Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Mar. 09, 2017 | Jun. 30, 2016 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | ARATANA THERAPEUTICS, INC. | ||
Entity Central Index Key | 1,509,190 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Trading Symbol | petx | ||
Entity Current Reporting Status | Yes | ||
Entity Common Stock, Shares Outstanding | 37,362,854 | ||
Entity Public Float | $ 162,404,572 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 87,307 | $ 26,755 |
Short-term investments | 996 | 59,447 |
Accounts receivable, net | 87 | 60 |
Inventories | 11,130 | 1,306 |
Prepaid expenses and other current assets | 2,022 | 1,451 |
Total current assets | 101,542 | 89,019 |
Property and equipment, net | 1,948 | 2,555 |
Goodwill | 39,382 | 39,781 |
Intangible assets, net | 7,639 | 15,067 |
Restricted cash | 350 | 350 |
Other long-term assets | 545 | 294 |
Total assets | 151,406 | 147,066 |
Current liabilities: | ||
Accounts payable | 7,436 | 1,400 |
Accrued expenses | 5,827 | 4,247 |
Licensing and collaboration commitment | 7,000 | |
Current portion-loans payable | 14,413 | |
Other current liabilities | 12 | 37 |
Total current liabilities | 34,688 | 5,684 |
Loan payable, net | 25,775 | 39,710 |
Other long-term liabilities | 540 | 122 |
Total liabilities | 61,003 | 45,516 |
Commitments and contingencies (Notes 12 and 16) | ||
Stockholders' equity: | ||
Common stock, $0.001 par value; 100,000,000 shares authorized at December 31, 2016 and December 31, 2015, 36,607,922 and 34,563,816 issued and outstanding at December 31, 2016 and December 31, 2015, respectively | 37 | 35 |
Treasury stock | (1,088) | (1,088) |
Additional paid-in capital | 286,909 | 263,941 |
Accumulated deficit | (185,593) | (152,018) |
Accumulated other comprehensive loss | (9,862) | (9,320) |
Total stockholders' equity | 90,403 | 101,550 |
Total liabilities and stockholders' equity | $ 151,406 | $ 147,066 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2016 | Dec. 31, 2015 |
Consolidated Balance Sheets [Abstract] | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 36,607,922 | 34,563,816 |
Common stock, shares outstanding | 36,607,922 | 34,563,816 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues | |||
Licensing and collaboration revenue | $ 38,233 | $ 500 | |
Product sales | 318 | $ 678 | 267 |
Total revenues | 38,551 | 678 | 767 |
Costs and expenses | |||
Cost of product sales | 3,139 | 365 | 333 |
Royalty expense | 106 | 84 | 72 |
Research and development | 30,462 | 24,964 | 19,985 |
Selling, general and administrative | 27,342 | 19,819 | 17,938 |
In-process research and development | 2,157 | ||
Amortization of intangible assets | 379 | 1,544 | 1,891 |
Impairment of intangible assets | 7,942 | 43,398 | |
Total costs and expenses | 69,370 | 90,174 | 42,376 |
Loss from operations | (30,819) | (89,496) | (41,609) |
Other income (expense) | |||
Interest income | 385 | 189 | 123 |
Interest expense | (3,396) | (1,585) | (1,060) |
Other income, net | 255 | 5,140 | 2,287 |
Total other income (expense) | (2,756) | 3,744 | 1,350 |
Loss before income taxes | (33,575) | (85,752) | (40,259) |
Income tax benefit | 1,698 | 1,443 | |
Net loss | $ (33,575) | $ (84,054) | $ (38,816) |
Net loss per share, basic and diluted | $ (0.95) | $ (2.45) | $ (1.30) |
Weighted average shares outstanding, basic and diluted | 35,273,228 | 34,355,525 | 29,767,429 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Consolidated Statements Of Comprehensive Loss [Abstract] | |||
Net loss | $ (33,575) | $ (84,054) | $ (38,816) |
Other comprehensive loss: | |||
Foreign currency translation adjustment | (542) | (3,918) | (5,402) |
Unrealized gain on available-for-sale securities | 2,622 | 1,252 | |
Net gain reclassified into income on sale of available-for-sale securities | (3,874) | ||
Other comprehensive loss | (542) | (5,170) | (4,150) |
Comprehensive loss | $ (34,117) | $ (89,224) | $ (42,966) |
Consolidated Statements Of Chan
Consolidated Statements Of Changes In Stockholders' Equity - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Loss [Member] | Treasury Stock At Cost [Member] | Total |
Balance at Dec. 31, 2013 | $ 23 | $ 112,515 | $ (29,148) | $ 83,390 | ||
Balance, shares at Dec. 31, 2013 | 23,425,487 | |||||
Issuance of common stock, net of issuance costs | $ 11 | 135,067 | 135,078 | |||
Issuance of common stock, net of issuance costs, shares | 10,325,000 | |||||
Compensation expense related to stock options and restricted stock awards | 7,130 | 7,130 | ||||
Vesting of restricted stock awards, shares | 240,528 | |||||
Repurchase of common stock | $ (1,081) | (1,081) | ||||
Repurchase of common stock, shares | (77,367) | |||||
Vesting of stock awards early exercised | 56 | 56 | ||||
Vesting of stock awards early exercised, shares | 152,272 | |||||
Issuance of common stock related to option exercises | 225 | 225 | ||||
Issuance of common stock related to option exercises, shares | 81,941 | |||||
Other comprehensive loss | $ (4,150) | (4,150) | ||||
Net loss | (38,816) | (38,816) | ||||
Balance at Dec. 31, 2014 | $ 34 | 254,993 | (67,964) | (4,150) | (1,081) | 181,832 |
Balance, shares at Dec. 31, 2014 | 34,147,861 | |||||
Compensation expense related to stock options and restricted stock awards | 8,592 | 8,592 | ||||
Vesting of restricted stock awards, shares | 205,387 | |||||
Repurchase of common stock | (7) | (7) | ||||
Repurchase of common stock, shares | (859) | |||||
Vesting of stock awards early exercised | $ 1 | 44 | 45 | |||
Vesting of stock awards early exercised, shares | 121,014 | |||||
Issuance of common stock related to option exercises | 312 | 312 | ||||
Issuance of common stock related to option exercises, shares | 90,413 | |||||
Other comprehensive loss | (5,170) | (5,170) | ||||
Net loss | (84,054) | (84,054) | ||||
Balance at Dec. 31, 2015 | $ 35 | 263,941 | (152,018) | (9,320) | (1,088) | 101,550 |
Balance, shares at Dec. 31, 2015 | 34,563,816 | |||||
Issuance of common stock, net of issuance costs | $ 2 | 14,323 | 14,325 | |||
Issuance of common stock, net of issuance costs, shares | 1,629,408 | |||||
Compensation expense related to stock options and restricted stock awards | 8,476 | 8,476 | ||||
Vesting of restricted stock awards, shares | 301,559 | |||||
Vesting of stock awards early exercised | 31 | 31 | ||||
Vesting of stock awards early exercised, shares | 71,021 | |||||
Issuance of common stock related to option exercises | 138 | 138 | ||||
Issuance of common stock related to option exercises, shares | 42,118 | |||||
Other comprehensive loss | (542) | (542) | ||||
Net loss | (33,575) | (33,575) | ||||
Balance at Dec. 31, 2016 | $ 37 | $ 286,909 | $ (185,593) | $ (9,862) | $ (1,088) | $ 90,403 |
Balance, shares at Dec. 31, 2016 | 36,607,922 |
Consolidated Statements Of Cha7
Consolidated Statements Of Changes In Stockholders' Equity (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2014 | |
Consolidated Statements Of Changes In Stockholders' Equity [Abstract] | ||
Issuance of common stock, issuance cost | $ 262 | $ 10,627 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities | |||
Net loss | $ (33,575) | $ (84,054) | $ (38,816) |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Acquired in-process research and development | 2,157 | ||
Stock-based compensation expense | 8,476 | 8,592 | 7,130 |
Depreciation and amortization expense | 991 | 1,840 | 2,043 |
Impairment of intangible assets | 7,942 | 43,398 | |
Gain on sale of marketable securities | (3,874) | ||
Gain on deconsolidation of a variable interest entity | (276) | ||
Non-cash interest expense | 478 | 129 | 41 |
Creditor fees | (150) | ||
Write-down of inventories to market value | 5,186 | ||
Change in fair value of contingent consideration | (1,248) | (133) | |
Change in fair value of derivative instruments | (1,274) | (465) | |
Loss on disposition of property and equipment | 2 | 0 | 0 |
Deferred tax benefit | (1,698) | (1,443) | |
Changes in operating assets and liabilities: | |||
Accounts receivable, net | (27) | 281 | (102) |
Inventories | (15,010) | (879) | (372) |
Prepaid expenses and other current assets | (771) | (595) | (642) |
Other assets | (5) | (31) | (45) |
Accounts payable | 6,182 | (117) | (1,143) |
Accrued expenses and other liabilities | 2,084 | 1,185 | 482 |
Licensing and collaboration commitment | 7,000 | ||
Deferred income | (880) | ||
Net cash used in operating activities | (11,323) | (38,495) | (32,188) |
Cash flows from investing activities | |||
Milestone payments for intangible assets | (1,000) | ||
Purchases of property and equipment, net | (72) | (2,245) | (471) |
Cash paid for acquisitions, net of cash received | (12,075) | ||
Proceeds from sales of marketable securities | 7,456 | ||
Purchases of investments | (229,836) | (2,050,594) | (371,449) |
Proceeds from maturities of investments | 288,287 | 2,079,396 | 286,670 |
Cash contributed as investment in a noncontrolled entity | (94) | ||
Purchase of derivative instruments | (643) | ||
Purchase of in-process research and development | (2,157) | ||
Change in restricted cash | (350) | ||
Net cash provided by (used in) investing activities | 57,285 | 33,663 | (100,125) |
Cash flows from financing activities | |||
Proceeds from the issuance of debt, net of discount | 24,779 | ||
Repurchase of common stock | (7) | (1,081) | |
Proceeds from stock options exercises | 138 | 312 | 225 |
Net proceeds from public offering | 14,587 | 137,220 | |
Payments for common stock issuance costs | (93) | (189) | (2,153) |
Cash paid for promissory notes | (18,067) | ||
Cash paid for contingent consideration | (3,000) | (15,166) | |
Net cash provided by financing activities | 14,632 | 21,895 | 100,978 |
Effect of exchange rate on cash | (42) | (131) | 74 |
Net increase (decrease) in cash and cash equivalents | 60,552 | 16,932 | (31,261) |
Cash and cash equivalents, beginning of period | 26,755 | 9,823 | 41,084 |
Cash and cash equivalents, end of period | 87,307 | 26,755 | 9,823 |
Supplemental disclosure of cash flow information | |||
Cash paid for interest, net of amounts capitalized | $ 2,911 | $ 1,057 | 942 |
Supplemental disclosure of noncash investing and financing activities: | |||
Non-cash exercise of warrant | 750 | ||
Contingent consideration relating to Okapi Sciences NV acquisition | 15,166 | ||
Note payable related to Okapi Sciences NV acquisition | $ 15,134 |
The Company And Basis Of Presen
The Company And Basis Of Presentation | 12 Months Ended |
Dec. 31, 2016 | |
The Company And Basis Of Presentation [Abstract] | |
The Company And Basis Of Presentation | 1. The Company and Basis of Presentation The Company Aratana Therapeutics, Inc., including its subsidiaries (the “Company,” or “Aratana”) was incorporated on December 1, 2010 under the laws of the State of Delaware. The Company is a pet therapeutics company focused on licensing, developing and commercializing of innovative therapeutics for dogs and cats. The Company has one operating segment: pet therapeutics. Since its inception, the Company has devoted substantially all of its efforts to research and development, recruiting management and technical staff, building a commercial infrastructure, acquiring operating assets and raising capital. The Company is subject to risks common to companies in the biotechnology and pharmaceutical industries. There can be no assurance that the Company’s licensing efforts will identify viable therapeutic candidates, that the Company’s research and development will be successfully completed, that adequate protection for the Company’s technology will be obtained, that any therapeutics developed will obtain necessary government regulatory approval or that any approved therapeutics will be commercially viable. The Company operates in an environment of substantial competition from other animal health companies. In addition, the Company is dependent upon the services of its employees and consultants, as well as third-party contract research organizations and manufacturers and collaborators. Basis of Presentation The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and on a basis which assumes that the Company will continue as a going concern and which contemplates the realization of assets and satisfaction of liabilities and commitments in the normal course of business. The Company has incurred recurring losses and negative cash flows from operations and has an accumulated deficit of $185,593 as of December 31, 2016 . The Company expects to continue to generate operating losses for the foreseeable future. The Company believes that its cash, cash equivalents and short-term investments on hand will be sufficient to fund operations and debt obligations at least through March 31, 2018. As disclosed in Note 10 to the consolidated financial statements, the Company has a term loan and a revolving credit facility with an aggregate principal balance of $40,000 as of December 31, 2016 . T he loan agreement requires that the Company maintain certain minimum liquidity at all times, which as of December 31, 2016, was approximately $32,900 . If the minimum liquidity covenant is not met, the Company may be required to repay the loans prior to scheduled maturity dates. The Company expects an increase in investment related to its commercial activities, milestones related to approval and commencement of commercial sales, and the procuring of inventories needed to supply the marketplace. This will impact the minimum liquidity that needs to be maintained under the loan agreement. As a result, the Company will need additional capital to fund its operations and debt obligations beyond March 31, 2018, which the Company may obtain from corporate collaborations and licensing arrangements, or other sources, such as public or private equity and debt (re)financings. The future viability of the Company beyond March 31, 2018 , is dependent on its ability to raise additional capital to finance its operations, to fund on-going research and development costs, commercialization of its therapeutics and therapeutic candidates and satisfy debt covenants. If the Company is not able to raise additional capital on terms acceptable to it, or at all, as and when needed, it may be required to curtail its operations which could include delaying the commercial launch of its therapeutics, discontinuing therapeutic development programs, or granting rights to develop and market therapeutics or therapeutic candidates that it would otherwise prefer to develop and market itself. The Company’s failure to raise capital , as and when needed , would have a negative impact on its financial condition and its ability to pursue its business strategies as this capital is necessary for it to perform the research and development and commercial activities required to generate future revenue streams. |
Summary Of Significant Accounti
Summary Of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Summary Of Significant Accounting Policies [Abstract] | |
Summary Of Significant Accounting Policies | 2 . Summary of Significant Accounting Policies Consolidation The Company’s consolidated financial statements include its financial statements, and those of its wholly-owned subsidiaries and a consolidated variable interest entity through the deconsolidation date . Intercompany balances and transactions are eliminated in consolidation. To determine if the Company holds a controlling financial interest in an entity, the Company first evaluates if it is required to apply the variable interest entity (“VIE”) model to the entity. Where the Company holds current or potential rights that give it the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance combined with a variable interest that gives it the right to receive potentially significant benefits or the obligation to absorb potentially significant losses, the Company is the primary beneficiary of that VIE. When changes occur to the design of an entity, the Company reconsiders whether it is subject to the VIE model. The Company continuously evaluates whether it is the primary beneficiary of a consolidated VIE and upon determination that the Company no longer remains the primary beneficiary, the Company deconsolidates the entity and a gain or loss is recognized upon deconsolidation. I n December 2016, the Company concluded that it was no longer the primary beneficiary of a previously consolidated VIE and no longer consolidates the entity (Note 19) . Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates, judgments and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Estimates are periodically reviewed in light of changes in circumstances, facts and experience. Actual results could differ from those estimates. Cash and Cash Equivalents The Company classifies all highly liquid investments with stated maturities of three months or less from the date of purchase as cash equivalents. Cash equivalents consisted of certificates of deposit (“CDs”) at December 31, 2016 and 2 015 . Restricted Cash Pursuant to the terms of the Loan and Security Agreement, the Company has posted collateral to Square 1 Bank N.A., a division of Pacific Western Bank , to collateralize corporate credit card services. The Company classifies the collateral as restricted cash. Short-term Investments The Company classifies reverse repurchase agreements other than overnight reverse repurchase agreements as short-term investments and as available-for-sale. Short-term investments in both 2016 and 2015 included reverse repurchase agreements and /or CDs with original maturities greater than three months . Marketable Securities The Company classifies all highly liquid investments with stated maturities of greater than three months from the date of purchase as marketable securities. The Company determines the appropriate classification of investments in marketable securities at the time of purchase and re-evaluates such designation at each consolidated balance sheet date. The Company classifies and accounts for marketable securities as available-for-sale. The Company may or may not hold securities with stated maturities greater than 12 months until maturity. After consideration of the risk versus reward objectives, as well as the Company’s liquidity requirements, the Company may sell these securities prior to their stated maturities. These securities are viewed as being available to support current operations. As a result, the Company classifies securities with maturities beyond 12 months as long-term assets as long-term marketable securities in the consolidated balance sheet. The C ompany reports available-for-sale investments at fair value as of each consolidated balance sheet date and records any unrealized gains and losses as a component of stockholders’ equity . The cost of securities sold is determined on a specific identification basis, and realized gains and losses are included in other income (expense) in the consolidated statements of operations. If any adjustment to fair value reflects a decline in the value of the investment, the Company considers available evidence to evaluate the extent to which the decline is “other than temporary” and recognizes the impairment by releasing other comprehensive income to the consolidated statement of operations. There were no such adjustments necessary during the year s ended December 31, 2016 and 2015 . Accounts Receivable , net Accounts receivable are uncollateralized customer obligations due under normal trade terms generally requiring payment within 30 days of the invoice date. The Company provides an allowance for doubtful accounts equal to the estimated losses that will be incurred in collection of accounts receivable. This estimate is based on the current review of existing receivables and historical experience in the industry. The allowance and associated accounts receivable are reduced when the receivables are determined to be uncollectible. Inventories The Company states i nventories at the lower of cost or market and consist of raw materials, work-in-process and finished goods. Cost is determined by the average cost method for raw materials and standard cost for work-in-process and finished goods, which approximates actual cost. Market is considered the lower of prevailing replacement cost or net realizable value. Inventories acquired in b usiness combinations are recorded at fair value as of acquisition date. Pre-Launch Inventories The Company may scale-up and make commercial quantities of certain of its product candidates prior to the date it anticipates that such products will receive final United States Food and Drug Administration (“FDA”)/United States Department of Agriculture (“ USDA ”) approval. The scale-up and commercial production of pre-launch inventories involves the risk that such products may not be approved for marketing by the FDA/USDA on a timely basis, or ever. Inventory costs associated with product candidates that have not yet received regulatory approval are capitalized if the Company believes there is probable future commercial use and future economic benefit. If the probability of future commercial use and future economic benefit cannot be reasonably determined, then pre-launch inventory costs associated with such product candidates are expensed as research and development expense during the period the costs are incurred. Specifically, the Company has determined that for FDA-regulated product candidates there is a probable future commercial use and future economic benefit upon the receipt of the three major technical section complete letters from the FDA’s Center for Veterinary Medicine (“CVM”). For USDA product candidates, the Company has determined there is a probable future commercial use and future economic benefit upon the receipt of a conditional license from the USDA’s Center for Veterinary Biologics. The Company makes at least quarterly reassessments of the probability of regulatory approval and useful life of the pre-launch inventory, and determines whether such inventory continues to have a probable future economic benefit. Property and Equipment , net The Company records property and equipment at historical cost or, in the case of a business combination, at fair value on the date of the business combination, less accumulated depreciation and amortization. Depreciation and amortization expense is recognized using the straight-line method over the following estimated useful lives: Laboratory and office equipment 3 – 10 years Computer software and equipment 3 – 5 years Furniture 3 – 7 years Vehicles 3 – 5 years Leasehold improvements 3 – 10 years Leasehold improvements are amortized over the shorter of the life of the related asset or the term of the lease. Expenditures for repairs and maintenance of assets are charged to expense as incurred. Costs of major additions and betterments are capitalized and depreciated on a straight-line basis over their useful lives. When property and equipment are disposed of, the cost and respective accumulated depreciation and amortization are removed from the accounts . Any gain or loss on disposal is recorded in the consolidated statements of operations in other income (expense) . Goodwill Goodwill relates to amounts that arose in connection with the Company’s business combinations (Note 17) and represents the difference between the purchase price and the estimated fair value of the identifiable tangible and intangible net assets w hen accounted for using the acquisition method of accounting. Goodwill is not amortized, but is subject to periodic review for impairment. The Company tests goodwill at the reporting unit level for impairment on an annual basis and between annual tests, if events and circumstances indicate impairment may exist. Events that would indicate impairment and trigger an interim impairment assessment include, but are not limited to, current economic and market conditions, including a decline in market capitalization, a significant adverse change in legal factors, business climate or operational performance of the business and an adverse action or assessment by a regulator. Intangible Assets, net The Company’s intangible assets consist of intellectual property rights acquired for currently marketed products (amortized intangibles) and intellectual property rights acquired for in-process research and development (“IPR&D”) (unamortized intangibles). All of the Company’s IPR&D intangible assets were recorded in connection with the Company’s business combination s (Note 17). All of the Company’s amortized intangibles were recorded in connection with the Company’s business combinations (Note 17) or approval/post-approval milestone payments made under the Company’s license agreements. Th e Company’s intangible assets are recorded at fair value at the time of their acquisition. The Company amortizes intangible assets over their estimated useful lives once the acquired technology is developed into a commercially viable product. The estimated useful lives of the individual categories of intangible assets are based on the nature of the applicable intangible asset and the expected future cash flows to be derived from the intangible asset. Amortization of intangible assets with finite lives is recognized over the time the intangible assets are estimated to contribute to future cash flows. The Company amortizes finite-lived intangible assets using the straight-line method as revenues cannot be reasonably estimated. Indefinite-lived IPR&D intangible assets are assessed for impairment at least annually. In addition, all intangible assets are reviewed for impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable. Factors the Company considers in deciding when to perform an impairment review include significant underperformance of the business in relation to expectations, significant negative industry or economic trends, and significant changes or planned changes in the use of the assets. If an impairment review is performed to evaluate a long-lived asset for recoverability, the Company compares forecasts of undiscounted cash flows for definite-lived intangible assets and discounted cash flows for indefinite-lived IPR&D intangible assets expected to result from the use and eventual disposition of the long-lived asset to its carrying value. An impairment loss would be recognized when estimated undiscounted (definite-lived) or discounted (indefinite-lived) future cash flows expected to result from the use of an asset are less than its carrying amount. The impairment loss would be based on the excess of the carrying value of the impaired asset over its fair value, determined based on discounted cash flows. Derivative Financial Instruments T he Company accounts for its derivative instruments as either assets or liabilities and carries them at fair value. The Comp any’s sole deriva tive (Note 9) was a warrant t o purchase common stock and was adjusted to fair value through current income as it was not designated as a hedging instrument . In 2015, the Company exercised the warrant and subsequently sold the shares of common stock received upon exercise. Foreign Currency With the acquisition of Okapi Sciences (Note 17 ) in 2014, the Company is exposed to effects of foreign currency from translation. Transactions in foreign currencies are translated into the relevant functional currency at the rate of exchange at the date of the transaction. Transaction gains and losses are recognized in other income (expense) in the consolidated statements of operations. The results of operations for subsidiaries, whose functional currency is not the United States Dollar, are translated into the United States Dollar at the average rates of exchange during the period, with the subsidiaries’ balance sheets translated at the rates accumulated at the balance sheet date. The cumulative effect of these exchange rate adjustments is included in a separate component of other comprehensive income (loss) in the consolidated balance sheets. Gains and losses arising from intercompany foreign currency transactions are included in loss from operations unless the gains and losses arise from long-term investments in subsidiaries . Gains and losses from long-term investments in subsidiaries are included in a separate component of other comprehensive income (loss). Business Combinations The Company’s business acquisitions were made at a price above the fair value of the assets acquired and liabilities assumed, resulting in goodwill, based on the Company’s expectations of synergies and other benefits of combining the businesses. These synergies and benefits include elimination of redundant facilities, functions and staffing; use of the Company’s existing commercial infrastructure to expand sales of the products of the acquired businesses; and use of the commercial infrastructure of the acquired businesses to expand product sales in a cost-efficient manner. Significant judgment is required in estimating the fair value of intangible assets and in assigning their respective useful lives. The fair value estimates are based on available historical information and on future expectations and assumptions deemed reasonable by management, but which are inherently uncertain. The Company generally employs the income method to estimate the fair value of intangible assets, which is based on forecasts of the expected future cash flows attributable to the respective assets. Significant estimates and assumptions inherent in the valuations reflect a consideration of other marketplace participants, and include the amount and timing of future cash flows (including expected growth rates and profitability), the underlying product life cycles, economic barriers to entry, a brand’s relative market position and the discount rate applied to the cash flows. Unanticipated market or macroeconomic events and circumstances may occur, which could affect the accuracy or validity of the estimates and assumptions. Net assets acquired are recorded at their fair value and are subject to adjustment upon finalization of the fair value analysis. The Company is not aware of any information that indicates the final fair value analysis will differ materially from the preliminary estimates. Contingent consideration is recorded as a liability and measured at fair value using a discounted cash flow model utilizing significant unobservable inputs, including the probability of achieving each of the potential milestones and an estimated discount rate commensurate with the risks of the expected cash flows attributable to the milestones. Significant increases or decreases in any of the probabilities of success would result in a significantly higher or lower fair value, respectively, and commensurate changes to this liability. At each reporting date, we revalue the contingent consideration obligations to the reporting date fair values and record increases and decreases in the fair values as income or expense in the consolidated statements of operations until actual settlement occurs. Increases or decreases in the fair values of the contingent consideration obligations may result from changes in discount periods and rates, changes in the timing and amount of earn-out criteria and changes in probability assumptions with respect to the likelihood of achieving the various earn-out criteria. On January 6, 2014, the Company acquired Okapi Sciences, a Leuven, Belgium based company with a proprietary antiviral platform and three clinical/development stage product candidates. The aggregate purchase price was approximately $44,439 , which consisted of $14,139 in cash, a promissory note in the principal amount of $15,134 with a maturity date of December 31, 2014 , and a contingent consideration of up to $16,308 with an acquisition fair value of $15,166 . The promissory note bore interest at a rate of 7% per annum, payable quarterly in arrears, and was subject to mandatory prepayment in the event of a specified equity financing by the Company. On February 4, 2014, the promissory note and accrued interest was paid in cash in the amount of $15,158 . On March 17, 2014, the contingent consideration was settled in cash in the amount of $15,235 . Deferred Public Offering and At-the-Market Offering Costs T he Company capitalizes certain legal, accounting and other third-party fees that are directly associated with in-process equity financings as other assets until such financings are consummated. After consummation of the equity financing, these costs are recorded in stockholders’ equity (deficit) as a reduction of additional paid-in capital generated as a result of the offering. Should it no longer be considered probable that the equity financing will be consummated, the deferred offering costs would be expensed immediately as a charge to operating expenses in the consolidated statements of operations. On October 16, 2015, the Company entered into a Sales Agreement with Barclays Capital Inc. (“Barclays”) pursuant to which the Company may sell from time to time, at its option, shares of its common stock through Barclays, as sales agent (Note 13) . The Company recorded $20 and $189 of deferred equity offering costs as of December 31, 2016 and 2015 , respectively. Income Taxes The Company accounts for income taxes using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the consolidated financial statements or in the Company’s tax returns. Deferred taxes are determined based on the difference between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect in the years in which the differences are expected to reverse. Changes in deferred tax assets and liabilities are recorded in the provision for income taxes. The Company assesses the likelihood that its deferred tax assets will be recovered from future taxable income and, to the extent it believes, based upon the weight of available evidence, that it is more likely than not that all or a portion of deferred tax assets will not be realized, a valuation allowance is established through a charge to income tax expense. Potential for recovery of deferred tax assets is evaluated by estimating the future taxable profits expected and considering prudent and feasible tax planning strategies. The Company accounts for uncertainty in income taxes recognized in the consolidated financial statements by applying a two-step process to determine the amount of tax benefit to be recognized. First, the tax position must be evaluated to determine the likelihood that it will be sustained upon external examination by the taxing authorities. If the tax position is deemed more-likely-than-not to be sustained, the tax position is then assessed to determine the amount of benefit to recognize in the consolidated financial statements. The amount of the benefit that may be recognized is the largest amount that has a greater than 50% likelihood of being realized upon ultimate settlement. The provision for income taxes includes the effects of any resulting tax reserves, or unrecognized tax benefits, that are considered appropriate as well as the related net interest and penalties. Debt Issuance Costs , net Debt issuance costs, net represent legal and other direct costs related to the Company’s Loan and Security Agreemen t (Note 10). These costs are recorded as an offset to the carrying value of loans payable i n the consolidated balance sheet at the time they are incurred and are amortized to interest expense through the scheduled final principal payment date. During the year ended December 31, 2015, the Company capitalized additional $360 of debt issuance costs in conjunction with the refinancing of debt. As of December 31, 2016 and 2015, deferred debt issuance costs totaled $259 and $367 . Revenue Recognition The Company recognizes revenue when all of the following conditions are met: · persuasive evidence of an arrangement exists ; · delivery has occurred or services have been rendered; · the seller’s price to the buyer is fixed or determinable; and · collect i bility is reasonably assured. The Company’s principal revenue streams and their respective accounting treatments are discussed below: (i) Product sales - Revenue for the sale of products is recognized when delivery has occurred and substantially all the risks and rewards of ownership have been transferred to the customer. Revenue for the sale of products is recorded net of sales returns, allowances and discounts . (ii) Royalty revenue - Royalty revenue relating to the Company’s out-licensed technology is recognized when reasonably estimable. The revenues are recorded based on the licensee’s sales that occurred during the relevant period. Differences between actual and estimated royalty revenues are adjusted for in the period in which they become known, typically in the following quarter. If the Company is unable to reasonably estimate royalty revenue or does not have access to the information, then the Company records royalty revenue when the information needed for a reliable estimate becomes available . (iii) Licensing and collaboration revenues - Revenues derived from product out-licensing arrangements typically consist of an initial up-front payment at inception of the license and subsequent milestone payments contingent on the achievement of certain regulatory, development and commercial milestones. Product out-licensing arrangements with multiple elements are divided into separate units of accounting if certain criteria are met. The up-front payment received is allocated among the separate units of accounting based on their respective fair values, and the applicable revenue recognition criteria are applied to each of the separate units of accounting. The application of the multiple element guidance requires subjective determinations, and requires the Company to make judgments about the individual deliverables and whether such deliverables are separable from the other aspects of the contractual relationship. Deliverables are considered separate units of accounting provided that: (1) the delivered item(s) has value to the customer on a stand-alone basis and (2) 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 Company's control. In determining the units of accounting, the Company evaluates certain criteria, including whether the deliverables have stand-alone value, based on the consideration of the relevant facts and circumstances for each arrangement. In addition, the Company considers whether the buyer can use the other deliverable(s) for their intended purpose without the receipt of the remaining element(s), whether the value of the deliverable is dependent on the undelivered item(s), and whether there are other vendors that can provide the undelivered element(s). Arrangement consideration that is fixed or determinable is allocated among the separate units of accounting using the relative selling price method, and the applicable revenue recognition criteria. The Company determines the estimated selling price for deliverables within each agreement using vendor-specific objective evidence (“VSOE”) of selling price, if available, third-party evidence (“TPE”) of selling price if VSOE is not available, or management's best estimate of the selling price (“BESP”) if neither VSOE nor TPE is available. Determining the BESP for a unit of accounting requires significant judgment. In developing the BESP for a unit of accounting, the Company considers applicable market conditions and relevant entity-specific factors, including factors that were contemplated in negotiating the agreement with the customer and estimated costs. If there are deliverables in an arrangement that are not separable from other aspects of the contractual relationship, they are treated as a combined unit of accounting, with the allocated revenue for the combined unit recognized in a manner consistent with the revenue recognition applicable to the final deliverable in the combined unit. Amounts received prior to satisfying all relevant revenue recognition criteria are recorded as deferred revenue in the consolidated balance sheets and recognized as revenue when the related revenue recognition criteria are met. Amounts not expected to be recognized as revenue within the next twelve months of the consolidated balance sheet date are classified as long-term deferred revenue. The Company recognizes revenue contingent upon the achievement of a milestone in its entirety in the period in which the milestone is achieved only if the milestone meets all the criteria to be considered substantive. At the inception of each arrangement that includes milestone payments, the Company evaluates each contingent payment on an individual basis to determine whether they are considered substantive milestones, specifically reviewing factors such as the degree of certainty in achieving the milestone, the research and development risk and other risks that must be overcome to achieve the milestone, as well as the level of effort and investment required and whether the milestone consideration is reasonable relative to all deliverables and payment terms in the arrangement. This evaluation includes an assessment of whether (a) the consideration is commensurate with either (1) the entity’s performance to achieve the milestone, or (2) the enhancement of the value of the delivered item(s) as a result of a specific outcome resulting from the entity’s performance to achieve the milestone, (b) the consideration relates solely to past performance and (c) the consideration is reasonable relative to all of the deliverables and payment terms within the arrangement. Milestone payments which are non-refundable and deemed substantive, non-creditable and contingent on achieving certain development, regulatory, or commercial milestones are typically recognized as revenues either on achievement of such milestones or over the period the Company has continuing substantive performance obligations. The Company recognizes revenue associated with the non-substantive milestones upon achievement of the milestone if there are no undelivered elements and the Company has no remaining performance obligations. Revenues from commercial milestone payments are recorded as revenue upon achievement of the milestone, assuming all other revenue recognition criteria are met. In the event that an agreement is terminated and the Company then has no further performance obligations, the Company recognizes as revenue any amounts that had not previously been recorded as revenue but were classified as deferred revenue at the date of such termination. Cash considerations (including a sales incentive) given by the Company to a licensee/collaborator/customer is presumed to be a reduction of the selling prices of the Company’s products or services and is recognized as a reduction of revenue unless both of the following conditions are met: a. The Company receives, or will receive, an identifiable benefit (goods or services) in exchange for the consideration. In order to meet this condition, the identified benefit must be sufficiently separable from the recipient’s purchase of the Company’s products such that the Company could have entered into an exchange transaction with a party other than a purchaser of its products or services in order to receive that benefit. b. The Company can reasonably estimate the fair value of the benefit identified under the preceding condition. If the amount of consideration paid by the Company exceeds the estimated fair value of the benefit received, that excess amount shall be characterized as a reduction of revenue when recognized in the Company’s statements of operations. If both conditions are met, the cash consideration is recognized as a cost incurred. Research and Development Costs Research and development costs are expensed as incurred. Included in research and development costs are wages, stock-based compensation and employee benefits, and other operational costs related to the Company’s research and development activities, including facility-related expenses, external costs of outside contractors engaged to conduct both preclinical and clinical studies and allocation of corporate costs. Payments received from external parties to fund the Company’s research and development activities are used to reduce the Company’s research and development expenses. If IPR&D is acquired in an asset purchase, then the acquired IPR&D is expensed on its acquisition date. Future costs to develop these assets are recorded to research and development expense as they are incurred. Patent Costs All patent-related costs incurred in connection with filing and prosecuting patent applications are recorded as selling, general and administrative expenses as incurred, as recoverability of such expenditures is uncertain. Shipping Shipping costs are included in cost of product sales. Sales Tax The Company collects and remits taxes assessed by various governmental authorities. These taxes may include sales, use and value added taxes. These taxes are recorded on a net basis and are excluded from sales. Accounting for Stock - Based Compensation The Company’s stock-based compensation program grants awards that may consist of stock options and restricted stock awards. The fair values of stock option grants are determined as of the date of grant using the Black-Scholes option pricing method. This method incorporates the fair value of the Company’s common stock at the date of each grant and various assumptions such as the risk-free interest rate, expected volatility based on the volatility of the Company’s common stock price , expected dividend yield, and expected term of the options. The fair values of restricted stock awards are determined based on the fair value of the Company’s common stock. Prior to the Company’s initial public offering of its common stock in June 2013, the fair value of the common stock was determined by management and the Board of Directors, on the date of grant. Beginning in the first quarter of 2014, the Company began to base expected volatility on the historical volatility of its common stock, as adequate historical data regarding the volatility of its common stock price had become available. The fair values of the stock-based awards, including the effect of estimated forfeitures, are then expensed over the requisite service period, which is generally the award’s vesting period. The Company classifies stock-based compensation expense in the consolidated statements of operations in the same manner in which the respective award recipient’s payroll costs are classified. For stock-based awards granted to consultants and nonemployees, compensation expense is recognized over the period during which services are rendered by such consultants and nonemployees until completed. At the end of each financial reporting period prior to completion of the service, the value of these awards is re-measured using the then-current fair value of the Company’s common stock and updated assumption inputs in the Black-Scho |
Fair Value Of Financial Assets
Fair Value Of Financial Assets And Liabilities | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Of Financial Assets And Liabilities [Abstract] | |
Fair Value Of Financial Assets And Liabilities | 3 . Fair Value of F inancial Assets and Liabilities Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis T he following financial assets are measured at fair value on a recurring basis using quoted prices in active markets for identical assets (Level 1); significant other observable inputs (Level 2); and significant unobservable inputs (Level 3). Fair Value Measurements as of Carrying December 31, 2016 Using: Value Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Certificates of deposit $ 7,719 $ — $ 7,719 $ — $ 7,719 Short-term investments: Short-term marketable securities - certificates of deposit 996 — 996 — 996 $ 8,715 $ — $ 8,715 $ — $ 8,715 Fair Value Measurements as of Carrying December 31, 2015 Using: Value Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Certificates of deposit $ 6,972 $ — $ 6,972 $ — $ 6,972 Money market fund 35 35 — — 35 Short-term investments: Short-term marketable securities - certificates of deposit 747 — 747 — 747 Reverse repurchase agreements 58,700 — 58,700 — 58,700 $ 66,454 $ 35 $ 66,419 $ — $ 66,454 Certain estimates and judgments are required to develop the fair value amounts shown above. The fair value amounts shown above are not necessarily indicative of the amounts that the Company would realize upon disposition, nor do they indicate the Company’s intent or ability to dispose of the financial instrument. The following methods and assumptions were used to estimate the fair value of each material class of financial instrument: · Cash equivalents – the fair value of the cash equivalents has been determined to be amortized cost or has been based on the quoted prices in active markets or exchanges for identical assets. · Marketable securities (short-term) – the fair value of marketable securities has been determined to be amortized cost given the short duration of the securities. · Reverse repurchase agreements – the fair value of reverse repurchase agreements has been determined to be amortized cost given the short duration of the agreements. F inancial Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3) The change in the fair value of the Company’s contingent consideration payable as of December 31, 2016 , which is measured at fair value on a recurring basis using significant unobservable inputs (Level 3), was as follows: 2016 2015 As of January 1, $ — $ 4,248 Cash settlement of contingent consideration earned — (3,000) Derecognition of remaining contingent consideration recorded in the consolidated statement of operations (within selling, general and administrative) — (1,248) As of December 31, $ — $ — On January 2, 2015, the Company was granted a full product license for BLONTRESS ® (also known as AT-004). The approval resulted in $3,000 of the contingent consideration being earned and due to the former Vet Therapeutics, Inc. (“Vet Therapeutics”) shareholders per the terms of Vet Therapeutics merger agreement. Further, on February 24, 2015, in connection with the mutual termination of the Elanco Animal Health, Inc. (“Elanco”) Agreement for BLONTRESS (Note 12), the Company obtained consent from the shareholder representative of the former Vet Therapeutics shareholders that the $3,000 payment shall cause the Company to have no further obligation or liability under the merger agreement. The Company paid the $3,000 contingent consideration in March 2015. During the year ended December 31, 2015 , the Company recorded a credit of $1,248 to selling, general and administrative expense to reduce the fair value of the contingent consideration to zero as a result of the agreement with the Vet Therapeutics shareholders. Financial Assets and Liabilities that are not Measured at Fair Value on a Recurring Basis The carrying amounts and estimated fair value of the Company’s financial liabilities which are not measured at fair value on a recurring basis was as follows: December 31, 2016 Carrying Value Fair Value Liabilities: Loans payable (Level 2) $ 40,188 $ 40,709 December 31, 2015 Carrying Value Fair Value Liabilities: Loans payable (Level 2) $ 39,710 $ 40,569 Certain estimates and judgments were required to develop the fair value amounts. The fair value amount shown above is not necessarily indicative of the amounts that the Company would realize upon disposition, nor do es it indicate the Company’s intent or ability to dispose of the financial instrument. T he fair value of l oan s payable was estimated using discounted cash flow analysis discounted at current rates . Fair value information about the intangible assets that were fully impaired during the year ended December 31, 2016 ( Note 8 ) was as follows: Fair Value Measurements as of Carrying December 31, 2016 Using: Value Level 1 Level 2 Level 3 Impairment Intellectual property rights for currently marketed products $ — $ — $ — $ — $ 5,711 Intellectual property rights acquired for in-process research and development — — — — 2,231 $ — $ — $ — $ — $ 7,942 Th e fair value amount is presented as of the date of impairment, as these assets are not measured at fair value on a recurring basis. ( Note 8 ). The fair value reflects intangible assets written down to fair value during the year ended December 31, 2016 . Fair value was determined using the income approach, specifically, the multi-period excess earnings method, a form of a discounted cash flow method. The Company started with a forecast of all the expected net cash flows associated with the asset and then it applied an asset-specific discount rate to arrive at a net present value amount. Some of the more significant estimates and assumptions inherent in this approach include: the amount and timing of the projected net cash flows, which includes the expected impact of competitive legal and/or regulatory forces on the product and the impact of technological risk associated with IPR&D intangible assets; the discount rate, which seeks to reflect the various risks inherent in the projected cash flows; and the tax rate, which seeks to incorporate the geographic diversity of the projected cash flows. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2016 | |
Investments [Abstract] | |
Investments | 4 . Investments Marketable Securities Marketable securities consisted of the following: December 31, 2016 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value Short-term marketable securities: Certificates of deposit $ 996 $ — $ — $ 996 Total $ 996 $ — $ — $ 996 December 31, 2015 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value Short-term marketable securities: Certificates of deposit $ 747 $ — $ — $ 747 Total $ 747 $ — $ — $ 747 At December 31, 2016 and 2015 , short-term marketable securities consisted of investments that mature within one year. Short-term marketable securities are recorded as short-term investments in the consolidated balance sheets. Reverse Repurchase Agreements The Company, as part of its cash management strategy, may invest excess cash in reverse repurchase agreements. All reverse repurchase agreements are tri-party and have maturities of three months or less at the time of investment. The underlying collateral is United States government securities including United States treasuries, agency debt and agency mortgage securities. The underlying collateral posted by each counterparty is required to cover 102% of the principal amount and accrued interest after the application of a discount to fair value. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2016 | |
Inventories [Abstract] | |
Inventories | 5. Inventories Inventories are stated at the lower of cost or market and consisted of the following: December 31, 2016 December 31, 2015 Raw materials $ 1,441 $ 120 Work-in-process 8,153 441 Finished goods 1,536 745 Total $ 11,130 $ 1,306 Finished goods and work-in-process inventories at December 31, 2016, included $9,172 of pre-launch product costs of GALLIPRANT ® (grapiprant tablets) . GALLIPRANT was approved by the CVM for the control of pain and inflammation associated with osteoarthritis in dogs in the first quarter of 2016. During the year ended December 31, 2016, the Company recognized inventory valuation adjustment losses in the amount of $2,532 from application of lower of cost or market in cost of product sales. The losses related to BLONTRESS and TACTRESS ® inventories that were written off and pre-launch GALLIPRANT inventories written down to market value due to terms agreed upon in the Elanco collaboration agreement (Note 10). During the fourth quarter of 2016, the Company expensed $2,639 of previously capitalized process validation batches of ENTYCE as research and development expenses due to the Company concluding that the future commercial use and future economic benefit can no longer be reasonably determined for process validation batches that were intended to be used as commercial launch inventories. In addition, the Company expensed $1,983 of costs incurred related to manufacturing of ENTYCE under a firm purchase commitment as research and development expenses due to the Company concluding that the future commercial use and future economic benefit can no longer be reasonably determined . At December 31, 2016, $1,983 was accrued as a loss on a firm purchase commitment in the consolidated balance sheets. |
Property And Equipment, Net
Property And Equipment, Net | 12 Months Ended |
Dec. 31, 2016 | |
Property And Equipment, Net [Abstract] | |
Property And Equipment, Net | 6. Property and Equipment, Net Property and equipment , net consisted of the following : December 31, 2016 December 31, 2015 Laboratory and office equipment $ 666 $ 527 Computer equipment and software 2,014 2,039 Furniture 135 132 Vehicles — 11 Leasehold improvements — 91 Construction in process 53 185 Total property and equipment 2,868 2,985 Less: Accumulated depreciation and amortization (920) (430) Property and equipment, net $ 1,948 $ 2,555 Depreciation and amortization expense was $609 , $ 296 and $ 152 for the years ended December 31, 2016 , 2015 and 2014 , respectively. No significant gains/losses were recognized d uring the year s ended December 31, 2016 , 2015 and 2014 . |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill And Intangible Assets [Abstract] | |
Goodwill | 7 . Goodwill The Company completed its annual goodwill impairment testing during the third quarter of 2016 . The Company elected to bypass the qualitative assessment. The Company determined as of the testing date that it consisted of one operating segment which is comprised of one reporting unit. In performing step one of the assessment, the Company determined that its fair value, determined to be its market capitalization, was greater than its carrying value, determined to be stockholders’ equity. Based on this result, step two of the assessment was not required to be performed, and the Company determined there was no impairment of goodwill as of the annual testing date. Goodwill as of December 31, 2016 , was as follows: Gross Impairment Net Carrying Value Losses Carrying Value Goodwill $ 39,382 $ — $ 39,382 The change in the net book value of goodwill for the year s ended December 31, 2016 and 2015 , was as follows: 2016 2015 As of January 1, $ 39,781 $ 41,398 Effect of foreign currency exchange (399) (1,617) As of December 31, $ 39,382 $ 39,781 |
Intangible Assets, Net
Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill And Intangible Assets [Abstract] | |
Intangible Assets, Net | 8 . Intangible Assets, N et The change in the net book value of intangible assets for the years ended December 31, 2016 and 2015 , was as follows: 2016 2015 As of January 1, $ 15,067 $ 62,323 Additions 1,000 — Amortization expense (379) (1,544) Effect of foreign currency exchange (107) (2,314) Impairment (7,942) (43,398) As of December 31, $ 7,639 $ 15,067 The Company recognized amortization expense of $379 , $1,544 and $1,891 for the years ended December 31, 2016 , 2015 and 2014 , respectively . A mortization expense of intangible assets for each of the five succeeding years as of December 31, 2016 , was as follows : Year Ending December 31, 2017 $ 83 2018 83 2019 83 2020 83 2021 $ 83 Unamortized Intangible Assets The Company completed its annual indefinite-lived IPR&D intangible assets impairment testing during the fourth quarter of 2016. The Company elected to bypass the qualitative assessment. For purposes of impairment testing, the fair value of the indefinite-lived IPR&D intangible assets was determined by using the framework of ASC 820, Fair Value Measurement. When determining the fair value of the indefinite-lived IPR&D intangible assets, the Company revisited all assumptions used in measuring the indefinite-lived IPR&D intangible assets at the time of acquisition, and evaluated and considered new and updated data and information available. The Company noted the fair values for all indefinite-lived IPR&D intangible assets were greater than the carrying value. As such, no impairment was recognized as of the annual testing date . Unamortized intangible assets as of December 31, 2016 and 2015 , were as follows: Net Carrying Value As of December 31, 2016 2015 Intellectual property rights acquired for in-process research and development $ 6,674 $ 9,010 The net carrying value above includes asset impairment charges to date of $16,765 . Return of AT-006 Global Rights On May 11, 2016, the Company and Elanco agreed to terminate the Exclusive License, Development, and Commercialization Agreement with Elanco (the “Elanco AT-006 Agreement”) (Note 10) that granted Elanco global rights for development and commercialization of licensed animal health products for an anti-viral for the treatment of feline herpes virus-induced ophthalmic conditions. As a result of the termination of the Elanco AT-006 Agreement, the Company conducted an impairment assessment of the AT-006 intangible asset to assess the impact of the termination agreement. As part of the assessment, the Company considered development timing and expenses, manufacturing expenses, technology royalties and royalties due to Elanco, anticipated timing of commercial availability, as well as marketing, and selling expenses to commercialize the product. The Company concluded that the AT-006 intangible asset was not impaired due to the termination of the Elanco AT-006 Agreement. Impairment of Unamortized Intangible Assets AT-007 (Feline immunodeficiency virus) The Company has been considering out-licensing or internally advancing the AT-007 program for feline immunodeficiency virus since an impairment expense was recorded in the third quarter of 2015. Due to the return of the AT-006 global rights from Elanco in May 2016 (Note 10) a nd ensuing development program portfolio prioritization, including consideration of the Company’s focus on commercial launch activities to support its recently approved products, the Company decided to discontinue the development of AT-007 during the second quarter of 2016. This resulted in an impairment charge of $2,229 , which was recorded during the second quarter of 2016, reducing the carrying value of AT-007 to $0 . Unfavorable outcomes of the Company’s development activities or the Company’s estimates of the market opportunities for the therapeutic candidates could result in impairment charges in future periods. Amortized Intangible Assets Amortized intangible assets as of December 31, 2016 , were as follows: Gross Net Weighted Carrying Accumulated Carrying Average Value Amortization Value Useful Life Intellectual property rights for currently marketed products $ 39,652 $ 38,687 $ 965 12 Years Acc umulated amortization includes both amortization expense and asset impairment charges. Asset impairment charges to date are $25,390 and $9,185 for BLONTRESS and TACTRESS, respectively. Impairment of Amortized Intangible Assets Since the acquisition of Vet Therapeutics, Inc. (October 2013), the Company has been performing various scientific and clinical activities to gain further knowledge around the science and efficacy of BLONTRESS and TACTRESS. BLONTRESS In the third quarter of 2015, the Company noted that scientific studies suggested that BLONTRESS was not as specific to the target as previously expected. The Company’s market research and interactions with veterinary oncologists indicate d that high specificity, including binding and depletion, will likely be necessary to drive wide adoption of monoclonal antibody therapy given that canine B-cell is generally chemotherapy sensit ive. Furthermore, the Company was aware of ot her emerging therapies that would compete in the B-cell lymphoma market, and believed that products with break-through benefit will dominate the market . Given those scientific results and competitive assessment, the Company recorded an impairment expense. I n the fourth quarter of 2016, the Company received final data from the Mini B-CHOMP study, which evaluated an abbreviated chemotherapy (CHOP) protocol in dogs with B-cell lymphoma . The results confirmed that BLONTRESS did not seem to be adding significant progression-free survival in canine B-cell lymphoma. While BLONTRESS remains commercially available, the Company deemed the results of Mini B-CHOMP study and the updated commercial expectations as a result of the Mini B-CHOMP study results, as indicators of potential impairment of its finite-lived intangible asset BLONTRESS during the fourth quarter of 2016. The Company performed impairment testing for the intangible asset BLONTRESS as of December 31, 2016, and recorded an impairment expense of $5,162 during the fourth quarter of 2016, resulting in a net carrying value of $0 for BLONTRESS. TACTRESS In the third quarter of 2015, the Company’s interim analysis of the clinical results indicated that TACTRESS did not seem to be adding significant progression free survival in canine T-cell lymphoma; those results were confirmed in the final study results in July 2016. In addition, scientific studies suggested that TACTRESS was not as specific to the target as expected. Given those clinical and scientific results, the Company no longer believed that TACTRESS would capture the desired T-cell lymphoma market opportunity and recorded an impairment expense. While TACTRESS remains commercially available, the use by oncologists has been more limited than the Company anticipated, resulting in sales during the second quarter of 2016, being significantly lower than forecasted. The Company deemed the events and market projections described above to be indicators of potential impairment of its finite-lived intangible asset TACTRESS during the second quarter of 2016. The Company performed impairment testing for the intangible asset TACTRESS as of June 30, 2016, and recorded an impairment expense of $551 during the second quarter of 2016, resulting in a net carrying value of $0 for TACTRESS . Unfavorable outcomes of the Company’s development activities or the Company’s estimates of the market opportunities for the therapeutic candidates could result in impairment charges in future periods. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Financial Instruments [Abstract] | |
Derivative Financial Instruments | 9. Derivative Financial Instruments The Company records all derivatives in the consolidated balance sheets at fair value in other long-term assets. In 2015, the Company’s derivative financial instrument, the Advaxis warrant, was not designated as a hedging instrument and was adjusted to fair value through earnings in other income (expense). During the year ended December 31, 2015, the Company exercised the Advaxis warrant and subsequently sold the shares of common stock received upon exercise. The gain recognized in other income (expense) for the year ended: Gain Recognized in Other Income (expense) Year Ended December 31, 2016 2015 2014 Derivative assets: Warrant $ — $ 1,274 $ 465 As the Company exercised the warrant and subsequently sold the shares of common stock received upon exercise during the second quarter of 2015, no gain was recorded during the year ended December 31 , 2016. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2016 | |
Debt [Abstract] | |
Debt | 10 . Debt Loan and Security Agr eements Effective as of October 16, 2015, the Company and Vet Therapeuti cs, Inc., (the “ B orrowers”), entered into a Loan and Security Agreement (“Loan Agreement”), with Pacific Western Bank, or Pacific Western, as a collateral agent and Oxford Finance, LLC, (the “Lenders”), pursuant to which the Lenders agreed to make available to the Company term loan in an aggregate principal amount up to $35,000 and a revolving credit facility in an aggregate principal amount up to $5,000 subject to certain conditions to funding. The term loan and the revolving credit facility are secured by all of the B orrowers ’ p ersonal property other than intellectual property and certain other customary exclusions. Subject to customary exceptions, the Company is not permitted to encumber its intellectual property. The outstanding principal under the Loan Agreement was $35,000 under the term loan and $5,000 under the revolving credit facility at December 31, 2016. The Company is required to make interest-only payments on the term loan for 18 months, and beginning on May 1, 2017, is required to make payments of principal and accrued interest on the term loan in equal monthly installments over a term of 30 months. As the Company had five products fully USDA- or FDA-approved for commercialization as of December 31, 2016, the interest-only period can be extended by one year to May 1, 2018 , upon agreement to certain other financial covenants with the Lenders . The Company is required to make interest-only payments on the revolving credit facility until October 1, 2017 , when all principal and accrued interest are due. The term loan and revolving credit facility bear interest per annum at the greater of (i) 6.91% or (ii) 3.66% plus the prime rate, which is customarily defined. As of December 31, 2016, interest rate for the term loan and the revolving credit facility was 7.41% . During the years ended December 31, 2016 and 2015, the Company recognized $3,396 and $1,579 of interest expense, respectively. Upon execution of the Loan Agreement, the Company was obligated to pay a facility fee to the Lenders of $150 , and an agency fee to the collateral agent of $100 . In addition, the Company is or will be obligated to pay a final payment fee equal to 3.30% of such term loan being prepaid or repaid with respect to the term loan upon the earliest to occur: October 16, 2019, the acceleration of any term loan or the prepayment of a term loan. The Company will also be obligated to pay a termination fee equal to 3.30% of the highest outstanding amount of the revolving credit facility upon the earliest to occur of October 16, 2017, the acceleration of the revolving credit facility or the termination of the revolving credit facility. The Company will also be obligated to pay an unused-line fee equal to 0.25% per annum of the average unused portion of the revolving credit facility. The Loan Agreement contains customary representations and warranties and customary affirmative and negative covenants, including, among others, limits or restrictions on the B orro wers’ ability to incur liens, incur indebtedness, make certain restricted payments, make certain investments, merge, consolidate, make an acquisition, enter into certain licensing arrangements an d dispose of certain assets. In addition, the Loan Agreement contains customary events of default that entitle the Lenders to cause the B orrowers’ indebtedness under the Loan Agreement to become immediately due and payable. The events of default, some of which are subject to cure periods, include, among others, a non-payment default, a covenant default, the occurrence of a material adverse change, the occurrence of an insolvency, a material judgment default, defaults regarding other indebtedness and certain actions by governmental authorities. Upon the occurrence and for the duration of an event of default, an additional default interest rate equal to 4% per annum will apply to all obligations owed under the Loan Agreement. The Loan Agreement requires that the Company received unrestricted net cash proceeds of at least $45,000 from partnering transactions and/or the issuance of equity securities from October 16, 2015 to October 16, 2016. The Loan Agreement also requires that the Company had at least three products fully USDA- or FDA- approved for commercialization by December 31, 2016 . With the FDA approval of GALLIPRANT in March 2016 and the receipt of the upfront payment of $45,000 under the Elanco collaboration agreement (Note 10) entered into in April 2016, the Company has met both conditions. Additionally, the Loan Agreement requires that the Company maintain certain minimum liquidity at all times ( the greater of cash equal to fifty percent (50%) of outstanding credit extensions or remaining months’ liquidity, which is calculated on an average trailing three (3) month basis, equal to six (6) months or greater) , which as of December 31, 2016 , was approximately $32,900 . If the minimum liquidity covenant is not met, the Company may be required to repay the term loan and revolving credit facility prior to scheduled maturity dates. At December 31, 2016 , the Company was in compliance with all financial covenants. Impairment charges related to goodwill and intangible assets have no impact on the Company’s compliance with financial covenants contained in the Loan Agreement. On the issuance date of the term loan and revolving credit facility, the Company accounted for a portion of the transaction as a debt modification of the prior debt dated March 4, 2013 with Pacific Western Bank and a portion as a new financing for the term loan and the revolving credit facility from Oxford. In conjunction with the refinancing, the Company incurred $556 in lender and legal fees, of which $360 were recorded in the consolidated balance sheet as a reduction in note payable and $196 were expensed as interest expense. Debt issuance costs are amortized over the life of the term loan and the revolving credit facility using the straight - line method which materially approximates effective interest rate method. Final payment and termination fees related to the term loan and the revolving credit facility are being accreted to loan s payable over the life of the term loan and the revolving credit facility using the straight - line method which materially approximates effective interest rate method. Amortization of debt issuance costs was $108 and $129 for the years ended December 31, 2016 and 2015 , respectively. As of December 31, 2016, $9,333 and $5,080 related to the term loan and the revolving credit facility , respectively, was reclassified as Current portion – loans payable. The Company’s lo an s pay able balance as of December 31, 2016 , as follows: Principal amounts Term Loan, 7.41% , principal payments from May 1, 2017 through October 16, 2019 $ 35,000 Revolving Line, 7.41% , due October 16, 2017 5,000 Add: accretion of final payment and termination fees 447 Less: unamortized debt issuance costs (259) Total $ 40,188 Estimated future principal payments under the Loan Agreement are as follo ws: Year Ending December 31, 2017 $ 14,333 2018 14,000 2019 11,667 2020 — 2021 — Thereafter — Total $ 40,000 |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Dec. 31, 2016 | |
Accrued Expenses [Abstract] | |
Accrued Expenses | 11 . Accrued Expenses Accrued expenses consisted of the following : December 31, 2016 December 31, 2015 Accrued expenses: Payroll and related expenses $ 2,321 $ 1,922 Professional fees 219 388 Royalty expense 71 1 Interest expense 247 238 Research and development costs 364 1,111 Unbilled inventories 465 — Accrued loss on a firm purchase commitment 1,983 — Milestone 17 500 Other 140 87 Total $ 5,827 $ 4,247 |
Agreements
Agreements | 12 Months Ended |
Dec. 31, 2016 | |
Agreements [Abstract] | |
Agreements | 12 . Agreements RaQualia Pharma Inc. (“RaQualia”) On December 27, 2010, the Company entered into two Exclusive License Agreements with RaQualia (the “RaQualia Agreements”) that granted the Company global rights, subject to certain exceptions for injectables in Japan, Korea, China and Taiwan for development and commercialization of licensed animal health products for compounds RQ-00000005 ( ENTYCE ® , also known as AT-002) and RQ-00000007 (GALLIPRANT ® , also known as AT-001) . The Company will be required to pay RaQualia milestone payments associated with GALLIPRANT and ENT YCE of up to $7,000 and $6,000 , respec tively, upon the Company’s achievement of certain development, regulatory and commercial milestones, as well as mid-single digit royalties on the Company’s or the Company’s sublicensee’s product sales, if any. The Company achieved milestones totaling $5,500 during the year ended December 31, 2016, which were expensed within research and development expenses. As of December 31, 2016, the Company had paid $5,000 in milestone payments and no royalty payments since execution of the RaQualia Agreement, and no milestone payments or royalties were accrued. It is possible that multiple milestones related to the RaQualia Agreements are achieved within the next twelve months totaling $3,000 . Pacira Pharmaceuticals, Inc. (“Pacira”) On December 5, 2012, the Company entered into an Exclusive License, Development, and Commercialization Agreement with Pacira (the “Pacira Agreement”) that granted the Company global rights for development and commercialization of licensed animal health products for NOCITA ® (also known as AT-00 3). The Compan y is required to pay Pacira milestone payments of up to $40,000 upon the Company’s achievement of certain commercial milestones, as well as tiered royalties on the Company’s product sales. The commercial milestones owed to Pacira under the Pacira Agreement begin to be triggered once NOCITA annual net sales reach $100,000 with the final tier being owed to Pacira once NOCITA annual net sales reach $500,000 . The Company achieved milestones totaling $2,000 during the year ended December 31, 2016 . Of the $2,000 in achieved milestones, $1,000 was capitalized as intangible assets and the other $1,000 was expensed within research and development expenses. As of December 31, 2016, the Company had paid $2,500 in milestone payments and no royalty payments since execution of the Pacira Agreement, and no milestone payments were accrued. During the year ended December 31, 2016, 2015 and 2014, the Company recognized $29 , $0 and $0 , respectively, of royalty expense related to the Pacira Agreement. Elanco BLONTRESS On December 6, 2012, Vet Therapeutics entered into an Exclusive Commercial License Agreement with E lanco (formerly Novartis Animal Health, Inc.) (the “Elanco BLONTRESS Agreement”) under which Vet Therapeutics granted a commercial license to Elanco for BLONTRESS for the United States and Canada. On January 2, 2015, the Company was granted a full product license from the USDA for BLONTRESS. The approval resulted in a $3,000 milestone payment being earned and due to the Company per the terms of the Elanco BLONTRESS Agreement. During the first quarter of 2015, the Company recognized $3,000 of licensing revenue related to the milestone payment. On February 24, 2015, the Company and Elanco agreed to terminate the Elanco BLONTRESS Agreement. In consideration for the return of the commercial license granted to Elanco, the Company paid Elanco $2,500 in March 2015, and will be required to pay an additional $500 upon the first commercial sale by the Company. At that time the Company determined that it was probable that the $500 payment will be paid, and recorded the $500 as a current liability in the first quarter of 2015. The first commercial sale occurred in March 2016. The Company recorded the $3,000 owed to Elanco as a reduction in revenues received from Elanco as the payment was to re-acquire rights that the Company had previously licensed to Elanco. On February 25, 2016, the Company and Elanco agreed to amend the terms related to the $500 payment due upon the first commercial sale by the Company. Under the amended terms, upon the first commercial sale in March 2016, the Company is required to pay quarterly a royalty per vial sold until $500 in royalties are paid or the end of two years. After two years, the Company will be required to pay Elanco $500 plus 10% interest, compounded annually against any unpaid balance, less any royalties paid during the two years. If during the two years following the first commercial sale the Company withdraws BLONTRESS from the market and ceases all commercialization, the remaining royalty and related interest are no longer payabl e. As of December 31, 2016 , $466 of the remaining $483 accrued milestone was included in other long-term liabilities in the consolidated balance sheets. GALLIPRANT On April 22, 2016, the Company entered into a Collaboration, License, Development and Commercialization Agreement (the “Collaboration Agreement”) with Elanco pursuant to which the Company granted Elanco rights to develop, manufacture, market and commercialize the Company’s products based on licensed grapiprant rights and technology, including GALLIPRANT (collectively, “Grapiprant Products”). Pursuant to the Collaboration Agreement, Elanco will have exclusive rights globally outside the United States and co-promotion rights with the Company in the United States during the term of the Collaboration Agreement. Under the terms of the Collaboration Agreement, the Company received a non-refundable, non-creditable upfront payment of $45,000 . The Company is entitled to a $4,000 milestone payment upon European approval of a Grapiprant Product for the treatment of pain and inflammation, another $4,000 payment upon achievement of a development milestone related to the manufacturing of a Grapiprant Product, and payments up to $75,000 upon the achievement of certain sales milestones. The sales milestone payments are subject to a one -third reduction for each year the occurrence of the milestone is not achieved beyond December 31, 2021, with any non-occurrence beyond December 31, 2023, cancelling out the applicable milestone payment obligation entirely. The Collaboration Agreement also provides that Elanco will pay the Company royalty payments on a percentage of net sales in the mid-single to low-double digits. The Company is responsible for all development activities required to obtain the first registration or regulatory approval for a Grapiprant Product for use in dogs in each of the European Union (“the EU Product Registration”) and the United States, and Elanco is responsible for all other development activities. First registration for a Grapiprant Product in the United States. was achieved before the completion of the Collaboration Agreement. In addition, the Company and Elanco have agreed to pay 25% and 75% , respectively, of all third-party development fees and expenses through December 31, 2018, in connection with preclinical and clinical trials necessary for any additional registration or regulatory approval of Grapiprant Products, provided that the Company’s contribution to such development fees and expenses is capped at $7,000 (“R&D Cap”). Commencing on the effective date of the Collaboration Agreement, the Company is responsible for the manufacture and supply of all of Elanco’s reasonable requirements of Grapiprant Products under the supply terms agreed upon pursuant to the Collaboration Agreement. However, Elanco retains the ability to assume all or a portion of the manufacturing responsibility during the term of the Collaboration Agreement. The parties have agreed under the Collaboration Agreement to negotiate and enter into a supply agreement formalizing the terms of supply of active product ingredients and/or finished Grapiprant Products by the Company to Elanco. On April 22, 2016, in connection with the Collaboration Agreement, the Company entered into a Co-Promotion Agreement (the “Co-Promotion Agreement”) with Elanco to co-promote Grapiprant Products in the United States. Under the terms of the Co-Promotion Agreement, Elanco has agreed to pay the Company, as a fee for promotional services performed and expenses incurred by the Company under the Co-Promotion Agreement, (i) 25% of the gross margin on net sales of Grapiprant Product sold in the United States under the Collaboration Agreement prior to December 31, 2018 (unless extended by mutual agreement), and (ii) a mid-single digit percentage of net sales of Grapiprant Product in the United States after December 31, 2018 through 2028 (unless extended by mutual agreement). The Company concluded that the Collaboration Agreement and Co-Promotion Agreement represent a multiple-element arrangement, and evaluated if deliverables in the arrangement represent separate units of accounting. The Company identified the following deliverables under the agreement: (i) a royalty-bearing, sub-licensable, development, manufacturing and commercialization license; (ii) manufacturing and supply services; (iii) participation in a joint manufacturing subcommittee; and (iv) services associated with obtaining the EU Product Registration. The Company performed an assessment and concluded that the license had stand-alone value from the other undelivered elements in the arrangement. The Company’s best estimate of the selling price for the manufacturing subcommittee and the EU Product Registration services were immaterial and, therefore, no consideration was allocated to these deliverables. Under the manufacturing and supply services terms, Elanco will be obligated to pay for any future orders at a price per unit representative of market value, and, therefore, no upfront consideration was allocated to this deliverable. The Company allocated $38,000 of the $45,000 upfront payment to the license, and recognized $38,000 of licensing and collaboration revenue during the quarter ended June 30, 2016. The Company allocated $7,000 of upfront consideration to the R&D Cap, which was recorded as licensing and collaboration commitment liability in the consolidated balance sheet at December 31, 2016 . The Company classified the licensing and collaboration commitment liability as a current liability due to the Company having no control over when R&D Cap expenses will be incurred and the expected timing of R&D Cap expenses being unknown as of December 31, 2016 . The licensing and collaboration commitment liability will be reduced in future periods as the related expenses are incurred by Elanco and paid for by the Company. Any remaining balance not paid to Elanco will be recognized as licensing and collaboration revenue on December 31, 2018, when the Company’s obligation to fund 25% of Elanco’s development efforts expires. The Company evaluated if the sales and other milestones in the Collaboration Agreement are substantive. The Company determined that the milestones are non-substantive, and, therefore, these milestones will be allocated amongst the delivered, and any undelivered elements at the time the milestones are earned. If there are no undelivered elements, the milestone payments will be recognized as revenue in their entirety upon achievement of each milestone. For the year ended December 31, 2016 , no milestones were achieved, and accordingly, no revenues were recognized from the milestones. AT-006 On May 11, 2016, the Company and Elanco agreed to terminate the Elanco AT-006 Agreement that granted Elanco global rights for development and commercialization of licensed animal health products for an anti-viral for the treatment of feline herpes virus-induced ophthalmic conditions. In consideration for the return of the Elanco AT-006 Agreement global rights, the Company is required to pay Elanco a low single-digit royalty on any product sales, if any, up to an amount in the low-single digit millions. Other BLONTRESS and TACTRESS Agreements The Company has entered into agreements with counterparties to utilize technology in the production of BLONTRESS and TACTRESS. These agreements require the Company to pay low to mid-single digit royalties on net product sales of BLONTRESS and TACTRESS, and one of the agreements requires a minimum roya lty of $70 that is subject to a yearly inflation index adjustment. The Company may also be required to pay up to $405 in sales milestones, based on future sales of certain products. These agreements would also apply to any other products that would utilize the technology. During the years ended December 31, 2016 , 2015 and 2014 , the Company recognized $77 , $84 and $72 in royalty expense, respectively, related to these agreements. Advaxis Inc. (“Advaxis”) On March 19, 2014, the Company entered into an Exclusive License Agreement with Advaxis (the “Advaxis Agreement”) that granted the Company global rights for development and commercialization of licensed animal health products for Advaxis’ ADXS-cHER2 for the treatment of osteosarcoma in dogs (“AT-014”) and three additional cancer immunotherapy products for the treatment of three other types of cancer. Under the terms of the Advaxis Agreement, the Company paid $2,500 in exchange for the license, 306,122 shares of common stock, and a warrant to purchase 153,061 shares of common stock. The consideration was allocated to the common stock and warrant based on their fair values on the date of issuance of $1,200 and $643 , respectively. The remaining consideration of $657 was allocated to the licensed technology. On the date of acquisition, the licensed technology had not reached technological feasibility in animal health indications and had no alternative future use in the field of animal health. Accordingly, in-process research and development of $657 was expensed upon acquisition. The Company will be required to pay Advaxis milestone payments of up to an additional $6,000 in clinical and regulatory milestones for each of the four products, assuming approvals in both cats and dogs, in both the United States and the European Union. In addition, the Company agreed to pay up to $28,500 in commercial milestones, as well as tiered royalties ranging from mid-single digit to 10% on the Company’s product sales, if any. As of December 31, 2016 , the Company had not accrued or paid any milestone or royalty payments since execution of the Advaxis Agreement. The Company does not expect to achieve milestones related to the Advaxis Agreement within the next twelve months. Under the terms of the subscription agreement, the Company acquired 306,122 shares of common stock and a warrant to purchase another 153,061 shares of common stock for $1,843 . The warrant was exercisable through March 19, 2024 , at an exercise price of $4.90 per share of common stock and could have been settled through physical share issuance or net share settlement where the total number of issued shares is based on the amount the market price of common stock exceeds the exercise price of $4.90 on date of exercise. Neither the common stock nor warrant had registration rights. The Company allocated the consideration of $1,843 to Advaxis common stock ( $1,200 ) and the Advaxis warrant ( $643 ) based on their respective fair values and recorded the purchase in marketable securities and other long-term assets, respectively. In January 2015, Aratana sold 124,971 shares of Advaxis common stock for proceeds of $1,500 and recognized a gain of $1,010 in other income (expense). Further in April 2015, the Company sold the remaining 181,151 shares of Advaxis common stock for proceeds of $3,233 , recognizing a gain of $2,523 in other income (expense) during the second quarter of 2015. In May 2015, the Company, through net share settlement, exercised the Advaxis warrant for a total exercise price equivalent to $750 and received 116,411 net shares of Advaxis common stock. Subsequently, the Company sold this Advaxis common stock for proceeds of $2,724 , a gain of $341 , recorded in other income (expense) during the second quarter of 2015. VetStem BioPharma, Inc. (“VetStem”) On June 12, 2014, the Company entered into an Exclusive License Agreement with VetStem (the “VetStem Agreement”) that granted the Company the exclusive United States rights for commercialization and development of VetStem’s allogeneic stem cells being developed for the treatment of pain and inflammation of canine osteoarthritis (“AT-016”). VetStem is responsible for the development and obtaining regulatory approval of AT-016 and the Company is responsible for the commercialization of licensed products. Under the terms of the VetStem Agreement, the Company paid an initial license fee of $500 . On the date of acquisition, the licensed technology had not reached technological feasibility in animal health indications and had no alternative future use in the field of animal health. Accordingly, in-process research and development of $500 was expensed upon acquisition. The Company will be required to pay VetStem milestone payments of up to $3,750 upon VetStem’s achievement of certain development and regulatory milestones, as well as tiered royalties in the low double digit percentages on the Company’s prod uct sales, if any. As of December 31, 2016, the Company has reimbursed VetStem for all contractually obligated development expenses and has no further development funding obligations for any future development expenses except those approved, if any , by the joint steering committee. The Company achieved milestones totaling $450 and $300 during the years ended December 31, 2016 and 2015, respectively, which were expensed within research and development expenses. As of December 31, 2016, the Company had paid $750 in milestone payments and no royalty payments since execution of the VetStem Agreement and no milestone payments or royalties were accrued. It is possible that multiple milestones related to the VetStem Agreement are achieved within the next twelve months totaling $550 . Atopix Therapeutics Ltd. On October 10, 2014, the Company entered into an Exclusive License Agreement with Atopix (the “Atopix Agreement”) that granted the Company an exclusive global license for development and commercialization of animal health products containing the active pharmaceutical ingredient included in Atopix’s CRTH2 antagonist product for the treatment of atopic dermatitis (“AT-018”). Under the terms of the Atopix Agreement, the Company paid an initial license fee of $1,000 . On the date of acquisition, the licensed technology had not reached technological feasibility in animal health indications and had no alternative future use in the field of animal health. Accordingly, in-process research and development of $1,000 was expensed upon acquisition. The Company will be required to pay Atopix milestone payments of up to an additional $4,000 in clinical and regulatory milestones, assuming approvals in both cats and dogs, in both the United States and the European Union, as well as tiered royalties in the mid-single digits on the Company’s product sales, if any. The Company achieved milestones totaling $0 and $500 during the years ended December 31, 2016 and 2015, which were expensed within research and development expenses, respectively. As of December 31, 2016, the Company had paid $500 in milestone payments and no royalty payments since execution of the Atopix Agreement and no milestone payments or royalties were accrued. The Company does not expect to achieve milestones related to the Atopix Agreement within the next twelve months. Government and Other Incentive Programs The Company has received payments from various government and other incentive programs. Generally, under these programs the Company could be obligated to repay any payments received if certain criteria are not met or certain actions are taken by the Company. The Company could be required to repay up to $652 under these incentive programs as of December 31, 2016. The Company has determined these contingencies to be within its control and will only account for repayment(s) if it becomes probable that the Company will be obligated to repay as result of its actions. |
Common Stock
Common Stock | 12 Months Ended |
Dec. 31, 2016 | |
Common Stock [Abstract] | |
Common Stock | 1 3 . Common Stock As of December 31, 2016 , there were 36,607,922 shares of the Company’s common stock outstanding, net of 461,901 shares of unvested restricted common stock. As of December 31, 2015 , there were 34,563,816 shares of the Company’s common stock outstanding, net of 441,800 shares of unvested restricted common stock. Authorized Common Stock In February 2013, the Board of Directors of the Company approved an amendment of the Company’s Certificate of Incorporation and increased the number of authorized shares of common stock to 25,041,667 . On July 2, 2013, the Company increased the number of authorized shares of its common stock from 25,041,667 to 100,000,000 , par value $0.001 per share. Voting Rights Each share of common stock entitles the holder to one vote on all matters submitted to a vote of the Company’s stockholders. Common stockholders are entitled to receive dividends, as may be declared by the Board of Directors , if any. As of December 31, 2016 and 2015 , the Board of Directors had not declared any dividends in any period. Stock-Based Awards During the year ended December 31, 2013, t he Company issued common stock pursuant to the 2010 Equity Incentive Plan (Note 14) and the 2013 Incentive Award Plan (Note 14) . During the years ended December 31, 2016 and 2015 , the Company did not reacquire any unvested shares of common stock from its terminated employees that had been issued upon the exercise of a stock option prior to its vesting. During the years end ed December 31, 2016 and 2015 , the Company issued common stock pursuant to the 2013 Incentive Award Plan ( Note 14 ). Public Offerings On February 3, 2014, the Company completed a public offering of its common stock in which the Company issued and sold 5,150,000 shares of common stock at a public offering price of $19.00 per share. The Company received net proceeds of approximately $90,507 after deducting underwriting discounts and commissions of approximately $5,871 and other offering expenses of approximately $1,472 . On September 22, 2014, the Company completed a public offering of its common stock in which the Company issued and sold 5,175,000 shares of common stock at a public offering price of $9.25 per share. The Company received net proceeds of approximately $44,827 after deducting underwriting discounts and commissions of approximately $2,872 and other offering expenses of approximately $412 . At-the-Market Offering On October 16, 2015, the Company entered into a Sales Agreement with Barclays pursuant to which the Company may sell from time to time, at its option, up to an aggregate of $52,000 of shares of its common stock (the “Shares”) through Barclays, as sales agent. Sales of the Shares were, and if any future sales , will be made under the Company’s previously filed and currently effective Registration Statement on Form S-3 (Reg. No. 333-197414), by means of ordinary brokers’ transactions on the NASDAQ Global Market or otherwise. Additionally, under the terms of the Sales Agreement, the Shares may be sold at market prices, at negotiated prices or at prices related to the prevailing market price. The Company will pay Barclays a commission of 2.75% of the gross proceeds from the sale of the Shares. During the year ended December 31, 2016, the Company sold 1,629,408 Shares for aggregate net proceeds of $14,587 . As of the date of this filing, approximately $37,000 of Shares remained available for sale under the Sales Agreement. The Company has not agreed to sell any additional Shares since September 30, 2016. |
Stock-Based Awards
Stock-Based Awards | 12 Months Ended |
Dec. 31, 2016 | |
Stock-Based Awards [Abstract] | |
Stock-Based Awards | 1 4 . Stock-Based Awards 2010 Equity Incentive Plan In 2010, the Company’s Board of Directors adopted the 2010 Equity Incentive Plan (the “2010 Plan”). The 2010 Plan provide d for the Company to sell or issue common stock or restricted common stock and to grant incentive stock options or nonqualified stock options for the purchase of common stock with a maximum term of ten years to employees, members of the Board of Directors and consultants of the Company. With the adoption and approval of the 2013 Incentive Award Plan (the “2013 Plan”) , no further awards will be granted from the 2010 plan. Stock Options A s of December 31, 2016 , 438 shares of restricted com mon stock issued as a result of early exercise d options were unvested and subject to repurchase. Early exercise is not considered an exercise for accounting purposes and, therefore, any payment for unvested shares is recognized as a liability at the original exercise price. As of December 31, 2016 and 2015 , the liability related to the early exercise of awards was $0 a nd $30 , respectively, and was recorde d in other current liabilities and other long-term liabilities. No early exercised stock option shares were repurchased by the Company during the years e nded December 31, 2016 and 2015 . A ctivity related to stock option s for the year ended December 31, 2016 , was as follows : Weighted Shares Weighted Average Issuable Average Remaining Aggregate Under Exercise Contractual Intrinsic Options Price Term Value (In Years) Outstanding as of December 31, 2015 86,490 $ 2.95 7.09 $ 228 Granted — — Exercised (20,559) 0.44 Forfeited — — Expired — — Outstanding as of December 31, 2016 65,931 $ 3.73 6.09 $ 228 Options vested and expected to vest as of December 31, 2016 65,864 $ 3.72 6.09 $ 228 Options exercisable as of December 31, 2016 65,838 $ 3.72 6.09 $ 224 No stock options have been granted under the 2010 Plan since 2013 . Fo r the years ended December 31, 2016 , 2015 , and 2014 , the total intrinsic value of options exercised was $180 , $786 and $871 , respectively. For the years ended December 31, 2016 , 2015 and 2014 , the total fair value of awards vested during the period was $209 , $140 and $765 , respectively. The Company received cash proceeds of $9 , $25 and $19 from the exercise of stock options for the years ended December 31, 2016 , 2015 and 2014 , respectively, none of whic h were from the early exercise of stock options. During 2014, there were three awards subject to modification accounting under ASC 718-20-35-3 through 35-4. Per terms of separation with a former employee, all unvested shares of restricted stock held by the employee became fully vested upon the employee’s employment termination. In addition, six months of accelerated vesting was granted for the former employee’s two stock option awards. As the employee would have forfeited the unvested awards upon termination according to the awards’ original terms, the awards would not be expected to vest under the original vesting conditions. The accelerated/full vesting of the unvested awards resulted in a Type III modification. The incremental fair value was equal to the fair value of the awards on the modification date. This amount was recognized immediately as the awards did not require further service. The incremental expense for the stock option awards and restricted stock award was $ 327 and $ 649 , respectively. Restricted Common Stock The Company’s 2010 Plan provide d for the award of restricted common stock. A ctivity related to restricted stock for the year ended December 31, 2016 , was as follows : Weighted Average Grant Shares Date Fair Value Unvested restricted common stock as of December 31, 2015 37,078 $ 0.36 Issued — — Vested (37,078) 0.36 Forfeited — — Unvested restricted common stock as of December 31, 2016 — $ — No restricted stock has been granted under the 2010 Plan since 2013. Fo r the years ended December 31, 2016 , 2015 and 2014 , the total fair value of restricted shares vested was $212 , $731 and $2,615 , respectively. As of December 31, 2016 , 2015 and 2014 , 0 , 37,078 and 91,334 shares of common stock related to restricted stock awards were unvested and subject to repurchase, respectively. 2013 Incentive Award Plan In 2013, the Company’s Board of Directors adopted and stockholders approve d the 2013 Plan which became effective upon the day prior to the effective date of the Company’s initial public offering. The 2013 Plan currently allows for the issuance of up to 4,425,667 shares of common stock, plus any additional shares represented by the 2010 Plan that are forfeited or lapse unexercised. The number of shares of common stock that may be issued under the plan is also subject to an annual increase on January 1 st of each calendar year beginning in 2014 and ending in 2023, equal to the lesser of (i) 1,203,369 shares, (ii) 4% of the shares of common stock outstanding on the final day of the immediately preceding calendar year and (iii) and amount determined by the Board of Directors. As of December 31, 2016 , there were 847,103 shares available for future grant under the 2013 Plan. On January 1, 2017 , the annual increase was determined to be 1,203,369 . The 2013 Plan is administered by the Compensation Committee of the Board of Directors , which selects the individuals eligible to receive awards, determines or modifies the terms and condition of the awards granted, accelerates the vesting schedule of any award and generally administers and interprets the 2013 Plan. The 2013 Plan permits the granting of incentive and nonqualified stock options, with terms of up to ten years and the granting of restricted stock, restricted stock units, performance stock awards, dividend equivalent rights, stock payments (i.e. unrestricted stock), cash bonuses and stock appreciation rights to employees, consultants, and non-employee directors. Stock Options D uring the year ended December 31, 2016 , the Company granted under the 2013 Plan stock options for the purchase of 849,933 shares of common stock to certain employees and non-employee directors. The vesting conditions for most of these awards are time-based, and the awards typically vest 25% after one year and monthly thereafter for the next 36 months. Awards typically expire after 10 years. Activity related to stock options for the year ended December 31, 2016 , was as follows: Weighed Shares Weighted Average Issuable Average Remaining Aggregate Under Exercise Contractual Intrinsic Options Price Term Value (In Years) Outstanding as of December 31, 2015 1,728,199 $ 16.57 8.31 $ — Granted 849,933 4.47 Exercised (21,559) 6.00 Forfeited (190,544) 11.84 Expired (114,511) 18.09 Outstanding as of December 31, 2016 2,251,518 $ 12.43 7.78 $ 2,261 Options vested and expected to vest as of December 31, 2016 2,147,006 $ 12.60 7.78 $ 2,142 Options exercisable as of December 31, 2016 1,022,698 $ 16.43 6.73 $ 176 For the years ended December 31, 2016 , 2015 and 2014 , the weighted average grant date fair value of stock options granted was $2.99 , $10.09 and $ 12.84 , respectively . For the years ended December 31, 2016 , 2015 and 2014 , the total intrinsic value of options exercised was $38 , $267 and $214 , respectively. For the years ended December 31, 2016 , 2015 and 2014 , the total fair value of awards vested during the period was $5,380 , $ 5,660 and $ 1,888 , respectively. The Company received cash proceeds of $129 , $287 and $206 from the exercise of stock options for the years ended December 31, 2016 , 2015 and 2014 , res pectively . Restricted Common Stock The Company’s 2013 Plan provides for the award of restricted common stock. The Company has granted restricted common stock typically with time-based vesting conditions, having terms of between several months and four years. The awards granted in 2015 to executives and non-executives typically vest in three annual installments of 33.3% each year for three years. In 2016, the vesting conditions for executive awards changed so that the awards vest in 12 quarterly installments of 8.33% per quarter for three years, similar to the vesting conditions for executive awards in 2014 . Awards granted to consultants typically vest in accordance with the expected term length of the consulting arrangement. Unvested shares of restricted common stock may not be sold or transferred by the holder. These restrictions lapse according to the time-based vesting. A ctivity related to restricted stock for the year ended December 31, 2016 , was as follows : Weighted Average Grant Shares Date Fair Value Unvested restricted common stock as of December 31, 2015 333,263 $ 17.77 Issued 448,317 3.95 Vested (264,481) 13.04 Forfeited (55,636) 7.38 Unvested restricted common stock as of December 31, 2016 461,463 $ 8.30 For the years ended December 31, 2016 , 2015 and 2014 , the weighted average grant date fair value of restricted common stock granted was $3.95 , $ 17.14 and $16.73 , respectivel y. For the years ended December 31, 2016 , 2015 and 2014 , the total fair value of restricted common stock vested was $1,559 , $1,893 and $94 , respectively. The Company received no proceeds for any of the restricted common stock granted during the years ended December 31, 2016 , 2015 and 2014 . Stock-Based Compensation The fair value of each stock option award is estimated using the Black-Scholes option-pricing model. Prior to 2014, due to the lack of company- specific historical and implied volatility information the Company estimated its expected volatility based on the historical volatility of the Company’s publicly-traded peer companies. Beginning in the first quarter of 2014, the Company began to base expected volatility on historical volatility of the Company’s common stock, as adequate historical data regarding the volatility of the Company’s common stock price had become available . The expected term of the Company’s stock options has been determined utilizing the “simplified” method as the Company has insufficient historical experience for option grants overall, rendering existing historical experience irrelevant to expectations for current grants. The risk-free interest rate is determined by reference to the United States Treasury yield curve in effect at the time of grant of the award for time periods approximately equal to the expected term of the award. Expected dividend yield is based on the fact that the Company has never paid cash dividends and does not expect to pay any cash dividends in the foreseeable future. The relevant data used to determine the value of the stock option grants, presented on a weighted average basis , was as follows : Year Ended December 31, 2016 2015 2014 Risk-free interest rate 1.52 % 1.38 % 1.88 % Expected term (in years) 6.2 6.1 6.1 Expected volatility 77 % 70 % 84 % Expected dividend yield — % — % — % Compensation expense related to restricted stock granted to employees and non-employee directors is equal to the excess, if any, of the fair value of the Company’s common stock on date of grant over the original purchase price per share, multiplied by the number of shares of restricted common stock issued for employees. Compensation expense related to restricted stock granted to non-employee s is equal to the excess, if any, of the fair value of the Company’s common stock on date of vesting over the original purchase price per share, multiplied by the number of shares of restricted common stock vesting. The Company recognizes compensation expense for only the portion of awards that are expected to vest. In developing a forfeiture rate estimate, the Company has considered its historical experience to estimate pre-vesting forfeitures for service-based awards. The impact of a forfeiture rate adjustment will be recognized in full in the period of adjustment, and if the actual forfeiture rate is materially different from the Company’s estimate, the Company may be required to record adjustments to stock-based compensation expense in future periods. The Company recorded stock-based compensation expense related to stoc k options and restricted stock as follows: Year Ended December 31, 2016 2015 2014 Research and development $ 1,069 $ 1,646 $ 1,611 Cost of product sales and inventories 116 118 48 Selling, general and administrative 7,291 6,828 5,471 $ 8,476 $ 8,592 $ 7,130 As of December 31, 2016 , t he Company had an aggregate of $6,727 and $2,449 of unrecognized stock-based compensation expense for options outstanding and restricted stock awards, respectively, which is expected to be recognized over 2.04 years and 1.49 years, respectively . |
Net Loss Per Share
Net Loss Per Share | 12 Months Ended |
Dec. 31, 2016 | |
Net Loss Per Share [Abstract] | |
Net Loss Per Share | 15. Net Loss Per Share Basic and diluted net loss per share was calculated as follows: Year Ended December 31, 2016 2015 2014 Numerator: Net loss $ (33,575) $ (84,054) $ (38,816) Denominator: Weighted average shares outstanding, basic and diluted 35,273,228 34,355,525 29,767,429 Net loss per share, basic and diluted $ (0.95) $ (2.45) $ (1.30) Stock options for the purchase of 2,317,449 , 1,814,689 , and 1,789,305 shares of common stock were excluded from the computation of diluted net loss per share for the years ended December 31, 2016 , 2015 and 2014 , respectively, because those options had an anti-dilutive impact due to the net loss incurred for the period. |
Commitments And Contingencies
Commitments And Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments And Contingencies [Abstract] | |
Commitments And Contingencies | 1 6 . Commitments and Contingencies Operating Leases Future minimum lease payments for operating leases as of December 31, 2016 , were as follows: Year Ending December 31, 2017 663 2018 676 2019 681 2020 697 2021 201 Thereafter - Total $ 2,918 The Company leases facilities and certain operating equipment under operating leases expiring through 2021. The Company incurred rent expense of $726 , $678 and $565 for the years ended December 31, 2016 , 2015 and 2014 , respectively. Litigation From time to time, the Company may become subject to legal proceedings, claims and litigation arising in the ordinary course of business, including those related to patents, product liability and government investigations. Except as described below, the Company is not presently a party to any litigation which it believes to be material, and is not aware of any pending or threatened litigation against the Company which it believes could have a material effect on its financial statements. The Company accrues contingent liabilities when it is probable that a future liability has been incurred and such liability can be reasonably estimated. On February 6, 2017, a purported class action lawsuit was filed in the United States District Court for the Southern District of New York against the Company and two of its current officers, Yanbing Min v. Aratana Therapeutics, Inc., et al., Case No. 1:17-cv-00880. On February 27, 2017, a second purported class action lawsuit was filed in the United States District Court for the Southern District of New York against the Company and two of its current officers, Dezi v. Aratana Therapeutics, Inc., et al., Case No. 1:17-cv-01446. Both lawsuits assert claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended, and are premised on allegedly false and/or misleading statements, and alleged non-disclosure of material facts, regarding the Company’s business, operations, prospects and performance during the proposed class period of March 16, 2015 to February 3, 2017. The Company intends to vigorously defend all claims asserted. Given the early stage of the li tigation, at this time a loss is not probable or reasonably estimable. The Company currently is not a party to any threatened or pending litigation related to intellectual property. However, third parties might allege that the Company or its licensors are infringing their patent rights or that the Company is otherwise violating their intellectual propert y rights. Such third parties may resort to litigation against the Company or its licensors, which the Company has agreed to indemnify. With respect to some of these patents, the Company expects that it will be required to obtain licenses and could be required to pay license fees or royalties, or both. These licenses may not be available on acceptable terms, or at all. A costly license, or inability to obtain a necessary license, could have a material adverse effect on the Company’s financial condition, results of operations or cash flows. Indemnification Agreements In the ordinary course of business, the Company may provide indemnifications of varying scope and terms to customers, vendors, lessors, business partners, and other parties with respect to certain matters including, but not limited to, losses arising out of breach of such agreements, from services to be provided by the Company, or from intellectual property infringement claims made by third parties. In addition, the Company has entered into indemnification agreements with certain of its officers and members of its Board of Directors that will require the Company, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors or officers. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is, in many cases, not readily quantifiable. To date, the Company has not incurred any material costs as a result of such indemnifications. The Company does not believe that the outcome of any claims under indemnification arrangements will have a material effect on its financial position, results of operations or cash flows, and it has not accrued any liabilities related to such obligations in its consolidated financial statements as of December 31, 2016 or 2015 . |
Business Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Business Combinations | 17. Business Combinations Acquisition of Okapi Sciences On January 6, 2014 , the Company acquired Okapi Sciences, a Leuven, Belgium based company with a proprietary antiviral platform and three clinical/development stage product candidates. This acquisition further expanded the existing Company pipeline. The aggregate purchase price was approximately $ 44,439 , which consisted of $ 14,139 in cash, a promissory note in the principal amount of $ 15,134 with a maturity date of December 31, 2014 , and a contingent consideration of up to $16,308 with an acquisition fair value of $ 15,166 . The promissory note bore interest at a rate of 7% per annum, payable quarterly in arrears, and was subject to mandatory prepayment in the event of a specified equity financing by the Company. On February 4, 2014, the promissory note and accrued interest was paid in cash in the amount of $15,158 . On March 17, 2014, the contingent consideration was settled in cash in the amount of $15,235 and the difference between the initial fair value amount and settlement amount was $69 which was reflected as a charge to selling, general and administrative expenses in the consolidated statements of operations. Included in the Company’s consolidated statements of operations for the year ended December 31, 2014 , is revenue totaling approximately $452 related to Okapi Sciences. The acquisition of Okapi Sciences was accounted for as a business combination under the acquisition method of accounting. Accordingly, the assets acquired and liabilities assumed were recorded at fair value with the remaining purchase price recorded as goodwill. The assets acquired and the liabilities assumed from Okapi Sciences have been recorded at their fair values at the date of acquisition, being January 6, 2014. The Company’s consolidated financial statements and results of operations include the results of Okapi Sciences from January 6, 2014. Acquisition of Vet Therapeutics, Inc. On October 15, 2013 , the Company acquired Vet Therapeutics, a San Diego, California based company with a proprietary antibody-based biologics platform. This acquisition further expanded the existing Company pipeline. The aggregate purchase price was approximately $51,515 , which consisted of $30,005 in cash, 624,997 shares of Aratana’s common stock with an acquisition date fair value of $14,700 , a promissory note in the principal amount of $3,000 with a maturity date of December 31, 2014 , and contingent consideration of up to $5,000 with an acquisition-date fair value of $3,810 . The promissory note bore interest at a rate of 7% per annum, payable quarterly in arrears, and was subject to prepayment in the event of a specified equity financing by the Company. The Company could have paid up to $5,000 in contingent cash consideration in connection with the achievement of certain regulatory and manufacturing milestones for BLONTRESS. On February 4, 2014, the promissory note and accrued interest was paid in cash in the amount of $3,020 . On March 5, 2015 , the contingent consideration was settled in the amount of $3,000 and the Company recorded a credit of $1,248 to selling, general and administrative expense to reduce the fair value of the contingent consideration to zero as a result of agreement with the Vet Therapeutics shareholders. Included in the Company’s consolidated statements of operations for the years ended December 31, 2014 and 2013, is revenue totaling approximately $273 and $123 , respectively, related to Vet Therapeutics. The acquisition of Vet Therapeutics was accounted for as a business combination under the acquisition method of accounting. Accordingly, the assets acquired and liabilities assumed were recorded at fair value with the remaining purchase price recorded as goodwill. The assets acquired and the liabilities assumed from Vet Therapeutics have been recorded at their fair values at the date of acquisition, being October 15, 2013. The Company’s consolidated financial statements and results of operations include the results of Vet Therapeutics from October 16, 2013. Pro Forma Financial Information The following pro forma financial information summarizes the combined results of operations for the Company as though the acquisition of Okapi Sciences occurred on January 1, 2013: Year Ended December 31, 2014 (Unaudited) Revenue $ 767 Loss from operations (41,314) Loss before income taxes $ (39,979) Net loss per share before income taxes, basic and diluted $ (1.34) Pro forma results include non-recurring pro forma adjustments that were directly attributable to the business combinations. The following material non-recurring pro forma adjustments relating to charges recorded in 2014 have been assumed to have occurred in 2013 for pro forma purposes: · Pre-tax increase in income of $440 in 2014, relating to acquisition-related transaction costs incurred by the Company and Okapi Sciences. The pro forma financial information for all periods presented has been calculated after adjusting the results of the Company and Okapi Sciences to reflect the business combination accounting effects resulting from this acquisition including the amortization expenses from intangible assets, the depreciation expenses from acquired tangible assets, the stock-based compensation expense for unvested stock options and restricted stock units assumed and the related tax effects as though the acquisition occurred as of January 1, 2013 for Okapi Sciences. The pro forma financial information is for informational purposes only and is not indicative of the results of operations that would have been achieved if the acquisition had taken place at the beginning of the Company’s 2014 fiscal yea r. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Taxes [Abstract] | |
Income Taxes | 18. Income Taxes The components of loss from continuing operations before income taxes benefit were as follows: Year Ended December 31, 2016 2015 2014 United States $ (29,959) $ (65,481) $ (34,256) Non-United States (3,616) (20,271) (6,003) Loss from continuing operations $ (33,575) $ (85,752) $ (40,259) The components of the income tax benefit were as follows: Year Ended December 31, 2016 2015 2014 Current: Federal $ — $ — $ — State — — — Deferred: Federal — — — State — — — Foreign — 1,698 1,443 Total $ — $ 1,698 $ 1,443 A reconciliation of the United States federal statutory income tax rate to the Company’s effective income tax rate was as follows: Year Ended December 31, 2016 2015 2014 Federal statutory income tax rate 34.0 % 34.0 % 34.0 % State income taxes, net of federal tax benefit 3.2 2.5 1.1 Non-deductible expenses (1.3) (1.1) (3.0) Research credits 5.0 0.4 0.8 Losses benefitted/(not benefitted) (40.9) (33.8) (29.3) Total 0.0 % 2.0 % 3.6 % Net deferred tax assets consisted of the following: Year Ended December 31, 2016 2015 2014 Net operating loss carry forwards $ 27,244 $ 26,670 $ 12,196 Capitalized start-up costs 5,990 6,645 7,151 Tax credit carry forwards 2,996 1,308 1,062 Intangibles, net 2,072 — — Capitalized research and development, net 10,005 11,911 10,378 Other temporary differences 7,940 3,451 1,469 Total deferred tax assets 56,247 49,985 32,256 Valuation allowance (56,116) (46,885) (14,747) Net deferred tax assets 131 3,100 17,509 Intangibles, net — (3,041) (19,356) Depreciation (131) (59) (18) Total deferred tax liabilities (131) (3,100) (19,374) Net deferred tax liability $ — $ — $ (1,865) As of December 31, 2016 , the Company had net operating loss carryforwards for federal and state income tax purposes of $52,091 and $48,834 , respectively, which begin to expire in fiscal year 2031 and 2020 , respectively. Approximately $1,465 of the federal and state net operating loss carryforwards relate to excess tax deductions from share-based payments. As of December 31, 2016 , the Company had federal and state research and development tax credit carryforwards of $2,357 and $967 , respectively, which begin to expire in fiscal year 2031 and until utilized, respectively. Additionally, $4,038 of excess tax deductions from share-based payments were capitalized in 2014 and are being amortized over 15 years for tax purposes. The Company has approximately $23,413 of foreign net operating loss carryforward, which may be carried forward indefinitely. Management of the Company has evaluated the positive and negative evidence bearing upon the realizability of its deferred tax assets, which are comprised principally of net operating loss carryforwards and research and development credits. Under the applicable accounting standards, management has considered the Company’s history of losses and concluded that it is more likely than not that the Company will not recognize the benefits of net federal and state deferred tax assets. Accordingly, a full valuation allowance of the net U nited S tates deferred tax asset had been established at December 31, 2016 and 2015 . The Company recognized a deferred tax benefit of approximately $1,698 during 2015 for losses incurred in Belgium. On January 6, 2014, we acquired Okapi Sciences. As a result of the acquisition, we recorded approximately $3,786 of net deferred tax liability primarily related to the step-up of intangible assets for book purposes. The taxable temporary difference from the acquisition is considered a source of future taxable income in determining the realizability of our deferred tax assets. During 2014, we recognized approximately $1,443 of income tax benefit for losses incurred in Aratana NV. Utilization of the net operating loss and research and development credit carryforwards may be subject to a substantial annual limitation under Section 382 of the Internal Revenue Code of 1986 due to ownership change limitations that have occurred previously or that could occur in the future. These ownership changes may limit the amount of net operating loss and research and development credit carryforwards that can be utilized annually to offset future taxable income and tax, respectively. The Company has not completed a study to assess whether an ownership change has occurred, or whether there have been multiple ownership changes since its formation, due to significant complexity and related costs associated with such a study. Changes in the valuation allowance for deferred tax assets during the years ended December 31, 2016 , 2015 and 2014 , were as follows: Year Ended December 31, 2016 2015 2014 Valuation allowance as of beginning of year $ 46,885 $ 14,747 $ 3,118 Increases due to acquisitions — — 271 Increases due to operations 9,231 32,138 11,358 Valuation allowance as of end of year $ 56,116 $ 46,885 $ 14,747 The Company has not recorded any amounts for unrecognized tax benefits as of December 31, 2016 and 2015 . The Company will recognize interest and penalties related to uncertain tax positions in income tax expense. As of December 31, 2016 and 2015 , the Company had no accrued interest or penalties related to uncertain tax positions and no amounts have been recognized in the Company’s consolidated statements of operations. The Company files tax returns as prescribed by the tax laws of the jurisdictions in which it operates. The Company’s major taxing jurisdictions include the U nited S tates ( federal and states ) and Belgium. In the normal course of business, the Company is subject to examination by federal and state jurisdictions, where applicable. In 2016, the Internal Revenue Service completed the examination of the Company’s federal income tax return for tax year 2013. The examination did not result in any adjustments to the taxable loss previously reported. The Company’s tax years are still open under statute from 201 3 to the present. The Company’s policy is to record interest and penalties related to income taxes as part of its income tax expense in the consolidated statements of operations. On December 18, 2015, the Consolidated Appropriations Act, 2016 (Pub. L. 114-113) ("the 2015 Act") was signed into law, retroactively reinstated research credit for qualified research expenses ("QREs") paid or incurred in 2015, and made the credit permanent. Under the accounting guidance on this topic, the effects are recognized as a component of income tax expense or benefit from continuing operations in the consolidated financial statements for the interim or annual period that includes the enactment date. |
Variable Interest Entity
Variable Interest Entity | 12 Months Ended |
Dec. 31, 2016 | |
Variable Interest Entity [Abstract] | |
Variable Interest Entity | 19. Variable Interest Entity ViroVet BVBA During the third quarter of 2015, the Company reviewed certain operations of its wholly owned subsidiary, Aratana NV. As a result, the Company made the strategic decision to wind down pre-clinical discovery efforts being performed at Aratana NV and focus future efforts of Aratana NV on clinical assets, the development of core legacy programs, i.e. AT-001, AT-002 and AT-003 for EU approval, business development and monetization of production animal assets and know-how obtained in the acquisition of Okapi Sciences. To facilitate this reorganization, the Company , via Aratana NV, along with the former General Manager of Aratana NV, the current General Manager of Aratana NV and a consultant to the Company , formed ViroVet BVBA (“ViroVet”) during the third quarter of 2015 and began to transition employees from Aratana NV to ViroVet . D uring 2016 the Company completed the transition of selected Aratana NV employees, assets and liabilities to ViroVet to further pursue the research and development of production animal products. As of December 31, 2016, the Company held a minority interest in ViroVet’s common and preferred stock, ha d little to no involvement in the operations of ViroVet and ha d no further obligation to provide an y further capital. Equity Investment In July 2015 and August 2016 , the Company paid $2 and $4 , respectively, for founders ’ shares of common stock in ViroVet. In December 2016, the Company received additional shares of ViroVet common stock for assets and rights t ransferred by Aratana NV to ViroVet . Convertible Loan Agreement On September 11, 2015, Aratana NV and ViroVet executed a convertible loan agreement in which Aratana NV agreed to loan ViroVet $335 ( €300 ) on September 15, 2015. The convertible loan agreement required ViroVet to use the proceeds towards the development and operations of ViroVet in accordance with the budget prepared by ViroVet. The loan bore an annual interest rate of 7% and was unsecured. In September 2016, the Company agreed to extend the term of the convertible loan agreement up to March 31, 2017. In December 2016, the principal and accrued interest of the convertible loan was converted to preferred shares of ViroVet. Primary Beneficiary Upon formation of ViroVet, t he Company determined ViroVet is a VIE and it was the primary beneficiary as it had a controlling financial interest in ViroVet due to the Company having the power to direct the activities of ViroVet that most significantly impact ed ViroVet’s economic performance and having the obligation to absorb losses or receive benefits . Being the primary beneficiary, the Company had been consolidating ViroVet since formation. The Company determined that as a result of a capital raise with outside third-party investors completed by ViroVet in December 2016 and the convertible loan conversion the Company was no longer the primary beneficiary and consolidation was no longer required. Accordingly, the Company deconsolidated ViroVet as of the date of the capital raise and recognized a gain of $276 on deconsolidation in other income (expense) in the quarter ended D ecember 31, 2016. The Company’s equity investment in ViroVet will be accounted for using the cost method subsequent to deconsolidation as the Company’s remaining ownership interest is less than 20% and the Company has no board seat or other means to exert significant influence on ViroVet . |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 2 0 . Related Party Transactions MPM Asset Management, LLC The Company subleased office space (Heartland House in Kansas City, Kansas) and received office related services from MPM Asset Management, LLC, formerly an affiliate of two of the Company’s principal stockholders. This sublease ended on December 31, 2015. Rent paid in the years ended December 31, 2015 and 2014 , was $50 and $67 , respectively. The Company leased office space (Boston) and received certain office-related services. The term of the agreement was from February 9, 2013 through December 31, 2013 . The Company then leased this space month-to-month through June 2014. Rent and services paid in the year ended December 31, 2014, was $60 . MPM Heartland House, LLC The Company leased its former corporate headquarters office space in Kansas City, Kansas from MPM Heartland House, LLC, a company in which the current Chief Executive Officer and President of the Company, also a director of the Company, is the principal owner. The most recent lease period was from May 1, 2013 to December 3 1, 2015 . Rent paid in the years ended December 31, 2015 and 2014 , was $131 and $113 , respectively. The Company believes the terms of the lease agreement with MPM Heartland House were no less favorable than those that the Company could have obtained from an unaffiliated third party. Also, the Company had a services agreement with MPM Heartland House, LLC which included the lease of the furniture, janitorial and other services to care for the property. Service charges were $33 for each of the years ended December 31, 2015 and 2014 . Indemnification Agreements The Company has entered into indemnification agreements with each of its directors and executive officers. These agreements, among other things, require the Company or will require the Company to indemnify each director (and in certain cases their related venture capital funds) and executive officer to the fullest extent permitted by Delaware law, including indemnification of expenses such as attorneys’ fees, judgments, fines and settlement amounts incurred by the director or executive officer in any action or proceeding, including any action or proceeding by or in right of the Company, arising out of the person’s services as a director or executive officer. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data | 12 Months Ended |
Dec. 31, 2016 | |
Selected Quarterly Financial Data [Abstract] | |
Selected Quarterly Financial Data | 2 1. Selected Quarterly Financial Data (unaudited) S elected unaudited quarterly financial data for each of the quarters in the years ended December 31, 2016 and 2015 (in thousands, except share and per share data) , was as follows : 2016 First Second Third Fourth Quarter Quarter Quarter Quarter Net revenues $ 172 $ 38,047 (1) $ 40 $ 292 Gross profit 153 36,306 (246) (801) Net income (loss) (18,067) 21,196 (13,371) (23,333) Net income attributable to participating securities — (20) — — Net income (loss) attributable to common stockholders (2) (18,067) 21,176 (13,371) (23,333) Weighted average shares outstanding, basic 34,653,479 34,762,533 35,092,686 36,571,927 Weighted average shares outstanding, diluted 34,653,479 34,938,455 35,092,686 36,571,927 Net income (loss) per share, basic and diluted (2) $ (0.52) $ 0.61 $ (0.38) $ (0.64) _ 2015 First Second Third Fourth Quarter Quarter Quarter Quarter Net revenues $ 156 $ 230 $ 229 $ 63 Gross profit 46 121 91 55 Net loss (8,774) (7,983) (54,442) (12,855) Weighted average shares outstanding, basic and diluted 34,193,994 34,278,105 34,405,646 34,540,001 Net loss per share, basic and diluted (2) $ (0.26) $ (0.23) $ (1.58) $ (0.37) _________________ (1) Net revenues in the second quarter of 2016 include revenues recognized related to the upfront payment from the collaboration agreement for GALLIPRANT as further described in Note 1 2 t o the consolid ated financial statements included elsewhere in this Annual Report on Form 10-K. (2) Net income ( loss ) attributable to common stockholders and basic and diluted net income ( loss ) per share are computed consistent with annual per share calculations described i n Notes 2 and 15 to the consolid ated financial statements included elsewhere in this Annual Report on Form 10-K. |
Summary Of Significant Accoun30
Summary Of Significant Accounting Policies (Policy) | 12 Months Ended |
Dec. 31, 2016 | |
Summary Of Significant Accounting Policies [Abstract] | |
Consolidation | Consolidation The Company’s consolidated financial statements include its financial statements, and those of its wholly-owned subsidiaries and a consolidated variable interest entity through the deconsolidation date . Intercompany balances and transactions are eliminated in consolidation. To determine if the Company holds a controlling financial interest in an entity, the Company first evaluates if it is required to apply the variable interest entity (“VIE”) model to the entity. Where the Company holds current or potential rights that give it the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance combined with a variable interest that gives it the right to receive potentially significant benefits or the obligation to absorb potentially significant losses, the Company is the primary beneficiary of that VIE. When changes occur to the design of an entity, the Company reconsiders whether it is subject to the VIE model. The Company continuously evaluates whether it is the primary beneficiary of a consolidated VIE and upon determination that the Company no longer remains the primary beneficiary, the Company deconsolidates the entity and a gain or loss is recognized upon deconsolidation. I n December 2016, the Company concluded that it was no longer the primary beneficiary of a previously consolidated VIE and no longer consolidates the entity (Note 19) . |
Use Of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates, judgments and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Estimates are periodically reviewed in light of changes in circumstances, facts and experience. Actual results could differ from those estimates. |
Cash And Cash Equivalents | Cash and Cash Equivalents The Company classifies all highly liquid investments with stated maturities of three months or less from the date of purchase as cash equivalents. Cash equivalents consisted of certificates of deposit (“CDs”) at December 31, 2016 and 2 015 . |
Restricted Cash | Restricted Cash Pursuant to the terms of the Loan and Security Agreement, the Company has posted collateral to Square 1 Bank N.A., a division of Pacific Western Bank , to collateralize corporate credit card services. The Company classifies the collateral as restricted cash. |
Short-term Investments | Short-term Investments The Company classifies reverse repurchase agreements other than overnight reverse repurchase agreements as short-term investments and as available-for-sale. Short-term investments in both 2016 and 2015 included reverse repurchase agreements and /or CDs with original maturities greater than three months . |
Marketable Securities | Marketable Securities The Company classifies all highly liquid investments with stated maturities of greater than three months from the date of purchase as marketable securities. The Company determines the appropriate classification of investments in marketable securities at the time of purchase and re-evaluates such designation at each consolidated balance sheet date. The Company classifies and accounts for marketable securities as available-for-sale. The Company may or may not hold securities with stated maturities greater than 12 months until maturity. After consideration of the risk versus reward objectives, as well as the Company’s liquidity requirements, the Company may sell these securities prior to their stated maturities. These securities are viewed as being available to support current operations. As a result, the Company classifies securities with maturities beyond 12 months as long-term assets as long-term marketable securities in the consolidated balance sheet. The C ompany reports available-for-sale investments at fair value as of each consolidated balance sheet date and records any unrealized gains and losses as a component of stockholders’ equity . The cost of securities sold is determined on a specific identification basis, and realized gains and losses are included in other income (expense) in the consolidated statements of operations. If any adjustment to fair value reflects a decline in the value of the investment, the Company considers available evidence to evaluate the extent to which the decline is “other than temporary” and recognizes the impairment by releasing other comprehensive income to the consolidated statement of operations. There were no such adjustments necessary during the year s ended December 31, 2016 and 2015 . |
Accounts Receivable, Net | Accounts Receivable , net Accounts receivable are uncollateralized customer obligations due under normal trade terms generally requiring payment within 30 days of the invoice date. The Company provides an allowance for doubtful accounts equal to the estimated losses that will be incurred in collection of accounts receivable. This estimate is based on the current review of existing receivables and historical experience in the industry. The allowance and associated accounts receivable are reduced when the receivables are determined to be uncollectible. |
Inventories | Inventories The Company states i nventories at the lower of cost or market and consist of raw materials, work-in-process and finished goods. Cost is determined by the average cost method for raw materials and standard cost for work-in-process and finished goods, which approximates actual cost. Market is considered the lower of prevailing replacement cost or net realizable value. Inventories acquired in b usiness combinations are recorded at fair value as of acquisition date. |
Pre-Launch Inventories | Pre-Launch Inventories The Company may scale-up and make commercial quantities of certain of its product candidates prior to the date it anticipates that such products will receive final United States Food and Drug Administration (“FDA”)/United States Department of Agriculture (“ USDA ”) approval. The scale-up and commercial production of pre-launch inventories involves the risk that such products may not be approved for marketing by the FDA/USDA on a timely basis, or ever. Inventory costs associated with product candidates that have not yet received regulatory approval are capitalized if the Company believes there is probable future commercial use and future economic benefit. If the probability of future commercial use and future economic benefit cannot be reasonably determined, then pre-launch inventory costs associated with such product candidates are expensed as research and development expense during the period the costs are incurred. Specifically, the Company has determined that for FDA-regulated product candidates there is a probable future commercial use and future economic benefit upon the receipt of the three major technical section complete letters from the FDA’s Center for Veterinary Medicine (“CVM”). For USDA product candidates, the Company has determined there is a probable future commercial use and future economic benefit upon the receipt of a conditional license from the USDA’s Center for Veterinary Biologics. The Company makes at least quarterly reassessments of the probability of regulatory approval and useful life of the pre-launch inventory, and determines whether such inventory continues to have a probable future economic benefit. |
Property And Equipment, Net | Property and Equipment , net The Company records property and equipment at historical cost or, in the case of a business combination, at fair value on the date of the business combination, less accumulated depreciation and amortization. Depreciation and amortization expense is recognized using the straight-line method over the following estimated useful lives: Laboratory and office equipment 3 – 10 years Computer software and equipment 3 – 5 years Furniture 3 – 7 years Vehicles 3 – 5 years Leasehold improvements 3 – 10 years Leasehold improvements are amortized over the shorter of the life of the related asset or the term of the lease. Expenditures for repairs and maintenance of assets are charged to expense as incurred. Costs of major additions and betterments are capitalized and depreciated on a straight-line basis over their useful lives. When property and equipment are disposed of, the cost and respective accumulated depreciation and amortization are removed from the accounts . Any gain or loss on disposal is recorded in the consolidated statements of operations in other income (expense) . |
Goodwill | Goodwill Goodwill relates to amounts that arose in connection with the Company’s business combinations (Note 17) and represents the difference between the purchase price and the estimated fair value of the identifiable tangible and intangible net assets w hen accounted for using the acquisition method of accounting. Goodwill is not amortized, but is subject to periodic review for impairment. The Company tests goodwill at the reporting unit level for impairment on an annual basis and between annual tests, if events and circumstances indicate impairment may exist. Events that would indicate impairment and trigger an interim impairment assessment include, but are not limited to, current economic and market conditions, including a decline in market capitalization, a significant adverse change in legal factors, business climate or operational performance of the business and an adverse action or assessment by a regulator. |
Intangible Assets, Net | Intangible Assets, net The Company’s intangible assets consist of intellectual property rights acquired for currently marketed products (amortized intangibles) and intellectual property rights acquired for in-process research and development (“IPR&D”) (unamortized intangibles). All of the Company’s IPR&D intangible assets were recorded in connection with the Company’s business combination s (Note 17). All of the Company’s amortized intangibles were recorded in connection with the Company’s business combinations (Note 17) or approval/post-approval milestone payments made under the Company’s license agreements. Th e Company’s intangible assets are recorded at fair value at the time of their acquisition. The Company amortizes intangible assets over their estimated useful lives once the acquired technology is developed into a commercially viable product. The estimated useful lives of the individual categories of intangible assets are based on the nature of the applicable intangible asset and the expected future cash flows to be derived from the intangible asset. Amortization of intangible assets with finite lives is recognized over the time the intangible assets are estimated to contribute to future cash flows. The Company amortizes finite-lived intangible assets using the straight-line method as revenues cannot be reasonably estimated. Indefinite-lived IPR&D intangible assets are assessed for impairment at least annually. In addition, all intangible assets are reviewed for impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable. Factors the Company considers in deciding when to perform an impairment review include significant underperformance of the business in relation to expectations, significant negative industry or economic trends, and significant changes or planned changes in the use of the assets. If an impairment review is performed to evaluate a long-lived asset for recoverability, the Company compares forecasts of undiscounted cash flows for definite-lived intangible assets and discounted cash flows for indefinite-lived IPR&D intangible assets expected to result from the use and eventual disposition of the long-lived asset to its carrying value. An impairment loss would be recognized when estimated undiscounted (definite-lived) or discounted (indefinite-lived) future cash flows expected to result from the use of an asset are less than its carrying amount. The impairment loss would be based on the excess of the carrying value of the impaired asset over its fair value, determined based on discounted cash flows. |
Derivative Financial Instruments | Derivative Financial Instruments T he Company accounts for its derivative instruments as either assets or liabilities and carries them at fair value. The Comp any’s sole deriva tive (Note 9) was a warrant t o purchase common stock and was adjusted to fair value through current income as it was not designated as a hedging instrument . In 2015, the Company exercised the warrant and subsequently sold the shares of common stock received upon exercise. |
Foreign Currency | Foreign Currency With the acquisition of Okapi Sciences (Note 17 ) in 2014, the Company is exposed to effects of foreign currency from translation. Transactions in foreign currencies are translated into the relevant functional currency at the rate of exchange at the date of the transaction. Transaction gains and losses are recognized in other income (expense) in the consolidated statements of operations. The results of operations for subsidiaries, whose functional currency is not the United States Dollar, are translated into the United States Dollar at the average rates of exchange during the period, with the subsidiaries’ balance sheets translated at the rates accumulated at the balance sheet date. The cumulative effect of these exchange rate adjustments is included in a separate component of other comprehensive income (loss) in the consolidated balance sheets. Gains and losses arising from intercompany foreign currency transactions are included in loss from operations unless the gains and losses arise from long-term investments in subsidiaries . Gains and losses from long-term investments in subsidiaries are included in a separate component of other comprehensive income (loss). |
Business Combinations | Business Combinations The Company’s business acquisitions were made at a price above the fair value of the assets acquired and liabilities assumed, resulting in goodwill, based on the Company’s expectations of synergies and other benefits of combining the businesses. These synergies and benefits include elimination of redundant facilities, functions and staffing; use of the Company’s existing commercial infrastructure to expand sales of the products of the acquired businesses; and use of the commercial infrastructure of the acquired businesses to expand product sales in a cost-efficient manner. Significant judgment is required in estimating the fair value of intangible assets and in assigning their respective useful lives. The fair value estimates are based on available historical information and on future expectations and assumptions deemed reasonable by management, but which are inherently uncertain. The Company generally employs the income method to estimate the fair value of intangible assets, which is based on forecasts of the expected future cash flows attributable to the respective assets. Significant estimates and assumptions inherent in the valuations reflect a consideration of other marketplace participants, and include the amount and timing of future cash flows (including expected growth rates and profitability), the underlying product life cycles, economic barriers to entry, a brand’s relative market position and the discount rate applied to the cash flows. Unanticipated market or macroeconomic events and circumstances may occur, which could affect the accuracy or validity of the estimates and assumptions. Net assets acquired are recorded at their fair value and are subject to adjustment upon finalization of the fair value analysis. The Company is not aware of any information that indicates the final fair value analysis will differ materially from the preliminary estimates. Contingent consideration is recorded as a liability and measured at fair value using a discounted cash flow model utilizing significant unobservable inputs, including the probability of achieving each of the potential milestones and an estimated discount rate commensurate with the risks of the expected cash flows attributable to the milestones. Significant increases or decreases in any of the probabilities of success would result in a significantly higher or lower fair value, respectively, and commensurate changes to this liability. At each reporting date, we revalue the contingent consideration obligations to the reporting date fair values and record increases and decreases in the fair values as income or expense in the consolidated statements of operations until actual settlement occurs. Increases or decreases in the fair values of the contingent consideration obligations may result from changes in discount periods and rates, changes in the timing and amount of earn-out criteria and changes in probability assumptions with respect to the likelihood of achieving the various earn-out criteria. On January 6, 2014, the Company acquired Okapi Sciences, a Leuven, Belgium based company with a proprietary antiviral platform and three clinical/development stage product candidates. The aggregate purchase price was approximately $44,439 , which consisted of $14,139 in cash, a promissory note in the principal amount of $15,134 with a maturity date of December 31, 2014 , and a contingent consideration of up to $16,308 with an acquisition fair value of $15,166 . The promissory note bore interest at a rate of 7% per annum, payable quarterly in arrears, and was subject to mandatory prepayment in the event of a specified equity financing by the Company. On February 4, 2014, the promissory note and accrued interest was paid in cash in the amount of $15,158 . On March 17, 2014, the contingent consideration was settled in cash in the amount of $15,235 . |
Deferred Public Offering And At-The-Market Offering Costs | Deferred Public Offering and At-the-Market Offering Costs T he Company capitalizes certain legal, accounting and other third-party fees that are directly associated with in-process equity financings as other assets until such financings are consummated. After consummation of the equity financing, these costs are recorded in stockholders’ equity (deficit) as a reduction of additional paid-in capital generated as a result of the offering. Should it no longer be considered probable that the equity financing will be consummated, the deferred offering costs would be expensed immediately as a charge to operating expenses in the consolidated statements of operations. On October 16, 2015, the Company entered into a Sales Agreement with Barclays Capital Inc. (“Barclays”) pursuant to which the Company may sell from time to time, at its option, shares of its common stock through Barclays, as sales agent (Note 13) . The Company recorded $20 and $189 of deferred equity offering costs as of December 31, 2016 and 2015 , respectively. |
Income Taxes | Income Taxes The Company accounts for income taxes using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the consolidated financial statements or in the Company’s tax returns. Deferred taxes are determined based on the difference between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect in the years in which the differences are expected to reverse. Changes in deferred tax assets and liabilities are recorded in the provision for income taxes. The Company assesses the likelihood that its deferred tax assets will be recovered from future taxable income and, to the extent it believes, based upon the weight of available evidence, that it is more likely than not that all or a portion of deferred tax assets will not be realized, a valuation allowance is established through a charge to income tax expense. Potential for recovery of deferred tax assets is evaluated by estimating the future taxable profits expected and considering prudent and feasible tax planning strategies. The Company accounts for uncertainty in income taxes recognized in the consolidated financial statements by applying a two-step process to determine the amount of tax benefit to be recognized. First, the tax position must be evaluated to determine the likelihood that it will be sustained upon external examination by the taxing authorities. If the tax position is deemed more-likely-than-not to be sustained, the tax position is then assessed to determine the amount of benefit to recognize in the consolidated financial statements. The amount of the benefit that may be recognized is the largest amount that has a greater than 50% likelihood of being realized upon ultimate settlement. The provision for income taxes includes the effects of any resulting tax reserves, or unrecognized tax benefits, that are considered appropriate as well as the related net interest and penalties. |
Debt Issuance Costs, Net | Debt Issuance Costs , net Debt issuance costs, net represent legal and other direct costs related to the Company’s Loan and Security Agreemen t (Note 10). These costs are recorded as an offset to the carrying value of loans payable i n the consolidated balance sheet at the time they are incurred and are amortized to interest expense through the scheduled final principal payment date. During the year ended December 31, 2015, the Company capitalized additional $360 of debt issuance costs in conjunction with the refinancing of debt. As of December 31, 2016 and 2015, deferred debt issuance costs totaled $259 and $367 . |
Revenue Recognition | Revenue Recognition The Company recognizes revenue when all of the following conditions are met: · persuasive evidence of an arrangement exists ; · delivery has occurred or services have been rendered; · the seller’s price to the buyer is fixed or determinable; and · collect i bility is reasonably assured. The Company’s principal revenue streams and their respective accounting treatments are discussed below: (i) Product sales - Revenue for the sale of products is recognized when delivery has occurred and substantially all the risks and rewards of ownership have been transferred to the customer. Revenue for the sale of products is recorded net of sales returns, allowances and discounts . (ii) Royalty revenue - Royalty revenue relating to the Company’s out-licensed technology is recognized when reasonably estimable. The revenues are recorded based on the licensee’s sales that occurred during the relevant period. Differences between actual and estimated royalty revenues are adjusted for in the period in which they become known, typically in the following quarter. If the Company is unable to reasonably estimate royalty revenue or does not have access to the information, then the Company records royalty revenue when the information needed for a reliable estimate becomes available . (iii) Licensing and collaboration revenues - Revenues derived from product out-licensing arrangements typically consist of an initial up-front payment at inception of the license and subsequent milestone payments contingent on the achievement of certain regulatory, development and commercial milestones. Product out-licensing arrangements with multiple elements are divided into separate units of accounting if certain criteria are met. The up-front payment received is allocated among the separate units of accounting based on their respective fair values, and the applicable revenue recognition criteria are applied to each of the separate units of accounting. The application of the multiple element guidance requires subjective determinations, and requires the Company to make judgments about the individual deliverables and whether such deliverables are separable from the other aspects of the contractual relationship. Deliverables are considered separate units of accounting provided that: (1) the delivered item(s) has value to the customer on a stand-alone basis and (2) 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 Company's control. In determining the units of accounting, the Company evaluates certain criteria, including whether the deliverables have stand-alone value, based on the consideration of the relevant facts and circumstances for each arrangement. In addition, the Company considers whether the buyer can use the other deliverable(s) for their intended purpose without the receipt of the remaining element(s), whether the value of the deliverable is dependent on the undelivered item(s), and whether there are other vendors that can provide the undelivered element(s). Arrangement consideration that is fixed or determinable is allocated among the separate units of accounting using the relative selling price method, and the applicable revenue recognition criteria. The Company determines the estimated selling price for deliverables within each agreement using vendor-specific objective evidence (“VSOE”) of selling price, if available, third-party evidence (“TPE”) of selling price if VSOE is not available, or management's best estimate of the selling price (“BESP”) if neither VSOE nor TPE is available. Determining the BESP for a unit of accounting requires significant judgment. In developing the BESP for a unit of accounting, the Company considers applicable market conditions and relevant entity-specific factors, including factors that were contemplated in negotiating the agreement with the customer and estimated costs. If there are deliverables in an arrangement that are not separable from other aspects of the contractual relationship, they are treated as a combined unit of accounting, with the allocated revenue for the combined unit recognized in a manner consistent with the revenue recognition applicable to the final deliverable in the combined unit. Amounts received prior to satisfying all relevant revenue recognition criteria are recorded as deferred revenue in the consolidated balance sheets and recognized as revenue when the related revenue recognition criteria are met. Amounts not expected to be recognized as revenue within the next twelve months of the consolidated balance sheet date are classified as long-term deferred revenue. The Company recognizes revenue contingent upon the achievement of a milestone in its entirety in the period in which the milestone is achieved only if the milestone meets all the criteria to be considered substantive. At the inception of each arrangement that includes milestone payments, the Company evaluates each contingent payment on an individual basis to determine whether they are considered substantive milestones, specifically reviewing factors such as the degree of certainty in achieving the milestone, the research and development risk and other risks that must be overcome to achieve the milestone, as well as the level of effort and investment required and whether the milestone consideration is reasonable relative to all deliverables and payment terms in the arrangement. This evaluation includes an assessment of whether (a) the consideration is commensurate with either (1) the entity’s performance to achieve the milestone, or (2) the enhancement of the value of the delivered item(s) as a result of a specific outcome resulting from the entity’s performance to achieve the milestone, (b) the consideration relates solely to past performance and (c) the consideration is reasonable relative to all of the deliverables and payment terms within the arrangement. Milestone payments which are non-refundable and deemed substantive, non-creditable and contingent on achieving certain development, regulatory, or commercial milestones are typically recognized as revenues either on achievement of such milestones or over the period the Company has continuing substantive performance obligations. The Company recognizes revenue associated with the non-substantive milestones upon achievement of the milestone if there are no undelivered elements and the Company has no remaining performance obligations. Revenues from commercial milestone payments are recorded as revenue upon achievement of the milestone, assuming all other revenue recognition criteria are met. In the event that an agreement is terminated and the Company then has no further performance obligations, the Company recognizes as revenue any amounts that had not previously been recorded as revenue but were classified as deferred revenue at the date of such termination. Cash considerations (including a sales incentive) given by the Company to a licensee/collaborator/customer is presumed to be a reduction of the selling prices of the Company’s products or services and is recognized as a reduction of revenue unless both of the following conditions are met: a. The Company receives, or will receive, an identifiable benefit (goods or services) in exchange for the consideration. In order to meet this condition, the identified benefit must be sufficiently separable from the recipient’s purchase of the Company’s products such that the Company could have entered into an exchange transaction with a party other than a purchaser of its products or services in order to receive that benefit. b. The Company can reasonably estimate the fair value of the benefit identified under the preceding condition. If the amount of consideration paid by the Company exceeds the estimated fair value of the benefit received, that excess amount shall be characterized as a reduction of revenue when recognized in the Company’s statements of operations. If both conditions are met, the cash consideration is recognized as a cost incurred. |
Research And Development Costs | Research and Development Costs Research and development costs are expensed as incurred. Included in research and development costs are wages, stock-based compensation and employee benefits, and other operational costs related to the Company’s research and development activities, including facility-related expenses, external costs of outside contractors engaged to conduct both preclinical and clinical studies and allocation of corporate costs. Payments received from external parties to fund the Company’s research and development activities are used to reduce the Company’s research and development expenses. If IPR&D is acquired in an asset purchase, then the acquired IPR&D is expensed on its acquisition date. Future costs to develop these assets are recorded to research and development expense as they are incurred. |
Patent Costs | Patent Costs All patent-related costs incurred in connection with filing and prosecuting patent applications are recorded as selling, general and administrative expenses as incurred, as recoverability of such expenditures is uncertain. |
Shipping | Shipping Shipping costs are included in cost of product sales. |
Sales tax | Sales Tax The Company collects and remits taxes assessed by various governmental authorities. These taxes may include sales, use and value added taxes. These taxes are recorded on a net basis and are excluded from sales. |
Accounting For Stock Based Compensation | Accounting for Stock - Based Compensation The Company’s stock-based compensation program grants awards that may consist of stock options and restricted stock awards. The fair values of stock option grants are determined as of the date of grant using the Black-Scholes option pricing method. This method incorporates the fair value of the Company’s common stock at the date of each grant and various assumptions such as the risk-free interest rate, expected volatility based on the volatility of the Company’s common stock price , expected dividend yield, and expected term of the options. The fair values of restricted stock awards are determined based on the fair value of the Company’s common stock. Prior to the Company’s initial public offering of its common stock in June 2013, the fair value of the common stock was determined by management and the Board of Directors, on the date of grant. Beginning in the first quarter of 2014, the Company began to base expected volatility on the historical volatility of its common stock, as adequate historical data regarding the volatility of its common stock price had become available. The fair values of the stock-based awards, including the effect of estimated forfeitures, are then expensed over the requisite service period, which is generally the award’s vesting period. The Company classifies stock-based compensation expense in the consolidated statements of operations in the same manner in which the respective award recipient’s payroll costs are classified. For stock-based awards granted to consultants and nonemployees, compensation expense is recognized over the period during which services are rendered by such consultants and nonemployees until completed. At the end of each financial reporting period prior to completion of the service, the value of these awards is re-measured using the then-current fair value of the Company’s common stock and updated assumption inputs in the Black-Scholes option pricing model. |
Comprehensive Loss | Comprehensive Loss In addition to the Company’s net loss, comprehensive loss during the y ears ended December 31, 2016 , 2015 and 2014 includes foreign currency translation adjustments related to the translation of foreign subsidiaries’ balance sheets and unrealized holding gains and losses on available-for-sale securities. |
Net Loss Per Share | Net Loss Per Share The Company follows the two-class method when computing net loss per share, as the Company has issued shares that meet the definition of participating securities. The two-class method determines net loss per share for each class of common and participating securities according to dividends declared or accumulated and participation rights in undistributed earnings. The two-class method requires income available to common stockholders for the period to be allocated between common and participating securities based upon their respective rights to receive dividends as if all income for the period had been distributed. Restricted stock awards granted by the Company entitle the holder of such awards to dividends declared or paid by the Board of Directors, regardless of whether such awards are unvested, as if such shares were outstanding common shares at the time of the dividend. H owever, the unvested restricted stock awards are not entitled to share in the residual net assets (deficit) of the Company. Accordingly, in periods in which the Company reports a net loss or a net loss attributable to common stockholders resulting from preferred stock dividends, accretion or modifications, net losses are not allocated to participating securitie s. The Company reported a net loss in each of the years ended December 31, 2016 , 2015 and 2014 . Basic net loss per share is computed by dividing the net loss by the weighted average number of shares of common stock outstanding for the period. Diluted net loss is computed by adjusting net loss to reallocate undistributed earnings based on the potential impact of dilutive securities, including outstanding stock options. Diluted net loss per share is computed by dividing the diluted net loss by the weighted average number of shares of common stock, including potential dilutive shares of common stock assuming the dilutive effect of potentially dilutive securities . For periods in which the Company has reported net losses, diluted net loss per share is the same as basic net loss per share, since their impact would be anti-dilutive to the calculation of net loss per share. Diluted net loss per share is the same as basic net loss per share for each of the years ended December 31, 2016 , 2015 and 2014 . |
Concentration Of Credit Risk And Of Significant Suppliers And Customers | Concentration of Credit Risk and of Significant Suppliers and Customers Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash, cash equivalents, short-term investments and accounts receivable. At December 31, 2015, the Company’s short-term investments included reverse repurchase ag reements that are tri-party, have maturities of three months or less at the time of investment and the underlying collateral is United States government securities including United States treasuries, agency debt and agency mortgage securities . At December 31, 2016 and 2015 , all of the Company’s fixed income marketable securities were invested in CDs insured by the Federal Deposit Insurance Corporation. The Company also generally maintains balances in various operating accounts in excess of federally insured limits at two accredited financial institutions. The Company does not believe that it is subject to unusual credit risk beyond the normal credit risk associated with commercial banking relationships. The Company is dependent on a small number of third-party manufacturers to supply active pharmaceutical ingredients (“API”) and formulated drugs for research and development activities in its programs and commercial supply, which would be adversely affec ted by a significant interruption in supply. |
Fair Value Measurements | Fair Value Measurements Certain assets and liabilities are carried at fair value under GAAP. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. A fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last is considered unobservable, is used to measure fair value: · Level 1—Quoted prices in active markets for identical assets or liabilities. · Level 2—Observable inputs (other than Level 1 quoted prices) such as quoted prices in active markets for similar assets or liabilities, quoted prices in markets that are not active for identical or similar assets or liabilities, or other inputs that are observable or can be corroborated by observable market data. · Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to determining the fair value of the assets or liabilities, including pricing models, discounted cash flow methodologies and similar techniques. |
Segment And Geographic Information | Segment and Geographic Information Segment Assets The Company manages its operations as a single segment for the purposes of assessing performance and making operating decisions. The Company is a pet therapeutics company developing compounds to address unmet and under-served medical needs in companion animals. All assets were held in the United States and Belgium as of December 31, 2016 and 2015 . Total assets were $151,406 and $147,066 at December 31, 2016 and 2015 , respectively. Revenue s by Geographic Region Year Ended December 31, 2016 2015 2014 (Dollars in thousands) Revenues United States $ 38,318 $ 678 $ 267 Belgium 233 — 500 Total revenues $ 38,551 $ 678 $ 767 Long Lived Assets by Geographic Region December 31, 2016 2015 (Dollars in thousands) Long-lived assets United States $ 1,947 $ 2,460 Belgium 1 95 Total long-lived assets $ 1,948 $ 2,555 |
New Accounting Standards | New Accounting Standards Revenue from Contracts with Customers In May 2014, the Financial Accounting Standards Board (“FASB”) issued guidance on recognizing revenue in contracts with customers. The guidance affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards (e.g., insurance contracts or lease contracts). This guidance will supersede the revenue recognition requirements in topic, Revenue Recognition , and most industry-specific guidance. This guidance also supersedes certain cost guidance included in subtopic, Revenue Recognition – Construction-Type and Production-Type Contracts . In addition, the existing requirements for the recognition of a gain or loss on the transfer of nonfinancial assets that are not in a contract with a customer (e.g., assets within the scope of topic, Property, Plant, and Equipment , and tangible assets within the scope of topic, Intangibles – Goodwill and Other) are amended to be consistent with the guidance on recognition and measurement (including the constraint on revenue) in this guidance. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In July 2015, the FASB approved a one-year delay in the effective date of the new revenue standard. These changes become effective for the Company on January 1, 2018. Early adoption is permitted but not before the original effective date of January 1, 2017. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is currently assessing the method of adoption and the impact this new guidance will have on its consolidate d financial statements . The timing of revenue recognition for variable consideration under our licensing and collaboration agreements may be different as a result of this new guidance. The Company is reviewing its licensing and collaboration agreements for variable consideration, and if any, whether variable consideration should be estimated and recognized earlier than under the current revenue guidance . Presentation of Financial Statements – Going Concern In August 2014, the FASB issued guidance on management’s responsibility to evaluate, at each annual and interim reporting period, whether there are conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date the financial statements are issued and to provide related disclosures. The guidance requires management to assess an entity’s ability to continue as a going concern by incorporating and expanding upon certain principles that are currently in United States auditing standards. This guidance is effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early adoption is permitted. The Company adopted this guidance on December 31, 2016. Adoption of this guidance will not have a material impact on its financial position or results of operations , but may require additional disclosures within the notes to the consolidated financial statements. Inventory In July 2015, the FASB issued guidance which requires entities to measure most inventory “at lower of cost and net realizable value” thereby simplifying the current guidance under which an entity must measure inventory at the lower of cost or market. This guidance is effective for financial statements issued for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. Early adoption is permitted and is to be applied on a prospective basis. The Company does not expect that this new guidance will have a material impact on its consolidated financial statements and will be adopted on January 1, 2017 . Leases In February 2016, the FASB issued guidance which requires, for operating leases, a lessee to recognize a right-of-use asset and a lease liability, initially measured at the present value of the lease payments, in its balance sheet. The standard also requires a lessee to recognize a single lease cost, calculated so that the cost of the lease is allocated over the lease term, on a generally straight-line basis. This guidance is effective for financial statements issued for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted and is to be applied on a modified retrospective transition. The Company is currently assessing the effect that adoption of this guidance will have on its consolidated financial statements. Compensation – Stock Compensation In March 2016, the FASB issued guidance that simplifies several aspects of the accounting for employee share-based payment transactions including accounting for income taxes, forfeitures and statutory tax withholding requirements, as well as classification in the statement of cash flows. This guidance is effective for financial statements issued for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. Early adoption is permitted. The Company does not expect that this new guidance will have a material impact on its consolidated financial statements and will be adopted on January 1, 2017. Statement of Cash Flows In August 2016, the FASB issued guidance on how certain cash receipts and cash payments are presented and classified in the statement of cash flows. This guidance addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. This guidance is effective for financial statements issued for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted, provided that all of the amendments are adopted in the same period. The guidance requires application using a retrospective transition method. The Company does not expect that this new guidance will have a material impact on its consolidated financial statements. Intangibles—Goodwill and Other In January 2017, the FASB issued guidance on simplifying the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test . U nd er the amendments in this guidance , an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable . This guidance is effective for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019 . Early adoption is permitted for interim or a nnual goodwill impairment tests performed on testing dates after January 1, 2017 . The guidance requires application using a prospective method. The Company does not expect that this new guidance will have a material impact on its consolidated financial statements and will be early adopted on January 1, 2017. |
Summary Of Significant Accoun31
Summary Of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Summary Of Significant Accounting Policies [Abstract] | |
Estimated Useful Lives Of Property, Plant And Equipment | Laboratory and office equipment 3 – 10 years Computer software and equipment 3 – 5 years Furniture 3 – 7 years Vehicles 3 – 5 years Leasehold improvements 3 – 10 years |
Schedule Of Revenue By Geographic Region | Year Ended December 31, 2016 2015 2014 (Dollars in thousands) Revenues United States $ 38,318 $ 678 $ 267 Belgium 233 — 500 Total revenues $ 38,551 $ 678 $ 767 |
Schedule Of Long-Lived Assets By Geographic Region | December 31, 2016 2015 (Dollars in thousands) Long-lived assets United States $ 1,947 $ 2,460 Belgium 1 95 Total long-lived assets $ 1,948 $ 2,555 |
Fair Value Of Financial Asset32
Fair Value Of Financial Assets And Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Of Financial Assets And Liabilities [Abstract] | |
Summary Of Information About Company's Financial Assets And Liabilities Subject To Fair Value Measurement On Recurring Basis | Fair Value Measurements as of Carrying December 31, 2016 Using: Value Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Certificates of deposit $ 7,719 $ — $ 7,719 $ — $ 7,719 Short-term investments: Short-term marketable securities - certificates of deposit 996 — 996 — 996 $ 8,715 $ — $ 8,715 $ — $ 8,715 Fair Value Measurements as of Carrying December 31, 2015 Using: Value Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Certificates of deposit $ 6,972 $ — $ 6,972 $ — $ 6,972 Money market fund 35 35 — — 35 Short-term investments: Short-term marketable securities - certificates of deposit 747 — 747 — 747 Reverse repurchase agreements 58,700 — 58,700 — 58,700 $ 66,454 $ 35 $ 66,419 $ — $ 66,454 |
Change In Fair Value Of Company's Contingent Consideration Payable Measured At Fair Value On Recurring Basis | 2016 2015 As of January 1, $ — $ 4,248 Cash settlement of contingent consideration earned — (3,000) Derecognition of remaining contingent consideration recorded in the consolidated statement of operations (within selling, general and administrative) — (1,248) As of December 31, $ — $ — |
Carrying Amounts And Estimated Fair Value Of Company's Financial Liabilities Not Measured At Fair Value On Recurring Basis | December 31, 2016 Carrying Value Fair Value Liabilities: Loans payable (Level 2) $ 40,188 $ 40,709 December 31, 2015 Carrying Value Fair Value Liabilities: Loans payable (Level 2) $ 39,710 $ 40,569 |
Fair Value Information About Impaired Intangible Assets | Fair Value Measurements as of Carrying December 31, 2016 Using: Value Level 1 Level 2 Level 3 Impairment Intellectual property rights for currently marketed products $ — $ — $ — $ — $ 5,711 Intellectual property rights acquired for in-process research and development — — — — 2,231 $ — $ — $ — $ — $ 7,942 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Investments [Abstract] | |
Fair Value Of Available-For-Sale Marketable Securities | December 31, 2016 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value Short-term marketable securities: Certificates of deposit $ 996 $ — $ — $ 996 Total $ 996 $ — $ — $ 996 December 31, 2015 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value Short-term marketable securities: Certificates of deposit $ 747 $ — $ — $ 747 Total $ 747 $ — $ — $ 747 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Inventories [Abstract] | |
Components Of Inventories | December 31, 2016 December 31, 2015 Raw materials $ 1,441 $ 120 Work-in-process 8,153 441 Finished goods 1,536 745 Total $ 11,130 $ 1,306 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property And Equipment, Net [Abstract] | |
Schedule Of Property And Equipment, Net | December 31, 2016 December 31, 2015 Laboratory and office equipment $ 666 $ 527 Computer equipment and software 2,014 2,039 Furniture 135 132 Vehicles — 11 Leasehold improvements — 91 Construction in process 53 185 Total property and equipment 2,868 2,985 Less: Accumulated depreciation and amortization (920) (430) Property and equipment, net $ 1,948 $ 2,555 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill And Intangible Assets [Abstract] | |
Summary Of Goodwill | Gross Impairment Net Carrying Value Losses Carrying Value Goodwill $ 39,382 $ — $ 39,382 |
Summary Of Change In The Net Book Value Of Goodwill | 2016 2015 As of January 1, $ 39,781 $ 41,398 Effect of foreign currency exchange (399) (1,617) As of December 31, $ 39,382 $ 39,781 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill And Intangible Assets [Abstract] | |
Summary Of Change In The Net Book Value Of Other Intangible Assets | 2016 2015 As of January 1, $ 15,067 $ 62,323 Additions 1,000 — Amortization expense (379) (1,544) Effect of foreign currency exchange (107) (2,314) Impairment (7,942) (43,398) As of December 31, $ 7,639 $ 15,067 |
Estimated Aggregate Amortization Expense Of Intangible Assets | Year Ending December 31, 2017 $ 83 2018 83 2019 83 2020 83 2021 $ 83 |
Summary Of Unamortized Intangible Assets | Net Carrying Value As of December 31, 2016 2015 Intellectual property rights acquired for in-process research and development $ 6,674 $ 9,010 |
Summary Of Amortized Intangible Assets | Gross Net Weighted Carrying Accumulated Carrying Average Value Amortization Value Useful Life Intellectual property rights for currently marketed products $ 39,652 $ 38,687 $ 965 12 Years |
Derivative Financial Instrume38
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Financial Instruments [Abstract] | |
Gain Recognized In Other Income (Expense) | Gain Recognized in Other Income (expense) Year Ended December 31, 2016 2015 2014 Derivative assets: Warrant $ — $ 1,274 $ 465 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt [Abstract] | |
Schedule Of Loan Payable Balance | Principal amounts Term Loan, 7.41% , principal payments from May 1, 2017 through October 16, 2019 $ 35,000 Revolving Line, 7.41% , due October 16, 2017 5,000 Add: accretion of final payment and termination fees 447 Less: unamortized debt issuance costs (259) Total $ 40,188 |
Estimated Future Principal Payments Under Additional Term Loan | Year Ending December 31, 2017 $ 14,333 2018 14,000 2019 11,667 2020 — 2021 — Thereafter — Total $ 40,000 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accrued Expenses [Abstract] | |
Summary Of Accrued Expenses | December 31, 2016 December 31, 2015 Accrued expenses: Payroll and related expenses $ 2,321 $ 1,922 Professional fees 219 388 Royalty expense 71 1 Interest expense 247 238 Research and development costs 364 1,111 Unbilled inventories 465 — Accrued loss on a firm purchase commitment 1,983 — Milestone 17 500 Other 140 87 Total $ 5,827 $ 4,247 |
Stock-Based Awards (Tables)
Stock-Based Awards (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Compensation Related Costs, Share-based Payments [Line Items] | |
Data Used To Determine Value Of Stock Option Grants | Year Ended December 31, 2016 2015 2014 Risk-free interest rate 1.52 % 1.38 % 1.88 % Expected term (in years) 6.2 6.1 6.1 Expected volatility 77 % 70 % 84 % Expected dividend yield — % — % — % |
Summary Of Stock-Based Compensation Expense Related To Stock Options And Restricted Stock | Year Ended December 31, 2016 2015 2014 Research and development $ 1,069 $ 1,646 $ 1,611 Cost of product sales and inventories 116 118 48 Selling, general and administrative 7,291 6,828 5,471 $ 8,476 $ 8,592 $ 7,130 |
2010 Equity Incentive Plan [Member] | |
Compensation Related Costs, Share-based Payments [Line Items] | |
Summary Of Stock Option Activity | Weighted Shares Weighted Average Issuable Average Remaining Aggregate Under Exercise Contractual Intrinsic Options Price Term Value (In Years) Outstanding as of December 31, 2015 86,490 $ 2.95 7.09 $ 228 Granted — — Exercised (20,559) 0.44 Forfeited — — Expired — — Outstanding as of December 31, 2016 65,931 $ 3.73 6.09 $ 228 Options vested and expected to vest as of December 31, 2016 65,864 $ 3.72 6.09 $ 228 Options exercisable as of December 31, 2016 65,838 $ 3.72 6.09 $ 224 |
Summary Of Restricted Stock Activity | Weighted Average Grant Shares Date Fair Value Unvested restricted common stock as of December 31, 2015 37,078 $ 0.36 Issued — — Vested (37,078) 0.36 Forfeited — — Unvested restricted common stock as of December 31, 2016 — $ — |
2013 Incentive Award Plan [Member] | |
Compensation Related Costs, Share-based Payments [Line Items] | |
Summary Of Stock Option Activity | Weighed Shares Weighted Average Issuable Average Remaining Aggregate Under Exercise Contractual Intrinsic Options Price Term Value (In Years) Outstanding as of December 31, 2015 1,728,199 $ 16.57 8.31 $ — Granted 849,933 4.47 Exercised (21,559) 6.00 Forfeited (190,544) 11.84 Expired (114,511) 18.09 Outstanding as of December 31, 2016 2,251,518 $ 12.43 7.78 $ 2,261 Options vested and expected to vest as of December 31, 2016 2,147,006 $ 12.60 7.78 $ 2,142 Options exercisable as of December 31, 2016 1,022,698 $ 16.43 6.73 $ 176 |
Summary Of Restricted Stock Activity | Weighted Average Grant Shares Date Fair Value Unvested restricted common stock as of December 31, 2015 333,263 $ 17.77 Issued 448,317 3.95 Vested (264,481) 13.04 Forfeited (55,636) 7.38 Unvested restricted common stock as of December 31, 2016 461,463 $ 8.30 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Net Loss Per Share [Abstract] | |
Schedule Of Basic And Diluted Net Loss Per Share Attributable To Common Stockholders | Year Ended December 31, 2016 2015 2014 Numerator: Net loss $ (33,575) $ (84,054) $ (38,816) Denominator: Weighted average shares outstanding, basic and diluted 35,273,228 34,355,525 29,767,429 Net loss per share, basic and diluted $ (0.95) $ (2.45) $ (1.30) |
Commitments And Contingencies (
Commitments And Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments And Contingencies [Abstract] | |
Future Minimum Lease Payments For Operating Leases | Year Ending December 31, 2017 663 2018 676 2019 681 2020 697 2021 201 Thereafter - Total $ 2,918 |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Summary Of Proforma Financial Information | Year Ended December 31, 2014 (Unaudited) Revenue $ 767 Loss from operations (41,314) Loss before income taxes $ (39,979) Net loss per share before income taxes, basic and diluted $ (1.34) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Taxes [Abstract] | |
Components Of Income From Continuing Operations Before Income Taxes Benefit | Year Ended December 31, 2016 2015 2014 United States $ (29,959) $ (65,481) $ (34,256) Non-United States (3,616) (20,271) (6,003) Loss from continuing operations $ (33,575) $ (85,752) $ (40,259) |
Components Of Income Tax Benefit From Operations | Year Ended December 31, 2016 2015 2014 Current: Federal $ — $ — $ — State — — — Deferred: Federal — — — State — — — Foreign — 1,698 1,443 Total $ — $ 1,698 $ 1,443 |
Reconciliation Of U.S. Federal Statutory Income Tax Rate To Effective Income Tax Rate | Year Ended December 31, 2016 2015 2014 Federal statutory income tax rate 34.0 % 34.0 % 34.0 % State income taxes, net of federal tax benefit 3.2 2.5 1.1 Non-deductible expenses (1.3) (1.1) (3.0) Research credits 5.0 0.4 0.8 Losses benefitted/(not benefitted) (40.9) (33.8) (29.3) Total 0.0 % 2.0 % 3.6 % |
Net Deferred Tax Assets | Year Ended December 31, 2016 2015 2014 Net operating loss carry forwards $ 27,244 $ 26,670 $ 12,196 Capitalized start-up costs 5,990 6,645 7,151 Tax credit carry forwards 2,996 1,308 1,062 Intangibles, net 2,072 — — Capitalized research and development, net 10,005 11,911 10,378 Other temporary differences 7,940 3,451 1,469 Total deferred tax assets 56,247 49,985 32,256 Valuation allowance (56,116) (46,885) (14,747) Net deferred tax assets 131 3,100 17,509 Intangibles, net — (3,041) (19,356) Depreciation (131) (59) (18) Total deferred tax liabilities (131) (3,100) (19,374) Net deferred tax liability $ — $ — $ (1,865) |
Changes In Valuation Allowance For Deferred Tax Assets | Year Ended December 31, 2016 2015 2014 Valuation allowance as of beginning of year $ 46,885 $ 14,747 $ 3,118 Increases due to acquisitions — — 271 Increases due to operations 9,231 32,138 11,358 Valuation allowance as of end of year $ 56,116 $ 46,885 $ 14,747 |
Selected Quarterly Financial 46
Selected Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Selected Quarterly Financial Data [Abstract] | |
Schedule Of Selected Quarterly Financial Data | 2016 First Second Third Fourth Quarter Quarter Quarter Quarter Net revenues $ 172 $ 38,047 (1) $ 40 $ 292 Gross profit 153 36,306 (246) (801) Net income (loss) (18,067) 21,196 (13,371) (23,333) Net income attributable to participating securities — (20) — — Net income (loss) attributable to common stockholders (2) (18,067) 21,176 (13,371) (23,333) Weighted average shares outstanding, basic 34,653,479 34,762,533 35,092,686 36,571,927 Weighted average shares outstanding, diluted 34,653,479 34,938,455 35,092,686 36,571,927 Net income (loss) per share, basic and diluted (2) $ (0.52) $ 0.61 $ (0.38) $ (0.64) _ 2015 First Second Third Fourth Quarter Quarter Quarter Quarter Net revenues $ 156 $ 230 $ 229 $ 63 Gross profit 46 121 91 55 Net loss (8,774) (7,983) (54,442) (12,855) Weighted average shares outstanding, basic and diluted 34,193,994 34,278,105 34,405,646 34,540,001 Net loss per share, basic and diluted (2) $ (0.26) $ (0.23) $ (1.58) $ (0.37) _________________ (1) Net revenues in the second quarter of 2016 include revenues recognized related to the upfront payment from the collaboration agreement for GALLIPRANT as further described in Note 1 2 t o the consolid ated financial statements included elsewhere in this Annual Report on Form 10-K. (2) Net income ( loss ) attributable to common stockholders and basic and diluted net income ( loss ) per share are computed consistent with annual per share calculations described i n Notes 2 and 15 to the consolid ated financial statements included elsewhere in this Annual Report on Form 10-K. |
The Company And Basis Of Pres47
The Company And Basis Of Presentation (Narrative) (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016USD ($)segmentitem | Oct. 16, 2016USD ($) | Dec. 31, 2015USD ($) | |
The Company And Basis Of Presentation [Line Items] | |||
Date of incorporation | Dec. 1, 2010 | ||
Number of operating segments | segment | 1 | ||
Accumulated deficit | $ (185,593) | $ (152,018) | |
Term Loan And Revolving Credit Facility [Member] | |||
The Company And Basis Of Presentation [Line Items] | |||
Principal amount of debt | $ 40,000 | ||
Loan Agreement [Member] | |||
The Company And Basis Of Presentation [Line Items] | |||
Number of approved products required for interest only payment extension term | item | 3 | ||
Minimum liquidity | $ 32,900 | ||
Loan Agreement [Member] | Minimum [Member] | |||
The Company And Basis Of Presentation [Line Items] | |||
Unrestricted net cash proceeds from the issuance of equity securities and/or payments related to partnering transactions required to receive under loan agreement | $ 45,000 |
Summary Of Significant Accoun48
Summary Of Significant Accounting Policies (Narrative) (Details) $ in Thousands | Mar. 17, 2014USD ($) | Feb. 04, 2014USD ($) | Jan. 06, 2014USD ($)item | Dec. 31, 2016USD ($)segmentitem | Dec. 31, 2015USD ($) |
Summary Of Significant Accounting Policies [Line Items] | |||||
Number of operating segments | segment | 1 | ||||
Accumulated deficit | $ 185,593 | $ 152,018 | |||
Settlement of contingent liability | 3,000 | ||||
Deferred public offering costs | 20 | 189 | |||
Expense related to debt issuance costs | 108 | 129 | |||
Deferred debt issuance costs | $ 259 | 367 | |||
Number of financial institutions | item | 2 | ||||
Total assets | $ 151,406 | 147,066 | |||
Okapi Sciences NV [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Number of clinical/development stage product candidates | item | 3 | ||||
Purchase price of acquisition | $ 44,439 | ||||
Aggregate merger consideration, cash paid | 14,139 | ||||
Contingent consideration, value, high | 16,308 | ||||
Contingent consideration | 15,166 | ||||
Settlement of contingent liability | $ 15,235 | ||||
Term Loan And Revolving Credit Facility [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Interest rate | 7.41% | ||||
Expense related to debt issuance costs | $ 360 | $ 360 | |||
Promissory Note [Member] | Okapi Sciences NV [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Aggregate merger consideration, principal amount of promissory note issued | $ 15,134 | ||||
Promissory note maturity date | Dec. 31, 2014 | ||||
Interest rate | 7.00% | ||||
Payment of promissory note | $ 15,158 |
Summary Of Significant Accoun49
Summary Of Significant Accounting Policies (Estimated Useful Lives Of Property, Plant And Equipment) (Details) | 12 Months Ended |
Dec. 31, 2016 | |
Laboratory and Office Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Laboratory and Office Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 10 years |
Computer Software And Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Computer Software And Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Furniture [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Furniture [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 7 years |
Vehicles [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Vehicles [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Leasehold Improvements [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Leasehold Improvements [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 10 years |
Summary Of Significant Accoun50
Summary Of Significant Accounting Policies (Schedule Of Revenue By Geographic Region) (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 | |
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | $ 292 | $ 40 | $ 38,047 | $ 172 | $ 63 | $ 229 | $ 230 | $ 156 | $ 38,551 | $ 678 | $ 767 |
United States [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 38,318 | $ 678 | 267 | ||||||||
Belgium [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | $ 233 | $ 500 |
Summary Of Significant Accoun51
Summary Of Significant Accounting Policies (Schedule Of Long-Lived Assets By Geographic Region) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Segment Reporting Information [Line Items] | ||
Total long lived assets | $ 1,948 | $ 2,555 |
United States [Member] | ||
Segment Reporting Information [Line Items] | ||
Total long lived assets | 1,947 | 2,460 |
Belgium [Member] | ||
Segment Reporting Information [Line Items] | ||
Total long lived assets | $ 1 | $ 95 |
Fair Value Of Financial Asset52
Fair Value Of Financial Assets And Liabilities (Narrative) (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Mar. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Jan. 02, 2015 | Oct. 15, 2013 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Cash paid for contingent consideration | $ 3,000 | $ 15,166 | |||
Change in fair value of contingent consideration | (1,248) | $ (133) | |||
Vet Therapeutics Inc., [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Contingent consideration | $ 3,810 | ||||
Vet Therapeutics Inc., [Member] | AT-004 BLONTRESS [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Contingent consideration | $ 3,000 | ||||
Cash paid for contingent consideration | $ 3,000 | ||||
Change in fair value of contingent consideration | 1,248 | ||||
Contingent consideration, fair value | $ 0 |
Fair Value Of Financial Asset53
Fair Value Of Financial Assets And Liabilities (Summary Of Information About Company's Financial Assets And Liabilities Subject To Fair Value Measurement On Recurring Basis) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Assets: | ||
Short-term marketable securities - certificates of deposit | $ 996 | $ 747 |
Reverse repurchase agreements | 58,700 | |
Assets, fair value | 8,715 | 66,454 |
Carrying Value [Member] | ||
Assets: | ||
Short-term marketable securities - certificates of deposit | 996 | 747 |
Reverse repurchase agreements | 58,700 | |
Assets, fair value | 8,715 | 66,454 |
Certificates Of Deposit [Member] | ||
Assets: | ||
Cash equivalents | 7,719 | 6,972 |
Certificates Of Deposit [Member] | Carrying Value [Member] | ||
Assets: | ||
Cash equivalents | 7,719 | 6,972 |
Money Market Funds [Member] | ||
Assets: | ||
Cash equivalents | 35 | |
Money Market Funds [Member] | Carrying Value [Member] | ||
Assets: | ||
Cash equivalents | 35 | |
Level 1 [Member] | ||
Assets: | ||
Assets, fair value | 35 | |
Level 1 [Member] | Money Market Funds [Member] | ||
Assets: | ||
Cash equivalents | 35 | |
Level 2 [Member] | ||
Assets: | ||
Short-term marketable securities - certificates of deposit | 996 | 747 |
Reverse repurchase agreements | 58,700 | |
Assets, fair value | 8,715 | 66,419 |
Level 2 [Member] | Certificates Of Deposit [Member] | ||
Assets: | ||
Cash equivalents | $ 7,719 | $ 6,972 |
Fair Value Of Financial Asset54
Fair Value Of Financial Assets And Liabilities (Change In Fair Value Of Company's Contingent Consideration Payable Measured At Fair Value On Recurring Basis) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value Of Financial Assets And Liabilities [Abstract] | ||
As of January 1 | $ 4,248 | |
Cash settlement of contingent consideration earned | (3,000) | |
Derecognition of remaining contingent consideration recorded in the consolidated statement of operations (within selling, general and administrative) | (1,248) | |
As of December 31, |
Fair Value Of Financial Asset55
Fair Value Of Financial Assets And Liabilities (Carrying Amounts And Estimated Fair Value Of Company's Financial Liabilities Not Measured At Fair Value On Recurring Basis) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loan payable, Carrying Value | $ 40,188 | |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loan payable, Carrying Value | 40,188 | $ 39,710 |
Loan payable, Fair Value | $ 40,709 | $ 40,569 |
Fair Value Of Financial Asset56
Fair Value Of Financial Assets And Liabilities (Fair Value Information About Impaired Intangible Assets) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Impairment | $ 7,942,000 | $ 43,398,000 | |
Intellectual Property Rights For Currently Marketed Products [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Impairment | 5,711,000 | ||
In Process Research and Development [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Impairment | $ 0 | ||
Intellectual Property Rights Acquired For In-Process Research And Development [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Impairment | $ 2,231,000 |
Investments (Narrative) (Detail
Investments (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2016 | |
Investments [Abstract] | |
Reverse repurchase agreements, collateral securities, percentage of principal and interest required | 102.00% |
Investments (Fair Value Of Avai
Investments (Fair Value Of Available-For-Sale Marketable Securities) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 996 | $ 747 |
Gross Unrealized Gains | ||
Gross Unrealized Losses | ||
Fair Value | 996 | 747 |
Certificates Of Deposit [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 996 | 747 |
Gross Unrealized Gains | ||
Gross Unrealized Losses | ||
Fair Value | $ 996 | $ 747 |
Inventories (Narrative) (Detail
Inventories (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Inventory [Line Items] | ||||
Inventory valuation adjustment losses | $ 5,186 | |||
Research and development | 30,462 | $ 24,964 | $ 19,985 | |
Accrued loss on a firm purchase commitment | $ 1,983 | 1,983 | ||
AT-001 GALLIPRANT [Member] | ||||
Inventory [Line Items] | ||||
Finished goods and work-in-process | 9,172 | 9,172 | ||
BLONTRESS, TACTRESS and GALLIPRANT [Member] | ||||
Inventory [Line Items] | ||||
Inventory valuation adjustment losses | $ 2,532 | |||
AT-002 ENTYCE [Member] | ||||
Inventory [Line Items] | ||||
Research and development | 2,639 | |||
Manufacturing costs | $ 1,983 |
Inventories (Components Of Inve
Inventories (Components Of Inventories) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Inventories [Abstract] | ||
Raw materials | $ 1,441 | $ 120 |
Work-in-process | 8,153 | 441 |
Finished goods | 1,536 | 745 |
Total | $ 11,130 | $ 1,306 |
Property And Equipment, Net (Na
Property And Equipment, Net (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property And Equipment, Net [Abstract] | |||
Depreciation expense | $ 609 | $ 296 | $ 152 |
Gain (loss) on assets sold | $ (2) | $ 0 | $ 0 |
Property And Equipment, Net (Sc
Property And Equipment, Net (Schedule Of Property And Equipment, Net) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Total property and equipment | $ 2,868 | $ 2,985 |
Less: Accumulated depreciation and amortization | (920) | (430) |
Property and equipment, net | 1,948 | 2,555 |
Laboratory And Office Equipment [Member] | ||
Total property and equipment | 666 | 527 |
Computer Equipment And Software [Member] | ||
Total property and equipment | 2,014 | 2,039 |
Furniture [Member] | ||
Total property and equipment | 135 | 132 |
Vehicles [Member] | ||
Total property and equipment | 11 | |
Leasehold Improvements [Member] | ||
Total property and equipment | 91 | |
Construction In Procress [Member] | ||
Total property and equipment | $ 53 | $ 185 |
Goodwill (Narrative) (Details)
Goodwill (Narrative) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended |
Sep. 30, 2016USD ($) | Dec. 31, 2016segment | |
Goodwill And Intangible Assets [Abstract] | ||
Number of operating segments | 1 | |
Number of reporting units | 1 | |
Goodwill impairment loss | $ | $ 0 |
Goodwill (Summary Of Goodwill)
Goodwill (Summary Of Goodwill) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Goodwill And Intangible Assets [Abstract] | |||
Gross Carrying Value | $ 39,382 | ||
Impairment Losses | |||
Net Carrying Value | $ 39,382 | $ 39,781 | $ 41,398 |
Goodwill (Summary Of Change In
Goodwill (Summary Of Change In The Net Book Value Of Goodwill) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill And Intangible Assets [Abstract] | ||
As of January 1, | $ 39,781 | $ 41,398 |
Effect of foreign currency exchange | (399) | (1,617) |
As of December 31, | $ 39,382 | $ 39,781 |
Intangible Assets, Net (Narrati
Intangible Assets, Net (Narrative) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2016 | Jun. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Intangible Assets [Line Items] | |||||
Amortization of intangible assets | $ 379,000 | $ 1,544,000 | $ 1,891,000 | ||
Impairment | 7,942,000 | 43,398,000 | |||
Intangible assets | $ 7,639,000 | 7,639,000 | $ 15,067,000 | $ 62,323,000 | |
AT-007 [Member] | |||||
Intangible Assets [Line Items] | |||||
Impairment | $ 2,229,000 | ||||
Intangible assets | 0 | ||||
AT-004 BLONTRESS [Member] | |||||
Intangible Assets [Line Items] | |||||
Impairment | 5,162,000 | 25,390,000 | |||
Intangible assets | 0 | 0 | |||
AT-005 TACTRESS [Member] | |||||
Intangible Assets [Line Items] | |||||
Impairment | 551,000 | 9,185,000 | |||
Intangible assets | $ 0 | ||||
In Process Research and Development [Member] | |||||
Intangible Assets [Line Items] | |||||
Impairment | $ 0 | ||||
Intellectual Property Rights Acquired For In-Process Research And Development [Member] | |||||
Intangible Assets [Line Items] | |||||
Impairment charges, indefinite-lived | 16,765,000 | ||||
Impairment | $ 2,231,000 |
Intangible Assets, Net (Summary
Intangible Assets, Net (Summary Of Change In The Net Book Value Of Other Intangible Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill And Intangible Assets [Abstract] | |||
As of January 1 | $ 15,067 | $ 62,323 | |
Additions | 1,000 | ||
Amortization expense | (379) | (1,544) | $ (1,891) |
Effect of foreign currency exchange | (107) | (2,314) | |
Impairment | (7,942) | (43,398) | |
As of December 31, | $ 7,639 | $ 15,067 | $ 62,323 |
Intangible Assets, Net (Estimat
Intangible Assets, Net (Estimated Aggregate Amortization Expense Of Intangible Assets) (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Goodwill And Intangible Assets [Abstract] | |
2,017 | $ 83 |
2,018 | 83 |
2,019 | 83 |
2,020 | 83 |
2,021 | $ 83 |
Intangible Assets, Net (Summa69
Intangible Assets, Net (Summary Of Unamortized Intangible Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Intellectual Property Rights Acquired For In-Process Research And Development [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Net Carrying Value | $ 6,674 | $ 9,010 |
Intangible Assets, Net (Summa70
Intangible Assets, Net (Summary Of Amortized Intangible Assets) (Details) - Intellectual Property Rights For Currently Marketed Products [Member] $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Finite-Lived Intangible Assets [Line Items] | |
Gross carrying value | $ 39,652 |
Accumulated amortization | 38,687 |
Net carrying value | $ 965 |
Weighted average useful life | 12 years |
Derivative Financial Instrume71
Derivative Financial Instruments (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Derivative Financial Instruments [Abstract] | |
Gain on sale of common stock | $ 0 |
Derivative Financial Instrume72
Derivative Financial Instruments (Gain Recognized In Other Income (Expense)) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Warrant [Member] | ||
Derivative assets: | ||
Gain/(loss) recognized in other income/(expense) | $ 1,274 | $ 465 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) $ in Thousands | Oct. 16, 2015USD ($) | Dec. 31, 2016USD ($)item | Oct. 16, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Debt Instrument [Line Items] | |||||
Interest expense | $ 3,396 | $ 1,579 | |||
Debt issuance costs including interest expense | 556 | ||||
Expense related to debt issuance costs | 108 | 129 | |||
Interest expense | 3,396 | 1,585 | $ 1,060 | ||
Current portion-loans payable | $ 14,413 | ||||
Term Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $ 35,000 | ||||
Interest rate | 7.41% | ||||
Interest only payment term | 18 months | ||||
Principal and accrued interest payment term | 30 months | ||||
Interest only payment extension term | 1 year | ||||
Number of approved products required for interest only payment extension term | item | 5 | ||||
Final payment commitment fee percentage | 3.30% | ||||
Current portion-loans payable | $ 9,333 | ||||
Revolving Line [Member] | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $ 5,000 | ||||
Interest rate | 7.41% | ||||
Date of maturity | Oct. 16, 2017 | ||||
Termination commitment fee percentage | 3.30% | ||||
Unused capacity commitment fee percentage | 0.25% | ||||
Current portion-loans payable | $ 5,080 | ||||
Term Loan And Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 7.41% | ||||
Expense related to debt issuance costs | $ 360 | $ 360 | |||
Interest expense | $ 196 | ||||
Credit Extensions [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 6.91% | ||||
Excess interest rate over prime rate | 3.66% | ||||
Loan Agreement [Member] | |||||
Debt Instrument [Line Items] | |||||
Number of approved products required for interest only payment extension term | item | 3 | ||||
Minimum liquidity | $ 32,900 | ||||
Facility fee | $ 150 | ||||
Agency fee | $ 100 | ||||
Debt default interest rate | 4.00% | ||||
Minimum [Member] | Loan Agreement [Member] | |||||
Debt Instrument [Line Items] | |||||
Unrestricted net cash proceeds from the issuance of equity securities and/or payments related to partnering transactions required to receive under loan agreement | $ 45,000 |
Debt (Schedule Of Loan Payable
Debt (Schedule Of Loan Payable Balance) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Add: accretion of final payment and termination fees | $ 447 |
Less: unamortized debt issuance costs | (259) |
Total | 40,188 |
Term Loan [Member] | |
Principal amounts | $ 35,000 |
Interest rate | 7.41% |
Revolving Line [Member] | |
Principal amounts | $ 5,000 |
Interest rate | 7.41% |
Date of maturity | Oct. 16, 2017 |
Debt (Estimated Future Principa
Debt (Estimated Future Principal Payments Under Additional Term Loan) (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Debt [Abstract] | |
2,017 | $ 14,333 |
2,018 | 14,000 |
2,019 | 11,667 |
2,020 | |
2,021 | |
Thereafter | |
Total | $ 40,000 |
Accrued Expenses (Summary Of Ac
Accrued Expenses (Summary Of Accrued Expenses) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Accrued expenses: | ||
Payroll and related expenses | $ 2,321 | $ 1,922 |
Professional fees | 219 | 388 |
Royalty expense | 71 | 1 |
Interest expense | 247 | 238 |
Research and development costs | 364 | 1,111 |
Unbilled inventories | 465 | |
Accrued loss on a firm purchase commitment | 1,983 | |
Milestone | 17 | 500 |
Other | 140 | 87 |
Total accrued expenses | $ 5,827 | $ 4,247 |
Agreements (RaQualia Pharma Inc
Agreements (RaQualia Pharma Inc Narrative) (Details) | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2016USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2017USD ($) | Dec. 27, 2010USD ($)agreement | |
Research and Development Arrangement, Contract to Perform for Others [Line Items] | ||||||
Research and development | $ 30,462,000 | $ 24,964,000 | $ 19,985,000 | |||
RaQualia Agreements [Member] | ||||||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | ||||||
Number of license agreements | agreement | 2 | |||||
Research and development | 5,500,000 | |||||
Milestones paid | 5,000,000 | |||||
Royalty payments | 0 | |||||
Accrued royalties | $ 0 | $ 0 | ||||
RaQualia Agreements [Member] | Scenario, Forecast [Member] | ||||||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | ||||||
Milestones payable | $ 3,000,000 | |||||
AT-002 ENTYCE [Member] | ||||||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | ||||||
Research and development | $ 2,639,000 | |||||
Maximum [Member] | AT-001 GALLIPRANT [Member] | RaQualia Agreements [Member] | ||||||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | ||||||
Milestones payable | $ 7,000,000 | |||||
Maximum [Member] | AT-002 ENTYCE [Member] | RaQualia Agreements [Member] | ||||||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | ||||||
Milestones payable | $ 6,000,000 |
Agreements (Pacira Pharmaceutic
Agreements (Pacira Pharmaceuticals, Inc. Narrative) (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 05, 2012 | |
Research and Development Arrangement, Contract to Perform for Others [Line Items] | ||||
Research and development | $ 30,462,000 | $ 24,964,000 | $ 19,985,000 | |
Royalty expense | 106,000 | 84,000 | 72,000 | |
AT-003 [Member] | Pacira Agreement [Member] | ||||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | ||||
Milestones achieved | 2,000,000 | |||
Intangible assets, net | 1,000,000 | |||
Research and development | 1,000,000 | |||
Milestones paid | 2,500,000 | |||
Royalty payments | 0 | |||
Royalty expense | 29,000 | $ 0 | $ 0 | |
Accrued milestones | $ 0 | |||
AT-003 [Member] | Pacira Agreement [Member] | Minimum [Member] | ||||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | ||||
Net sales that must be met for milestone payable | $ 100,000,000 | |||
AT-003 [Member] | Pacira Agreement [Member] | Maximum [Member] | ||||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | ||||
Milestones payable | 40,000,000 | |||
Net sales that must be met for milestone payable | $ 500,000,000 |
Agreements (Elanco BLONTRESS Na
Agreements (Elanco BLONTRESS Narrative) (Details) - USD ($) $ in Thousands | Feb. 25, 2016 | Mar. 31, 2018 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Jan. 02, 2015 |
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |||||||||
Licensing revenue | $ 38,233 | $ 500 | |||||||
Current liability | 34,688 | $ 5,684 | |||||||
Cash paid for contingent consideration | 3,000 | 15,166 | |||||||
Royalty expense | 106 | 84 | 72 | ||||||
Other long-term assets | 545 | 294 | |||||||
Research and development | 30,462 | $ 24,964 | $ 19,985 | ||||||
Licensing and collaboration commitment | 7,000 | ||||||||
AT-004 BLONTRESS [Member] | Elanco Agreement [Member] | |||||||||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |||||||||
Milestone receivable | $ 3,000 | ||||||||
Licensing revenue | $ 3,000 | ||||||||
Payment for termination of license agreement | $ 3,000 | ||||||||
Current liability | $ 500 | 500 | |||||||
Cash paid for contingent consideration | 2,500 | ||||||||
Contingent consideration | $ 500 | $ 500 | |||||||
Agreement term | 2 years | ||||||||
Other long-term assets | 466 | ||||||||
Accrued milestones remaining | $ 483 | ||||||||
AT-004 BLONTRESS [Member] | Elanco Agreement [Member] | Maximum [Member] | |||||||||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |||||||||
Royalty expense | $ 500 | ||||||||
Scenario, Forecast [Member] | AT-004 BLONTRESS [Member] | Elanco Agreement [Member] | |||||||||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |||||||||
Royalty expense | $ 500 | ||||||||
Interest | 10.00% |
Agreements (Elanco GALLIPRANT N
Agreements (Elanco GALLIPRANT Narrative) (Details) - USD ($) | Apr. 22, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2016 |
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |||||
Licensing revenue | $ 38,233,000 | $ 500,000 | |||
Current liability | 34,688,000 | $ 5,684,000 | |||
Cash paid for contingent consideration | 3,000,000 | 15,166,000 | |||
Royalty expense | 106,000 | 84,000 | 72,000 | ||
Other long-term assets | 545,000 | 294,000 | |||
Research and development | 30,462,000 | $ 24,964,000 | $ 19,985,000 | ||
Licensing and collaboration commitment | 7,000,000 | ||||
AT-001 GALLIPRANT [Member] | Elanco Collaboration Agreement [Member] | |||||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |||||
Upfront nonrefundable payment received | $ 45,000,000 | ||||
Consideration recognized related to milestones | 0 | ||||
Licensing revenue | $ 38,000,000 | ||||
Percentage of third-party development fees and expenses to be paid | 25.00% | ||||
Research and development | 7,000,000 | ||||
Milestones achieved | 0 | ||||
Milestone revenue recognized | $ 0 | ||||
Licensing and collaboration commitment | $ 38,000,000 | ||||
AT-001 GALLIPRANT [Member] | Elanco Collaboration Agreement [Member] | Maximum [Member] | |||||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |||||
Research and development | $ 7,000,000 | ||||
AT-001 GALLIPRANT [Member] | Elanco Collaboration Agreement [Member] | Elanco Animal Health, Inc. [Member] | |||||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |||||
Percentage of third-party development fees and expenses to be paid | 75.00% | ||||
AT-001 GALLIPRANT [Member] | Elanco Co-Promotion Agreement [Member] | |||||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |||||
Fee for services performed and expenses incurred as a percent of gross margin to net sales | 25.00% | ||||
Regulatory And Development Milestones [Member] | AT-001 GALLIPRANT [Member] | Elanco Collaboration Agreement [Member] | |||||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |||||
Milestone receivable | $ 4,000,000 | ||||
European Approval Milestone [Member] | AT-001 GALLIPRANT [Member] | Elanco Collaboration Agreement [Member] | |||||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |||||
Milestone receivable | 4,000,000 | ||||
Sales Milestone [Member] | AT-001 GALLIPRANT [Member] | Elanco Collaboration Agreement [Member] | |||||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |||||
Milestone receivable | $ 75,000,000 | ||||
Reduction for each annual occurrence milestone is not achieved | 33.33% |
Agreements (Other Narrative) (D
Agreements (Other Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |||
Royalty expense | $ 106 | $ 84 | $ 72 |
Blontress And Tactress Agreements [Member] | AT-004 BLONTRESS [Member] | |||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |||
Royalty expense | 77 | $ 84 | $ 72 |
Blontress And Tactress Agreements [Member] | AT-004 BLONTRESS [Member] | Minimum [Member] | |||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |||
Accrued royalties | 70 | ||
Blontress And Tactress Agreements [Member] | AT-004 BLONTRESS [Member] | Maximum [Member] | |||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |||
Milestones payable | $ 405 |
Agreements (Advaxis Inc. Narrat
Agreements (Advaxis Inc. Narrative) (Details) | Mar. 19, 2014USD ($)item$ / sharesshares | May 31, 2015USD ($)shares | Apr. 30, 2015USD ($)shares | Jan. 31, 2015USD ($)shares | Dec. 31, 2016USD ($) | Dec. 31, 2014USD ($) |
Research and Development Arrangement, Contract to Perform for Others [Line Items] | ||||||
In-process research and development | $ 2,157,000 | |||||
Gain on sale of common stock | $ 0 | |||||
Advaxis Agreement [Member] | ||||||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | ||||||
Number of products | item | 3 | |||||
Number of types of cancer | item | 3 | |||||
Cash payment related to license agreement | $ 2,500,000 | |||||
Common stock acquired | shares | 306,122 | |||||
Common stock called by warrant acquired | shares | 153,061 | |||||
In-process research and development | $ 657,000 | |||||
Sale of common stock, shares | shares | 181,151 | 124,971 | ||||
Proceeds from sale of common stock | $ 2,724,000 | $ 3,233,000 | $ 1,500,000 | |||
Gain on sale of common stock | $ 341,000 | $ 2,523,000 | $ 1,010,000 | |||
Shares received from exercise of warrant | shares | 116,411 | |||||
Net share settlement exercise price | $ 750,000 | |||||
Advaxis Agreement [Member] | Common Stock [Member] | ||||||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | ||||||
Cash payment related to license agreement | 1,200,000 | |||||
Advaxis Agreement [Member] | Warrant [Member] | ||||||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | ||||||
Cash payment related to license agreement | $ 643,000 | |||||
Warrants exercisable date | Mar. 19, 2024 | |||||
Exercise price per share of additional warrants | $ / shares | $ 4.90 | |||||
Advaxis Agreement [Member] | Common Stock and Warrant [Member] | ||||||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | ||||||
Cash payment related to license agreement | $ 1,843,000 | |||||
Advaxis Agreement [Member] | Product Sales [Member] | Royalties [Member] | ||||||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | ||||||
Concentration risk percentage | 10.00% | |||||
Advaxis Agreement [Member] | Clinical Development And Regulatory Milestone [Member] | ||||||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | ||||||
Number of products | item | 4 | |||||
Milestones payable | $ 6,000,000 | |||||
Advaxis Agreement [Member] | Commercial Milestone [Member] | ||||||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | ||||||
Milestones payable | 28,500,000 | |||||
Licensed Technology [Member] | Advaxis Agreement [Member] | ||||||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | ||||||
Cash payment related to license agreement | $ 657,000 |
Agreements (Vet-Stem, Inc. Narr
Agreements (Vet-Stem, Inc. Narrative) (Details) - USD ($) | Jun. 12, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2017 |
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |||||
In-process research and development | $ 2,157,000 | ||||
Development expenses | $ 30,462,000 | $ 24,964,000 | $ 19,985,000 | ||
AT-016 [Member] | Vet-Stem Agreement [Member] | |||||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |||||
License fee | $ 500,000 | ||||
In-process research and development | 500,000 | ||||
Milestones achieved | 450,000 | $ 300,000 | |||
Milestones paid | 750,000 | ||||
Royalty payments | 0 | ||||
Accrued milestones | 0 | ||||
Accrued royalties | $ 0 | ||||
AT-016 [Member] | Vet-Stem Agreement [Member] | Maximum [Member] | |||||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |||||
Milestones payable | $ 3,750,000 | ||||
Scenario, Forecast [Member] | AT-016 [Member] | Vet-Stem Agreement [Member] | |||||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |||||
Milestones payable | $ 550,000 |
Agreements (Atopix Therapeutics
Agreements (Atopix Therapeutics Ltd. Narrative) (Details) - USD ($) | Oct. 10, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Research and Development Arrangement, Contract to Perform for Others [Line Items] | ||||
In-process research and development | $ 2,157,000 | |||
AT-018 [Member] | Atopix Agreement [Member] | ||||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | ||||
License fee | $ 1,000,000 | |||
In-process research and development | 1,000,000 | |||
Milestones paid | $ 500,000 | |||
Milestones achieved | 0 | $ 500,000 | ||
Royalty payments | 0 | |||
Accrued milestones | 0 | |||
Accrued royalties | $ 0 | |||
AT-018 [Member] | Atopix Agreement [Member] | Maximum [Member] | Clinical Development And Regulatory Milestone [Member] | ||||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | ||||
Milestones payable | $ 4,000,000 |
Agreements (Government And Othe
Agreements (Government And Other Incentive Programs Narrative) (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Government And Other Incentive Programs [Member] | |
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |
Incentive program, potential obligation to repay if certain criteria are not met | $ 652 |
Common Stock (Narrative) (Detai
Common Stock (Narrative) (Details) | Oct. 16, 2015USD ($) | Sep. 22, 2014USD ($)$ / sharesshares | Feb. 03, 2014USD ($)$ / sharesshares | Dec. 31, 2016USD ($)$ / sharesitemshares | Dec. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2014USD ($) | Jul. 03, 2013shares | Jul. 02, 2013$ / sharesshares | Feb. 28, 2013shares |
Class of Stock [Line Items] | |||||||||
Common stock outstanding, shares | shares | 36,607,922 | 34,563,816 | |||||||
Common stock, shares authorized | shares | 100,000,000 | 100,000,000 | 100,000,000 | 25,041,667 | 25,041,667 | ||||
Common stock, par value | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | ||||||
Number of votes for each share of common stock | item | 1 | ||||||||
Dividends declared | $ 0 | $ 0 | |||||||
Stock repurchased | shares | 0 | 0 | |||||||
Issuance of preferred/common stock, net of issuance cost, shares | shares | 5,175,000 | 5,150,000 | |||||||
Share issue price | $ / shares | $ 9.25 | $ 19 | |||||||
Underwriting discount and commission | $ 2,872,000 | $ 5,871,000 | |||||||
Offering expenses | 412,000 | 1,472,000 | |||||||
Issuance of common stock private investment in public entity | 44,827,000 | 90,507,000 | $ 14,587,000 | $ 137,220,000 | |||||
Net proceeds from public offering | $ 44,827,000 | $ 90,507,000 | $ 14,587,000 | $ 137,220,000 | |||||
Aggregate common stock available to sell | $ 52,000,000 | ||||||||
Percentage of commission on gross proceeds from sale of shares | 2.75% | ||||||||
Shares sold | shares | 1,629,408 | ||||||||
Proceeds from shares sold under sales agreement | $ 14,587,000 | ||||||||
Remaining shares authorized amount under sales agreement | $ 37,000,000 | ||||||||
Unvested Restricted Stock [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Common stock outstanding, shares | shares | 461,901 | 441,800 |
Stock-Based Awards (Narrative)
Stock-Based Awards (Narrative) (Details) | Jan. 01, 2017shares | Dec. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2014USD ($)$ / sharesitemshares | Dec. 31, 2013shares | Dec. 31, 2016USD ($)shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Early exercise, shares repurchased | shares | 0 | 0 | ||||
Proceeds from stock options exercises | $ | $ 138,000 | $ 312,000 | $ 225,000 | |||
Stock Option [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unrecognized stock-based compensation expense for options outstanding | $ | $ 6,727,000 | $ 6,727,000 | ||||
Unrecognized stock-based compensation expense, recognition period | 2 years 15 days | |||||
Restricted Stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unrecognized stock-based compensation expense, other than options | $ | $ 2,449,000 | $ 2,449,000 | ||||
Unrecognized stock-based compensation expense, other than options, recognition period | 1 year 5 months 27 days | |||||
2010 Equity Incentive Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award, expiration period | 10 years | |||||
Shares available for future grant | shares | 0 | |||||
Number of awards subject to modification | item | 3 | |||||
Incremental expense for stock option awards | $ | $ 327,000 | |||||
Incremental expense for restricted stock award | $ | $ 649,000 | |||||
2010 Equity Incentive Plan [Member] | Stock Option [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Early exercise, shares repurchased | shares | 0 | 0 | ||||
Stock options granted | shares | 0 | 0 | 0 | |||
Aggregate intrinsic value of options exercised | $ | $ 180,000 | $ 786,000 | $ 871,000 | |||
Fair value stock awards, vested | $ | 209,000 | 140,000 | 765,000 | |||
Proceeds from stock options exercises | $ | $ 9,000 | 25,000 | 19,000 | |||
2010 Equity Incentive Plan [Member] | Restricted Stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unvested shares of common stock issued from early exercised options | shares | 438 | |||||
Restricted stock granted | shares | 0 | |||||
Weighted average grant date fair value, grants | $ / shares | ||||||
Fair value stock awards, vested, other than options | $ | $ 212,000 | $ 731,000 | $ 2,615,000 | |||
Unvested, other than options | shares | 0 | 37,078 | 91,334 | 0 | ||
Unrecognized stock-based compensation expense, other than options | $ | $ 0 | $ 30,000 | $ 0 | |||
2013 Incentive Award Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares authorized for issuance | shares | 4,425,667 | |||||
Percentage increase of shares | 4.00% | |||||
Award, expiration period | 10 years | |||||
Shares available for future grant | shares | 847,103 | 847,103 | ||||
2013 Incentive Award Plan [Member] | Stock Option [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock options granted | shares | 849,933 | |||||
Weighted average grant date fair value of options granted | $ / shares | $ 2.99 | $ 10.09 | $ 12.84 | |||
Aggregate intrinsic value of options exercised | $ | $ 38,000 | $ 267,000 | $ 214,000 | |||
Fair value stock awards, vested | $ | 5,380,000 | 5,660,000 | 1,888,000 | |||
Proceeds from stock options exercises | $ | $ 129,000 | $ 287,000 | $ 206,000 | |||
2013 Incentive Award Plan [Member] | Stock Option [Member] | Certain Employees And Non-Employee Directors [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award, expiration period | 10 years | |||||
Stock options granted | shares | 849,933 | |||||
2013 Incentive Award Plan [Member] | Stock Option [Member] | Certain Employees And Non-Employee Directors [Member] | Share-based Compensation Award, Tranche One [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting percentage | 25.00% | |||||
Vesting period | 1 year | |||||
2013 Incentive Award Plan [Member] | Stock Option [Member] | Certain Employees And Non-Employee Directors [Member] | Share-based Compensation Award, Tranche Two [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 36 months | |||||
2013 Incentive Award Plan [Member] | Restricted Stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Restricted stock granted | shares | 448,317 | |||||
Weighted average grant date fair value, grants | $ / shares | $ 3.95 | $ 17.14 | $ 16.73 | |||
Fair value stock awards, vested, other than options | $ | $ 1,559,000 | $ 1,893,000 | $ 94,000 | |||
Unvested, other than options | shares | 461,463 | 333,263 | 461,463 | |||
Proceeds from the issuance of restricted stock | $ | $ 0 | $ 0 | $ 0 | |||
2013 Incentive Award Plan [Member] | Restricted Stock [Member] | Executives And Non-Executives [Member] | Share-based Compensation Award, Tranche One [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting percentage | 33.30% | |||||
Vesting period | 3 years | |||||
2013 Incentive Award Plan [Member] | Restricted Stock [Member] | Executives [Member] | Share-based Compensation Award, Tranche One [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting percentage | 8.33% | |||||
Vesting period | 3 years | |||||
Maximum [Member] | 2013 Incentive Award Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Maximum increase in shares authorized | shares | 1,203,369 | |||||
Maximum [Member] | 2013 Incentive Award Plan [Member] | Restricted Stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 4 years | |||||
Subsequent Event [Member] | 2013 Incentive Award Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Annual increase in shares | shares | 1,203,369 |
Stock-Based Awards (Summary Of
Stock-Based Awards (Summary Of Stock Option Activity) (Details) - Stock Option [Member] - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
2010 Equity Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares Issuable Under Options, Outstanding as of December 31, 2015 | 86,490 | |||
Shares Issuable Under Options, Granted | 0 | 0 | 0 | |
Shares Issuable Under Options, Exercised | (20,559) | |||
Shares Issuable Under Options, Forfeited | ||||
Shares Issuable Under Options, Expired | ||||
Shares Issuable Under Options, Outstanding as of December 31, 2016 | 65,931 | 86,490 | ||
Shares Issuable Under Options, Options vested and expected to vest as of December 31, 2016 | 65,864 | |||
Shares Issuable Under Options, Options exercisable as of December 31, 2016 | 65,838 | |||
Weighted Average Exercise Price, Outstanding as of December 31, 2015 | $ 2.95 | |||
Weighted Average Exercise Price, Granted | ||||
Weighted Average Exercise Price, Exercised | 0.44 | |||
Weighted Average Exercise Price, Forfeited | ||||
Weighted Average Exercise Price, Expired | ||||
Weighted Average Exercise Price, Outstanding as of December 31, 2016 | 3.73 | $ 2.95 | ||
Weighted Average Exercise Price, Options vested and expected to vest as of December 31, 2016 | 3.72 | |||
Weighted Average Exercise Price, Options exercisable as of September 30, 2016 | $ 3.72 | |||
Weighted Average Remaining Contractual Term, Outstanding | 6 years 1 month 2 days | 7 years 1 month 2 days | ||
Weighted Average Remaining Contractual Term, Options vested and expected | 6 years 1 month 2 days | |||
Weighted Average Remaining Contractual Term, Options exercisable | 6 years 1 month 2 days | |||
Aggregate Intrinsic Value, Outstanding | $ 228 | $ 228 | ||
Aggregate Intrinsic Value, Options vested and expected | 228 | |||
Aggregate Intrinsic Value, Options exercisable | $ 224 | |||
2013 Incentive Award Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares Issuable Under Options, Outstanding as of December 31, 2015 | 1,728,199 | |||
Shares Issuable Under Options, Granted | 849,933 | |||
Shares Issuable Under Options, Exercised | (21,559) | |||
Shares Issuable Under Options, Forfeited | (190,544) | |||
Shares Issuable Under Options, Expired | (114,511) | |||
Shares Issuable Under Options, Outstanding as of December 31, 2016 | 2,251,518 | 1,728,199 | ||
Shares Issuable Under Options, Options vested and expected to vest as of December 31, 2016 | 2,147,006 | |||
Shares Issuable Under Options, Options exercisable as of December 31, 2016 | 1,022,698 | |||
Weighted Average Exercise Price, Outstanding as of December 31, 2015 | $ 16.57 | |||
Weighted Average Exercise Price, Granted | 4.47 | |||
Weighted Average Exercise Price, Exercised | 6 | |||
Weighted Average Exercise Price, Forfeited | 11.84 | |||
Weighted Average Exercise Price, Expired | 18.09 | |||
Weighted Average Exercise Price, Outstanding as of December 31, 2016 | 12.43 | $ 16.57 | ||
Weighted Average Exercise Price, Options vested and expected to vest as of December 31, 2016 | 12.60 | |||
Weighted Average Exercise Price, Options exercisable as of September 30, 2016 | $ 16.43 | |||
Weighted Average Remaining Contractual Term, Outstanding | 7 years 9 months 11 days | 8 years 3 months 22 days | ||
Weighted Average Remaining Contractual Term, Options vested and expected | 7 years 9 months 11 days | |||
Weighted Average Remaining Contractual Term, Options exercisable | 6 years 8 months 23 days | |||
Aggregate Intrinsic Value, Outstanding | $ 2,261 | |||
Aggregate Intrinsic Value, Options vested and expected | 2,142 | |||
Aggregate Intrinsic Value, Options exercisable | $ 176 |
Stock-Based Awards (Summary O89
Stock-Based Awards (Summary Of Restricted Stock Activity) (Details) - Restricted Stock [Member] - $ / shares | 12 Months Ended | 48 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2016 | |
2010 Equity Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unvested restricted common stock as of December 31, 2015, Share | 37,078 | 91,334 | ||
Issued, Shares | 0 | |||
Vested, Shares | (37,078) | |||
Forfeited, Shares | ||||
Unvested restricted common stock as of December 31, 2016, Shares | 0 | 37,078 | 91,334 | 0 |
Unvested restricted common stock as of December 31, 2015, Weighted Average Grant Date Fair Value | $ 0.36 | |||
Issued, Weighted Average Grant Date Fair Value | ||||
Vested, Weighted Average Grant Date Fair Value | 0.36 | |||
Forfeited, Weighted Average Grant Date Fair Value | ||||
Unvested restricted common stock as of December 31, 2016, Weighted Average Grant Date Fair Value | $ 0.36 | |||
2013 Incentive Award Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unvested restricted common stock as of December 31, 2015, Share | 333,263 | |||
Issued, Shares | 448,317 | |||
Vested, Shares | (264,481) | |||
Forfeited, Shares | (55,636) | |||
Unvested restricted common stock as of December 31, 2016, Shares | 461,463 | 333,263 | 461,463 | |
Unvested restricted common stock as of December 31, 2015, Weighted Average Grant Date Fair Value | $ 17.77 | |||
Issued, Weighted Average Grant Date Fair Value | 3.95 | $ 17.14 | $ 16.73 | |
Vested, Weighted Average Grant Date Fair Value | 13.04 | |||
Forfeited, Weighted Average Grant Date Fair Value | 7.38 | |||
Unvested restricted common stock as of December 31, 2016, Weighted Average Grant Date Fair Value | $ 8.30 | $ 17.77 | $ 8.30 |
Stock-Based Awards (Data Used T
Stock-Based Awards (Data Used To Determine Value Of Stock Option Grants) (Details) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Stock-Based Awards [Abstract] | |||
Risk-free interest rate | 1.52% | 1.38% | 1.88% |
Expected term (in years) | 6 years 2 months 12 days | 6 years 1 month 6 days | 6 years 1 month 6 days |
Expected volatility | 77.00% | 70.00% | 84.00% |
Expected dividend yield |
Stock-Based Awards (Summary O91
Stock-Based Awards (Summary Of Stock-Based Compensation Expense Related To Stock Options And Restricted Stock) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expense | $ 8,476 | $ 8,592 | $ 7,130 |
Research and Development [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expense | 1,069 | 1,646 | 1,611 |
Cost of Product Sales and Inventories [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expense | 116 | 118 | 48 |
Selling, General and Administrative [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expense | $ 7,291 | $ 6,828 | $ 5,471 |
Net Loss Per Share (Narrative)
Net Loss Per Share (Narrative) (Details) - shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Net Loss Per Share [Abstract] | |||
Common stock excluded from diluted net loss per share | 2,317,449 | 1,814,689 | 1,789,305 |
Net Loss Per Share (Schedule Of
Net Loss Per Share (Schedule Of Basic And Diluted Net Loss Per Share Attributable To Common Stockholders) (Details) - USD ($) $ / shares in Units, $ 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 | |
Numerator: | |||||||||||
Net loss | $ (23,333) | $ (13,371) | $ 21,176 | $ (18,067) | $ (33,575) | $ (84,054) | $ (38,816) | ||||
Denominator: | |||||||||||
Weighted average shares outstanding – basic | 36,571,927 | 35,092,686 | 34,762,533 | 34,653,479 | |||||||
Weighted average shares outstanding – diluted | 36,571,927 | 35,092,686 | 34,938,455 | 34,653,479 | |||||||
Weighted average shares outstanding, basic and diluted | 34,540,001 | 34,405,646 | 34,278,105 | 34,193,994 | 35,273,228 | 34,355,525 | 29,767,429 | ||||
Net loss per share, basic and diluted | $ (0.64) | $ (0.38) | $ 0.61 | $ (0.52) | $ (0.37) | $ (1.58) | $ (0.23) | $ (0.26) | $ (0.95) | $ (2.45) | $ (1.30) |
Commitments And Contingencies94
Commitments And Contingencies (Narrative) (Details) $ in Thousands | Feb. 27, 2017lawsuititem | Feb. 06, 2017lawsuititem | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Commitments And Contingencies [Line Items] | |||||
Rent expense | $ | $ 726 | $ 678 | $ 565 | ||
Subsequent Event [Member] | Class Action Lawsuit One [Member] | |||||
Commitments And Contingencies [Line Items] | |||||
Number of lawsuits | lawsuit | 1 | ||||
Subsequent Event [Member] | Class Action Lawsuit Two [Member] | |||||
Commitments And Contingencies [Line Items] | |||||
Number of lawsuits | lawsuit | 1 | ||||
Subsequent Event [Member] | Officers [Member] | Class Action Lawsuit One [Member] | |||||
Commitments And Contingencies [Line Items] | |||||
Number of individuals named | item | 2 | ||||
Subsequent Event [Member] | Officers [Member] | Class Action Lawsuit Two [Member] | |||||
Commitments And Contingencies [Line Items] | |||||
Number of individuals named | item | 2 |
Commitments And Contingencies95
Commitments And Contingencies (Future Minimum Lease Payments For Operating Leases) (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Commitments And Contingencies [Abstract] | |
2,017 | $ 663 |
2,018 | 676 |
2,019 | 681 |
2,020 | 697 |
2,021 | 201 |
Total | $ 2,918 |
Business Combinations (Narrativ
Business Combinations (Narrative) (Details) $ in Thousands | Mar. 05, 2015USD ($) | Mar. 17, 2014USD ($) | Feb. 04, 2014USD ($) | Jan. 06, 2014USD ($)item | Oct. 15, 2013USD ($)shares | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) |
Business Acquisition [Line Items] | |||||||||||||||||
Number of clinical/development state product candidates | item | 3 | ||||||||||||||||
Settlement of contingent liability | $ 3,000 | ||||||||||||||||
Selling, general and administrative | 27,342 | 19,819 | $ 17,938 | ||||||||||||||
Total revenues | $ 292 | $ 40 | $ 38,047 | $ 172 | $ 63 | $ 229 | $ 230 | $ 156 | 38,551 | 678 | 767 | ||||||
Impairment | 7,942 | 43,398 | |||||||||||||||
Loss before income taxes | $ (33,575) | $ (85,752) | (40,259) | ||||||||||||||
Okapi Sciences NV [Member] | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Acquisition date | Jan. 6, 2014 | ||||||||||||||||
Purchase price of acquisition | $ 44,439 | ||||||||||||||||
Aggregate merger consideration, cash paid | 14,139 | ||||||||||||||||
Contingent consideration, value, high | 16,308 | ||||||||||||||||
Estimated fair value | 15,166 | ||||||||||||||||
Settlement of contingent liability | $ 15,235 | ||||||||||||||||
Total revenues | 452 | ||||||||||||||||
Okapi Sciences NV [Member] | Acquisition-related Costs [Member] | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Loss before income taxes | 440 | ||||||||||||||||
Okapi Sciences NV [Member] | Restatement Adjustment [Member] | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Selling, general and administrative | $ 69 | ||||||||||||||||
Okapi Sciences NV [Member] | Promissory Note [Member] | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Aggregate merger consideration, principal amount of promissory note issued | $ 15,134 | ||||||||||||||||
Promissory note maturity date | Dec. 31, 2014 | ||||||||||||||||
Payment of promissory note | $ 15,158 | ||||||||||||||||
Debt Instrument interest rate percentage | 7.00% | ||||||||||||||||
Vet Therapeutics Inc., [Member] | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Acquisition date | Oct. 15, 2013 | ||||||||||||||||
Purchase price of acquisition | $ 51,515 | ||||||||||||||||
Aggregate merger consideration, cash paid | 30,005 | ||||||||||||||||
Contingent consideration, value, high | 5,000 | ||||||||||||||||
Estimated fair value | $ 3,810 | ||||||||||||||||
Settlement of contingent liability | $ 3,000 | ||||||||||||||||
Total revenues | $ 273 | $ 123 | |||||||||||||||
Aggregate merger consideration, shares issued/issuable | shares | 624,997 | ||||||||||||||||
Aggregate merger consideration, value of shares issued | $ 14,700 | ||||||||||||||||
Vet Therapeutics Inc., [Member] | Restatement Adjustment [Member] | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Selling, general and administrative | $ (1,248) | ||||||||||||||||
Vet Therapeutics Inc., [Member] | Promissory Note [Member] | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Aggregate merger consideration, principal amount of promissory note issued | $ 3,000 | ||||||||||||||||
Promissory note maturity date | Dec. 31, 2014 | ||||||||||||||||
Payment of promissory note | $ 3,020 | ||||||||||||||||
Debt Instrument interest rate percentage | 7.00% |
Business Combinations (Summary
Business Combinations (Summary Of Proforma Financial Information - Okapi Sciences NV) (Details) - Okapi Sciences NV And Vet Therapeutics [Member] $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($)$ / shares | |
Business Acquisition [Line Items] | |
Revenue | $ 767 |
Loss from operations | (41,314) |
Loss before income taxes | $ (39,979) |
Net loss per share before income taxes, basic and diluted | $ / shares | $ (1.34) |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Jan. 06, 2014 | |
Income Taxes [Line Items] | ||||
Deferred tax benefit | $ 1,698 | |||
Income tax benefit | 1,698 | $ 1,443 | ||
Unrecognized tax benefits | $ 0 | 0 | ||
Accrued interest or penalities related to uncertain tax position | 0 | 0 | ||
Recognized accrued or interest or penalities | $ 0 | $ 0 | ||
Okapi Sciences NV [Member] | ||||
Income Taxes [Line Items] | ||||
Deferred tax liabilities recognized | $ 3,786 | |||
Research and Development [Member] | ||||
Income Taxes [Line Items] | ||||
Tax credit carryforward, expiration | Dec. 31, 2031 | |||
Excess tax deducation capitalized | $ 4,038 | |||
Amortization period | 15 years | |||
Federal [Member] | ||||
Income Taxes [Line Items] | ||||
Net operating loss carryforwards | $ 52,091 | |||
Operating loss carryforward, expiration | Dec. 31, 2031 | |||
Federal [Member] | Research and Development [Member] | ||||
Income Taxes [Line Items] | ||||
Tax credit carryforwards | $ 2,357 | |||
State And Local Jurisdiction [Member] | ||||
Income Taxes [Line Items] | ||||
Net operating loss carryforwards | $ 48,834 | |||
Operating loss carryforward, expiration | Dec. 31, 2020 | |||
State And Local Jurisdiction [Member] | Research and Development [Member] | ||||
Income Taxes [Line Items] | ||||
Tax credit carryforwards | $ 967 | |||
Federal And State [Member] | ||||
Income Taxes [Line Items] | ||||
Net operating loss carryforwards | 1,465 | |||
Foreign Tax Authority [Member] | ||||
Income Taxes [Line Items] | ||||
Net operating loss carryforwards | $ 23,413 |
Income Taxes (Components Of Inc
Income Taxes (Components Of Income From Continuing Operations Before Income Taxes Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Taxes [Abstract] | |||
United States | $ (29,959) | $ (65,481) | $ (34,256) |
Non-United States | (3,616) | (20,271) | (6,003) |
Loss from continuing operations | $ (33,575) | $ (85,752) | $ (40,259) |
Income Taxes (Components Of 100
Income Taxes (Components Of Income Tax Benefit From Operations) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Current: | |||
Federal | |||
State | |||
Deferred: | |||
Federal | |||
State | |||
Foreign | 1,698 | 1,443 | |
Total | $ 1,698 | $ 1,443 |
Income Taxes (Reconciliation Of
Income Taxes (Reconciliation Of U.S. Federal Statutory Income Tax Rate To Effective Income Tax Rate) (Details) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Taxes [Abstract] | |||
Federal statutory income tax rate | 34.00% | 34.00% | 34.00% |
State income taxes, net of federal tax benefit | 3.20% | 2.50% | 1.10% |
Non-deductible expenses | (1.30%) | (1.10%) | (3.00%) |
Research credits | 5.00% | 0.40% | 0.80% |
Losses benefitted/(not benefitted) | (40.90%) | (33.80%) | (29.30%) |
Total | 0.00% | 2.00% | 3.60% |
Income Taxes (Net Deferred Tax
Income Taxes (Net Deferred Tax Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Income Taxes [Abstract] | ||||
Net operating loss carry forwards | $ 27,244 | $ 26,670 | $ 12,196 | |
Capitalized start-up costs | 5,990 | 6,645 | 7,151 | |
Tax credit carryforwards | 2,996 | 1,308 | 1,062 | |
Intangibles, net | 2,072 | |||
Capitalized research and development, net | 10,005 | 11,911 | 10,378 | |
Other temporary differences | 7,940 | 3,451 | 1,469 | |
Total deferred tax assets | 56,247 | 49,985 | 32,256 | |
Valuation allowance | (56,116) | (46,885) | (14,747) | $ (3,118) |
Net deferred tax assets | 131 | 3,100 | 17,509 | |
Intangibles, net | (3,041) | (19,356) | ||
Depreciation | (131) | (59) | (18) | |
Total deferred tax liabilities | $ (131) | $ (3,100) | (19,374) | |
Net deferred tax liability | $ (1,865) |
Income Taxes (Changes In Valuat
Income Taxes (Changes In Valuation Allowance For Deferred Tax Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Taxes [Abstract] | |||
Valuation allowance as of beginning of year | $ 46,885 | $ 14,747 | $ 3,118 |
Increases due to acquisitions | 271 | ||
Increases due to operations | 9,231 | 32,138 | 11,358 |
Valuation allowance as of end of year | $ 56,116 | $ 46,885 | $ 14,747 |
Variable Interest Entity (Narra
Variable Interest Entity (Narrative) (Details) - ViroVet [Member] € in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2016USD ($) | Aug. 31, 2016USD ($) | Sep. 15, 2015EUR (€) | Sep. 15, 2015USD ($) | Jul. 31, 2015USD ($) | |
Variable Interest Entity [Line Items] | |||||
Ownership interest paid | $ 2 | ||||
Committed investment | $ 4 | ||||
Gain on deconsolidation | $ 276 | ||||
Ownership interest | 20.00% | ||||
Convertible Loan Agreement [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Convertible loans | € 300 | $ 335 | |||
Interest rate | 7.00% | 7.00% |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
MPM Asset Management, LLC [Member] | |||
Related Party Transaction [Line Items] | |||
Rent paid | $ 50 | $ 67 | |
Agreement period start date | Feb. 9, 2013 | ||
Agreement period end date | Dec. 31, 2013 | ||
Rent and service charges | 60 | ||
MPM Heartland House, LLC [Member] | |||
Related Party Transaction [Line Items] | |||
Rent paid | 131 | 113 | |
Rent and service charges | $ 33 | $ 33 |
Selected Quarterly Financial106
Selected Quarterly Financial Data (Schedule Of Selected Quarterly Financial Data) (Details) - USD ($) $ / shares in Units, $ 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 | Dec. 31, 2013 | |
Net revenues | $ 292 | $ 40 | $ 38,047 | $ 172 | $ 63 | $ 229 | $ 230 | $ 156 | $ 38,551 | $ 678 | $ 767 | |
Gross profit | (801) | (246) | 36,306 | 153 | 55 | 91 | 121 | 46 | ||||
Net income (loss) | (23,333) | (13,371) | 21,196 | (18,067) | $ (12,855) | $ (54,442) | $ (7,983) | $ (8,774) | ||||
Net income attributable to participating securities | (20) | |||||||||||
Net loss | $ (23,333) | $ (13,371) | $ 21,176 | $ (18,067) | $ (33,575) | $ (84,054) | $ (38,816) | |||||
Weighted average shares outstanding, basic | 36,571,927 | 35,092,686 | 34,762,533 | 34,653,479 | ||||||||
Weighted average shares outstanding, diluted | 36,571,927 | 35,092,686 | 34,938,455 | 34,653,479 | ||||||||
Weighted average shares outstanding, basic and diluted | 34,540,001 | 34,405,646 | 34,278,105 | 34,193,994 | 35,273,228 | 34,355,525 | 29,767,429 | |||||
Net income (loss) per share, basic and diluted | $ (0.64) | $ (0.38) | $ 0.61 | $ (0.52) | $ (0.37) | $ (1.58) | $ (0.23) | $ (0.26) | $ (0.95) | $ (2.45) | $ (1.30) | |
Vet Therapeutics Inc., [Member] | ||||||||||||
Net revenues | $ 273 | $ 123 |