Tesaro (TSRO) 10-K 28 Feb 17 2016 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2016	Feb. 22, 2017	Jun. 30, 2016
Document and Entity Information
Entity Registrant Name	TESARO, Inc.
Entity Central Index Key	1,491,576
Document Type	10-K
Document Period End Date	Dec. 31, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$ 2,451,342,540
Entity Common Stock, Shares Outstanding		53,626,219
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	FY

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 785,877	$ 230,146
Accounts receivable	5,343	679
Inventories	14,700	1,106
Other current assets	8,919	4,560
Total current assets	814,839	236,491
Intangible assets, net	12,877	14,732
Property and equipment, net	6,640	2,779
Restricted cash	1,694	500
Other assets	3,795	779
Total assets	839,845	255,281
Current liabilities:
Accounts payable	5,236	8,019
Accrued expenses	68,271	36,628
Deferred revenue, current	288	500
Other current liabilities	2,978	1,534
Total current liabilities	76,773	46,681
Convertible notes, net	131,775	121,325
Deferred revenue, non-current		288
Customer Deposits, Noncurrent	15,000
Other non-current liabilities	5,086	113
Total liabilities	228,634	168,407
Commitments and contingencies (Note 10)
Stockholders' equity:
Preferred stock, $0.0001 par value; 10,000,000 shares authorized at both December 31, 2015 and June 30, 2016; no shares issued or outstanding at both December 31, 2015 and June 30, 2016
Common stock, $0.0001 par value; 100,000,000 shares authorized at both December 31, 2015 and September 30, 2016; 40,279,783 and 51,656,692 shares issued and outstanding at December 31, 2015 and September 30, 2016, respectively	5	4
Additional paid-in capital	1,604,798	688,788
Accumulated other comprehensive loss	(2,924)
Accumulated deficit	(990,668)	(601,918)
Total stockholders' equity	611,211	86,874
Total liabilities and stockholders' equity	$ 839,845	$ 255,281

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2016	Nov. 30, 2016	Apr. 30, 2016	Mar. 31, 2016	Dec. 31, 2015
Condensed Consolidated Balance Sheets
Preferred stock, par value (in dollars per share)	$ 0.0001				$ 0.0001
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 (in dollars per share)	$ 0.0001				$ 0.0001
Common stock, shares authorized	100,000,000				100,000,000
Common stock, shares issued	53,621,679	1,750,000	1,130,198	4,404,658	40,279,783
Common stock, shares outstanding	53,621,679				40,279,783

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Revenues:
Product revenue, net	$ 6,877	$ 0	$ 0
License revenue	37,946	317
Total revenues	44,823	317
Expenses:
Cost of sales - product	1,256
Cost of sales - intangible asset amortization	1,855	268
Research and development	235,144	155,390	118,425
Selling, general and administrative	158,578	78,701	23,935
Acquired in-process research and development	18,940	2,000	24,900
Total expenses	415,773	236,359	167,260
Loss from operations	(370,950)	(236,042)	(167,260)
Interest expense	(16,487)	(15,414)	(3,776)
Interest income	1,440	48	24
(Loss) income before provision for -benefit from income taxes	(385,997)	(251,408)	(171,012)
Income Tax Expense (Benefit)	1,475
Net loss	$ (387,472)	$ (251,408)	$ (171,012)
Net loss per share applicable to common stockholders - basic and diluted (in dollars per share)	$ (8.13)	$ (6.38)	$ (4.79)
Weighted-average number of common shares used in net loss per share applicable to common stockholders - basic and diluted (in shares)	47,652	39,387	35,739
Comprehensive loss:
Net loss	$ (387,472)	$ (251,408)	$ (171,012)
Other comprehensive income/(loss):
Unrealized gain/(loss) on pension obligation	(2,782)
Foreign currency translation adjustments	(142)
Other comprehensive income/(loss)	(2,924)
Comprehensive loss	$ (390,396)	$ (251,408)	$ (171,012)

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Common Stock	Additional Paid-in Capital	AOCI Attributable to Parent [Member]	Accumulated Deficit	Total
Balance at Dec. 31, 2013	$ 3	$ 302,647		$ (179,498)	$ 123,152
Balance (in shares) at Dec. 31, 2013	32,739,008
Increase (Decrease) in Stockholders' Equity
Issuance of common stock, net of issuance costs	$ 1	94,198			94,199
Issuance of common stock, net of issuance costs (in shares)	3,200,000
Issuance of common stock resulting from exercise of stock options		1,630			1,630
Issuance of common stock resulting from exercise of stock options (in shares)	159,747
Issuance of common stock resulting from Employee Stock Purchase Plan		249			249
Issuance of common stock resulting from Employee Stock Purchase Plan (in shares)	9,845
Cancellation of unvested restricted stock (in shares)	(8,929)
Issuance of common stock as payment of Board of Directors fees in lieu of cash		274			274
Issuance of common stock as payment of Board of Directors fees in lieu of cash (in shares)	10,411
Conversion option of convertible notes - net of issuance costs		84,984			84,984
Capped call options associated with convertible notes		(20,829)			(20,829)
Stock-based compensation expense		11,409			11,409
Net Income (Loss) Available to Common Stockholders, Basic				(171,012)	(171,012)
Balance at Dec. 31, 2014	$ 4	474,562		(350,510)	124,056
Balance (in shares) at Dec. 31, 2014	36,110,082
Increase (Decrease) in Stockholders' Equity
Issuance of common stock, net of issuance costs		179,753			179,753
Issuance of common stock, net of issuance costs (in shares)	3,755,000
Issuance of common stock resulting from exercise of stock options		7,930			7,930
Issuance of common stock resulting from exercise of stock options (in shares)	382,580
Issuance of common stock resulting from Employee Stock Purchase Plan		830			830
Issuance of common stock resulting from Employee Stock Purchase Plan (in shares)	20,601
Issuance of common stock resulting from the vesting of restricted stock units, net of shares withheld for taxes		(201)			(201)
Issuance of common stock resulting from the vesting of restricted stock units, net of shares withheld for taxes (in shares)	8,091
Issuance of common stock as payment of Board of Directors fees in lieu of cash		266			266
Issuance of common stock as payment of Board of Directors fees in lieu of cash (in shares)	3,429
Stock-based compensation expense		25,648			25,648
Net Income (Loss) Available to Common Stockholders, Basic				(251,408)	(251,408)
Balance at Dec. 31, 2015	$ 4	688,788		(601,918)	$ 86,874
Balance (in shares) at Dec. 31, 2015	40,279,783				40,279,783
Increase (Decrease) in Stockholders' Equity
Net Income (Loss) Available to Common Stockholders, Basic					$ (90,970)
Balance (in shares) at Mar. 31, 2016					4,404,658
Balance at Dec. 31, 2015	$ 4	688,788		(601,918)	$ 86,874
Balance (in shares) at Dec. 31, 2015	40,279,783				40,279,783
Increase (Decrease) in Stockholders' Equity
Issuance of common stock, net of issuance costs	$ 1	838,090			$ 838,091
Issuance of common stock, net of issuance costs (in shares)	12,632,356
Issuance of common stock resulting from exercise of stock options		25,958			25,958
Issuance of common stock resulting from exercise of stock options (in shares)	643,035
Issuance of common stock resulting from Employee Stock Purchase Plan		2,229			2,229
Issuance of common stock resulting from Employee Stock Purchase Plan (in shares)	42,478
Issuance of common stock resulting from the vesting of restricted stock units, net of shares withheld for taxes (in shares)	18,000
Issuance of common stock as payment of Board of Directors fees in lieu of cash		345			345
Issuance of common stock as payment of Board of Directors fees in lieu of cash (in shares)	6,027
Stock-based compensation expense		48,110			48,110
Other comprehensive income/(loss)			$ (2,924)		(2,924)
Net Income (Loss) Available to Common Stockholders, Basic				(387,472)	(387,472)
Balance at Dec. 31, 2016	$ 5	1,604,798	$ (2,924)	(990,668)	$ 611,211
Balance (in shares) at Dec. 31, 2016	53,621,679				53,621,679
Increase (Decrease) in Stockholders' Equity
Retroactive adjustment to beginning accumulated deficit and additional paid-in capital resulting from adoption of ASU 2016-09		$ 1,278		$ (1,278)

Consolidated Statements of Conv

Consolidated Statements of Convertible Preferred Stock and Stockholders' (Deficit) Equity (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Common Stock
Issuance of stock, offering costs	$ 36,305	$ 11,752	$ 6,601

Condensed Consolidated Stateme7

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Operating activities
Net loss	$ (387,472)	$ (251,408)	$ (171,012)
Adjustments to reconcile net loss to net cash used in operating activities:
Acquired in-process research and development	18,940	2,000	24,900
Depreciation and amortization expense	3,113	1,037	349
Stock-based compensation expense	48,455	25,914	11,683
Non-cash interest expense	10,450	9,360	2,249
Loss on disposal of property and equipment			80
Changes in operating assets and liabilities:
Accounts receivable	(4,664)	(679)
Inventories	(13,594)	(1,106)
Other assets	(7,685)	(2,128)	2,327
Accounts payable	(2,835)	1,924	4,220
Accrued expenses	31,897	19,646	6,209
Deferred revenues	14,501	788
Other liabilities	1,223	121	1,510
Net cash used in operating activities	(287,671)	(194,531)	(117,485)
Investing activities
Acquisition of product candidate and technology licenses and milestone payments	(18,940)	(17,000)	(24,900)
Purchase of property and equipment	(2,895)	(2,305)	(1,011)
Change in restricted cash	(1,489)	(500)
Net cash used in investing activities	(23,324)	(19,805)	(25,911)
Financing activities
Proceeds from issuance of convertible notes, net of issuance costs			194,698
Purchase of capped call options			(20,829)
Proceeds from sales of common stock, net of issuance costs	838,099	179,753	94,199
Proceeds from exercise of stock options	26,556	7,239	1,663
Proceeds from issuance of common stock under Employee Stock Purchase Plan	2,229	830	249
Payment of minimum tax withholdings on share-based awards		(201)	(33)
Net cash provided by financing activities	866,884	187,621	269,947
Increase in cash and cash equivalents	555,731	(26,715)	126,551
Cash and cash equivalents at beginning of period	230,146	256,861	130,310
Cash and cash equivalents at end of period	785,877	230,146	$ 256,861
Non-cash investing and financing activities
Purchase of property and equipment - cash not paid as of period end	230	238
Effect of Exchange Rate on Cash and Cash Equivalents	(158)
Stock option exercise proceeds receivable as of period end	93	691
Noncash or Part Noncash Acquisition, Fixed Assets Acquired	2,230
Supplemental cash flow information
Cash paid for interest	$ 6,038	$ 6,071

Nature of Business

Nature of Business	12 Months Ended
	Dec. 31, 2016
Description of Business
Description of Business	TESARO, Inc. Notes to Consolidated Financial Statement 1. Nature of Business The Company TESARO, Inc., or the Company or TESARO, was incorporated in Delaware on March 26, 2010 and commenced operations in May 2010. Headquartered in Waltham, Massachusetts, TESARO is an oncology-focused biopharmaceutical company dedicated to improving the lives of cancer patients. TESARO acquires, in-licenses and develops oncology product candidates and, if approved for marketing, commercializes these products. Since incorporation, primary activities have consisted of acquiring product candidates, advancing development of these product candidates, developing intellectual property, recruiting personnel and raising capital. As part of its business strategy, the Company intends to continue to in-license or acquire additional product candidates across various stages of development. The Company operates in one segment. The Company is subject to a number of risks, including dependence on key individuals, regulatory and manufacturing risks, the need to develop additional commercially viable products, risks associated with competitors, many of which are larger and better capitalized, risks related to intellectual property, and the need to obtain adequate additional financing to fund the development and potential commercialization of its product candidates and further its in-licensing and acquisition activities. On September 1, 2015, the Company’s first commercial product, VARUBI® (oral formulation of rolapitant), was approved by the U.S. Food and Drug Administration, or FDA, in combination with other antiemetic agents in adults for the prevention of delayed nausea and vomiting associated with initial and repeat courses of emetogenic cancer chemotherapy, including, but not limited to, highly emetogenic chemotherapy. The Company commenced shipments of VARUBI during the fourth quarter of 2015. Liquidity The Company has incurred significant operating losses since inception and has relied on its ability to fund its operations through private and public equity and debt financings, and to a lesser extent license and collaboration arrangements, and management expects operating losses and negative operating cash flows to continue for the foreseeable future. The Company believes its existing cash and cash equivalents and the cash it expects to generate from sales of VARUBI will be sufficient to fund its existing cash flow requirements and its operations at their currently planned levels through at least the 12 months following the filing of this Annual Report on Form 10-K. As the Company continues to incur losses, the transition to profitability is dependent upon the successful development, approval, and commercialization of its products and product candidates and the achievement of a level of revenues adequate to support its cost structure. The Company may never achieve profitability, and unless and until it does, the Company will continue to need to raise additional capital. Management may seek additional capital through additional private or public equity or debt financings, through arrangements with strategic partners or from other sources. If such funding is not obtained on a timely basis, the Company would be required to change its current operating plans to reduce its future expenses, in order to continue to fund operations, at such reduced levels.

Basis of Presentation and Signi

Basis of Presentation and Significant Accounting Policies	12 Months Ended
	Dec. 31, 2016
Basis of Presentation and Significant Accounting Policies
Basis of Presentation and Significant Accounting Policies	2. Summary of Significant Accounting Policies Basis of Presentation The Company’s consolidated financial statements reflect the operations of the Company and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States, or GAAP. Segment Information Operating segments are defined as components of an enterprise about which separate discrete information is available for evaluation by the chief operating decision maker, or decision-making group, in deciding how to allocate resources and in assessing performance. The Company views its operations and manages its business in one operating segment, which is the business of developing and commercializing safer and more effective oncology-focused therapeutics. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets, liabilities and expenses, other comprehensive loss and the related disclosures. On an ongoing basis, management evaluates its estimates, including estimates related to accrued clinical trial and manufacturing development expenses, net product revenues, license, collaboration and other revenues, stock-based compensation expense, inventory and intangible assets and related amortization. Significant estimates in these consolidated financial statements include estimates made in connection with accrued research and development expenses, stock-based compensation expense, revenue, valuation of convertible notes, intangible assets and related amortization. The Company bases its estimates on historical experience, known trends and other market-specific or other relevant factors that it believes to be reasonable under the circumstances. Actual results may differ from those estimates or assumptions. Concentrations of Credit Risk and Off-Balance Sheet Risk Financial instruments that potentially subject the Company to concentrations of credit risk are primarily cash and cash equivalents. The Company maintains its cash and cash equivalent balances primarily in the form of money market fund accounts with financial institutions that management believes are creditworthy. The Company’s investment policy includes guidelines on the quality of the institutions and financial instruments and defines allowable investments that the Company believes minimizes the exposure to concentration of credit risk. The Company has no financial instruments with off-balance-sheet risk of loss. The Company also is subject to credit risk from its accounts receivable related to its product sales, collaborators and licenses. As part of its credit management policy, the Company performs ongoing credit evaluations of its customers, and the Company has not required collateral from any customer. The Company has not recorded any allowances for doubtful accounts at either December 31, 2015 or 2016. Foreign Currency A subsidiary’s functional currency is the currency of the primary economic environment in which the subsidiary operates; normally, that is the currency of the environment in which a subsidiary primarily generates and expends cash. In making the determination of the appropriate functional currency for a subsidiary, the Company considers cash flow indicators, local market indicators, financing indicators and the subsidiary’s relationship with both the parent company and other subsidiaries. For subsidiaries that are primarily a direct and integral component or extension of the parent entity’s operations, the U.S. dollar is the functional currency. For each foreign subsidiary with a functional currency other than the U.S. dollar, assets and liabilities are translated at current exchange rates at the balance sheet date. Income and expense items are translated at average foreign exchange rates for the period. Adjustments resulting from the translation of the financial statements of these subsidiaries into U.S. dollars are excluded from the determination of net loss and are recorded in accumulated other comprehensive loss, a separate component of stockholders’ equity. For foreign subsidiaries with the U.S. dollar as the functional currency, monetary assets and liabilities are re-measured into U.S. dollars at the current exchange rate on the balance sheet date. Nonmonetary assets and liabilities are re-measured into U.S. dollars at historical exchange rates. Revenue and expense items are translated at average exchange rates prevailing during each period. Consolidated realized and unrealized foreign currency transaction gains and losses were negligible for the years ended December 31, 2015 and 2016. Revenue Recognition Product Revenue Revenues from product sales are recognized when persuasive evidence of an arrangement exists, delivery has occurred and title of the product and associated risk of loss has passed to the customer, the price is fixed or determinable, collection from the customer has been reasonably assured, all performance obligations have been met, and returns and allowances can be reasonably estimated. Product revenues are recorded net of estimated rebates, chargebacks, discounts, co-pay assistance and other deductions as well as estimated product returns. VARUBI is currently distributed in the U.S. principally through a limited number of specialty distributors and to a lesser extent though the specialty pharmacy channel, or collectively, Customers. Customers subsequently resell VARUBI to health care providers and patients. In addition to distribution agreements with Customers, the Company has entered into arrangements with many health care providers and payors that provide for government-mandated and/or privately-negotiated rebates, chargebacks and discounts with respect to the purchase of VARUBI. The Company has determined that it does not yet meet the criteria for the recognition of revenue for shipments of VARUBI at the time of shipment to its specialty pharmacy and specialty distributor customers. For shipments of VARUBI from specialty distributors and from specialty pharmacies to providers and patients through December 31, 2016, allowances for rebates, chargebacks, discounts, co-pay assistance and other deductions are known or are estimable because they are based on the actual invoice information, claims data, or other market information and analyses. As a result, the Company has concluded that it can recognize revenue related to such shipments. For units that remained in distribution channel inventories as of December 31, 2016, the Company continues to conclude that it cannot yet reasonably make certain estimates necessary to recognize revenue on such shipments. During the year ended December 31, 2016, the Company recognized $6.9 million in net product revenue related to VARUBI sales. No net product revenue was recognized for the years ended December 31, 2014 or 2015. License, Collaboration and Other Revenues The Company may enter into arrangements under which it licenses certain rights to its product candidates to third parties. Revenues from license arrangements are recognized when persuasive evidence of an arrangement exists, delivery of goods or services has occurred (including passage of title to the product and associated risk of loss to the customer), the price is fixed or determinable, collection from the customer has been reasonably assured, all performance obligations have been met, and associated reductions of revenue can be reasonably estimated, if any. Activities under licensing agreements are evaluated to determine if they represent a multiple element arrangement. The Company identifies the deliverables included within the agreement and evaluates which deliverables represent separate units of accounting. The Company accounts for those components as separate units of accounting if the following two criteria are met: · the delivered item or items have stand-alone value to the customer; and · if the arrangement includes a general right of return relative to the delivered item(s), delivery or performance of the undelivered item(s) is considered probable and substantially in the control of the Company. Factors considered in this determination include, among other things, whether any other vendors sell the items separately and if the licensee could use the delivered item for its intended purpose without the receipt of the remaining deliverables. The consideration that is fixed or determinable is allocated to the separate units of accounting based on the relative selling prices of each deliverable. The consideration allocated to each unit of accounting is recognized as the related goods and services are delivered. The amount allocable to the delivered units of accounting is limited to the amount that is not contingent upon the delivery of additional items or meeting other specified performance conditions. The Company determines the selling price on the basis of vendor-specific objective evidence, or VSOE, third party evidence, or best estimate of selling price. VSOE is the price charged for a deliverable when it is sold separately. Third party evidence is the price that the Company or vendors charge for a similar deliverable when sold separately. Best estimate is the price at which the Company would sell the deliverable if the Company sold the deliverable regularly on a stand-alone basis. When multiple deliverables are combined and accounted for as a single unit of accounting, the Company bases its revenue recognition on the last element to be delivered using the straight-line or proportional performance method depending on the Company’s ability to estimate the performance obligation. Amounts received or recorded as receivable prior to satisfying the associated revenue recognition criteria are recorded as deferred revenue or customer deposits on the consolidated balance sheets. Amounts not expected to be recognized within one year following the balance sheet date are classified as non-current deferred revenue. If a future milestone payment under a license agreement is contingent upon the achievement of a substantive milestone, license revenue is recognized in its entirety in the period in which the milestone is achieved. A milestone is substantive if: · it can only be achieved based in whole or in part on either the Company’s performance or the occurrence of a specific outcome resulting from the Company’s performance; · there is substantive uncertainty at the date an arrangement is entered into that the event will be achieved; and · it would result in additional payments being due to the Company. Commercial milestone and royalty payments received under license agreements will be recognized as license revenue when they are earned. In July 2015, the Company entered into a license agreement with Jiangsu Hengrui Medicine Co., Ltd., or Hengrui, pursuant to which Hengrui has licensed the rights to develop, manufacture and commercialize rolapitant in China, including Hong Kong and Macao, or the China Territories. In April 2016, the Company entered into a collaboration and license agreement with Janssen Biotech, Inc., or Janssen, under which the Company granted Janssen licenses under certain patent rights and know-how relating to niraparib, for prostate cancer worldwide, except Japan. In September 2016, the Company entered into a collaboration, development and license agreement with Zai Lab (Shanghai) Co., Ltd., or Zai Lab, under which the Company granted Zai Lab an exclusive license to develop and commercialize niraparib in the China Territories. See Note 13, “ License and Collaboration Arrangements ”, for further discussion of these out-license agreements. Cash and Cash Equivalents The Company considers all highly-liquid investments with original or remaining maturity from the date of purchase of three months or less to be cash equivalents. Cash and cash equivalents include bank demand deposits and money market funds that invest primarily in certificates of deposit, commercial paper and U.S. government and U.S. government agency obligations. Cash equivalents are reported at fair value. Restricted Cash Restricted cash consists of cash balances held as collateral for the Company’s employee credit card programs. Fair Value of Financial Instruments The Company is required to disclose information on all assets and liabilities reported at fair value that enables an assessment of the inputs used in determining the reported fair values. The fair value hierarchy prioritizes valuation inputs based on the observable nature of those inputs. The fair value hierarchy applies only to the valuation inputs used in determining the reported fair value of the investments and is not a measure of investment credit quality. The hierarchy defines three levels of valuation inputs: Level 1 inputs Quoted prices in active markets for identical assets or liabilities Level 2 inputs Observable inputs other than Level 1 inputs, including quoted prices in active markets for similar assets or liabilities and quoted prices for identical assets or liabilities in markets that are not active Level 3 inputs Unobservable inputs that reflect the Company’s own assumptions about the assumptions market participants would use in pricing the asset or liability The following table presents information about the Company’s financial assets and liabilities that have been measured at fair value at December 31, 2015 and 2016 and indicates the fair value hierarchy of the valuation inputs utilized to determine such fair value (in thousands): December 31, 2015 Description Balance Sheet Classification Total Level 1 Level 2 Level 3 Assets: Money market funds Cash and cash equivalents $ $ $ — $ — Total assets $ $ $ — $ — December 31, 2016 Description Balance Sheet Classification Total Level 1 Level 2 Level 3 Assets: Money market funds Cash and cash equivalents $ $ $ — $ — Total assets $ $ $ — $ — The carrying amounts of accounts payable and accrued expenses approximate their fair values due to their short-term maturities. In September 2014, the Company issued $201.3 million aggregate principal amount of 3.00% convertible senior notes due October 1, 2021, or the Convertible Notes. Interest is payable semi-annually in arrears on April 1 and October 1 of each year, beginning on April 1, 2015. As of December 31, 2016, the carrying value of the Convertible Notes was $131.8 million, net of unamortized discount and debt issuance costs and the fair value of the principal amount was $771.4 million. The Convertible Notes are discussed in more detail in Note 7, “ Convertible Notes. ” Property and Equipment Property and equipment are stated at cost, less accumulated depreciation. Property and equipment are depreciated using the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized over the economic life of the asset or the remaining lease term, whichever is shorter. Maintenance and repairs are expensed as incurred. The following estimated useful lives were used to depreciate the Company’s assets: Estimated Useful Life Furniture and fixtures years Computer equipment and software years Manufacturing equipment years Leasehold improvements Shorter of the useful life or the remaining lease term Upon retirement or sale, the cost of the disposed asset and the related accumulated depreciation are removed from the accounts and any resulting gain or loss is recognized in income. The Company reviews long-lived assets when events or changes in circumstances indicate the carrying value of the assets may not be recoverable. Recoverability is measured by comparison of an asset’s book value to the estimated undiscounted future net cash flows that the asset is expected to generate. If the estimated future undiscounted net cash flows are less than the book value, the asset is considered to be impaired, and the impairment loss to be recognized in income is measured as the amount by which the book value of the asset exceeds its fair value, which is measured based on the estimated discounted future net cash flows that the asset is expected to generate. Research and Development Expenses Research and development costs are charged to expense as incurred and include: · pre-commercial license fees and milestone payments related to the acquisition of in-licensed product candidates, which are reported on the statements of operations as acquired in-process research and development; · employee-related expenses, including salaries, bonuses, benefits, travel and stock-based compensation expense; · fees and expenses incurred under agreements with contract research organizations, investigative sites, research consortia and other entities in connection with the conduct of clinical trials and preclinical studies and related services, such as administrative, data management, laboratory and biostatistics services; · the cost of acquiring, developing and manufacturing active pharmaceutical ingredients for product candidates that have not received regulatory approval, clinical trial materials and other research and development materials; · fees and costs related to regulatory filings and activities; · facilities, depreciation and other expenses, which include direct and allocated expenses for rent, utilities, maintenance of facilities, insurance and other supplies; and · other costs associated with clinical and preclinical activities. Costs for certain development activities, such as clinical trials and manufacturing development activities, are recognized based on an evaluation of the progress to completion of specific tasks using data such as patient enrollment, clinical site activations, or information provided to the Company by its vendors on their actual costs incurred or level of effort expended. Payments for these activities are based on the terms of the individual arrangements, which may differ from the pattern of costs incurred, and are reflected on the consolidated balance sheets as prepaid or accrued research and development expenses. Certain clinical development costs incurred by the Company with respect to its niraparib program are reimbursed as part of a collaborative research agreement with Merck Sharp & Dohme B.V., a subsidiary of Merck & Co., Inc., or Merck. Cost-sharing amounts received by the Company are recorded as a reduction to research and development expenses. Acquired In-Process Research and Development Expense The Company has acquired the rights to develop and commercialize new product candidates. Up-front payments that relate to the acquisition of a new drug compound, as well as pre-commercial milestone payments, are immediately expensed as acquired in-process research and development in the period in which they are incurred, provided that the new drug compound did not also include processes or activities that would constitute a “business” as defined under GAAP, the drug has not achieved regulatory approval for marketing and, absent obtaining such approval, has no alternative future use. Milestone payments made to third parties subsequent to regulatory approval are capitalized as intangible assets and amortized over the estimated remaining useful life of the related product. Royalties owed on sales of the products licensed pursuant to the agreements are expensed in the period the related revenues are recognized. Advertising Expenses The costs of advertising are expensed as incurred and included in selling, general, and administrative expenses in the consolidated statements of operations and comprehensive loss. For the years ended December 31, 2014, 2015 and 2016, advertising expenses totaled $1.1 million, $3.6 million, and $9.2 million, respectively. Comprehensive Loss Comprehensive loss is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. Comprehensive loss consists of net loss and other comprehensive loss. Other comprehensive loss includes foreign currency translation adjustments and unrealized gains and losses on pension obligations. Income Taxes The Company accounts for income taxes in accordance with Accounting Standards Codification, or ASC, Topic 740, Accounting for Income Taxes , which provides for deferred taxes using an asset and liability approach. The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. The Company determines its deferred tax assets and liabilities based on differences between financial reporting and tax bases of assets and liabilities, which are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. Valuation allowances are provided if, based upon the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. The Company accounts for uncertain tax positions in accordance with the provisions of ASC Topic 740. When uncertain tax positions exist, the Company recognizes the tax benefit of tax positions to the extent that the benefit will more likely than not be realized. The determination as to whether the tax benefit will more likely than not be realized is based upon the technical merits of the tax position as well as consideration of the available facts and circumstances. The Company has not provided for U.S. income taxes on the undistributed earnings of foreign subsidiaries, as it currently plans to permanently reinvest these amounts and has the intent and ability to do so. Such earnings to date have been immaterial. Stock-Based Compensation Expense Stock-based compensation is recognized as expense for each stock-based award based on its estimated fair value. The Company determines the fair value of each stock option award at its grant date using the Black-Scholes option pricing model. The Company determines the fair value of each restricted stock unit at its grant date based on the closing market price of the Company’s common stock on that date. The value of the award is recognized as expense on a straight-line basis over the requisite service period and is adjusted for pre-vesting forfeitures in the period in which the forfeitures occur. For stock awards that have a performance condition, the Company recognizes compensation expense based on its assessment of the probability that the performance condition will be achieved, using an accelerated attribution model, over the explicit or implicit service period. Inventory Inventories are stated at the lower of cost or estimated net realizable value, on a first-in, first-out, or FIFO, basis. Prior to the regulatory approval of its product candidates, the Company incurs expenses for the manufacture of drug product that could potentially be available to support the commercial launch of its products. Until the first reporting period when regulatory approval has been received or is otherwise considered probable, the Company records all such costs as research and development expense. Beginning in the third quarter of 2015, the Company began to capitalize inventory costs associated with VARUBI when it was determined that the inventory had a probable future economic benefit. The Company periodically analyzes its inventory levels, and writes down inventory that has become obsolete, inventory that has a cost basis in excess of its estimated realizable value and inventory in excess of expected sales requirements as cost of product sales. The determination of whether inventory costs will be realizable requires estimates by management. If actual market conditions are less favorable than projected by management, additional write-downs of inventory may be required, which would be recorded as a cost of product sales in the consolidated statements of operations. Intangible Assets The Company maintains definite-lived intangible assets related to certain capitalized milestones. These assets are amortized on a straight-line basis over their remaining useful lives, which are estimated to be the remaining patent life. If the Company’s estimate of the product’s useful life is shorter than the remaining patent life, then the shorter period is used. Amortization expense is recorded as a component of cost of sales in the consolidated statements of operations. The Company assesses its intangible assets for impairment if indicators are present or changes in circumstance suggest that impairment may exist. Events that could result in an impairment, or trigger an interim impairment assessment, include the receipt of additional clinical or nonclinical data regarding our drug candidate or a potentially competitive drug candidate, changes in the clinical development program for a drug candidate, or new information regarding potential sales for the drug. If impairment indicators are present or changes in circumstance suggest that impairment may exist, the Company performs a recoverability test by comparing the sum of the estimated undiscounted cash flows of each intangible asset to its carrying value on the consolidated balance sheet. If the undiscounted cash flows used in the recoverability test are less than the carrying value, the Company would determine the fair value of the intangible asset and recognize an impairment loss if the carrying value of the intangible asset exceeds its fair value. Net Loss Per Share Basic and diluted net loss per common share is calculated by dividing net loss applicable to common stockholders by the weighted-average number of common shares outstanding during the period, without consideration of common stock equivalents. The Company’s potentially dilutive shares, which include outstanding stock awards, unvested restricted stock, and shares issuable upon conversion of the Convertible Notes, are considered to be common stock equivalents and are only included in the calculation of diluted net loss per share when their effect is dilutive. The following table presents amounts that were excluded from the calculation of diluted net loss per share, due to their anti-dilutive effect (in thousands): Years Ended December 31, 2014 2015 2016 Outstanding stock awards Unvested restricted stock — — Shares issuable upon conversion of Convertible Notes — In September 2014, the Company issued Convertible Notes, which provide in certain situations for the conversion of the outstanding principal amount of the Convertible Notes into shares of the Company’s common stock at a predefined conversion rate. See Note 7, “ Convertible Notes ”, for additional information. In conjunction with the issuance of the Convertible Notes, the Company entered into capped call option transactions, or Capped Calls, with certain counterparties. The Capped Calls are expected generally to reduce the potential dilution, and/or offset, to an extent, the cash payments the Company may choose to make in excess of the principal amount, upon conversion of the Convertible Notes. As provided by the terms of the indenture underlying the Convertible Notes, the Company has a choice to settle the conversion obligation for the Convertible Notes in cash, shares or any combination of the two. The Company currently intends to settle the par value of the Convertible Notes in cash and any excess conversion premium in shares. Accordingly, the par value of the Convertible Notes will not be included in the calculation of diluted income per share, but the dilutive effect of the conversion premium will be considered in the calculation of diluted net income per share using the treasury stock method. The Convertible Notes were convertible as of December 31, 2016 and 2015. The share figures in the table above represent the estimated incremental shares that would be issued, after the consideration of the Capped Calls, assuming conversion of all of the outstanding Convertible Notes as of the respective balance sheet date. New Accounting Pronouncements - Recently Adopted In June 2014, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update, or ASU, No. 2014-12. The amendments in this ASU apply to reporting entities that grant their employees share-based payments in which the terms of the award provide that a performance target can be achieved after a requisite service period. The amendments require an entity to treat a performance target that affects vesting, and that could be achieved after the requisite service period, as a performance condition. A reporting entity should apply existing guidance in ASC Topic 718 relating to awards with performance conditions that affect vesting to account for such awards. The performance target should not be reflected in estimating the grant-date fair value of the award. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. The amendments in this ASU are effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2015, and early adoption is permitted. The Company adopted this ASU on January 1, 2016, and the adoption of this guidance did not have an impact on the Company’s consolidated financial statements. In April 2015, the FASB issued ASU No. 2015-05, which provides guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The guidance will not change GAAP for a customer’s accounting for service contracts. ASU No. 2015-05 is effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2015. Early adoption is permitted. An entity can elect to adopt the amendments either (1) prospectively to all arrangements entered into or materially modified after the effective date, or (2) retrospectively. For prospective transition, the only disclosure requirements at transition are the nature of and reason for the change in accounting principle, the transition method, and a qualitative description of the financial statement line items affected by the change. For retrospective transition, the disclosure requirements at transition include the requirements for prospective transition and quantitative information about the effects of the accounting change. The Company adopted this ASU prospectively on January 1, 2016 and the adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, which simplifies various aspects of accounting for share-based payments to employees. Key provisions of the new standard include requiring excess tax benefits and shortfalls to be recorded as income tax benefit or expense in the income statement, rather than in equity, and permitting an election to record the impact of pre-vesting forfeitures as they occur. The new guidance is effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years, with early adoption permitted. The Company elected to early adopt ASU No. 2016-09, effective January 1, 2016. Impact of Adoption As a result of adopting ASU No. 2016-09, the Company adjusted retained earnings for amendments related to an entity-wide accounting policy election to recognize the impact of share-based award forfeitures only as they occur rather than by applying an estimated forfeiture rate as previously required. ASU No. 2016-09 requires that this change be applied using a modified-retrospective transition method by means of a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year in which the guidance is adopted. The following table summarizes the impact to the Company’s consolidated balance sheet, including the amount charged to retained earnings as of January 1, 2016 (in thousands): Balance Sheet Classification Amount Increase to additional paid-in capital resulting from the Company's election to recognize forfeitures as they occur rather than applying an estimated forfeiture rate Additional paid-in capital $ 1,278 Charge to

Inventories

Inventories	12 Months Ended
	Dec. 31, 2016
Inventories
Inventories	3. Inventories The following table presents inventories (in thousands): December 31, 2015 2016 Raw materials $ $ Work in process Finished goods Total inventories $ $

Intangible Assets

Intangible Assets	12 Months Ended
	Dec. 31, 2016
Intangible Assets
Intangible Assets	4. Intangible Assets The following table presents intangible assets (in thousands): December 31, 2015 2016 Estimated useful life Intangible asset - OPKO milestone $ $ Years Less accumulated amortization Total intangible asset, net $ $ The Company recorded $0.3 million and $1.9 million, respectively, in amortization expense related to this intangible asset during the years ended December 31, 2015 and 2016. Estimated future amortization expense for intangible assets as of December 31, 2016 is as follows (in thousands): Total 2017 $ 2018 2019 2020 2021 Thereafter $

Property and Equipment

Property and Equipment	12 Months Ended
	Dec. 31, 2016
Property and Equipment
Property and Equipment	5. Property and Equipment The following table presents property and equipment, at cost, and related accumulated depreciation (in thousands): December 31, 2015 2016 Furniture and fixtures $ $ Computer equipment and software Leasehold improvements Manufacturing equipment Total property and equipment, at cost Less accumulated depreciation and amortization Total property and equipment, net $ $ Total depreciation expense amounted to $0.3 million, $0.8 million and $1.3 million for the years ended December 31, 2014, 2015 and 2016, respectively.

Accrued Expenses

Accrued Expenses	12 Months Ended
	Dec. 31, 2016
Accrued Expenses
Accrued Expenses	6. Accrued Expenses The following table presents the components of accrued expenses (in thousands): December 31, 2015 2016 Research and development $ $ Salaries, bonuses and other compensation Sales and marketing Professional services Other accrued expenses Total accrued expenses $ $

Convertible Notes

Convertible Notes	12 Months Ended
	Dec. 31, 2016
Convertible Notes.
Convertible Notes	7. Convertible Notes On September 29, 2014, in a registered underwritten public offering, the Company completed the issuance of $201.3 million aggregate principal amount of Convertible Notes. The Company received net proceeds of $194.7 million from the sale of the Convertible Notes, after deducting discounts, commissions and other expenses of $6.6 million. In conjunction with the sale of the Convertible Notes, the Company used $20.8 million of the net proceeds to enter into separate Capped Calls, as described below. The Convertible Notes are governed by the terms of a Senior Debt Securities Indenture, as supplemented by the First Supplemental Indenture relating to the Convertible Notes, collectively the Indenture, between the Company and U.S. Bank National Association, as trustee. The Convertible Notes bear interest at a rate of 3.00% per annum, payable semi-annually on April 1 and October 1, beginning from April 1, 2015, and will be convertible into cash, shares of the Company’s common stock or a combination of cash and shares of the Company’s common stock, at the Company’s election. The Convertible Notes will mature on October 1, 2021, unless earlier converted or repurchased in accordance with their terms. Prior to the close of business on the business day immediately preceding April 1, 2021, the Convertible Notes will be convertible only upon the occurrence of certain events and during certain periods as discussed below, and thereafter, at any time until the close of business on the second scheduled trading day immediately preceding the maturity date. The initial conversion price of the Convertible Notes is approximately $35.13 per share of common stock at an initial conversion rate of 28.4627 shares of the Company’s common stock per $1,000 principal amount of Convertible Notes, which represents a premium of approximately 35% over the last reported sale price of the Company’s common stock on September 23, 2014. The conversion rate is subject to adjustment from time to time upon the occurrence of certain events, including, but not limited to, the issuance of stock dividends and payment of cash dividends. At any time prior to the close of business on the business day immediately preceding April 1, 2021, holders may convert their Convertible Notes at their option only under the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending on December 31, 2014 (and only during such calendar quarter), if the closing sale price of the Company’s common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter in which the conversion occurs is greater than 130% of the conversion price on each applicable trading day; (2) during the five business day period after any ten consecutive trading day period, or the measurement period, in which the trading price per $1,000 principal amount of the Convertible Notes for each trading day of the measurement period was less than 98% of the product of the closing sale price of the Company’s common stock and the conversion rate on each such trading day; or (3) upon the occurrence of specified corporate events. On or after April 1, 2021 until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert all or any portion of their Convertible Notes, in multiples of $1,000 principal amount, at the option of the holder regardless of the foregoing circumstances. If a make-whole adjustment event, as described in the Indenture, occurs and a holder elects to convert its Convertible Notes in connection with such make-whole adjustment event, such holder may be entitled to an increase in the conversion rate as described in the Indenture. The Company may not redeem the Convertible Notes prior to the maturity date and no “sinking fund” is provided for the Convertible Notes, which means that the Company is not required to periodically redeem or retire the Convertible Notes. Upon the occurrence of certain fundamental changes involving the Company, holders of the Convertible Notes may require the Company to repurchase for cash all or part of their Convertible Notes at a repurchase price equal to 100% of the principal amount of the Convertible Notes to be repurchased, plus accrued and unpaid interest. The Indenture does not contain any financial covenants or restrictions on the payments of dividends, the incurrence of indebtedness or the issuance or repurchase of securities by the Company or any of its subsidiaries. The terms of the Indenture provide the Company with the option to settle the Convertible Notes in cash, common stock, or a combination of cash and common stock. As a result, in accordance with ASC Subtopic 470-20, Debt with Conversion and Other Options , the Company separately accounts for the liability and equity components of the Convertible Notes by allocating the principal between the liability component and the embedded conversion option, or equity component. Based on market data available for publicly traded, senior, unsecured corporate bonds issued by companies in the same industry and with similar maturity, the Company estimated the implied interest rate, assuming no conversion option. Assumptions used in the estimate represent what market participants would use in pricing the liability component, including market interest rates, credit standing, and yield curves, all of which are defined as Level 2 observable inputs. The estimated implied interest rate was applied to the Convertible Notes, which resulted in a fair value of the liability component of $113.4 million upon issuance, calculated as the present value of implied future payments based on the $201.3 million aggregate principal amount. The equity component of the Convertible Notes was recognized as a debt discount, recorded in additional paid-in capital, and represents the difference between the aggregate principal of the Convertible Notes and the fair value of the Convertible Notes without conversion option on their issuance date. The debt discount is amortized to interest expense using the effective interest method over seven years, or the life of the Convertible Notes. The equity component is not remeasured as long as it continues to meet the conditions for equity classification. The Company’s outstanding convertible note balances at December 31, 2016 consisted of the following (in thousands): December 31, 2016 Liability component Principal $ Less: debt discount and issuance costs, net Net carrying amount $ Equity component $ In connection with the issuance of the Convertible Notes, the Company incurred issuance costs, primarily consisting of underwriting, legal and other professional fees, which the Company allocated to the liability and equity components in a manner consistent with the allocation of the principal, as described above. Of the total $6.6 million of debt issuance costs, $2.9 million were allocated to the equity component and recorded as a reduction to additional paid-in capital and $3.7 million were allocated to the liability component and recorded as a reduction in the carrying amount of the convertible note. The portion allocated to the liability component is amortized to interest expense over the expected life of the Convertible Notes using the effective interest method. The Company determined the expected life of the debt was equal to the seven year contractual term of the Convertible Notes. As of December 31, 2016, the carrying value of the Convertible Notes was $131.8 million and the fair value of the Convertible Notes approximated $771.4 million. The effective interest rate on the liability component is 12.9%. The following table sets forth total interest expense recognized related to the Convertible Notes during the years ended December 31, 2015 and 2016 (in thousands): Years Ended December 31, 2015 2016 Contractual interest expense $ $ Amortization of debt discount Amortization of debt issuance costs Total interest expense $ $ The Company has evaluated the Indenture for derivatives pursuant to ASC Topic 815, Derivatives and Hedging, and identified an embedded derivative that requires bifurcation as the feature is not clearly and closely related to the host instrument. The embedded derivative is a default provision, which could require additional interest payments. The Company has determined that the fair value of this embedded derivative was nominal as of December 31, 2016. In conjunction with the offering of the Convertible Notes, the Company entered into privately-negotiated Capped Calls with certain counterparties. Each Capped Call is an integrated instrument consisting of a call option on the Company’s common stock purchased by the Company from the counterparties with an exercise price equal to the conversion price of $35.13 per share for the underlying number of shares and a cap component that incorporates a cap price of $45.54 per share. The cap component is economically equivalent to a call option sold by the Company to the counterparties for the underlying number of shares with an exercise price of $45.54 per share. As an integrated instrument, the settlement of the Capped Calls coincides with the maturity date of the Convertible Notes. The aggregate cost of the Capped Calls was $20.8 million and was recorded in stockholders’ equity and will not be remeasured.

Stockholders' Equity

Stockholders' Equity	12 Months Ended
	Dec. 31, 2016
Common Stock Transactions
Stockholders' Equity	8. Stockholders’ Equity As of December 31, 2016, the authorized capital stock of the Company consisted of 10,000,000 shares of preferred stock and 100,000,000 shares of common stock, both with a par value of $0.0001, of which no shares of preferred stock were issued or outstanding and 53,621,679 shares of common stock were issued and outstanding. Preferred Stock The Company’s certificate of incorporation authorizes its board of directors to issue preferred stock from time to time in one or more series. The rights, preferences, restrictions, qualifications and limitations of such stock are determined by the board of directors. Common Stock In February 2014, the Company sold 3,200,000 shares of common stock, in an underwritten public offering at a price to the public of $31.50 per share, resulting in gross proceeds of approximately $100.8 million. Net proceeds to the Company after deducting fees, commissions and other expenses related to the offering were approximately $94.2 million. The shares were issued pursuant to an automatic shelf registration statement on Form S-3. In March 2015, the Company sold 3,755,000 shares of common stock, in an underwritten public offering at a price to the public of $51.00 per share, resulting in gross proceeds of approximately $191.5 million. Net proceeds to the Company after deducting fees, commissions and other expenses related to the offering were approximately $179.8 million. The shares were issued pursuant to an automatic shelf registration statement on Form S-3. In March 2016, the Company sold 4,404,658 shares of common stock in a private placement offering at a price of $35.19 per share, to certain accredited investors, including funds affiliated with three of its directors and current investors, resulting in gross proceeds of approximately $155.0 million. The price per share was equal to the volume weighted average price for the ten-day period ending on March 17, 2016. There were no placement agents used for this financing. The sale and issuance of the shares of common stock in the private placement was made in reliance on the exemption afforded by Section 4(a)(2) under the Securities Act of 1933 and Regulation D promulgated under the Securities Act. In April 2016, the Company sold 1,130,198 shares of common stock to Johnson & Johnson Innovation – JJDC, Inc., or JJDC, at a price of $44.24 per share, for an aggregate purchase price of approximately $50.0 million. The price per share was equal to the volume weighted average price for the five-day period ending on April 4, 2016. There were no placement agents used, or any underwriting discounts or commissions paid in connection with the transaction. The sale and issuance of the shares of common stock was made in reliance on the exemption afforded by Section 4(a)(2) under the Securities Act of 1933 and Regulation D promulgated under the Securities Act. In July 2016, the Company sold 5,347,500 shares of common stock, in an underwritten public offering at a price to the public of $81.00 per share, resulting in gross proceeds of approximately $433.1 million. Net proceeds to the Company after deducting fees, commissions and other expenses related to the offering were approximately $408.9 million. The shares were issued pursuant to an automatic shelf registration statement on Form S-3. In November 2016, the Company sold 1,750,000 shares of common stock, in an underwritten public offering at a price to the public of $135.00 per share, resulting in gross proceeds of approximately $236.3 million. Net proceeds to the Company after deducting fees, commissions and other expenses related to the offering were approximately $224.2 million. The shares were issued pursuant to an automatic shelf registration statement on Form S-3. The holders of common stock are entitled to one vote per share on all matters to be voted upon by the stockholders of the Company. Subject to the preferences that may be applicable to any outstanding shares of preferred stock, the holders of common stock are entitled to receive ratably such dividends, if any, as may be declared by the Company’s board of directors.

Stock-Based Compensation

Stock-Based Compensation	12 Months Ended
	Dec. 31, 2016
Stock-Based Compensation
Stock-Based Compensation	9. Stock-Based Compensation The following table presents stock-based compensation expense as reflected in the Company’s consolidated statements of operations and comprehensive loss (in thousands): Years Ended December 31, 2014 2015 2016 Research and development $ $ $ Selling, general and administrative Total stock-based compensation expense $ $ $ The Company maintains several equity compensation plans, including the TESARO, Inc. 2012 Omnibus Incentive Plan, or the 2012 Incentive Plan, the TESARO, Inc. 2010 Stock Incentive Plan, or the 2010 Incentive Plan, the TESARO, Inc. 2015 Non-Employee Director Stock Incentive Plan, or the 2015 Director Plan, and the TESARO, Inc. 2012 Employee Stock Purchase Plan, or the 2012 ESPP. Terms of stock award agreements, including vesting requirements, are determined by the board of directors, subject to the provisions of the individual plans. To date, stock option awards granted to employees by the Company generally vest either monthly over four years, or 25% one year from the vesting start date and 75% in equal installments over the subsequent thirty-six (36) months, and are exercisable from the date of grant for a period of ten years. Restricted stock units, or RSUs, granted to employees by the Company generally vest annually over four years in equal annual installments of 25% each. 2010 Stock Incentive Plan In connection with the Company’s formation, the Company adopted the 2010 Incentive Plan, under which it was authorized to grant stock-based awards of up to 1,981,130 shares of common stock as of January 1, 2012. As of April 27, 2012, the Company ceased making awards under the 2010 Incentive Plan and the remaining 6,857 shares available for future grants were added to the total number of shares reserved for issuance under the 2012 Incentive Plan. For options granted under the 2010 Incentive Plan, the exercise price equaled the estimated fair value of the common stock as determined by the board of directors on the date of grant. As of December 31, 2016, there are no shares available for grant under the 2010 Incentive Plan. 2012 Omnibus Incentive Plan On April 27, 2012, the stockholders of the Company approved the 2012 Incentive Plan, which had been previously adopted by the board of directors. Upon effectiveness of the 2012 Incentive Plan, the Company ceased making awards under the 2010 Incentive Plan. The 2012 Incentive Plan allows the Company to grant awards for up to 1,428,571 shares of common stock plus the number of shares of common stock available for grant under the 2010 Incentive Plan as of the effectiveness of the 2012 Incentive Plan (which is an additional 6,857 shares) plus that number of shares of common stock related to awards outstanding under the 2010 Incentive Plan that terminate by expiration, forfeiture, cancellation, cash settlement or otherwise. The number of shares available for grants of awards under the 2012 Incentive Plan is increased automatically on January 1 by a number of shares of common stock equal to the lesser of 4% of the shares of common stock outstanding at such time or the number of shares determined by the Company’s board of directors. Accordingly, effective January 1, 2016 and 2017, the number of shares authorized for issuance under the 2012 Incentive Plan was increased by 1,611,191 shares and 2,144,867 shares, respectively. Awards under the 2012 Incentive Plan may include the following award types: stock options, which may be either incentive stock options or nonqualified stock options; stock appreciation rights; restricted stock; RSUs; dividend equivalent rights; performance shares; performance units; cash-based awards; other stock-based awards, including unrestricted shares; or any combination of the foregoing. The exercise price of stock options granted under the 2012 Incentive Plan is equal to the closing price of a share of the Company’s common stock on the grant date. As of December 31, 2016, there were 694,923 shares available for grant under the 2012 Incentive Plan, prior to taking into account the additional shares authorized for issuance as of January 1, 2017, as described above. 2015 Director Plan On May 14, 2015, the stockholders of the Company approved the 2015 Director Plan, which had been previously adopted by the board of directors in order to have a plan in addition to the 2012 Incentive Plan for purposes of granting awards to non-employee directors. On May 11, 2016, the Company’s stockholders approved certain amendments to the 2015 Director Plan to limit the number of shares of the Company's common stock subject to awards granted in a calendar year to any non-employee director to 50,000 shares, and to affirm the number of shares reserved for issuance under the plan. The 2015 Director Plan allows the Company to grant awards for up to 500,000 shares of common stock. Awards under the 2015 Director Plan may include the following award types: stock options; stock appreciation rights; restricted stock; RSUs; unrestricted stock; or any combination of the foregoing. The exercise price of stock options granted under the 2015 Director Plan is equal to the closing price of a share of the Company’s common stock on the grant date. As of December 31, 2016, there were 297,544 shares available for grant under the 2015 Director Plan. Stock Options The following table presents a summary of the Company’s stock option activity and related information: Weighted-average Weighted-average remaining Aggregate exercise price per contractual intrinsic value Shares share term (years) (in thousands) Outstanding at December 31, 2015 $ $ Granted Exercised Cancelled Outstanding at December 31, 2016 $ $ Vested at December 31, 2016 $ $ The fair value of each stock option was estimated at the date of grant using a Black-Scholes option-pricing model with the following assumptions: Years Ended December 31, 2014 2015 2016 Dividend yield — — — Volatility 69% - 76% 63% - 65% 57% - 59% Risk-free interest rate 1.65% - 2.07% 1.35% - 1.95% 1.07% - 2.10% Expected term (years) 5.50 - 6.08 5.50 - 6.08 5.50 - 6.08 The Company uses the simplified method as prescribed by U.S. Securities and Exchange Commission Staff Accounting Bulletin No. 107, Share-Based Payment , to calculate the expected term, as it does not have sufficient historical exercise data to provide a reasonable basis upon which to estimate the expected term for options granted. The expected term is applied to all stock option grants as a whole, as the Company does not expect substantially different exercise or post-vesting termination behavior among its population. The computation of expected volatility is based on a blend of the historical volatility of the company and the volatility of a representative group of public biopharmaceutical companies with similar characteristics to the Company, including substantial product development and therapeutic focus. The risk-free interest rate is based on a U.S. Treasury instrument whose term is consistent with the expected term of the stock options. The value of the award is recognized as expense on a straight-line basis over the requisite service period and is adjusted for pre-vesting forfeitures in the period in which the forfeitures occur. For stock awards that have a performance condition, the Company recognizes compensation expense based on its assessment of the probability that the performance condition will be achieved, using an accelerated attribution model, over the explicit or implicit service period. The Company recorded stock-based compensation expense associated with stock options of $11.1 million, $24.5 million, and $40.0 million for the years ended December 31, 2014, 2015 and 2016, respectively. The totals for the years ended December 31, 2014, 2015 and 2016 include $0.3 million, $0.3 million, and $1.0 million, respectively, related to accounting for awards held by non-employee consultants. The weighted-average grant date fair values of options granted in the years ended December 31, 2014, 2015 and 2016 were $20.33, $32.05 and $32.13 per share, respectively. The aggregate intrinsic value of options exercised during the years ended December 31, 2014, 2015 and 2016 was $3.4 million, $11.8 million and $37.4 million, respectively. The intrinsic value of a stock option is the amount by which the fair market value of the underlying stock on the exercise date exceeds the exercise price of the stock option. During July 2016, a former employee resigned from employment with the Company and transitioned to serving the Company as a non-employee consultant through April 30, 2017. As a result, beginning in July 2016, the Company accounted for unvested stock awards previously granted to the employee as non-employee awards. The Company recorded stock-based compensation expense based on the fair values of the awards as measured on their vesting dates, and the fair values of any unvested awards are remeasured at each financial reporting date until they vest, with any increases or decreases in fair value recorded as stock-based compensation expense. Fair values of stock options were determined on each measurement date using the Black-Scholes option pricing model, and fair values of RSUs were equal to the fair market value of the Company’s common stock on each measurement date. During the year ended December 31, 2016, the Company recorded incremental stock-based compensation expense of $1.0 million associated with these awards (options and RSUs), as the result of the change in status of the former employee. In June 2014, June 2015, and June 2016 as provided for under the 2012 Incentive Plan and the 2015 Director Plan, the Company issued 10,411, 3,429 and 6,027 shares of common stock, respectively, with aggregate values of $0.3 million for all three periods, to certain non-employee board members who elected to receive shares of common stock in lieu of cash, as payment of fees owed them for services as members of the Company’s board of directors. At December 31, 2016, there was $107.9 million of total unrecognized compensation cost related to unvested stock options, which the Company expects to recognize over a remaining weighted-average period of 2.6 years. Restricted Stock Units The following table presents a summary of the Company’s RSU activity and related information: Weighted-average grant date fair Shares value per share Unvested restricted stock units at December 31, 2015 $ Granted Vested Forfeited Unvested restricted stock units at December 31, 2016 $ In July 2016, the Company issued 15,000 RSUs with service and performance conditions to certain employees, of which 3,000 vested during the year ended December 31, 2016. Vesting of these awards is contingent on the occurrence of certain milestone events and fulfillment of any remaining service condition. As a result, the related compensation cost is recognized as an expense when achievement of the milestone is considered probable. The expense recognized for these awards is based on the grant date fair value of the Company’s common stock multiplied by the number of units granted. The Company recognized $0.4 million of related expense during the year ended December 31, 2016. The weighted-average grant date fair values of RSUs granted during the years ended December 31, 2014, 2015 and 2016 were $29.04, $56.00, and $58.47 per share, respectively. The total grant date fair value of RSUs that vested during the years ended December 31, 2014, 2015 and 2016 was $0.1 million, $0.5 million and $1.1 million, respectively, based upon the number of RSUs vested multiplied by the closing stock price of the Company’s common stock on the grant date. As of December 31, 2016, there was approximately $37.3 million of unrecognized compensation cost related to unvested RSUs that the Company expects to recognize over a remaining weighted-average period of approximately 3.2 years. Employee Stock Purchase Plan On June 6, 2012, the board of directors adopted the 2012 ESPP, and the stockholders approved it on June 18, 2012, to be effective in connection with the closing of the Company’s initial public offering. A total of 275,000 shares of common stock were originally approved for future issuance under the 2012 ESPP pursuant to purchase rights granted to the Company’s employees or to employees of the Company’s designated subsidiaries. As of December 31, 2016, 194,245 shares remained available for issuance. The 2012 ESPP provides for consecutive six-month offering periods, during which participating employees may elect to have a portion of their compensation withheld and used for the purchase of common stock at the end of each offering period. The purchase price is equal to 85% of the lower of the fair market value of a share of common stock on the first trading date of each offering period or the fair market value of a share of common stock on the last trading day of the offering period, and is limited by participant to $25,000 in fair value of common stock per year. The 2012 ESPP will terminate on June 6, 2022, the tenth anniversary of the date of initial adoption of the plan. For the years ended December 31, 2014, 2015 and 2016, the Company issued a total of 9,845, 20,601 and 42,478 shares of common stock, respectively, under the 2012 ESPP and recognized $0.1 million, $0.3 million and $0.9 million, respectively, in related stock-based compensation expense.

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2016
Income Taxes
Income Taxes	10. Income Taxes The following table presents the components of income (loss) before the provision for (benefit from) income taxes during the years ended December 31, 2014, 2015, and 2016 (in thousands): Years Ended December 31, 2014 2015 2016 United States $ $ $ Foreign (Loss) income before provision for (benefit from) income taxes $ $ $ Provisions for income taxes for the years ended December 31, 2014, 2015 and 2016 are as follows (in thousands): Years Ended December 31, 2014 2015 2016 Current: Federal $ — $ — $ — State — — Foreign — — — — Deferred: Federal — — — State — — — Foreign — — — — Provision for income taxes $ — $ — $ The following table presents a reconciliation of income tax expense (benefit) at the statutory federal income tax rate to the effective income tax rate as reflected in the consolidated financial statements: Years Ended December 31, 2014 2015 2016 Federal income tax (benefit) expense at statutory rate % % % State income tax (benefit) expense Permanent items Foreign rate differential Federal research and development credit Change in valuation allowance Other Effective income tax rate % % % The Company’s effective rate for the year ended December 31, 2016 compared to the year ended December 31, 2015 increased primarily as a result of subsidiary operations in foreign tax jurisdictions and China withholding taxes on the up-front license payment received from Zai Lab. The Company accounts for income taxes in accordance with ASC Topic 740. Deferred income tax assets and liabilities are determined based upon temporary differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The following table presents the principal components of the Company’s deferred tax assets and liabilities (in thousands): December 31, 2015 2016 Deferred tax assets: Federal net operating loss carryforwards $ $ State net operating loss carryforwards Depreciation and amortization Stock-based compensation Tax credit carryforwards Other Total deferred tax assets Less: valuation allowance Net deferred tax assets Deferred tax liability: Debt discount on convertible notes Net deferred taxes $ — $ ASC Topic 740 requires a valuation allowance to reduce the deferred tax assets reported if, based on the weight of available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. After consideration of all the evidence, both positive and negative, the Company has recorded full valuation allowances against its domestic deferred tax assets at both December 31, 2015 and 2016, because management has determined that is it more likely than not that these assets will not be realized. The valuation allowance increased by $150.5 million from December 31, 2015 to December 31, 2016, primarily due to increases in operating losses and tax credits. As of December 31, 2016, the Company had cumulative federal and state net operating loss, or NOL, carryforwards of $660.2 million and $352.8 million, respectively. The federal and state NOL carryforwards will expire at various dates through 2036, if not utilized. The Company adopted ASU No. 2016-09 effective January 1, 2016. As a result of adoption, the deferred tax assets associated with federal and state net operating losses were increased by $13.1 million and $9.1 million, respectively. These amounts were offset by a corresponding increase in the valuation allowance. The adoption of ASU No. 2016-09 with respect to the Company’s NOLs had no impact on the Company’s consolidated statement of operations, balance sheet, or retained earnings. As of December 31, 2016, the Company had federal general business and state research and development tax credit carryforwards of approximately $52.9 million and $3.2 million, respectively, available to reduce future tax liabilities. The federal general business and state research and development tax credits will expire at various dates through 2036. During 2016, a study was conducted to document the qualified research activities of the Company. The study resulted in $22.9 million of additional tax credit carryforward which has been fully offset by a valuation allowance. Under the provisions of the Internal Revenue Code, the NOL and tax credit carryforwards are subject to review and possible adjustment by the Internal Revenue Service and state tax authorities. NOL and tax credit carryforwards may become subject to an annual limitation in the event of certain cumulative changes in the ownership interest of significant shareholders over a three-year period in excess of 50 percent, as defined under Sections 382 and 383 of the Internal Revenue Code, respectively, as well as similar state provisions. This could limit the amount of tax attributes that can be utilized annually to offset future taxable income or tax liabilities. The amount of the annual limitation is determined based on the value of the Company immediately prior to the ownership change. Subsequent ownership changes may further affect the limitation in future years. The Company has completed several financings since its inception which it believes may have resulted in a change in control as defined by Sections 382 and 383 of the Internal Revenue Code. The Company and its subsidiaries file income tax returns in the United States, as well as various state and foreign jurisdictions. Generally, the tax years 2013 through 2015 remain open to examination by the major taxing jurisdictions to which the Company is subject. To the extent the Company has tax attribute carryforwards, the tax years in which the attribute was generated may still be adjusted upon examination by the Internal Revenue Service, or state or foreign tax authorities, to the extent utilized in a future period. A reconciliation of the amount of unrecognized tax benefit is as follows (in thousands): 2016 Balance at December 31, 2015 $ — Increases related to prior year tax positions Increases related to current year tax positions Reductions for tax positions of prior periods — Decreases related to lapse of applicable statute of limitations — Decreases related to settlements with tax authorities — Balance at December 31, 2016 $ During the year ended December 31, 2016, the Company established gross reserves of $4.3 million and $3.4 million related to research and development tax credits and the allocation of taxable income to the various jurisdictions where the Company is subject to tax, respectively. The Company’s policy is to record estimated interest and penalties related to the underpayment of income taxes as a component of its income tax provision. As of December 31, 2015 and 2016, the Company had no accrued interest or penalties related to uncertain tax positions and no amounts have been recognized in the Company’s consolidated statement of operations.

Employee Benefit Plans

Employee Benefit Plans	12 Months Ended
	Dec. 31, 2016
Employee Benefit Plans
Employee Benefit Plans	11. Employee Benefit Plans In 2010, the Company adopted a retirement plan, which is qualified under section 401(k) of the Internal Revenue Code, for its U.S. employees. The plan allows eligible employees to defer, at the employee’s discretion, pre-tax or post-tax compensation up to the IRS annual limits. Company contributions may be made at the discretion of the board of directors. Effective as of January 1, 2012, the Company amended its 401(k) plan to provide for employer matching contributions equal to (1) 100% of employee deferral contributions up to a deferral rate of 3% of compensation, plus (2) 50% of employee deferral contributions up to a deferral rate of an additional 2% of compensation. During the years ended December 31, 2014, 2015 and 2016, the Company made aggregate matching contributions of $0.5 million, $1.0 million and $2.2 million, respectively. The Company maintains a pension plan covering employees of its wholly owned subsidiary in Switzerland. This plan is considered a defined benefit plan and is a government-mandated retirement fund that provides benefits to employees upon retirement, death, or disability. Employer and employee contributions are made based on various percentages of salaries and wages that vary based on employee age and other factors. As of December 31, 2016, the plan had an unfunded net pension obligation of approximately $3.0 million and plan assets of approximately $4.3 million. In 2016, the Company recognized expense of $0.4 million related to this plan.

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2016
Commitments and Contingencies
Commitments and Contingencies	12. Commitments and Contingencies The Company leases office space for its corporate headquarters in Waltham, Massachusetts under a non-cancelable operating lease agreement. Since the lease term commenced on April 1, 2013, the Company has executed four amendments to increase its leased space to a total of approximately 124,000 square feet as of December 31, 2016. The lease term, as amended, continues through June 30, 2020. The lease agreement, as amended, provides for varying periods of free rent with respect to portions of the leased premises and tenant improvement allowances of $2.9 million. The Company also leases 7,100 square feet of office space in Zug, Switzerland for its European headquarters under a non-cancelable operating lease agreement executed in August 2016 with a lease term through August 31, 2021. The Company recognizes rent expense on a straight-line basis over the respective lease term including any free rent periods and tenant allowances. The following table presents future minimum rental commitments, by fiscal year and in the aggregate, as of December 31, 2016 (in thousands): Operating Leases 2017 $ 2018 2019 2020 2021 Thereafter — Total minimum lease payments $ The Company recorded $1.5 million, $2.1 million and $3.4 million in rent expense for the years ended December 31, 2014, 2015 and 2016, respectively. The Company has entered into agreements with certain vendors for the provision of services, including services related to data management clinical operation support services, that the Company is not contractually able to terminate for convenience and avoid any and all future obligations to the vendors. Under such agreements, the Company is contractually obligated to make certain minimum payments to the vendors, with the exact amounts in the event of termination to be based on the timing of the termination and the exact terms of the agreement. Litigation The Company may periodically become subject to legal proceedings and claims arising in connection with ongoing business activities, including claims or disputes related to patents that have been issued or that are pending in the field of research on which the Company is focused. The Company is not a party to any litigation and does not have contingency reserves established for any litigation liabilities.

License and Collaboration Arran

License and Collaboration Arrangements	12 Months Ended
	Dec. 31, 2016
License and Collaboration Arrangements
License and Collaboration Arrangements	13. License and Collaboration Agreements Rolapitant In-License In December 2010, the Company entered into a license agreement with OPKO Health, Inc., or OPKO, to obtain an exclusive, royalty-bearing, sublicensable worldwide license to research, develop, manufacture, market and sell rolapitant. The license agreement also extended to an additional, backup compound, SCH900978, to which the Company has the same rights and obligations as rolapitant, but which the Company is not currently advancing. Under the OPKO license the Company is obligated to use commercially reasonable efforts to conduct all preclinical, clinical, regulatory and other activities necessary to develop and commercialize rolapitant. Under the terms of the OPKO license, the Company paid OPKO $6.0 million upon signing the agreement and issued to OPKO shares of its convertible preferred stock, then valued at $0.6 million which shares have since been converted into common stock. The Company is also required to make development milestone payments to OPKO of up to an aggregate of $30.0 million if specified regulatory and initial commercial sales milestones are achieved. In addition, the Company is required to make additional milestone payments to OPKO of up to an aggregate of $85.0 million if specified levels of annual net sales of rolapitant are achieved. Upon the commencement of commercial sales of rolapitant, the Company is required to pay OPKO tiered royalties on the amount of annual net sales of rolapitant achieved in the United States and Europe at percentage rates that range from the low teens to the low twenties, which the Company expects will result in an effective royalty rate in the low teens. The royalty rate on annual net sales outside of the United States and Europe is slightly above the single digits. The Company is required to pay OPKO an annual minimum royalty of $2.5 million in each of the first five full calendar years of commercial sales of VARUBI. In any year during this period, if royalty payments amount to less than $2.5 million, the difference will be deemed a royalty shortfall and will be payable within 45 days of each calendar year end. Royalty shortfalls may be offset dollar for dollar against royalties due in future periods, for the first five calendar years of VARUBI sales. As of December 31, 2016, the Company had incurred $0.7 million of royalties based on its 2016 VARUBI net product revenues. As this amount was less than the $2.5 million annual minimum, the Company accrued an additional $1.8 million royalty obligation owed to OPKO as of December 31, 2016, which is capitalized in the ‘other assets’ caption on the consolidated balance sheet. The Company believes this amount will be recoverable in future years. If the Company elects to develop and commercialize rolapitant in Japan through a third-party licensee the Company will share equally with OPKO all amounts received by it in connection with such activities under the Company’s agreement with such third party, subject to certain exceptions and deductions. The Company is responsible for all preclinical, clinical, regulatory and other activities necessary to develop and commercialize rolapitant. There were no ongoing clinical trials for rolapitant at the time of its acquisition. As of the date of acquisition, none of the assets acquired had alternative future uses, nor had they reached a stage of technological feasibility. As no processes or activities that would constitute a “business” were acquired along with the license, the transaction was accounted for as an asset acquisition by recording the entire purchase price of $6.6 million as acquired in-process research and development expense. As of December 31, 2016, the Company has made milestone payments to date totaling $20.0 million under this license agreement, $15.0 million of which was paid in November 2015 and has been capitalized as an intangible asset on the consolidated balance sheet. Niraparib In-License In May 2012, the Company entered into a license agreement with Merck Sharp & Dohme Corp., a subsidiary of Merck, under which the Company obtained exclusive, worldwide rights to certain patents and non-exclusive rights to certain Merck know-how, to research, develop, manufacture, market and sell niraparib and a backup compound, MK-2512, for all therapeutic and prophylactic uses in humans. The Company is not currently advancing MK-2512. Under the Merck license, the Company is obligated to use diligent efforts to develop and commercialize a licensed product. Under the terms of the license agreement, the Company was required to make an up-front payment to Merck of $7.0 million in June 2012. The Company is also required to make milestone payments to Merck of up to $57.0 million in development and regulatory milestones for the first indication, up to $29.5 million in development and regulatory milestones for each successive indication, and up to $87.5 million in one-time sales milestones based on the achievement of annual sales objectives. If commercial sales of niraparib commence, the Company will pay Merck tiered royalties at a percentage rate in the low teens based on worldwide annual net sales. As of the date of acquisition, none of the assets acquired had alternative future uses, nor had they reached a stage of technological feasibility. As no processes or activities that would constitute a “business” were acquired along with the license, the transaction has been accounted for as an asset acquisition and the entire purchase price of $7.0 million has been recorded as acquired in-process research and development expense. The Company has made milestone payments to date totaling $12.8 million, including $9.9 million during the year ended December 31, 2016. Immuno-Oncology Platform License In March 2014, the Company entered into a collaboration and exclusive license agreement with AnaptysBio, Inc., or AnaptysBio, a therapeutic antibody company. Under the terms of this agreement, the Company obtained an exclusive, royalty-bearing, sublicensable worldwide license to research, develop, manufacture, market and sell products based on AnaptysBio’s proprietary technology for the discovery, generation and optimization of certain specified immunotherapy antibodies. Specifically, the Company received exclusive rights to monospecific antibody product candidates targeting PD-1, TIM-3 and LAG-3, and certain bi-specific antibody product candidates. The Company and AnaptysBio entered into an amendment in November 2014 to add an additional bi-specific antibody product candidate to the agreement. Under the agreement, AnaptysBio is responsible for performing initial discovery and development of therapeutic antibodies, with the goal of generating immunotherapy antibodies for use in the treatment of cancer. The Company is responsible for the performance and costs of all subsequent preclinical, clinical, regulatory, manufacturing and other activities necessary to develop and commercialize antibodies selected under each of four development programs and is obligated to use commercially reasonable efforts to research, develop or commercialize at least one product under each development program. The Company also entered into an amendment in February 2016 to extend the term of the initial discovery period and the Company’s and AnaptysBio’s associated activities under the agreement. Under the terms of the agreement, the Company made an up-front, non-creditable and non-refundable cash payment of $17.0 million to AnaptysBio in March 2014. Under the terms of the first amendment to the agreement, the Company made an up-front, non-creditable and non-refundable cash payment of $2.0 million in December 2014. The Company is also required to reimburse AnaptysBio on a quarterly basis for up to two years from the effective date of the agreement for specified costs incurred by AnaptysBio in its initial discovery and development activities covered by the agreement. Programs may be extended by mutual agreement of the parties, and the Company can terminate on a program-by-program basis by providing 90 days prior written notice, subject to a wind-down period during which the Company’s obligation to reimburse AnaptysBio for specified costs would continue. For each of the four development programs, the Company will be required to make milestone payments to AnaptysBio of up to $18.0 million if certain research and development milestone events are achieved, and up to an additional $90.0 million of milestone payments if certain U.S. and non-U.S. regulatory submissions and approvals occur in initial and subsequent indications. The Company will be required to pay AnaptysBio tiered single-digit royalties, on a product-by-product basis, on worldwide annual net sales, and additional commercial milestone payments if specified levels of annual net sales of a product are attained. The Company has made milestone payments to date totaling $11.0 million, including $9.0 million during the year ended December 31, 2016. As of the date of the license transaction, none of the assets acquired had alternative future uses, nor had they reached a stage of technological feasibility. As the processes or activities that were acquired along with the license do not constitute a “business”, the transaction has been accounted for as an asset acquisition. In addition, the Company has concluded that it is reimbursing AnaptysBio at fair value for the research services called for under the agreement. As a result of these factors, the up-front payments totaling $19.0 million have been recorded as acquired in-process research and development expense, and no portion of the payments has been ascribed to the future services to be provided to the Company by AnaptysBio. For the years ended December 31, 2015 and 2016, the Company recorded approximately $6.5 million and $3.3 million, respectively, of research and development expense, associated with amounts due to AnaptysBio under the collaboration. Technology Licenses In October 2012, the Company entered into two license agreements with AstraZeneca UK Limited, having aggregate up-front payments of $0.4 million. These agreements provide the Company with the exclusive right to certain methods of treating patients with PARP inhibitors solely with respect to niraparib. Under certain circumstances, the Company may be required to make milestone and royalty payments to AstraZeneca UK Limited based on the achievement of certain development and regulatory milestone events with regard to niraparib, and on net sales of niraparib. The Company has made milestone payments to AstraZeneca totaling $0.4 million to date. Merck Collaboration In May 2015, the Company entered into a research agreement with Merck to perform a trial to evaluate the preliminary safety and efficacy of niraparib plus KEYTRUDA® in patients with triple negative breast cancer and Out-Licenses Janssen Biotech, Inc. On April 5, 2016, the Company entered into separate transactions with Janssen and its affiliate, JJDC, consisting of a collaboration and license agreement with Janssen, or the Collaboration Agreement, and a stock purchase agreement and investor agreement, each with JJDC (the “Stock Purchase Agreement” and the “Investor Agreement,” respectively, and collectively with the Collaboration Agreement, the “Agreements”). Under the terms of the Collaboration Agreement, the Company granted Janssen licenses under certain patent rights and know-how relating to niraparib for prostate cancer worldwide, except for Japan. Janssen will conduct all development and commercialization of niraparib in the field of prostate cancer worldwide (excluding Japan). With the exception of China, under the Collaboration Agreement, the Company retained all rights worldwide to develop and commercialize niraparib outside of prostate cancer. Pursuant to the Collaboration Agreement, within 30 days after the date of the Collaboration Agreement, the Company provided Janssen with electronic copies of certain know-how relating to development of niraparib. In addition, and in return for certain reimbursement, the Company is also responsible for manufacturing and supplying to Janssen all of Janssen’s requirements of active pharmaceutical ingredient, or API, for niraparib and niraparib products to be used by Janssen for its development activities in prostate cancer indications. The Company is also responsible for manufacturing of certain niraparib products and API for commercial sale in the field of prostate cancer. In both cases, the Company will receive reimbursement from Janssen that will at least cover the cost of providing such manufacturing services. The Company received a $35 million up-front, non-refundable license fee from Janssen. Assuming successful development and commercialization of niraparib products for prostate cancer, the Company could receive up to an additional $43 million in clinical milestones and $372 million in regulatory and sales milestones as well as tiered, double-digit royalties on aggregate net sales of products in the field of prostate cancer. Janssen is responsible for funding all development and commercialization of niraparib in prostate cancer worldwide (excluding Japan), including research, development, manufacturing, regulatory and commercialization activities. Janssen may terminate the Collaboration Agreement at any time after April 5, 2017 upon 90 days’ written notice, upon termination of the Merck License Agreement or in the event of certain safety concerns. Either party may terminate the Collaboration Agreement for uncured material breach or bankruptcy. The Company evaluated the Collaboration Agreement under ASC Subtopic 605-25, Multiple Element Arrangements , or ASC 605-25. The Company identified four deliverables including: (1) the licenses under certain patent rights relating to niraparib for prostate cancer worldwide, except for Japan, and transfer of certain development and regulatory information within 30 days after the effective date; (2) the participation in Joint Committees; (3) the Company’s obligation to supply API for Janssen’s development needs; and (4) the Company’s obligation to manufacture clinical supply of niraparib product. Each deliverable was determined to have a stand-alone value and to meet the criteria to be accounted for as a separate unit of accounting. For the license and manufacturing deliverables, the Company considered the manufacturing capabilities of Janssen, Janssen’s right to sublicense and manufacture API, and the fact that the manufacturing services are not proprietary and can be provided by other vendors. The Company is obligated to participate in the Joint Committees and provide development, regulatory and commercialization information to Janssen and, therefore, the Company identified the participation in the Joint Committees as a separate deliverable. The consideration allocable to the delivered unit or units of accounting is limited to the amount that is not contingent upon the delivery of additional items or meeting other specified performance conditions. Therefore, the Company will exclude from the allocable consideration the milestone payments and royalties, regardless of the probability that such milestone and royalty payments will be made, until the events that give rise to such payments actually occur. Consideration for undelivered manufacturing services was not allocated because the amount is not fixed and determinable and it is not being provided at a significant and incremental discount. The Company allocated consideration to each unit of accounting using the relative selling price method based on the Company’s best estimate of selling price for the license and other deliverables. The best estimate of selling price for the license was calculated using an income approach model and using the following key assumptions: the development timeline, revenue forecast, discount rate and probabilities of technical and regulatory success. The Company believes that a change in the assumptions used to determine its best estimate of selling price for the license most likely would not have a significant effect on the allocation of consideration transferred. The amount that the Company recognized concurrent with the transfer of license and certain development and regulatory know-how was limited to the lesser of the amount otherwise allocable using the relative selling price method, which was $45.1 million, or the non-contingent amount, which was the $35.0 million up-front fee. As the remaining deliverables are provided, any consideration received would be first allocated to license revenue until such time as the full $45.1 million has been recognized as license revenue. Thereafter, any consideration received will be allocated to all deliverables based on their relative percentages. Through December 31, 2016, the Company recognized $36.8 million as license and collaboration revenue under the Collaboration Agreement. Revenue allocated to the manufacturing unit of accounting is recognized when general revenue recognition criteria are met, under the proportional performance method. Revenue allocated to the participation in Joint Committees unit of accounting is recognized on a straight-line basis over the Company’s estimate of the period of the obligation to participate in Joint Committees through the completion of any non-contingent deliverables. The Company determined that the milestone payments under the Collaboration Agreement are not subject to ASC Subtopic 605-28, Milestone Method , because the achievement of the milestone events depends solely on Janssen’s performance. The milestone payments will instead be allocated to license revenue and the other units of accounting based on the relative selling price percentages and the revenue associated with the milestone payment will then be recognized in accordance with the pattern of recognition for each unit of accounting to which it was allocated. The Company will recognize royalty revenue and commercial milestones when the specified net sales threshold is achieved. For income statement presentation, sales-based royalties are recognized as earned. Additionally, the Company considered whether the Stock Purchase Agreement and the Investor Agreement with JJDC would be subject to combination with the Collaboration Agreement. The Company determined that they should not be combined because the deliverables and terms in these arrangements are not closely interrelated or interdependent in terms of payment or functionality, the arrangements were negotiated separately, and the common stock was sold at approximately its fair value. In connection with entry into the Agreements with Janssen discussed above, the Company also entered into Amendment No. 1 to the License Agreement dated as of May 22, 2012 by and between the Company and Merck. This amendment was executed in April 2016 to make certain conforming changes to the Agreements with Janssen. Zai Lab (Shanghai) Co., Ltd. On September 28, 2016, or the Effective Date, the Company entered into a Collaboration, Development and License Agreement, or the Zai Agreement, with Zai Lab. Under the terms of the Zai Agreement, the Company exclusively licensed the rights to develop and commercialize niraparib to Zai Lab for the China Territories. Zai Lab will conduct all development and commercialization of niraparib in the China Territories, except for prostate cancer. The Company retains all rights outside of the China Territories, to develop and commercialize niraparib with the exception of prostate cancer. Under the terms of the Zai Agreement, the Company received a $15.0 million up-front, non-refundable license fee from Zai Lab in the fourth quarter of 2016. Assuming successful development and commercialization of niraparib products in the China Territories, the Company could receive additional regulatory and sales milestones as well as tiered, double-digit royalties on aggregate net sales of products in the China Territories. Zai Lab is responsible for funding all development and commercialization of niraparib in the China Territories, including research, development, manufacturing, regulatory and commercialization activities. The term of the Zai Agreement continues, on a country-by-country basis, until the later of expiration of the last patent in the China Territories covering the niraparib product, or ten years from the first commercial sale in such country. The Zai Agreement may also be terminated by Zai Lab at any time upon prior written notice, or by either party for material breach or insolvency. Pursuant to the Zai Agreement, over the six-month period commencing on the Effective Date, the Company agreed to provide Zai Lab with electronic copies of certain know-how relating to the development of niraparib, as well as technical assistance. In addition, and in return for certain reimbursement, the Company is also responsible for manufacturing and supplying to Zai Lab an initial supply of certain materials for niraparib. The Company may also become responsible for manufacturing of certain niraparib products and materials for commercial sale in certain instances based on regulatory requirements in the China Territories. In both cases, the Company will receive reimbursement from Zai Lab that will at least cover the cost of providing such manufacturing services. The Zai Agreement also provides the Company with an option to co-market niraparib in the China Territories with Zai Lab, in return for certain consideration. This co-marketing right must be exercised by the Company prior to the first anniversary of the launch of niraparib in the China Territories. In addition, the Zai Agreement provides the Company with the right of first refusal with respect to licenses for two novel, discovery-stage immuno-oncology programs from Zai Lab. The Company evaluated the Zai Agreement under ASC 605-25. As a result of the inclusion of the co-marketing option and its associated potential future payment, the contract price was determined not to be fixed or determinable. Therefore, the Company has concluded that it has not met certain of the above revenue recognition criteria, and no revenue has been recognized associated with the Zai Agreement. Jiangsu Hengrui Medicine Co., Ltd. In July 2015, the Company entered into a license agreement with Hengrui, pursuant to which Hengrui has licensed the rights to develop, manufacture and commercialize rolapitant in the China Territories. For this arrangement, the Company has determined that there is only one unit of accounting that includes the licensed patents and the licensed know-how, which will be delivered over a period of time. The Company recorded $0.3 million and $0.5 million of license revenue, respectively, related to a $1.0 million up-front payment under this arrangement during the years ended December 31, 2015 and 2016. This $1.0 million payment is being recognized as license revenue over the two-year period of performance relating to the Company’s obligations to provide the licensed know-how to Hengrui. Under the terms of the agreement, the Company would be entitled to additional payments of up to $2.0 million contingent on the achievement of certain regulatory milestones, as well as royalties on product sales at percentage rates in the low teens.

Segment Information

Segment Information	12 Months Ended
	Dec. 31, 2016
Segment Information
Segment Information	14. Segment Information Revenues by Geographic Location Product revenues are attributed to countries based on the location of the customer. License, collaboration and other revenues are attributed to the operations of the Company in the United States. Royalty revenues are attributed to countries based on the location of the collaborator. All revenues for the years ended December 31, 2015 and 2016 were attributed to the United States. Significant Customers Revenues and accounts receivable from each of the Company’s customers who individually accounted for 10% or more of total revenues and/or 10% or more of accounts receivable consisted of the following (* indicates less than 10%): Percent of Total Revenues Percent of Accounts Receivable Years Ended December 31, December 31, 2015 2016 2015 2016 Janssen Biotech, Inc. * % 82 % * % 30 % Jiangsu Hengrui Medicine Co., Ltd. 100 % * % 15 % 12 % Merck Sharp & Dohme B.V. * % * % 85 % 11 % Distributor "A" * % * % * % 41 % In addition, approximately 63% of VARUBI end-user demand from launch through December 31, 2016 was generated by members of a single group purchasing organization with whom the Company has contracted. Property and Equipment, Net by Location Property and equipment, net by location consisted of the following (in thousands): December 31, 2015 2016 United States $ $ Switzerland — Total property and equipment, net $ $

Basis of Presentation and Sig22

Basis of Presentation and Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2016
Basis of Presentation and Significant Accounting Policies
Basis of Presentation	Basis of Presentation The Company’s consolidated financial statements reflect the operations of the Company and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States, or GAAP.
Segment Information	Segment Information Operating segments are defined as components of an enterprise about which separate discrete information is available for evaluation by the chief operating decision maker, or decision-making group, in deciding how to allocate resources and in assessing performance. The Company views its operations and manages its business in one operating segment, which is the business of developing and commercializing safer and more effective oncology-focused therapeutics.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets, liabilities and expenses, other comprehensive loss and the related disclosures. On an ongoing basis, management evaluates its estimates, including estimates related to accrued clinical trial and manufacturing development expenses, net product revenues, license, collaboration and other revenues, stock-based compensation expense, inventory and intangible assets and related amortization. Significant estimates in these consolidated financial statements include estimates made in connection with accrued research and development expenses, stock-based compensation expense, revenue, valuation of convertible notes, intangible assets and related amortization. The Company bases its estimates on historical experience, known trends and other market-specific or other relevant factors that it believes to be reasonable under the circumstances. Actual results may differ from those estimates or assumptions.
Concentrations of Credit Risk and Off-Balance Sheet Risk	Concentrations of Credit Risk and Off-Balance Sheet Risk Financial instruments that potentially subject the Company to concentrations of credit risk are primarily cash and cash equivalents. The Company maintains its cash and cash equivalent balances primarily in the form of money market fund accounts with financial institutions that management believes are creditworthy. The Company’s investment policy includes guidelines on the quality of the institutions and financial instruments and defines allowable investments that the Company believes minimizes the exposure to concentration of credit risk. The Company has no financial instruments with off-balance-sheet risk of loss. The Company also is subject to credit risk from its accounts receivable related to its product sales, collaborators and licenses. As part of its credit management policy, the Company performs ongoing credit evaluations of its customers, and the Company has not required collateral from any customer. The Company has not recorded any allowances for doubtful accounts at either December 31, 2015 or 2016.
Foreign Currency Transactions and Translations Policy [Policy Text Block]	Foreign Currency A subsidiary’s functional currency is the currency of the primary economic environment in which the subsidiary operates; normally, that is the currency of the environment in which a subsidiary primarily generates and expends cash. In making the determination of the appropriate functional currency for a subsidiary, the Company considers cash flow indicators, local market indicators, financing indicators and the subsidiary’s relationship with both the parent company and other subsidiaries. For subsidiaries that are primarily a direct and integral component or extension of the parent entity’s operations, the U.S. dollar is the functional currency. For each foreign subsidiary with a functional currency other than the U.S. dollar, assets and liabilities are translated at current exchange rates at the balance sheet date. Income and expense items are translated at average foreign exchange rates for the period. Adjustments resulting from the translation of the financial statements of these subsidiaries into U.S. dollars are excluded from the determination of net loss and are recorded in accumulated other comprehensive loss, a separate component of stockholders’ equity. For foreign subsidiaries with the U.S. dollar as the functional currency, monetary assets and liabilities are re-measured into U.S. dollars at the current exchange rate on the balance sheet date. Nonmonetary assets and liabilities are re-measured into U.S. dollars at historical exchange rates. Revenue and expense items are translated at average exchange rates prevailing during each period. Consolidated realized and unrealized foreign currency transaction gains and losses were negligible for the years ended December 31, 2015 and 2016.
Product Revenue	Product Revenue Revenues from product sales are recognized when persuasive evidence of an arrangement exists, delivery has occurred and title of the product and associated risk of loss has passed to the customer, the price is fixed or determinable, collection from the customer has been reasonably assured, all performance obligations have been met, and returns and allowances can be reasonably estimated. Product revenues are recorded net of estimated rebates, chargebacks, discounts, co-pay assistance and other deductions as well as estimated product returns. VARUBI is currently distributed in the U.S. principally through a limited number of specialty distributors and to a lesser extent though the specialty pharmacy channel, or collectively, Customers. Customers subsequently resell VARUBI to health care providers and patients. In addition to distribution agreements with Customers, the Company has entered into arrangements with many health care providers and payors that provide for government-mandated and/or privately-negotiated rebates, chargebacks and discounts with respect to the purchase of VARUBI. The Company has determined that it does not yet meet the criteria for the recognition of revenue for shipments of VARUBI at the time of shipment to its specialty pharmacy and specialty distributor customers. For shipments of VARUBI from specialty distributors and from specialty pharmacies to providers and patients through December 31, 2016, allowances for rebates, chargebacks, discounts, co-pay assistance and other deductions are known or are estimable because they are based on the actual invoice information, claims data, or other market information and analyses. As a result, the Company has concluded that it can recognize revenue related to such shipments. For units that remained in distribution channel inventories as of December 31, 2016, the Company continues to conclude that it cannot yet reasonably make certain estimates necessary to recognize revenue on such shipments. During the year ended December 31, 2016, the Company recognized $6.9 million in net product revenue related to VARUBI sales. No net product revenue was recognized for the years ended December 31, 2014 or 2015.
License, Collaboration and Other Revenues	License, Collaboration and Other Revenues The Company may enter into arrangements under which it licenses certain rights to its product candidates to third parties. Revenues from license arrangements are recognized when persuasive evidence of an arrangement exists, delivery of goods or services has occurred (including passage of title to the product and associated risk of loss to the customer), the price is fixed or determinable, collection from the customer has been reasonably assured, all performance obligations have been met, and associated reductions of revenue can be reasonably estimated, if any. Activities under licensing agreements are evaluated to determine if they represent a multiple element arrangement. The Company identifies the deliverables included within the agreement and evaluates which deliverables represent separate units of accounting. The Company accounts for those components as separate units of accounting if the following two criteria are met: · the delivered item or items have stand-alone value to the customer; and · if the arrangement includes a general right of return relative to the delivered item(s), delivery or performance of the undelivered item(s) is considered probable and substantially in the control of the Company. Factors considered in this determination include, among other things, whether any other vendors sell the items separately and if the licensee could use the delivered item for its intended purpose without the receipt of the remaining deliverables. The consideration that is fixed or determinable is allocated to the separate units of accounting based on the relative selling prices of each deliverable. The consideration allocated to each unit of accounting is recognized as the related goods and services are delivered. The amount allocable to the delivered units of accounting is limited to the amount that is not contingent upon the delivery of additional items or meeting other specified performance conditions. The Company determines the selling price on the basis of vendor-specific objective evidence, or VSOE, third party evidence, or best estimate of selling price. VSOE is the price charged for a deliverable when it is sold separately. Third party evidence is the price that the Company or vendors charge for a similar deliverable when sold separately. Best estimate is the price at which the Company would sell the deliverable if the Company sold the deliverable regularly on a stand-alone basis. When multiple deliverables are combined and accounted for as a single unit of accounting, the Company bases its revenue recognition on the last element to be delivered using the straight-line or proportional performance method depending on the Company’s ability to estimate the performance obligation. Amounts received or recorded as receivable prior to satisfying the associated revenue recognition criteria are recorded as deferred revenue or customer deposits on the consolidated balance sheets. Amounts not expected to be recognized within one year following the balance sheet date are classified as non-current deferred revenue. If a future milestone payment under a license agreement is contingent upon the achievement of a substantive milestone, license revenue is recognized in its entirety in the period in which the milestone is achieved. A milestone is substantive if: · it can only be achieved based in whole or in part on either the Company’s performance or the occurrence of a specific outcome resulting from the Company’s performance; · there is substantive uncertainty at the date an arrangement is entered into that the event will be achieved; and · it would result in additional payments being due to the Company. Commercial milestone and royalty payments received under license agreements will be recognized as license revenue when they are earned. In July 2015, the Company entered into a license agreement with Jiangsu Hengrui Medicine Co., Ltd., or Hengrui, pursuant to which Hengrui has licensed the rights to develop, manufacture and commercialize rolapitant in China, including Hong Kong and Macao, or the China Territories. In April 2016, the Company entered into a collaboration and license agreement with Janssen Biotech, Inc., or Janssen, under which the Company granted Janssen licenses under certain patent rights and know-how relating to niraparib, for prostate cancer worldwide, except Japan. In September 2016, the Company entered into a collaboration, development and license agreement with Zai Lab (Shanghai) Co., Ltd., or Zai Lab, under which the Company granted Zai Lab an exclusive license to develop and commercialize niraparib in the China Territories. See Note 13, “ License and Collaboration Arrangements ”, for further discussion of these out-license agreements.
Cash and Cash Equivalents	Cash and Cash Equivalents The Company considers all highly-liquid investments with original or remaining maturity from the date of purchase of three months or less to be cash equivalents. Cash and cash equivalents include bank demand deposits and money market funds that invest primarily in certificates of deposit, commercial paper and U.S. government and U.S. government agency obligations. Cash equivalents are reported at fair value.
Restricted Cash	Restricted Cash Restricted cash consists of cash balances held as collateral for the Company’s employee credit card programs.
Fair Value of Financial Instruments	Fair Value of Financial Instruments The Company is required to disclose information on all assets and liabilities reported at fair value that enables an assessment of the inputs used in determining the reported fair values. The fair value hierarchy prioritizes valuation inputs based on the observable nature of those inputs. The fair value hierarchy applies only to the valuation inputs used in determining the reported fair value of the investments and is not a measure of investment credit quality. The hierarchy defines three levels of valuation inputs: Level 1 inputs Quoted prices in active markets for identical assets or liabilities Level 2 inputs Observable inputs other than Level 1 inputs, including quoted prices in active markets for similar assets or liabilities and quoted prices for identical assets or liabilities in markets that are not active Level 3 inputs Unobservable inputs that reflect the Company’s own assumptions about the assumptions market participants would use in pricing the asset or liability The following table presents information about the Company’s financial assets and liabilities that have been measured at fair value at December 31, 2015 and 2016 and indicates the fair value hierarchy of the valuation inputs utilized to determine such fair value (in thousands): December 31, 2015 Description Balance Sheet Classification Total Level 1 Level 2 Level 3 Assets: Money market funds Cash and cash equivalents $ $ $ — $ — Total assets $ $ $ — $ — December 31, 2016 Description Balance Sheet Classification Total Level 1 Level 2 Level 3 Assets: Money market funds Cash and cash equivalents $ $ $ — $ — Total assets $ $ $ — $ — The carrying amounts of accounts payable and accrued expenses approximate their fair values due to their short-term maturities. In September 2014, the Company issued $201.3 million aggregate principal amount of 3.00% convertible senior notes due October 1, 2021, or the Convertible Notes. Interest is payable semi-annually in arrears on April 1 and October 1 of each year, beginning on April 1, 2015. As of December 31, 2016, the carrying value of the Convertible Notes was $131.8 million, net of unamortized discount and debt issuance costs and the fair value of the principal amount was $771.4 million. The Convertible Notes are discussed in more detail in Note 7, “ Convertible Notes. ”
Property and Equipment	Property and Equipment Property and equipment are stated at cost, less accumulated depreciation. Property and equipment are depreciated using the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized over the economic life of the asset or the remaining lease term, whichever is shorter. Maintenance and repairs are expensed as incurred. The following estimated useful lives were used to depreciate the Company’s assets: Estimated Useful Life Furniture and fixtures years Computer equipment and software years Manufacturing equipment years Leasehold improvements Shorter of the useful life or the remaining lease term Upon retirement or sale, the cost of the disposed asset and the related accumulated depreciation are removed from the accounts and any resulting gain or loss is recognized in income. The Company reviews long-lived assets when events or changes in circumstances indicate the carrying value of the assets may not be recoverable. Recoverability is measured by comparison of an asset’s book value to the estimated undiscounted future net cash flows that the asset is expected to generate. If the estimated future undiscounted net cash flows are less than the book value, the asset is considered to be impaired, and the impairment loss to be recognized in income is measured as the amount by which the book value of the asset exceeds its fair value, which is measured based on the estimated discounted future net cash flows that the asset is expected to generate.
Research and Development Expenses	Research and Development Expenses Research and development costs are charged to expense as incurred and include: · pre-commercial license fees and milestone payments related to the acquisition of in-licensed product candidates, which are reported on the statements of operations as acquired in-process research and development; · employee-related expenses, including salaries, bonuses, benefits, travel and stock-based compensation expense; · fees and expenses incurred under agreements with contract research organizations, investigative sites, research consortia and other entities in connection with the conduct of clinical trials and preclinical studies and related services, such as administrative, data management, laboratory and biostatistics services; · the cost of acquiring, developing and manufacturing active pharmaceutical ingredients for product candidates that have not received regulatory approval, clinical trial materials and other research and development materials; · fees and costs related to regulatory filings and activities; · facilities, depreciation and other expenses, which include direct and allocated expenses for rent, utilities, maintenance of facilities, insurance and other supplies; and · other costs associated with clinical and preclinical activities. Costs for certain development activities, such as clinical trials and manufacturing development activities, are recognized based on an evaluation of the progress to completion of specific tasks using data such as patient enrollment, clinical site activations, or information provided to the Company by its vendors on their actual costs incurred or level of effort expended. Payments for these activities are based on the terms of the individual arrangements, which may differ from the pattern of costs incurred, and are reflected on the consolidated balance sheets as prepaid or accrued research and development expenses. Certain clinical development costs incurred by the Company with respect to its niraparib program are reimbursed as part of a collaborative research agreement with Merck Sharp & Dohme B.V., a subsidiary of Merck & Co., Inc., or Merck. Cost-sharing amounts received by the Company are recorded as a reduction to research and development expenses.
Acquired In-Process Research and Development Expense	Acquired In-Process Research and Development Expense The Company has acquired the rights to develop and commercialize new product candidates. Up-front payments that relate to the acquisition of a new drug compound, as well as pre-commercial milestone payments, are immediately expensed as acquired in-process research and development in the period in which they are incurred, provided that the new drug compound did not also include processes or activities that would constitute a “business” as defined under GAAP, the drug has not achieved regulatory approval for marketing and, absent obtaining such approval, has no alternative future use. Milestone payments made to third parties subsequent to regulatory approval are capitalized as intangible assets and amortized over the estimated remaining useful life of the related product. Royalties owed on sales of the products licensed pursuant to the agreements are expensed in the period the related revenues are recognized.
Advertising Expenses	Advertising Expenses The costs of advertising are expensed as incurred and included in selling, general, and administrative expenses in the consolidated statements of operations and comprehensive loss. For the years ended December 31, 2014, 2015 and 2016, advertising expenses totaled $1.1 million, $3.6 million, and $9.2 million, respectively.
Comprehensive Loss	Comprehensive Loss Comprehensive loss is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. Comprehensive loss consists of net loss and other comprehensive loss. Other comprehensive loss includes foreign currency translation adjustments and unrealized gains and losses on pension obligations.
Income Taxes	Income Taxes The Company accounts for income taxes in accordance with Accounting Standards Codification, or ASC, Topic 740, Accounting for Income Taxes , which provides for deferred taxes using an asset and liability approach. The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. The Company determines its deferred tax assets and liabilities based on differences between financial reporting and tax bases of assets and liabilities, which are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. Valuation allowances are provided if, based upon the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. The Company accounts for uncertain tax positions in accordance with the provisions of ASC Topic 740. When uncertain tax positions exist, the Company recognizes the tax benefit of tax positions to the extent that the benefit will more likely than not be realized. The determination as to whether the tax benefit will more likely than not be realized is based upon the technical merits of the tax position as well as consideration of the available facts and circumstances. The Company has not provided for U.S. income taxes on the undistributed earnings of foreign subsidiaries, as it currently plans to permanently reinvest these amounts and has the intent and ability to do so. Such earnings to date have been immaterial.
Stock-Based Compensation Expense	Stock-Based Compensation Expense Stock-based compensation is recognized as expense for each stock-based award based on its estimated fair value. The Company determines the fair value of each stock option award at its grant date using the Black-Scholes option pricing model. The Company determines the fair value of each restricted stock unit at its grant date based on the closing market price of the Company’s common stock on that date. The value of the award is recognized as expense on a straight-line basis over the requisite service period and is adjusted for pre-vesting forfeitures in the period in which the forfeitures occur. For stock awards that have a performance condition, the Company recognizes compensation expense based on its assessment of the probability that the performance condition will be achieved, using an accelerated attribution model, over the explicit or implicit service period.
Inventory	Inventory Inventories are stated at the lower of cost or estimated net realizable value, on a first-in, first-out, or FIFO, basis. Prior to the regulatory approval of its product candidates, the Company incurs expenses for the manufacture of drug product that could potentially be available to support the commercial launch of its products. Until the first reporting period when regulatory approval has been received or is otherwise considered probable, the Company records all such costs as research and development expense. Beginning in the third quarter of 2015, the Company began to capitalize inventory costs associated with VARUBI when it was determined that the inventory had a probable future economic benefit. The Company periodically analyzes its inventory levels, and writes down inventory that has become obsolete, inventory that has a cost basis in excess of its estimated realizable value and inventory in excess of expected sales requirements as cost of product sales. The determination of whether inventory costs will be realizable requires estimates by management. If actual market conditions are less favorable than projected by management, additional write-downs of inventory may be required, which would be recorded as a cost of product sales in the consolidated statements of operations.
Intangible Assets	Intangible Assets The Company maintains definite-lived intangible assets related to certain capitalized milestones. These assets are amortized on a straight-line basis over their remaining useful lives, which are estimated to be the remaining patent life. If the Company’s estimate of the product’s useful life is shorter than the remaining patent life, then the shorter period is used. Amortization expense is recorded as a component of cost of sales in the consolidated statements of operations. The Company assesses its intangible assets for impairment if indicators are present or changes in circumstance suggest that impairment may exist. Events that could result in an impairment, or trigger an interim impairment assessment, include the receipt of additional clinical or nonclinical data regarding our drug candidate or a potentially competitive drug candidate, changes in the clinical development program for a drug candidate, or new information regarding potential sales for the drug. If impairment indicators are present or changes in circumstance suggest that impairment may exist, the Company performs a recoverability test by comparing the sum of the estimated undiscounted cash flows of each intangible asset to its carrying value on the consolidated balance sheet. If the undiscounted cash flows used in the recoverability test are less than the carrying value, the Company would determine the fair value of the intangible asset and recognize an impairment loss if the carrying value of the intangible asset exceeds its fair value.
Net Loss Per Share	Net Loss Per Share Basic and diluted net loss per common share is calculated by dividing net loss applicable to common stockholders by the weighted-average number of common shares outstanding during the period, without consideration of common stock equivalents. The Company’s potentially dilutive shares, which include outstanding stock awards, unvested restricted stock, and shares issuable upon conversion of the Convertible Notes, are considered to be common stock equivalents and are only included in the calculation of diluted net loss per share when their effect is dilutive. The following table presents amounts that were excluded from the calculation of diluted net loss per share, due to their anti-dilutive effect (in thousands): Years Ended December 31, 2014 2015 2016 Outstanding stock awards Unvested restricted stock — — Shares issuable upon conversion of Convertible Notes — In September 2014, the Company issued Convertible Notes, which provide in certain situations for the conversion of the outstanding principal amount of the Convertible Notes into shares of the Company’s common stock at a predefined conversion rate. See Note 7, “ Convertible Notes ”, for additional information. In conjunction with the issuance of the Convertible Notes, the Company entered into capped call option transactions, or Capped Calls, with certain counterparties. The Capped Calls are expected generally to reduce the potential dilution, and/or offset, to an extent, the cash payments the Company may choose to make in excess of the principal amount, upon conversion of the Convertible Notes. As provided by the terms of the indenture underlying the Convertible Notes, the Company has a choice to settle the conversion obligation for the Convertible Notes in cash, shares or any combination of the two. The Company currently intends to settle the par value of the Convertible Notes in cash and any excess conversion premium in shares. Accordingly, the par value of the Convertible Notes will not be included in the calculation of diluted income per share, but the dilutive effect of the conversion premium will be considered in the calculation of diluted net income per share using the treasury stock method. The Convertible Notes were convertible as of December 31, 2016 and 2015. The share figures in the table above represent the estimated incremental shares that would be issued, after the consideration of the Capped Calls, assuming conversion of all of the outstanding Convertible Notes as of the respective balance sheet date.
New Accounting Pronouncements - Recently Adopted	New Accounting Pronouncements - Recently Adopted In June 2014, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update, or ASU, No. 2014-12. The amendments in this ASU apply to reporting entities that grant their employees share-based payments in which the terms of the award provide that a performance target can be achieved after a requisite service period. The amendments require an entity to treat a performance target that affects vesting, and that could be achieved after the requisite service period, as a performance condition. A reporting entity should apply existing guidance in ASC Topic 718 relating to awards with performance conditions that affect vesting to account for such awards. The performance target should not be reflected in estimating the grant-date fair value of the award. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. The amendments in this ASU are effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2015, and early adoption is permitted. The Company adopted this ASU on January 1, 2016, and the adoption of this guidance did not have an impact on the Company’s consolidated financial statements. In April 2015, the FASB issued ASU No. 2015-05, which provides guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The guidance will not change GAAP for a customer’s accounting for service contracts. ASU No. 2015-05 is effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2015. Early adoption is permitted. An entity can elect to adopt the amendments either (1) prospectively to all arrangements entered into or materially modified after the effective date, or (2) retrospectively. For prospective transition, the only disclosure requirements at transition are the nature of and reason for the change in accounting principle, the transition method, and a qualitative description of the financial statement line items affected by the change. For retrospective transition, the disclosure requirements at transition include the requirements for prospective transition and quantitative information about the effects of the accounting change. The Company adopted this ASU prospectively on January 1, 2016 and the adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, which simplifies various aspects of accounting for share-based payments to employees. Key provisions of the new standard include requiring excess tax benefits and shortfalls to be recorded as income tax benefit or expense in the income statement, rather than in equity, and permitting an election to record the impact of pre-vesting forfeitures as they occur. The new guidance is effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years, with early adoption permitted. The Company elected to early adopt ASU No. 2016-09, effective January 1, 2016. Impact of Adoption As a result of adopting ASU No. 2016-09, the Company adjusted retained earnings for amendments related to an entity-wide accounting policy election to recognize the impact of share-based award forfeitures only as they occur rather than by applying an estimated forfeiture rate as previously required. ASU No. 2016-09 requires that this change be applied using a modified-retrospective transition method by means of a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year in which the guidance is adopted. The following table summarizes the impact to the Company’s consolidated balance sheet, including the amount charged to retained earnings as of January 1, 2016 (in thousands): Balance Sheet Classification Amount Increase to additional paid-in capital resulting from the Company's election to recognize forfeitures as they occur rather than applying an estimated forfeiture rate Additional paid-in capital $ 1,278 Charge to accumulated deficit for cumulative-effect adjustment from adoption of ASU No. 2016-09 Accumulated deficit $ 1,278 See Note 10, “ Income Taxes”, for further discussion of the adoption of this guidance. In August 2014, the FASB issued ASU No. 2014-15, which is intended to define management’s responsibility to evaluate whether there is substantial doubt about an organization’s ability to continue as a going concern and to provide related footnote disclosures. Substantial doubt about an entity’s ability to continue as a going concern exists when relevant conditions and events, considered in the aggregate, indicate that it is probable that the entity will be unable to meet its obligations as they become due within one year after the date that the financial statements are issued (or are available to be issued). ASU No. 2014-15 provides guidance to an organization’s management, with principles and definitions intended to reduce diversity in the timing and content of disclosures commonly provided by organizations in the footnotes of their financial statements. ASU No. 2014-15 is effective for annual reporting periods ending after December 15, 2016, and for annual and interim periods thereafter. The Company adopted this guidance as of December 31, 2016. The adoption of this guidance did not have an impact on the Company’s consolidated financial statements. Management of the Company considered any relevant potential conditions and events, and has concluded that when considered in the aggregate, such conditions and events do not give rise to substantial doubt about the Company’s ability to continue as a going concern through at least the twelve months following the filing of this Annual Report on Form 10-K. Therefore, no further disclosures are currently required.

Basis of Presentation and Sig23

Basis of Presentation and Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2016
Schedule of company's financial assets and liabilities that have been measured at fair value and indicating the fair value hierarchy of the valuation inputs utilized to determine such fair value:	The following table presents information about the Company’s financial assets and liabilities that have been measured at fair value at December 31, 2015 and 2016 and indicates the fair value hierarchy of the valuation inputs utilized to determine such fair value (in thousands): December 31, 2015 Description Balance Sheet Classification Total Level 1 Level 2 Level 3 Assets: Money market funds Cash and cash equivalents $ $ $ — $ — Total assets $ $ $ — $ — December 31, 2016 Description Balance Sheet Classification Total Level 1 Level 2 Level 3 Assets: Money market funds Cash and cash equivalents $ $ $ — $ — Total assets $ $ $ — $ —
Schedule of estimated useful lives that were used to depreciate the Company's assets:	The following estimated useful lives were used to depreciate the Company’s assets: Estimated Useful Life Furniture and fixtures years Computer equipment and software years Manufacturing equipment years Leasehold improvements Shorter of the useful life or the remaining lease term
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block]	Years Ended December 31, 2014 2015 2016 Outstanding stock awards Unvested restricted stock — — Shares issuable upon conversion of Convertible Notes —
Summary of impact to Company's condensed consolidated balance sheet for early adoption of Accounting Standard Update	The following table summarizes the impact to the Company’s consolidated balance sheet, including the amount charged to retained earnings as of January 1, 2016 (in thousands): Balance Sheet Classification Amount Increase to additional paid-in capital resulting from the Company's election to recognize forfeitures as they occur rather than applying an estimated forfeiture rate Additional paid-in capital $ 1,278 Charge to accumulated deficit for cumulative-effect adjustment from adoption of ASU No. 2016-09 Accumulated deficit $ 1,278
Product Revenue (Member)
Schedule of estimated impact to revenues after adoption of Topic 606	Range of estimated increase (decrease) Year ended December 31, 2015 2016 Low High Low High Product revenue, net $ $ $ $
License Revenue (Member)
Schedule of estimated impact to revenues after adoption of Topic 606	Range of estimated increase (decrease) Year ended December 31, 2015 2016 Low High Low High License, collaboration and other revenue $ — $ — $ — $

Inventories (Tables)

Inventories (Tables)	12 Months Ended
	Dec. 31, 2016
Inventories
Schedule of current inventories	December 31, 2015 2016 Raw materials $ $ Work in process Finished goods Total inventories $ $

Intangible Asset (Tables)

Intangible Asset (Tables)	12 Months Ended
	Dec. 31, 2016
Intangible Assets
Schedule of finite-lived intangible assets	December 31, 2015 2016 Estimated useful life Intangible asset - OPKO milestone $ $ Years Less accumulated amortization Total intangible asset, net $ $
Schedule of estimated future amortization expense for finite-lived intangible assets	Total 2017 $ 2018 2019 2020 2021 Thereafter $

Property and Equipment (Tables)

Property and Equipment (Tables)	12 Months Ended
	Dec. 31, 2016
Property and Equipment
Schedule of property and equipment and related accumulated depreciation	December 31, 2015 2016 Furniture and fixtures $ $ Computer equipment and software Leasehold improvements Manufacturing equipment Total property and equipment, at cost Less accumulated depreciation and amortization Total property and equipment, net $ $

Accrued Expenses (Tables)

Accrued Expenses (Tables)	12 Months Ended
	Dec. 31, 2016
Accrued Expenses
Schedule of accrued expenses	The following table presents the components of accrued expenses (in thousands): December 31, 2015 2016 Research and development $ $ Salaries, bonuses and other compensation Sales and marketing Professional services Other accrued expenses Total accrued expenses $ $

Convertible Notes (Tables)

Convertible Notes (Tables)	12 Months Ended
	Dec. 31, 2016
Convertible Notes.
Schedule of convertible note balances	The Company’s outstanding convertible note balances at December 31, 2016 consisted of the following (in thousands): December 31, 2016 Liability component Principal $ Less: debt discount and issuance costs, net Net carrying amount $ Equity component $
Schedule of convertible note interest expense	The following table sets forth total interest expense recognized related to the Convertible Notes during the years ended December 31, 2015 and 2016 (in thousands): Years Ended December 31, 2015 2016 Contractual interest expense $ $ Amortization of debt discount Amortization of debt issuance costs Total interest expense $ $

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	12 Months Ended
	Dec. 31, 2016
Stock-Based Compensation
Schedule of stock-based compensation expense as reflected in the Company's condensed consolidated statements of operations and comprehensive loss	The following table presents stock-based compensation expense as reflected in the Company’s consolidated statements of operations and comprehensive loss (in thousands): Years Ended December 31, 2014 2015 2016 Research and development $ $ $ Selling, general and administrative Total stock-based compensation expense $ $ $
Summary of the Company's stock option activity and related information	Weighted-average Weighted-average remaining Aggregate exercise price per contractual intrinsic value Shares share term (years) (in thousands) Outstanding at December 31, 2015 $ $ Granted Exercised Cancelled Outstanding at December 31, 2016 $ $ Vested at December 31, 2016 $ $
Schedule of Black-Scholes assumptions	The fair value of each stock option was estimated at the date of grant using a Black-Scholes option-pricing model with the following assumptions: Years Ended December 31, 2014 2015 2016 Dividend yield — — — Volatility 69% - 76% 63% - 65% 57% - 59% Risk-free interest rate 1.65% - 2.07% 1.35% - 1.95% 1.07% - 2.10% Expected term (years) 5.50 - 6.08 5.50 - 6.08 5.50 - 6.08
Summary of the Company's restricted stock unit (RSU) activity and related information	Weighted-average grant date fair Shares value per share Unvested restricted stock units at December 31, 2015 $ Granted Vested Forfeited Unvested restricted stock units at December 31, 2016 $

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2016
Income Taxes
Schedule of components of income before income tax	Years Ended December 31, 2014 2015 2016 United States $ $ $ Foreign (Loss) income before provision for (benefit from) income taxes $ $ $
Schedule of components of income tax provision	Years Ended December 31, 2014 2015 2016 Current: Federal $ — $ — $ — State — — Foreign — — — — Deferred: Federal — — — State — — — Foreign — — — — Provision for income taxes $ — $ — $
Schedule of reconciliation of income tax expense (benefit) at the statutory federal income tax rate to the effective income tax rate as reflected in the consolidated financial statements	Years Ended December 31, 2014 2015 2016 Federal income tax (benefit) expense at statutory rate % % % State income tax (benefit) expense Permanent items Foreign rate differential Federal research and development credit Change in valuation allowance Other Effective income tax rate % % %
Schedule of principal components of the Company's deferred tax assets and liabilities	December 31, 2015 2016 Deferred tax assets: Federal net operating loss carryforwards $ $ State net operating loss carryforwards Depreciation and amortization Stock-based compensation Tax credit carryforwards Other Total deferred tax assets Less: valuation allowance Net deferred tax assets Deferred tax liability: Debt discount on convertible notes Net deferred taxes $ — $
Schedule of unrecognized tax benefit roll forward	2016 Balance at December 31, 2015 $ — Increases related to prior year tax positions Increases related to current year tax positions Reductions for tax positions of prior periods — Decreases related to lapse of applicable statute of limitations — Decreases related to settlements with tax authorities — Balance at December 31, 2016 $

Commitments and Contingencies (

Commitments and Contingencies (Tables)	12 Months Ended
	Dec. 31, 2016
Commitments and Contingencies
Schedule of future minimum rental commitments	Operating Leases 2017 $ 2018 2019 2020 2021 Thereafter — Total minimum lease payments $

Segment Information (Tables)

Segment Information (Tables)	12 Months Ended
	Dec. 31, 2016
Segment Information
Schedule of revenue and accounts receivable of significant customers	Percent of Total Revenues Percent of Accounts Receivable Years Ended December 31, December 31, 2015 2016 2015 2016 Janssen Biotech, Inc. * % 82 % * % 30 % Jiangsu Hengrui Medicine Co., Ltd. 100 % * % 15 % 12 % Merck Sharp & Dohme B.V. * % * % 85 % 11 % Distributor "A" * % * % * % 41 %
Schedule of property and equipment, net by location	Property and equipment, net by location consisted of the following (in thousands):

Consolidated Quarterly Financia

Consolidated Quarterly Financial Data - Unaudited (Tables)	12 Months Ended
	Dec. 31, 2016
Consolidated Quarterly Financial Data - Unaudited
Schedule of unaudited consolidated quarterly financial data	15. Consolidated Quarterly Financial Data - Unaudited The following table presents unaudited consolidated quarterly financial data for the years ended December 31, 2015 and 2016 (in thousands, except per share data): Three Months Ended March 31, June 30, September 30, December 31, March 31, June 30, September 30, December 31, 2015 2015 2015 2015 2016 2016 2016 2016 (h) Revenues: Product revenue, net $ — $ — $ — $ — $ $ $ $ License, collaboration and other revenues — — (d) Total revenues — — Expenses: Cost of sales - product — — — — Cost of sales - intangible asset amortization — — — Research and development Selling, general and administrative Acquired in-process research and development — (a) — (b) (c) (e) (f) (g) Total expenses Loss from operations Interest expense Interest income Loss before income taxes Provision for income taxes — — — — — — — Net loss $ $ $ $ $ $ $ $ Net loss per share - basic and diluted $ $ $ $ $ $ $ $ Weighted-average shares - basic and diluted (a) In the quarter ended June 30, 2015, the Company incurred a $1.0 million milestone obligation to AnaptysBio related to the immuno-oncology platform. (b) In the quarter ended December 31, 2015, the Company made a $1.0 million milestone payment to AnaptysBio related to the immuno-oncology platform. (c) In the quarter ended March 31, 2016, the Company made a $4.0 million milestone payment to AnaptysBio related to the immuno-oncology platform. (d) In the quarter ended June 30, 2016, the Company received $35.0 million and transferred the license and related know-how required under its Collaboration Agreement with Janssen. (e) In the quarter ended June 30, 2016, the Company made a $4.0 million milestone payment to AnaptysBio related to the immuno-oncology platform. (f) In the quarter ended September 30, 2016, the Company made a $1.0 million milestone payment to AnaptysBio related to the immuno-oncology platform and incurred a $0.9 million milestone obligation related to Merck as a result of achieving development and regulatory milestones related to niraparib. (g) In the quarter ended December 31, 2016, the Company made milestone payments of $9.0 million to Merck as a result of achieving development and regulatory milestones related to niraparib. (h) Amounts for the quarter ended March 31, 2016 have been retroactively adjusted to reflect an increase in research and development costs and selling, general and administrative costs in the amount of $0.1 million and $0.1 million, respectively, as a result of the adoption of ASU 2016-09.

Nature of Business - Company In

Nature of Business - Company Information and Public Offerings (Details)	12 Months Ended
	Dec. 31, 2016segment
Description of Business
Number of operating segments	1

Basis of Presentation and Sig35

Basis of Presentation and Significant Accounting Policies - Credit Risk and Revenue (Details) $ in Thousands	3 Months Ended				12 Months Ended
	Dec. 31, 2016USD ($)item	Sep. 30, 2016USD ($)	Jun. 30, 2016USD ($)	Mar. 31, 2016USD ($)	Dec. 31, 2016USD ($)item	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)
Concentration Risks, Types, No Concentration Percentage [Abstract]
Number of off-balance sheet financial instruments with credit risk | item					0
Provision for Doubtful Accounts | $					$ 0	$ 0
Revenues:
Product revenue, net | $	$ 2,469	$ 2,799	$ 1,436	$ 173	$ 6,877	$ 0	$ 0
Number of criteria needed for classification | item	2				2

Basis of Presentation and Sig36

Basis of Presentation and Significant Accounting Policies - Financial Instruments and Convertible Senior Notes (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Sep. 29, 2014
Convertible Senior Notes
Aggregate principal amount	$ 201,300
Fair value of principal amount	131,800
Convertible senior notes due October 2021
Convertible Senior Notes
Aggregate principal amount	201,250		$ 201,300	$ 201,300
Interest rate (as a percent)				3.00%	3.00%
Carrying value	131,775
Fair value of principal amount	771,400
Fair Value, Measurements, Recurring
Financial Assets and Liabilities Measured At Fair Value
Total assets	766,186	$ 224,885
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1
Financial Assets and Liabilities Measured At Fair Value
Total assets	766,186	224,885
Money Market Funds | Fair Value, Measurements, Recurring
Financial Assets and Liabilities Measured At Fair Value
Cash and cash equivalents	766,186	224,885
Money Market Funds | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1
Financial Assets and Liabilities Measured At Fair Value
Cash and cash equivalents	$ 766,186	$ 224,885

Summary of Significant Accounti

Summary of Significant Accounting Policies - Property and Equipment (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Marketing and Advertising Expense [Abstract]
Advertising Expense	$ 9.2	$ 3.6	$ 1.1
Furniture and Fixtures
Property and Equipment
Estimated Useful Life	5 years
Computer Equipment and Software
Property and Equipment
Estimated Useful Life	3 years
Manufacturing Equipment
Property and Equipment
Estimated Useful Life	7 years

Summary of Significant Accoun38

Summary of Significant Accounting Policies - Net Loss Per Share and New Acct Pronouncements (Details) - USD ($) shares in Thousands, $ in Thousands	Jan. 01, 2016	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Net Loss per Share
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount		11,504	6,430	3,746
New Accounting Pronouncements
Other Assets, Noncurrent		$ 3,795	$ 779
Convertible Notes Payable		131,775	121,325
Maximum
New Accounting Pronouncements
Amount of revised product revenue not recognized in period		1,000
Current Assets (Member) | Minimum
New Accounting Pronouncements
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification		$ 1,000	2,000
Current Assets (Member) | Maximum
New Accounting Pronouncements
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification			$ 3,000
Outstanding stock options
Net Loss per Share
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount		7,739	5,938	3,742
Unvested restricted stock units
Net Loss per Share
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount				4
Shares issuable upon conversion of Convertible Notes
Net Loss per Share
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount		3,765	492
New Accounting Pronouncement Early Adoption Effect | ASU No. 2016-09 | Additional Paid-in Capital
New Accounting Pronouncements
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification	$ 1,278
New Accounting Pronouncement Early Adoption Effect | ASU No. 2016-09 | Accumulated Deficit
New Accounting Pronouncements
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification	$ 1,278
Product Revenue (Member) | Minimum
New Accounting Pronouncements
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification		$ (1,000)	$ 1,500
Product Revenue (Member) | Maximum
New Accounting Pronouncements
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification		(2,000)	$ 2,500
License Revenue (Member) | Maximum
New Accounting Pronouncements
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification		$ (1,500)

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Inventories
Raw materials	$ 13,263	$ 364
Work in process	584	83
Finished goods	853	659
Total inventories	$ 14,700	$ 1,106

Intangible Assets (Details)

Intangible Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Intangible Assets
Intangible asset - OPKO milestone	$ 15,000	$ 15,000
Less: accumulated amortization	(2,123)	(268)
Total intangible asset, net	$ 12,877	14,732
Estimated useful life	8 years
Amortization expense	$ 1,900	$ 300
Estimated future amortization expense
2,017	1,855
2,018	1,855
2,019	1,855
2,020	1,855
2,021	1,855
Thereafter	$ 3,602

Property and Equipment (Details

Property and Equipment (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Property and Equipment
Gross	$ 9,254	$ 4,134
Less accumulated depreciation and amortization	(2,614)	(1,355)
Property, Plant and Equipment, Net, Total	6,640	2,779
Depreciation expense	1,300	800	$ 300
Furniture and Fixtures
Property and Equipment
Gross	2,481	1,547
Computer Equipment and Software
Property and Equipment
Gross	3,459	2,113
Leasehold Improvements
Property and Equipment
Gross	3,190	350
Manufacturing equipment
Property and Equipment
Gross	$ 124	$ 124

Accrued Expenses (Details)

Accrued Expenses (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Accrued Expenses
Research and development	$ 36,759	$ 23,048
Salaries, bonuses and other compensation	20,654	9,634
Sales and marketing	3,177	1,747
Professional services	2,743	1,021
Other accrued expenses	4,938	1,178
Total accrued expenses	$ 68,271	$ 36,628

Convertible Notes (Details)

Convertible Notes (Details)	Sep. 29, 2014USD ($)$ / shares	Sep. 30, 2014USD ($)	Dec. 31, 2016USD ($)	Sep. 30, 2016USD ($)	Jun. 30, 2016USD ($)	Mar. 31, 2016USD ($)	Dec. 31, 2015USD ($)	Sep. 30, 2015USD ($)	Jun. 30, 2015USD ($)	Mar. 31, 2015USD ($)	Dec. 31, 2016USD ($)item	Dec. 31, 2015USD ($)item	Dec. 31, 2014USD ($)$ / shares
Principal			$ 201,300,000								$ 201,300,000
Proceeds from issuance of convertible notes, net of issuance costs													$ 194,698,000
Debt issuance costs paid		$ 6,600,000
Convertible Debt, Fair Value Disclosures			131,800,000								131,800,000
Convertible debt outstanding
Principal			201,300,000								201,300,000
Interest expense
Contractual interest expense											6,037,000	$ 6,054,000
Amortization of debt discount											9,851,000	8,697,000
Amortization of debt issuance costs											599,000	663,000
Total interest expense			4,267,000	$ 4,119,000	$ 4,120,000	$ 3,981,000	$ 3,982,000	$ 3,853,000	$ 3,853,000	$ 3,726,000	16,487,000	15,414,000	3,776,000
Interest Paid											6,038,000	$ 6,071,000
Capped call option transactions
Cap price ( in dollars per share )													45.54
Convertible senior notes due October 2021
Principal		$ 201,300,000	201,250,000								201,250,000		201,300,000
Proceeds from issuance of convertible notes, net of issuance costs													194,700,000
Debt issuance costs paid													6,600,000
Capped call transactions payments													20,800,000
Interest rate (as a percent)	3.00%	3.00%
Conversion price per share of convertible notes into common stock | $ / shares	$ 35.13
Convertible notes conversion ratio per 1,000 principal	28.4627
Denominator of the principal amount used in conversion	$ 1,000
Current share price premium over convertible note conversion share price ( as a percent )	35.00%
Sinking fund provided											0
Percentage of convertible notes being redeemed in the event of insolvency	100.00%
Long-term Debt	$ 113,400,000
Convertible Debt, Fair Value Disclosures			771,400,000								771,400,000
Convertible debt outstanding
Principal		$ 201,300,000	201,250,000								201,250,000		$ 201,300,000
Less: debt discount and issuance costs, net			(69,475,000)								(69,475,000)
Net carrying amount			131,775,000								131,775,000
Equity component			87,843,000								87,843,000
Convertible note issuance terms
Equity component of debt issuance costs											2,900,000
Debt component of issuance costs recorded as an asset			$ 3,700,000								$ 3,700,000
Expected term for fair value											7 years
Debt effective interest rate ( as a percent )			12.90%								12.90%
Convertible senior notes due October 2021 | Capped call option
Capped call option transactions
Strike price ( in dollars per share ) | $ / shares													$ 35.13
Cap price ( in dollars per share )													$ 45.54
Convertible senior notes due October 2021 | Capped call option | Stock price above $45.54 per share
Capped call option transactions
Capped calls cost charged to stockholders' equity													$ 20,800,000
Convertible senior notes due October 2021 | Conversion of convertible notes into common stock after December 31,2014
Convertible threshold trading days | item												20
Convertible threshold consecutive trading days												30 days
Minimum threshold percentage of stock price trigger												130.00%
Convertible senior notes due October 2021 | Conversion of convertible notes when common share trading price is less than 98% of target ratio
Convertible threshold trading days | item											5
Convertible threshold consecutive trading days											10 days
Denominator of the principal amount for conversion into common stock											$ 1,000
Threshold percentage forcing conversion when less than share price times conversion ratio											98.00%
Convertible senior notes due October 2021 | Conversion of convertible notes on or after April 1 , 2021
Days before maturity when notes holder can convert the notes											2 days
Minimum principal that holders may convert at or immediately before maturity											$ 1,000

Stockholders' Equity (Details)

Stockholders' Equity (Details) $ / shares in Units, $ in Thousands	1 Months Ended						12 Months Ended
	Nov. 30, 2016USD ($)$ / sharesshares	Jul. 31, 2016USD ($)$ / shares	Apr. 30, 2016USD ($)$ / sharesshares	Mar. 31, 2016USD ($)$ / sharesshares	Mar. 31, 2015USD ($)$ / sharesshares	Feb. 28, 2014USD ($)$ / sharesshares	Dec. 31, 2016USD ($)item$ / sharesshares	Dec. 31, 2015USD ($)$ / sharesshares	Dec. 31, 2014USD ($)
Convertible Preferred Stock and Stockholders' Equity
Preferred Stock, Shares Authorized							10,000,000	10,000,000
Common Stock, Shares Authorized							100,000,000	100,000,000
Preferred Stock, Par or Stated Value Per Share | $ / shares							$ 0.0001	$ 0.0001
Common Stock, Par or Stated Value Per Share | $ / shares							$ 0.0001	$ 0.0001
Preferred Stock, Shares Issued							0	0
Preferred Stock, Shares Outstanding							0	0
Common Stock, Shares, Issued	1,750,000		1,130,198	4,404,658			53,621,679	40,279,783
Common Stock, Shares, Outstanding							53,621,679	40,279,783
Shares Issued, Price Per Share | $ / shares	$ 135	$ 81	$ 44.24	$ 35.19
Net proceeds from sale of shares | $	$ 224,200	$ 408,900	$ 50,000
Gross proceeds from the sale of common stock in an underwritten public offering | $	$ 236,300	$ 433,100		$ 155,000
Proceeds from issuance of Common Stock | $							$ 838,099	$ 179,753	$ 94,199
Common Stock
Convertible Preferred Stock and Stockholders' Equity
Stock Issued During Period, Shares, New Issues					3,755,000	3,200,000	5,347,500
Shares Issued, Price Per Share | $ / shares					$ 51	$ 31.50
Gross proceeds from the sale of common stock in an underwritten public offering | $					$ 191,500	$ 100,800
Net proceeds from the sale of common stock in an underwritten public offering | $					$ 179,800	$ 94,200
Number of votes per share | item							1

Stock-Based Compensation - Stoc

Stock-Based Compensation - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Stock-based compensation expense
Total stock-based compensation expense	$ 48,455	$ 25,914	$ 11,683
Research and development
Stock-based compensation expense
Total stock-based compensation expense	19,783	11,082	4,954
General and Administrative Expense.
Stock-based compensation expense
Total stock-based compensation expense	$ 28,672	$ 14,832	$ 6,729

Stock-Based Compensation - St46

Stock-Based Compensation - Stock Compensation Plans (Details) - USD ($) $ in Thousands	Apr. 27, 2012	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Jan. 01, 2017	Jan. 01, 2016	May 14, 2015	Dec. 31, 2012
Stock-Based Compensation
Vesting percentage		25.00%
Number of shares authorized for grant under the plan								1,981,130
Number of shares available for future grants that were added to the total number of shares reserved for issuance								6,857
Annual increase in common stock available for grant as a percentage of common stock outstanding		4.00%
Maximum Number of shares granted to non-employee director per year		50,000
Restricted Common Stock
Allocated Share-based Compensation Expense		$ 48,455	$ 25,914	$ 11,683
Non Employee Consultant
Restricted Common Stock
Allocated Share-based Compensation Expense		$ 1,000	300	300
Outstanding stock options
Stock-Based Compensation
Vesting period		4 years
Exercisable period from date of grant		10 years
Number of shares available for future grants that were added to the total number of shares reserved for issuance					2,144,867	1,611,191
Restricted Common Stock
Allocated Share-based Compensation Expense		$ 40,000	$ 24,500	$ 11,100
Weighted average period over which unrecognized compensation costs are expected to be recognized		2 years 7 months 6 days
Outstanding stock options | Vesting One Year from Awards Vesting Start Date
Stock-Based Compensation
Vesting percentage		25.00%
Vesting period		1 year
Outstanding stock options | Vesting over Subsequent 36 Months
Stock-Based Compensation
Vesting percentage		75.00%
Vesting period		36 months
Omnibus Incentive Plan 2012
Stock-Based Compensation
Number of shares authorized for grant under the plan	1,428,571
Number of additional shares authorized under the plan	6,857
Omnibus Incentive Plan 2012 | Outstanding stock options
Stock-Based Compensation
Number of shares remaining available for grant		694,923
Director Incentive Plan 2015 | Outstanding stock options
Stock-Based Compensation
Number of shares authorized for grant under the plan							500,000
Number of shares remaining available for grant		297,544

Stock-Based Compensation - St47

Stock-Based Compensation - Stock Options (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended			12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Weighted-average remaining contractual term (years)
Outstanding at the end of the period				7 years 7 months 6 days	8 years 1 month 6 days
Vested at the end of the period				6 years 6 months
Aggregate intrinsic value
Outstanding at the beginning of the period				$ 110,798
Outstanding at the end of the period				655,099	$ 110,798
Vested at the end of the period				362,968
Assumptions used to calculate fair value of employee stock option at the date of grant
Allocated Share-based Compensation Expense				48,455	25,914	$ 11,683
Total unrecognized compensation cost related to unvested stock options (in dollars)				107,900
Aggregate value of shares issued to certain non-employee board members in lieu of fees				345	266	274
Non Employee Consultant
Assumptions used to calculate fair value of employee stock option at the date of grant
Allocated Share-based Compensation Expense				$ 1,000	$ 300	$ 300
Non-employee director
Assumptions used to calculate fair value of employee stock option at the date of grant
Aggregate value of shares issued to certain non-employee board members in lieu of fees	$ 300	$ 300	$ 300
Outstanding stock options
Shares
Outstanding at the beginning of the period (in shares)				5,878,352
Granted (in shares)				2,000,366
Exercised (in shares)				(643,035)
Cancelled (in shares)				(257,062)
Outstanding at the end of the period (in shares)				6,978,621	5,878,352
Vested at the end of the period (in shares)				3,322,925
Weighted-average price per share
Outstanding at the beginning of the period (in dollars per share)				$ 35
Granted (in dollars per share)				58.51
Exercised (in dollars per share)				40.37
Cancelled (in dollars per share)				51.06
Outstanding at the end of the period (in dollars per share)				40.65	$ 35
Vested at the end of the period (in dollars per share)				25.25
Assumptions used to calculate fair value of employee stock option at the date of grant
Weighted-average grant date fair value of options granted (in dollars per share)				$ 32.13	$ 32.05	$ 20.33
Aggregate intrinsic value of options exercised				$ 37,400	$ 11,800	$ 3,400
Allocated Share-based Compensation Expense				$ 40,000	$ 24,500	$ 11,100
Weighted average period over which unrecognized compensation costs are expected to be recognized				2 years 7 months 6 days
Shares issued during the period	6,027	3,429	10,411
Outstanding stock options | Minimum
Assumptions used to calculate fair value of employee stock option at the date of grant
Volatility (as a percent)				57.00%	63.00%	69.00%
Risk-free interest rate (as a percent)				1.07%	1.35%	1.65%
Expected term				5 years 6 months	5 years 6 months	5 years 6 months
Outstanding stock options | Maximum
Assumptions used to calculate fair value of employee stock option at the date of grant
Volatility (as a percent)				59.00%	65.00%	76.00%
Risk-free interest rate (as a percent)				2.10%	1.95%	2.07%
Expected term				6 years 29 days	6 years 29 days	6 years 29 days

Stock-Based Compensation - Rest

Stock-Based Compensation - Restricted Stock Units (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Restricted Stock Units
Stock-based compensation expense	$ 48,455	$ 25,914	$ 11,683
Weighted-average grant date fair value per share
Total grant date fair value of vested restricted stock	$ 1,100	$ 500	$ 100
Restricted Stock Units
Restricted Stock Units
Unvested RSUs at the beginning of the period (in shares)		60,000
Granted (in shares)	741,398
Vested (in shares)	(18,000)
Forfeited (in shares)	(23,275)
Unvested RSUs at the end of the period (in shares)	760,123		60,000
Stock-based compensation expense	$ 400
Weighted-average grant date fair value per share
Unvested RSUs at the beginning of the period (in dollars per share)		$ 56
Granted (in dollars per share)	$ 58.47	56	$ 29.04
Vested (in dollars per share)	61.64
Forfeited (in dollars per share)	47.11
Unvested RSUs at the end of the period (in dollars per share)	$ 58.55		56
Unrecognized compensation costs	$ 37,300
Weighted average period over which unrecognized compensation costs are expected to be recognized	3 years 2 months 12 days
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value	$ 58.47	$ 56	$ 29.04
Service and performance conditions | Restricted Stock Units
Restricted Stock Units
Granted (in shares)	15,000
Vested (in shares)	(3,000)

Stock-Based Compensation - Empl

Stock-Based Compensation - Employee Stock Purchase Plan (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Jun. 18, 2012
ESPP
Stock-based compensation expense	$ 48,455,000	$ 25,914,000	$ 11,683,000
2012 ESPP
ESPP
Shares reserved for issuance under ESPP					275,000
Number of shares remaining available for grant	194,245
Offering period	6 months
Purchase price of the common stock as a percentage of the lower of the fair market value of a share of common stock on the first trading date of each offering period or on the last trading day of the offering period	85.00%
Maximum fair market value of common stock that may be purchased by each participant per year	$ 25,000
Shares issued under ESPP	42,478		20,601	9,845
Stock-based compensation expense	$ 900,000	$ 300,000	$ 100,000	$ 100,000

Income Taxes - Income_Loss Befo

Income Taxes - Income/Loss Before Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Components of income before taxes
United States									$ (297,319)	$ (212,707)	$ (141,119)
Foreign.									(88,678)	(38,701)	(29,893)
(Loss) income before provision for (benefit from) income taxes	$ 135,467	$ 101,153	$ 58,407	$ 90,970	$ 75,759	$ 66,586	$ 60,557	$ 48,506	$ (385,997)	$ (251,408)	$ (171,012)

Provision for Income Taxes (Det

Provision for Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2016
Current:
State		$ 3
Foreign		1,597
Current Income Tax Expense (Benefit), Total		1,600
Deferred:
State		(125)
Deferred Income Tax Expense (Benefit), Total		(125)
Income Tax Expense (Benefit), Total	$ 1,475	$ 1,475

Income Taxes - Deferred Tax Ass

Income Taxes - Deferred Tax Assets and Income Tax Reconciliation (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2016
Income Taxes
Gross unrecognized tax benefits	$ 7,744			$ 7,744
Increase in valuation allowance, deferred tax asset	$ (150,500)
Additional deferred tax asset before valuation allowance recorded as a result of retroactive extension of the research credit				22,900
Deferred tax assets :
Federal net operating loss carryforwards		$ 147,611		231,085
State net operating loss carryforwards		17,361		18,016
Depreciation and amortization		13,594		18,840
Stock-based compensation		11,845		21,393
Tax credit carryforwards		10,573		54,950
Other		3,120		7,374
Total deferred tax assets		204,104		351,658
Less valuation allowance		(183,421)		(333,879)
Net deferred tax assets		20,683		17,779
Debt discount on convertible notes		$ (20,683)		(17,654)
Deferred Tax Assets, Net				125
Reconciliation of income tax expense (benefit) at the statutory federal income tax rate to the effective income tax rate as reflected in the consolidated financial statements
Federal income tax (benefit)/ expense at statutory rate (as a percent)	(35.00%)	(34.00%)	(34.00%)
State income tax benefit (as a percent)	(0.40%)	(2.30%)	(4.40%)
Permanent items (as a percent)	(0.10%)	0.20%	0.70%
Foreign rate differential	7.10%	5.10%	5.90%
Federal research and development credit (as a percent)	(10.70%)	(1.60%)	(1.40%)
Change in valuation allowance (as a percent)	39.10%	32.60%	33.20%
Other	0.40%	(0.00%)	(0.00%)
Effective income tax rate (as a percent)	0.40%	(0.00%)	(0.00%)
Reconciliation of unrecognized tax benefit
Increases related to prior year tax positions	$ 4,304
Increases related to current year tax positions	3,440
Balance at end of period	7,744
Gross unrecognized tax benefits	7,744			7,744
Internal Revenue Service (IRS)
Income Taxes
Federal and state net operating losses related to excess tax deductions				660,200
State
Income Taxes
Federal and state net operating losses related to excess tax deductions				352,800
General business tax credit | Internal Revenue Service (IRS)
Deferred tax assets :
Federal net operating loss carryforwards				52,900
Research and Development tax credits
Income Taxes
Gross unrecognized tax benefits	4,300			4,300
Reconciliation of unrecognized tax benefit
Balance at end of period	4,300
Gross unrecognized tax benefits	4,300			4,300
Research and Development tax credits | State
Deferred tax assets :
State net operating loss carryforwards				3,200
Allocation Of Taxable Income
Income Taxes
Gross unrecognized tax benefits	3,400			3,400
Reconciliation of unrecognized tax benefit
Balance at end of period	3,400
Gross unrecognized tax benefits	$ 3,400			$ 3,400

Employee Benefit Plans (Details

Employee Benefit Plans (Details) - USD ($) $ in Millions	Jan. 01, 2012	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Employee Benefit Plans
Percentage of eligible compensation, matched 100% by employer		100.00%
Employer match of employee deferral contributions of first 3% of compensation (as a percent)	3.00%
Percentage of eligible compensation, matched 50% by employer		50.00%
Employer match of employee deferral contributions of next 2% of compensation (as a percent)		2.00%
Aggregate matching contribution to the 401(k) plan		$ 2.2	$ 1	$ 0.5
Defined Benefit Plan, Fair Value of Plan Assets		4.3
Defined Benefit Pension Plan, Liabilities		3
Pension Expense		$ 0.4

Commitments and Contingencies54

Commitments and Contingencies (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2016USD ($)ft²	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)
Commitments and Contingencies
Leased office space (in square feet) | ft²	7,100
Tenant improvements	$ 2,900
Future minimum rental commitments
Operating Lease Due - Current	5,200
Operating Lease Due in Two Years	5,629
Operating Lease Due in Three Years	5,629
Operating Leases, Future Minimum Payments, Due in Four Years	2,931
Operating Leases, Future Minimum Payments, Due in Five Years	157
Total minimum lease payments	19,546
Operating Leases, Rent Expense, Net	$ 3,400	$ 2,100	$ 1,500
Amendment of Operating Lease
Commitments and Contingencies
Leased office space (in square feet) | ft²	124,000

License and Collaboration Agree

License and Collaboration Agreements (Details) $ in Thousands	Dec. 31, 2016USD ($)	Nov. 30, 2015USD ($)	Mar. 31, 2014USD ($)	Oct. 31, 2012USD ($)item	Jun. 30, 2012USD ($)	Dec. 31, 2010USD ($)	Dec. 31, 2016USD ($)	Sep. 30, 2016USD ($)	Jun. 30, 2016USD ($)	Mar. 31, 2016USD ($)	Dec. 31, 2015USD ($)	Sep. 30, 2015USD ($)	Jun. 30, 2015USD ($)	Mar. 31, 2015USD ($)	Dec. 31, 2016USD ($)item	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)	Dec. 31, 2010USD ($)	Dec. 31, 2016USD ($)	Dec. 31, 2016USD ($)	Dec. 31, 2016USD ($)	May 31, 2012USD ($)
License Agreements
Fair value of shares issued															$ 93	$ 691
Acquired in-process research and development							$ 9,000	$ 1,940	$ 4,000	$ 4,000	$ 1,000		$ 1,000		18,940	2,000	$ 24,900
Milestone payments made															9,900
Up-front payment recorded as acquired in-process research and development expense															18,940	17,000	24,900
Research and development expense							71,514	60,783	50,138	52,709	42,852	$ 40,063	$ 38,930	$ 33,545	235,144	155,390	118,425
Licenses Revenue							1,756	$ 931	35,125	134	$ 230	$ 87			37,946	317
tsro_upfront_license_payment_received															1,000
Revenue Recognition, Multiple-deliverable Arrangements, Allocation to Specific Unit of Accounting, Effect of Changes, Assumptions																			one
Anaptys Bio Inc
License Agreements
Milestone payments made									$ 4,000	$ 4,000					1,000	1,000				$ 11,000
Research and development expense															3,300		6,500
OPKO Health Inc
License Agreements
Milestone payments made																					$ 20,000
Merck Sharp & Dohme B.V.
License Agreements
Milestone payments made							9,000								900					12,800
Research and development expense															3,900
Collaborative arrangements cost sharing receivable	$ 600														1,900
Jiangsu Hengrui Medicine Co.
License Agreements
Proceeds from License Fees Received																			$ 1,000
Licenses Revenue															2,000
tsro_upfront_license_payment_received															1,000
Janssen Biotech, Inc.
License Agreements
Proceeds from License Fees Received															35,000
Remaining Deliverables Relative Selling Price Method															45,100
Additional Janssen Clinical Milestone Receivable															43,000
Additional Janssen Regulatory and Sales Milestones															372,000
Licenses Revenue															36,800
Zai Lab (Shanghai) Co. LtdMember
License Agreements
Proceeds from License Fees Received							15,000
Collaboration and Exclusive License Agreement | Anaptys Bio Inc
License Agreements
Up-front fees paid																	$ 2,000
Acquired in-process research and development															19,000
Portion of upfront payments ascribed to future services due from counterparty															0
Milestone payments required, if certain research and development milestone events are achieved	18,000						18,000								18,000				18,000	18,000	18,000
Milestone payments made															$ 9,000
Number of development programs | item															4
Period for reimbursement of specified cost under agreement																	2 years
Termination period															90 days
Additional milestone payments required, if certain U.S. and non-U.S. regulatory submissions and approvals occur in multiple indications	90,000						90,000								$ 90,000				90,000	90,000	90,000
Up-front payment recorded as acquired in-process research and development expense			$ 17,000
License Agreement | OPKO Health Inc
License Agreements
Amount paid upon signing the agreement						$ 6,000
Fair value of shares issued						600
Royalties incurred on VARUBI sales															700
Minimum annual royalty per agreement															2,500
Additional royalty obligation accrued															1,800
Milestone payments made		$ 15,000
Up-front payment recorded as acquired in-process research and development expense																		$ 6,600
License Agreement | Merck Sharp & Dohme B.V.
License Agreements
Acquired in-process research and development					$ 7,000
Up-front fees payable					$ 7,000
License Agreement | AstraZeneca UK Limited
License Agreements
Up-front fees paid				$ 400
Milestone payments made				$ 400
Number of non-exclusive license agreements entered into by the entity | item				2
License Agreement | Jiangsu Hengrui Medicine Co.
License Agreements
Licenses Revenue															500	$ 300
License Agreement | Maximum | OPKO Health Inc
License Agreements
Amount required to be paid for development milestones if specified regulatory and initial commercial sales milestones are achieved						30,000												30,000
Additional milestone payments required if specified levels of annual net sales of rolapitant are achieved						$ 85,000												$ 85,000
License Agreement | Maximum | Merck Sharp & Dohme B.V.
License Agreements
Amount required to be paid for development and regulatory milestones for the first indication																						$ 57,000
Amount required to be paid for development and regulatory milestones for each successive indication																						$ 29,500
Amount required to be paid for one-time sales milestones based on the achievement of annual sales objectives	$ 87,500						$ 87,500								$ 87,500				$ 87,500	$ 87,500	$ 87,500

Segment Information (Details)

Segment Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Total property and equipment, net	$ 6,640	$ 2,779
United States
Total property and equipment, net	6,194	$ 2,779
Switzerland
Total property and equipment, net	$ 446
Janssen Biotech, Inc. | Revenue
Concentration Risk, Percentage	82.00%
Janssen Biotech, Inc. | Accounts receivable
Concentration Risk, Percentage	30.00%
Jiangsu Hengrui Medicine Co., Ltd | Revenue
Concentration Risk, Percentage		100.00%
Jiangsu Hengrui Medicine Co., Ltd | Accounts receivable
Concentration Risk, Percentage	12.00%	15.00%
Merck Sharp & Dohme B.V. | Accounts receivable
Concentration Risk, Percentage	11.00%	85.00%
Distributor "A" | Accounts receivable
Concentration Risk, Percentage	41.00%
Single Group Purchasing Organization [Member]
Concentration Risk, Percentage	63.00%

Consolidated Quarterly Financ57

Consolidated Quarterly Financial Data - Unaudited (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended			56 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2016
Sales Revenue, Goods, Net	$ 2,469	$ 2,799	$ 1,436	$ 173					$ 6,877	$ 0	$ 0
Licenses Revenue	1,756	931	35,125	134	$ 230	$ 87			37,946	317
Revenues	4,225	3,730	36,561	307	230	87			44,823	317
Cost of sales - product	518	424	238	76					1,256
Cost of sales - intangible asset amortization	464	464	463	464	268				1,855	268
Research and development	71,514	60,783	50,138	52,709	42,852	40,063	$ 38,930	$ 33,545	235,144	155,390	118,425
Selling, general and administrative	54,526	37,685	36,218	30,149	27,910	22,766	16,783	11,242	158,578	78,701	23,935
Acquired in-process research and development	9,000	1,940	4,000	4,000	1,000		1,000		18,940	2,000	24,900
Total expenses	136,022	101,296	91,057	87,398	72,030	62,829	56,713	44,787	415,773	236,359	167,260
Loss from operations	131,797	97,566	54,496	87,091	71,800	62,742	56,713	44,787	370,950	236,042	167,260
Interest expense	(4,267)	(4,119)	(4,120)	(3,981)	(3,982)	(3,853)	(3,853)	(3,726)	(16,487)	(15,414)	(3,776)
Interest income	597	532	209	102	23	9	9	7	1,440	48	24
(Loss) income before provision for -benefit from income taxes	135,467	101,153	58,407	90,970	75,759	66,586	60,557	48,506	(385,997)	(251,408)	(171,012)
Income Tax Expense (Benefit)	1,475								1,475
Net loss	$ (136,942)	$ (101,153)	$ (58,407)	$ (90,970)	$ (75,759)	$ (66,586)	$ (60,557)	$ (48,506)	$ (387,472)	$ (251,408)	$ (171,012)
Net loss per share applicable to common stockholders - basic and diluted (in dollars per share)	$ (2.60)	$ (1.98)	$ (1.28)	$ (2.22)	$ (1.89)	$ (1.66)	$ (1.51)	$ (1.30)	$ (8.13)	$ (6.38)	$ (4.79)
Weighted-average number of common shares used in net loss per share applicable to common stockholders - basic and diluted (in shares)	52,589	51,151	45,808	40,966	40,151	40,038	40,008	37,312	47,652	39,387	35,739
Milestone payments									$ 9,900
ASU No. 2016-09 | New Accounting Pronouncement Early Adoption Effect
Research and development				$ 100
Selling, general and administrative				100
Anaptys Bio Inc
Research and development									3,300		$ 6,500
Milestone payments			$ 4,000	$ 4,000					1,000	$ 1,000		$ 11,000
Merck Sharp & Dohme B.V.
Research and development									3,900
Milestone payments	$ 9,000								900			$ 12,800
Janssen Biotech, Inc.
Licenses Revenue									36,800
Proceeds from License Fees Received									$ 35,000