5,278 $ 7,432 Non-US Revenue 118 529 1,044 1,193 $ 2,057 $ 2,801 $ 6,322 $ 8,625 During the nine months ended September 30, 2015, revenue earned from non-recurring sales in Japan accounted for 11% of the Company’s revenue. During the three months ended September 30, 2015 and the three and nine months ended September 30, 2014, no single foreign country accounted for more than 10% of the Company’s revenue. Inventories Inventories consist of reagent protein products and are valued at the lower of cost or market. The Company regularly reviews inventories on hand to identify any inventory that has become obsolete or has a cost basis in excess of its expected net realizable value, as well as any inventory quantities in excess of expected requirements. No write-downs were recorded during the nine months ended September 30, 2015 or 2014. Revenue The Company’s revenue is related to the monetization of its protein production platform through collaboration agreements, service agreements, license agreements, government contracts and sales of reagent protein products which may provide for various types of payments, including upfront payments, funding of research and development, milestone payments, intellectual property access fees and licensing fees. The Company’s revenue generating agreements also include potential revenues for achieving milestones and for product royalties. The Company considers a variety of factors in determining the appropriate method of accounting for its collaboration agreements, including whether multiple deliverables can be separated and accounted for individually as separate units of accounting. Where there are multiple deliverables within a collaboration agreement that cannot be separated and therefore are combined into a single unit of accounting, revenues are deferred and recognized using the relevant guidance over the estimated period of performance. If the deliverables can be separated, the Company applies the relevant revenue recognition guidance to each individual deliverable. The specific methodology for the recognition of the underlying revenue is determined on a case-by-case basis according to the facts and circumstances applicable to each agreement. Upfront, non-refundable licensing payments are assessed to determine whether or not the licensee is able to obtain standalone value from the license. Where the license does not have standalone value, non-refundable license fees are recorded as deferred revenue and recognized as revenue as the Company performs under the applicable agreement. Where the level of effort is relatively consistent over the performance period, the Company recognizes fixed or determined revenue on a straight-line basis over the estimated period of performance. Where the license has standalone value, the Company recognizes total license revenue at the time all revenue recognition criteria have been met. Nonrefundable payments for research funding are generally recognized as revenue over the period the underlying research activities are performed. Revenues under service agreements are recorded as services are performed. These agreements do not require scientific achievement as a performance obligation and provide for payment when services are rendered. All such revenue is nonrefundable. Upfront, nonrefundable payments for license fees, exclusivity and feasibility services received in excess of amounts earned are classified as deferred revenue and recognized as income over the contract term or period of performance based on the nature of the related agreement. The Company recognizes revenue for its cost plus fixed fee government contracts in accordance with the authoritative guidance for revenue recognition including the authoritative guidance specific to federal government contractors. Reimbursable costs under its government contracts primarily include direct labor, materials, subcontracts, accountable property and indirect costs. In addition, the Company receives a fixed fee under its government contracts, which is unconditionally earned as allowable costs are incurred and is not contingent on success factors. Reimbursable costs under the Company’s government contracts, including the fixed fee, are generally recognized as revenue in the period the reimbursable costs are incurred and become billable. The Company assesses milestone payments on an individual basis and recognizes revenue from nonrefundable milestone payments when the earnings process is complete and the payment is reasonably assured. Nonrefundable milestone payments related to arrangements under which the Company has continuing performance obligations are recognized as revenue upon achievement of the associated milestone, provided that (i) the milestone event is substantive and its achievability was not reasonably assured at the inception of the agreement and (ii) the amount of the milestone payment is reasonable in relation to the effort expended or the risk associated with the milestone event. Where separate milestone payments do not meet these criteria, the Company recognizes revenue using a contingency-adjusted performance model over the period of performance. For the three and nine months ended September 30, 2015 and 2014, no revenue in connection with the achievement of milestones has been recognized. The Company’s reagent protein products are comprised of internally developed reagent protein products and those purchased from original manufacturers for resale. Revenues for reagent product sales are reflected net of attributable sales tax. The Company generally offers a 30 day return policy. The Company recognizes reagent product revenue from product sales when it is realized or realizable and earned. Revenue is realized or realizable and earned when all of the following criteria are met: (1) persuasive evidence of an arrangement exists, (2) delivery has occurred or services have been rendered, (3) the Company’s price to the buyer is fixed or determinable, and (4) collectability is reasonably assured. Revenue from sales transactions where the buyer has the right to return the product is recognized at the time of sale only if: (1) the Company’s price to the buyer is substantially fixed or determinable at the date of sale, (2) the buyer has paid the Company, or the buyer is obligated to pay the Company and the obligation is not contingent on resale of the product, (3) the buyer’s obligation to the Company would not be changed in the event of theft or physical destruction or damage of the product, (4) the buyer acquiring the product for resale has economic substance apart from that provided by the Company, (5) the Company does not have significant obligations for future performance to directly bring about resale of the product by the buyer, and (6) the amount of future returns can be reasonably estimated. As of September 30, 2015, the Company has had minimal product returns related to reagent protein product sales. However, given the nature of the products, the Company has recorded reserves of $2 thousand and $10 thousand for warranty and return rights at September 30, 2015 and December 31, 2014, respectively. The reserve is a component of accounts and unbilled receivables, net in the accompanying unaudited condensed consolidated balance sheets. Revenue under arrangements where the Company outsources the cost of fulfillment to third parties is evaluated as to whether the related amounts should be recorded gross or net. The Company records amounts collected from the customer as revenue, and the amounts paid to suppliers as cost of revenue when it holds all or substantially all of the risks and benefits related to the product or service. For transactions where the Company does not hold all or substantially all the risk, the Company uses net reporting and therefore records the transaction as if the end-user made a purchase from the supplier with the Company acting as a sales agent. Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU), “Revenue from Contracts with Customers,” which outlines a comprehensive revenue recognition model and supersedes most current revenue recognition guidance. The new standard requires a company to recognize revenue upon transfer of goods or services to a customer at an amount that reflects the expected consideration to be received in exchange for those goods or services. The ASU defines a five-step approach for recognizing revenue, which may require a company to use more judgment and make more estimates than under the current guidance. The ASU as currently issued will be effective for the Company starting in 2019. The new standard allows for two methods of adoption: (a) full retrospective adoption, meaning the standard is applied to all periods presented, or (b) modified retrospective adoption, meaning the cumulative effect of applying the new standard is recognized as an adjustment to the opening retained earnings balance. The Company is in the process of determining the adoption method as well as the effects the adoption will have on its condensed consolidated financial statements.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2015
Fair Value Disclosures [Abstract]
Fair Value Measurements	2. Fair Value Measurements Authoritative guidance defines fair value, establishes a framework for measuring fair value in U.S. GAAP and requires disclosures about fair value measurements. Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, a three-tier fair value hierarchy has been established, which prioritizes the inputs used in measuring fair value as follows: Level 1 Observable inputs such as quoted prices in active markets for identical assets or liabilities. Level 1 assets at September 30, 2015 and December 31, 2014 included the Company’s cash, cash equivalents and investments in certificates of deposit. There were no Level 1 liabilities; Level 2 Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly. The Company had no Level 2 assets or liabilities at September 30, 2015 or December 31, 2014; and Level 3 Unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of assets or liabilities in which there is little or no market data. The Company had no Level 3 assets or liabilities at September 30, 2015 or December 31, 2014. The following table presents the Company’s assets that are measured at fair value on a recurring basis as of September 30, 2015 and December 31, 2014: (in thousands) Total Fair Value Measurements at Reporting Date Using Quoted Prices Significant Significant September 30, 2015 Cash and money market funds $ 119,882 $ 119,882 $ — $ — Total assets measured at fair value $ 119,882 $ 119,882 $ — $ — December 31, 2014 Cash and money market funds $ 49,677 $ 49,677 $ — $ — Total assets measured at fair value $ 49,677 $ 49,677 $ — $ — Cash and money market funds include restricted cash, which is included in non-current assets on the balance sheets.

Property and Equipment

Property and Equipment	9 Months Ended
	Sep. 30, 2015
Property, Plant and Equipment [Abstract]
Property and Equipment	3. Property and Equipment Property and equipment consisted of the following: (in thousands) September 30, December 31, Furniture and equipment $ 173 $ 157 Computers and IT equipment 251 190 Purchased software 728 686 Lab and research equipment 3,253 2,837 Leasehold improvements 450 348 Construction in progress 417 — Other fixed assets 64 35 Total property and equipment, gross 5,336 4,253 Less: accumulated depreciation and amortization (2,260 ) (1,943 ) Total property and equipment, net $ 3,076 $ 2,310 Total depreciation and amortization expense was included in selling, general and administrative expenses and research and development in the accompanying condensed consolidated statements of operations as follows: Three Months Ended Nine Months Ended (in thousands) 2015 2014 2015 2014 Selling, general and administrative $ 65 $ 97 $ 194 $ 288 Research and development 74 19 200 60 Total depreciation and amortization expense $ 139 $ 116 $ 394 $ 348

Intangible Assets

Intangible Assets	9 Months Ended
	Sep. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets	4. Intangible Assets Intangible assets consisted of the following: (in thousands) September 30, December 31, Customer relationships $ 3,750 $ 3,750 Developed technology 4,400 4,400 Trade names 910 910 Gross intangible assets 9,060 9,060 Less: Accumulated amortization (3,095 ) (2,697 ) Total intangible assets, net $ 5,965 $ 6,363 Amortization expense was $0.1 million for each of the three months ended September 30, 2015 and 2014 and $0.4 million for each of the nine months ended September 30, 2015 and 2014. Amortization expense is included within selling, general and administrative expense in the accompanying condensed consolidated statements of operations. As of September 30, 2015, estimated amortization expense for the next five years amounts to approximately $0.5 million per year.

Accrued Liabilities

Accrued Liabilities	9 Months Ended
	Sep. 30, 2015
Payables and Accruals [Abstract]
Accrued Liabilities	5. Accrued Liabilities Accrued liabilities consisted of the following: (in thousands) September 30, December 31, Accrued vacation $ 400 $ 379 Deferred rent 374 247 Accrued bonuses 880 913 Other accrued employee-related liabilities 223 125 Accrued professional fees 316 221 Accrued supplier liability 33 198 Accrued subcontractor costs 2,699 292 Other accrued liabilities 406 258 $ 5,331 $ 2,633

Line of Credit Obligation

Line of Credit Obligation	9 Months Ended
	Sep. 30, 2015
Debt Disclosure [Abstract]
Line of Credit Obligation	6. Line of Credit Obligation The Company previously entered into two Revolving Line of Credit agreements with Wells Fargo (“LOCs”), the first of which was entered into in May 2012 (“2012 LOC”) and the second in June 2013 (“2013 LOC”). The maximum capacity for the 2012 LOC and 2013 LOC was $1.5 million and $2.4 million, respectively, for a total capacity of $3.9 million. The LOCs were collateralized by money market accounts held at Wells Fargo. In June 2014, January 2015 and March 2015, the LOCs were amended which allowed the Company to make additional investments in fixed assets; incur operating lease expenses in any fiscal year up to $0.6 million and then $0.9 million; declare or pay any dividend or distribution either in cash, stock or any other property, or redeem, retire, repurchase or otherwise acquire any shares of any class of its stock in connection with the Company’s IPO; and extended the maturity date on both lines of credit to July 2015. In July 2015, the Company and Wells Fargo entered into the Amended and Restated Credit Agreement and the Amended and Restated Revolving Line of Credit Note (together, the “Amended Credit Facility”). The Amended Credit Facility replaces the LOCs and still provides the Company with a $3.9 million revolving line of credit which the Company may draw upon from time to time. The proceeds of the loans under the Amended Credit Facility may be used for working capital and general corporate purposes. The Amended Credit Facility contains customary affirmative covenants, such as financial statement reporting requirements. The Amended Credit Facility also contains customary negative covenants that limit the ability of the Company to, among other things, pay cash dividends if a default is continuing or would occur as a result, incur debt, create liens and encumbrances, or redeem or repurchase stock for cash if a default is continuing or would occur as a result. Future U.S. subsidiaries are required to become subsidiary guarantors of all amounts owing under the Amended Credit Facility. The Amended Credit Facility contains customary events of default, such as the failure to pay obligations when due, initiation of bankruptcy or insolvency proceedings, defaults on certain other indebtedness, change of control, and material breach of representations and warranties. Upon an event of default, the lender may, subject to customary cure rights, require the immediate payment of all amounts outstanding and foreclose on collateral. The Amended Credit Facility terminates, and all outstanding loans become due and payable, on July 1, 2018. Amounts outstanding under the Amended Credit Facility bear interest at a rate equal to, at the Company’s option, (i) a fluctuating rate per annum equal to 2.25% above the overnight LIBOR Rate or (ii) a fixed rate per annum determined by Wells Fargo to be 2.00% above the LIBOR Rate in effect on the first day of each LIBOR Period. As of September 30, 2015, the amount drawn down on the Amended Credit Facility was $3.8 million and bore a fixed interest rate of 2.31%. The Company recognized $22 thousand of interest expense related to the Amended Credit Facility and LOCs for each of the three months ended September 30, 2015 and 2014 and $67 thousand and $63 thousand for the nine months ended September 30, 2015 and 2014, respectively.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	7. Commitments and Contingencies Collaborative Arrangement In February 2015, the Company entered into a development and license agreement with Pfizer following the close of the acquisition in September 2015, in which comparative clinical study costs for PF582 will be shared. Pfizer will be responsible for manufacturing and commercializing the product. Under the terms of the collaboration, the Company is eligible to receive up to $342 million in one-time payments, including a non-refundable payment for the license agreement of $51 million, which was received in March of 2015 upon receipt of antitrust approval, up to $291 million upon the successful achievement of certain pre-commercial and commercial milestones, and double digit escalating royalties on annual sales of PF582. Accordingly, the Company is recognizing the $51 million over the patent lives, which extend to 2028. In the three and nine months ended September 30, 2015, $0.9 million and $2.0 million was recognized as license revenue. Lease Agreements In June 2010, the Company entered into a lease agreement (“Lease”) with a landlord for an initial term of 10 years, for its corporate headquarters comprised of one building located in San Diego, California. Occupation of the premises under the Lease began in April 2011. Under the terms of the Lease, the Company pays annual base rent, subject to an annual fixed percentage increase, plus its share of common operating expenses. The annual base rent was subject to abatement of 50% for the first year of the lease. The Company recognizes rent expense on a straight-line basis over the term of the Lease. In September 2014, the Company amended the Lease to extend the term for an additional three years through March 31, 2024 and to lease additional facilities consisting of 7,315 square feet, resulting in a total increase in the estimated rent payments over the life of the Lease by approximately $2.9 million. Base rent payments for the new space commenced in December 2014 and increased total estimated rent payments over the life of the Lease by approximately $1.5 million. The extended term on the existing space increased total estimated rent payments by approximately $1.4 million. In addition to the base rent, the Company is obligated to pay certain customary amounts for its share of operating expenses and tax obligations. In addition to the Lease, the Company has entered into operating and capital lease agreements for office and lab equipment that expire at various dates through December 2019. Line of Credit In July 2015, the Company entered into the Amended Credit Facility. See Note 6 - Line of Credit Obligation for more information. Estimated interest payments have been calculated for this debt based on the applicable rates and payment dates existing as of September 30, 2015. Although the interest rates on this debt obligation may vary, the interest rate as of September 30, 2015 has been applied for all years presented. The following table summarizes our contractual obligations as of September 30, 2015 for the remainder of fiscal 2015 and future fiscal years: Payment Amounts Operating Capital Leases Interest on Long-Term Line of Credit Total (in thousands) 2015 $ 153 $ 12 $ 22 $ — $ 187 2016 623 47 90 — 760 2017 639 47 90 — 776 2018 573 — 45 3,813 4,431 2019 590 — — — 590 Thereafter 2,631 — — — 2,631 Total $ 5,209 $ 106 $ 247 $ 3,813 $ 9,375

Common Stock and Preferred Stoc

Common Stock and Preferred Stock	9 Months Ended
	Sep. 30, 2015
Equity [Abstract]
Common Stock and Preferred Stock	8. Common Stock and Preferred Stock Prior to the completion of the IPO in July 2014, the Company was authorized to issue common stock and Series A-1 and Series A-2 redeemable convertible preferred stock. Immediately prior to the completion of the IPO, all of the outstanding shares of convertible preferred stock automatically converted into 8,634,857 shares of common stock. The Company issued 1,217,784 shares of common stock in connection with the payment of all accrued and unpaid dividends on the preferred stock upon the conversion of the convertible preferred stock to common stock immediately prior to the completion of the IPO. The Company also repurchased 423,185 shares of its common stock at a purchase price of $0.31 per share pursuant to the amended and restated subscription agreement, dated May 2, 2014, entered into with certain stockholders, including Signet Healthcare Partners Accredited Partnership III, LP and Signet Healthcare Partners QP Partnership III, LP. Additionally, members of the Company’s management team forfeited an aggregate of 100,000 shares of common stock in connection with the completion of the IPO. Common Stock Each share of common stock is entitled to one vote. The holders of common stock are also entitled to receive dividends whenever funds are legally available and when declared by the board of directors, subject to the prior rights of holders of other classes of stock outstanding. Preferred Stock Pursuant to the amended and restated certificate of incorporation filed by the Company immediately prior to the completion of its IPO, the board of directors is authorized to issue up to 10,000,000 shares of preferred stock in one or more series and to fix the rights, preferences, privileges and restrictions thereof. These rights, preferences and privileges could include dividend rights, conversion rights, voting rights, redemption rights, liquidation preferences, and the number of shares constituting any series or the designation of such series, any or all of which may be greater than the rights of common stock. The issuance of preferred stock could adversely affect the voting power of holders of common stock and the likelihood that such holders will receive dividend payments and payments upon liquidation. In addition, the issuance of preferred stock could have the effect of delaying, deferring or preventing change in the Company’s control or other corporate action. Series A-1 and A-2 Redeemable Convertible Preferred Stock Prior to July 2014, the Company had Series A-1 and A-2 preferred stock outstanding, which had a contingent redemption feature allowing redemption by the holders. The redeemable convertible preferred stock had been classified as mezzanine equity (outside of permanent equity) on the Company’s balance sheet. Series A-1 stock was subject to a cumulative dividend of four percent (4%) compounded quarterly, whether or not declared. Each share of Series A-1 stock was convertible into 0.91966 shares of common stock, subject to adjustments for certain dilutive events. Series A-2 stock was subject to a cumulative dividend of eight percent (8%) compounded quarterly, whether or not declared. Each share of Series A-2 stock was convertible into 1.1406 shares of common stock, subject to adjustments for certain dilutive events. All of the Company’s outstanding preferred stock was converted to common stock on July 28, 2014, at which time no dividends had been declared or paid. Cumulative dividends were as follows: Cumulative as of July 28, 2014 (in thousands, except dividends per share) Dividends Dividends Series A-2 $ 4,457 $ 1.25 Series A-1 2,850 $ 0.57 $ 7,307

Repurchase of Common Stock

Repurchase of Common Stock	9 Months Ended
	Sep. 30, 2015
Equity [Abstract]
Repurchase of Common Stock	9. Repurchase of Common Stock On December 1, 2009, the Company entered into a common stock subscription agreement with three investors pursuant to which the Company agreed to repurchase a maximum of 423,185 shares of common stock at a price per share of $0.31. Pursuant to the amended and restated subscription agreement, dated May 2, 2014, the Company repurchased all 423,185 shares of common stock at $0.31 price per share immediately prior to the completion of the IPO in July 2014 for a total cost of $131 thousand.

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Sep. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation	10. Stock-Based Compensation Summary Stock-Based Compensation Information The following table summarizes stock-based compensation expense: Three Months Ended Nine Months Ended (in thousands) 2015 2014 2015 2014 Cost of revenues $ 19 $ 23 $ 62 $ 44 Research and development 115 20 247 37 Selling, general and administrative 343 64 912 110 Total $ 477 $ 107 $ 1,221 $ 191 Stock-based compensation from: Stock options $ 461 $ 107 $ 1,160 $ 191 Employee stock purchase plan 16 — 61 — Total $ 477 $ 107 $ 1,221 $ 191 Stock-Based Compensation Plans The 2009 Equity Incentive Plan (“2009 Plan”) terminated in connection with the Company’s IPO in 2014 and, accordingly, no awards will be granted under the 2009 Plan following the IPO. However, the 2009 Plan will continue to govern outstanding awards granted thereunder. An aggregate of 1.1 million shares of common stock was reserved for issuance under the 2009 Plan. The 2009 Plan provided for the grant of incentive stock options and for the grant of nonstatutory stock options, restricted stock, restricted stock units, and stock appreciation rights to the Company’s employees, directors and consultants. As of September 30, 2015, awards covering approximately 0.7 million shares of common stock were outstanding under the 2009 Plan. In July 2014, the board of directors adopted the 2014 Equity Incentive Plan (“2014 Plan”) and the Company’s stockholders approved it. The 2014 Plan provides for the grant of incentive stock options, within the meaning of Section 422 of the Internal Revenue Code, to employees and any parent and subsidiary corporations’ employees, and for the grant of nonstatutory stock options, restricted stock, restricted stock units, stock appreciation rights, performance units and performance shares to its employees, directors and consultants and its parent and subsidiary corporations’ employees and consultants. Upon approval, a total of 1,356,219 shares of common stock were reserved for issuance pursuant to the 2014 Plan. In addition, the shares reserved for issuance under the 2014 Plan include shares returned to the 2009 Plan as the result of expiration or termination of awards (provided that the maximum number of shares that may be added to the 2014 Plan pursuant to such previously granted awards under the 2009 Plan is 961,755 shares). The number of shares available for issuance under the 2014 Plan also includes an annual increase on the first day of each fiscal year beginning in 2015 and ending with and including the 2018 fiscal year, equal to the least of: (i) 1,356,219 shares; (ii) 2.5% of the outstanding shares of common stock as of the last day of the immediately preceding fiscal year; or (iii) such other amount as the board of directors may determine. Stock options granted to date under the 2009 Plan and the 2014 Plan have a term of ten years from the date of grant, and generally vest over a four-year period. However, in the event that an incentive stock option (“ISO”) granted to a participant who, at the time the ISO is granted, owns stock representing more than 10% of the total combined voting power of all classes of stock of the Company, the term of the ISO shall be five years from the grant date or such shorter term as may be provided in the award agreement. In January 2015, the board of directors approved an increase of 510,126 shares to the number of shares reserved for issuance under the 2014 Plan. During the nine months ended September 30, 2015, options to purchase 751,065 shares of common stock were granted and options to purchase 98,483 shares of common stock were forfeited under the 2014 Plan. As of September 30, 2015, a total of 885,293 shares were available for issuance under the 2014 Plan. Employee Stock Purchase Plan In July 2014, the board of directors adopted the 2014 Employee Stock Purchase Plan (“ESPP”) and the stockholders approved it. The ESPP provides eligible employees of the Company with an opportunity to acquire shares of its common stock at a discount. The ESPP permits eligible employees to purchase shares of common stock during consecutive and overlapping 24-month offering periods beginning on the first trading day on or after February 15 and August 15 of each year (“Offering Periods”), unless adjusted by the board of directors or one of its designated committees. Eligible employees may purchase shares of up to 15% of their total compensation per pay period, but may purchase no more than $25,000 in fair market value of common stock in any calendar year and no more than 700 shares of common stock per semi-annual purchase period. The price an employee pays is 85% of the fair market value of common stock. Fair market value is equal to the lesser of the closing price of a share of common stock on either the first or last day of the Offering Period. A total of 355,618 shares of common stock were reserved for sale under the ESPP as of December 31, 2014. In addition, the ESPP provides for annual increases in the number of shares available for sale under the ESPP on the first day of each fiscal year beginning in 2015, equal to the least of: (i) 355,618 shares; (ii) 1.5% of the outstanding shares of the common stock on the last day of the immediately preceding fiscal year; or (iii) such other amount as may be determined by the administrator. In January 2015, the board of directors approved an increase of 306,075 shares to the number of shares reserved for sale under the ESPP. During the first nine months of 2015, 24,310 shares were purchased under the ESPP. As of September 30, 2015, a total of 637,383 shares are available for sale under the ESPP. During nine months ended September 30, 2015, proceeds of $140 thousand were received for the issuance of shares under the ESPP. There is no expense for the three or nine months ended September 30, 2014. For the three and nine months ended September 30, 2015, the Company recorded compensation expense related to the ESPP of $16 thousand and $61 thousand, respectively. The fair value of the employees’ stock purchase rights granted under the ESPP was estimated using the Black-Scholes option pricing model with the following assumptions: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Risk-free interest rate Less than 1% N/A Less than 1% N/A Expected term of options (months) 6 - 24 N/A 6 - 24 N/A Expected volatility 29.2% - 41.0% N/A 29.2% - 44.8% N/A Dividend yield 0% N/A 0% N/A Stock Options The exercise price of all options granted during the three and nine months ended September 30, 2015 and 2014 was equal to the estimated fair value of the underlying common stock on the date of grant, or following the IPO, the closing price of the Company’s common stock on the date of grant. The fair value of each stock option granted is estimated on the grant date under the fair value method using the Black-Scholes model. The estimated fair values of the stock option, including the effect of estimated forfeitures, are then expensed over the requisite service period which is generally the vesting period. The following assumptions were used to estimate the fair value of stock options: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Risk-free interest rate 1.6% - 1.7% 2.0% 1.3% - 1.9% 1.9% - 2.0% Expected volatility 49.8% - 66.2% 53.0% 50.2% - 66.2% 48.7% - 53.5% Expected dividend yield 0.0% 0.0% 0.0% 0.0% Expected life of options in years 5.3 – 6.3 6.0 –6.1 5.3 – 6.3 5.5 – 6.1 The fair value of equity instruments that are ultimately expected to vest, net of estimated forfeitures, are recognized and amortized on a straight-line basis over the requisite service period. The Black-Scholes option-pricing model requires multiple subjective inputs, including a measure of expected future volatility. Until the IPO in July 2014, the Company’s stock did not have a readily available market. Consequently, the expected future volatility was based on the historical volatility for comparable publically traded companies over the most recent period commensurate with the estimated expected term of the Company’s stock options. Following the completion of the Company’s IPO in July 2014, the fair value of options granted is based on the closing price of the Company’s common stock on the date of grant as quoted on the NYSE MKT. The risk-free interest rate assumption is based upon observed interest rates during the period appropriate for the expected term of the options. The expected term of options granted represents the period of time the options are expected to be outstanding. With the exception of the dividend paid in connection with the conversion of all preferred stock upon the completion of the Company’s IPO, the Company has never declared or paid dividends and has no plans to do so in the foreseeable future. Accordingly, the dividend yield assumption is based on the expectation that the Company will not pay dividends in the future. Authoritative guidance requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The following table summarizes the Company’s stock option activity during the nine months ended September 30, 2015: Number of Weighted (in thousands, except weighted average exercise price) Outstanding at December 31, 2014 1,232 $ 4.68 Granted 751 10.86 Exercised (215 ) 0.74 Cancelled (forfeited) (115 ) 6.44 Outstanding at September 30, 2015 1,653 $ 7.89 Vested and expected to vest at September 30, 2015 1,548 $ 7.72 Vested and exercisable at September 30, 2015 544 $ 2.99 The Company received approximately $89 thousand and $24 thousand from stock option exercises during the three months ended September 30, 2015 and 2014, respectively, and $160 thousand and $33 thousand during the nine months ended September 30, 2015 and 2014, respectively. Options outstanding at September 30, 2015 have a weighted average remaining contractual term of 8.0 years. As of September 30, 2015, there was approximately $5.0 million of unrecognized compensation cost related to unvested stock option awards and the weighted average period over which this cost is expected to be recognized is 2.9 years.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2015
Income Tax Disclosure [Abstract]
Income Taxes	11. Income Taxes During the three and nine months ended September 30, 2015, the Company recorded an income tax expense of $1 thousand and $41 thousand, respectively, related to alternative minimum taxes. For tax purposes, the Company will recognize all of the $51 million upfront payment from Pfizer as income. The Company will have a deferred tax asset for the difference between the income recognized for book and tax. The future reversal of the deferred revenue will provide for a carryback to 2015 for any amounts recognized for books in 2016 and 2017, estimated to be about $8 million. The future reversal of this temporary difference is a source of income when evaluating the deferred tax asset and valuation allowance. The Company’s taxable income, after net operating losses, is estimated to be $3 million for 2015 and no tax provision, other than alternative minimum tax, will be recorded in 2015 since the taxable income is less than the sources of income related to the reversal of the temporary differences arising in the carryback period. No tax expense is expected in the next several years as the Company continues to generate net operating losses and corresponding valuation allowances due to its investments in its lead product candidates and other pipeline products.

Net Loss per Share of Common St

Net Loss per Share of Common Stock	9 Months Ended
	Sep. 30, 2015
Earnings Per Share [Abstract]
Net Loss per Share of Common Stock	12. Net Loss per Share of Common Stock The following table summarizes the computation of basic and diluted net loss per share: Three Months Ended Nine Months Ended (in thousands, except per share data) 2015 2014 2015 2014 Net loss $(7,590) $(2,495) $(19,545) $(6,220) Weighted-average common shares used to compute basic and diluted net loss per share 23,215 15,319 22,066 5,849 Net loss per common share basic and diluted $(0.33) $(0.16) $(0.89) $(1.06) Basic net loss per share is computed by dividing the net loss by the weighted-average number of common shares outstanding for the period. Diluted net loss per share is computed by dividing the net loss attributable to common stockholders by the weighted-average number of common shares and dilutive common stock equivalents outstanding for the period, determined using the treasury-stock method and the as-if converted method, for convertible securities, if inclusion of these is dilutive. Because the Company has reported a net loss for the three and nine months ended September 30, 2015 and 2014, diluted net loss per common share is the same as basic net loss per common share for those periods. The following potentially dilutive securities outstanding at the end of the periods presented have been excluded from the computation of diluted shares outstanding, as their effect would be anti-dilutive: September 30, (in thousands) 2015 2014 ESPP 35 40 Options to purchase common stock 1,653 1,093

Organization and Summary of S18

Organization and Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Business Activities and Organization	Business Activities and Organization Pfenex Inc. (“Company” or “Pfenex”) was incorporated in the state of Delaware in 2009. The Company is a clinical-stage biotechnology company engaged in the development of biosimilar and generic therapeutics and other high value and difficult-to-manufacture proteins. The Company’s lead product candidate is PF582, a biosimilar candidate to Lucentis (ranibizumab). Lucentis is marketed by Genentech, Inc. a wholly-owned member of the Roche Group and Novartis AG, for the treatment of patients with retinal diseases. The Company is conducting a Phase 1b/2a trial in patients with wet age-related macular degeneration, or wet AMD, with its collaboration partner, Hospira, Inc. (“Hospira”), a subsidiary of Pfizer Inc. (collectively with Hospira, “Pfizer”). Pfizer is responsible for determining the need for and timing of any interim analysis for the Phase 1b/2a trial. The Company expects to commence a comparative clinical study with Pfizer in 2016. Pfizer will be responsible for the manufacturing and commercialization of PF582 globally upon successful receipt of marketing approval. The Company’s next most advanced product candidates are PF530 and PF708. PF530 is a biosimilar candidate to Betaseron (interferon beta-1b), marketed by Bayer AG for the treatment of multiple sclerosis. The pilot Phase 1 study for PF530 was initiated in March 2015. PF708 is a generic candidate to Forteo (teriparatide), marketed by Eli Lilly for the treatment of osteoporosis. PF708 is expected to enter into a bioequivalence study by the end of 2015. In addition to the Company’s three lead product candidates, its pipeline includes four other biosimilar candidates as well as vaccine, generic and next generation biologic candidates. The Company filed the Investigational New Drug (“IND”) application for its recombinant anthrax vaccine at the end of 2014. The Company’s revenue in the near term is primarily related to monetizing its protein production platform through collaboration agreements, service agreements, government contracts and reagent protein product sales which may provide for various types of payments, including upfront payments, funding of research and development, milestone payments, intellectual property access fees and licensing fees.
Reverse Stock Split	Reverse Stock Split On June 27, 2014, the Company effected a 2.812-for-1 reverse stock split of its common and preferred stock. All share and per share information has been retroactively adjusted to reflect this reverse stock split.
Initial Public Offering	Initial Public Offering In July 2014, the Company completed its initial public offering (“IPO”) in which 8,333,333 shares of common stock at a price of $6.00 per share were issued and sold. Additionally, the Company sold 1,095,751 shares of common stock pursuant to the underwriters’ option to purchase additional shares. The Company received aggregate proceeds of approximately $52.6 million from the sale of shares of common stock, net of underwriters’ discounts and commissions, but before deducting paid and unpaid offering expenses of approximately $2.0 million. In connection with the IPO, (i) all shares of the Company’s outstanding convertible preferred stock automatically converted into 8,634,857 shares of common stock, (ii) the Company issued 1,217,784 shares of common stock as payment of all accrued and unpaid dividends through July 28, 2014; (iii) the Company repurchased 423,185 shares of its common stock at a purchase price of $0.31 per share pursuant to the amended and restated subscription agreement, dated May 2, 2014, entered into with certain stockholders, including Signet Healthcare Partners Accredited Partnership III, LP and Signet Healthcare Partners QP Partnership III, LP; and (iv) certain members of the Company’s executive management team forfeited an aggregate of 100,000 shares of common stock.
Follow-on Public Offering	Follow-on Public Offering In April 2015, the Company completed a follow-on public offering pursuant to which it sold 2,610,000 shares of its common stock at a price to the public of $15.50 per share. In addition, certain existing stockholders sold 4,140,000 shares of common stock in the underwritten public offering at the same per-share price. The total proceeds the Company received from the offering were approximately $38.0 million, net of underwriting discounts and commissions of approximately $2.4 million. After deducting estimated offering expenses of approximately $0.6 million, net proceeds to the Company were $37.4 million.
Subsidiary - Pfenex Limited	Subsidiary – Pfenex Limited The UK subsidiary was formed in December 2013 to assist with the Company’s international strategy at that time. In May 2015, the Company initiated the process to dissolve the subsidiary. The dissolution of the subsidiary was finalized in September 2015. Since its incorporation, there has been no activity in the subsidiary and therefore no intercompany relationship requiring inclusion in the accompanying unaudited condensed consolidated financial statements.
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements, which include the Company’s wholly-owned subsidiary, have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”) for interim financial information and with the instructions of the Securities and Exchange Commission (“SEC”) on Form 10-Q and Rule 10-01 of Regulation S-X.
Segments	Segments The Company operates in one segment. Management uses one measurement of profitability and does not segregate its business for internal reporting. All long-lived assets are maintained at the Company’s facility in the United States.
Use of Estimates	Use of Estimates The preparation of the accompanying unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Estimates have been prepared on the basis of the most current and best available information. However, actual results could differ from those estimates.
Cash and Cash Equivalents	Cash and Cash Equivalents The Company considers all highly liquid investments that are readily convertible into cash and have an original maturity of three months or less at the time of purchase to be cash equivalents.
Restricted Cash	Restricted Cash As discussed in Note 6, the Company has a line of credit with Wells Fargo Bank, National Association (“Wells Fargo”) under which the Company may borrow up to $3.9 million. The line of credit is secured by a security interest of first priority in favor of Wells Fargo in all funds deposited into the Company’s money market account held at Wells Fargo. Restrictions on the money market account will be removed when the line of credit is paid in full and has expired. The line of credit expires on July 1, 2018, at which time all outstanding amounts become due and payable.
Concentrations	Concentrations Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash, cash equivalents, investments and accounts and unbilled receivables. The Company has established guidelines intended to limit its exposure to credit risk by placing investments with high credit quality financial institutions, diversifying its investment portfolio and placing investments with maturities that help maintain safety and liquidity. All cash and cash equivalents were held at two major financial institutions as of September 30, 2015 and December 31, 2014. For the Company’s cash position of $119.9 million as of September 30, 2015, which includes restricted cash of $4.0 million, the Company has exposure to credit loss for amounts in excess of insured limits in the event of non-performance by the institutions; however, the Company does not anticipate non-performance. Additional credit risk is related to the Company’s concentration of receivables. As of September 30, 2015 and December 31, 2014, receivables were concentrated among two customers representing 76% and 95% of total net receivables, respectively. For the three month period ended September 30, 2015, revenue was concentrated among two customers, including the Company’s collaborative partner, representing 77% of total revenues and three customers representing 85% for the three months ended September 30, 2014. For the nine month period ended September 30, 2015, revenue was concentrated among four customers, including the Company’s collaborative partner, representing 83% of total revenues and two customers representing 72% for the nine months ended September 30, 2014. There were no supplier concentrations. A portion of revenue is earned from sales outside the United States. Non-U.S. revenue is denominated in U.S. dollars. A breakdown of the Company’s net revenue from U.S. and non-U.S. sources for the three and nine months ended September 30, 2015 and 2014 is as follows: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2015 2014 2015 2014 US Revenue $ 1,939 $ 2,272 $ 5,278 $ 7,432 Non-US Revenue 118 529 1,044 1,193 $ 2,057 $ 2,801 $ 6,322 $ 8,625 During the nine months ended September 30, 2015, revenue earned from non-recurring sales in Japan accounted for 11% of the Company’s revenue. During the three months ended September 30, 2015 and the three and nine months ended September 30, 2014, no single foreign country accounted for more than 10% of the Company’s revenue.
Inventories	Inventories Inventories consist of reagent protein products and are valued at the lower of cost or market. The Company regularly reviews inventories on hand to identify any inventory that has become obsolete or has a cost basis in excess of its expected net realizable value, as well as any inventory quantities in excess of expected requirements. No write-downs were recorded during the nine months ended September 30, 2015 or 2014.
Revenue	Revenue The Company’s revenue is related to the monetization of its protein production platform through collaboration agreements, service agreements, license agreements, government contracts and sales of reagent protein products which may provide for various types of payments, including upfront payments, funding of research and development, milestone payments, intellectual property access fees and licensing fees. The Company’s revenue generating agreements also include potential revenues for achieving milestones and for product royalties. The Company considers a variety of factors in determining the appropriate method of accounting for its collaboration agreements, including whether multiple deliverables can be separated and accounted for individually as separate units of accounting. Where there are multiple deliverables within a collaboration agreement that cannot be separated and therefore are combined into a single unit of accounting, revenues are deferred and recognized using the relevant guidance over the estimated period of performance. If the deliverables can be separated, the Company applies the relevant revenue recognition guidance to each individual deliverable. The specific methodology for the recognition of the underlying revenue is determined on a case-by-case basis according to the facts and circumstances applicable to each agreement. Upfront, non-refundable licensing payments are assessed to determine whether or not the licensee is able to obtain standalone value from the license. Where the license does not have standalone value, non-refundable license fees are recorded as deferred revenue and recognized as revenue as the Company performs under the applicable agreement. Where the level of effort is relatively consistent over the performance period, the Company recognizes fixed or determined revenue on a straight-line basis over the estimated period of performance. Where the license has standalone value, the Company recognizes total license revenue at the time all revenue recognition criteria have been met. Nonrefundable payments for research funding are generally recognized as revenue over the period the underlying research activities are performed. Revenues under service agreements are recorded as services are performed. These agreements do not require scientific achievement as a performance obligation and provide for payment when services are rendered. All such revenue is nonrefundable. Upfront, nonrefundable payments for license fees, exclusivity and feasibility services received in excess of amounts earned are classified as deferred revenue and recognized as income over the contract term or period of performance based on the nature of the related agreement. The Company recognizes revenue for its cost plus fixed fee government contracts in accordance with the authoritative guidance for revenue recognition including the authoritative guidance specific to federal government contractors. Reimbursable costs under its government contracts primarily include direct labor, materials, subcontracts, accountable property and indirect costs. In addition, the Company receives a fixed fee under its government contracts, which is unconditionally earned as allowable costs are incurred and is not contingent on success factors. Reimbursable costs under the Company’s government contracts, including the fixed fee, are generally recognized as revenue in the period the reimbursable costs are incurred and become billable. The Company assesses milestone payments on an individual basis and recognizes revenue from nonrefundable milestone payments when the earnings process is complete and the payment is reasonably assured. Nonrefundable milestone payments related to arrangements under which the Company has continuing performance obligations are recognized as revenue upon achievement of the associated milestone, provided that (i) the milestone event is substantive and its achievability was not reasonably assured at the inception of the agreement and (ii) the amount of the milestone payment is reasonable in relation to the effort expended or the risk associated with the milestone event. Where separate milestone payments do not meet these criteria, the Company recognizes revenue using a contingency-adjusted performance model over the period of performance. For the three and nine months ended September 30, 2015 and 2014, no revenue in connection with the achievement of milestones has been recognized. The Company’s reagent protein products are comprised of internally developed reagent protein products and those purchased from original manufacturers for resale. Revenues for reagent product sales are reflected net of attributable sales tax. The Company generally offers a 30 day return policy. The Company recognizes reagent product revenue from product sales when it is realized or realizable and earned. Revenue is realized or realizable and earned when all of the following criteria are met: (1) persuasive evidence of an arrangement exists, (2) delivery has occurred or services have been rendered, (3) the Company’s price to the buyer is fixed or determinable, and (4) collectability is reasonably assured. Revenue from sales transactions where the buyer has the right to return the product is recognized at the time of sale only if: (1) the Company’s price to the buyer is substantially fixed or determinable at the date of sale, (2) the buyer has paid the Company, or the buyer is obligated to pay the Company and the obligation is not contingent on resale of the product, (3) the buyer’s obligation to the Company would not be changed in the event of theft or physical destruction or damage of the product, (4) the buyer acquiring the product for resale has economic substance apart from that provided by the Company, (5) the Company does not have significant obligations for future performance to directly bring about resale of the product by the buyer, and (6) the amount of future returns can be reasonably estimated. As of September 30, 2015, the Company has had minimal product returns related to reagent protein product sales. However, given the nature of the products, the Company has recorded reserves of $2 thousand and $10 thousand for warranty and return rights at September 30, 2015 and December 31, 2014, respectively. The reserve is a component of accounts and unbilled receivables, net in the accompanying unaudited condensed consolidated balance sheets. Revenue under arrangements where the Company outsources the cost of fulfillment to third parties is evaluated as to whether the related amounts should be recorded gross or net. The Company records amounts collected from the customer as revenue, and the amounts paid to suppliers as cost of revenue when it holds all or substantially all of the risks and benefits related to the product or service. For transactions where the Company does not hold all or substantially all the risk, the Company uses net reporting and therefore records the transaction as if the end-user made a purchase from the supplier with the Company acting as a sales agent.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU), “Revenue from Contracts with Customers,” which outlines a comprehensive revenue recognition model and supersedes most current revenue recognition guidance. The new standard requires a company to recognize revenue upon transfer of goods or services to a customer at an amount that reflects the expected consideration to be received in exchange for those goods or services. The ASU defines a five-step approach for recognizing revenue, which may require a company to use more judgment and make more estimates than under the current guidance. The ASU as currently issued will be effective for the Company starting in 2019. The new standard allows for two methods of adoption: (a) full retrospective adoption, meaning the standard is applied to all periods presented, or (b) modified retrospective adoption, meaning the cumulative effect of applying the new standard is recognized as an adjustment to the opening retained earnings balance. The Company is in the process of determining the adoption method as well as the effects the adoption will have on its condensed consolidated financial statements.
Fair Value Measurements	Authoritative guidance defines fair value, establishes a framework for measuring fair value in U.S. GAAP and requires disclosures about fair value measurements. Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, a three-tier fair value hierarchy has been established, which prioritizes the inputs used in measuring fair value as follows: Level 1 Observable inputs such as quoted prices in active markets for identical assets or liabilities. Level 1 assets at September 30, 2015 and December 31, 2014 included the Company’s cash, cash equivalents and investments in certificates of deposit. There were no Level 1 liabilities; Level 2 Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly. The Company had no Level 2 assets or liabilities at September 30, 2015 or December 31, 2014; and Level 3 Unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of assets or liabilities in which there is little or no market data. The Company had no Level 3 assets or liabilities at September 30, 2015 or December 31, 2014.

Organization and Summary of S19

Organization and Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Summary of Sales Revenue	A breakdown of the Company’s net revenue from U.S. and non-U.S. sources for the three and nine months ended September 30, 2015 and 2014 is as follows: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2015 2014 2015 2014 US Revenue $ 1,939 $ 2,272 $ 5,278 $ 7,432 Non-US Revenue 118 529 1,044 1,193 $ 2,057 $ 2,801 $ 6,322 $ 8,625

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2015
Fair Value Disclosures [Abstract]
Schedule of Assets Measured at Fair Value on Recurring Basis	The following table presents the Company’s assets that are measured at fair value on a recurring basis as of September 30, 2015 and December 31, 2014: (in thousands) Total Fair Value Measurements at Reporting Date Using Quoted Prices Significant Significant September 30, 2015 Cash and money market funds $ 119,882 $ 119,882 $ — $ — Total assets measured at fair value $ 119,882 $ 119,882 $ — $ — December 31, 2014 Cash and money market funds $ 49,677 $ 49,677 $ — $ — Total assets measured at fair value $ 49,677 $ 49,677 $ — $ —

Property and Equipment (Tables)

Property and Equipment (Tables)	9 Months Ended
	Sep. 30, 2015
Property, Plant and Equipment [Abstract]
Summary of Property and Equipment	Property and equipment consisted of the following: (in thousands) September 30, December 31, Furniture and equipment $ 173 $ 157 Computers and IT equipment 251 190 Purchased software 728 686 Lab and research equipment 3,253 2,837 Leasehold improvements 450 348 Construction in progress 417 — Other fixed assets 64 35 Total property and equipment, gross 5,336 4,253 Less: accumulated depreciation and amortization (2,260 ) (1,943 ) Total property and equipment, net $ 3,076 $ 2,310 Total depreciation and amortization expense was included in selling, general and administrative expenses and research and development in the accompanying condensed consolidated statements of operations as follows: Three Months Ended Nine Months Ended (in thousands) 2015 2014 2015 2014 Selling, general and administrative $ 65 $ 97 $ 194 $ 288 Research and development 74 19 200 60 Total depreciation and amortization expense $ 139 $ 116 $ 394 $ 348

Intangible Assets (Tables)

Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Summary of Intangible Assets	Intangible assets consisted of the following: (in thousands) September 30, December 31, Customer relationships $ 3,750 $ 3,750 Developed technology 4,400 4,400 Trade names 910 910 Gross intangible assets 9,060 9,060 Less: Accumulated amortization (3,095 ) (2,697 ) Total intangible assets, net $ 5,965 $ 6,363

Accrued Liabilities (Tables)

Accrued Liabilities (Tables)	9 Months Ended
	Sep. 30, 2015
Payables and Accruals [Abstract]
Components of Accrued Liabilities	Accrued liabilities consisted of the following: (in thousands) September 30, December 31, Accrued vacation $ 400 $ 379 Deferred rent 374 247 Accrued bonuses 880 913 Other accrued employee-related liabilities 223 125 Accrued professional fees 316 221 Accrued supplier liability 33 198 Accrued subcontractor costs 2,699 292 Other accrued liabilities 406 258 $ 5,331 $ 2,633

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	Sep. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
Schedule of Contractual Obligations	The following table summarizes our contractual obligations as of September 30, 2015 for the remainder of fiscal 2015 and future fiscal years: Payment Amounts Operating Capital Leases Interest on Long-Term Line of Credit Total (in thousands) 2015 $ 153 $ 12 $ 22 $ — $ 187 2016 623 47 90 — 760 2017 639 47 90 — 776 2018 573 — 45 3,813 4,431 2019 590 — — — 590 Thereafter 2,631 — — — 2,631 Total $ 5,209 $ 106 $ 247 $ 3,813 $ 9,375

Common Stock and Preferred St25

Common Stock and Preferred Stock (Tables)	9 Months Ended
	Sep. 30, 2015
Equity [Abstract]
Summary of Cumulative Dividends	All of the Company’s outstanding preferred stock was converted to common stock on July 28, 2014, at which time no dividends had been declared or paid. Cumulative dividends were as follows: Cumulative as of July 28, 2014 (in thousands, except dividends per share) Dividends Dividends Series A-2 $ 4,457 $ 1.25 Series A-1 2,850 $ 0.57 $ 7,307

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Summary of Stock-Based Compensation Expense	The following table summarizes stock-based compensation expense: Three Months Ended Nine Months Ended (in thousands) 2015 2014 2015 2014 Cost of revenues $ 19 $ 23 $ 62 $ 44 Research and development 115 20 247 37 Selling, general and administrative 343 64 912 110 Total $ 477 $ 107 $ 1,221 $ 191 Stock-based compensation from: Stock options $ 461 $ 107 $ 1,160 $ 191 Employee stock purchase plan 16 — 61 — Total $ 477 $ 107 $ 1,221 $ 191
Assumptions used to Estimate Fair Value of Employee Stock Purchase Plan	The fair value of the employees’ stock purchase rights granted under the ESPP was estimated using the Black-Scholes option pricing model with the following assumptions: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Risk-free interest rate Less than 1% N/A Less than 1% N/A Expected term of options (months) 6 - 24 N/A 6 - 24 N/A Expected volatility 29.2% - 41.0% N/A 29.2% - 44.8% N/A Dividend yield 0% N/A 0% N/A
Assumptions used to Estimate Fair Value of Stock Options	The following assumptions were used to estimate the fair value of stock options: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Risk-free interest rate 1.6% - 1.7% 2.0% 1.3% - 1.9% 1.9% - 2.0% Expected volatility 49.8% - 66.2% 53.0% 50.2% - 66.2% 48.7% - 53.5% Expected dividend yield 0.0% 0.0% 0.0% 0.0% Expected life of options in years 5.3 – 6.3 6.0 – 6.1 5.3 – 6.3 5.5 – 6.1
Summary of Stock Option Activity	The following table summarizes the Company’s stock option activity during the nine months ended September 30, 2015: Number of Weighted (in thousands, except weighted average exercise price) Outstanding at December 31, 2014 1,232 $ 4.68 Granted 751 10.86 Exercised (215 ) 0.74 Cancelled (forfeited) (115 ) 6.44 Outstanding at September 30, 2015 1,653 $ 7.89 Vested and expected to vest at September 30, 2015 1,548 $ 7.72 Vested and exercisable at September 30, 2015 544 $ 2.99

Net Loss per Share of Common 27

Net Loss per Share of Common Stock (Tables)	9 Months Ended
	Sep. 30, 2015
Earnings Per Share [Abstract]
Computation of Basic and Diluted Net Loss Per Share	The following table summarizes the computation of basic and diluted net loss per share: Three Months Ended Nine Months Ended (in thousands, except per share data) 2015 2014 2015 2014 Net loss $(7,590) $(2,495) $(19,545) $(6,220) Weighted-average common shares used to compute basic and diluted net loss per share 23,215 15,319 22,066 5,849 Net loss per common share basic and diluted $(0.33) $(0.16) $(0.89) $(1.06)
Summary of Potentially Dilutive Securities Outstanding Excluded From Computation of Diluted Shares Outstanding	The following potentially dilutive securities outstanding at the end of the periods presented have been excluded from the computation of diluted shares outstanding, as their effect would be anti-dilutive: September 30, (in thousands) 2015 2014 ESPP 35 40 Options to purchase common stock 1,653 1,093

Organization and Summary of S28

Organization and Summary of Significant Accounting Policies - Additional Information (Detail)	Jun. 27, 2014	Apr. 30, 2015USD ($)$ / sharesshares	Jul. 31, 2014USD ($)$ / sharesshares	Sep. 30, 2015USD ($)CustomerCountryshares	Sep. 30, 2014USD ($)CustomerCountry	Sep. 30, 2015USD ($)CustomerSegmentsshares	Sep. 30, 2014USD ($)CustomerCountry	Dec. 31, 2014USD ($)Customershares
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Reverse stock split ratio	0.3556
Common stock, shares issued | shares				23,254,132		23,254,132		20,405,066
Proceeds from issuance initial public offering							$ 50,641,000
Proceeds from follow-on public offering of common stock						$ 37,342,000
Number of operating segments | Segments						1
Cash and cash equivalents original maturity, description						Three months or less
Restricted cash, Included in Cash position				$ 3,958,000		$ 3,958,000		$ 3,955,000
Inventory write downs						0	0
Revenue recognized				0	$ 0	$ 0	$ 0
Product return policy period						30 days
Reagent Protein Product [Member]
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Warranty reserve accrual				2,000		$ 2,000		$ 10,000
Credit Availability Concentration Risk [Member]
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Cash				119,900,000		119,900,000
Restricted cash, Included in Cash position				$ 4,000,000		$ 4,000,000
Customer Concentration Risk [Member]
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Number of customers accounted for receivables | Customer				2		2		2
Customer Concentration Risk [Member] | Sales Revenue, Net [Member]
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Number of customers accounted for revenue | Customer				2	3	4	2
Concentration of risk percentage				77.00%	85.00%	83.00%	72.00%
Customer Concentration Risk [Member] | Accounts Receivable [Member]
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Concentration of risk percentage						76.00%		95.00%
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | Foreign Country [Member]
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Number of foreign countries accounting for more than 10% of revenue | Country				0	0		0
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | Japan [Member]
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Concentration of risk percentage						11.00%
Geographic Concentration Risk [Member] | Maximum [Member] | Sales Revenue, Net [Member] | Foreign Country [Member]
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Concentration of risk percentage				10.00%	10.00%		10.00%
Initial Public Offering [Member]
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Common stock, shares issued | shares			8,333,333
Common stock price, per share | $ / shares			$ 6
Proceeds from issuance initial public offering			$ 52,600,000
Offering expense			$ 2,000,000
Common stock repurchased | shares			423,185
Common stock purchase price | $ / shares			$ 0.31
Number of shares forfeited | shares			100,000
Initial Public Offering [Member] | Redeemable Preferred to Common Stock [Member]
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Convertible preferred stock shares converted to common stock | shares			8,634,857
Initial Public Offering [Member] | Redeemable Convertible Preferred Stock [Member]
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Common stock issued in connection with payment of dividends | shares			1,217,784
Underwriters' Option [Member]
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Issuance of stock (in shares) | shares		4,140,000	1,095,751
Follow On Public Offering [Member]
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Common stock, shares issued | shares		2,610,000
Common stock price, per share | $ / shares		$ 15.50
Offering expense		$ 600,000
Proceeds from follow-on public offering of common stock		38,000,000
Underwriting discounts and commissions		2,400,000
Net Proceeds from issuance initial public offering		$ 37,400,000
Wells Fargo 2012 LOC [Member]
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Line of credit facility, Maximum borrowing capacity				$ 3,900,000		$ 3,900,000
Amended and Restated Credit Agreement [Member]
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Line of credit, extended maturity date						Jul. 1, 2018

Organization and Summary of S29

Organization and Summary of Significant Accounting Policies - Summary of Sales Revenue (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Concentration Risk [Line Items]
Revenue	$ 2,057	$ 2,801	$ 6,322	$ 8,625
Geographic Concentration Risk [Member]
Concentration Risk [Line Items]
Revenue	2,057	2,801	6,322	8,625
Geographic Concentration Risk [Member] | US [Member]
Concentration Risk [Line Items]
Revenue	1,939	2,272	5,278	7,432
Geographic Concentration Risk [Member] | Non - US [Member]
Concentration Risk [Line Items]
Revenue	$ 118	$ 529	$ 1,044	$ 1,193

Fair Value Measurements - Sched

Fair Value Measurements - Schedule of Assets Measured at Fair Value on Recurring Basis (Detail) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and money market funds	$ 119,882	$ 49,677
Total assets measured at fair value	119,882	49,677
Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and money market funds	119,882	49,677
Total assets measured at fair value	$ 119,882	$ 49,677

Property and Equipment - Summar

Property and Equipment - Summary of Property and Equipment (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	$ 5,336	$ 4,253
Less: accumulated depreciation and amortization	(2,260)	(1,943)
Total property and equipment, net	3,076	2,310
Furniture and Equipment [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	173	157
Computer Equipment [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	251	190
Purchased Software [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	728	686
Lab and Research Equipment [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	3,253	2,837
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	450	348
Construction in Progress [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	417
Other Fixed Assets [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	$ 64	$ 35

Property and Equipment - Deprec

Property and Equipment - Depreciation and Amortization Expense (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Property, Plant and Equipment [Line Items]
Total depreciation and amortization expense	$ 139	$ 116	$ 394	$ 348
Selling, General and Administrative [Member]
Property, Plant and Equipment [Line Items]
Total depreciation and amortization expense	65	97	194	288
Research and Development [Member]
Property, Plant and Equipment [Line Items]
Total depreciation and amortization expense	$ 74	$ 19	$ 200	$ 60

Intangible Assets - Summary of

Intangible Assets - Summary of Intangible Assets (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items]
Gross intangible assets	$ 9,060	$ 9,060
Less: Accumulated amortization	(3,095)	(2,697)
Total intangible assets, net	5,965	6,363
Trade Names [Member]
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items]
Gross intangible assets	910	910
Customer Relationships [Member]
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items]
Gross intangible assets	3,750	3,750
Developed Technology [Member]
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items]
Gross intangible assets	$ 4,400	$ 4,400

Intangible Assets - Additional

Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Finite-Lived Intangible Assets [Line Items]
Amortization of intangible assets			$ 398	$ 398
Estimated amortization expense of intangible assets	$ 500		500
Selling, General and Administrative [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization of intangible assets	$ 100	$ 100	$ 400	$ 400

Accrued Liabilities - Component

Accrued Liabilities - Components of Accrued Liabilities (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Other Liabilities Disclosure [Abstract]
Accrued vacation	$ 400	$ 379
Deferred rent	374	247
Accrued bonuses	880	913
Other accrued employee-related liabilities	223	125
Accrued professional fees	316	221
Accrued supplier liability	33	198
Accrued subcontractor costs	2,699	292
Other accrued liabilities	406	258
Total accrued liabilities	$ 5,331	$ 2,633

Line of Credit Obligation - Add

Line of Credit Obligation - Additional Information (Detail) - USD ($)	Jul. 01, 2015	Mar. 31, 2015	Jan. 31, 2015	Jun. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Line of Credit Facility [Line Items]
Line of credit total outstanding amount									$ 3,813,000
Maximum [Member]
Line of Credit Facility [Line Items]
Line of credit covenant, operating lease expenses allowed to be incurred		$ 900,000	$ 900,000	$ 600,000
Revolving Line of Credit [Member]
Line of Credit Facility [Line Items]
Line of credit facility, Maximum borrowing capacity					$ 3,900,000		$ 3,900,000
Line of credit covenant description							In June 2014, January 2015 and March 2015, the LOCs were amended which allowed the Company to make additional investments in fixed assets; incur operating lease expenses in any fiscal year up to $0.6 million and then $0.9 million; declare or pay any dividend or distribution either in cash, stock or any other property, or redeem, retire, repurchase or otherwise acquire any shares of any class of its stock in connection with the Company’s IPO; and extended the maturity date on both lines of credit to July 2015.
Line of credit, extended maturity date							Jul. 2, 2015
Amended Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Interest expense					22,000	$ 22,000	$ 67,000	$ 63,000
Wells Fargo 2012 LOC [Member]
Line of Credit Facility [Line Items]
Line of credit facility, Maximum borrowing capacity					3,900,000		3,900,000
Wells Fargo 2013 LOC [Member]
Line of Credit Facility [Line Items]
Line of credit facility, Maximum borrowing capacity					2,400,000		$ 2,400,000
Amended and Restated Credit Agreement [Member]
Line of Credit Facility [Line Items]
Line of credit, extended maturity date							Jul. 1, 2018
Line of credit facility, description of interest rate							Amounts outstanding under the Amended Credit Facility bear interest at a rate equal to, at the Company's option, (i) a fluctuating rate per annum equal to 2.25% above the overnight LIBOR Rate or (ii) a fixed rate per annum determined by Wells Fargo to be 2.00% above the LIBOR Rate in effect on the first day of each LIBOR Period.
Amended and Restated Credit Agreement [Member] | London Interbank Offered Rate (LIBOR) [Member]
Line of Credit Facility [Line Items]
Line of credit facility, basis spread	2.25%
Line of credit facility, fixed interest rate	2.00%
Amended and Restated Credit Agreement [Member] | Revolving Line of Credit [Member]
Line of Credit Facility [Line Items]
Line of credit facility, Maximum borrowing capacity	$ 3,900,000
Line of credit total outstanding amount					$ 3,800,000		$ 3,800,000
Line of credit bearing a fixed interest rate					2.31%		2.31%

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail)	1 Months Ended		3 Months Ended	9 Months Ended
	Sep. 30, 2014USD ($)ft²	Jun. 30, 2010	Sep. 30, 2015USD ($)	Sep. 30, 2015USD ($)	Mar. 31, 2015USD ($)	Feb. 28, 2015USD ($)
Contingencies And Commitments [Line Items]
Initial term of lease		10 years
Lease commencement date				2011-04
Description of lease agreement terms				Under the terms of the Lease, the Company pays annual base rent, subject to an annual fixed percentage increase, plus its share of common operating expenses.
Annual base rent abatement percentage				50.00%
Extend term of lease				Lease to extend the term for an additional three years through March 31, 2024
Lease additional facilities | ft²	7,315
Increase in estimated rent payments over life of lease	$ 2,900,000
Additional term of lease agreement	3 years
Operating lease expiration date				Mar. 31, 2024
Office And Lab Equipment [Member]
Contingencies And Commitments [Line Items]
Operating and capital lease expiration dates				Various dates through December 2019.
New Space [Member]
Contingencies And Commitments [Line Items]
Increase in estimated rent payments over life of lease	$ 1,500,000
Existing Space [Member]
Contingencies And Commitments [Line Items]
Increase in estimated rent payments over life of lease	$ 1,400,000
Collaborative Arrangement, Product PF582 [Member]
Contingencies And Commitments [Line Items]
Patent lives expiration year				2,028
License revenue recognized			$ 900,000	$ 2,000,000
Collaborative Arrangement, Product PF582 [Member] | Maximum [Member]
Contingencies And Commitments [Line Items]
Eligible one time payment receivable under collaboration agreements						$ 342,000,000
Milestone payments receivable						$ 291,000,000
Collaborative Arrangement, Product PF582 [Member] | Up-front Payment Arrangement [Member]
Contingencies And Commitments [Line Items]
Non-refundable upfront payment received					$ 51,000,000

Commitments and Contingencies38

Commitments and Contingencies - Schedule of Contractual Obligations (Detail) $ in Thousands	Sep. 30, 2015USD ($)
Contractual Obligation Fiscal Year Maturity [Line Items]
Operating Leases, 2015	$ 153
Operating Leases, 2016	623
Operating Leases, 2017	639
Operating Leases, 2018	573
Operating Leases, 2019	590
Operating Leases, Thereafter	2,631
Operating Leases, Total	5,209
Capital Leases, 2015	12
Capital Leases, 2016	47
Capital Leases, 2017	47
Capital Leases, 2018	0
Capital Leases, 2019	0
Capital Leases, Thereafter	0
Capital Leases,Total	106
Interest on Long-Term Debt, 2015	22
Interest on Long-Term Debt, 2016	90
Interest on Long-Term Debt, 2017	90
Interest on Long-Term Debt, 2018	45
Interest on Long-Term Debt, 2019	0
Interest on Long-Term Debt, Thereafter	0
Interest on Long-Term Debt, Total	247
Total contractual obligation, 2015	187
Total contractual obligation, 2016	760
Total contractual obligation, 2017	776
Total contractual obligation, 2018	4,431
Total contractual obligation, 2019	590
Total contractual obligation, Thereafter	2,631
Total contractual obligation	9,375
Line of Credit [Member]
Contractual Obligation Fiscal Year Maturity [Line Items]
Line of Credit, 2015	0
Line of Credit, 2016	0
Line of Credit, 2017	0
Line of Credit, 2018	3,813
Line of Credit, 2019	0
Line of Credit, Thereafter	0
Line of Credit, Total	$ 3,813

Common Stock and Preferred St39

Common Stock and Preferred Stock - Additional Information (Detail)	Jul. 28, 2014USD ($)	Jul. 31, 2014$ / sharesshares	Sep. 30, 2015Voteshares	Dec. 31, 2014shares
Class of Stock [Line Items]
Votes entitled for every common stock | Vote			1
Preferred stock, shares authorized			10,000,000	10,000,000
Dividend declared or paid | $	$ 0
Initial Public Offering [Member]
Class of Stock [Line Items]
Common stock purchase price | $ / shares		$ 0.31
Common stock repurchased		423,185
Number of shares forfeited		100,000
Initial Public Offering [Member] | Redeemable Preferred to Common Stock [Member]
Class of Stock [Line Items]
Convertible preferred stock shares converted to common stock		8,634,857
Preferred Stock Series A-1 [Member]
Class of Stock [Line Items]
Preferred stock dividend rate, cumulative percentage			4.00%
Preferred stock conversion ratio for each share			0.91966
Preferred Stock Series A-2 [Member]
Class of Stock [Line Items]
Preferred stock dividend rate, cumulative percentage			8.00%
Preferred stock conversion ratio for each share			1.1406
Redeemable Convertible Preferred Stock [Member] | Initial Public Offering [Member]
Class of Stock [Line Items]
Common stock issued in connection with payment of dividends		1,217,784

Common Stock and Preferred St40

Common Stock and Preferred Stock - Summary of Cumulative Dividends (Detail) $ / shares in Units, $ in Thousands	Jul. 28, 2014USD ($)$ / shares
Dividends Payable [Line Items]
Dividends	$ 7,307
Preferred Stock Series A-2 [Member]
Dividends Payable [Line Items]
Dividends	$ 4,457
Dividends per Share | $ / shares	$ 1.25
Preferred Stock Series A-1 [Member]
Dividends Payable [Line Items]
Dividends	$ 2,850
Dividends per Share | $ / shares	$ 0.57

Repurchase of Common Stock - Ad

Repurchase of Common Stock - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	9 Months Ended
	Jul. 31, 2014	Sep. 30, 2014	Dec. 01, 2009
Equity, Class of Treasury Stock [Line Items]
Total cost of repurchase		$ 131
Common Stock [Member]
Equity, Class of Treasury Stock [Line Items]
Common stock purchase price	$ 0.31
Common stock repurchased	423,185
Total cost of repurchase	$ 131
Common Stock [Member] | Maximum [Member]
Equity, Class of Treasury Stock [Line Items]
Number of shares authorized to be repurchased			423,185
Common stock price, per share			$ 0.31

Stock-Based Compensation - Summ

Stock-Based Compensation - Summary of Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	$ 477	$ 107	$ 1,221	$ 191
Cost of Revenues [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	19	23	62	44
Research and Development [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	115	20	247	37
Selling, General and Administrative [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	343	64	912	110
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	461	$ 107	1,160	$ 191
Employee Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	$ 16		$ 61

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Detail) - USD ($)	1 Months Ended		3 Months Ended		9 Months Ended
	Jan. 31, 2015	Jul. 31, 2014	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of options, granted					751,000
Shares reserved for issuance							355,618
Outstanding options			1,653,000		1,653,000		1,232,000
Share based plan ten years date of grant					Annual increase on the first day of each fiscal year beginning in 2015 and ending with and including the 2018 fiscal year, equal to the least of (i) 1,356,219 shares; (ii) 2.5% of the outstanding shares of common stock as of the last day of the immediately preceding fiscal year; or (iii) such other amount as the board of directors may determine.
Annually shares increase percent		2.50%
Option share,forfeited					115,000
Shares annual increase terms under ESPP					Annual increases in the number of shares available for sale under the ESPP on the first day of each fiscal year beginning in 2015, equal to the least of (i) 355,618 shares; (ii) 1.5% of the outstanding shares of the common stock on the last day of the immediately preceding fiscal year; or (iii) such other amount as may be determined by the administrator.
Annually shares increase percent under ESPP		1.50%
Stock based compensation expense			$ 477,000	$ 107,000	$ 1,221,000	$ 191,000
Proceeds from exercise of stock options			89,000	24,000	160,000	33,000
Unrecognized compensation cost related to unvested stock options			$ 5,000,000		$ 5,000,000
Unrecognized compensation cost related to unvested stock options, weighted average period for recognition					2 years 10 months 24 days
2014 Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of options, granted					751,065
Shares reserved for issuance		1,356,219	885,293		885,293
Share based plan ten years date of grant					Stock options granted to date under the 2009 Plan and the 2014 Plan have a term of ten years from the date of grant
Option share,forfeited					98,483
Increase (decrease) in shares reserved for issuance	510,126
2009 Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of options, granted					0
Shares reserved for issuance			1,100,000		1,100,000
Outstanding options			700,000		700,000
Share-based compensation arrangement by share-based payment award, award vesting period					4 years
2009 and 2014 Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average remaining contractual term					10 years
2014 Employee Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Increase (decrease) in shares reserved for issuance	306,075
Share based awards description					The ESPP provides eligible employees of the Company with an opportunity to acquire shares of its common stock at a discount. The ESPP permits eligible employees to purchase shares of common stock during consecutive and overlapping 24-month offering periods beginning on the first trading day on or after February 15 and August 15 of each year ("Offering Periods"), unless adjusted by the board of directors or one of its designated committees.
Maximum fair market value of condition					$ 25,000
Maximum shares employee can purchase			15.00%		15.00%
Maximum number of common stock purchased in semi annual periods					700
Percentage on market value of common stock					85.00%
Shares available for sale			637,383		637,383
Shares purchased under ESPP					24,310
Proceeds from issuance of shares under ESPP					$ 140,000
Stock based compensation expense			$ 0	0	$ 16,000	$ 61,000
Incentive Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average remaining contractual term					5 years
Percentage of voting power					10.00%
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average remaining contractual term						8 years
Stock based compensation expense			$ 461,000	$ 107,000	$ 1,160,000	$ 191,000
Maximum [Member] | Scenario, May be added to the 2014 Plan [Member] | 2009 Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum number of previously granted shares that can be added					961,755

Stock-Based Compensation - Assu

Stock-Based Compensation - Assumptions used to Estimate Fair Value of Stock Options (Detail)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest rate		2.00%
Risk-free interest rate, minimum	1.60%		1.30%	1.90%
Risk-free interest rate, maximum	1.70%		1.90%	2.00%
Expected volatility		53.00%
Expected volatility, minimum	49.80%		50.20%	48.70%
Expected volatility, maximum	66.20%		66.20%	53.50%
Dividend yield	0.00%	0.00%	0.00%	0.00%
2014 Employee Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest rate, maximum	1.00%		1.00%
Expected volatility, minimum	29.20%		29.20%
Expected volatility, maximum	41.00%		44.80%
Dividend yield	0.00%		0.00%
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected life of options	5 years 3 months 18 days	6 years	5 years 3 months 18 days	5 years 6 months
Minimum [Member] | 2014 Employee Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected life of options	6 months		6 months
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected life of options	6 years 3 months 18 days	6 years 1 month 6 days	6 years 3 months 18 days	6 years 1 month 6 days
Maximum [Member] | 2014 Employee Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected life of options	24 months		24 months

Stock-Based Compensation - Su45

Stock-Based Compensation - Summary of Stock Option Activity (Detail) shares in Thousands	9 Months Ended
	Sep. 30, 2015$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Number of Options, beginning balance	1,232
Number of options, granted	751
Number of Options, Exercised	(215)
Number of Options, Cancelled (forfeited)	(115)
Number of Options, ending balance	1,653
Number of Options, Vested and expected to vest at September 30, 2015	1,548
Number of Options, Vested and exercisable at September 30, 2015	544
Weighted Average Exercise Price, Outstanding, beginning balance | $ / shares	$ 4.68
Weighted Average Exercise Price, Granted | $ / shares	10.86
Weighted Average Exercise Price, Exercised | $ / shares	0.74
Weighted Average Exercise Price, Cancelled (forfeited) | $ / shares	6.44
Weighted Average Exercise Price, Outstanding, ending balance | $ / shares	7.89
Weighted Average Exercise Price, Vested and expected to vest at September 30, 2015 | $ / shares	7.72
Weighted Average Exercise Price, Vested and exercisable at September 30, 2015 | $ / shares	$ 2.99

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($)	3 Months Ended	9 Months Ended		12 Months Ended
	Sep. 30, 2015	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2015
Income Tax Contingency [Line Items]
Income tax expense	$ 1,000	$ 41,000	$ 1,000
Upfront payment for tax purposes		51,000,000
Future reversal of deferred revenue	$ 8,000,000	$ 8,000,000
Expected Tax Expenses [Member]
Income Tax Contingency [Line Items]
Income tax expense				$ 0
Estimated taxable income after net operating losses				$ 3,000,000

Net Loss Per Share of Common 47

Net Loss Per Share of Common Stock - Computation of Basic and Diluted Net Loss Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Earnings Per Share [Abstract]
Net loss	$ (7,590)	$ (2,495)	$ (19,545)	$ (6,220)
Weighted-average common shares used to compute basic and diluted net loss per share	23,215	15,319	22,066	5,849
Net loss per common share basic and diluted	$ (0.33)	$ (0.16)	$ (0.89)	$ (1.06)

Net Loss Per Share of Common 48

Net Loss Per Share of Common Stock - Summary of Potentially Dilutive Securities Outstanding Excluded From Computation of Diluted Shares Outstanding (Detail) - shares shares in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Employee Stock Purchase Plan [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive securities outstanding excluded from computation of diluted shares outstanding	35	40
Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive securities outstanding excluded from computation of diluted shares outstanding	1,653	1,093