Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 24, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 001-36297 | |
Entity Registrant Name | Revance Therapeutics, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 77-0551645 | |
Entity Address, Address Line One | 7555 Gateway Boulevard | |
Entity Address, City or Town | Newark | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94560 | |
City Area Code | 510 | |
Local Phone Number | 742-3400 | |
Title of 12(b) Security | Common Stock, par value $0.001 per share | |
Trading Symbol | RVNC | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 45,108,360 | |
Entity Central Index Key | 0001479290 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 58,922 | $ 73,256 |
Short-term investments | 150,110 | 102,556 |
Accounts receivable | 5,000 | 27,000 |
Prepaid expenses and other current assets | 6,536 | 5,110 |
Total current assets | 220,568 | 207,922 |
Property and equipment, net | 14,917 | 14,449 |
Operating lease right of use assets | 27,078 | |
Restricted cash | 730 | 730 |
Other non-current assets | 2,519 | 3,247 |
TOTAL ASSETS | 265,812 | 226,348 |
CURRENT LIABILITIES | ||
Accounts payable | 6,902 | 8,434 |
Accruals and other current liabilities | 18,694 | 14,948 |
Deferred revenue, current portion | 5,241 | 8,588 |
Operating lease liabilities, current portion | 3,317 | |
Total current liabilities | 34,154 | 31,970 |
Derivative liability associated with the Medicis settlement | 2,892 | 2,753 |
Deferred revenue, net of current portion | 50,707 | 42,684 |
Operating lease liabilities, net of current portion | 26,778 | |
Deferred rent | 3,319 | |
TOTAL LIABILITIES | 114,531 | 80,726 |
Commitments and Contingencies (Note 7) | ||
STOCKHOLDERS’ EQUITY | ||
Convertible preferred stock, par value $0.001 per share — 5,000,000 shares authorized, and no shares issued and outstanding as of September 30, 2019 and December 31, 2018 | 0 | 0 |
Common stock, par value $0.001 per share — 95,000,000 shares authorized as of September 30, 2019 and December 31, 2018; 44,108,407 and 36,975,203 shares issued and outstanding as of September 30, 2019 and December 31, 2018, respectively | 44 | 37 |
Additional paid-in capital | 950,073 | 830,368 |
Accumulated other comprehensive income (loss) | 42 | (8) |
Accumulated deficit | (798,878) | (684,775) |
TOTAL STOCKHOLDERS’ EQUITY | 151,281 | 145,622 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 265,812 | $ 226,348 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Sep. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Convertible preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Convertible preferred stock authorized (shares) | 5,000,000 | 5,000,000 |
Convertible preferred stock issued (shares) | 0 | 0 |
Convertible preferred stock outstanding (shares) | 0 | 0 |
Common stock, par value (in dollar per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 95,000,000 | 95,000,000 |
Common stock, shares issued (in shares) | 44,108,407 | 36,975,203 |
Common stock, shares outstanding (in shares) | 44,108,407 | 36,975,203 |
Condensed Consolidated Statemen
Condensed Consolidated Statement of Operations and Comprehensive Loss (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Statement [Abstract] | ||||
Revenue | $ 46 | $ 2,362 | $ 324 | $ 3,242 |
Operating expenses: | ||||
Research and development | 25,847 | 21,848 | 75,368 | 66,968 |
General and administrative | 16,739 | 14,155 | 43,245 | 40,505 |
Total operating expenses | 42,586 | 36,003 | 118,613 | 107,473 |
Loss from operations | (42,540) | (33,641) | (118,289) | (104,231) |
Interest income | 1,329 | 996 | 4,495 | 3,099 |
Interest expense | 0 | 0 | 0 | (44) |
Change in fair value of derivative liability associated with the Medicis settlement | (68) | (45) | (139) | (150) |
Other expense, net | (130) | (144) | (170) | (626) |
Net loss | (41,409) | (32,834) | (114,103) | (101,952) |
Unrealized gain (loss) and adjustment on securities included in net loss | (74) | 90 | 50 | (133) |
Comprehensive loss | (41,483) | (32,744) | (114,053) | (102,085) |
Basic and diluted net loss | $ (41,409) | $ (32,834) | $ (114,103) | $ (101,952) |
Basic and diluted net loss (in dollar per share) | $ (0.96) | $ (0.91) | $ (2.67) | $ (2.82) |
Basic and diluted weighted-average number of shares used in computing net loss per share (in shares) | 43,314,831 | 36,272,445 | 42,730,983 | 36,116,745 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Shareholders' Equity (Unaudited) Statement - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Other Accumulated Comprehensive Gain (Loss) | Accumulated Deficit |
Beginning Balance (in shares) at Dec. 31, 2017 | 36,516,075 | ||||
Beginning Balance at Dec. 31, 2017 | $ 37 | $ 810,975 | $ 0 | $ (542,167) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Cumulative-effect adjustment from adoption of ASU 2018-07 | Accounting Standards Update 2018-07 | 40 | (40) | |||
Issuance of common stock upon exercise of stock options (in shares) | 284,094 | ||||
Issuance of restricted stock awards, net of cancellation (in shares) | 232,284 | ||||
Net settlement of restricted stock awards for employee taxes (in shares) | (59,126) | ||||
Issuance of common stock relating to employee stock purchase plan (in shares) | 18,795 | ||||
Stock-based compensation expense | 12,422 | ||||
Issuance of common stock upon exercise of stock options | 4,382 | ||||
Net settlement of restricted stock awards for employee taxes | (1,906) | ||||
Issuance of common stock relating to employee stock purchase plan | 439 | ||||
Unrealized gain (loss) and adjustment on securities included in net loss | $ (133) | (133) | |||
Net loss | $ (101,952) | (101,951) | |||
Ending Balance (in shares) at Sep. 30, 2018 | 36,992,122 | 36,992,122 | |||
Ending Balance at Sep. 30, 2018 | $ 182,098 | $ 37 | 826,352 | (133) | (644,158) |
Beginning Balance (in shares) at Jun. 30, 2018 | 36,917,723 | ||||
Beginning Balance at Jun. 30, 2018 | $ 37 | 821,326 | (223) | (611,284) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Cumulative-effect adjustment from adoption of ASU 2018-07 | Accounting Standards Update 2018-07 | 40 | (40) | |||
Issuance of common stock upon exercise of stock options (in shares) | 51,006 | ||||
Issuance of restricted stock awards, net of cancellation (in shares) | 26,598 | ||||
Net settlement of restricted stock awards for employee taxes (in shares) | (3,205) | ||||
Stock-based compensation expense | 4,092 | ||||
Issuance of common stock upon exercise of stock options | 987 | ||||
Net settlement of restricted stock awards for employee taxes | (93) | ||||
Unrealized gain (loss) and adjustment on securities included in net loss | 90 | 90 | |||
Net loss | $ (32,834) | (32,834) | |||
Ending Balance (in shares) at Sep. 30, 2018 | 36,992,122 | 36,992,122 | |||
Ending Balance at Sep. 30, 2018 | $ 182,098 | $ 37 | 826,352 | (133) | (644,158) |
Beginning Balance (in shares) at Dec. 31, 2018 | 36,975,203 | 36,975,203 | |||
Beginning Balance at Dec. 31, 2018 | $ 145,622 | $ 37 | 830,368 | (8) | (684,775) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock in connection with the 2019 follow-on offering (in shares) | 6,764,705 | ||||
Issuance of common stock in connection with the 2019 follow-on offering | $ 7 | 107,572 | |||
Issuance of common stock upon exercise of stock options (in shares) | 8,240 | ||||
Issuance of restricted stock awards, net of cancellation (in shares) | 400,720 | ||||
Net settlement of restricted stock awards for employee taxes (in shares) | (75,627) | ||||
Issuance of common stock relating to employee stock purchase plan (in shares) | 35,166 | ||||
Stock-based compensation expense | 12,882 | ||||
Issuance of common stock upon exercise of stock options | 93 | ||||
Net settlement of restricted stock awards for employee taxes | (1,229) | ||||
Issuance of common stock relating to employee stock purchase plan | 387 | ||||
Unrealized gain (loss) and adjustment on securities included in net loss | 50 | 50 | |||
Net loss | $ (114,103) | $ (114,103) | |||
Ending Balance (in shares) at Sep. 30, 2019 | 44,108,407 | 44,108,407 | 0 | ||
Ending Balance at Sep. 30, 2019 | $ 151,281 | $ 44 | 950,073 | 42 | $ (798,878) |
Beginning Balance (in shares) at Jun. 30, 2019 | 44,105,474 | ||||
Beginning Balance at Jun. 30, 2019 | $ 44 | 945,851 | 116 | (757,469) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of restricted stock awards, net of cancellation (in shares) | 9,697 | ||||
Net settlement of restricted stock awards for employee taxes (in shares) | (6,764) | ||||
Stock-based compensation expense | 4,303 | ||||
Net settlement of restricted stock awards for employee taxes | (81) | ||||
Unrealized gain (loss) and adjustment on securities included in net loss | (74) | (74) | |||
Net loss | $ (41,409) | $ (41,409) | |||
Ending Balance (in shares) at Sep. 30, 2019 | 44,108,407 | 44,108,407 | 0 | ||
Ending Balance at Sep. 30, 2019 | $ 151,281 | $ 44 | $ 950,073 | $ 42 | $ (798,878) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Shareholders' Equity (Unaudited) Consolidated Statements of Stockholders' Equity (Parenthetical) $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Follow On Offering | |
Payments of Stock Issuance Costs | $ 521 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss | $ (114,103) | $ (101,952) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation | 2,152 | 1,251 |
Amortization of discount on investments | (2,215) | (904) |
Stock-based compensation expense | 12,882 | 12,422 |
Gain on disposal of property and equipment | (7) | (1,480) |
Other non-cash operating activities | 418 | 178 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 22,000 | |
Prepaid expenses and other current assets | (1,426) | (5,141) |
Operating lease right of use assets | (2,414) | |
Other non-current assets | 999 | (1,919) |
Accounts payable | (1,050) | 793 |
Accruals and other liabilities | 3,532 | 1,889 |
Deferred revenue | 4,676 | 21,758 |
Operating lease liabilities | 1,903 | |
Net cash used in operating activities | (72,653) | (73,105) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchases of investments | (228,568) | (212,197) |
Purchases of property and equipment | (2,950) | (5,367) |
Proceeds from maturities of investments | 183,000 | 50,000 |
Proceeds from sales of property and equipment | 7 | 1,537 |
Payment for acquisition of in-process research and development | (100) | |
Net cash used in investing activities | (48,511) | (166,127) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from issuance of common stock in connection with the 2019 follow-on offering, net of commissions and discount | 108,100 | |
Proceeds from the exercise of stock options and employee stock purchase plan | 480 | 4,822 |
Net settlement of restricted stock awards for employee taxes | (1,229) | (1,906) |
Payment of offering costs | (521) | (366) |
Principal payments made on financing obligations | (932) | |
Net cash provided by financing activities | 106,830 | 1,618 |
NET DECREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | (14,334) | (237,614) |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH — Beginning of period | 73,986 | 283,476 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH — End of period | 59,652 | 45,862 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ||
Cash paid for income taxes | 3,000 | 0 |
SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING INFORMATION: | ||
Property and equipment purchases included in accounts payable and accruals | $ 313 | $ 920 |
The Company and Summary of Sign
The Company and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
The Company and Summary of Significant Accounting Policies | The Company and Summary of Significant Accounting Policies The Company Revance Therapeutics, Inc. (the “Company” or “Revance”) is a biotechnology company developing new innovations in neuromodulators for aesthetic and therapeutic indications. The Company’s lead product candidate, DaxibotulinumtoxinA for Injection (“DAXI”), combines a proprietary stabilizing peptide excipient with a highly purified botulinum toxin that does not contain human or animal-based components. The Company has successfully completed a Phase 3 program for DAXI in glabellar (frown) lines, demonstrating efficacy and long-lasting duration of effect, and is pursuing U.S. regulatory approval in 2020. The Company is also evaluating DAXI in forehead lines and lateral canthal lines (crow’s feet), as well as three therapeutic indications including cervical dystonia, adult upper limb spasticity, and plantar fasciitis, with plans to study migraine. Beyond DAXI, the Company has begun development of a biosimilar to BOTOX®, which would compete in the existing short-acting neuromodulator marketplace. Revance is dedicated to making a difference by transforming patient experiences. Since inception, the Company has devoted substantially all of its efforts to identifying and developing product candidates for the aesthetic and therapeutic pharmaceutical markets, recruiting personnel, raising capital, conducting preclinical and clinical development of, and manufacturing development for DAXI, DaxibotulinumtoxinA Topical, and the biosimilar to BOTOX®. The Company has incurred losses and negative cash flows from operations. The Company has not commenced commercial operations, has not generated product revenue to date, and will continue to incur significant research and development and other expenses related to its ongoing operations. For the three and nine months ended September 30, 2019 , the Company had a net loss of $41.4 million and $114.1 million , respectively. As of September 30, 2019 , the Company had a working capital surplus of $186.4 million and an accumulated deficit of $798.9 million . The Company has funded its operations primarily through the issuance and sale of common stock, convertible preferred stock, notes payable, and convertible notes . As of September 30, 2019 , the Company had capital resources of $209.0 million consisting of cash, cash equivalents, and investments. The Company believes that its existing capital resources will fund the operating plan through at least the next 12 months following the issuance of this Form 10-Q, and may identify additional capital resources to fund its operations. Basis of Presentation The accompanying Condensed Consolidated Financial Statements are unaudited, and reflect all adjustments which are, in the opinion of management, of a normal recurring nature and necessary for a fair statement of the results for the interim periods presented. The Condensed Consolidated Balance Sheet for the year ended December 31, 2018 was derived from audited Consolidated Financial Statements, but does not include all disclosures required by U.S. generally accepted accounting principles (“U.S. GAAP”). The interim results presented herein are not necessarily indicative of the results of operations that may be expected for the full fiscal year ending December 31, 2019 , or any other future period. The Condensed Consolidated Financial Statements should be read in conjunction with the Company’s audited Consolidated Financial Statements contained in its Annual Report on Form 10-K for the year ended December 31, 2018 , which was filed with the Securities and Exchange Commission (“SEC”), on February 28, 2019 . The Condensed Consolidated Financial Statements include the Company’s accounts and those of its wholly-owned subsidiaries, and have been prepared in conformity with U.S. GAAP. The Company operates in one segment. Principles of Consolidation The Condensed Consolidated Financial Statements include the accounts of the company and its wholly-owned subsidiaries. All intercompany transactions have been eliminated. Use of Estimates The preparation of the Condensed Consolidated Financial Statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the Condensed Consolidated Financial Statements and accompanying notes. Such management estimates include revenue recognition, deferred revenue, accruals including clinical trial accruals, stock-based compensation, fair value of derivative liability, and the valuation of deferred tax assets. The Company bases its estimates on historical experience and on assumptions that it believes are reasonable; however, actual results could significantly differ from those estimates. Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) which requires an entity to recognize right-of-use asset and lease liabilities arising from a lease for both financing and operating leases with terms greater than twelve months. In July 2018, the FASB issued ASU 2018-10, Leases (Topic 842), Codification Improvements and ASU 2018-11, Leases (Topic 842), Targeted Improvements , to provide additional guidance for the Topic 842 adoption. ASU 2018-10 clarifies certain provisions and correct unintended applications of the guidance such as the application of implicit rate, lessee reassessment of lease classification, and certain transition adjustments that should be recognized to earnings rather than to stockholders’ equity. ASU 2018-11 provides an alternative transition method to allow entities initially applying Topic 842 at the adoption date, rather than at the beginning of the earliest comparative period presented, and recognizing the cumulative effect of applying the new standard as an adjustment to beginning retained earnings in the year of adoption while continuing to present all prior periods under previous lease accounting guidance. ASU 2018-11 also provides a number of optional practical expedients in transition. In March 2019, the FASB issued ASU 2019-01, Leases (Topic 842): Codification Improvements . The Company evaluated ASU 2019-01 in its entirety and determined that Issue 3, Transition disclosures related to Topic 250, Accounting Changes and Error Corrections , is the only provision that currently applies to the Company. Issue 3 of ASU 2019-01 exempts certain interim disclosures in the fiscal year of adoption. ASU 2018-11, ASU 2018-10, ASU 2016-02, and Issue 3 of ASU 2019-01 (collectively, “the new lease standards”) are effective for fiscal years beginning after December 15, 2018, with early adoption permitted. The Company has elected the transition method under ASU 2018-11 at the adoption date of January 1, 2019 on a modified retrospective basis and will not restate comparative periods. The Company has also elected all of the available practical expedients except the practical expedient allowing the use of hindsight in determining the lease term and assessing impairment of right-of-use assets based on all facts and circumstances through the effective date of the new standard. The Company has elected the recognition exemption for short-term leases for all leases that qualify. Under this exemption, the Company will not recognize right-of-use assets or lease liabilities for those leases that qualify as a short-term lease. For real estate leases, the Company did not elect the practical expedient to combine lease and non-lease components, therefore the Company accounts for lease and non-lease components separately. For equipment leases, lease and non-lease components are accounted for as a single lease component. The Company recognized $24.7 million and $28.2 million as total right-of-use assets and total lease liabilities, respectively, on its Condensed Consolidated Balance Sheet as of January 1, 2019 for its existing operating lease agreements for the office and manufacturing spaces in Newark, California and equipment leases. The existing deferred rent liabilities of $3.5 million associated with the same lease agreements was reversed as of January 1, 2019. Recent Accounting Pronouncements In August 2018, the FASB issued ASU 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 . The amendments in ASU 2018-15 align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). Accordingly, the amendments require an entity (customer) in a hosting arrangement that is a service contract to follow the guidance in Subtopic 350-40 to determine which implementation costs to capitalize as an asset related to the service contract and which costs to expense. ASU 2018-15 is effective for fiscal years beginning after December 15, 2019 with early adoption permitted. The Company intends to adopt ASU 2018-15 prospectively when it becomes effective on January 1, 2020. The Company’s Condensed Consolidated Financial Statements and disclosures before adoption are not expected to be impacted as a result of the adoption. |
Medicis Settlement
Medicis Settlement | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Medicis Settlement | Medicis Settlement In July 2009, the Company and Medicis Pharmaceutical Corporation (“Medicis”) entered into a license agreement granting Medicis worldwide aesthetic and dermatological rights to the Company’s investigational botulinum toxin type A product candidate. In October 2012, the Company entered into a settlement and termination agreement with Medicis. The terms of the settlement provided for the reacquisition of the rights related to all territories of DAXI and DaxibotulinumtoxinA Topical from Medicis and for consideration payable by the Company to Medicis of up to $25.0 million, comprised of (i) an upfront payment of $7.0 million, which was paid in 2012, (ii) a proceeds sharing arrangement payment of $14.0 million due upon specified capital raising achievements by the Company, of which $6.9 million was paid in 2013 and $7.1 million in 2014, and (iii) a product approval payment of $4.0 million to be paid upon the achievement of regulatory approval for DAXI or DaxibotulinumtoxinA Topical by the Company. In December 2012, Medicis was subsequently acquired by Valeant Pharmaceuticals International Inc., now known as Bausch Health Companies Inc. The Company determined that the settlement provisions related to the proceeds sharing arrangement payment in (ii) above and product approval payment in (iii) above were derivative instruments that require fair value accounting as a liability and periodic fair value remeasurements until settled. As of September 30, 2019 , the fair value of the Company’s liability for the product approval payment was $2.9 million , which was measured using a term of 1.1 years , a risk-free rate of 1.7% and a credit risk adjustment of 7.5% . As of December 31, 2018 , the fair value of the Company’s liability for the product approval payment was $2.7 million , which was measured using a term of 1.5 years , a risk-free rate of 2.6% and a credit risk adjustment of 8.0% . The term is based on an expected Biologics License Application (“BLA”) approval in 2020. For the nine months ended September 30, 2019 and 2018, no payment was made for the product approval payment. |
Revenue
Revenue | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Revenue | Revenue Mylan Collaboration and License Agreement The Company and Mylan Ireland Limited, a wholly-owned indirect subsidiary of Mylan N.V. (“Mylan”) entered into a collaboration agreement in February 2018 (the “Mylan Collaboration”), pursuant to which the companies will collaborate exclusively, on a world-wide basis (excluding Japan), to develop, manufacture, and commercialize a biosimilar to the branded biologic product (onabotulinumtoxinA) marketed as BOTOX®. Under the Mylan Collaboration, Mylan paid the Company a non-refundable upfront payment of $25.0 million with additional contingent payments of up to $100.0 million in the aggregate, upon the achievement of specified clinical and regulatory (i.e., biosimilar biological pathway) milestones and of specified, tiered sales milestones of up to $225.0 million . The upfront payment does not represent a financing component for the transfer of goods or services. The contingent payments would be payable following Mylan’s decision (“Continuation Decision”) to continue development services for the Initial Phase and Phase 3 clinical trials and upon meeting certain milestones. In addition, Mylan would pay the Company low to mid double-digit royalties on any sales of the biosimilar in the U.S., mid double-digit royalties on any sales in Europe, and high single-digit royalties on any sales in other areas excluding Japan. However, the Company agreed to waive royalties for U.S. sales, up to a limit of $50.0 million in annual sales, during the first approximately four years after commercialization to defray launch costs. In August 2019, the Company and Mylan entered into an amendment (the “Mylan Amendment”) to the Mylan Collaboration, pursuant to which, among other things, the Company has agreed to extend the period of time for Mylan to make the Continuation Decision under the Mylan Collaboration as to whether to continue the development and commercialization of the biosimilar beyond the initial development plan, for which both parties prepared and conducted the Biosimilar Initial Advisory Meeting (“BIAM”) with the U.S. Food and Drug Administration (“FDA”). In accordance with the Mylan Amendment, Mylan is required to notify the Company of the Continuation Decision on or before the later of (i) April 30, 2020 or (ii) 30 calendar days from the date that the Company provides Mylan with certain deliverables, and Mylan has agreed to make an incremental payment to the Company in the amount of $5.0 million . Revenue Recognition As of the Mylan Amendment date, the Company has the following unfulfilled non-distinct performance obligations within the Mylan Collaboration: (1) intellectual property (“IP”) license for technology and know–how related to the biosimilar, (2) the performance of development services after the Initial Phase for the biosimilar through the filing of an Investigational New Drug (“IND”) application by the Company, and (3) manufacturing services to provide drug substance or drug product during the development and commercialization periods. The performance obligation related to the initial development services for the biosimilar up to the BIAM was completed in February 2019. In accordance with ASC 606, transaction price is defined as the amount of consideration to which an entity expects to be entitled in exchange for promised goods or services to a customer. The initial estimated transaction price was $81.0 million which included a $25.0 million upfront payment, $40.0 million of development milestones, and the estimated variable consideration for cost-sharing payments from Mylan. The Company re-evaluates the transaction price at each reporting period. As of September 30, 2019 , the transaction price allocated to the unfulfilled performance obligations is $107.0 million , which incorporates the impact from the incremental payment of $5.0 million and estimated variable consideration for cost-sharing payments resulting from the Mylan Amendment. The Company recognizes revenue and estimates deferred revenue based on the cost of services incurred over the total estimated cost of services to be provided for the development period. As a result of the extended period of time for Mylan to make the Continuation Decision provided in the Mylan Amendment, both short-term and long-term deferred revenue have been adjusted accordingly to reflect the impact of the extension. For revenue recognition purposes, the development period is estimated to extend through 2024. However, it is possible that this period will change and is assessed at each reporting date. For the three and nine months ended September 30, 2019 , the Company recognized revenue related to development services of less than $0.1 million and $0.3 million , respectively. For the three and nine months ended September 30, 2018 , the Company recognized revenue related to development services of $2.4 million and $3.2 million , respectively. As of September 30, 2019 and December 31, 2018 , the Company estimated short-term deferred revenue of $5.2 million and $8.6 million , respectively; and long-term deferred revenue of $20.7 million and $12.7 million , respectively. Fosun License Agreement The Company and Shanghai Fosun Pharmaceutical Industrial Development Co., Ltd., a wholly-owned subsidiary of Shanghai Fosun Pharmaceutical (Group) Co., Ltd (“Fosun”) entered into a license agreement (the “Fosun License Agreement”) in December 2018, whereby the Company has granted Fosun the exclusive rights to develop and commercialize the Company’s proprietary DAXI in mainland China, Hong Kong and Macau (the “Fosun Territory”) and certain sublicense rights. Under the Fosun License Agreement, the Company received a non-refundable upfront payment of $30.0 million net of foreign withholding tax of $3.0 million from Fosun in January 2019. The Company is also eligible to receive (i) additional contingent payments of up to $230.5 million upon the achievement of specified milestones, and (ii) tiered royalty payments in low double-digit to high-teen percentages on annual net sales. Revenue Recognition In accordance with ASC 606, transaction price is defined as the amount of consideration to which an entity expects to be entitled in exchange for promised goods or services to a customer. The Company estimated the transaction price for the Fosun License Agreement using the most likely amount method. The Company evaluated all of the variable payments to be received during the duration of the contract, which included payments from specified milestones, royalties, and estimated supplies to be delivered, and concluded only a certain milestone of $1.0 million was included in the transaction price. The Company will re-evaluate the transaction price at each reporting period and upon a change in circumstances. As of September 30, 2019 , the transaction price allocated to unfulfilled performance obligation is $31.0 million . The Company will recognize revenue on the single performance obligation as control of the manufactured product is supplied to Fosun. For the nine months ended September 30, 2019 , no revenue has been recognized from the Fosun License Agreement. As of September 30, 2019 and December 31, 2018 , substantially all of the $30.0 million non-refundable upfront payment was included in long-term deferred revenue. |
Cash Equivalents and Investment
Cash Equivalents and Investments | 9 Months Ended |
Sep. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Cash Equivalents and Investments | Cash Equivalents and Investments The Company’s cash equivalents and investments consist of money market funds, U.S. treasury securities, U.S. government agency obligations, commercial paper, and overnight repurchase agreements which are classified as available-for-sale securities. The following table is a summary of amortized cost, unrealized gains and losses, and fair value: September 30, 2019 December 31, 2018 Unrealized Unrealized (in thousands) Cost Gains Fair Value Cost Gains Losses Fair Value Money market funds $ 40,153 $ — $ 40,153 $ 38,354 $ — $ — $ 38,354 U.S. treasury securities 75,326 27 75,353 80,844 5 (5 ) 80,844 U.S. government agency obligations 32,867 15 32,882 52,586 — (8 ) 52,578 Commercial paper 43,873 — 43,873 — — — — Overnight repurchase agreements 14,501 — 14,501 — — — — Total cash equivalents and available-for-sale securities $ 206,720 $ 42 $ 206,762 $ 171,784 $ 5 $ (13 ) $ 171,776 Classified as: Cash equivalents $ 56,652 $ 69,220 Short-term investments 150,110 102,556 Total cash equivalents and available-for-sale securities $ 206,762 $ 171,776 As of September 30, 2019 and December 31, 2018, the Company has no other-than-temporary impairments on its available-for-sale securities. Related Party Transactions The Company had no related party transactions for the nine months ended September 30, 2019 . As of December 31, 2018 , JPMorgan Chase & Co. and its wholly owned subsidiaries JPMorgan Chase Bank, National Association (NA), J.P. Morgan Investment Management Inc., and JPMorgan Asset Management (UK) Limited held approximately 3.8 million shares or 10.3% of the Company’s outstanding common stock. J.P. Morgan Securities LLC is an affiliate of JPMorgan Chase Bank, NA, and it acts as a custodian and trustee for certain investments of the Company. As of December 31, 2018, cash, cash equivalents, and investments of $87.7 million were held in an investment account with J.P. Morgan Securities LLC. As of September 30, 2019 , JPMorgan Chase & Co. and its wholly owned subsidiaries owned less than 10% |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The Company determines the fair value of certain financial assets and liabilities using three levels of inputs as follows: • Level 1 — Observable inputs, such as quoted prices in active markets for identical assets or liabilities; • Level 2 — Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and • Level 3 — Valuations based on unobservable inputs to the valuation methodology and including data about assumptions market participants would use in pricing the asset or liability based on the best information available under the circumstances. The following table summarizes, for assets and liabilities measured at fair value, the respective fair value and the classification by level of input within the fair value hierarchy: September 30, 2019 (in thousands) Fair Value Level 1 Level 2 Level 3 Assets Money market funds $ 40,153 $ 40,153 $ — $ — U.S. treasury securities 75,353 75,353 — — U.S. government agency obligations 32,882 — 32,882 — Commercial paper 43,873 — 43,873 — Overnight repurchase agreements 14,501 — 14,501 — Total assets measured at fair value $ 206,762 $ 115,506 $ 91,256 $ — Liabilities Derivative liability associated with the Medicis settlement $ 2,892 $ — $ — $ 2,892 Total liabilities measured at fair value $ 2,892 $ — $ — $ 2,892 December 31, 2018 (in thousands) Fair Value Level 1 Level 2 Level 3 Assets Money market funds $ 38,354 $ 38,354 $ — $ — U.S. treasury securities 80,844 80,844 — — U.S. government agency obligations 52,578 — 52,578 — Total assets measured at fair value $ 171,776 $ 119,198 $ 52,578 $ — Liabilities Derivative liability associated with the Medicis settlement $ 2,753 $ — $ — $ 2,753 Total liabilities measured at fair value $ 2,753 $ — $ — $ 2,753 The Company classifies U.S. government agency obligations, commercial paper, and overnight repurchase agreements within Level 2 because it uses alternative pricing sources and models utilizing market observable inputs to determine their fair values. The following table summarizes the change in the fair value of the Company’s Level 3 financial instrument: (in thousands) Derivative Liability Associated with the Medicis Settlement Fair value as of December 31, 2018 $ 2,753 Change in fair value 139 Fair value as of September 30, 2019 $ 2,892 The fair value of the derivative liability associated with the Medicis settlement was determined by estimating the timing and probability of the related regulatory approval and multiplying the payment amount by this probability percentage and a discount factor based primarily on the estimated timing of the payment and a credit risk adjustment (Note 3). Generally, increases or decreases in these unobservable inputs would result in a directionally similar impact to the fair value measurement of this derivative instrument. The significant unobservable inputs used in the fair value measurement of the product approval payment derivative are the expected timing and probability of the payments at the valuation date and the credit risk adjustment. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | Leases The Company has non-cancelable operating leases for facilities for research, manufacturing, and administrative functions, and equipment operating leases. One of the facility operating leases commenced in February 2019. As of September 30, 2019 , the weighted average remaining lease term is 7.2 years . The monthly payments for the facility lease escalate over the facility lease term with the exception of a decrease in payments at the beginning of 2022. The Company has options to extend the facility operating leases for up to 14 years. The Company’s lease contracts do not contain termination options, residual value guarantees or restrictive covenants. The operating lease costs are summarized as follows: Three Months Ended Nine Months Ended (in thousands) September 30, 2019 September 30, 2019 Operating lease cost $ 1,425 $ 4,193 Variable lease cost (1) 298 886 Total operating lease costs $ 1,723 $ 5,079 (1) Variable lease cost includes management fees, common area maintenance, property taxes, and insurance, which are not included in the lease liabilities and are expensed as incurred. As of September 30, 2019 , maturities of the Company’s operating lease liabilities are as follows: Year Ending December 31, (in thousands) 2019 remaining three months $ 1,633 2020 6,735 2021 6,942 2022 5,464 2023 5,557 2024 and thereafter 17,959 Total operating lease payments 44,290 Less imputed interest (1) (14,195 ) Present value of operating lease payments $ 30,095 (1) The Company’s lease contracts do not provide a readily determinable implicit rate. The imputed interest was based on a weighted average discount rate of 12.0% , which represents the estimated incremental borrowing based on the information available at the adoption or commencement dates. As of December 31, 2018 , the aggregate total future minimum lease payments under non-cancelable operating leases were as follows: Year Ending December 31, (in thousands) 2019 $ 5,826 2020 6,011 2021 6,196 2022 4,696 2023 and thereafter 20,173 Total payments $ 42,902 Supplemental cash flow information related to the operating leases was as follows: Nine Months Ended (in thousands) September 30, 2019 Cash paid for amounts included in the measurement of operating lease liabilities $ 4,704 Right-of-use assets obtained in exchange for operating lease liabilities $ 3,890 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Purchase Commitments The Company and Ajinomoto Althea, Inc. (“Althea”) are parties to a Technology Transfer, Validation and Commercial Fill/Finish Services Agreement (the “Althea Services Agreement”), under which Althea provides the Company a contract development and manufacturing organization, which allows the Company to have expanded capacity and a second source for drug product manufacturing in order to support a global launch of DAXI. Under the Althea Services Agreement, the initial term is to 2024, unless terminated sooner by either company, and the Company has minimum purchase obligations based on its production forecasts. As of September 30, 2019 , non-refundable advanced payments of $1.3 million under the Althea Services Agreement have been recorded in prepaid expense on the Company’s Condensed Consolidated Balance Sheets. The remaining services can be canceled at any time, with the Company required to pay costs incurred through the cancellation date. Contingencies The Company is obligated to pay $2.0 million milestone payment to a developer of botulinum toxin, List Biological Laboratories, Inc. (“List Laboratories”), when a certain regulatory milestone is achieved. As of September 30, 2019 , the milestone has not been achieved. The Company is also obligated to pay royalties to List Laboratories on future sales of botulinum toxin products. The Company and Botulinum Toxin Research Associates, Inc. (“BTRX”) are parties to an asset purchase agreement (the “BTRX Purchase Agreement”), under which the Company is obligated to pay up to $16.0 million to BTRX upon the satisfaction of milestones relating to the Company’s product revenue, intellectual property, and clinical and regulatory events. As of September 30, 2019 , a one-time intellectual property development milestone liability of $1.0 million has been recorded in accruals on the Company’s Condensed Consolidated Balance Sheets. The Company and BioSentinel, Inc. (“BioSentinel”) are parties to an agreement under which the Company in-licenses BioSentinel’s technology and expertise for research, development and manufacturing purposes. The Company is obligated to pay BioSentinel minimum quarterly use fees, and a one-time milestone payment of $0.3 million when regulatory approval is achieved. As of September 30, 2019 , the milestone has not been achieved. Indemnification The Company has standard indemnification agreements in the ordinary course of business. Under these indemnification agreements, the Company indemnifies, holds harmless, and agrees to reimburse the indemnified parties for losses suffered or incurred by the indemnified party, in connection with any trade secret, copyright, patent or other intellectual property infringement claim by any third party with respect to its technology. The term of these indemnification agreements is generally perpetual after the execution of the agreements. The maximum potential amount of future payments the Company is obligated to pay under these indemnification agreements is not determinable because it involves claims that may be made against the Company in the future, but have not been made. The Company has not incurred costs to defend lawsuits or settle claims related to these indemnification agreements. The Company has indemnification agreements with its directors and officers that may require the Company to indemnify them against liabilities that may arise by reason of their status or service as directors or officers, other than liabilities arising from willful misconduct of the individual. For the nine months ended September 30, 2019 , no amounts associated with the indemnification agreements have been recorded. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Common Stock Warrants As of September 30, 2019 and December 31, 2018 , 34,113 common stock warrants were outstanding at an exercise price of $14.95 per share, which expire in 2020. Stock Option Plan 2014 Equity Incentive Plan (“2014 EIP”) On January 1, 2019, the number of shares of common stock reserved for issuance under the 2014 EIP increased by 1,479,008 shares. For the nine months ended September 30, 2019 , 1,202,650 stock options and 513,225 restricted stock awards were granted under the 2014 EIP. As of September 30, 2019 , 2,018,200 shares were available for issuance under the 2014 EIP. 2014 Inducement Plan (the “2014 IN”) For the nine months ended September 30, 2019 , no stock options or restricted stock awards were granted under the 2014 IN. As of September 30, 2019 , 170,019 shares were available for issuance under the 2014 IN. 2014 Employee Stock Purchase Plan (the “2014 ESPP”) On January 1, 2019, the number of shares of common stock reserved for issuance under the 2014 ESPP increased by 300,000 shares. As of September 30, 2019 , 1,443,774 shares were available for issuance under the 2014 ESPP. Stock-Based Compensation Stock-based compensation expense was allocated as follows: (in thousands) Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Research and development $ 2,106 $ 1,836 $ 6,438 $ 5,627 General and administrative 2,197 2,256 6,444 6,795 Total stock-based compensation expense $ 4,303 $ 4,092 $ 12,882 $ 12,422 Net Loss per Share The Company’s basic net loss per share is calculated by dividing the net loss by the weighted average number of shares of common stock outstanding for the period, which includes the vested restricted stock awards. The diluted net loss per share is calculated by giving effect to all potential dilutive common stock equivalents outstanding for the period. For purposes of this calculation, outstanding stock options, outstanding common stock warrants, unvested restricted stock awards, and shares of common stock expected to be purchased under 2014 ESPP are considered common stock equivalents, which were excluded from the computation of diluted net loss per share because including them would have been antidilutive. Common stock equivalents that were excluded from the computation of diluted net loss per share are presented as below: As of September 30, 2019 2018 Outstanding common stock options 4,402,244 3,491,751 Outstanding common stock warrants 34,113 34,113 Unvested restricted stock awards 788,125 679,541 Shares of common stock expected to be purchased on December 31 under the 2014 ESPP 45,123 16,712 Follow-On Public Offering In January 2019, the Company completed the 2019 follow-on public offering, pursuant to which the Company issued 6,764,705 shares of common stock at $17.00 per share, including the exercise of the underwriters’ over-allotment option to purchase 882,352 additional shares of common stock, for aggregate net proceeds of $107.6 million , after deducting underwriting discounts, commissions and other offering expenses. At-The-Market Offering The Company and Cantor Fitzgerald & Co. (“Cantor Fitzgerald”) are parties to a Controlled Equity Offering sales agreement (the “2018 ATM Agreement”), under which the Company may offer and sell common stock having aggregate proceeds of up to $125.0 million through Cantor Fitzgerald as its sales agent. Under the 2018 ATM Agreement, sales of common stock through Cantor Fitzgerald will be made by means of ordinary brokers’ transactions on the Nasdaq Global Market or otherwise at market prices prevailing at the time of sale, in block transactions, or as otherwise agreed upon by the Company and Cantor Fitzgerald. From time to time, Cantor Fitzgerald may sell the common stock based upon the Company’s instructions, and the Company will pay a commission to Cantor Fitzgerald of up to 3.0% of the gross sales proceeds of any common stock sold through Cantor Fitzgerald. For the nine months ended September 30, 2019 and 2018, no |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes California State Apportionment In 2018, the Company petitioned the California Franchise Tax Board for an alternative apportionment percentage due to the insignificant apportionment percentage derived from the single sales factor methodology for California. In January 2019, the California Franchise Tax Board approved the use of an alternative apportionment method. The Company’s net operating losses (“NOL”) in California is estimated to increase by approximately $219 million as a result of the change in apportionment model. The Company has increased its deferred tax assets by $15 million with a corresponding offsetting adjustment to its valuation allowance. There is no impact to the Company’s net loss in the period as a result of the adjustment. |
Subsequent Event
Subsequent Event | 9 Months Ended |
Sep. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event Effective as of October 13, 2019 , the Company’s Board of Directors (the “Board”) appointed Mark J. Foley as the Company’s President, Chief Executive Officer and Principal Executive Officer. In connection with his appointment, the Company has entered into an executive employment agreement, pursuant to which Mr. Foley will initially receive an annual base salary of $650,000 and an annual target bonus of 75% of his base salary. The Board also approved the grant of certain equity awards to Mr. Foley under the 2014 EIP. Mr. Foley received (i) a stock option to purchase 740,000 shares of the Company’s common stock at $12.18 per share, (ii) 200,000 shares of restricted common stock awards of the Company and (iii) 860,000 shares of performance-based common stock awards. The performance-based common stock awards will vest based on the Company’s certain market and performance conditions. Effective as of October 11, 2019 , the Company entered into a separation agreement with L. Daniel Browne providing for (i) a release of claims against the Company, (ii) cash severance payments to Mr. Browne in an amount equal to fifteen months of Mr. Browne’s 2019 base salary; and (iii) certain health care continuation benefits. The separation agreement also provides for an extension of the post-termination exercise period for all vested stock options held by Mr. Browne through the earlier of a Change in Control (as defined in the 2014 EIP) or January 31, 2021 . The Company is currently evaluating the effect on its Consolidated Financial Statements of Mr. Foley’s equity compensation and the modification to Mr. Browne’s vested stock options. |
The Company and Summary of Si_2
The Company and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying Condensed Consolidated Financial Statements are unaudited, and reflect all adjustments which are, in the opinion of management, of a normal recurring nature and necessary for a fair statement of the results for the interim periods presented. The Condensed Consolidated Balance Sheet for the year ended December 31, 2018 was derived from audited Consolidated Financial Statements, but does not include all disclosures required by U.S. generally accepted accounting principles (“U.S. GAAP”). The interim results presented herein are not necessarily indicative of the results of operations that may be expected for the full fiscal year ending December 31, 2019 , or any other future period. The Condensed Consolidated Financial Statements should be read in conjunction with the Company’s audited Consolidated Financial Statements contained in its Annual Report on Form 10-K for the year ended December 31, 2018 , which was filed with the Securities and Exchange Commission (“SEC”), on February 28, 2019 . The Condensed Consolidated Financial Statements include the Company’s accounts and those of its wholly-owned subsidiaries, and have been prepared in conformity with U.S. GAAP. The Company operates in one segment. |
Principles of Consolidation | Principles of Consolidation The Condensed Consolidated Financial Statements include the accounts of the company and its wholly-owned subsidiaries. All intercompany transactions have been eliminated. |
Use of Estimates | Use of Estimates The preparation of the Condensed Consolidated Financial Statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the Condensed Consolidated Financial Statements and accompanying notes. Such management estimates include revenue recognition, deferred revenue, accruals including clinical trial accruals, stock-based compensation, fair value of derivative liability, and the valuation of deferred tax assets. The Company bases its estimates on historical experience and on assumptions that it believes are reasonable; however, actual results could significantly differ from those estimates. |
Accounting Pronouncements | Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) which requires an entity to recognize right-of-use asset and lease liabilities arising from a lease for both financing and operating leases with terms greater than twelve months. In July 2018, the FASB issued ASU 2018-10, Leases (Topic 842), Codification Improvements and ASU 2018-11, Leases (Topic 842), Targeted Improvements , to provide additional guidance for the Topic 842 adoption. ASU 2018-10 clarifies certain provisions and correct unintended applications of the guidance such as the application of implicit rate, lessee reassessment of lease classification, and certain transition adjustments that should be recognized to earnings rather than to stockholders’ equity. ASU 2018-11 provides an alternative transition method to allow entities initially applying Topic 842 at the adoption date, rather than at the beginning of the earliest comparative period presented, and recognizing the cumulative effect of applying the new standard as an adjustment to beginning retained earnings in the year of adoption while continuing to present all prior periods under previous lease accounting guidance. ASU 2018-11 also provides a number of optional practical expedients in transition. In March 2019, the FASB issued ASU 2019-01, Leases (Topic 842): Codification Improvements . The Company evaluated ASU 2019-01 in its entirety and determined that Issue 3, Transition disclosures related to Topic 250, Accounting Changes and Error Corrections , is the only provision that currently applies to the Company. Issue 3 of ASU 2019-01 exempts certain interim disclosures in the fiscal year of adoption. ASU 2018-11, ASU 2018-10, ASU 2016-02, and Issue 3 of ASU 2019-01 (collectively, “the new lease standards”) are effective for fiscal years beginning after December 15, 2018, with early adoption permitted. The Company has elected the transition method under ASU 2018-11 at the adoption date of January 1, 2019 on a modified retrospective basis and will not restate comparative periods. The Company has also elected all of the available practical expedients except the practical expedient allowing the use of hindsight in determining the lease term and assessing impairment of right-of-use assets based on all facts and circumstances through the effective date of the new standard. The Company has elected the recognition exemption for short-term leases for all leases that qualify. Under this exemption, the Company will not recognize right-of-use assets or lease liabilities for those leases that qualify as a short-term lease. For real estate leases, the Company did not elect the practical expedient to combine lease and non-lease components, therefore the Company accounts for lease and non-lease components separately. For equipment leases, lease and non-lease components are accounted for as a single lease component. The Company recognized $24.7 million and $28.2 million as total right-of-use assets and total lease liabilities, respectively, on its Condensed Consolidated Balance Sheet as of January 1, 2019 for its existing operating lease agreements for the office and manufacturing spaces in Newark, California and equipment leases. The existing deferred rent liabilities of $3.5 million associated with the same lease agreements was reversed as of January 1, 2019. Recent Accounting Pronouncements In August 2018, the FASB issued ASU 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 . The amendments in ASU 2018-15 align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). Accordingly, the amendments require an entity (customer) in a hosting arrangement that is a service contract to follow the guidance in Subtopic 350-40 to determine which implementation costs to capitalize as an asset related to the service contract and which costs to expense. ASU 2018-15 is effective for fiscal years beginning after December 15, 2019 with early adoption permitted. The Company intends to adopt ASU 2018-15 prospectively when it becomes effective on January 1, 2020. The Company’s Condensed Consolidated Financial Statements and disclosures before adoption are not expected to be impacted as a result of the adoption. |
Cash Equivalents and Investme_2
Cash Equivalents and Investments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Available-for-sale Securities | The following table is a summary of amortized cost, unrealized gains and losses, and fair value: September 30, 2019 December 31, 2018 Unrealized Unrealized (in thousands) Cost Gains Fair Value Cost Gains Losses Fair Value Money market funds $ 40,153 $ — $ 40,153 $ 38,354 $ — $ — $ 38,354 U.S. treasury securities 75,326 27 75,353 80,844 5 (5 ) 80,844 U.S. government agency obligations 32,867 15 32,882 52,586 — (8 ) 52,578 Commercial paper 43,873 — 43,873 — — — — Overnight repurchase agreements 14,501 — 14,501 — — — — Total cash equivalents and available-for-sale securities $ 206,720 $ 42 $ 206,762 $ 171,784 $ 5 $ (13 ) $ 171,776 Classified as: Cash equivalents $ 56,652 $ 69,220 Short-term investments 150,110 102,556 Total cash equivalents and available-for-sale securities $ 206,762 $ 171,776 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value of Financial Instruments | The following table summarizes, for assets and liabilities measured at fair value, the respective fair value and the classification by level of input within the fair value hierarchy: September 30, 2019 (in thousands) Fair Value Level 1 Level 2 Level 3 Assets Money market funds $ 40,153 $ 40,153 $ — $ — U.S. treasury securities 75,353 75,353 — — U.S. government agency obligations 32,882 — 32,882 — Commercial paper 43,873 — 43,873 — Overnight repurchase agreements 14,501 — 14,501 — Total assets measured at fair value $ 206,762 $ 115,506 $ 91,256 $ — Liabilities Derivative liability associated with the Medicis settlement $ 2,892 $ — $ — $ 2,892 Total liabilities measured at fair value $ 2,892 $ — $ — $ 2,892 December 31, 2018 (in thousands) Fair Value Level 1 Level 2 Level 3 Assets Money market funds $ 38,354 $ 38,354 $ — $ — U.S. treasury securities 80,844 80,844 — — U.S. government agency obligations 52,578 — 52,578 — Total assets measured at fair value $ 171,776 $ 119,198 $ 52,578 $ — Liabilities Derivative liability associated with the Medicis settlement $ 2,753 $ — $ — $ 2,753 Total liabilities measured at fair value $ 2,753 $ — $ — $ 2,753 |
Summary of Changes in Fair Value of Financial Instruments | The following table summarizes the change in the fair value of the Company’s Level 3 financial instrument: (in thousands) Derivative Liability Associated with the Medicis Settlement Fair value as of December 31, 2018 $ 2,753 Change in fair value 139 Fair value as of September 30, 2019 $ 2,892 |
Leases Leases (Tables)
Leases Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Operating Lease Costs | The operating lease costs are summarized as follows: Three Months Ended Nine Months Ended (in thousands) September 30, 2019 September 30, 2019 Operating lease cost $ 1,425 $ 4,193 Variable lease cost (1) 298 886 Total operating lease costs $ 1,723 $ 5,079 (1) Variable lease cost includes management fees, common area maintenance, property taxes, and insurance, which are not included in the lease liabilities and are expensed as incurred. |
Operating Lease Liability Maturities | As of September 30, 2019 , maturities of the Company’s operating lease liabilities are as follows: Year Ending December 31, (in thousands) 2019 remaining three months $ 1,633 2020 6,735 2021 6,942 2022 5,464 2023 5,557 2024 and thereafter 17,959 Total operating lease payments 44,290 Less imputed interest (1) (14,195 ) Present value of operating lease payments $ 30,095 (1) The Company’s lease contracts do not provide a readily determinable implicit rate. The imputed interest was based on a weighted average discount rate of 12.0% , which represents the estimated incremental borrowing based on the information available at the adoption or commencement dates. As of December 31, 2018 , the aggregate total future minimum lease payments under non-cancelable operating leases were as follows: Year Ending December 31, (in thousands) 2019 $ 5,826 2020 6,011 2021 6,196 2022 4,696 2023 and thereafter 20,173 Total payments $ 42,902 |
Supplemental Cash Flow Information | Supplemental cash flow information related to the operating leases was as follows: Nine Months Ended (in thousands) September 30, 2019 Cash paid for amounts included in the measurement of operating lease liabilities $ 4,704 Right-of-use assets obtained in exchange for operating lease liabilities $ 3,890 |
Stockholders' Equity Stockholde
Stockholders' Equity Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Schedule of Stock-based Compensation Expense | Stock-based compensation expense was allocated as follows: (in thousands) Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Research and development $ 2,106 $ 1,836 $ 6,438 $ 5,627 General and administrative 2,197 2,256 6,444 6,795 Total stock-based compensation expense $ 4,303 $ 4,092 $ 12,882 $ 12,422 |
Summary of Common Stock Equivalents Excluded from Computation of Diluted Net Income (Loss) Per Share | Common stock equivalents that were excluded from the computation of diluted net loss per share are presented as below: As of September 30, 2019 2018 Outstanding common stock options 4,402,244 3,491,751 Outstanding common stock warrants 34,113 34,113 Unvested restricted stock awards 788,125 679,541 Shares of common stock expected to be purchased on December 31 under the 2014 ESPP 45,123 16,712 |
The Company and Summary of Si_3
The Company and Summary of Significant Accounting Policies- Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Jan. 01, 2019 | Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||
Net loss | $ 41,409 | $ 32,834 | $ 114,103 | $ 101,952 | ||
Working capital surplus | 186,400 | 186,400 | ||||
Accumulated deficit | 798,878 | 798,878 | $ 684,775 | |||
Contract with customer, liability, net | 209,000 | $ 209,000 | ||||
Cash and cash equivalents, and investments, expected funding term for operating plan (in months) | 12 months | |||||
Operating lease right of use assets | 27,078 | $ 27,078 | $ 24,700 | |||
Operating lease liabilities | $ 30,095 | $ 30,095 | 28,200 | |||
Deferred rent liabilities | $ (3,500) |
Medicis Settlement - Additional
Medicis Settlement - Additional Information (Detail) - USD ($) | 1 Months Ended | 9 Months Ended | 12 Months Ended | ||
Oct. 31, 2012 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2014 | Dec. 31, 2013 | |
Medicis Pharmaceutical Corporation | |||||
Settlement And Termination [Line Items] | |||||
Settlement consideration payable | $ 25,000,000 | ||||
Upfront payment paid | 7,000,000 | ||||
Medicis Pharmaceutical Corporation | Proceeds Sharing Arrangement | |||||
Settlement And Termination [Line Items] | |||||
Settlement agreement, payable | $ 14,000,000 | ||||
Settlement payment | $ 7,100,000 | $ 6,900,000 | |||
Medicis Pharmaceutical Corporation | Product Approval Payment Derivative | |||||
Settlement And Termination [Line Items] | |||||
Derivative liability for the product approval payment | $ 2,900,000 | $ 2,700,000 | |||
Valeant Pharmaceuticals International, Inc. | Product Approval Payment Derivative | |||||
Settlement And Termination [Line Items] | |||||
Accrued milestone obligations | $ 4,000,000 | ||||
Measurement Input, Expected Term | Medicis Pharmaceutical Corporation | Product Approval Payment Derivative | |||||
Settlement And Termination [Line Items] | |||||
Fair value, measurement input, duration | 1 year 1 month 6 days | 1 year 6 months | |||
Measurement Input, Risk Free Interest Rate | Medicis Pharmaceutical Corporation | Product Approval Payment Derivative | |||||
Settlement And Termination [Line Items] | |||||
Fair value, measurement input | 1.70% | 2.60% | |||
Measurement Input, Entity Credit Risk | Medicis Pharmaceutical Corporation | Product Approval Payment Derivative | |||||
Settlement And Termination [Line Items] | |||||
Fair value, measurement input | 7.50% | 8.00% |
Revenue (Details)
Revenue (Details) - USD ($) | Feb. 28, 2018 | Jan. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Aug. 31, 2019 |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||
Deferred revenue, current portion | $ 8,588,000 | $ 5,241,000 | $ 5,241,000 | |||||
Deferred revenue, net of current portion | 42,684,000 | 50,707,000 | 50,707,000 | |||||
Mylan | ||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||
Non-refundable upfront payment | $ 25,000,000 | |||||||
Contingent payments | 100,000,000 | |||||||
Revenue maximum for receipt of tiered milestone payments | 225,000,000 | |||||||
Revenue maximum for waiver of royalties | 50,000,000 | |||||||
Additional one-time payment receivable | $ 5,000,000 | |||||||
Transaction price | 81,000,000 | |||||||
Remaining performance obligation | 107,000,000 | 107,000,000 | ||||||
Shanghai Fosun Pharmaceutical Industrial Development Co., Ltd. | ||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||
Contingent payments | 230,500,000 | 230,500,000 | ||||||
Revenue maximum for receipt of tiered milestone payments | 1,000,000 | |||||||
Remaining performance obligation | 31,000,000 | 31,000,000 | ||||||
Contract with customer, liability, revenue recognized (less than $0.1 million for the three months ended sept. 30, 2019) | 0 | |||||||
Contract with customer, asset, before allowance for credit loss | $ 30,000,000 | |||||||
Foreign withholding tax, amount | $ 3,000,000 | |||||||
Deferred revenue, net of current portion | 30,000,000 | 30,000,000 | ||||||
Development Services | ||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||
Contract with customer, liability, revenue recognized (less than $0.1 million for the three months ended sept. 30, 2019) | 100,000 | $ 2,400,000 | 300,000 | $ 3,200,000 | ||||
Deferred revenue, current portion | 8,600,000 | 5,200,000 | 5,200,000 | |||||
Contract with customer, refund liability, noncurrent | $ 12,700,000 | $ 20,700,000 | $ 20,700,000 | |||||
Development Milestones | Mylan | ||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||
Revenue maximum for receipt of tiered milestone payments | $ 40,000,000 |
Cash Equivalents and Investme_3
Cash Equivalents and Investments (Detail) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Debt Securities, Available-for-sale [Line Items] | ||
Cost | $ 206,720,000 | $ 171,784,000 |
Gains | 42,000 | 5,000 |
Losses | (13,000) | |
Fair Value | 206,762,000 | 171,776,000 |
Other-than-temporary impairments on available-for-sale securities | 0 | 0 |
Cash equivalents | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 56,652,000 | 69,220,000 |
Short-term investments | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 150,110,000 | 102,556,000 |
Money market funds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost | 40,153,000 | 38,354,000 |
Gains | 0 | 0 |
Losses | 0 | |
Fair Value | 40,153,000 | 38,354,000 |
U.S. treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost | 75,326,000 | 80,844,000 |
Gains | 27,000 | 5,000 |
Losses | (5,000) | |
Fair Value | 75,353,000 | 80,844,000 |
U.S. government agency obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost | 32,867,000 | 52,586,000 |
Gains | 15,000 | 0 |
Losses | (8,000) | |
Fair Value | 32,882,000 | 52,578,000 |
Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost | 43,873,000 | 0 |
Gains | 0 | 0 |
Losses | 0 | |
Fair Value | 43,873,000 | 0 |
Overnight repurchase agreements | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost | 14,501,000 | 0 |
Gains | 0 | 0 |
Losses | 0 | |
Fair Value | $ 14,501,000 | $ 0 |
Cash Equivalents and Investme_4
Cash Equivalents and Investments - Related Party Transactions (Details) - USD ($) shares in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Related Party Transaction [Line Items] | ||
Related party transactions | $ 0 | |
J.P. Morgan Securities LLC | ||
Related Party Transaction [Line Items] | ||
Cash, cash equivalents and investments, held by JP Morgan Chase | $ 87,700,000 | |
JPMorgan Chase & Co. and Wholly-owned Subsidiaries | ||
Related Party Transaction [Line Items] | ||
Common stock outstanding, held by JP Morgan Chase (in shares) | 3.8 | |
Percent of outstanding common stock held by JP Morgan Chase during the period (less than 10$ at Sept. 30, 2019) | 10.00% | 10.30% |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Fair Value of Financial Instruments (Detail) - Recurring - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets measured at fair value | $ 206,762 | $ 171,776 |
Total liabilities measured at fair value | 2,892 | 2,753 |
Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets measured at fair value | 40,153 | 38,354 |
U.S. treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets measured at fair value | 75,353 | 80,844 |
U.S. government agency obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets measured at fair value | 32,882 | 52,578 |
Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets measured at fair value | 43,873 | |
Overnight repurchase agreements | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets measured at fair value | 14,501 | |
Derivative liability associated with the Medicis settlement | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total liabilities measured at fair value | 2,892 | 2,753 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets measured at fair value | 115,506 | 119,198 |
Total liabilities measured at fair value | 0 | 0 |
Level 1 | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets measured at fair value | 40,153 | 38,354 |
Level 1 | U.S. treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets measured at fair value | 75,353 | 80,844 |
Level 1 | U.S. government agency obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets measured at fair value | 0 | 0 |
Level 1 | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets measured at fair value | 0 | |
Level 1 | Overnight repurchase agreements | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets measured at fair value | 0 | |
Level 1 | Derivative liability associated with the Medicis settlement | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total liabilities measured at fair value | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets measured at fair value | 91,256 | 52,578 |
Total liabilities measured at fair value | 0 | 0 |
Level 2 | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets measured at fair value | 0 | 0 |
Level 2 | U.S. treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets measured at fair value | 0 | 0 |
Level 2 | U.S. government agency obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets measured at fair value | 32,882 | 52,578 |
Level 2 | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets measured at fair value | 43,873 | |
Level 2 | Overnight repurchase agreements | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets measured at fair value | 14,501 | |
Level 2 | Derivative liability associated with the Medicis settlement | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total liabilities measured at fair value | 0 | 0 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets measured at fair value | 0 | 0 |
Total liabilities measured at fair value | 2,892 | 2,753 |
Level 3 | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets measured at fair value | 0 | 0 |
Level 3 | U.S. treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets measured at fair value | 0 | 0 |
Level 3 | U.S. government agency obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets measured at fair value | 0 | 0 |
Level 3 | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets measured at fair value | 0 | |
Level 3 | Overnight repurchase agreements | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets measured at fair value | 0 | |
Level 3 | Derivative liability associated with the Medicis settlement | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total liabilities measured at fair value | $ 2,892 | $ 2,753 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Changes in Fair Value of Financial Instruments (Detail) - Derivative Liability Associated with the Medicis Settlement $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Fair value as of December 31, 2018 | $ 2,753 |
Change in fair value | 139 |
Fair value as of September 30, 2019 | $ 2,892 |
Leases Leases (Details)
Leases Leases (Details) | Sep. 30, 2019 |
Leases [Abstract] | |
Weighted average remaining lease term | 7 years 2 months 12 days |
Extended term of lease | 14 years |
Leases Leases - Operating Lease
Leases Leases - Operating Lease Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Leases [Abstract] | ||
Operating lease cost | $ 1,425 | $ 4,193 |
Variable lease cost (1) | 298 | 886 |
Total operating lease costs | $ 1,723 | $ 5,079 |
Leases Leases - Operating Lea_2
Leases Leases - Operating Lease Liability Maturities (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jan. 01, 2019 |
Leases [Abstract] | ||
2019 remaining three months | $ 1,633 | |
2020 | 6,735 | |
2021 | 6,942 | |
2022 | 5,464 | |
2023 | 5,557 | |
2024 and thereafter | 17,959 | |
Total operating lease payments | 44,290 | |
Less imputed interest (1) | (14,195) | |
Present value of operating lease payments | $ 30,095 | $ 28,200 |
Weighted average discount rate (percent) | 12.00% |
Leases Leases - Aggregate Futur
Leases Leases - Aggregate Future Noncancelable Lease Payments (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 5,826 |
2020 | 6,011 |
2021 | 6,196 |
2022 | 4,696 |
2023 and thereafter | 20,173 |
Total payments | $ 42,902 |
Leases Leases - Supplemental Ca
Leases Leases - Supplemental Cash Flow Information (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Leases [Abstract] | |
Cash paid for amounts included in the measurement of operating lease liabilities | $ 4,704 |
Right-of-use assets obtained in exchange for operating lease liabilities | $ 3,890 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Loss Contingencies [Line Items] | |
Indemnification liability recorded during the period | $ 0 |
List Laboratories | Product Approval Payment Derivative | |
Loss Contingencies [Line Items] | |
Accrued milestone obligations | 2,000,000 |
Botulinum Toxin Research Associates, Inc. | |
Loss Contingencies [Line Items] | |
Accrued milestone obligations | 16,000,000 |
BioSentinel, Inc. | |
Loss Contingencies [Line Items] | |
Accrued milestone obligations | 300,000 |
Other Current Liabilities | |
Loss Contingencies [Line Items] | |
Fair value of assets acquired | 1,000,000 |
Service Agreements | Ajinomoto Althea, Inc. | |
Loss Contingencies [Line Items] | |
Prepaid purchase obligations | $ 1,300,000 |
Stockholders' Equity Stockhol_2
Stockholders' Equity Stockholders' Equity - Stock Option Plan Additional Information (Details) - USD ($) | Jan. 01, 2019 | Jan. 31, 2019 | Sep. 30, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 |
Follow On Offering | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock issued during period, shares, new issues (in shares) | 6,764,705 | |||||
Share price (in dollar per share) | $ 17 | |||||
Proceeds from issuance of common stock | $ 107,600,000 | |||||
Over-Allotment Option | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock issued during period, shares, new issues (in shares) | 882,352 | |||||
At the Market Offering | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock issued during period, shares, new issues (in shares) | 0 | 0 | ||||
Stock issuance sales agreement, authorized offering price, maximum | $ 125,000,000 | |||||
Stock issuance sales agreement, commission rate (percent) | 3.00% | |||||
Common Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares available for purchase under common stock warrants (in shares) | 34,113 | 34,113 | 34,113,000 | |||
Employee Stock Option and Restricted Stock Awards | 2014 Equity Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation arrangement by share-based payment award, number of additional shares authorized (in shares) | 1,479,008 | |||||
Shares underlying stock options granted (in shares) | 1,202,650 | |||||
Shares granted under restricted stock awards (shares) | 513,225 | |||||
Shares available for issuance (in shares) | 2,018,200 | 2,018,200 | ||||
Employee Stock Option | 2014 Inducement Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares underlying stock options granted (in shares) | 0 | |||||
Shares available for issuance (in shares) | 170,019 | 170,019 | ||||
Employee Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation arrangement by share-based payment award, number of additional shares authorized (in shares) | 300,000 | |||||
Common stock, capital shares reserved for future issuance (in shares) | 1,443,774 | 1,443,774 | ||||
Weighted Average | Warrant | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Exercise price per share (in USD per share) | $ 14.95 | $ 14.95 | $ 14.95 |
Stockholders' Equity Stockhol_3
Stockholders' Equity Stockholders' Equity - Stock Option Plan Schedule of Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock based compensation expense | $ 4,303 | $ 4,092 | $ 12,882 | $ 12,422 |
Research and Development | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock based compensation expense | 2,106 | 1,836 | 6,438 | 5,627 |
General and Administrative | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock based compensation expense | $ 2,197 | $ 2,256 | $ 6,444 | $ 6,795 |
Stockholders' Equity Stockhol_4
Stockholders' Equity Stockholders' Equity - Common Stock Equivalents Excluded from the Calculation of Earnings per Share (Details) - shares | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Outstanding common stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Common stock equivalents excluded from computation of diluted net income (loss) per share (in shares) | 4,402,244 | 3,491,751 |
Outstanding common stock warrants | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Common stock equivalents excluded from computation of diluted net income (loss) per share (in shares) | 34,113 | 34,113 |
Unvested restricted stock awards | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Common stock equivalents excluded from computation of diluted net income (loss) per share (in shares) | 788,125 | 679,541 |
Shares of common stock expected to be purchased on December 31 under the 2014 ESPP | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Common stock equivalents excluded from computation of diluted net income (loss) per share (in shares) | 45,123 | 16,712 |
Income Taxes (Details)
Income Taxes (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Income Tax Contingency [Line Items] | |
Increase in deferred tax assets | $ 15 |
CALIFORNIA | |
Income Tax Contingency [Line Items] | |
Increase in NOL due to change in apportionment model | $ 219 |
Subsequent Event (Details)
Subsequent Event (Details) - Subsequent Event - USD ($) | Oct. 13, 2019 | Oct. 11, 2019 |
President, Chief Executive Officer and Principal Executive Officer | ||
Subsequent Event [Line Items] | ||
Annual base salary | $ 650,000 | |
Annual target bonus as percent of base salary | 75.00% | |
Options granted (shares) | 740,000 | |
Options granted, exercise price per share (in USD) | $ 12.18 | |
Former President and Chief Executive Officer | ||
Subsequent Event [Line Items] | ||
Severance payment, months of salary | 15 months | |
Restricted Stock | President, Chief Executive Officer and Principal Executive Officer | ||
Subsequent Event [Line Items] | ||
Equity awards other than options granted (shares)Shares granted -based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 200,000 | |
Performance-based Common Stock | President, Chief Executive Officer and Principal Executive Officer | ||
Subsequent Event [Line Items] | ||
Equity awards other than options granted (shares)Shares granted -based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 860,000 |