Pfenex (PFNX) 10-Q 7 Nov 19 2019 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2019	Nov. 01, 2019
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3
Entity Registrant Name	Pfenex Inc.
Entity Central Index Key	0001478121
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Small Business	true
Entity Common Stock, Shares Outstanding		31,675,903
Entity Interactive Data Current	Yes
Entity Current Reporting Status	Yes
Entity Shell Company	false
Entity File Number	001-36540
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	27-1356759
Entity Address, Address Line One	10790 Roselle Street
Entity Address, City or Town	San Diego
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	92121
City Area Code	858
Local Phone Number	352-4400
Document Quarterly Report	true
Document Transition Report	false
Title of 12(b) Security	Common Stock, par value $0.001 per share
Trading Symbol	PFNX
Security Exchange Name	NYSEAMER

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Current assets
Cash and cash equivalents	$ 32,518	$ 56,220
Restricted cash	200	200
Accounts and unbilled receivables, net	16,215	5,171
Income tax receivable	53	207
Other current assets	2,357	1,851
Total current assets	51,343	63,649
Property and equipment, net	8,374	7,671
Other long-term assets	170	133
Intangible assets, net	3,859	4,248
Goodwill	5,577	5,577
Total assets	69,323	81,278
Current liabilities
Accounts payable	2,233	2,005
Accrued liabilities	8,352	9,812
Current portion of deferred revenue	105	5,317
Current portion of capital lease obligations	269	316
Total current liabilities	10,959	17,450
Deferred revenue, less current portion	2,500	2,500
Capital lease obligations, less current portion	29	191
Total liabilities	13,488	20,141
Commitments and contingencies
Stockholders’ equity
Preferred stock, $0.001 par value, 10,000,000 shares authorized; no shares issued and outstanding	0	0
Common stock, par value $0.001, 200,000,000 shares authorized; 31,622,914 and 31,467,580 shares issued and outstanding at September 30, 2019 and December 31, 2018, respectively	32	32
Additional paid-in capital	265,311	262,405
Accumulated deficit	(209,508)	(201,300)
Total stockholders’ equity	55,835	61,137
Total liabilities and stockholders’ equity	$ 69,323	$ 81,278

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2019	Dec. 31, 2018
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	31,622,914	31,467,580
Common stock, outstanding	31,622,914	31,467,580

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Revenue
Total revenue	$ 15,248	$ 3,570	$ 28,421	$ 11,506
Cost of revenue	1,143	1,479	3,837	3,923
Gross profit	14,105	2,091	24,584	7,583
Operating expense
Research and development	6,931	9,045	19,691	28,590
Selling, general and administrative	4,147	3,823	13,296	11,920
Total operating expense	11,078	12,868	32,987	40,510
Net income (loss) from operations	3,027	(10,777)	(8,403)	(32,927)
Other income, net	55	115	195	157
Net income (loss)	$ 3,082	$ (10,662)	$ (8,208)	$ (32,770)
Net income (loss) per common share:
Basic	$ 0.10	$ (0.34)	$ (0.26)	$ (1.20)
Diluted	$ 0.09	$ (0.34)	$ (0.26)	$ (1.20)
Weighted-average common shares used in calculating net income (loss) per share:
Basic	31,595	31,437	31,534	27,288
Diluted	32,498	31,437	31,534	27,288
License
Revenue
Total revenue	$ 11,562	$ 1,874	$ 20,430	$ 6,869
Service
Revenue
Total revenue	733	1,339	3,155	3,821
Product
Revenue
Total revenue	$ 2,953	$ 357	$ 4,836	$ 816

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Cash flows from operating activities
Net loss	$ (8,208)	$ (32,770)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation and amortization	968	849
Amortization of intangible assets	389	400
Stock-based compensation expense	2,381	2,551
Loss on disposal of property and equipment		8
Changes in operating assets and liabilities
Accounts and unbilled receivables	(11,044)	(439)
Other assets	(596)	(268)
Accounts payable	100	(560)
Accrued liabilities	(1,887)	2,031
Deferred revenue	(5,212)	(522)
Income tax receivable	207	432
Net cash used in operating activities	(22,902)	(28,288)
Cash flows from investing activities
Acquisitions of property and equipment	(1,076)	(1,010)
Purchase of intangible asset		(10)
Net cash used in investing activities	(1,076)	(1,020)
Cash flows from financing activities
Proceeds from issuance of common stock		39,522
Repayments of capital lease obligations	(249)	(212)
Proceeds from exercise of stock options and other stock issuances	525	197
Payment for taxes related to net share settlement of equity award	0	(38)
Net cash provided by financing activities	276	39,469
Net (decrease) increase in cash, cash equivalents and restricted cash	(23,702)	10,161
Cash, cash equivalents and restricted cash
Beginning of period	56,420	57,864
End of period	32,718	68,025
Supplemental disclosures of non-cash investing and financing activities
Asset acquisitions in accounts payable and accrued expenses	747	92
Acquisitions under capital lease obligations	0	154
Restricted stock issuance for bonus accrual	0	56
Supplemental schedule of cash flow information
Cash paid for interest	18	36
Cash paid for taxes	$ 1	$ 48

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock [Member]	Additional Paid in Capital [Member]	Accumulated Deficit [Member]
Beginning Balance at Dec. 31, 2017	$ 57,763	$ 24	$ 219,446	$ (161,707)
Beginning Balance, Shares at Dec. 31, 2017		23,548,000
Restricted stock units, value	57		57
Restricted stock units, shares		17,000
Issuance of common stock under employee stock purchase plan	55		55
Issuance of common stock under employee stock purchase plan, shares		19,000
Stock-based compensation expense	909		909
Net income (loss)	(11,027)			(11,027)
Ending Balance at Mar. 31, 2018	47,757	$ 24	220,467	(172,734)
Ending Balance, Shares at Mar. 31, 2018		23,584,000
Beginning Balance at Dec. 31, 2017	57,763	$ 24	219,446	(161,707)
Beginning Balance, Shares at Dec. 31, 2017		23,548,000
Net income (loss)	(32,770)
Ending Balance at Sep. 30, 2018	67,319	$ 32	261,764	(194,477)
Ending Balance, Shares at Sep. 30, 2018		31,461,000
Beginning Balance at Mar. 31, 2018	47,757	$ 24	220,467	(172,734)
Beginning Balance, Shares at Mar. 31, 2018		23,584,000
Issuance of common stock, net of offering costs	39,522	$ 8	39,514
Issuance of common stock, net of offering costs, shares		7,820,000
Exercise of stock options	14		14
Exercise of stock options, shares		17,000
Stock-based compensation expense	849		849
Net income (loss)	(11,081)			(11,081)
Ending Balance at Jun. 30, 2018	77,061	$ 32	260,844	(183,815)
Ending Balance, Shares at Jun. 30, 2018		31,421,000
Exercise of stock options	65		65
Exercise of stock options, shares		20,000
Issuance of common stock under employee stock purchase plan	60		60
Issuance of common stock under employee stock purchase plan, shares		20,000
Stock-based compensation expense	794		794
Offering costs	1		1
Net income (loss)	(10,662)			(10,662)
Ending Balance at Sep. 30, 2018	67,319	$ 32	261,764	(194,477)
Ending Balance, Shares at Sep. 30, 2018		31,461,000
Beginning Balance at Dec. 31, 2018	61,137	$ 32	262,405	(201,300)
Beginning Balance, Shares at Dec. 31, 2018		31,468,000
Exercise of stock options	60		60
Exercise of stock options, shares		15,000
Issuance of common stock under employee stock purchase plan	53		53
Issuance of common stock under employee stock purchase plan, shares		17,000
Stock-based compensation expense	880		880
Net income (loss)	(3,661)			(3,661)
Ending Balance at Mar. 31, 2019	58,469	$ 32	263,398	(204,961)
Ending Balance, Shares at Mar. 31, 2019		31,500,000
Beginning Balance at Dec. 31, 2018	$ 61,137	$ 32	262,405	(201,300)
Beginning Balance, Shares at Dec. 31, 2018		31,468,000
Exercise of stock options, shares	120,000
Net income (loss)	$ (8,208)
Ending Balance at Sep. 30, 2019	55,835	$ 32	265,311	(209,508)
Ending Balance, Shares at Sep. 30, 2019		31,623,000
Beginning Balance at Mar. 31, 2019	58,469	$ 32	263,398	(204,961)
Beginning Balance, Shares at Mar. 31, 2019		31,500,000
Exercise of stock options	142		142
Exercise of stock options, shares		58,000
Stock-based compensation expense	830		830
Net income (loss)	(7,629)			(7,629)
Ending Balance at Jun. 30, 2019	51,812	$ 32	264,370	(212,590)
Ending Balance, Shares at Jun. 30, 2019		31,558,000
Exercise of stock options	214		214
Exercise of stock options, shares		47,000
Issuance of common stock under employee stock purchase plan	56		56
Issuance of common stock under employee stock purchase plan, shares		18,000
Stock-based compensation expense	671		671
Net income (loss)	3,082			3,082
Ending Balance at Sep. 30, 2019	$ 55,835	$ 32	$ 265,311	$ (209,508)
Ending Balance, Shares at Sep. 30, 2019		31,623,000

Organization and Summary of Sig

Organization and Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2019
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. (the Company or Pfenex) is a development and licensing biotechnology company focused on leveraging its Pf ® Pf ® a recombinant Erwinia asparaginase long-acting Erwinia asparaginase Pf Pf Pf FDA-Approved PF708 Product On October 4, 2019, the FDA approved the NDA for PF708 submitted under the 505(b)(2) regulatory pathway, with Forteo (teriparatide injection) as the reference drug. The FDA-approved PF708 product is indicated for the treatment of osteoporosis in certain patients at high risk for fracture. The Company is currently in the process of transferring the NDA to Alvogen pursuant to the Alvogen Agreement, described below, between the companies. In addition, the Company has been continuing its efforts to obtain an “A” therapeutic equivalence designation for the product relative to its reference drug, Forteo. A determination of therapeutic equivalence may permit the FDA-approved PF708 product to be automatically substituted for Forteo, depending on applicable laws and policies within each of the 50 states. Consistent with the Company’s interactions with the FDA and the agency’s draft guidance document on demonstrating the therapeutic equivalence of drug-device combination products, the Company has completed a comparative human factors study comparing the FDA-approved PF708 product and Forteo. This human factors study was designed to further support a finding that the FDA-approved PF708 product is therapeutically equivalent to Forteo. On October 14, 2019, the Company announced the successful completion of its PF708 comparative use human factors study and its submission of the final study report to the FDA. The study data demonstrate that the user interface of the FDA-approved PF708 product was In April 2018, the Company and China NT Pharma Group Company Ltd. (NT Pharma) entered into a Development and License Agreement (NT Pharma Agreement), pursuant to which the Company granted an exclusive license to NT Pharma to commercialize PF708 in Mainland China, Hong Kong, Singapore, Malaysia and Thailand and a non-exclusive license to conduct development activities in such territories with respect to PF708. The Company will be responsible for commercial manufacturing and providing product for commercial sale to NT Pharma. The Company will facilitate this obligation via its commercial partner Alvogen. NT Pharma is responsible for all regulatory submissions, development costs and costs associated with regulatory approvals in such territories. In June 2018, the Company and Alvogen Malta Operations Ltd. (Alvogen) entered into a Development and License Agreement (Alvogen Agreement) pursuant to which Alvogen has the exclusive right to commercialize and manufacture PF708 in the United States. The Company expects Alvogen to launch FDA-approved PF708 in the U.S. upon an FDA rating decision on the therapeutic equivalence evaluation of the product. Following the FDA approval of the NDA for PF708, the FDA-approved PF708 product will be commercialized and manufactured in the U.S. by Alvogen. The Company is currently in the process of transferring the NDA to Alvogen pursuant to its collaboration agreement. In February 2019, the Company and Alvogen entered into additional agreements, extending Alvogen’s rights to commercialize and manufacture PF708 to include the European Union (EU), certain countries in the Middle East and North Africa (MENA) and to the rest of world (ROW) territories (excluding certain Asian countries granted to NT Pharma). Alvogen is responsible for local activities and for overseeing any clinical development, regulatory, litigation, commercial manufacturing and commercialization activities Collaboration Partner: Jazz Pharmaceuticals Ireland Limited In July 2016, the Company and Jazz announced an agreement under which the Company granted Jazz worldwide rights to develop and commercialize multiple early stage hematology/oncology product candidates, including PF743 (JZP-458), a recombinant Erwinia Erwinia Pfēnex Expression Technology Licenses: CRM197 The Company has both licenses and supply agreements in place for CRM197, which is a non-toxic mutant of diphtheria toxin. It is a well-characterized protein and functions as a carrier for polysaccharides and haptens, making them immunogenic. The Company has developed unique CRM197 production strains based on its Pf Arcellx Development, Evaluation and License Agreement The Company previously entered into a development, evaluation and license agreement with Arcellx which provides access to the Pf Pf Additional Novel Vaccine and Biosimilar Pipeline Products The Company’s pipeline includes biosimilar candidates to certain reference products, including biosimilar candidates to Lucentis (PF582) and Neulasta (PF529) and two novel anthrax vaccine candidates, Px563L and RPA563, which are funded by the Biomedical Advanced Research and Development Authority (BARDA). In November of 2017, the Company paused development on both PF582 and PF529 and it does not intend to advance PF582 or PF529 without development and commercial collaboration partners. In March 2019 the Company received a notice from BARDA advising it of BARDA’s decision not to exercise development options for cGMP manufacturing, preclinical studies and Phase 1/2b study readiness in connection with the Company’s Px563L and RPA563 novel anthrax vaccine program. Following the receipt of the notice from BARDA and pursuant to discussions with BARDA, the Company deprioritized this program in its portfolio. At the Market Offering Program In March 2018, the Company entered into an equity sales agreement (Sales Agreement) with William Blair & Company, L.L.C. (William Blair) to sell shares of the Company’s common stock having aggregate sales proceeds of up to $20.0 million, from time to time, through an “at the market” equity offering program under which William Blair will act as sales agent. Under the Sales Agreement, the Company sets the parameters for the sale of shares, including the number of shares to be issued, the time period during which sales are requested to be made, limitation on the number of shares that may be sold in any one trading day and any minimum price below which sales may not be made. As of September 30, 2019, the Company had not sold any shares under the Sales Agreement. Follow-on Public Offering In May 2018, the Company completed a public offering of common stock in which it sold 7,820,000 shares of its common stock at an offering price of $5.50 per share, which included the full exercise by the underwriters of their option to purchase an additional 1,020,000 shares, pursuant to the Company’s prior shelf registration statement. The net proceeds generated from this transaction, after underwriting discounts and commissions and offering costs, were approximately $39.5 million. Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles, or U.S. GAAP, for interim financial information and with the instructions of the Securities and Exchange Commission, or SEC, on Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and disclosures required by U.S. GAAP for complete financial statements. In the opinion of management, the accompanying unaudited consolidated financial statements include all adjustments necessary, which are of a normal and recurring nature, for the fair presentation of the Company’s financial position and of the results of operations and cash flows for the periods presented. These consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018, as filed with the SEC. The results of operations for the interim period shown in this report are not necessarily indicative of the results that may be expected for any other interim period or for the full year. Use of Estimates The preparation of the accompanying unaudited consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts (including assets, liabilities, revenues and expenses) and related disclosures. Estimates have been prepared on the basis of the most current and best available information. However, actual results could differ from those estimates. Risk and Uncertainties The Company’s future results of operations involve a number of risks and uncertainties. Factors that could affect the Company’s future operating results and cause actual results to vary materially from expectations include, but are not limited to, the performance of the Company’s commercial partner Alvogen, uncertainty of results of clinical trials and reaching milestones, uncertainty of timing and types of regulatory approval of the Company’s product candidates, uncertainty of market acceptance of the Company’s products if approved for sale, competition from substitute products and larger companies, securing and protecting proprietary technology, strategic relationships and dependence on key individuals. Products developed by the Company require clearances from international and domestic regulatory agencies prior to commercial sales in such jurisdictions. There can be no assurance that the products will receive the necessary clearances. If the Company was denied clearance, clearance was delayed or the Company was unable to maintain clearance, it could have a materially adverse impact on the Company. As of September 30, 2019, the Company had an accumulated deficit of $209.5 million and expects to incur substantial operating losses for the next several years. The Company believes that its existing cash and cash equivalents and cash inflow from operations will be sufficient to meet its anticipated cash needs for at least the next 12 months from the date these unaudited consolidated financial statements are issued. The Company will require substantial cash to achieve its objectives of discovering, developing and commercializing drugs, as this process typically takes many years and potentially hundreds of millions of dollars for an individual drug. The Company may not have adequate available cash, or assets that could be readily turned into cash, to meet these objectives in the long term. It will need to obtain significant funds under its existing collaborations and license agreements, under new collaboration, licensing or other commercial agreements for one or more of its product candidates and programs or patent portfolios, or from other potential sources of liquidity, which may include the sale of equity, issuance of debt or other transactions. However, there can be no assurance that any additional financing or strategic investments will be available to the Company on acceptable terms, if at all. If events or circumstances occur such that it does not obtain additional funding, the Company will most likely be required to reduce its plans and/or certain discretionary spending, which could have a material adverse effect on its ability to achieve its intended business objectives. Cash and Cash Equivalents The Company considers all highly liquid investments that are readily convertible into cash and have an original maturity of 90 days or less at the time of purchase to be cash equivalents. Cash amounts that are restricted as to withdrawal or usage are presented as restricted cash. In January 2017, the Company entered into a Borrower’s Pledge Agreement, which required $0.2 million in restricted cash to be provided as security for its commercial credit card arrangement with one of the Company’s banks. 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 three major financial institutions as of September 30, 2019 and December 31, 2018. For the Company’s cash position of $32.7 million as of September 30, 2019, which included restricted cash of $0.2 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, 2019, and December 31, 2018, receivables were concentrated among two and three customers representing 91% and 87% of total net receivables, respectively. No allowance for doubtful accounts was recorded at September 30, 2019 or December 31, 2018. For the three months ended September 30, 2019 and 2018, revenue was concentrated among two A portion of revenue is earned from entities located outside the United States. Non-U.S. revenue is denominated in U.S. dollars. A breakdown of the Company’s revenue from U.S. and non-U.S. based sources for the nine months ended September 30, 2019 and 2018 is as follows: Three Months Ended September 30, Nine months Ended September 30, (in thousands) 2019 2018 2019 2018 US Revenue $ 877 $ 1,371 $ 4,172 $ 3,877 Non-US Revenue 14,371 2,199 24,249 7,629 $ 15,248 $ 3,570 $ 28,421 $ 11,506 During the three and nine months ended September 30, 2019, entities located in Ireland and Malta accounted for more than 10% of the Company’s revenue. During the three and nine months ended September 30, 2018, entities located in Ireland accounted for more than 10% of the Company’s revenue. Fair Value of Financial Instruments Financial instruments, including cash, cash equivalents, restricted cash and the lines of credit, are carried at cost, which management believes approximates fair value because of the short-term maturity of these instruments. 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, 2019 and December 31, 2018 included the Company’s cash, cash equivalents and restricted cash. 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, 2019 or December 31, 2018; 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, 2019 or December 31, 2018. 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 development and sales milestones and for product royalties. The specifics of the Company’s significant agreements are detailed in Note 7—Significant Research and Development Agreements. The Company’s revenue is reported into one of three categories, including: license revenue, service revenue, and product revenue. License revenue generally includes providing customers with access to the Company’s intellectual property and achievement of development milestones during the period or a portion of contractual payments that are recognized during the reporting period. Service revenue is derived from performing activities for customers related to the Company’s Pf 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. On a quarterly basis, the Company evaluates the period of performance to determine if a change should be made. Upfront, nonrefundable 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. Revenue under service agreements are recorded as services are performed. These agreements do not require development 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 the Company’s 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. 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. For the three and nine months ended September 30, 2019, $11.0 million and $17.1 million in revenue was recognized in connection with the achievement of milestones, respectively. The Company’s reagent protein products are primarily comprised of internally developed reagent protein products. 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. As of September 30, 2019, the Company has had minimal product returns related to reagent protein product sales. Therefore, no reserve for warranty and return rights was recorded as of September 30, 2019 and December 31, 2018. 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 Not Yet Adopted In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) In January 2017, the FASB issued ASU No. 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. This updated guidance eliminates Step 2 from the current two-step quantitative model for goodwill impairment tests. Step 2 required an entity to calculate an implied fair value, which included a hypothetical purchase price allocation requirement, for reporting units that failed Step 1. Per this updated guidance, a goodwill impairment will instead be measured as the amount by which a reporting unit’s carrying value exceeds its fair value as identified in Step 1. This guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within that reporting period. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The adoption of this guidance is not expected to have a material impact on the consolidated financial statements. In June 2018, the FASB issued ASU No. 2018-07, Compensation-Stock Compensation (Topic 718), In August 2018, the FASB issued ASU No. 2018-15, Intangibles—Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. In November 2018, the FASB issued ASU No. 2018-18, Collaborative Arrangements (Topic 808)—Clarifying the Interaction between Topic 808 and Topic 606 Revenue from Contracts with Customers

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2019
Fair Value Disclosures [Abstract]
Fair Value Measurements	2. Fair Value Measurements The fair value measurements of the Company’s cash equivalents and investments, which are measured at fair value on a recurring basis as of September 30, 2019 and December 31, 2018, were determined using the inputs described above and are as follows: Fair Value Measurements at Reporting Date Using Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (in thousands) September 30, 2019 Cash and money market funds $ 32,718 $ 32,718 $ — $ — Total assets measured at fair value $ 32,718 $ 32,718 $ — $ — December 31, 2018 Cash and money market funds $ 56,420 $ 56,420 $ — $ — Total assets measured at fair value $ 56,420 $ 56,420 $ — $ — Cash and money market funds at September 30, 2019 and December 31, 2018 include restricted cash, which is included in current assets on the balance sheet.

Cash, Cash Equivalents and Rest

Cash, Cash Equivalents and Restricted Cash	9 Months Ended
	Sep. 30, 2019
Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents [Abstract]
Cash, Cash Equivalents and Restricted Cash	3. Cash, Cash Equivalents and Restricted Cash The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the statement of cash flows. September 30, 2019 December 31, 2018 (in thousands) Cash and cash equivalents $ 32,518 $ 56,220 Restricted cash 200 200 Total cash, cash equivalents and restricted cash shown in the statement of cash flows $ 32,718 $ 56,420 The Company’s restricted cash balance of $0.2 million is bank collateral for its corporate credit card program.

Property and Equipment

Property and Equipment	9 Months Ended
	Sep. 30, 2019
Property Plant And Equipment [Abstract]
Property and Equipment	4. Property and Equipment Property and equipment consisted of the following: September 30, 2019 December 31, 2018 (in thousands) Furniture and equipment $ 372 $ 367 Computers and IT equipment 498 451 Purchased software 464 375 Lab and research equipment 9,801 9,154 Leasehold improvements 951 876 Construction in progress 1,128 328 Other fixed assets 83 83 Total property and equipment, gross 13,297 11,634 Less: accumulated depreciation and amortization (4,923 ) (3,963 ) Total property and equipment, net $ 8,374 $ 7,671 Total property and equipment assets under capital lease were $1.0 million at both September 30, 2019 and December 31, 2018. Accumulated depreciation related to assets under capital lease as of both dates was $0.2 million. For the three and nine months ended September 30, 2019 and 2018, total depreciation and amortization expense is included in research and development, selling, general and administrative expenses and cost of sales in the accompanying consolidated statements of operations was as follows: Three Months Ended September 30, Nine months Ended September 30, (in thousands) 2019 2018 2019 2018 Cost of revenue $ 88 $ 8 $ 105 $ 23 Research and development 197 242 664 709 Selling, general and administrative 53 41 199 117 Total depreciation and amortization expense $ 338 $ 291 $ 968 $ 849

Intangible Assets

Intangible Assets	9 Months Ended
	Sep. 30, 2019
Goodwill And Intangible Assets Disclosure [Abstract]
Intangible Assets	5. Intangible Assets Intangible assets consisted of the following: September 30, 2019 December 31, 2018 (in thousands) Customer relationships $ 3,750 $ 3,750 Developed technology 4,400 4,400 Trade names 920 920 Total intangible assets, gross 9,070 9,070 Less: Accumulated amortization (5,211 ) (4,822 ) Total intangible assets, net $ 3,859 $ 4,248 Amortization expense related to intangible assets was $0.1 million for both the three months ended September 30, 2019 and 2018, and $0.4 million for both the nine months ended September 30, 2019 and 2018. Amortization expense is included within selling, general and administrative expense in the accompanying consolidated statements of operations. As of September 30, 2019, 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, 2019
Payables And Accruals [Abstract]
Accrued Liabilities	6. Accrued Liabilities Accrued liabilities consisted of the following: September 30, 2019 December 31, 2018 (in thousands) Accrued vacation $ 522 $ 493 Deferred rent 549 589 Accrued bonuses 1,618 1,748 Other accrued employee-related liabilities 525 302 Accrued professional fees 855 1,524 Accrued supplier liability 615 387 Accrued subcontractor costs 1,949 4,265 Obligation to Alvogen for raw materials 713 — Other accrued liabilities 1,006 504 Total accrued liabilities $ 8,352 $ 9,812 In May 2019, the Company received a $1.7 million cash payment from Alvogen for raw materials. As of September 30, 2019, the Company had shipped approximately $1.0 million of raw materials due to Alvogen related to this agreement which was recorded as an offset to R&D expense, and the remaining $0.7 million is recorded as part of accrued liabilities.

Significant Research and Develo

Significant Research and Development Agreements	9 Months Ended
	Sep. 30, 2019
Research And Development [Abstract]
Significant Research and Development Agreements	7. Significant Research and Development Agreements The Company has two types of research and development agreements (i) those for which the Company co-develops or assists customers in developing their products (Collaboration Agreements), and (ii) those for which the Company receives funding to advance its own products (Funding Agreements). Collaboration Agreements Alvogen In June 2018, the Company entered into an agreement with Alvogen in which the Company granted Alvogen exclusive rights to commercialize and manufacture PF708 in the United States. The Company expects Alvogen to launch the FDA-approved PF708 product in the U.S. upon an FDA rating decision on the therapeutic equivalence evaluation of the product. Prior to the FDA approval of the NDA for PF708, the Company was responsible for development and registration of PF708, while Alvogen was and continues to provide additional regulatory and development expertise. Following the FDA approval of the NDA for PF708, Alvogen has assumed responsibility for costs related to litigation, commercial manufacturing and supply chain, and commercialization of the FDA-approved PF708 product and the Company is currently in the process of transferring the NDA to Alvogen. In consideration for the licenses and other rights granted to Alvogen under the agreement, the Company received an upfront payment of $2.5 million, achieved two development milestone for $2.5 million each, one of which was the milestone achievement for FDA approval of PF708 in October 2019, and may be eligible to receive an additional $20 million in support and regulatory milestone payments. The Company may also be eligible to receive a 50% gross profit split on sales if the product is rated as Therapeutically Equivalent (AP) to Forteo and up to 40% if rated differently. The Company deems that the support and regulatory milestones are substantive. In February 2019, the Company and Alvogen entered into agreements expanding the Company’s and Alvogen’s collaboration to develop and commercialize PF708 to the EU, to certain countries in the MENA and to the ROW territories (the latter defined as all countries outside of the EU, US and MENA, excluding Mainland China, Hong Kong, Singapore, Malaysia and Thailand). Under the agreements, Alvogen has exclusive rights to develop, commercialize and manufacture PF708 in such territories. As of September 30, 2019, the Company has earned $1.0 million in upfront and milestone payments and may be eligible to receive an additional $1.5 million in milestone payments under the terms of the expanded agreements with Alvogen. For EU, MENA and ROW, Pfenex may also be eligible to receive up to 60% of Alvogen’s gross profit derived from product sales, depending on geography and cost of goods sold. In accordance with ASC 605-25, the Company identified all of the deliverables at the inception of the Alvogen Agreement. The significant deliverables were determined to be the development and regulatory services up through the NDA filing and ultimate approval related to the PF708 product and the exclusive license granted to Alvogen to commercialize PF708 in the United States. The Company has determined that the license and the development and regulatory activities meet the separation criteria; therefore, they are each treated as separate units of accounting. To determine the stand-alone value of the license, the Company considered its negotiation discussions with Alvogen that led to the final terms of the agreement and other information. The Company determined a selling price for the services by estimating costs expected to be incurred for internal labor, burden rates, internal margins, and subcontractors. The upfront payment of $2.5 million received in 2018 is not fixed and determinable due to a contract clause that $2.5 million may be payable to Alvogen if the NDA approval is not transferred to Alvogen by a specified date; therefore, the upfront payment has been recorded as deferred revenue in the accompanying consolidated balance sheet as of September 30, 2019. In the nine months ended September 30, 2019, a one-time support payment of $2.5 million was received by the Company from Alvogen upon FDA acceptance of the NDA in consideration of the Company’s production of consistency batches of PF708 product and related development and support activities. The payment was recorded as revenue during the first quarter of 2019. In February 2019, Alvogen also agreed to support certain costs incurred by the Company for PF708 related to the preparation and filing of the NDA and costs related to regulatory affairs, quality, manufacturing and supply chain during 2019. Alvogen agreed to pay a total of $1.6 million for said costs, and the Company recognized the entire $1.6 million as an offset to R&D expense in 2019. As of September 30, 2019, the Company invoiced Alvogen approximately $1.2 million, and the remaining $0.4 million is recorded as an unbilled receivable. The Company is currently in the process of transferring internally managed manufacturing activities to Alvogen. In April 2019, the Company entered into an agreement with Alvogen where the Company acted as the liaison between Alvogen and the Company’s established raw materials supplier/manufacturer. In May 2019, the Company received a $1.7 million cash payment from Alvogen for raw materials. As of September 30, 2019, the Company had shipped approximately $1.0 million of raw materials due to Alvogen related to this agreement which was recorded as an offset to R&D expense, and the remaining $0.7 million is recorded as part of accrued liabilities. In May 2019, the Company entered into an agreement with Alvogen for the Company to provide PF708 drug substance batches and pen components in exchange for $2.3 million. This product sold to Alvogen was initially manufactured by Company’s CMO for manufacturing process validation purposes as part of the PF708 NDA submission to the FDA for approval. The Company does not expect to have similar transactions with its collaboration partners in the future. The $2.3 million was recorded as product revenue in the accompanying consolidated statements of operations during the three and nine months ended September 30, 2019. In October 2019, the FDA approved the NDA for PF708 under the 505(b)(2) regulatory pathway, with Forteo (teriparatide injection) as the reference drug. In connection with the FDA approval of PF708, the Company earned a $2.5 million milestone payment under the collaboration agreement with Alvogen, payable upon Alvogen’s receipt of notice of NDA approval, and will be recognized as revenue in the fourth quarter of 2019. NT Pharma In April 2018, the Company entered into an agreement with NT Pharma under which the Company granted NT Pharma non-exclusive development and exclusive commercialization rights to PF708 in Mainland China, Hong Kong, Singapore, Malaysia and Thailand. In accordance with the agreement, the Company received an upfront payment of $2.5 million and may be eligible to receive up to $22.5 million in payments based on the achievement of certain development, regulatory, and sales-related milestones. In addition, the Company is eligible to receive double-digit royalties on net product sales. NT Pharma is responsible for any further development required to achieve regulatory approval as well as commercialization activities in the applicable territories. The Company deems that none of the non-sales milestones are substantive. Milestones that are not considered substantive would be recognized as revenue over the remaining period of performance, assuming all other revenue recognition criteria are met. In accordance with ASC 605-25, the Company identified all of the deliverables at the inception of the NT Pharma Agreement. The significant deliverables were determined to be the license and research and development services up through the NDA filing related to the PF708 product. The Company has determined that these deliverables meet the separation criteria and therefore are each treated as separate units of accounting. The upfront payment of $2.5 million was not fixed and determinable. Due to a contract clause, the $2.5 million could be payable to NT Pharma if the NDA was not filed by a specified date and additional deliverables were required after NDA submission. Therefore, the upfront payment was recorded as deferred revenue as of December 31, 2018. The deliverables were satisfied during the first quarter of 2019, at which time the upfront payment was recognized as revenue. Jazz In July 2016, the Company entered into a development and license agreement with Jazz Pharmaceuticals for the development and commercialization of multiple early stage hematology/oncology product candidates, including PF743 (JZP-458), a recombinant Erwinia Erwinia In December 2017, the Company and Jazz entered into an amended and restated agreement (as amended, the Amended Jazz Agreement). As part of the Amended Jazz Agreement, the Company received a total payment of $18.5 million, consisting of an upfront payment of $5.0 million and a payment of $13.5 million for development achievement. In 2018, the Company achieved two development milestones and received $0.8 million in recognized revenue for successful achievement of process development milestones for PF745. In September 2019, the Company achieved a development milestone and recognized $11.0 million in revenue for successful achievement of a process development milestone for PF745. In accordance with ASC 605-25, the Company identified all of the deliverables at the inception of the Jazz Agreement and again upon entering into the Amended Jazz Agreement. The deliverables have not changed under the amendment. The significant deliverables were determined to be the research and development services related to the pegaspargase product candidate option and for license and research and development activities of the other hematology/oncology products. The Company has determined that the license, together with the research and development activities, represent one unit of accounting for each product under license, as the license does not have standalone value from the respective development activities. The research and development activities related to the pegaspargase option were determined to have standalone value apart from the license and development activities for the other hematology/oncology products. The estimated selling price for the pegaspargase product candidate and the hematology/oncology products was determined using an income approach. In determining the estimated selling price, the Company considered costs expected to be incurred for internal labor, burden rates, internal margins, and subcontractors. Based on the Company’s considerations of estimated selling price, the Company allocated the original $15.0 million upfront and option payment as follows: $10.0 million to the pegaspargase product candidate and $2.5 million to each of the hematology/oncology products. For the $5.0 million upfront payment received under the terms of the Amended Jazz Agreement, the Company determined that $0.8 million represented development services performed prior to the amendment, which had been reimbursable under the original agreement. The remaining $4.2 million of the upfront payment was allocated to the remaining hematology product; the amount was deferred and is being recognized over the period of performance. The Amended Jazz Agreement provisions allow for Jazz to halt the advancement of one of the products under development and replace with others wherein the Company could potentially earn milestone revenue on those products. However, the Company believes it is unlikely Jazz would halt the advancement of the product under development and replace with other products. Therefore, none of the upfront payments were allocated to this option. The upfront and option payment for the original Jazz agreement and the amendment were being deferred and being recognized as revenue ratably over the period in which the Company expects services to be rendered for each respective unit of accounting, concluded by June 30, 2019. Funding Agreements The U.S. Department of Health and Human Services In August 2015, the Company completed a development contract with the BARDA within the Office of the Assistant Secretary for Preparedness and Response in the U.S. Department of Health and Human Services for Px563L and RPA563 as a novel vaccine candidate for the prevention of anthrax infection. The Company entered into a follow-on contract with BARDA i Revenue is recognized in accordance with the authoritative guidance for revenue recognition including the authoritative guidance specific to federal government contractors. Reimbursable costs under this government contract primarily include direct labor, materials, subcontracts, accountable property and indirect costs. In addition, the Company receives a fixed fee under the BARDA contract, which is unconditionally earned as allowable costs are incurred and is not contingent on success factors. Reimbursable costs under this BARDA contract, including the fixed fee, are generally recognized as revenue in the period the reimbursable costs are incurred and become billable. The billing of any overage in indirect cost rates over the approved provisional rates in the contract is not allowed. Any such overage is expensed as incurred. When and if final rates with Defense Contract Audit Agency are approved, the Company will recognize any change in revenue resulting from the rate change in the period such revised rates are approved and as such this would be considered a change in estimate. This agreement is subject to early termination and stop-work order in conformance with Federal Acquisition Regulations 52.249-6 and 52.242-15 whereupon BARDA may immediately terminate the agreement early for convenience or request the Company to stop all or any part of the work for a period of at least 90 days. During the three months ended September 30, 2019 and 2018, revenue from BARDA was $0.2 million and $1.3 million, respectively. During the nine months ended September 30, 2019 and 2018, revenue from BARDA was $1.2 million and $3.8 million, respectively.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2019
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	8. Commitments and Contingencies Capital Lease Agreements Payment commitments for the Company’s capital leases are summarized as follows: September 30, 2019 (in thousands) 2019 $ 92 2020 202 2021 1 Total future minimum lease payments $ 295 The Company has operating and capital lease agreements for office and lab equipment that expire at various dates through 2021. Clinical Study and Development Activity Commitments The Company has entered into agreements with contract research organizations and subcontractors to further develop its product candidates. These contracts can be cancelled at any time, with some having certain cancellation fees associated with the termination of the contract, and others that only obligate the Company through the termination date.

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Sep. 30, 2019
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Stock-Based Compensation	9. Stock-Based Compensation Summary Stock-Based Compensation Information The following table summarizes stock-based compensation expense: Three Months Ended September 30, Nine months Ended September 30, (in thousands) 2019 2018 2019 2018 Cost of revenue $ 44 $ 50 $ 133 $ 143 Research and development 219 339 999 1,149 Selling, general and administrative 408 404 1,249 1,259 Total $ 671 $ 793 $ 2,381 $ 2,551 Stock-based compensation from: Stock options $ 646 $ 752 $ 2,320 $ 2,395 Employee stock purchase plan 25 41 61 156 Total $ 671 $ 793 $ 2,381 $ 2,551 The following table summarizes the Company’s stock option activity during the nine months ended September 30, 2019: Number of Options (in thousands) Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Outstanding at December 31, 2018 4,155 $ 6.13 Granted 1,282 4.57 Exercised (120 ) 3.47 Cancelled (forfeited) (522 ) 6.52 Outstanding at September 30, 2019 4,795 $ 5.73 6.92 $ 15,431 Vested and expected to vest at September 30, 2019 4,245 $ 5.92 6.66 $ 13,156 Vested and exercisable at September 30, 2019 2,458 $ 7.04 5.08 $ 5,865 The Company received approximately $0.4 million and $0.1 million from stock option exercises during the nine months ended September 30, 2019 and September 30, 2018, respectively. Options outstanding at September 30, 2019 have a weighted average remaining contractual term of 6.92 years. The exercise price of all options granted during the nine months ended September 30, 2019 and 2018 was equal to 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 table below sets forth the weighted-average assumptions used to estimate the fair value of stock options: Three Months Ended September 30, Nine months Ended September 30, 2019 2018 2019 2018 Risk-free interest rate 1.5 % 2.8 % 2.4 % 2.7 % Expected volatility 72.7 % 72.8 % 72.6 % 71.1 % Expected dividend yield 0 % 0 % 0 % 0 % Expected life of options in years 5.9 6.3 6.2 6.3 The weighted-average grant date fair value of options granted during the nine months ended September 30, 2019 and 2018 was $3.01 and $2.37, respectively. As of September 30, 2019, there was unrecognized compensation cost of approximately $5.8 million related to unvested stock option awards, and the weighted-average period over which this cost is expected to be recognized is 2.7 years.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2019
Income Tax Disclosure [Abstract]
Income Taxes	10. Income Taxes During the three and nine months ended September 30, 2019, the Company recorded no income tax expense. The Company expects to be in an overall taxable loss position for 2019. No tax expense is expected in the next several years as the Company expects to generate taxable net operating losses and corresponding valuation allowances due to its investments in its lead product candidates and other pipeline products.

Net Income (Loss) Per Share of

Net Income (Loss) Per Share of Common Stock	9 Months Ended
	Sep. 30, 2019
Earnings Per Share [Abstract]
Net Income (Loss) Per Share of Common Stock	11. Net Income (Loss) Per Share of Common Stock The following table summarizes the computation of basic and diluted net income ( Three Months Ended September 30, Nine months Ended September 30, (in thousands, except per share data) 2019 2018 2019 2018 Net income (loss) $ 3,082 $ (10,662 ) $ (8,208 ) $ (32,770 ) Weighted average shares used to compute basic and diluted net income (loss) per share 31,595 31,437 31,534 27,288 Dilutive effect of employee stock option plans 903 — — — Dilutive weighted-average common shares outstanding 32,498 31,437 31,534 27,288 Basic net income (loss) per common share $ 0.10 $ (0.34 ) $ (0.26 ) $ (1.20 ) Diluted net income (loss) per common share $ 0.09 $ (0.34 ) $ (0.26 ) $ (1.20 ) Basic net income (loss) per share is computed by dividing the net income (loss) by the weighted-average number of common shares outstanding for the period. Diluted net income (loss) per share is computed by dividing the net income ( The following potentially dilutive securities outstanding at the end of the periods presented have been excluded from the computation of diluted shares outstanding because of their anti-dilutive impact to earnings per share: September 30, 2019 2018 (in thousands) Options to purchase common stock 4,795 4,119 Employee stock purchase plan 59 70 Total 4,854 4,189

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2019
Subsequent Events [Abstract]
Subsequent Events	12. Subsequent Events In October 2019, the FDA approved the NDA for PF708 under the 505(b)(2) regulatory pathway, with Forteo (teriparatide injection) as the reference drug. In connection with the FDA approval of PF708, the Company earned a $2.5 million milestone payment under the collaboration agreement with Alvogen, payable upon Alvogen’s receipt of notice of NDA approval. The Company recognized this $2.5 million as license revenue in the fourth quarter of 2019. In October 2019, the Company received an $11 million cash payment for the September 2019 achievement of a development milestone for PF745 associated to the Jazz collaboration. The Company recognized this $11.0 million as license revenue in the third quarter of 2019. In October 2019, the Company announced the successful completion of its PF708 comparative use human factors study and its submission of the final study report to the FDA. An estimate of the financial effect of this subsequent event cannot be determined as of the report release date.

Organization and Summary of S_2

Organization and Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2019
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Business Activities and Organization	Business Activities and Organization Pfenex Inc. (the Company or Pfenex) is a development and licensing biotechnology company focused on leveraging its Pf ® Pf ® a recombinant Erwinia asparaginase long-acting Erwinia asparaginase Pf Pf Pf FDA-Approved PF708 Product On October 4, 2019, the FDA approved the NDA for PF708 submitted under the 505(b)(2) regulatory pathway, with Forteo (teriparatide injection) as the reference drug. The FDA-approved PF708 product is indicated for the treatment of osteoporosis in certain patients at high risk for fracture. The Company is currently in the process of transferring the NDA to Alvogen pursuant to the Alvogen Agreement, described below, between the companies. In addition, the Company has been continuing its efforts to obtain an “A” therapeutic equivalence designation for the product relative to its reference drug, Forteo. A determination of therapeutic equivalence may permit the FDA-approved PF708 product to be automatically substituted for Forteo, depending on applicable laws and policies within each of the 50 states. Consistent with the Company’s interactions with the FDA and the agency’s draft guidance document on demonstrating the therapeutic equivalence of drug-device combination products, the Company has completed a comparative human factors study comparing the FDA-approved PF708 product and Forteo. This human factors study was designed to further support a finding that the FDA-approved PF708 product is therapeutically equivalent to Forteo. On October 14, 2019, the Company announced the successful completion of its PF708 comparative use human factors study and its submission of the final study report to the FDA. The study data demonstrate that the user interface of the FDA-approved PF708 product was In April 2018, the Company and China NT Pharma Group Company Ltd. (NT Pharma) entered into a Development and License Agreement (NT Pharma Agreement), pursuant to which the Company granted an exclusive license to NT Pharma to commercialize PF708 in Mainland China, Hong Kong, Singapore, Malaysia and Thailand and a non-exclusive license to conduct development activities in such territories with respect to PF708. The Company will be responsible for commercial manufacturing and providing product for commercial sale to NT Pharma. The Company will facilitate this obligation via its commercial partner Alvogen. NT Pharma is responsible for all regulatory submissions, development costs and costs associated with regulatory approvals in such territories. In June 2018, the Company and Alvogen Malta Operations Ltd. (Alvogen) entered into a Development and License Agreement (Alvogen Agreement) pursuant to which Alvogen has the exclusive right to commercialize and manufacture PF708 in the United States. The Company expects Alvogen to launch FDA-approved PF708 in the U.S. upon an FDA rating decision on the therapeutic equivalence evaluation of the product. Following the FDA approval of the NDA for PF708, the FDA-approved PF708 product will be commercialized and manufactured in the U.S. by Alvogen. The Company is currently in the process of transferring the NDA to Alvogen pursuant to its collaboration agreement. In February 2019, the Company and Alvogen entered into additional agreements, extending Alvogen’s rights to commercialize and manufacture PF708 to include the European Union (EU), certain countries in the Middle East and North Africa (MENA) and to the rest of world (ROW) territories (excluding certain Asian countries granted to NT Pharma). Alvogen is responsible for local activities and for overseeing any clinical development, regulatory, litigation, commercial manufacturing and commercialization activities Collaboration Partner: Jazz Pharmaceuticals Ireland Limited In July 2016, the Company and Jazz announced an agreement under which the Company granted Jazz worldwide rights to develop and commercialize multiple early stage hematology/oncology product candidates, including PF743 (JZP-458), a recombinant Erwinia Erwinia Pfēnex Expression Technology Licenses: CRM197 The Company has both licenses and supply agreements in place for CRM197, which is a non-toxic mutant of diphtheria toxin. It is a well-characterized protein and functions as a carrier for polysaccharides and haptens, making them immunogenic. The Company has developed unique CRM197 production strains based on its Pf Arcellx Development, Evaluation and License Agreement The Company previously entered into a development, evaluation and license agreement with Arcellx which provides access to the Pf Pf Additional Novel Vaccine and Biosimilar Pipeline Products The Company’s pipeline includes biosimilar candidates to certain reference products, including biosimilar candidates to Lucentis (PF582) and Neulasta (PF529) and two novel anthrax vaccine candidates, Px563L and RPA563, which are funded by the Biomedical Advanced Research and Development Authority (BARDA). In November of 2017, the Company paused development on both PF582 and PF529 and it does not intend to advance PF582 or PF529 without development and commercial collaboration partners. In March 2019 the Company received a notice from BARDA advising it of BARDA’s decision not to exercise development options for cGMP manufacturing, preclinical studies and Phase 1/2b study readiness in connection with the Company’s Px563L and RPA563 novel anthrax vaccine program. Following the receipt of the notice from BARDA and pursuant to discussions with BARDA, the Company deprioritized this program in its portfolio. At the Market Offering Program In March 2018, the Company entered into an equity sales agreement (Sales Agreement) with William Blair & Company, L.L.C. (William Blair) to sell shares of the Company’s common stock having aggregate sales proceeds of up to $20.0 million, from time to time, through an “at the market” equity offering program under which William Blair will act as sales agent. Under the Sales Agreement, the Company sets the parameters for the sale of shares, including the number of shares to be issued, the time period during which sales are requested to be made, limitation on the number of shares that may be sold in any one trading day and any minimum price below which sales may not be made. As of September 30, 2019, the Company had not sold any shares under the Sales Agreement. Follow-on Public Offering In May 2018, the Company completed a public offering of common stock in which it sold 7,820,000 shares of its common stock at an offering price of $5.50 per share, which included the full exercise by the underwriters of their option to purchase an additional 1,020,000 shares, pursuant to the Company’s prior shelf registration statement. The net proceeds generated from this transaction, after underwriting discounts and commissions and offering costs, were approximately $39.5 million.
Basis of Presentation	Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles, or U.S. GAAP, for interim financial information and with the instructions of the Securities and Exchange Commission, or SEC, on Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and disclosures required by U.S. GAAP for complete financial statements. In the opinion of management, the accompanying unaudited consolidated financial statements include all adjustments necessary, which are of a normal and recurring nature, for the fair presentation of the Company’s financial position and of the results of operations and cash flows for the periods presented. These consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018, as filed with the SEC. The results of operations for the interim period shown in this report are not necessarily indicative of the results that may be expected for any other interim period or for the full year.
Use of Estimates	Use of Estimates The preparation of the accompanying unaudited consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts (including assets, liabilities, revenues and expenses) and related disclosures. Estimates have been prepared on the basis of the most current and best available information. However, actual results could differ from those estimates.
Risk and Uncertainties	Risk and Uncertainties The Company’s future results of operations involve a number of risks and uncertainties. Factors that could affect the Company’s future operating results and cause actual results to vary materially from expectations include, but are not limited to, the performance of the Company’s commercial partner Alvogen, uncertainty of results of clinical trials and reaching milestones, uncertainty of timing and types of regulatory approval of the Company’s product candidates, uncertainty of market acceptance of the Company’s products if approved for sale, competition from substitute products and larger companies, securing and protecting proprietary technology, strategic relationships and dependence on key individuals. Products developed by the Company require clearances from international and domestic regulatory agencies prior to commercial sales in such jurisdictions. There can be no assurance that the products will receive the necessary clearances. If the Company was denied clearance, clearance was delayed or the Company was unable to maintain clearance, it could have a materially adverse impact on the Company. As of September 30, 2019, the Company had an accumulated deficit of $209.5 million and expects to incur substantial operating losses for the next several years. The Company believes that its existing cash and cash equivalents and cash inflow from operations will be sufficient to meet its anticipated cash needs for at least the next 12 months from the date these unaudited consolidated financial statements are issued. The Company will require substantial cash to achieve its objectives of discovering, developing and commercializing drugs, as this process typically takes many years and potentially hundreds of millions of dollars for an individual drug. The Company may not have adequate available cash, or assets that could be readily turned into cash, to meet these objectives in the long term. It will need to obtain significant funds under its existing collaborations and license agreements, under new collaboration, licensing or other commercial agreements for one or more of its product candidates and programs or patent portfolios, or from other potential sources of liquidity, which may include the sale of equity, issuance of debt or other transactions. However, there can be no assurance that any additional financing or strategic investments will be available to the Company on acceptable terms, if at all. If events or circumstances occur such that it does not obtain additional funding, the Company will most likely be required to reduce its plans and/or certain discretionary spending, which could have a material adverse effect on its ability to achieve its intended business objectives.
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 90 days or less at the time of purchase to be cash equivalents. Cash amounts that are restricted as to withdrawal or usage are presented as restricted cash. In January 2017, the Company entered into a Borrower’s Pledge Agreement, which required $0.2 million in restricted cash to be provided as security for its commercial credit card arrangement with one of the Company’s banks.
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 three major financial institutions as of September 30, 2019 and December 31, 2018. For the Company’s cash position of $32.7 million as of September 30, 2019, which included restricted cash of $0.2 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, 2019, and December 31, 2018, receivables were concentrated among two and three customers representing 91% and 87% of total net receivables, respectively. No allowance for doubtful accounts was recorded at September 30, 2019 or December 31, 2018. For the three months ended September 30, 2019 and 2018, revenue was concentrated among two A portion of revenue is earned from entities located outside the United States. Non-U.S. revenue is denominated in U.S. dollars. A breakdown of the Company’s revenue from U.S. and non-U.S. based sources for the nine months ended September 30, 2019 and 2018 is as follows: Three Months Ended September 30, Nine months Ended September 30, (in thousands) 2019 2018 2019 2018 US Revenue $ 877 $ 1,371 $ 4,172 $ 3,877 Non-US Revenue 14,371 2,199 24,249 7,629 $ 15,248 $ 3,570 $ 28,421 $ 11,506 During the three and nine months ended September 30, 2019, entities located in Ireland and Malta accounted for more than 10% of the Company’s revenue. During the three and nine months ended September 30, 2018, entities located in Ireland accounted for more than 10% of the Company’s revenue.
Fair Value Measurements	Fair Value of Financial Instruments Financial instruments, including cash, cash equivalents, restricted cash and the lines of credit, are carried at cost, which management believes approximates fair value because of the short-term maturity of these instruments. 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, 2019 and December 31, 2018 included the Company’s cash, cash equivalents and restricted cash. 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, 2019 or December 31, 2018; 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, 2019 or December 31, 2018.
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 development and sales milestones and for product royalties. The specifics of the Company’s significant agreements are detailed in Note 7—Significant Research and Development Agreements. The Company’s revenue is reported into one of three categories, including: license revenue, service revenue, and product revenue. License revenue generally includes providing customers with access to the Company’s intellectual property and achievement of development milestones during the period or a portion of contractual payments that are recognized during the reporting period. Service revenue is derived from performing activities for customers related to the Company’s Pf 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. On a quarterly basis, the Company evaluates the period of performance to determine if a change should be made. Upfront, nonrefundable 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. Revenue under service agreements are recorded as services are performed. These agreements do not require development 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 the Company’s 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. 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. For the three and nine months ended September 30, 2019, $11.0 million and $17.1 million in revenue was recognized in connection with the achievement of milestones, respectively. The Company’s reagent protein products are primarily comprised of internally developed reagent protein products. 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. As of September 30, 2019, the Company has had minimal product returns related to reagent protein product sales. Therefore, no reserve for warranty and return rights was recorded as of September 30, 2019 and December 31, 2018. 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 Not Yet Adopted In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) In January 2017, the FASB issued ASU No. 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. This updated guidance eliminates Step 2 from the current two-step quantitative model for goodwill impairment tests. Step 2 required an entity to calculate an implied fair value, which included a hypothetical purchase price allocation requirement, for reporting units that failed Step 1. Per this updated guidance, a goodwill impairment will instead be measured as the amount by which a reporting unit’s carrying value exceeds its fair value as identified in Step 1. This guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within that reporting period. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The adoption of this guidance is not expected to have a material impact on the consolidated financial statements. In June 2018, the FASB issued ASU No. 2018-07, Compensation-Stock Compensation (Topic 718), In August 2018, the FASB issued ASU No. 2018-15, Intangibles—Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. In November 2018, the FASB issued ASU No. 2018-18, Collaborative Arrangements (Topic 808)—Clarifying the Interaction between Topic 808 and Topic 606 Revenue from Contracts with Customers

Organization and Summary of S_3

Organization and Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2019
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Summary of Sales Revenue	A portion of revenue is earned from entities located outside the United States. Non-U.S. revenue is denominated in U.S. dollars. A breakdown of the Company’s revenue from U.S. and non-U.S. based sources for the nine months ended September 30, 2019 and 2018 is as follows: Three Months Ended September 30, Nine months Ended September 30, (in thousands) 2019 2018 2019 2018 US Revenue $ 877 $ 1,371 $ 4,172 $ 3,877 Non-US Revenue 14,371 2,199 24,249 7,629 $ 15,248 $ 3,570 $ 28,421 $ 11,506

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2019
Fair Value Disclosures [Abstract]
Schedule of Assets Measured at Fair Value on Recurring Basis	The fair value measurements of the Company’s cash equivalents and investments, which are measured at fair value on a recurring basis as of September 30, 2019 and December 31, 2018, were determined using the inputs described above and are as follows: Fair Value Measurements at Reporting Date Using Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (in thousands) September 30, 2019 Cash and money market funds $ 32,718 $ 32,718 $ — $ — Total assets measured at fair value $ 32,718 $ 32,718 $ — $ — December 31, 2018 Cash and money market funds $ 56,420 $ 56,420 $ — $ — Total assets measured at fair value $ 56,420 $ 56,420 $ — $ —

Cash, Cash Equivalents and Re_2

Cash, Cash Equivalents and Restricted Cash (Tables)	9 Months Ended
	Sep. 30, 2019
Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents [Abstract]
Summary of Reconciliation of Cash, Cash Equivalents and Restricted Cash	The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the statement of cash flows. September 30, 2019 December 31, 2018 (in thousands) Cash and cash equivalents $ 32,518 $ 56,220 Restricted cash 200 200 Total cash, cash equivalents and restricted cash shown in the statement of cash flows $ 32,718 $ 56,420

Property and Equipment (Tables)

Property and Equipment (Tables)	9 Months Ended
	Sep. 30, 2019
Property Plant And Equipment [Abstract]
Summary of Property and Equipment	Property and equipment consisted of the following: September 30, 2019 December 31, 2018 (in thousands) Furniture and equipment $ 372 $ 367 Computers and IT equipment 498 451 Purchased software 464 375 Lab and research equipment 9,801 9,154 Leasehold improvements 951 876 Construction in progress 1,128 328 Other fixed assets 83 83 Total property and equipment, gross 13,297 11,634 Less: accumulated depreciation and amortization (4,923 ) (3,963 ) Total property and equipment, net $ 8,374 $ 7,671 Total property and equipment assets under capital lease were $1.0 million at both September 30, 2019 and December 31, 2018. Accumulated depreciation related to assets under capital lease as of both dates was $0.2 million. For the three and nine months ended September 30, 2019 and 2018, total depreciation and amortization expense is included in research and development, selling, general and administrative expenses and cost of sales in the accompanying consolidated statements of operations was as follows: Three Months Ended September 30, Nine months Ended September 30, (in thousands) 2019 2018 2019 2018 Cost of revenue $ 88 $ 8 $ 105 $ 23 Research and development 197 242 664 709 Selling, general and administrative 53 41 199 117 Total depreciation and amortization expense $ 338 $ 291 $ 968 $ 849

Intangible Assets (Tables)

Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2019
Goodwill And Intangible Assets Disclosure [Abstract]
Summary of Intangible Assets	Intangible assets consisted of the following: September 30, 2019 December 31, 2018 (in thousands) Customer relationships $ 3,750 $ 3,750 Developed technology 4,400 4,400 Trade names 920 920 Total intangible assets, gross 9,070 9,070 Less: Accumulated amortization (5,211 ) (4,822 ) Total intangible assets, net $ 3,859 $ 4,248

Accrued Liabilities (Tables)

Accrued Liabilities (Tables)	9 Months Ended
	Sep. 30, 2019
Payables And Accruals [Abstract]
Components of Accrued Liabilities	Accrued liabilities consisted of the following: September 30, 2019 December 31, 2018 (in thousands) Accrued vacation $ 522 $ 493 Deferred rent 549 589 Accrued bonuses 1,618 1,748 Other accrued employee-related liabilities 525 302 Accrued professional fees 855 1,524 Accrued supplier liability 615 387 Accrued subcontractor costs 1,949 4,265 Obligation to Alvogen for raw materials 713 — Other accrued liabilities 1,006 504 Total accrued liabilities $ 8,352 $ 9,812

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	Sep. 30, 2019
Commitments And Contingencies Disclosure [Abstract]
Summary of Capital Lease	Payment commitments for the Company’s capital leases are summarized as follows: September 30, 2019 (in thousands) 2019 $ 92 2020 202 2021 1 Total future minimum lease payments $ 295

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2019
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Summary of Stock-Based Compensation Expense	The following table summarizes stock-based compensation expense: Three Months Ended September 30, Nine months Ended September 30, (in thousands) 2019 2018 2019 2018 Cost of revenue $ 44 $ 50 $ 133 $ 143 Research and development 219 339 999 1,149 Selling, general and administrative 408 404 1,249 1,259 Total $ 671 $ 793 $ 2,381 $ 2,551 Stock-based compensation from: Stock options $ 646 $ 752 $ 2,320 $ 2,395 Employee stock purchase plan 25 41 61 156 Total $ 671 $ 793 $ 2,381 $ 2,551
Summary of Company's Stock Option Activity	The following table summarizes the Company’s stock option activity during the nine months ended September 30, 2019: Number of Options (in thousands) Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Outstanding at December 31, 2018 4,155 $ 6.13 Granted 1,282 4.57 Exercised (120 ) 3.47 Cancelled (forfeited) (522 ) 6.52 Outstanding at September 30, 2019 4,795 $ 5.73 6.92 $ 15,431 Vested and expected to vest at September 30, 2019 4,245 $ 5.92 6.66 $ 13,156 Vested and exercisable at September 30, 2019 2,458 $ 7.04 5.08 $ 5,865
Weighted-Average Assumptions used to Estimate Fair Value of Stock Options	The table below sets forth the weighted-average assumptions used to estimate the fair value of stock options: Three Months Ended September 30, Nine months Ended September 30, 2019 2018 2019 2018 Risk-free interest rate 1.5 % 2.8 % 2.4 % 2.7 % Expected volatility 72.7 % 72.8 % 72.6 % 71.1 % Expected dividend yield 0 % 0 % 0 % 0 % Expected life of options in years 5.9 6.3 6.2 6.3

Net Income (Loss) Per Share o_2

Net Income (Loss) Per Share of Common Stock (Tables)	9 Months Ended
	Sep. 30, 2019
Earnings Per Share [Abstract]
Computation of Basic and Diluted Net Income (Loss) Per Share Attributable to Common Stockholders	The following table summarizes the computation of basic and diluted net income ( Three Months Ended September 30, Nine months Ended September 30, (in thousands, except per share data) 2019 2018 2019 2018 Net income (loss) $ 3,082 $ (10,662 ) $ (8,208 ) $ (32,770 ) Weighted average shares used to compute basic and diluted net income (loss) per share 31,595 31,437 31,534 27,288 Dilutive effect of employee stock option plans 903 — — — Dilutive weighted-average common shares outstanding 32,498 31,437 31,534 27,288 Basic net income (loss) per common share $ 0.10 $ (0.34 ) $ (0.26 ) $ (1.20 ) Diluted net income (loss) per common share $ 0.09 $ (0.34 ) $ (0.26 ) $ (1.20 )
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 because of their anti-dilutive impact to earnings per share: September 30, 2019 2018 (in thousands) Options to purchase common stock 4,795 4,119 Employee stock purchase plan 59 70 Total 4,854 4,189

Organization and Summary of S_4

Organization and Summary of Significant Accounting Policies - Additional Information (Detail)	1 Months Ended			3 Months Ended		9 Months Ended		12 Months Ended
	May 31, 2018USD ($)$ / sharesshares	Mar. 31, 2018USD ($)	Dec. 31, 2017USD ($)	Sep. 30, 2019USD ($)Financial_InstitutionCustomer	Sep. 30, 2018USD ($)Customer	Sep. 30, 2019USD ($)Financial_InstitutionCustomer	Sep. 30, 2018USD ($)Customer	Dec. 31, 2018USD ($)Financial_InstitutionCustomer	Jan. 31, 2017USD ($)
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Proceeds from sale of common stock							$ 39,522,000
Accumulated deficit				$ (209,508,000)		$ (209,508,000)		$ (201,300,000)
Restricted cash collateral									$ 200,000
Restricted cash				$ 200,000		$ 200,000		$ 200,000
Number of financial institutions cash and cash equivalents held | Financial_Institution				3		3		3
Number of customers accounted for receivables | Customer				2		2		3
Allowance for doubtful accounts receivable				$ 0		$ 0		$ 0
Revenue recognized				17,100,000		11,000,000
Reagent Protein Product [Member]
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Warranty reserve accrual				0		0		0
Level 1 [Member]
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Liabilities				0		0		0
Level 2 [Member]
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Liabilities				0		0		0
Assets				0		0		0
Level 3 [Member]
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Liabilities				0		0		0
Assets				$ 0		$ 0		$ 0
Sales Revenue, Net [Member]
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Number of customers accounted for revenue | Customer				2	2	2	2
Credit Availability Concentration Risk [Member]
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Cash				$ 32,700,000		$ 32,700,000
Restricted cash				$ 200,000		$ 200,000
Customer Concentration Risk [Member] | Accounts Receivable [Member]
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Concentration of risk percentage						91.00%		87.00%
Customer Concentration Risk [Member] | Sales Revenue, Net [Member]
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Concentration of risk percentage				89.00%	89.00%	70.00%	87.00%
Follow On Public Offering [Member]
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Stock Issued During Period, Shares, New Issues | shares	7,820,000
Offering price | $ / shares	$ 5.50
Option to purchase an additional shares to underwriters | shares	1,020,000
Net proceeds from public offering, after underwriting discounts and commissions and offering costs	$ 39,500,000
Jazz Pharmaceuticals Ireland Limited [Member]
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Collaboration agreement potential payments			$ 224,500,000
Revenue recognized from milestone				$ 11,000,000	$ 1,800,000	$ 13,700,000	$ 6,300,000
Revenue recognized								$ 2,700,000
Arcellx [Member] | Development, Evaluation and License Agreement [Member]
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Revenue recognized from milestone						1,800,000
Maximum [Member] | Arcellx [Member] | Development, Evaluation and License Agreement [Member]
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Amount of development fund eligible to receive						$ 2,600,000
Maximum [Member] | William Blair Company LLC [Member]
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Proceeds from sale of common stock		$ 20,000,000
Minimum [Member] | Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | Malta [Member]
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Concentration of risk percentage				10.00%		10.00%
Minimum [Member] | Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | Ireland [Member]
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Concentration of risk percentage				10.00%	10.00%	10.00%	10.00%
Minimum [Member] | Arcellx [Member] | Development, Evaluation and License Agreement [Member]
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Amount of development fund eligible to receive						$ 18,000,000

Organization and Summary of S_5

Organization and Summary of Significant Accounting Policies - Summary of Sales Revenue (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Concentration Risk [Line Items]
Revenue	$ 15,248	$ 3,570	$ 28,421	$ 11,506
Geographic Concentration Risk [Member]
Concentration Risk [Line Items]
Revenue	15,248	3,570	28,421	11,506
Geographic Concentration Risk [Member] | US [Member]
Concentration Risk [Line Items]
Revenue	877	1,371	4,172	3,877
Geographic Concentration Risk [Member] | Non - US [Member]
Concentration Risk [Line Items]
Revenue	$ 14,371	$ 2,199	$ 24,249	$ 7,629

Fair Value Measurements - Sched

Fair Value Measurements - Schedule of Assets Measured at Fair Value on Recurring Basis (Detail) - USD ($)	Sep. 30, 2019	Dec. 31, 2018
Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and money market funds	$ 32,718,000	$ 56,420,000
Total assets measured at fair value	32,718,000	56,420,000
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and money market funds	32,718,000	56,420,000
Total assets measured at fair value	32,718,000	56,420,000
Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	0	0
Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	$ 0	$ 0

Cash, Cash Equivalents and Re_3

Cash, Cash Equivalents and Restricted Cash - Summary of Reconciliation of Cash, Cash Equivalents and Restricted Cash (Detail) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents [Abstract]
Cash and cash equivalents	$ 32,518	$ 56,220
Restricted cash	200	200
Total cash, cash equivalents and restricted cash shown in the statement of cash flows	$ 32,718	$ 56,420

Cash, Cash Equivalents and Re_4

Cash, Cash Equivalents and Restricted Cash - Additional Information (Detail) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Restricted Cash And Cash Equivalents Items [Line Items]
Restricted cash balance	$ 200	$ 200
Credit Availability Concentration Risk [Member]
Restricted Cash And Cash Equivalents Items [Line Items]
Restricted cash balance	$ 200

Property and Equipment - Summar

Property and Equipment - Summary of Property and Equipment (Detail) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	$ 13,297	$ 11,634
Less: accumulated depreciation and amortization	(4,923)	(3,963)
Property and equipment, net	8,374	7,671
Furniture and Equipment [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	372	367
Computers and IT equipment [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	498	451
Purchased Software [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	464	375
Lab and Research Equipment [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	9,801	9,154
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	951	876
Construction in progress [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	1,128	328
Other Fixed Assets [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	$ 83	$ 83

Property and Equipment - Additi

Property and Equipment - Additional Information (Detail) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Property Plant And Equipment [Abstract]
Property and equipment assets under capital lease	$ 1	$ 1
Accumulated depreciation related to assets under capital lease	$ 0.2	$ 0.2

Property and Equipment - Deprec

Property and Equipment - Depreciation and Amortization Expense (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Property, Plant and Equipment [Line Items]
Total depreciation and amortization expense	$ 338	$ 291	$ 968	$ 849
Cost of revenue [Member]
Property, Plant and Equipment [Line Items]
Total depreciation and amortization expense	88	8	105	23
Research and development [Member]
Property, Plant and Equipment [Line Items]
Total depreciation and amortization expense	197	242	664	709
Selling, general and administrative [Member]
Property, Plant and Equipment [Line Items]
Total depreciation and amortization expense	$ 53	$ 41	$ 199	$ 117

Intangible Assets - Summary of

Intangible Assets - Summary of Intangible Assets (Detail) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items]
Total intangible assets, gross	$ 9,070	$ 9,070
Less: Accumulated amortization	(5,211)	(4,822)
Total intangible assets, net	3,859	4,248
Trade Names [Member]
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items]
Total intangible assets, gross	920	920
Customer Relationships [Member]
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items]
Total intangible assets, gross	3,750	3,750
Developed Technology [Member]
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items]
Total intangible assets, gross	$ 4,400	$ 4,400

Intangible Assets - Additional

Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Goodwill And Intangible Assets Disclosure [Abstract]
Amortization of intangible assets	$ 100	$ 100	$ 389	$ 400
Finite-Lived Intangible Assets, Amortization Expense, Next Rolling Twelve Months	500		500
Finite-Lived Intangible Assets, Amortization Expense, Rolling Year Two	500		500
Finite-Lived Intangible Assets, Amortization Expense, Rolling Year Three	500		500
Finite-Lived Intangible Assets, Amortization Expense, Rolling Year Four	500		500
Finite-Lived Intangible Assets, Amortization Expense, Rolling Year Five	$ 500		$ 500

Accrued Liabilities - Component

Accrued Liabilities - Components of Accrued Liabilities (Detail) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Other Liabilities Disclosure [Abstract]
Accrued vacation	$ 522	$ 493
Deferred rent	549	589
Accrued bonuses	1,618	1,748
Other accrued employee-related liabilities	525	302
Accrued professional fees	855	1,524
Accrued supplier liability	615	387
Accrued subcontractor costs	1,949	4,265
Obligation to Alvogen for raw materials	713
Other accrued liabilities	1,006	504
Total accrued liabilities	$ 8,352	$ 9,812

Accrued Liabilities - Additiona

Accrued Liabilities - Additional Information (Detail) - Liasion Agreeement With Alvogen [Member] - Alvogen Malta Operations Ltd [Member] - USD ($) $ in Millions	1 Months Ended	9 Months Ended
	May 31, 2019	Sep. 30, 2019
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Payment received for raw materials	$ 1.7
Raw materials shipped to Alvogen		$ 1
Balance due to Alvogen		$ 0.7

Significant Research and Deve_2

Significant Research and Development Agreements - Additional Information (Detail) $ in Thousands

1 Months Ended

3 Months Ended

9 Months Ended

12 Months Ended

Oct. 31, 2019USD ($)

Sep. 30, 2019USD ($)

May 31, 2019USD ($)

Feb. 28, 2019

Jun. 30, 2018USD ($)Milestone

Apr. 30, 2018USD ($)

Dec. 31, 2017USD ($)

Jan. 31, 2017USD ($)

Aug. 31, 2015USD ($)

Sep. 30, 2019USD ($)

Sep. 30, 2018USD ($)

Jun. 30, 2017

Sep. 30, 2019USD ($)

Sep. 30, 2018USD ($)

Dec. 31, 2018USD ($)

May 31, 2018USD ($)

Research and Development Arrangement, Contract to Perform for Others [Line Items]

Revenue

$ 15,248

$ 3,570

$ 28,421

$ 11,506

Obligation to Alvogen for raw materials

$ 713

713

713

Deferred revenue recognized

17,100

11,000

Biomedical Advanced Research And Development Authority [Member]

Research and Development Arrangement, Contract to Perform for Others [Line Items]

Revenue

200

1,300

$ 1,200

3,800

Funding Agreement [Member] | U.S. Department of Health and Human Services [Member]

Research and Development Arrangement, Contract to Perform for Others [Line Items]

Base program period

30 months

Agreement description

This agreement is a cost-plus fixed fee development contract valued at up to approximately $143.5 million, including a 30-month base period of performance of approximately $15.9 million, and eight option periods valued at a total of approximately $127.6 million. The base period of performance was initially from August 2015 through February 2018 and later extended through September 2018. BARDA exercised additional phases of the development contract effective January 2017, totaling $4.9 million and allowing for the continuing development of Px563L and RPA563. The period of performance for the two option periods was extended through September 2018 and December 2019.

Amount of contract eligible for payments

$ 1,700

Total amount of contract

$ 143,500

Agreement termination description

This agreement is subject to early termination and stop-work order in conformance with Federal Acquisition Regulations 52.249-6 and 52.242-15 whereupon BARDA may immediately terminate the agreement early for convenience or request the Company to stop all or any part of the work for a period of at least 90 days.

PF708 Drug Substance Batches and Pen Components [Member]

Research and Development Arrangement, Contract to Perform for Others [Line Items]

Revenue

2,953

357

$ 4,836

816

Base Period Performance Contracts [Member] | Funding Agreement [Member] | U.S. Department of Health and Human Services [Member]

Research and Development Arrangement, Contract to Perform for Others [Line Items]

Total amount of contract

$ 4,900

15,900

Option Period Contracts [Member] | Funding Agreement [Member] | U.S. Department of Health and Human Services [Member]

Research and Development Arrangement, Contract to Perform for Others [Line Items]

Total amount of contract

$ 127,600

Alvogen Malta Operations Ltd [Member]

Research and Development Arrangement, Contract to Perform for Others [Line Items]

Upfront payment

$ 2,500

Number of development milestone | Milestone

2

Upfront payments from development milestone

$ 2,500

Percentage of gross profit received from rating of therapeutic equivalent

50.00%

Percentage of gross profit received without rating of therapeutic equivalent

40.00%

Revenue

1,000

Upfront and Milestone Payments

1,500

Percentage of gross profit received from geography basis

60.00%

Expected Reimbursable Costs

1,600

1,600

Alvogen Malta Operations Ltd [Member] | PF708 Drug Substance Batches and Pen Components [Member]

Research and Development Arrangement, Contract to Perform for Others [Line Items]

Revenue

2,300

2,300

Collaboration agreement, transaction amount

$ 2,300

Alvogen Malta Operations Ltd [Member] | Subsequent Event [Member]

Research and Development Arrangement, Contract to Perform for Others [Line Items]

Revenue recognized from milestone

$ 2,500

Alvogen Malta Operations Ltd [Member] | Unbilled Revenues [Member]

Research and Development Arrangement, Contract to Perform for Others [Line Items]

Unbilled Receivables, Current

400

400

400

Alvogen Malta Operations Ltd [Member] | Billed Revenues [Member]

Research and Development Arrangement, Contract to Perform for Others [Line Items]

Invoiced bills receivable

1,200

1,200

1,200

Alvogen Malta Operations Ltd [Member] | NDA [Member]

Research and Development Arrangement, Contract to Perform for Others [Line Items]

Upfront payment

$ 2,500

Deferred revenue

2,500

One Time Support Payment

2,500

Alvogen Malta Operations Ltd [Member] | NDA [Member] | Subsequent Event [Member]

Research and Development Arrangement, Contract to Perform for Others [Line Items]

Revenue recognized from milestone

2,500

Alvogen Malta Operations Ltd [Member] | Support And Regulatory Milestone [Member]

Research and Development Arrangement, Contract to Perform for Others [Line Items]

Additional payment

$ 20,000

Alvogen Malta Operations Ltd [Member] | Liasion Agreeement With Alvogen [Member]

Research and Development Arrangement, Contract to Perform for Others [Line Items]

Payment Received for Raw Materials

$ 1,700

Raw Materials Shipped To Alvogen

1,000

Obligation to Alvogen for raw materials

700

700

700

NT Pharma Agreement [Member]

Research and Development Arrangement, Contract to Perform for Others [Line Items]

Upfront payment

$ 2,500

NT Pharma Agreement [Member] | NDA [Member]

Research and Development Arrangement, Contract to Perform for Others [Line Items]

Upfront payment

2,500

Deferred revenue

2,500

NT Pharma Agreement [Member] | Research and Development, Regulatory and Sales Related Milestones [Member]

Research and Development Arrangement, Contract to Perform for Others [Line Items]

Additional payment

$ 22,500

Jazz Pharmaceuticals Ireland Limited [Member]

Research and Development Arrangement, Contract to Perform for Others [Line Items]

Upfront payment

$ 5,000

Revenue recognized from milestone

11,000

$ 1,800

$ 13,700

$ 6,300

Upfront and milestone payment total

18,500

Payments of development achievement

13,500

Estimated selling price determination method

The estimated selling price for the pegaspargase product candidate and the hematology/oncology products was determined using an income approach. In determining the estimated selling price, the Company considered costs expected to be incurred for internal labor, burden rates, internal margins, and subcontractors

Upfront and option payment

15,000

Deferred revenue recognized

$ 2,700

Jazz Pharmaceuticals Ireland Limited [Member] | Minimum [Member]

Research and Development Arrangement, Contract to Perform for Others [Line Items]

Product development period

15 months

15 months

Jazz Pharmaceuticals Ireland Limited [Member] | Maximum [Member]

Research and Development Arrangement, Contract to Perform for Others [Line Items]

Product development period

35 months

32 months

Jazz Pharmaceuticals Ireland Limited [Member] | Pegaspargase Product [Member]

Research and Development Arrangement, Contract to Perform for Others [Line Items]

Revenue recognition, selling price

10,000

Jazz Pharmaceuticals Ireland Limited [Member] | Hematology Product [Member]

Research and Development Arrangement, Contract to Perform for Others [Line Items]

Revenue recognition, selling price

2,500

Remaining upfront payment

4,200

$ 4,200

$ 4,200

Jazz Pharmaceuticals Ireland Limited [Member] | Research and Development, Regulatory and Sales Related Milestones [Member]

Research and Development Arrangement, Contract to Perform for Others [Line Items]

Additional payment

177,500

Jazz Pharmaceuticals Ireland Limited [Member] | Research and Development Milestones [Member]

Research and Development Arrangement, Contract to Perform for Others [Line Items]

Upfront payment

$ 800

Revenue recognized from milestone

$ 11,000

$ 800

Milestone payments

18,500

Jazz Pharmaceuticals Ireland Limited [Member] | Research and Development Milestones [Member] | Subsequent Event [Member]

Research and Development Arrangement, Contract to Perform for Others [Line Items]

Payment Received for Raw Materials

$ 11,000

Jazz Pharmaceuticals Ireland Limited [Member] | Regulatory Milestones [Member]

Research and Development Arrangement, Contract to Perform for Others [Line Items]

Milestone payments

34,000

Jazz Pharmaceuticals Ireland Limited [Member] | Sales Milestones [Member]

Research and Development Arrangement, Contract to Perform for Others [Line Items]

Milestone payments

125,000

Jazz Pharmaceuticals Ireland Limited [Member] | Non-sales-related Milestones [Member]

Research and Development Arrangement, Contract to Perform for Others [Line Items]

Milestone payments

52,500

Jazz Pharmaceuticals Ireland Limited [Member] | Substantive Non Sales Related Milestone [Member]

Research and Development Arrangement, Contract to Perform for Others [Line Items]

Milestone payments

$ 18,500

Commitments and Contingencies -

Commitments and Contingencies - Schedule of Estimated Future Annual Minimum Lease Payment Obligations under Non-cancelable Leasing Arrangements, Including Facilities Lease (Detail) $ in Thousands	Sep. 30, 2019USD ($)
Commitments And Contingencies Disclosure [Abstract]
Capital Leases, 2019	$ 92
Capital Leases, 2020	202
Capital Leases, 2021	1
Total future minimum lease payments	$ 295

Commitments and Contingencies_2

Commitments and Contingencies - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2019
Office and Lab Equipment [Member]
Research and Development Arrangement, Contract to Perform for Others [Line Items]
Operating and capital lease expiration dates	various dates through 2021

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, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock based compensation expense	$ 671	$ 793	$ 2,381	$ 2,551
Cost of Revenues [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock based compensation expense	44	50	133	143
Research and Development [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock based compensation expense	219	339	999	1,149
Selling, General and Administrative [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock based compensation expense	408	404	1,249	1,259
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock based compensation expense	646	752	2,320	2,395
Employee Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock based compensation expense	$ 25	$ 41	$ 61	$ 156

Stock-Based Compensation - Su_2

Stock-Based Compensation - Summary of Company's Stock Option Activity (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	9 Months Ended
	Sep. 30, 2019
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Number of Options, beginning balance	4,155
Number of Options, Granted	1,282
Number of Options, Exercised	(120)
Number of Options, Cancelled (forfeited)	(522)
Number of Options, ending balance	4,795
Number of Options, Vested and expected to vest at September 30, 2019	4,245
Number of Options, Vested and exercisable at September 30, 2019	2,458
Weighted Average Exercise Price, Outstanding, beginning balance	$ 6.13
Weighted Average Exercise Price, Granted	4.57
Weighted Average Exercise Price, Exercised	3.47
Weighted Average Exercise Price, Cancelled (forfeited)	6.52
Weighted Average Exercise Price, Outstanding, ending balance	5.73
Weighted Average Exercise Price, Vested and expected to vest at September 30, 2019	5.92
Weighted Average Exercise Price, Vested and exercisable at September 30, 2019	$ 7.04
Weighted Average Remaining Contractual Term (in years), Outstanding	6 years 11 months 1 day
Weighted Average Remaining Contractual Term (in years), Vested and expected to vest at September 30, 2019	6 years 7 months 28 days
Weighted Average Remaining Contractual Term (in years), Vested and exercisable at September 30, 2019	5 years 29 days
Aggregate Intrinsic Value, Outstanding	$ 15,431
Aggregate Intrinsic Value, Vested and expected to vest at September 30, 2019	13,156
Aggregate Intrinsic Value, Vested and exercisable at September 30, 2019	$ 5,865

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Compensation Related Costs [Abstract]
Proceeds from exercise of stock options	$ 0.4	$ 0.1
Weighted average remaining contractual term	6 years 11 months 1 day
Weighted average grant date fair value, granted	$ 3.01	$ 2.37
Unrecognized compensation cost related to unvested stock options	$ 5.8
Unrecognized compensation cost related to unvested stock options, weighted average period for recognition	2 years 8 months 12 days

Stock-Based Compensation - Weig

Stock-Based Compensation - Weighted-Average Assumptions used to Estimate Fair Value of Stock Options (Detail)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
Risk-free interest rate	1.50%	2.80%	2.40%	2.70%
Expected volatility	72.70%	72.80%	72.60%	71.10%
Expected dividend yield	0.00%	0.00%	0.00%	0.00%
Expected life of options in years	5 years 10 months 24 days	6 years 3 months 18 days	6 years 2 months 12 days	6 years 3 months 18 days

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($)	3 Months Ended	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2019
Income Tax Disclosure [Abstract]
Income Tax Expense (Benefit)	$ 0	$ 0

Net Income (Loss) Per Share o_3

Net Income (Loss) Per Share of Common Stock - Computation of Basic and Diluted Net Income (Loss) Per Share Attributable to Common Stockholders (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Sep. 30, 2019	Sep. 30, 2018
Earnings Per Share [Abstract]
Net income (loss)	$ 3,082	$ (7,629)	$ (3,661)	$ (10,662)	$ (11,081)	$ (11,027)	$ (8,208)	$ (32,770)
Weighted average shares used to compute basic and diluted net income (loss) per share	31,595			31,437			31,534	27,288
Dilutive effect of employee stock option plans	903
Dilutive weighted-average common shares outstanding	32,498			31,437			31,534	27,288
Basic net income (loss) per common share	$ 0.10			$ (0.34)			$ (0.26)	$ (1.20)
Diluted net income (loss) per common share	$ 0.09			$ (0.34)			$ (0.26)	$ (1.20)

Net Income (Loss) Per Share o_4

Net Income (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, 2019	Sep. 30, 2018
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Securities excluded from the computation of diluted shares	4,854	4,189
Options to Purchase Common Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Securities excluded from the computation of diluted shares	4,795	4,119
Employee Stock Purchase Plan [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Securities excluded from the computation of diluted shares	59	70

Subsequent Events - Additional

Subsequent Events - Additional Information (Detail) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended			9 Months Ended
	Oct. 31, 2019	Dec. 31, 2019	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Subsequent Event [Line Items]
Revenue			$ 15,248	$ 3,570	$ 28,421	$ 11,506
License
Subsequent Event [Line Items]
Revenue			11,562	1,874	20,430	6,869
Alvogen Malta Operations Ltd [Member]
Subsequent Event [Line Items]
Revenue					1,000
Alvogen Malta Operations Ltd [Member] | Subsequent Event [Member]
Subsequent Event [Line Items]
Revenue recognized from milestone	$ 2,500
Alvogen Malta Operations Ltd [Member] | License | Forecast [Member]
Subsequent Event [Line Items]
Revenue		$ 2,500
Jazz Pharmaceuticals Ireland Limited [Member]
Subsequent Event [Line Items]
Revenue recognized from milestone			11,000	$ 1,800	$ 13,700	$ 6,300
Jazz Pharmaceuticals Ireland Limited [Member] | Subsequent Event [Member]
Subsequent Event [Line Items]
Payment received for achievement of development milestone	$ 11,000
Jazz Pharmaceuticals Ireland Limited [Member] | License
Subsequent Event [Line Items]
Revenue			$ 11,000