Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Aug. 01, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
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 | |
Trading Symbol | petx | |
Entity Common Stock, Shares Outstanding | 43,001,799 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 78,823 | $ 87,307 |
Short-term investments | 1,494 | 996 |
Accounts receivable, net | 4,893 | 87 |
Inventories | 6,961 | 11,130 |
Prepaid expenses and other current assets | 6,605 | 2,022 |
Total current assets | 98,776 | 101,542 |
Property and equipment, net | 1,503 | 1,948 |
Goodwill | 40,500 | 39,382 |
Intangible assets, net | 11,033 | 7,639 |
Restricted cash | 350 | 350 |
Other long-term assets | 555 | 545 |
Total assets | 152,717 | 151,406 |
Current liabilities: | ||
Accounts payable | 1,902 | 7,436 |
Accrued expenses | 5,602 | 5,827 |
Licensing and collaboration commitment | 7,000 | 7,000 |
Current portion – loans payable | 8,797 | 14,413 |
Other current liabilities | 12 | |
Total current liabilities | 23,301 | 34,688 |
Loans payable, net | 29,296 | 25,775 |
Other long-term liabilities | 72 | 540 |
Total liabilities | 52,669 | 61,003 |
Commitments and contingencies (Notes 4 and 15) | ||
Stockholders' equity: | ||
Common stock, $0.001 par value; 100,000,000 shares authorized at June 30, 2017 and December 31, 2016, 42,402,677 and 36,607,922 issued and outstanding at June 30, 2017 and December 31, 2016, respectively | 42 | 37 |
Treasury stock | (1,099) | (1,088) |
Additional paid-in capital | 318,044 | 286,909 |
Accumulated deficit | (208,798) | (185,593) |
Accumulated other comprehensive loss | (8,141) | (9,862) |
Total stockholders' equity | 100,048 | 90,403 |
Total liabilities and stockholders' equity | $ 152,717 | $ 151,406 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2017 | Dec. 31, 2016 |
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 | 42,402,677 | 36,607,922 |
Common stock, shares outstanding | 42,402,677 | 36,607,922 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Revenues | ||||
Licensing and collaboration revenue | $ 804 | $ 38,000 | $ 1,707 | $ 38,151 |
Product sales | 4,354 | 47 | 7,246 | 68 |
Total revenues | 5,158 | 38,047 | 8,953 | 38,219 |
Costs and expenses | ||||
Cost of product sales | 3,691 | 1,741 | 6,785 | 1,760 |
Royalty expense | 353 | 20 | 676 | 38 |
Research and development | 3,700 | 5,303 | 8,354 | 16,052 |
Selling, general and administrative | 6,918 | 6,148 | 14,413 | 12,699 |
Amortization of intangible assets | 86 | 95 | 150 | 190 |
Impairment of intangible assets | 2,780 | 2,780 | ||
Total costs and expenses | 14,748 | 16,087 | 30,378 | 33,519 |
Income (loss) from operations | (9,590) | 21,960 | (21,425) | 4,700 |
Other income (expense) | ||||
Interest income | 88 | 83 | 173 | 160 |
Interest expense | (871) | (846) | (1,731) | (1,695) |
Other expense, net | (7) | (1) | (9) | (36) |
Total other expense | (790) | (764) | (1,567) | (1,571) |
Net income (loss) | (10,380) | 21,196 | (22,992) | 3,129 |
Net income attributable to participating securities | (20) | (3) | ||
Net income (loss) attributable to common stockholders | $ (10,380) | $ 21,176 | $ (22,992) | $ 3,126 |
Net income (loss) per share attributable to common stockholders: | ||||
Net loss per share, basic and diluted | $ (0.26) | $ 0.61 | $ (0.60) | $ 0.09 |
Weighted average shares outstanding, basic | 40,206,042 | 34,762,533 | 38,486,329 | 34,708,006 |
Weighted average shares outstanding, diluted | 40,206,042 | 34,938,455 | 38,486,329 | 34,779,786 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Consolidated Statements Of Comprehensive Income (Loss) [Abstract] | ||||
Net income (loss) | $ (10,380) | $ 21,196 | $ (22,992) | $ 3,129 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustment | 1,422 | (704) | 1,721 | 473 |
Other comprehensive income (loss) | 1,422 | (704) | 1,721 | 473 |
Comprehensive income (loss) | $ (8,958) | $ 20,492 | $ (21,271) | $ 3,602 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Cash flows from operating activities | ||
Net income (loss) | $ (22,992) | $ 3,129 |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Stock-based compensation expense | 3,658 | 4,449 |
Depreciation and amortization expense | 605 | 493 |
Impairment of intangible assets | 2,780 | |
Non-cash interest expense | 237 | 239 |
Market value adjustments to inventories | 1,552 | |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | (4,806) | 43 |
Inventories | 4,169 | (2,812) |
Prepaid expenses and other current assets | (4,582) | (101) |
Other assets | 33 | 17 |
Accounts payable | (5,535) | 5,874 |
Accrued expenses and other liabilities | (709) | 624 |
Licensing and collaboration commitment | 7,000 | |
Net cash provided by (used in) operating activities | (29,922) | 23,287 |
Cash flows from investing activities | ||
Milestone payments for intangible assets | (3,000) | |
Purchases of property and equipment, net | (11) | (19) |
Purchase of investments | (1,988) | (227,346) |
Proceeds from maturities of investments | 1,490 | 286,046 |
Net cash provided by (used in) investing activities | (3,509) | 58,681 |
Cash flows from financing activities | ||
Taxes paid for awards vested under equity incentive plans | (11) | |
Proceeds from stock option exercises | 152 | 1 |
Proceeds from issuance of common stock, net of commission | 27,462 | |
Payments for common stock issuance costs | (345) | |
Payments on loans payable | (2,332) | |
Net cash provided by financing activities | 24,926 | 1 |
Effect of exchange rate on cash | 21 | 35 |
Net increase (decrease) in cash and cash equivalents | (8,484) | 82,004 |
Cash, cash equivalents and restricted cash, beginning of period | 87,657 | 27,105 |
Cash, cash equivalents and restricted cash, end of period | 79,173 | 109,109 |
Supplemental disclosure of cash flow information | ||
Cash paid for interest | $ 1,499 | $ 1,447 |
Summary Of Significant Accounti
Summary Of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2017 | |
Summary Of Significant Accounting Policies [Abstract] | |
Summary Of Significant Accounting Policies | 1. Summary of Significant Accounting Policies Business Overview Aratana Therapeutics, Inc., including its subsidiaries (the “Company” or “Aratana”) was incorporated on December 1, 2010 under the laws of the State of Delaware. T he Company is a pet therapeutics company focused on licensing, developing and commercializing innovative therapeutics for dogs and cats. The Company has one operating segment: pet therapeutics. Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with U nited S tates generally accepted accounting principles (“GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements of the Company for the year ended December 31, 2016 and the notes thereto in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 14, 2017. In the opinion of management, all adjustments, consisting of a normal and recurring nature, considered necessary for a fair presentation, have been included. The Company has incurred recurring losses and negative cash flows from operations and has an accumulated deficit of $208,798 as of June 30, 2017 . 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 will be sufficient to fund operations and debt obligations f or at least one year from the issuance of the se consolidated financial statements. The Company expects to continue to incur operating losses for the next several years as it works to develop and commercialize its therapeutics and therapeutic candida tes. If the Company cannot generate sufficient cash from operations in the future, it may seek to fund its operations through collaborations and licensing arrangements, as well as public or private equity offerings or further debt (re)financings. 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. As disclosed i n Note 7 t o the consolidated financial statements, the Company has a term loan and a revolving credit facility with an aggregate principa l balance of $37,667 as of June 30, 2017 . 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 balance 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 June 30, 2017 , was approximately $ 22,523 . If the minimum liquidity covenant is not met, the Company may be required to repay the loans prior to their scheduled maturity dates. At June 30, 2017 , the Company was in compliance with all financial covenants. Consolidation The Company’s consolidated financial statements include its financial statements and those of its wholly-owned subsidiaries and a consolidated variable interest entity (“VIE”) through the deconsolidation date in December 2016. 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 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. 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. Property and Equipment, net Property and equipment is recorded at historical cost, net of accumulated depreciation and amortization of $1,378 and $920 as of June 30, 2017 and December 31, 2016 , respectively. 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. 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 consolidated financial statements. The timing of revenue recognition for variable consideration under the Company’s 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 such consideration exists, whether it should be estimated and recognized earlier than under the current revenue guidance. Inventory In July 2015, the FASB issued guidance that 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 using a prospective basis. The Company adopted this guidance on January 1, 2017, and the adoption did not have a material impact on its consolidated financial statements. Leases In February 2016, the FASB issued guidance that 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 using a modified retrospective method. 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 adopted this guidance on January 1, 2017, and the adoption did not have a material impact on its consolidated financial statements. 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 adopted this guidance on January 1, 2017, and the adoption did not 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 (measuring a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill) from the goodwill impairment test. Under 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 annual goodwill impairment tests performed on testing dates after January 1, 2017. The guidance requires application using a prospective method. The Company adopted this guidance on January 1, 2017, and the adoption did not have a material impact on its consolidated financial statements. Compensation – Stock Compensation In May 2017, the FASB issued guidance on determining which changes to the terms or conditions of share-based payment awards require an entity to apply modification accounting. 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, and is applied prospectively to changes in terms or conditions of awards occurring on or after the adoption date. The Company is currently assessing the effect that adoption of this guidance will have on its consolidated financial statements. |
Fair Value Of Financial Assets
Fair Value Of Financial Assets And Liabilities | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Of Financial Assets And Liabilities [Abstract] | |
Fair Value Of Financial Assets And Liabilities | 2. Fair Value of Financial Assets and Liabilities Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis The 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 June 30, 2017 Using: Value Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Certificates of deposit $ 7,221 $ — $ 7,221 $ — $ 7,221 Short-term investments: Short-term marketable securities - certificates of deposit 1,494 — 1,494 — 1,494 $ 8,715 $ — $ 8,715 $ — $ 8,715 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 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 given the short duration of the securities. Marketable securities (short-term) – the fair value of marketable securities has been determined to be amortized cost given the short duration of the securities. 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: June 30, 2017 Carrying Value Fair Value Liabilities: Loans payable (Level 2) $ 38,093 $ 38,172 December 31, 2016 Carrying Value Fair Value Liabilities: Loans payable (Level 2) $ 40,188 $ 40,709 Loans payable values above include both the current and the long-term loans balances as of June 30, 2017 and December 31, 2016. 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 does it indicate the Company’s intent or ability to dispose of the financial instrument. The fair value of loans payable was estimated using discounted cash flow analysis discounted at current rates. |
Investments
Investments | 6 Months Ended |
Jun. 30, 2017 | |
Investments [Abstract] | |
Investments | 3. Investments Marketable Securities Marketable securities consisted of the following: June 30, 2017 Gross Gross Amortized Unrealized Unrealized Fair Cost Losses Losses Value Short-term marketable securities: Certificates of deposit $ 1,494 $ — $ — $ 1,494 Total $ 1,494 $ — $ — $ 1,494 December 31, 2016 Gross Gross Amortized Unrealized Unrealized Fair Cost Losses Losses Value Short-term marketable securities: Certificates of deposit $ 996 $ — $ — $ 996 Total $ 996 $ — $ — $ 996 At June 30, 2017 and December 31, 2016 , 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. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2017 | |
Inventories [Abstract] | |
Inventories | 4 . Inventories Inventories are stated at the lower of cost or net realizable value and consisted of the following: June 30, 2017 December 31, 2016 Raw materials $ 1,491 $ 1,441 Work-in-process 5,199 8,153 Finished goods 271 1,536 $ 6,961 $ 11,130 As of June 30, 2017 a nd December 31, 2016, the Company had non-cancellable open orders for the purchase of inventories of approximately $27,667 and $17,800 , respectively . As of June 30, 2017 and December 31, 2016 , the Company had deposits for inventories of $5,313 and $0 , resp ectively , recorded as prepaid expenses and other current assets in the consolidated balance sheets. |
Goodwill
Goodwill | 6 Months Ended |
Jun. 30, 2017 | |
Goodwill And Intangible Assets [Abstract] | |
Goodwill | 5 . Goodwill Goodwill is recorded as an indefinite-lived asset and is not amortized for financial reporting purposes but is tested for impairment on an annual basis or when indications of impairment exist. No goodwill impairment losses have been recognized to date . Goodwill is not expected to be deductible for income tax purposes. The Company performs its annual impairment test of the carrying value of the Company’s goodwill during the third quarter of each year. Goodwill as of June 30, 2017 , was as follows: Gross Impairment Net Carrying Value Losses Carrying Value Goodwill $ 40,500 $ — $ 40,500 The change in the net book value of goodwill for the six months ended June 30, 2017 , was as follows: 2017 As of January 1, $ 39,382 Effect of foreign currency exchange 1,118 As of the end of the period, $ 40,500 |
Intangible Assets, Net
Intangible Assets, Net | 6 Months Ended |
Jun. 30, 2017 | |
Goodwill And Intangible Assets [Abstract] | |
Intangible Assets, Net | 6 . Intangible Assets, Net The change in the net book value of intangible assets for the six months ended June 30, 2017 , was as follows: 2017 As of January 1, $ 7,639 Additions (Note 9) 3,000 Amortization expense (150) Effect of foreign currency exchange 544 As of the end of the period, $ 11,033 The Company recognized amortization expense of $86 and $150 for the three and six months ended June 30, 2017 , respectively , and $95 and $190 for the three and six months ended June 30, 2016, respectively . Unamortized Intangible Assets Unamortized intangible assets as of June 30, 2017 , were as follows: Net Carrying Value Intellectual property rights acquired for in-process research and development $ 7,217 The net carrying value above includes asset impairment charges to date of $16,765 . Amortized Intangible Assets Amortized intangible assets as of June 30, 2017 , were as follows: Gross Net Weighted Carrying Accumulated Carrying Average Value Amortization Value Useful Life Intellectual property rights for currently marketed products $ 42,652 $ 38,836 $ 3,816 11.7 Years Accumulated amortization above includes both amortization expense and asset impairment charges . Asset impairment charges to date are $34,575 . Unfavorable outcomes of the Company’s developm ent activities or the Company’s estimates of the market opportunities for the therapeutic candidates could result in additional impairment charges in future periods. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2017 | |
Debt [Abstract] | |
Debt | 7. Debt Loan and Security Agreements Effective as of October 16, 2015, the Company and Vet Therapeutics, Inc., (the “Borrowers”), entered into a Loan and Security Agreement, as amended on February 24, 2017 (“Loan Agreement”), with Pacific Western Bank, or Pacific Western, as a collateral agent and Oxford Finance, LLC (the “Lenders”). The loan is secured by substantially all of the Borrowers’ personal 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 balance under the Loan Agreement was $32,667 under the term loan facility and $5,000 under the revolving credit facility at June 30, 2017 . Under the Loan Agreement, t he Company was required to make interest-only payments on the term loan for 18 months, and beginning on May 1, 2017, began to make payments of principal and accrued interest on the term loan in equal monthly installments over a term of 30 months. The Company was required to make interest-only payments on the revolving credit facility until October 16, 2017, when all principal and accrued interest were due. The term loan and revolving credit facility bear interes t per annum at the greater of (i) 6.91% or (ii) 3.66% plus the prime rate, which is customarily defined. As of June 30, 2017 , the interest rate for the term loan and the revolving credit facility was 7.91% . D uring the three and six months ended June 30, 2017 , the Company recognized interest expense of $871 and $1,731 , respectively, and d uring the three and six months ended June 30, 2016, the Company recognized interest expense of $843 and $1,687 , respectively . The Loan Agreement contains customary representations and warranties and customary affirmative and negative covenants, including, among others, limits or restrictions on the Borrowers’ ability to incur liens, incur indebtedness, make certain restricted payments, make certain investments, merge, consolidate, make an acquisition, enter into certain licensing arrangements and dispose of certain assets. In addition, the Loan Agreement contains customary events of default that entitle the Lenders to cause the Borrowers’ 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 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 June 30, 2017 , was approximately $ 22,523 . If the minimum liquidity covenant is not met, the Company may be required to repay the term loan and the revolving credit facility prior to their scheduled maturity dates. At June 30, 2017 , the Company was in compliance with all financial covenants. The Company’s loans payable balance as of June 30, 2017 , was as follows: Principal amounts Term loan, 7.91% , principal payments from May 1, 2017 through October 16, 2019 $ 32,667 Revolving credit facility, 7.91% , due October 16, 2017 5,000 Add: accretion of final payment and termination fees 631 Less: unamortized debt issuance costs (205) As of the end of the period $ 38,093 As of June 30, 2017 , $ 8,667 and $130 related to the term loan and the revolving credit facility, respectively, were classified as current portion – loans payable. Portions of the term loan and the revolving credit facility have been reclassified from current portion – loans payable to loans payable as the Company refinanced its debt after the balance sheet date . Effective as of July 31, 2017 , the Borrowers and Lenders entered into a second amendment to the Loan Agreement (“the Second Amendment”). The terms of the Second Amendment, among other things, extend the maturity date of the existing revolving credit facility to October 16, 2019 (the “Revolving Line Maturity Date”), with amortized equal repayments of the principal outstanding under the revolving credit facility beginning November 1, 2018, and provide a six -month interest only period for the term loans, starting on the date of the Second Amendment. The Company is not subject to any new financial covenants as a result of the Second Amendment. At the closing of the Second Amendment, the Company paid the Lenders an amendment fee of $150 and a facility fee of $60 . The Company is also obligated to pay a new termination fee equal to $165 upon the earliest to occur of the Revolving Line Maturity Date, the acceleration of the revolving credit facility or the termination of the revolving credit facility. The existing termination fee of $165 will continue to be payable upon the earliest to occur of the original revolving maturity date ( October 16, 2017 ), the acceleration of the revolving credit facility or the termination of the revolving credit facility. |
Accrued Expenses
Accrued Expenses | 6 Months Ended |
Jun. 30, 2017 | |
Accrued Expenses [Abstract] | |
Accrued Expenses | 8 . Accrued Expenses Accrued expenses consisted of the following: June 30, 2017 December 31, 2016 Accrued expenses: Payroll and related expenses $ 1,489 $ 2,321 Professional fees 236 219 Royalty expense 370 71 Interest expense 240 247 Research and development costs 511 364 Unbilled inventories — 465 Accrued loss on a firm purchase commitment 1,983 1,983 Milestone 481 17 Other 292 140 Total $ 5,602 $ 5,827 |
Agreements
Agreements | 6 Months Ended |
Jun. 30, 2017 | |
Agreements [Abstract] | |
Agreements | 9 . Agreements RaQualia Pharma Inc. (“RaQualia”) On December 27, 2010, the Company entered into two Exclusive License Agreements with RaQualia ( as amended, 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 remaining milestone payments associated with GALLIPRANT and ENTYCE of up t o $4,000 and $6,000 , respectivel y, 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. T he Company achieved a $3,000 milestone during the six m onths ended June 30, 2017 , which was paid and capitalized as an intangible asset in the first quarter of 2017. As of June 30, 2017 , the Company had p aid $8,500 in m ilestone payments since execution of the RaQualia Agreements . It is possible that multiple additional milestones related to the RaQualia Agreements are achieved within the next 12 months totaling $3,000 . Elanco GALLIPRANT On April 22, 2016, the Company entered into a Collaboration, License, Development and Commercialization Agreement (the “Collaboration Agreement”) with Eli Lilly and Company, acting on behalf of its Elanco Animal Health Division (“Elanco”) pursuant to which the Company granted Elanco rights to develop, manufacture, market and commercialize the Company’s products based on licensed grapiprant rights an d technology , including GALLIPRANT (collectively, “Grapiprant Products”) . Pursuant to the Collaboration Agreement, Elanco will have exclusive rights globally outside the United States and co-exclusive 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 , a nother $4,000 payment u pon 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 f or 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 Regist ration”) and the United States, and Elanco is responsible for all other development activities. First r egistration 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 the Grapiprant Products, provided that the Company’s contribution to such development fees and expenses is capped at $7,000 (“R&D Cap”), which was recorded as licensing and collaboration commitment liability in the consolidated b alance sh eets at June 30, 2017 and December 31, 2016. Th e 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 June 30, 2017 . 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. 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 active pharmaceutical ingredient (“API”) and/or finished 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. On April 28, 2017, the Company and Elanco entered into an amendment (the “Amendment”) to the Collaboration Agreement. Under the Amendment, Elanco has agreed to submit binding purchase orders to the Company, within 15 days of the effective date of the Amendment, for certain finished Grapiprant Products to be produced from certain batches of API the Company has agreed to purchase from its third - party manufacturer (the “API Batches”). In addition, Elanco has agreed to pay the Company for the API Batches within 30 days after the Company provides Elanco with proof of payment to the manufacturer for such API Batches. The Amendment provides that, in the event Elanco provides notice of its intent to assume responsibility for manufacturing, Elanco would assume all responsibilities of the Company with respect to any undelivered API, including paying the third - party manufacturer for such undelivered API. In July 2017, pursuant to Sections 8.2.2 and 10.1(c) of the Collaboration Agreement, as amended, Elanco provided the Company notice of its intent to assume responsibility for manufacturing of the Grapiprant Products and its intent to assume the applicable regulatory approvals. The Company believes the transfers of manufacturing responsibility and such regulatory approvals in the U nited S tates will be completed by December 31, 2017. 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 the Grapiprant Product in the United States after December 31, 2018 through 2028 (unless extended by mutual agreement). |
Common Stock
Common Stock | 6 Months Ended |
Jun. 30, 2017 | |
Common Stock [Abstract] | |
Common Stock | 10. Common Stock As of June 30, 2017 , there were 42,402,677 shares of the Company’s common stock outstanding, net of 584,591 shares of unvested restricted common stock. At-the-Market Offering On October 16, 2015, the Company entered into a Sales Agreement (“Sales Agreement”) with Barclays Capital , Inc. (“Barclays”) pursuant to which the Company could 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 (“ATM Program”). Sales of the Shares were made under the Company’s previously filed and then effective r egistration s tatement 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 could be sold at market prices, at negotiated prices or at prices related to the prevailing market price. The Company paid Barclays a commission of 2.75% of the gross proceeds from the sale of the Shares. During the three and six months ended June 30, 2017 , the Company sold 305,372 and 546,926 Shares for aggregate net proceeds of $1,565 and $2,78 8 , respectively. On April 28, 2017, the Company terminated its Sales Agreement. Prior to termination, the Company sold approximately $18,000 of the $52,000 available to be sold under the Sales Agreement. The Company terminated the Sales Agreement because it did not intend to raise additional capital through the ATM Program, and no additional shares of the Company’s common stock were sold pursuant to the Sales Agreement. The Company did not incur any termination penalties as a result of its termination of the Sales Agreement. Registered Direct Offering On May 3, 2017, the Company entered into a Placement Agency Agreement (“PAA”) with Barclays, pursuant to which Barclays agreed to serve as placement agent for an offering of shares of common stock. In conjunction with the PAA, on May 3, 2017, the Company also entered into a Securities Purchase Agreement with certain investors for the sale by the Company of 5,000,000 shares of common stock at a purchase price of $5.25 per share (the “Offering”). The shares of common stock were offered and sold pursuant to the Company’s previously filed and then effective registration statement on Form S-3 (File No. 333-197414) and a related prospectus supplement. The Company agreed to pay Barclays an aggregate fee equal to 6.0% of the gross proceeds received by the Company from the Offering. The Offering closed on May 9, 2017 . During the three months ended June 30, 2017, t he Company receive d aggregate net proceeds from the Offering of approximately $24,400 , after deducting placement agent fees of $1,575 and offering expenses of $273 . |
Stock-Based Awards
Stock-Based Awards | 6 Months Ended |
Jun. 30, 2017 | |
Stock-Based Awards [Abstract] | |
Stock-Based Awards | 1 1 . Stock-Based Awards 2010 Equity Incentive Plan Activity related to stock options under the 2010 Equity Incentive Plan (the “2010 Plan”) for the six months ended June 30, 2017 , 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, 2016 65,931 $ 3.73 6.09 $ 228 Granted — — Exercised (8,537) 0.40 Forfeited — — Expired — — Outstanding as of June 30, 2017 57,394 $ 4.22 5.62 $ 173 No stock options have been granted under the 2010 Plan since the effective date of the 2013 Incentive Award Plan (the “2013 Plan”). For the six months ended June 30, 2017 , the total intrinsic value of options exercised was $53 and the total received from stock option exercises was $3 . 2013 Incentive Award Plan On January 1, 2017, the annual increase in the number of shares available for issuance under the 2013 Plan was determined to be 1,203,369 shares in accordance with the automatic annual increase provisions of the 2013 Plan. As of June 30, 2017 , there were 1,609,078 shares available for future grant under the 2013 Plan. Activity related to stock options under the 2013 Plan for the six months ended June 30, 2017 , 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, 2016 2,251,518 $ 12.43 7.78 $ 2,261 Granted 503,400 7.82 Exercised (47,416) 3.14 Forfeited (28,351) 10.91 Expired (83,753) 19.15 Outstanding as of June 30, 2017 2,595,398 $ 11.50 7.85 $ 2,115 For the six mo nths ended June 30, 2017 , the weighted average grant date fair value of stock options granted was $5.18 . For the six months ended June 30, 2017 , the total intrinsic value of options exercised was $114 and the total received from stock option exercises was $149 . Activity related to restricted stock under the 2013 Plan for the six months ended June 30, 2017 , was as follows: Weighted Average Grant Shares Date Fair Value Unvested restricted common stock as of December 31, 2016 461,463 $ 8.30 Issued 326,700 7.89 Vested (192,780) 10.12 Forfeited (10,792) 7.32 Unvested restricted common stock as of June 30, 2017 584,591 $ 7.49 For the six months ended June 30, 2017 , the total fair value of restricted common stock vested was $ 1,418 . The Company did not receive cash proceeds for any of the restricted common stock issued during the six months ended June 30, 2017 . Stock-Based Compensation Upon adoption of ASU 2016-09 ( Compensation – Stock Compensation ) on January 1 , 2017 , the Company elected to change its accounting policy to account for forfeitures as they occur. The change was applied on a modified retrospective basis with a cumulative-effect adjustment to accumulated deficit o f $213 (which increased the accumulated deficit) as of January 1, 201 7. Prior to adoption of this guidance the Company estimated forfeitures . The Company recorded stock-based compensation expense related to stock options and restricted stock as follows: Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Cost of product sales and inventories $ 44 $ 19 $ 84 $ 50 Research and development 238 264 488 629 Selling, general and administrative 1,562 1,913 3,086 3,770 $ 1,844 $ 2,196 $ 3,658 $ 4,449 A s o f June 30, 2017 , t he Company had an aggre gate of $ 6,634 and $ 3,582 of unrecognized stock-based compensation expense for options outstandin g and restricted stock awards, respectively, which is expected to be recognized over a weighted average period of 2.32 years and 1.95 yea rs, respectively. |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 6 Months Ended |
Jun. 30, 2017 | |
Net Income (Loss) Per Share [Abstract] | |
Net Income (Loss) Per Share | 1 2 . Net Income (Loss) Per Share Basic and diluted net income (loss) per share was calculated as follows: Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Basic net income (loss) per share attributable to common stockholders: Numerator: Net income (loss) $ (10,380) $ 21,196 $ (22,992) $ 3,129 Net income attributable to participating securities — (20) — (3) Net income (loss) attributable to common stockholders $ (10,380) $ 21,176 $ (22,992) $ 3,126 Denominator: Weighted average shares outstanding – basic 40,206,042 34,762,533 38,486,329 34,708,006 Net income (loss) per share attributable to common stockholders – basic $ (0.26) $ 0.61 $ (0.60) $ 0.09 Diluted net income (loss) per share attributable to common stockholders: Numerator: Net income (loss) $ (10,380) $ 21,196 $ (22,992) $ 3,129 Net income attributable to participating securities — (20) — (3) Net income (loss) attributable to common stockholders $ (10,380) $ 21,176 $ (22,992) $ 3,126 Denominator: Weighted average shares outstanding – basic 40,206,042 34,762,533 38,486,329 34,708,006 Dilutive effect of outstanding stock awards — 175,922 — 71,780 Weighted average shares outstanding – diluted 40,206,042 34,938,455 38,486,329 34,779,786 Net income (loss) per share attributable to common stockholders – diluted $ (0.26) $ 0.61 $ (0.60) $ 0.09 The Company’s participating securities consisted of unvested restricted common stock issued from early exercised stock options and restricted common stock awards granted under the 2010 Plan as these shares have non-forfeitable dividend rights. S tock options for the purchase of 2,652,792 shares of common stock were excluded from the computation of diluted net loss per share attributable to common stockholders for the three and six months ended June 30, 2017 , b ecause those options had an anti-dilutive impact due to the net loss attributable to common stockholders incurred for the period. Stock options for the purchase of 1,705,396 and 1,941,521 weighted average shares of common stock and 551,709 and 557,149 of unvested restricted stock awards were excluded from the computation of diluted net income per share attributable to common stockholders for the three and six months ended June 30, 2016, respectively, because those awards had an anti-dilutive impact on the net income attributable to common stockholders. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2017 | |
Income Taxes [Abstract] | |
Income Taxes | 1 3 . Income Taxes The Company recorded no income tax expense or benefit during the three and six months ended June 30, 2017 and 2016, due to a full valuation allowance recognized against its deferred tax assets. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Jun. 30, 2017 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Accumulated Other Comprehensive Loss | 1 4 . Accumulated Other Comprehensive Loss The changes in accumulated other comprehensive loss, net of their related tax effects, were as follows: Foreign Accumulated Currency Other Translation Comprehensive Adjustment Loss As of December 31, 2016 $ (9,862) $ (9,862) Foreign currency translation adjustment 1,721 1,721 As of June 30, 2017 $ (8,141) $ (8,141) |
Legal Contingencies
Legal Contingencies | 6 Months Ended |
Jun. 30, 2017 | |
Legal Contingencies [Abstract] | |
Legal Contingencies | 1 5 . Legal Contingencies 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. In February 2017, two purported class action lawsuits were filed in the United States District Court for the Southern District of New York against the Company and two of its current officers. Those cases have been consolidated into one purported class action lawsuit under the caption, In re Aratana Therapeutics, Inc. Securities Litigation, Case No. 1:17-cv-00880. The consolidated lawsuit asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended, and is 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 litigation, at this time a loss is not probable or reasonably estimable. |
Summary Of Significant Accoun22
Summary Of Significant Accounting Policies (Policy) | 6 Months Ended |
Jun. 30, 2017 | |
Summary Of Significant Accounting Policies [Abstract] | |
Business Overview | Business Overview Aratana Therapeutics, Inc., including its subsidiaries (the “Company” or “Aratana”) was incorporated on December 1, 2010 under the laws of the State of Delaware. T he Company is a pet therapeutics company focused on licensing, developing and commercializing innovative therapeutics for dogs and cats. The Company has one operating segment: pet therapeutics. |
Basis Of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with U nited S tates generally accepted accounting principles (“GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements of the Company for the year ended December 31, 2016 and the notes thereto in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 14, 2017. In the opinion of management, all adjustments, consisting of a normal and recurring nature, considered necessary for a fair presentation, have been included. The Company has incurred recurring losses and negative cash flows from operations and has an accumulated deficit of $208,798 as of June 30, 2017 . 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 will be sufficient to fund operations and debt obligations f or at least one year from the issuance of the se consolidated financial statements. The Company expects to continue to incur operating losses for the next several years as it works to develop and commercialize its therapeutics and therapeutic candida tes. If the Company cannot generate sufficient cash from operations in the future, it may seek to fund its operations through collaborations and licensing arrangements, as well as public or private equity offerings or further debt (re)financings. 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. As disclosed i n Note 7 t o the consolidated financial statements, the Company has a term loan and a revolving credit facility with an aggregate principa l balance of $37,667 as of June 30, 2017 . 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 balance 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 June 30, 2017 , was approximately $ 22,523 . If the minimum liquidity covenant is not met, the Company may be required to repay the loans prior to their scheduled maturity dates. At June 30, 2017 , the Company was in compliance with all financial covenants. |
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 (“VIE”) through the deconsolidation date in December 2016. 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 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. |
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. |
Property And Equipment, Net | Property and Equipment, net Property and equipment is recorded at historical cost, net of accumulated depreciation and amortization of $1,378 and $920 as of June 30, 2017 and December 31, 2016 , respectively. |
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. 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 consolidated financial statements. The timing of revenue recognition for variable consideration under the Company’s 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 such consideration exists, whether it should be estimated and recognized earlier than under the current revenue guidance. Inventory In July 2015, the FASB issued guidance that 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 using a prospective basis. The Company adopted this guidance on January 1, 2017, and the adoption did not have a material impact on its consolidated financial statements. Leases In February 2016, the FASB issued guidance that 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 using a modified retrospective method. 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 adopted this guidance on January 1, 2017, and the adoption did not have a material impact on its consolidated financial statements. 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 adopted this guidance on January 1, 2017, and the adoption did not 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 (measuring a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill) from the goodwill impairment test. Under 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 annual goodwill impairment tests performed on testing dates after January 1, 2017. The guidance requires application using a prospective method. The Company adopted this guidance on January 1, 2017, and the adoption did not have a material impact on its consolidated financial statements. Compensation – Stock Compensation In May 2017, the FASB issued guidance on determining which changes to the terms or conditions of share-based payment awards require an entity to apply modification accounting. 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, and is applied prospectively to changes in terms or conditions of awards occurring on or after the adoption date. The Company is currently assessing the effect that adoption of this guidance will have on its consolidated financial statements. |
Fair Value Of Financial Asset23
Fair Value Of Financial Assets And Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
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 June 30, 2017 Using: Value Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Certificates of deposit $ 7,221 $ — $ 7,221 $ — $ 7,221 Short-term investments: Short-term marketable securities - certificates of deposit 1,494 — 1,494 — 1,494 $ 8,715 $ — $ 8,715 $ — $ 8,715 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 |
Carrying Amounts And Estimated Fair Value Of Company's Financial Liabilities Not Measured At Fair Value On Recurring Basis | June 30, 2017 Carrying Value Fair Value Liabilities: Loans payable (Level 2) $ 38,093 $ 38,172 December 31, 2016 Carrying Value Fair Value Liabilities: Loans payable (Level 2) $ 40,188 $ 40,709 |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Investments [Abstract] | |
Fair Value Of Available-For-Sale Marketable Securities | Marketable securities consisted of the following: June 30, 2017 Gross Gross Amortized Unrealized Unrealized Fair Cost Losses Losses Value Short-term marketable securities: Certificates of deposit $ 1,494 $ — $ — $ 1,494 Total $ 1,494 $ — $ — $ 1,494 December 31, 2016 Gross Gross Amortized Unrealized Unrealized Fair Cost Losses Losses Value Short-term marketable securities: Certificates of deposit $ 996 $ — $ — $ 996 Total $ 996 $ — $ — $ 996 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Inventories [Abstract] | |
Components Of Inventories | June 30, 2017 December 31, 2016 Raw materials $ 1,491 $ 1,441 Work-in-process 5,199 8,153 Finished goods 271 1,536 $ 6,961 $ 11,130 |
Goodwill (Tables)
Goodwill (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Goodwill And Intangible Assets [Abstract] | |
Summary Of Goodwill | Gross Impairment Net Carrying Value Losses Carrying Value Goodwill $ 40,500 $ — $ 40,500 |
Summary Of Change In The Net Book Value Of Goodwill | 2017 As of January 1, $ 39,382 Effect of foreign currency exchange 1,118 As of the end of the period, $ 40,500 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Goodwill And Intangible Assets [Abstract] | |
Summary Of Change In The Net Book Value Of Other Intangible Assets | 2017 As of January 1, $ 7,639 Additions (Note 9) 3,000 Amortization expense (150) Effect of foreign currency exchange 544 As of the end of the period, $ 11,033 |
Summary Of Unamortized Intangible Assets | Net Carrying Value Intellectual property rights acquired for in-process research and development $ 7,217 |
Summary Of Amortized Intangible Assets | Gross Net Weighted Carrying Accumulated Carrying Average Value Amortization Value Useful Life Intellectual property rights for currently marketed products $ 42,652 $ 38,836 $ 3,816 11.7 Years |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Debt [Abstract] | |
Schedule Of Loan Payable Balance | Principal amounts Term loan, 7.91% , principal payments from May 1, 2017 through October 16, 2019 $ 32,667 Revolving credit facility, 7.91% , due October 16, 2017 5,000 Add: accretion of final payment and termination fees 631 Less: unamortized debt issuance costs (205) As of the end of the period $ 38,093 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Accrued Expenses [Abstract] | |
Summary Of Accrued Expenses | June 30, 2017 December 31, 2016 Accrued expenses: Payroll and related expenses $ 1,489 $ 2,321 Professional fees 236 219 Royalty expense 370 71 Interest expense 240 247 Research and development costs 511 364 Unbilled inventories — 465 Accrued loss on a firm purchase commitment 1,983 1,983 Milestone 481 17 Other 292 140 Total $ 5,602 $ 5,827 |
Stock-Based Awards (Tables)
Stock-Based Awards (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Compensation Related Costs, Share-based Payments [Line Items] | |
Summary Of Stock-Based Compensation Expense Related To Stock Options And Restricted Stock | Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Cost of product sales and inventories $ 44 $ 19 $ 84 $ 50 Research and development 238 264 488 629 Selling, general and administrative 1,562 1,913 3,086 3,770 $ 1,844 $ 2,196 $ 3,658 $ 4,449 |
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, 2016 65,931 $ 3.73 6.09 $ 228 Granted — — Exercised (8,537) 0.40 Forfeited — — Expired — — Outstanding as of June 30, 2017 57,394 $ 4.22 5.62 $ 173 |
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, 2016 2,251,518 $ 12.43 7.78 $ 2,261 Granted 503,400 7.82 Exercised (47,416) 3.14 Forfeited (28,351) 10.91 Expired (83,753) 19.15 Outstanding as of June 30, 2017 2,595,398 $ 11.50 7.85 $ 2,115 |
Summary Of Restricted Stock Activity | Weighted Average Grant Shares Date Fair Value Unvested restricted common stock as of December 31, 2016 461,463 $ 8.30 Issued 326,700 7.89 Vested (192,780) 10.12 Forfeited (10,792) 7.32 Unvested restricted common stock as of June 30, 2017 584,591 $ 7.49 |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Net Income (Loss) Per Share [Abstract] | |
Schedule Of Basic And Diluted Net Income (Loss) Per Share Attributable To Common Stockholders | Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Basic net income (loss) per share attributable to common stockholders: Numerator: Net income (loss) $ (10,380) $ 21,196 $ (22,992) $ 3,129 Net income attributable to participating securities — (20) — (3) Net income (loss) attributable to common stockholders $ (10,380) $ 21,176 $ (22,992) $ 3,126 Denominator: Weighted average shares outstanding – basic 40,206,042 34,762,533 38,486,329 34,708,006 Net income (loss) per share attributable to common stockholders – basic $ (0.26) $ 0.61 $ (0.60) $ 0.09 Diluted net income (loss) per share attributable to common stockholders: Numerator: Net income (loss) $ (10,380) $ 21,196 $ (22,992) $ 3,129 Net income attributable to participating securities — (20) — (3) Net income (loss) attributable to common stockholders $ (10,380) $ 21,176 $ (22,992) $ 3,126 Denominator: Weighted average shares outstanding – basic 40,206,042 34,762,533 38,486,329 34,708,006 Dilutive effect of outstanding stock awards — 175,922 — 71,780 Weighted average shares outstanding – diluted 40,206,042 34,938,455 38,486,329 34,779,786 Net income (loss) per share attributable to common stockholders – diluted $ (0.26) $ 0.61 $ (0.60) $ 0.09 |
Accumulated Other Comprehensi32
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Summary Of Changes In Accumulated Other Comprehensive Loss | Foreign Accumulated Currency Other Translation Comprehensive Adjustment Loss As of December 31, 2016 $ (9,862) $ (9,862) Foreign currency translation adjustment 1,721 1,721 As of June 30, 2017 $ (8,141) $ (8,141) |
Summary Of Significant Accoun33
Summary Of Significant Accounting Policies (Narrative) (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017USD ($)segment | Dec. 31, 2016USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | ||
Number of operating segments | segment | 1 | |
Accumulated deficit | $ 208,798 | $ 185,593 |
Accumulated depreciation and amortization | 1,378 | $ 920 |
Loan Agreement [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Principal amount of debt | $ 37,667 | |
Minimum liquidity requirement | 50.00% | |
Liquidity requirement | $ 22,523 |
Fair Value Of Financial Asset34
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 | Jun. 30, 2017 | Dec. 31, 2016 |
Assets: | ||
Assets, fair value | $ 8,715 | $ 8,715 |
Carrying Value [Member] | ||
Assets: | ||
Assets, fair value | 8,715 | 8,715 |
Certificates Of Deposit [Member] | ||
Assets: | ||
Cash equivalents | 7,221 | 7,719 |
Certificates Of Deposit [Member] | Carrying Value [Member] | ||
Assets: | ||
Cash equivalents | 7,221 | 7,719 |
Short-Term Marketable Securities - Certificates Of Deposit [Member] | ||
Assets: | ||
Short-term marketable securities - certificates of deposit | 1,494 | 996 |
Short-Term Marketable Securities - Certificates Of Deposit [Member] | Carrying Value [Member] | ||
Assets: | ||
Short-term marketable securities - certificates of deposit | 1,494 | 996 |
Level 2 [Member] | ||
Assets: | ||
Assets, fair value | 8,715 | 8,715 |
Level 2 [Member] | Certificates Of Deposit [Member] | ||
Assets: | ||
Cash equivalents | 7,221 | 7,719 |
Level 2 [Member] | Short-Term Marketable Securities - Certificates Of Deposit [Member] | ||
Assets: | ||
Short-term marketable securities - certificates of deposit | $ 1,494 | $ 996 |
Fair Value Of Financial Asset35
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 | Jun. 30, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loan payable, Carrying Value | $ 38,093 | |
Level 2 [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loan payable, Carrying Value | 38,093 | $ 40,188 |
Loan payable, Fair Value | $ 38,172 | $ 40,709 |
Investments (Fair Value Of Avai
Investments (Fair Value Of Available-For-Sale Marketable Securities) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 1,494 | $ 996 |
Fair Value | 1,494 | 996 |
Certificates Of Deposit [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 1,494 | 996 |
Fair Value | $ 1,494 | $ 996 |
Inventories (Narrative) (Detail
Inventories (Narrative) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Inventory [Line Items] | ||
Deposits for inventory | $ 6,605 | $ 2,022 |
GALLIPRANT, ENTYCE and NOCITA [Member] | ||
Inventory [Line Items] | ||
Non-cancellable open orders | 27,667 | 17,800 |
Deposits for inventory | $ 5,313 | $ 0 |
Inventories (Components Of Inve
Inventories (Components Of Inventories) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Inventories [Abstract] | ||
Raw materials | $ 1,491 | $ 1,441 |
Work-in-process | 5,199 | 8,153 |
Finished goods | 271 | 1,536 |
Total | $ 6,961 | $ 11,130 |
Goodwill (Narrative) (Details)
Goodwill (Narrative) (Details) | 6 Months Ended |
Jun. 30, 2017USD ($) | |
Goodwill And Intangible Assets [Abstract] | |
Goodwill impairment loss | $ 0 |
Goodwill (Summary Of Goodwill)
Goodwill (Summary Of Goodwill) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Goodwill And Intangible Assets [Abstract] | ||
Gross Carrying Value | $ 40,500 | |
Impairment Losses | ||
Net Carrying Value | $ 40,500 | $ 39,382 |
Goodwill (Summary Of Change In
Goodwill (Summary Of Change In The Net Book Value Of Goodwill) (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2017USD ($) | |
Goodwill And Intangible Assets [Abstract] | |
As of January 1, | $ 39,382 |
Effect of foreign currency exchange | 1,118 |
As of the end of the period, | $ 40,500 |
Intangible Assets, Net (Narrati
Intangible Assets, Net (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Intangible Assets [Line Items] | ||||
Amortization of intangible assets | $ 86 | $ 95 | $ 150 | $ 190 |
Impairment charges, indefinite-lived | 34,575 | |||
Intellectual Property Rights Acquired For In-Process Research And Development [Member] | ||||
Intangible Assets [Line Items] | ||||
Impairment charges, indefinite-lived | $ 16,765 |
Intangible Assets, Net (Summary
Intangible Assets, Net (Summary Of Change In The Net Book Value Of Other Intangible Assets) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Goodwill And Intangible Assets [Abstract] | ||||
As of January 1 | $ 7,639 | |||
Additions (Note 9) | 3,000 | |||
Amortization expense | $ (86) | $ (95) | (150) | $ (190) |
Effect of foreign currency exchange | 544 | |||
As of the end of the period, | $ 11,033 | $ 11,033 |
Intangible Assets, Net (Summa44
Intangible Assets, Net (Summary Of Unamortized Intangible Assets) (Details) $ in Thousands | Jun. 30, 2017USD ($) |
Intellectual Property Rights Acquired For In-Process Research And Development [Member] | |
Indefinite-lived Intangible Assets [Line Items] | |
Net Carrying Value | $ 7,217 |
Intangible Assets, Net (Summa45
Intangible Assets, Net (Summary Of Amortized Intangible Assets) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Dec. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | ||
Net carrying value | $ 11,033 | $ 7,639 |
Intellectual Property Rights For Currently Marketed Products [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying value | 42,652 | |
Accumulated amortization | 38,836 | |
Net carrying value | $ 3,816 | |
Weighted average useful life | 11 years 8 months 12 days |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) $ in Thousands | Jul. 31, 2017 | Oct. 16, 2015 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 |
Debt Instrument [Line Items] | |||||||
Interest expense | $ 871 | $ 843 | $ 1,731 | $ 1,687 | |||
Current portion – loans payable | 8,797 | 8,797 | $ 14,413 | ||||
Term Loan [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Amount outstanding | $ 32,667 | $ 32,667 | |||||
Interest rate | 7.91% | 7.91% | |||||
Date of maturity | Oct. 16, 2019 | ||||||
Interest only payment term | 18 months | ||||||
Principal and accrued interest payment term | 30 months | ||||||
Current portion – loans payable | $ 8,667 | $ 8,667 | |||||
Revolving Line [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Amount outstanding | $ 5,000 | $ 5,000 | |||||
Interest rate | 7.91% | 7.91% | |||||
Date of maturity | Oct. 16, 2017 | ||||||
Current portion – loans payable | $ 130 | $ 130 | |||||
Revolving Line [Member] | Subsequent Event [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Date of maturity | Oct. 16, 2019 | ||||||
Term Loan And Revolving Credit Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 6.91% | 7.91% | 7.91% | ||||
Excess interest rate over prime rate | 3.66% | ||||||
Loan Agreement [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Additional default interest rate | 4.00% | 4.00% | |||||
Minimum liquidity requirement | 50.00% | ||||||
Liquidity requirement | $ 22,523 | $ 22,523 | |||||
Termination fee | $ 165 | $ 165 | |||||
Loan Agreement [Member] | Subsequent Event [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Interest only payment term | 6 months | ||||||
Amendment fee | $ 150 | ||||||
Facility fee | 60 | ||||||
Termination fee | $ 165 |
Debt (Schedule Of Loan Payable
Debt (Schedule Of Loan Payable Balance) (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2017USD ($) | |
Add: accretion of final payment and termination fees | $ 631 |
Less: unamortized debt issuance costs | (205) |
Total | 38,093 |
Term Loan [Member] | |
Principal amounts | $ 32,667 |
Interest rate | 7.91% |
Date of first principal payment | May 1, 2017 |
Date of maturity | Oct. 16, 2019 |
Revolving Line [Member] | |
Principal amounts | $ 5,000 |
Interest rate | 7.91% |
Date of maturity | Oct. 16, 2017 |
Accrued Expenses (Summary Of Ac
Accrued Expenses (Summary Of Accrued Expenses) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Accrued expenses: | ||
Payroll and related expenses | $ 1,489 | $ 2,321 |
Professional fees | 236 | 219 |
Royalty expense | 370 | 71 |
Interest expense | 240 | 247 |
Research and development costs | 511 | 364 |
Unbilled inventories | 465 | |
Accrued loss on a firm purchase commitment | 1,983 | 1,983 |
Milestone | 481 | 17 |
Other | 292 | 140 |
Total | $ 5,602 | $ 5,827 |
Agreements (RaQualia Pharma Inc
Agreements (RaQualia Pharma Inc Narrative) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2018USD ($) | Dec. 27, 2010USD ($)agreement | |
Research and Development Arrangement, Contract to Perform for Others [Line Items] | ||||||
Intangible assets acquired | $ 3,000 | |||||
Research and development | $ 3,700 | $ 5,303 | 8,354 | $ 16,052 | ||
RaQualia Agreements [Member] | ||||||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | ||||||
Number of license agreements | agreement | 2 | |||||
Intangible assets acquired | 3,000 | |||||
Milestones paid | $ 8,500 | |||||
RaQualia Agreements [Member] | Subsequent Event [Member] | ||||||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | ||||||
Milestones payable | $ 3,000 | |||||
AT-001 GALLIPRANT [Member] | RaQualia Agreements [Member] | ||||||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | ||||||
Milestones payable | $ 4,000 | |||||
AT-002 ENTYCE [Member] | RaQualia Agreements [Member] | ||||||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | ||||||
Milestones payable | $ 6,000 |
Agreements (Elanco GALLIPRANT N
Agreements (Elanco GALLIPRANT Narrative) (Details) - USD ($) $ in Thousands | Apr. 28, 2017 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 |
Research and Development Arrangement, Contract to Perform for Others [Line Items] | ||||||
Research and development | $ 3,700 | $ 5,303 | $ 8,354 | $ 16,052 | ||
Other long-term assets | 555 | $ 555 | $ 545 | |||
AT-001 GALLIPRANT [Member] | ||||||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | ||||||
Percentage of third-party development fees and expenses to be paid | 25.00% | |||||
AT-001 GALLIPRANT [Member] | Elanco Collaboration Agreement [Member] | ||||||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | ||||||
Non-refundable, non-creditable up-front payment receivable | 45,000 | $ 45,000 | ||||
Percentage of third-party development fees and expenses to be paid | 75.00% | |||||
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 | |||||
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% | |||||
AT-001 GALLIPRANT [Member] | Elanco Collaboration Agreement Amendment [Member] | ||||||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | ||||||
Binding purchase order, submission period | 15 days | |||||
Agreement to pay after proof of payment to manufacturer, period | 30 days | |||||
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 | $ 4,000 | ||||
Manufacturing 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 | 4,000 | ||||
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 | $ 75,000 | ||||
Reduction for each annual occurrence milestone is not achieved | 33.33% |
Common Stock (Narrative) (Detai
Common Stock (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | May 03, 2017 | Apr. 28, 2017 | Oct. 16, 2015 | Jun. 30, 2017 | Dec. 31, 2016 |
Class of Stock [Line Items] | |||||
Common stock outstanding, shares | 42,402,677 | 36,607,922 | |||
Aggregate common stock available to sell | $ 52,000 | $ 52,000 | |||
Percentage of commission on gross proceeds from sale of shares | 2.75% | ||||
Proceeds from shares sold under sales agreement | $ 18 | ||||
Securities Purchase Agreement [Member] | |||||
Class of Stock [Line Items] | |||||
Issuance of common stock, shares | 5,000,000 | ||||
Share issue price per share | $ 5.25 | ||||
Stock offering close date | May 9, 2017 | ||||
Agent fee, percentage of gross proceeds | 6.00% | ||||
Net proceeds from offering | $ 24,400 | ||||
Placement agent fee | 1,575 | ||||
Offering expenses | $ 273 | ||||
Unvested Restricted Stock [Member] | |||||
Class of Stock [Line Items] | |||||
Common stock outstanding, shares | 584,591 |
Stock-Based Awards (Narrative)
Stock-Based Awards (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | Jan. 01, 2017 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Dec. 31, 2016 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Proceeds from stock option exercises | $ 152 | $ 1 | |||
Accumulated deficit | 208,798 | $ 208,798 | $ 185,593 | ||
Accounting Standards Update 2016-09 [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Accumulated deficit | $ 213 | ||||
2010 Equity Incentive Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Aggregate intrinsic value of options exercised | 53 | ||||
Proceeds from stock option exercises | $ 3 | ||||
2010 Equity Incentive Plan [Member] | Stock Option [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock options granted | 0 | ||||
2013 Incentive Award Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Annual increase in shares | 1,203,369 | ||||
Shares available for future grant | 1,609,078 | 1,609,078 | |||
Unrecognized stock-based compensation expense for options outstanding | $ 6,634 | $ 6,634 | |||
Stock options granted | 503,400 | ||||
Restricted stock granted | 326,700 | ||||
Weighted average grant date fair value, grants | $ 7.89 | ||||
Unvested, other than options | 584,591 | 584,591 | 461,463 | ||
Unrecognized stock-based compensation expense, other than options | $ 3,582 | $ 3,582 | |||
2013 Incentive Award Plan [Member] | Stock Option [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Weighted average grant date fair value of options granted | $ 5.18 | ||||
Aggregate intrinsic value of options exercised | $ 114 | ||||
Proceeds from stock option exercises | $ 149 | ||||
Unrecognized stock-based compensation expense, recognition period | 2 years 3 months 26 days | ||||
2013 Incentive Award Plan [Member] | Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Fair value stock awards, vested, other than options | $ 1,418 | ||||
Proceeds from the issuance of restricted stock | $ 0 | ||||
Unrecognized stock-based compensation expense, recognition period | 1 year 11 months 12 days |
Stock-Based Awards (Summary Of
Stock-Based Awards (Summary Of Stock Option Activity) (Details) $ / shares in Units, $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017USD ($)$ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares | |
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, 2016 | shares | 65,931 | |
Shares Issuable Under Options, Exercised | shares | (8,537) | |
Shares Issuable Under Options, Outstanding as of June 30, 2017 | shares | 57,394 | 65,931 |
Weighted Average Exercise Price, Outstanding as of December 31, 2016 | $ / shares | $ 3.73 | |
Weighted Average Exercise Price, Exercised | $ / shares | 0.40 | |
Weighted Average Exercise Price, Outstanding as of June 30, 2017 | $ / shares | $ 4.22 | $ 3.73 |
Weighted Average Remaining Contractual Term, Outstanding | 5 years 7 months 13 days | 6 years 1 month 2 days |
Aggregate Intrinsic Value, Outstanding | $ | $ 173 | $ 228 |
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, 2016 | shares | 2,251,518 | |
Shares Issuable Under Options, Granted | shares | 503,400 | |
Shares Issuable Under Options, Exercised | shares | (47,416) | |
Shares Issuable Under Options, Forfeited | shares | (28,351) | |
Shares Issuable Under Options, Expired | shares | (83,753) | |
Shares Issuable Under Options, Outstanding as of June 30, 2017 | shares | 2,595,398 | 2,251,518 |
Weighted Average Exercise Price, Outstanding as of December 31, 2016 | $ / shares | $ 12.43 | |
Weighted Average Exercise Price, Granted | $ / shares | 7.82 | |
Weighted Average Exercise Price, Exercised | $ / shares | 3.14 | |
Weighted Average Exercise Price, Forfeited | $ / shares | 10.91 | |
Weighted Average Exercise Price, Expired | $ / shares | 19.15 | |
Weighted Average Exercise Price, Outstanding as of June 30, 2017 | $ / shares | $ 11.50 | $ 12.43 |
Weighted Average Remaining Contractual Term, Outstanding | 7 years 10 months 6 days | 7 years 9 months 11 days |
Aggregate Intrinsic Value, Outstanding | $ | $ 2,115 | $ 2,261 |
Stock-Based Awards (Summary O54
Stock-Based Awards (Summary Of Restricted Stock Activity) (Details) - 2013 Incentive Award Plan [Member] | 6 Months Ended |
Jun. 30, 2017$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unvested restricted common stock as of December 31, 2016, Share | shares | 461,463 |
Issued, Shares | shares | 326,700 |
Vested, Shares | shares | (192,780) |
Forfeited, Shares | shares | (10,792) |
Unvested restricted common stock as of June 30, 2017, Shares | shares | 584,591 |
Unvested restricted common stock as of December 31, 2016, Weighted Average Grant Date Fair Value | $ / shares | $ 8.30 |
Issued, Weighted Average Grant Date Fair Value | $ / shares | 7.89 |
Vested, Weighted Average Grant Date Fair Value | $ / shares | 10.12 |
Forfeited, Weighted Average Grant Date Fair Value | $ / shares | 7.32 |
Unvested restricted common stock as of June 30, 2017, Weighted Average Grant Date Fair Value | $ / shares | $ 7.49 |
Stock-Based Awards (Summary O55
Stock-Based Awards (Summary Of Stock-Based Compensation Expense Related To Stock Options And Restricted Stock) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | $ 1,844 | $ 2,196 | $ 3,658 | $ 4,449 |
Research and Development [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | 238 | 264 | 488 | 629 |
Cost of Product Sales and Inventories [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | 44 | 19 | 84 | 50 |
Selling, General and Administrative [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | $ 1,562 | $ 1,913 | $ 3,086 | $ 3,770 |
Net Income (Loss) Per Share (Na
Net Income (Loss) Per Share (Narrative) (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Stock Options [Member] | ||||
Dilutive Securities Included And Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Common stock excluded from diluted net loss per share | 2,652,792 | 1,705,396 | 2,652,792 | 1,941,521 |
Unvested Restricted Stock [Member] | ||||
Dilutive Securities Included And Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Common stock excluded from diluted net loss per share | 551,709 | 557,149 |
Net Income (Loss) Per Share (Sc
Net Income (Loss) Per Share (Schedule Of Basic And Diluted Net Income (Loss) Per Share Attributable To Common Stockholders) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Numerator: | ||||
Net income (loss) | $ (10,380) | $ 21,196 | $ (22,992) | $ 3,129 |
Net income attributable to participating securities | (20) | (3) | ||
Net income (loss) attributable to common stockholders | $ (10,380) | $ 21,176 | $ (22,992) | $ 3,126 |
Denominator: | ||||
Weighted average shares outstanding – basic | 40,206,042 | 34,762,533 | 38,486,329 | 34,708,006 |
Net income (loss) per share attributable to common stockholders – basic | $ (0.26) | $ 0.61 | $ (0.60) | $ 0.09 |
Dilutive effect of outstanding stock awards | 175,922 | 71,780 | ||
Weighted average shares outstanding – diluted | 40,206,042 | 34,938,455 | 38,486,329 | 34,779,786 |
Net income (loss) per share attributable to common stockholders – diluted | $ (0.26) | $ 0.61 | $ (0.60) | $ 0.09 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Taxes [Abstract] | ||||
Income tax benefit | $ 0 | $ 0 | $ 0 | $ 0 |
Accumulated Other Comprehensi59
Accumulated Other Comprehensive Loss (Summary Of Changes In Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
As of December 31, 2016 | $ (9,862) | |||
Foreign currency translation adjustment | $ 1,422 | $ (704) | 1,721 | $ 473 |
As of June 30, 2017 | (8,141) | (8,141) | ||
Foreign Currency Translation Adjustment [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
As of December 31, 2016 | (9,862) | |||
Foreign currency translation adjustment | 1,721 | |||
As of June 30, 2017 | $ (8,141) | $ (8,141) |
Legal Contingencies (Narrative)
Legal Contingencies (Narrative) (Details) - Purported Class Action Lawsuit [Member] | 1 Months Ended |
Feb. 28, 2017lawsuititem | |
Commitments And Contingencies [Line Items] | |
Number of lawsuits | 2 |
Number of lawsuits after consolidation | 1 |
Officers [Member] | |
Commitments And Contingencies [Line Items] | |
Number of individuals named | item | 2 |