Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Oct. 29, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | ARATANA THERAPEUTICS, INC. | |
Entity Central Index Key | 1,509,190 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Trading Symbol | petx | |
Entity Common Stock, Shares Outstanding | 48,624,202 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 54,285 | $ 66,868 |
Short-term investments | 1,736 | 747 |
Accounts receivable, net | 19,577 | 2,406 |
Inventories | 13,732 | 13,576 |
Prepaid expenses and other current assets | 1,738 | 1,642 |
Total current assets | 91,068 | 85,239 |
Property and equipment, net | 811 | 1,166 |
Goodwill | 40,846 | 41,295 |
Intangible assets, net | 6,228 | 6,616 |
Restricted cash | 351 | 350 |
Other long-term assets | 499 | 526 |
Total assets | 139,803 | 135,192 |
Current liabilities: | ||
Accounts payable | 657 | 7,451 |
Accrued expenses and other current liabilities | 5,248 | 3,712 |
Licensing and collaboration commitment | 200 | 7,000 |
Current portion – loans payable | 22,583 | 17,333 |
Total current liabilities | 28,688 | 35,496 |
Loans payable, net | 2,660 | 19,492 |
Other long-term liabilities | 60 | 70 |
Total liabilities | 31,408 | 55,058 |
Commitments and contingencies (Notes 5 and 16) | ||
Stockholders' equity: | ||
Common stock, $0.001 par value; 100,000,000 shares authorized at September 30, 2018 and December 31, 2017, and 47,981,034 and 42,532,725 issued and outstanding at September 30, 2018 and December 31, 2017, respectively | 48 | 43 |
Treasury stock, at cost; 92,099 and 80,916 shares at September 30, 2018 and December 31, 2017, respectively | (1,162) | (1,107) |
Additional paid-in capital | 349,671 | 321,599 |
Accumulated deficit | (232,604) | (233,316) |
Accumulated other comprehensive loss | (7,558) | (7,085) |
Total stockholders' equity | 108,395 | 80,134 |
Total liabilities and stockholders' equity | $ 139,803 | $ 135,192 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2018 | Dec. 31, 2017 |
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 | 47,981,034 | 42,532,725 |
Common stock, shares outstanding | 47,981,034 | 42,532,725 |
Treasury stock, shares | 92,099 | 80,916 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Revenues | ||||
Total revenues | $ 21,555 | $ 6,163 | $ 30,506 | $ 15,116 |
Costs and expenses | ||||
Cost of product sales | 2,172 | 3,690 | 4,013 | 10,475 |
Royalty expense | 1,346 | 441 | 3,067 | 1,117 |
Research and development | 1,507 | 3,220 | 5,288 | 11,574 |
Selling, general and administrative | 7,010 | 6,910 | 21,418 | 21,323 |
Amortization of intangible assets | 129 | 85 | 388 | 235 |
In-process research and development | 500 | |||
Total costs and expenses | 12,164 | 14,346 | 34,674 | 44,724 |
Income (loss) from operations | 9,391 | (8,183) | (4,168) | (29,608) |
Other income (expense) | ||||
Interest income | 159 | 138 | 441 | 311 |
Interest expense | (716) | (870) | (2,357) | (2,601) |
Other expense, net | (1) | (5) | (4) | (14) |
Total other expense | (558) | (737) | (1,920) | (2,304) |
Net income (loss) | $ 8,833 | $ (8,920) | $ (6,088) | $ (31,912) |
Net income (loss) per share, basic and diluted | $ 0.19 | $ (0.21) | $ (0.13) | $ (0.80) |
Weighted average shares outstanding, basic | 47,310,408 | 42,445,553 | 46,128,197 | 39,820,573 |
Weighted average shares outstanding, diluted | 47,485,384 | 42,445,553 | 46,128,197 | 39,820,573 |
Licensing and Collaboration [Member] | ||||
Revenues | ||||
Total revenues | $ 18,385 | $ 2,192 | $ 21,982 | $ 3,899 |
Product Sales [Member] | ||||
Revenues | ||||
Total revenues | $ 3,170 | $ 3,971 | $ 8,524 | $ 11,217 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Consolidated Statements of Comprehensive Loss [Abstract] | ||||
Net income (loss) | $ 8,833 | $ (8,920) | $ (6,088) | $ (31,912) |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustment | 801 | (473) | 2,522 | |
Other comprehensive income (loss) | 801 | (473) | 2,522 | |
Comprehensive income (loss) | $ 8,833 | $ (8,119) | $ (6,561) | $ (29,390) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Cash flows from operating activities | ||
Net loss | $ (6,088) | $ (31,912) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Stock-based compensation expense | 3,835 | 5,457 |
Depreciation and amortization expense | 743 | 928 |
Non-cash interest expense | 418 | 369 |
Market value adjustments to inventories | 1,218 | 394 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | (17,171) | (9,349) |
Inventories | (1,374) | 1,695 |
Prepaid expenses and other current assets | (96) | 185 |
Other assets | 12 | 100 |
Accounts payable | (6,794) | (4,033) |
Accrued expenses and other liabilities | 1,529 | (2,362) |
Net cash used in operating activities | (23,768) | (38,528) |
Cash flows from investing activities | ||
Milestone payments for intangible assets | (3,000) | |
Purchases of property and equipment, net | (16) | |
Purchase of investments | (2,978) | (2,984) |
Proceeds from maturities of investments | 1,989 | 2,486 |
Net cash used in investing activities | (989) | (3,514) |
Cash flows from financing activities | ||
Taxes paid for awards vested under equity incentive plans | (55) | (11) |
Proceeds from stock option exercises | 12 | 157 |
Proceeds from issuance of common stock, net of commissions and underwriter fees | 24,394 | 27,463 |
Payments for common stock issuance costs | (164) | (345) |
Payments for debt issuance costs | (210) | |
Payments on loans payable | (12,000) | (3,500) |
Net cash provided by financing activities | 12,187 | 23,554 |
Effect of exchange rate on cash | (12) | 30 |
Net decrease in cash, cash equivalents and restricted cash | (12,582) | (18,458) |
Cash, cash equivalents and restricted cash, beginning of period | 67,218 | 87,657 |
Cash, cash equivalents and restricted cash, end of period | 54,636 | 69,199 |
Supplemental disclosure of cash flow information | ||
Cash paid for interest | $ 2,011 | $ 2,237 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2018 | |
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 United States 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, 2017 and the notes thereto in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on March 14, 2018 (“2017 Annual Report”). 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 $232,604 as of September 30, 2018 . 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 at September 30, 2018, will be sufficient to fund operations and debt obligations for at least one year from the issuance of these consolidated financial statements. As disclosed in Note 8 to the consolidated financial statements, the Company has a term loan and a revolving credit facility with an aggregate principal balance of $24,500 as of September 30, 2018. 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 September 30, 2018, was approximately $12,250 . If the minimum liquidity covenant is not met, the Company may be required to repay the loans prior to their scheduled maturity dates. At September 30, 2018, the Company was in compliance with all financial covenants. The Company expects continued investment related to commercial activities, including procuring of inventories needed to supply the marketplace, investing to further support adoption and awareness of the Company’s marketed products and payment of milestones related to approval and commencement of commercial sales. This will impact the minimum liquidity that needs to be maintained under the loan agreement. As a result, if the Company cannot generate sufficient cash from operations in the future, the Company may seek to fund its operations through corporate collaborations and licensing arrangements, or other sources, such as public or private equity offerings and 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, the Company would be forced to delay, reduce, or eliminate certain research and development programs, reduce or eliminate discretionary operating expenses or grant rights to develop and market therapeutics or therapeutic candidates that it would otherwise prefer to develop and market itself, which could otherwise adversely affect its business prospects. The Company’s failure to raise capital, as and when needed, would have a negative impact on its financial condition and its ability to pursue its business strategies as this capital is necessary for it to perform the research and development and commercial activities required to generate future revenue streams. Consolidation The Company’s consolidated financial statements include its financial statements and those of its wholly-owned subsidiaries . Intercompany balances and transactions are eliminated in consolidation. Prior to July 1, 2018, the functional currency of the Company’s foreign subsidiary was the local currency of the country where the subsidiary is located. Foreign currency denominated assets and liabilities of the foreign subsidiary were translated into U.S. dollars and translation gains and losses were included in accumulated other comprehensive income (loss) in the consolidated balance sheets. S ignificant changes in economic facts and circumstances in the operations of the foreign subsidiary had occurred resulting in a change in the functional currency of this subsidiary. Accordingly, effective July 1, 2018, the functional currency of the Company’s foreign subsidiary was changed from the local currency to the U.S. dollar, which is the Company’s reporting currency. Effective as of the date of the change, t ranslation adjustments for prior periods were not removed from equity and the translated amounts for nonmonetary assets at the end of the prior period became the accounting basis for those assets in the period of the change and subsequent periods. Future gains or losses from the remeasurement of monetary assets and liabilities will be recorded in earnings. 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. Revenue from Contracts with Customers Effective January 1, 2018, the Company adopted the Accounting Standards Codification Topic (“ASC”) 606 “Revenue from Contracts with Customers” (“ASC 606”) using the modified retrospective transition method. Prior to January 1, 2018, the Company recognized revenue using the guidance of ASC 605 “Revenue Recognition” (“ASC 605”). The Company recognizes revenue when its customer obtains control of the promised goods or services, in an amount that reflects the consideration which the Company expects to be entitled to in exchange for those goods or services. The Company determines revenue recognition from contracts with customers as follows: · identify the contract(s); · identify the performance obligations in the contract(s); · determine the transaction price; · allocate the transaction price to the performance obligations in the contract; and · recognize revenue wh en (or as) the Company satisfies a performance obligation. The Company’s principal revenue streams and their respective accounting treatments are discussed below and further in Note 2, “Revenue” : (i) Product Sales, Net The Company sells its products to its customers who could either be the end users (such as veterinarians, clinics, or animal hospitals) of the product or distributors who subsequently resell the Company’s products to end users. Revenues from product sales are recognized when the customer obtains control of the Company’s product, which occurs at a point in time, upon delivery to the customer. The Company’s delivery of its products to customers constitutes a single performance obligation as there are no other promises to deliver goods or services beyond what is specified in each accepted customer order. Product sales are recorded net of applicable reserves for variable consideration, including product returns, allowances, discounts, and rebates . Reserves for Variable Consideration Revenues from product sales are recorded at the net sales price (transaction price), which includes estimates of variable consideration for which reserves are established. Components of variable consideration include product returns, allowances, discounts, and rebates. These reserves, as detailed below, are based on the amounts earned, or to be claimed on the related sales, and are classified as reductions of accounts receivable (generally, for credits that the Company issues for free goods provided by distributors to end customers in conjunction with promotional programs) or a current liability (generally, reserves for products that remained in the distribution channel inventories at each reporting period end that the Company expects the distributors will provide to end customers free of charge in conjunction with promotional programs). These estimates take into consideration a range of possible outcomes for the expected value (probability-weighted estimate) or relevant factors such as current contractual and statutory requirements, specific known market events and trends, industry data, and forecasted customer buying and payment patterns. Overall, these reserves reflect the Company’s best estimates of the amount of consideration to which it is entitled based on the terms of the respective underlying contracts. The amount of variable consideration included in the transaction price may be constrained and is included in the net sales price only to the extent that it is probable that a significant reversal in the amount of the cumulative revenue recognized under the contract will not occur in a future period. Actual amounts of consideration ultimately received may differ from the Company’s estimates. If actual results in the future vary from the Company’s estimates, the Company will adjust these estimates, which would affect net product revenue and earnings in the period such variances become known. Product Returns Consistent with the industry practice, the Company generally offers customers a limited right of return of damaged or expired product that has been purchased from the Company or the Company’s distributors in exchange for an unexpired product. Exchanges due to expiry are typically allowed for a period of six months after the product’s expiration date. The Company estimates the amount of its product sales that may be returned by its customers and records these estimates as a reduction of product revenues in the period the related product revenues are recognized, as well as within accrued expenses and other current liabilities, net in the consolidated balances sheets. The Company currently estimates product return liabilities using available industry data, its own sales data and data provided by the Company’s distributors such as the inventories remaining in the distribution channel. The Company has received an immaterial amount of returns to date and believes that returns of its products in future periods will be minimal. The Company does not record a return asset associated with the returned damaged or expired goods because such asset is deemed to be fully impaired at the time of product return. Sales Discounts and Allowances The Company compensates its distributors for sales order management, data and distribution and other services through sales discounts and allowances. However, such services are not distinct from the Company’s sale of products to distributors and, therefore, these discounts and allowances are recorded as a reduction of revenue in the consolidated statements of operations, as well as a reduction to accounts receivable, net in the consolidated balance sheets. (ii) Licensing and Collaboration Revenues Revenues derived from product out-licensing arrangements typically consist of an initial non-refundable, up-front payment at inception of the license, subsequent milestone payments contingent on the achievement of certain regulatory, development and commercial milestones, and royalties on the net sales of the Company’s products. Licenses of Intellectual Property If the license to the Company’s intellectual property is determined to be distinct from the other performance obligations identified in the contract, the Company recognizes revenue from non-refundable, up-front fees allocated to the license when the license is transferred to the customer and the customer is able to use and benefit from the license. For licenses that are bundled with other promises, the Company utilizes judgment to assess the nature of the combined performance obligation to determine whether the combined performance obligation is satisfied over time or at a point in time and, if over time, the appropriate method of measuring progress for purposes of recognizing revenue from non-refundable, up-front fees. The Company will evaluate the measure of progress each reporting period and, if necessary, adjust the measure of performance and related revenue recognition. Milestones Revenues from achievement of milestones generally represent a form of variable consideration as the payments are likely to be contingent on the occurrence of future events. The Company estimates milestones probable to be achieved and includes in the transaction price based on either the expected value (probability-weighted estimate) or most likely amount approach. The most likely amount is used by the Company for milestone payments with a binary outcome (i.e., the Company receives all or none of the milestone payment). Milestone payments that are not within the control of the Company or the customer, such as regulatory approvals, are not considered probable of being achieved until those approvals are received. The estimated milestone-related variable consideration is only recognized as revenue when the related performance obligation is satisfied and the Company determines that it is probable that there will not be a significant reversal of cumulative revenue recognized in future periods (i.e. variable consideration constraint). At the end of each subsequent reporting period, the Company re-evaluates the probability of achievement of such milestones and any related constraint, and if necessary, adjusts its estimate of the overall transaction price. Any such adjustments are recorded on a cumulative catch-up basis, which would affect licensing and collaboration revenues and earnings in the period of adjustment. For milestones that are not able to overcome the variable consideration constraint, that are not considered probable or that are determined to be sales-based or usage royalties, as described later, the Company recognizes revenue when the milestones are achieved. Sales-Based Royalty Revenue The Company’s sales-based royalty revenue could consist of sales-based milestones or a percentage of net sales royalties. The Company recognizes sales-based royalties related to the Company’s out-licensed intellectual property when (or as) the later of the following events occurs: · the sale occurs; or · the performance obligation to which some or all of the sales-based or usage-based royalty has been allocated has been satisfied (or partially satisfied). Sales-based royalties revenues recorded by the Company are based on the licensee’s or sub-licensee’s sales that occurred during the relevant period. Differences between actual and estimated royalty revenues are adjusted in the period in which they become known, typically in the following quarter. If the Company is unable to reasonably estimate royalty revenue or does not have access to the information, then the Company records royalty revenue when the information needed for a reliable estimate becomes available. Royalty revenue is included in licensing and collaboration revenue in the consolidated statements of operations. The Company recognizes revenue from sales-based milestones when the milestones are achieved. Property and Equipment, Net Property and equipment is recorded at historical cost, net of accumulated depreciation and amortization of $1,545 and $1,188 , as of September 30, 2018 and December 31, 2017 , 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 superseded the revenue recognition requirements in ASC 605 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. The Company adopted this guidance on January 1, 2018. The impact of adoption is described further in Note 2 , “Revenue.” 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 on a modified retrospective transition. The Company is currently assessing the effect that adoption of this guidance will have on its consolidated financial statements. The Company currently expects that its operating lease commitments will be subject to the new guidance which will result in recognition of operating lease liabilities and right-of-use assets in the consolidated balance sheets upon the adoption of the new guidance. However, the Company’s assessment of the impact of adoption, which may be material, is still ongoing. Compensation – Stock Compensation: Scope of Modification Accounting 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. The Company adopted this guidance on January 1, 2018, and the adoption did not have a material impact on its consolidated financial statements. Compensation – Stock Compensation : Improvements to Nonemployee Share-Based Payment Accounting In June 2018, the FASB issued guidance that largely aligns the accounting for share-based payment awards issued to employees and nonemployees. Under the new guidance, the existing employee guidance generally will apply to nonemployee share-based transactions, with the exception of specific guidance related to inputs to an option pricing model and the attribution of compensation cost. The cost of nonemployee awards will continue to be recorded as if the grantor had paid cash for the goods or services. In addition, the contractual term will be able to be used in lieu of an expected term in the option-pricing model for nonemployee awards. 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, including in interim periods, but no earlier than an entity’s adoption of ASC 606 . The Company is currently assessing the effect that adoption of this guidance will have on its consolidated financial statements. Intangibles – Goodwill and Other – Internal-Use Software In August 2018, the FASB issued guidance that largely aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The guidance provides criteria for determining which implementation costs to capitalize as an asset related to the service contract and which costs to expense. The capitalized implementation costs are required to be expensed over the term of the hosting arrangement. The guidance also clarifies the presentation requirements for reporting such costs in the entity’s financial statements. The guidance is effective for financial statements issued for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted, including adoption in any interim period. The Company is currently assessing the effect that adoption of this guidance will have on its consolidated financial statements. Fair Value Measurements In August 2018, the FASB issued guidance related to disclosure requirements for fair value measurements. This guidance eliminates, modifies and adds disclosure requirements for fair value measurements. The guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted. The Company is currently assessing the effect that adoption of this guidance will have on its consolidated financial statements. |
Revenue
Revenue | 9 Months Ended |
Sep. 30, 2018 | |
Revenue [Abstract] | |
Revenue | 2. Revenue Adoption of ASC 606 On January 1, 2018, the Company adopted ASC 606 using the modified retrospective method applied to those contracts that were not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under ASC 606, while prior period amounts are not adjusted and continue to be reported in accordance with the Company’s historic accounting under ASC 605. The Company recorded a net reduction of $6,800 , net of $0 tax, to the opening balance of accumulated deficit within stockholders’ equity, and a corresponding reduction to licensing and collaboration commitment as of January 1, 2018, due to the cumulative impact of adopting ASC 606, with the impact solely related to the Company’s variable consideration within its Collaboration Agreement (as defined below) with Elanco Animal Health, Inc. (“Elanco”) . Under previous guidance of ASC 605, this commitment was fully deferred and recognized as a liability until such time as payments under the obligation were made, or any unpaid portion would have been recognized as revenue when the commitment expired on December 31, 2018. Under ASC 606, this obligation is accounted for as variable consideration. At the adoption date, the Company recorded a contract liability based on the amount of the obligation expected to be paid, which was $200 . This amount was determined based on management estimates, which included consideration of Elanco’s development plan. Since inception of the arrangement, no amounts had been paid out or submitted to the Company for reimbursement. Had the Company still applied ASC 605 for the three and nine months ended September 30, 2018, revenues would have been the same as compared to ASC 606. Disaggregated Revenues The following table presents the Company’s revenues disaggregated by revenue source. All product sales are derived from United States sources and sales taxes are excluded from revenues. Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 (1) 2018 2017 (1) Revenues Licensing and collaboration revenue GALLIPRANT $ 18,385 $ 2,192 $ 21,982 $ 3,899 Total licensing and collaboration revenue 18,385 2,192 21,982 3,899 Product sales NOCITA $ 1,916 $ 717 $ 5,219 $ 1,681 ENTYCE 1,254 — 3,305 — GALLIPRANT — 3,248 — 9,494 Other — 6 — 42 Total product sales 3,170 3,971 8,524 11,217 Total revenues $ 21,555 $ 6,163 $ 30,506 $ 15,116 (1) Prior period amounts have not been adjusted under the modified retrospective method. Product Sales The Company generates product sales revenues primarily by selling its marketed therapeutics directly to end users (such as veterinarians, clinics, or animal hospitals) and distributors. Direct to end user sales revenues consist primarily of NOCITA sales, and distributor product sales revenues consist primarily of ENTYCE sales. As of September 30, 2018 and December 31, 2017, reserves for product returns related to NOCITA and ENTYCE were $265 and $90 , respectively. Licensing and Collaboration Revenue The Company generates licensing and collaboration revenue solely from the Elanco Collaboration, License, Development and Commercialization Agreement (as amended, the “Collaboration Agreement”) and Co-Promotion Agreement (collectively, “the Elanco Agreements”) as follows: · sales-based royalties from the Elanco Agreements consisting of a percentage of net sales of GALLIPRANT by Elanco that are recognized as revenue as the underlying sales of GALLIPRANT are made by Elanco; · sales-based royalties from the Collaboration Agreement consisting of sales-based milestones of GALLIPRANT by Elanco that are recognized as revenue if and when the sales threshold is achieved by Elanco; · regulatory milestones from the Collaboration Agreement that are recognized as revenue if and when achieved; and · variable consideration related to the Collaboration Agreement licensing and collaboration commitment (contract liability) that is recognized as revenue when it is not subject to variable consideration constraint. Reconciliation of Contract Balances The change in contract liability balances for the nine months ended September 30, 2018, was as follows: Licensing and Collaboration Commitment 2018 As of January 1, $ 7,000 ASC 606 adoption (6,800) Revenue recognized — Payments made — As of the end of period, $ 200 The Company recorded a net reduction of $6,800 , net of $0 tax, to the opening balance of accumulated deficit within stockholders' equity as of January 1, 2018, due to the cumulative impact of adopting ASC 606. The Company reviewed the current facts and circumstances and concluded that no changes to the previously estimated transaction price for the Collaboration Agreement at September 30, 2018, are required, and therefore, no change in variable consideration was recognized as revenue for the three and nine months ended September 30, 2018. Unsatisfied Performance Obligations As of the adoption date of ASC 606 and September 30, 2018 , the Company had no unsatisfied performance obligations. Significant Judgements The Company’s significant judgements relate to the updating of the transaction price and variable consideration of the Collaboration Agreement. The Company used current facts and circumstances to calculate the updated transaction price using the expected value (probability weighted estimate). Facts and circumstances considered included the current Elanco development plan for GALLIPRANT. Practical Expedients and Exemptions The Company has deemed that there is no significant financing component present in the agreements with the Company’s customers as trade payment terms with its customers do not exceed one year. The Company expenses sales commissions when incurred because the amortization period would have been one year or less. These costs are recorded within selling, general and administrative expenses. |
Fair Value of Financial Assets
Fair Value of Financial Assets and Liabilities | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value of Financial Assets and Liabilities [Abstract] | |
Fair Value of Financial Assets and Liabilities | 3. Fair Value of Financial Assets and Liabilities Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis The carrying values and estimated fair values of the Company’s financial assets which are measured at fair value on a recurring basis were as follows: Fair Value Measurements as of Carrying September 30, 2018 Using: Value Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Certificates of deposit $ 8,680 $ — $ 8,680 $ — $ 8,680 Short-term investments: Short-term marketable securities - certificates of deposit 1,736 — 1,736 — 1,736 $ 10,416 $ — $ 10,416 $ — $ 10,416 Fair Value Measurements as of Carrying December 31, 2017 Using: Value Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Certificates of deposit $ 8,964 $ — $ 8,964 $ — $ 8,964 Short-term investments: Short-term marketable securities - certificates of deposit 747 — 747 — 747 $ 9,711 $ — $ 9,711 $ — $ 9,711 The financial assets above are measured at fair value using quoted prices in active markets for identical assets (Level 1); significant other observable inputs (Level 2); and significant unobservable inputs (Level 3). 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. The Company had no financial liabilities measured at fair value on a recurring basis as of September 30, 2018 and December 31, 2017. Financial Assets and Liabilities that are not Measured at Fair Value on a Recurring Basis The carrying values and estimated fair values of the Company’s financial liabilities which are not measured at fair value on a recurring basis were as follows: September 30, 2018 Carrying Value Fair Value Liabilities: Loans payable (Level 2) $ 25,243 $ 24,801 December 31, 2017 Carrying Value Fair Value Liabilities: Loans payable (Level 2) $ 36,825 $ 36,973 Loans payable values above include both the current and the long-term loans balances as of September 30, 2018 and December 31, 2017. The financial liabilities above are measured at fair value using quoted prices in active markets for identical assets (Level 1); significant other observable inputs (Level 2); and significant unobservable inputs (Level 3). Certain estimates and judgments were required to develop the fair value amounts. The fair value amounts shown above are 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. The Company had no material financial assets not measured at fair value on a recurring basis as of September 30, 2018 and December 31, 2017. |
Investments
Investments | 9 Months Ended |
Sep. 30, 2018 | |
Investments [Abstract] | |
Investments | 4. Investments Marketable Securities Marketable securities consisted of the following: September 30, 2018 Gross Gross Amortized Unrealized Unrealized Fair Cost Losses Losses Value Short-term marketable securities: Certificates of deposit $ 1,736 $ — $ — $ 1,736 Total $ 1,736 $ — $ — $ 1,736 December 31, 2017 Gross Gross Amortized Unrealized Unrealized Fair Cost Losses Losses Value Short-term marketable securities: Certificates of deposit $ 747 $ — $ — $ 747 Total $ 747 $ — $ — $ 747 At September 30, 2018 and December 31, 2017 , 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 | 9 Months Ended |
Sep. 30, 2018 | |
Inventories [Abstract] | |
Inventories | 5. Inventories Inventories are stated at the lower of cost and net realizable value and consisted of the following: September 30, 2018 December 31, 2017 Raw materials $ 243 $ 1,132 Work-in-process 8,980 12,322 Finished goods 4,509 122 $ 13,732 $ 13,576 During the three and nine months ended September 30, 2018 , the Company recognized inventory valuation adjustment losses in cost of product sales in the amount of $883 and $1,218 , respectively, from application of the lower of cost and net realizable value . The losses primarily related to ENTYCE inventories that were written down. Unfavorable outcomes of the Company’s ENTYCE commercialization efforts could result in additional inventory write downs in future periods. During the three and nine months ended September 30, 2017, the Company recognized inventory valuation adjustment losses in cost of product sales in the amount of $342 and $394 , respectively, from application of the lower of cost and net realizable value . The losses related to GALLIPRANT inventories that were written down. As of December 31, 2017, raw materials included $777 of GALLIPRANT inventories. As part of the manufacturing transfer of GALLIPRANT (Note 10), the Company transferred these raw materials to Elanco, and was reimbursed for the raw materials by Elanco during the first quarter of 2018. As of September 30, 2018 and December 31, 2017, the Company had non-cancellable open orders for the purchase of inventories of approximately $ 1,154 , which is expected to be paid in the next twelve months, and $7,132 , respectively. |
Goodwill
Goodwill | 9 Months Ended |
Sep. 30, 2018 | |
Goodwill and Intangible Assets [Abstract] | |
Goodwill | 6. 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 completed its annual goodwill impairment testing during the third quarter of 2018. The Company elected to bypass the qualitative assessment. The Company determined as of the testing date that it consisted of one operating segment, which is comprised of one reporting unit. In performing the quantitative goodwill impairment test, the Company determined that its fair value, determined to be its market capitalization, was greater than its carrying value, determined to be stockholders’ equity. Based on this result, the Company determined there was no impairment of goodwill during the third quarter of 2018. Goodwill as of September 30, 2018 , was as follows: Gross Impairment Net Carrying Value Losses Carrying Value Goodwill $ 40,846 $ — $ 40,846 The change in the net book value of goodwill for the nine months ended September 30, 2018 , was as follows: 2018 As of January 1, $ 41,295 Effect of foreign currency exchange (449) As of the end of the period, $ 40,846 |
Intangible Assets, Net
Intangible Assets, Net | 9 Months Ended |
Sep. 30, 2018 | |
Goodwill and Intangible Assets [Abstract] | |
Intangible Assets, Net | 7. Intangible Assets, Net The change in the net book value of intangible assets for the nine months ended September 30, 2018 , was as follows: 2018 As of January 1, $ 6,616 Amortization expense (388) As of the end of the period, $ 6,228 The Company recognized amortization expense of $129 and $388 for the three and nine months ended September 30, 2018 , respectively, and $85 and $235 for the three and nine months ended September 30, 2017, respectively. Amortized Intangible Assets Amortized intangible assets as of September 30, 2018 , were as follows (excluding intellectual property rights for formerly marketed products that were fully impaired in prior periods): Gross Net Weighted Carrying Accumulated Carrying Average Value Amortization Value Useful Life Intellectual property rights for currently marketed products $ 7,000 $ 772 $ 6,228 14.1 Years Amortized intangible assets as of December 31, 2017, were as follows: Gross Net Weighted Carrying Accumulated Carrying Average Value Amortization Value Useful Life Intellectual property rights for currently marketed products $ 7,000 $ 384 $ 6,616 14.1 Years Intellectual property rights for formerly marketed products 38,652 38,652 — N/A $ 45,652 $ 39,036 $ 6,616 Unfavorable outcomes of the Company’s development activities or the Company’s estimates of the market opportunities for its therapeutic candidates could result in additional impairment charges in future periods. Intellectual Property Rights for Currently Marketed Products As of September 30, 2018 and December 31, 2017, intellectual property rights for currently marketed products relate to intangible assets capitalized for NOCITA, GALLIPRANT and ENTYCE in conjunction with approval/post-approval milestone payments made under the Company's licensing agreements. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2018 | |
Debt [Abstract] | |
Debt | 8. Debt Loan and Security Agreements Effective as of October 16, 2015, the Company and its wholly-owned subsidiary Vet Therapeutics, Inc. (the “Borrowers”), entered into a Loan and Security Agreement (“Loan Agreement”), with Pacific Western Bank, or Pacific Western, as a collateral agent and Oxford Finance, LLC (collectively, the “Lenders”), pursuant to which the Lenders agreed to make available to the Company a term loan in an aggregate principal amount up to $35,000 and a revolving credit facility in an aggregate principal amount up to $5,000 subject to certain conditions to funding. The term loan and the revolving credit facility are secured by all of the 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 $19,500 under the term loan facility and $5,000 under the revolving credit facility at September 30, 2018 . D uring the three and nine months ended September 30, 2018 , the Company recognized interest expense of $716 and $2,357 , respectively, and during the three and nine months ended September 30, 2017, the Company recognized interest expense of $870 and $2,601 , respectively. Amortization of debt issuance costs and accretion of final payment and termination fees, recognized as interest expense, were $139 and $417 for the three and nine months ended September 30, 2018 , respectively, and $131 and $370 for the three and nine months ended September 30, 2017, respectively. 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. 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, extended 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 provided 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 was due upon the original revolving maturity date, October 16, 2017 , and was paid on October 17, 2017 . The term loan and the revolving credit facility bear interest per annum at the greater of (i) 6.91% or (ii) 3.66% plus the prime rate, which is customarily defined. As of September 30, 2018 , the interest rate for the term loan and the revolving credit facility was 8.91% . In addition, the Company is obligated to pay a final payment fee equal to 3.30% of the principal amount of such term loan, if the term loan is being prepaid or repaid with respect to the term loan upon the earliest to occur of October 16, 2019, the acceleration of any term loan or the prepayment of a term loan. The Company will also be obligated to pay an unused-line fee equal to 0.25% per annum of the average unused portion of the revolving credit facility. The Loan Agreement contains customary representations and warranties and customary affirmative and negative covenants, including, among others, limits or restrictions on the 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 in the Company’s business, 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 September 30, 2018 , was approximately $ 12,250 . 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 September 30, 2018 , the Company was in compliance with all financial covenants. The Company’s loans payable balance as of September 30, 2018 , was as follows: Principal amounts Term loan, 8.91% , principal payments from February 1, 2018 through October 1, 2019 $ 19,500 Revolving credit facility, 8.91% , principal payments from November 1, 2018 through October 1, 2019 5,000 Add: accretion of final payment and termination fees 933 Less: unamortized debt issuance costs (190) As of the end of the period $ 25,243 As of September 30, 2018 , $ 18,000 and $4,583 related to the term loan and the revolving credit facility, respectively, were classified as current portion – loans payable. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 9 Months Ended |
Sep. 30, 2018 | |
Accrued Expenses and Other Current Liabilities [Abstract] | |
Accrued Expenses and Other Current Liabilities | 9. Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consisted of the following: September 30, 2018 December 31, 2017 Payroll and related expenses $ 2,081 $ 2,314 Professional fees 644 208 Royalty expense 1,356 718 Interest expense 178 249 Research and development costs 107 5 Other 882 218 Total $ 5,248 $ 3,712 |
Agreements
Agreements | 9 Months Ended |
Sep. 30, 2018 | |
Agreements [Abstract] | |
Agreements | 10. 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 to $4,000 and $3,000 , respectively, 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. As of September 30, 2018 , the Company had paid $11,500 in milestone payments since execution of the RaQualia Agreements , and no milestone payments were accrued . No milestones were achieved during the three and nine months ended September 30, 2018 . It is possible that a milestone related to the RaQualia Agreements will be achieved within the next twelve months totaling $2,000 . Pacira Pharmaceuticals, Inc. (“Pacira”) On December 5, 2012, the Company entered into an Exclusive License, Development, and Commercialization Agreement with Pacira (the “Pacira License Agreement”) that granted the Company global rights for development and commercialization of licensed animal health products for NOCITA ® (also known as AT-003). On the same date, the Company also entered into a supply agreement with Pacira (the “Pacira Supply Agreement”, and together with the Pacira License Agreement, the “Pacira Agreements”). On July 5, 2018 (the “Effective Date”), the Company and Pacira entered into an amendment and restatement of the Pacira License Agreement (“A&R License Agreement”) and an amendment and restatement of the Pacira Supply Agreement (the “A&R Supply Agreement”, and together with the A&R Pacira Agreement, the “Amended Agreements”). Under the A&R Supply Agreement, Pacira has agreed to manufacture and supply the licensed product in a 10 mL vial size in addition to the 20 mL vial size that is currently supplied to the Company. The supply price for the 10 mL vial size will remain fixed until December 31, 2021. Prior to December 31, 2021, the Company and Pacira have agreed to negotiate in good faith the applicable terms related to the 10 mL vial, including the price, for after December 31, 2021. If the Company and Pacira are unable to reach agreement, then as of January 1, 2022 and on each anniversary thereafter during the term of the A&R Supply Agreement, the price for the 10 mL vial will be automatically increased by a low single-digit percentage. The A&R License Agreement amended various sections of the Pacira License Agreement, including milestone payments and royalties, to incorporate the introduction of the 10 mL vial size. Prior to December 31, 2021, the Company will not be obligated to pay any royalty payments to Pacira on the sales of the 10 mL vial and thereafter, the Company and Pacira have agreed to negotiate in good faith the applicable terms relating to the 10 mL vial in accordance with the A&R Supply Agreement. The tiered royalties on the Company’s product sales of 20 mL vials remain unchanged. In addition, the A&R License Agreement reduces the annual net sales thresholds for achieving each of the potential commercial milestone payments owed to Pacira. The remaining $40,000 of commercial milestones per the A&R License Agreement begin to be triggered once NOCITA annual net sales reach $50,000 with the final tier being owed to Pacira once NOCITA annual net sales reach $250,000 . Further, the A&R License Agreement lowered the minimum annual revenue payment to be provided to Pacira by the Company and delayed by one year the first period in which this minimum annual revenue payment requirement would be triggered such that the period is now expected to commence on January 1, 2023. The definition of a competing product was specified and narrowed to those injectable analgesic products preventing pain for at least forty-eight to seventy-two hours post-surgery as an active pharmaceutical ingredient labelled for the control of post-operative pain for surgical veterinary use. The term of the A&R License Agreement was extended with the initial term commencing as of the new Effective Date. As of September 30, 2018 , the Company had paid $2,500 in milestone payments since execution of the Pacira License Agreement , and no milestone payments were accrued . No milestones were achieved during the three and nine months ended September 30, 2018 . The Company does not expect to achieve any milestones related to the A&R License Agreement in the next twelve months . Elanco GALLIPRANT On April 22, 2016, the Company entered into the Collaboration Agreement pursuant to which the Company granted Elanco rights to develop, manufacture, market and commercialize the Company’s products based on licensed grapiprant rights and technology , including GALLIPRANT (collectively, “Grapiprant Products”) . Pursuant to the Collaboration Agreement, Elanco will have exclusive rights globally outside the United States and co-promotion rights with the Company in the United States during the term of the Collaboration Agreement. Under the terms of the Collaboration Agreement, the Company received a non-refundable, non-creditable upfront payment of $45,000 . The Company is eligible to receive a $4,000 milestone payment upon European approval of a Grapiprant Product for the treatment of pain and inflammation, another $4,000 payment upon achievement of a development milestone related to the manufacturing of a Grapiprant Product from an alternate supply source, 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 was responsible for all development activities required to obtain the first registration or regulatory approval for a Grapiprant Product for use in dogs in each of the European Union (“the EU Product Registration”) and the United States, and Elanco is responsible for all other development activities. First registration for a Grapiprant Product in the United States was achieved before the completion of the Collaboration Agreement and EU Product Registration was achieved in January 2018. In addition, the Company and Elanco have agreed to pay 25% and 75% , respectively, of all third-party development fees and expenses through December 31, 2018, in connection with preclinical and clinical trials necessary for any additional registration or regulatory approval of Grapiprant Products, provided that the Company’s contribution to such development fees and expenses is capped at $7,000 , which was recorded as licensing and collaboration commitment liability in the consolidated balance sheets at December 31, 2017. Upon adoption of ASC 606 (Note 2), the Company relieved $6,800 of its licensing and collaboration commitment liability. The licensing and collaboration commitment liability balance in future periods will be updated at each future reporting date to reflect current facts and circumstances. Any remaining balance 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 was 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 retained 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 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 agreed to purchase from its third-party manufacturer (the “API Batches”). In addition, Elanco 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 provided 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. In September 2017, the Company and Elanco finalized the transfer of the applicable regulatory approvals in the United States and the responsibility for manufacturing of Grapiprant Products to Elanco. In connection with this assumption of manufacturing responsibility, Elanco compensated the Company $10,832 for certain Grapiprant Product inventories and manufacturing considerations. As of September 30, 2018, $15,000 was accrued for a sales milestone earned during the three months ended September 30, 2018. As of September 30, 2018 , the Company had earned $15,000 of milestones since execution of the Collaboration Agreement. The Company will recognize revenue from any additional milestones if and when they are achieved by Elanco. On April 22, 2016, in connection with the Collaboration Agreement, the Company entered into the Co-Promotion Agreement 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). VetStem BioPharma, Inc. (“VetStem”) On June 12, 2014, the Company entered into an Exclusive License Agreement with VetStem (as amended, the “VetStem Agreement”) that granted the Company the exclusive United States rights for commercialization and development of VetStem’s allogeneic stem cells being developed for the treatment of pain and inflammation of canine osteoarthritis. In January 2018, the Company exercised its right to terminate the VetStem Agreement, and on April 19, 2018, the termination became effective. During the nine months ended September 30, 2018 , the Company did not incur any development expenses or milestones . As a result of the termination of the VetStem Agreement, the Company does not anticipate having to reimburse any further development expenses or make milestone payments to VetStem. AskAt Inc. (“AskAt”) AT-019 On February 28, 2018, the Company entered into an Exclusive License Agreement with AskAt (the “AskAt Agreement”) that granted the Company an exclusive global license for development and commercialization of compound AT-019 in the field of animal health. Under the terms of the AskAt Agreement, the Company paid an initial upfront license fee of $500 in the second quarter of 2018. The AskAt Agreement was accounted for as an asset acquisition. On the date of acquisition, the licensed technology had not reached technological feasibility in animal health indications and had no alternative future use in the field of animal health. Accordingly, in-process research and development expense of $500 was recorded upon acquisition in the first quarter of 2018 and paid in the second quarter of 2018. The Company will be required to pay remaining milestone payments of up to $15,500 upon the Company’s achievement of milestones, including $3,000 of development/regulatory milestones and $12,500 of commercial milestones, as well as tiered single digit royalties on the Company’s product sales, if any. The commercial milestones owed to AskAt under the AskAt Agreement begin to be triggered upon the first commercial sale with the final tier being owed to AskAt once annual net sales reach $100,000 . Milestones, at the discretion of the Company, can be paid 50% in cash and 50% in a number of the Company’s shares as determined per the terms of the AskAt Agreement. As of September 30, 2018 , the Company had not accrued or paid any milestone or royalty payments since execution of the AskAt Agreement. The Company does not expect to achieve any milestones related to the AskAt Agreement in the next twelve months. Collaboration and Option Agreement On February 28, 2018, in connection with the AskAt Agreement, the Company entered into a Collaboration and Option Agreement (the “COA”) with AskAt for animal health research, including a right of first negotiation agreement for multiple therapeutic candidates with potential in pain, allergy and cancer. During the first quarter of 2018, the Company paid an initial upfront option fee of $500 under the terms of the COA, which was recognized as research and development expense in the consolidated statements of operations. |
Common Stock
Common Stock | 9 Months Ended |
Sep. 30, 2018 | |
Common Stock [Abstract] | |
Common Stock | 11. Common Stock Authorized Common Stock As of September 30, 2018 and December 31, 2017, the authorized number of shares of common stock was 100,000,000 , par value $0.001 per share. Common Stock Outstanding As of September 30, 2018 and December 31, 2017, there were 47,981,034 and 42,532,725 shares of the Company’s common stock outstanding, net of 645,753 and 491,861 shares of unvested restricted common stock, respectively. Treasury Stock As of September 30, 2018 and December 31, 2017, there were 92,099 and 80,916 shares of the Company’s common stock held as treasury stock at a cost of $1,162 and $1,107 , respectively. During the nine months ended September 30, 2018 and 2017, 11,183 and 1,342 shares of restricted stock at a cost of $4.96 and $7.88 per share, respectively, were withheld to satisfy employee tax withholding obligations arising in conjunction with the vesting of restricted stock pursuant to the Company’s 2013 Incentive Award Plan (the “2013 Plan”). Shelf Registration Statement On August 4, 2017, the Company filed a shelf registration statement on Form S-3 (Reg. No. 333-219681) (the “Shelf Registration Statement”) with the SEC. The Shelf Registration Statement was declared effective by the SEC on August 16, 2017. The Shelf Registration Statement allows the Company to offer and sell, from time to time, up to $100,000 of common stock, preferred stock, debt securities, warrants, units or any combination of the foregoing in one or more future public offerings. The terms of any future offering would be determined at the time of the offering and would be subject to market conditions and approval by the Company’s Board of Directors. Any offering of securities covered by the Shelf Registration Statement will be made only by means of a written prospectus and prospectus supplement authorized and filed by the Company. At-the-Market Offering Cowen and Company, LLC On December 18, 2017, the Company entered into a Sales Agreement (“Cowen Sales Agreement”) with Cowen and Company, LLC (“Cowen”) pursuant to which the Company may sell from time to time, at its option, up to an aggregate of $50,000 of shares of its common stock through Cowen, as sales agent. Any sales of the shares of common stock would be made under the Company’s effective Registration Statement on Form S-3 (Reg. No. 333-219681), by means of ordinary brokers’ transactions on the Nasdaq Global Market or otherwise. Additionally, under the terms of the Cowen Sales Agreement, the shares of common stock may be sold at market prices, at negotiated prices or at prices related to the prevailing market price. The Company has agreed to pay Cowen a commission of 3% of the gross proceeds from the sale of such shares of common stock. During the three and nine months ended September 30, 2018 , the Company sold 962,053 and 5,144,244 shares of common stock for aggregate net proceeds of $4,863 and $24,230 , after deducting commission fees of $151 and $754 and issuance costs of $21 and $164 , respectively. As of the date of this filing, approximately $24,852 of shares of common stock remained available for sale under the Cowen Sales Agreement. Barclays Capital Inc . (“Barclays”) On October 16, 2015, the Company entered into a sales agreement with 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 through Barclays, as sales agent. Sales of the shares of common stock were made under the Company’s then effective registration statement on Form S-3 (Reg. No. 333-197414), by means of ordinary brokers’ transactions on the Nasdaq Global Market or otherwise. Additionally, under the terms of the Barclays sales agreement, the shares of common stock 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 of common stock. On April 28, 2017, the Company terminated its Barclays sales agreement. As of that date, the Company had sold an aggregate of approximately $18,000 of the $52,000 available to be sold under the Barclays 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 , and the Company received 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 | 9 Months Ended |
Sep. 30, 2018 | |
Stock-Based Awards [Abstract] | |
Stock-Based Awards | 12. Stock-Based Awards 2010 Equity Incentive Plan Activity related to stock options under the 2010 Equity Incentive Plan (the “2010 Plan”) for the nine months ended September 30, 2018 , 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, 2017 57,394 $ 4.22 5.11 $ 73 Granted — — Exercised — — Forfeited — — Expired (4,011) 5.57 Outstanding as of September 30, 2018 53,383 $ 4.12 4.35 $ 82 No stock options have been granted under the 2010 Plan since the effective date of the 2013 Plan. 2013 Plan On January 1, 2018, 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 September 30, 2018 , there were 1,662,687 shares available for future grant under the 2013 Plan. Activity related to stock options under the 2013 Plan for the nine months ended September 30, 2018 , 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, 2017 2,557,143 $ 11.45 7.41 $ 794 Granted 798,000 4.84 Exercised (3,843) 3.14 Forfeited (45,090) 7.51 Expired (64,847) 19.00 Outstanding as of September 30, 2018 3,241,363 $ 9.73 7.26 $ 1,559 For the nine months ended September 30, 2018 , the weighted average grant date fair value of stock options granted was $3.16 . For the nine months ended September 30, 2018 , the total intrinsic value of options exercised was $6 and the total received from stock option exercises was $12 . Activity related to restricted stock under the 2013 Plan for the nine months ended September 30, 2018 , was as follows: Weighted Average Grant Shares Date Fair Value Unvested restricted common stock as of December 31, 2017 491,861 $ 7.59 Issued 476,000 4.80 Vested (311,405) 7.76 Forfeited (10,703) 5.31 Unvested restricted common stock as of September 30, 2018 645,753 $ 5.49 For the nine months ended September 30, 2018 , the total fair value of restricted common stock vested was $ 1,481 . The Company did not receive cash proceeds for any of the restricted common stock issued during the nine months ended September 30, 2018 . Stock-Based Compensation The Company recorded stock-based compensation expense related to stock options and restricted stock as follows: Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Cost of product sales and inventories $ 29 $ 42 $ 92 $ 126 Research and development 158 229 490 717 Selling, general and administrative 1,007 1,528 3,253 4,614 $ 1,194 $ 1,799 $ 3,835 $ 5,457 As of September 30, 2018 , the Company had an aggregate of $ 4,596 and $ 2,978 of unrecognized stock-based compensation expense for options outstanding and restricted stock awards, respectively, which is expected to be recognized over a weighted average period of 2.47 years and 1.80 years, respectively. |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 9 Months Ended |
Sep. 30, 2018 | |
Net Income (Loss) Per Share [Abstract] | |
Net Income (Loss) Per Share | 13. Net Income (Loss) Per Share Basic and diluted net income (loss) per share was calculated as follows: Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Basic net income (loss) per share: Numerator: Net income (loss) $ 8,833 $ (8,920) $ (6,088) $ (31,912) Denominator: Weighted average shares outstanding, basic 47,310,408 42,445,553 46,128,197 39,820,573 Net income (loss) per share, basic $ 0.19 $ (0.21) $ (0.13) $ (0.80) Diluted net income (loss) per share: Numerator: Net income (loss) $ 8,833 $ (8,920) $ (6,088) $ (31,912) Denominator: Weighted average shares outstanding, basic 47,310,408 42,445,553 46,128,197 39,820,573 Dilutive effect of outstanding stock awards 174,976 — — — Weighted average shares outstanding, diluted 47,485,384 42,445,553 46,128,197 39,820,573 Net income (loss) per share, diluted $ 0.19 $ (0.21) $ (0.13) $ (0.80) Stock options for the purchase of 2,986,462 weighted average shares of common stock and 177,219 weighted average unvested restricted stock awards were excluded from the computation of diluted net income per share for the three months ended September 30, 2018 , because these stock awards had an anti-dilutive impact on net income earned for the period. Stock options for the purchase 3,294,746 shares of common stock and 645,753 unvested restricted stock awards were excluded from the computation of diluted net loss per share for the nine months ended September 30, 2018, because these stock awards had an anti-dilutive impact due to the net loss incurred for the period. Stock options for the purchase of 2,649,334 shares of common stock and 540,464 unvested restricted stock awards were excluded from the computation of diluted net loss per share for the three and nine months ended September 30, 2017, because these stock awards had an anti-dilutive impact due to the net loss incurred for the period. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2018 | |
Income Taxes [Abstract] | |
Income Taxes | 14. Income Taxes The Company recorded no income tax expense or benefit during the three and nine months ended September 30, 2018 and 2017, due to a full valuation allowance recognized against its deferred tax assets. The SEC issued Staff Accounting Bulletin No. 118 (“SAB 118”) on December 22, 2017. SAB 118 provides a one-year measurement period from a registrant’s reporting period that includes the Tax Cuts and Jobs Act of 2017 (“TCJA”) enactment date to allow the registrant sufficient time to obtain, prepare and analyze information to complete the accounting required under ASC 740. Although the Company made a reasonable estimate of the gross amounts of the deferred tax assets as discussed in the 2017 Annual Report, a final determination of the TCJA’s impact on the deferred tax assets and related valuation allowance requirements remains incomplete pending a full analysis of the provisions of the TCJA and their interpretations. The ultimate impact of the TCJA on the Company’s reported results in 2018 and beyond may differ from the estimates provided therein, possibly materially, due to, among other things, changes in interpretations and assumptions the Company has made, guidance that may be issued, and other actions the Company may take as a result of the TCJA, different from what is presently contemplated. As of September 30, 2018 , the Company has not recorded incremental accounting adjustments related to the TCJA as it continues to consider interpretations of its application, however, the Company expects to complete the accounting by December 2018. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 9 Months Ended |
Sep. 30, 2018 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Accumulated Other Comprehensive Loss | 15. 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, 2017 $ (7,085) $ (7,085) Foreign currency translation adjustment (473) (473) As of September 30, 2018 $ (7,558) $ (7,558) |
Legal Contingencies
Legal Contingencies | 9 Months Ended |
Sep. 30, 2018 | |
Legal Contingencies [Abstract] | |
Legal Contingencies | 16. 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. 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 consolidated 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. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policy) | 9 Months Ended |
Sep. 30, 2018 | |
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 United States 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, 2017 and the notes thereto in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on March 14, 2018 (“2017 Annual Report”). 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 $232,604 as of September 30, 2018 . 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 at September 30, 2018, will be sufficient to fund operations and debt obligations for at least one year from the issuance of these consolidated financial statements. As disclosed in Note 8 to the consolidated financial statements, the Company has a term loan and a revolving credit facility with an aggregate principal balance of $24,500 as of September 30, 2018. 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 September 30, 2018, was approximately $12,250 . If the minimum liquidity covenant is not met, the Company may be required to repay the loans prior to their scheduled maturity dates. At September 30, 2018, the Company was in compliance with all financial covenants. The Company expects continued investment related to commercial activities, including procuring of inventories needed to supply the marketplace, investing to further support adoption and awareness of the Company’s marketed products and payment of milestones related to approval and commencement of commercial sales. This will impact the minimum liquidity that needs to be maintained under the loan agreement. As a result, if the Company cannot generate sufficient cash from operations in the future, the Company may seek to fund its operations through corporate collaborations and licensing arrangements, or other sources, such as public or private equity offerings and 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, the Company would be forced to delay, reduce, or eliminate certain research and development programs, reduce or eliminate discretionary operating expenses or grant rights to develop and market therapeutics or therapeutic candidates that it would otherwise prefer to develop and market itself, which could otherwise adversely affect its business prospects. The Company’s failure to raise capital, as and when needed, would have a negative impact on its financial condition and its ability to pursue its business strategies as this capital is necessary for it to perform the research and development and commercial activities required to generate future revenue streams. |
Consolidation | Consolidation The Company’s consolidated financial statements include its financial statements and those of its wholly-owned subsidiaries . Intercompany balances and transactions are eliminated in consolidation. Prior to July 1, 2018, the functional currency of the Company’s foreign subsidiary was the local currency of the country where the subsidiary is located. Foreign currency denominated assets and liabilities of the foreign subsidiary were translated into U.S. dollars and translation gains and losses were included in accumulated other comprehensive income (loss) in the consolidated balance sheets. S ignificant changes in economic facts and circumstances in the operations of the foreign subsidiary had occurred resulting in a change in the functional currency of this subsidiary. Accordingly, effective July 1, 2018, the functional currency of the Company’s foreign subsidiary was changed from the local currency to the U.S. dollar, which is the Company’s reporting currency. Effective as of the date of the change, t ranslation adjustments for prior periods were not removed from equity and the translated amounts for nonmonetary assets at the end of the prior period became the accounting basis for those assets in the period of the change and subsequent periods. Future gains or losses from the remeasurement of monetary assets and liabilities will be recorded in earnings. |
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. |
Revenue from Contracts with Customers | Revenue from Contracts with Customers Effective January 1, 2018, the Company adopted the Accounting Standards Codification Topic (“ASC”) 606 “Revenue from Contracts with Customers” (“ASC 606”) using the modified retrospective transition method. Prior to January 1, 2018, the Company recognized revenue using the guidance of ASC 605 “Revenue Recognition” (“ASC 605”). The Company recognizes revenue when its customer obtains control of the promised goods or services, in an amount that reflects the consideration which the Company expects to be entitled to in exchange for those goods or services. The Company determines revenue recognition from contracts with customers as follows: · identify the contract(s); · identify the performance obligations in the contract(s); · determine the transaction price; · allocate the transaction price to the performance obligations in the contract; and · recognize revenue wh en (or as) the Company satisfies a performance obligation. The Company’s principal revenue streams and their respective accounting treatments are discussed below and further in Note 2, “Revenue” : (i) Product Sales, Net The Company sells its products to its customers who could either be the end users (such as veterinarians, clinics, or animal hospitals) of the product or distributors who subsequently resell the Company’s products to end users. Revenues from product sales are recognized when the customer obtains control of the Company’s product, which occurs at a point in time, upon delivery to the customer. The Company’s delivery of its products to customers constitutes a single performance obligation as there are no other promises to deliver goods or services beyond what is specified in each accepted customer order. Product sales are recorded net of applicable reserves for variable consideration, including product returns, allowances, discounts, and rebates . Reserves for Variable Consideration Revenues from product sales are recorded at the net sales price (transaction price), which includes estimates of variable consideration for which reserves are established. Components of variable consideration include product returns, allowances, discounts, and rebates. These reserves, as detailed below, are based on the amounts earned, or to be claimed on the related sales, and are classified as reductions of accounts receivable (generally, for credits that the Company issues for free goods provided by distributors to end customers in conjunction with promotional programs) or a current liability (generally, reserves for products that remained in the distribution channel inventories at each reporting period end that the Company expects the distributors will provide to end customers free of charge in conjunction with promotional programs). These estimates take into consideration a range of possible outcomes for the expected value (probability-weighted estimate) or relevant factors such as current contractual and statutory requirements, specific known market events and trends, industry data, and forecasted customer buying and payment patterns. Overall, these reserves reflect the Company’s best estimates of the amount of consideration to which it is entitled based on the terms of the respective underlying contracts. The amount of variable consideration included in the transaction price may be constrained and is included in the net sales price only to the extent that it is probable that a significant reversal in the amount of the cumulative revenue recognized under the contract will not occur in a future period. Actual amounts of consideration ultimately received may differ from the Company’s estimates. If actual results in the future vary from the Company’s estimates, the Company will adjust these estimates, which would affect net product revenue and earnings in the period such variances become known. Product Returns Consistent with the industry practice, the Company generally offers customers a limited right of return of damaged or expired product that has been purchased from the Company or the Company’s distributors in exchange for an unexpired product. Exchanges due to expiry are typically allowed for a period of six months after the product’s expiration date. The Company estimates the amount of its product sales that may be returned by its customers and records these estimates as a reduction of product revenues in the period the related product revenues are recognized, as well as within accrued expenses and other current liabilities, net in the consolidated balances sheets. The Company currently estimates product return liabilities using available industry data, its own sales data and data provided by the Company’s distributors such as the inventories remaining in the distribution channel. The Company has received an immaterial amount of returns to date and believes that returns of its products in future periods will be minimal. The Company does not record a return asset associated with the returned damaged or expired goods because such asset is deemed to be fully impaired at the time of product return. Sales Discounts and Allowances The Company compensates its distributors for sales order management, data and distribution and other services through sales discounts and allowances. However, such services are not distinct from the Company’s sale of products to distributors and, therefore, these discounts and allowances are recorded as a reduction of revenue in the consolidated statements of operations, as well as a reduction to accounts receivable, net in the consolidated balance sheets. (ii) Licensing and Collaboration Revenues Revenues derived from product out-licensing arrangements typically consist of an initial non-refundable, up-front payment at inception of the license, subsequent milestone payments contingent on the achievement of certain regulatory, development and commercial milestones, and royalties on the net sales of the Company’s products. Licenses of Intellectual Property If the license to the Company’s intellectual property is determined to be distinct from the other performance obligations identified in the contract, the Company recognizes revenue from non-refundable, up-front fees allocated to the license when the license is transferred to the customer and the customer is able to use and benefit from the license. For licenses that are bundled with other promises, the Company utilizes judgment to assess the nature of the combined performance obligation to determine whether the combined performance obligation is satisfied over time or at a point in time and, if over time, the appropriate method of measuring progress for purposes of recognizing revenue from non-refundable, up-front fees. The Company will evaluate the measure of progress each reporting period and, if necessary, adjust the measure of performance and related revenue recognition. Milestones Revenues from achievement of milestones generally represent a form of variable consideration as the payments are likely to be contingent on the occurrence of future events. The Company estimates milestones probable to be achieved and includes in the transaction price based on either the expected value (probability-weighted estimate) or most likely amount approach. The most likely amount is used by the Company for milestone payments with a binary outcome (i.e., the Company receives all or none of the milestone payment). Milestone payments that are not within the control of the Company or the customer, such as regulatory approvals, are not considered probable of being achieved until those approvals are received. The estimated milestone-related variable consideration is only recognized as revenue when the related performance obligation is satisfied and the Company determines that it is probable that there will not be a significant reversal of cumulative revenue recognized in future periods (i.e. variable consideration constraint). At the end of each subsequent reporting period, the Company re-evaluates the probability of achievement of such milestones and any related constraint, and if necessary, adjusts its estimate of the overall transaction price. Any such adjustments are recorded on a cumulative catch-up basis, which would affect licensing and collaboration revenues and earnings in the period of adjustment. For milestones that are not able to overcome the variable consideration constraint, that are not considered probable or that are determined to be sales-based or usage royalties, as described later, the Company recognizes revenue when the milestones are achieved. Sales-Based Royalty Revenue The Company’s sales-based royalty revenue could consist of sales-based milestones or a percentage of net sales royalties. The Company recognizes sales-based royalties related to the Company’s out-licensed intellectual property when (or as) the later of the following events occurs: · the sale occurs; or · the performance obligation to which some or all of the sales-based or usage-based royalty has been allocated has been satisfied (or partially satisfied). Sales-based royalties revenues recorded by the Company are based on the licensee’s or sub-licensee’s sales that occurred during the relevant period. Differences between actual and estimated royalty revenues are adjusted in the period in which they become known, typically in the following quarter. If the Company is unable to reasonably estimate royalty revenue or does not have access to the information, then the Company records royalty revenue when the information needed for a reliable estimate becomes available. Royalty revenue is included in licensing and collaboration revenue in the consolidated statements of operations. The Company recognizes revenue from sales-based milestones when the milestones are achieved. |
Property and Equipment, Net | Property and Equipment, Net Property and equipment is recorded at historical cost, net of accumulated depreciation and amortization of $1,545 and $1,188 , as of September 30, 2018 and December 31, 2017 , 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 superseded the revenue recognition requirements in ASC 605 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. The Company adopted this guidance on January 1, 2018. The impact of adoption is described further in Note 2 , “Revenue.” 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 on a modified retrospective transition. The Company is currently assessing the effect that adoption of this guidance will have on its consolidated financial statements. The Company currently expects that its operating lease commitments will be subject to the new guidance which will result in recognition of operating lease liabilities and right-of-use assets in the consolidated balance sheets upon the adoption of the new guidance. However, the Company’s assessment of the impact of adoption, which may be material, is still ongoing. Compensation – Stock Compensation: Scope of Modification Accounting 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. The Company adopted this guidance on January 1, 2018, and the adoption did not have a material impact on its consolidated financial statements. Compensation – Stock Compensation : Improvements to Nonemployee Share-Based Payment Accounting In June 2018, the FASB issued guidance that largely aligns the accounting for share-based payment awards issued to employees and nonemployees. Under the new guidance, the existing employee guidance generally will apply to nonemployee share-based transactions, with the exception of specific guidance related to inputs to an option pricing model and the attribution of compensation cost. The cost of nonemployee awards will continue to be recorded as if the grantor had paid cash for the goods or services. In addition, the contractual term will be able to be used in lieu of an expected term in the option-pricing model for nonemployee awards. 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, including in interim periods, but no earlier than an entity’s adoption of ASC 606 . The Company is currently assessing the effect that adoption of this guidance will have on its consolidated financial statements. Intangibles – Goodwill and Other – Internal-Use Software In August 2018, the FASB issued guidance that largely aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The guidance provides criteria for determining which implementation costs to capitalize as an asset related to the service contract and which costs to expense. The capitalized implementation costs are required to be expensed over the term of the hosting arrangement. The guidance also clarifies the presentation requirements for reporting such costs in the entity’s financial statements. The guidance is effective for financial statements issued for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted, including adoption in any interim period. The Company is currently assessing the effect that adoption of this guidance will have on its consolidated financial statements. Fair Value Measurements In August 2018, the FASB issued guidance related to disclosure requirements for fair value measurements. This guidance eliminates, modifies and adds disclosure requirements for fair value measurements. The guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted. The Company is currently assessing the effect that adoption of this guidance will have on its consolidated financial statements. |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Revenue [Abstract] | |
Disaggregation of Revenue by Source | Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 (1) 2018 2017 (1) Revenues Licensing and collaboration revenue GALLIPRANT $ 18,385 $ 2,192 $ 21,982 $ 3,899 Total licensing and collaboration revenue 18,385 2,192 21,982 3,899 Product sales NOCITA $ 1,916 $ 717 $ 5,219 $ 1,681 ENTYCE 1,254 — 3,305 — GALLIPRANT — 3,248 — 9,494 Other — 6 — 42 Total product sales 3,170 3,971 8,524 11,217 Total revenues $ 21,555 $ 6,163 $ 30,506 $ 15,116 (1) Prior period amounts have not been adjusted under the modified retrospective method. |
Schedule of Change in Contract Liability Balances | 2018 As of January 1, $ 7,000 ASC 606 adoption (6,800) Revenue recognized — Payments made — As of the end of period, $ 200 |
Fair Value of Financial Asset_2
Fair Value of Financial Assets and Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value of Financial Assets and Liabilities [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis | Fair Value Measurements as of Carrying September 30, 2018 Using: Value Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Certificates of deposit $ 8,680 $ — $ 8,680 $ — $ 8,680 Short-term investments: Short-term marketable securities - certificates of deposit 1,736 — 1,736 — 1,736 $ 10,416 $ — $ 10,416 $ — $ 10,416 Fair Value Measurements as of Carrying December 31, 2017 Using: Value Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Certificates of deposit $ 8,964 $ — $ 8,964 $ — $ 8,964 Short-term investments: Short-term marketable securities - certificates of deposit 747 — 747 — 747 $ 9,711 $ — $ 9,711 $ — $ 9,711 |
Schedule of Liabilities not Measured at Fair Value on Recurring Basis | September 30, 2018 Carrying Value Fair Value Liabilities: Loans payable (Level 2) $ 25,243 $ 24,801 December 31, 2017 Carrying Value Fair Value Liabilities: Loans payable (Level 2) $ 36,825 $ 36,973 |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Investments [Abstract] | |
Fair Value of Available-for-Sale Marketable Securities | September 30, 2018 Gross Gross Amortized Unrealized Unrealized Fair Cost Losses Losses Value Short-term marketable securities: Certificates of deposit $ 1,736 $ — $ — $ 1,736 Total $ 1,736 $ — $ — $ 1,736 December 31, 2017 Gross Gross Amortized Unrealized Unrealized Fair Cost Losses Losses Value Short-term marketable securities: Certificates of deposit $ 747 $ — $ — $ 747 Total $ 747 $ — $ — $ 747 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Inventories [Abstract] | |
Components of Inventories | September 30, 2018 December 31, 2017 Raw materials $ 243 $ 1,132 Work-in-process 8,980 12,322 Finished goods 4,509 122 $ 13,732 $ 13,576 |
Goodwill (Tables)
Goodwill (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Goodwill and Intangible Assets [Abstract] | |
Summary of Goodwill | Gross Impairment Net Carrying Value Losses Carrying Value Goodwill $ 40,846 $ — $ 40,846 |
Summary of Change in the Net Book Value of Goodwill | 2018 As of January 1, $ 41,295 Effect of foreign currency exchange (449) As of the end of the period, $ 40,846 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Goodwill and Intangible Assets [Abstract] | |
Change in the Net Book Value of Intangible Assets | 2018 As of January 1, $ 6,616 Amortization expense (388) As of the end of the period, $ 6,228 |
Summary of Amortized Intangible Assets | Gross Net Weighted Carrying Accumulated Carrying Average Value Amortization Value Useful Life Intellectual property rights for currently marketed products $ 7,000 $ 772 $ 6,228 14.1 Years Amortized intangible assets as of December 31, 2017, were as follows: Gross Net Weighted Carrying Accumulated Carrying Average Value Amortization Value Useful Life Intellectual property rights for currently marketed products $ 7,000 $ 384 $ 6,616 14.1 Years Intellectual property rights for formerly marketed products 38,652 38,652 — N/A $ 45,652 $ 39,036 $ 6,616 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Debt [Abstract] | |
Schedule of Loan Payable Balance | Principal amounts Term loan, 8.91% , principal payments from February 1, 2018 through October 1, 2019 $ 19,500 Revolving credit facility, 8.91% , principal payments from November 1, 2018 through October 1, 2019 5,000 Add: accretion of final payment and termination fees 933 Less: unamortized debt issuance costs (190) As of the end of the period $ 25,243 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Accrued Expenses and Other Current Liabilities [Abstract] | |
Schedule of Accrued Expenses and Other Current Liabilities | September 30, 2018 December 31, 2017 Payroll and related expenses $ 2,081 $ 2,314 Professional fees 644 208 Royalty expense 1,356 718 Interest expense 178 249 Research and development costs 107 5 Other 882 218 Total $ 5,248 $ 3,712 |
Stock-Based Awards (Tables)
Stock-Based Awards (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Compensation Related Costs, Share-based Payments [Line Items] | |
Summary of Stock-Based Compensation Expense Related to Stock Options and Restricted Stock | Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Cost of product sales and inventories $ 29 $ 42 $ 92 $ 126 Research and development 158 229 490 717 Selling, general and administrative 1,007 1,528 3,253 4,614 $ 1,194 $ 1,799 $ 3,835 $ 5,457 |
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, 2017 57,394 $ 4.22 5.11 $ 73 Granted — — Exercised — — Forfeited — — Expired (4,011) 5.57 Outstanding as of September 30, 2018 53,383 $ 4.12 4.35 $ 82 |
2013 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, 2017 2,557,143 $ 11.45 7.41 $ 794 Granted 798,000 4.84 Exercised (3,843) 3.14 Forfeited (45,090) 7.51 Expired (64,847) 19.00 Outstanding as of September 30, 2018 3,241,363 $ 9.73 7.26 $ 1,559 |
Summary of Restricted Stock Activity | Weighted Average Grant Shares Date Fair Value Unvested restricted common stock as of December 31, 2017 491,861 $ 7.59 Issued 476,000 4.80 Vested (311,405) 7.76 Forfeited (10,703) 5.31 Unvested restricted common stock as of September 30, 2018 645,753 $ 5.49 |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Net Income (Loss) Per Share [Abstract] | |
Schedule of Basic and Diluted Net Income (Loss) Per Share Attributable to Common Stockholders | Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Basic net income (loss) per share: Numerator: Net income (loss) $ 8,833 $ (8,920) $ (6,088) $ (31,912) Denominator: Weighted average shares outstanding, basic 47,310,408 42,445,553 46,128,197 39,820,573 Net income (loss) per share, basic $ 0.19 $ (0.21) $ (0.13) $ (0.80) Diluted net income (loss) per share: Numerator: Net income (loss) $ 8,833 $ (8,920) $ (6,088) $ (31,912) Denominator: Weighted average shares outstanding, basic 47,310,408 42,445,553 46,128,197 39,820,573 Dilutive effect of outstanding stock awards 174,976 — — — Weighted average shares outstanding, diluted 47,485,384 42,445,553 46,128,197 39,820,573 Net income (loss) per share, diluted $ 0.19 $ (0.21) $ (0.13) $ (0.80) |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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, 2017 $ (7,085) $ (7,085) Foreign currency translation adjustment (473) (473) As of September 30, 2018 $ (7,558) $ (7,558) |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Narrative) (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018USD ($)segment | Dec. 31, 2017USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | ||
Date of incorporation | Dec. 1, 2010 | |
Number of operating segments | segment | 1 | |
Accumulated deficit | $ 232,604 | $ 233,316 |
Accumulated depreciation and amortization | 1,545 | $ 1,188 |
Term Loan And Revolving Credit Facility [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Principal amount of debt | 24,500 | |
Term Loan [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Principal amount of debt | $ 19,500 | |
Minimum liquidity requirement | 50.00% | |
Liquidity requirement | $ 12,250 |
Revenue (Narrative) (Details)
Revenue (Narrative) (Details) - USD ($) | Jan. 01, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Dec. 31, 2017 |
Revenue from Contract with Customer [Line Items] | |||||||
Accumulated deficit | $ (232,604,000) | $ (232,604,000) | $ (232,604,000) | $ (233,316,000) | |||
Income tax benefit | 0 | $ 0 | 0 | $ 0 | |||
Contract liability | 200,000 | 200,000 | 200,000 | 7,000,000 | |||
Payments or submittal for reimbursement resulting in increase (decrease) in obligation | 0 | ||||||
Changes to the previously estimated transaction price | 0 | ||||||
Change in variable consideration | 0 | 0 | |||||
Unsatisfied performance obligations | 0 | ||||||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 [Member] | |||||||
Revenue from Contract with Customer [Line Items] | |||||||
Accumulated deficit | $ 6,800,000 | ||||||
Income tax benefit | $ 0 | ||||||
NOCITA and ENTYCE [Member] | |||||||
Revenue from Contract with Customer [Line Items] | |||||||
Reserve for product returns and allowances | $ 265,000 | $ 265,000 | $ 265,000 | $ 90,000 |
Revenue (Disaggregation of Reve
Revenue (Disaggregation of Revenue by Source) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Disaggregation of Revenue [Line Items] | ||||
Total revenues | $ 21,555 | $ 6,163 | $ 30,506 | $ 15,116 |
Licensing and Collaboration [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 18,385 | 2,192 | 21,982 | 3,899 |
Licensing and Collaboration [Member] | GALLIPRANT [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 18,385 | 2,192 | 21,982 | 3,899 |
Product Sales [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 3,170 | 3,971 | 8,524 | 11,217 |
Product Sales [Member] | NOCITA [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 1,916 | 717 | 5,219 | 1,681 |
Product Sales [Member] | ENTYCE [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | $ 1,254 | $ 3,305 | ||
Product Sales [Member] | GALLIPRANT [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 3,248 | 9,494 | ||
Product Sales [Member] | Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | $ 6 | $ 42 |
Revenue (Schedule of Change in
Revenue (Schedule of Change in Contract Liability Balances) (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Revenue [Abstract] | |
As of January 1, | $ 7,000 |
ASC 606 adoption | (6,800) |
Revenue recognized | |
Payments made | |
As of the end of period, | $ 200 |
Fair Value of Financial Asset_3
Fair Value of Financial Assets and Liabilities (Narrative) (Details) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets fair value | $ 10,416,000 | $ 9,711,000 |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Liabilities fair value | 0 | 0 |
Fair Value, Measurements, Nonrecurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets fair value | $ 0 | $ 0 |
Fair Value of Financial Asset_4
Fair Value of Financial Assets and Liabilities (Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Assets: | ||
Assets, fair value | $ 10,416 | $ 9,711 |
Carrying Value [Member] | ||
Assets: | ||
Assets, fair value | 10,416 | 9,711 |
Certificates of Deposit [Member] | ||
Assets: | ||
Cash equivalents | 8,680 | 8,964 |
Certificates of Deposit [Member] | Carrying Value [Member] | ||
Assets: | ||
Cash equivalents | 8,680 | 8,964 |
Short-Term Marketable Securities - Certificates Of Deposit [Member] | ||
Assets: | ||
Short-term marketable securities - certificates of deposit | 1,736 | 747 |
Short-Term Marketable Securities - Certificates Of Deposit [Member] | Carrying Value [Member] | ||
Assets: | ||
Short-term marketable securities - certificates of deposit | 1,736 | 747 |
Level 2 [Member] | ||
Assets: | ||
Assets, fair value | 10,416 | 9,711 |
Level 2 [Member] | Certificates of Deposit [Member] | ||
Assets: | ||
Cash equivalents | 8,680 | 8,964 |
Level 2 [Member] | Short-Term Marketable Securities - Certificates Of Deposit [Member] | ||
Assets: | ||
Short-term marketable securities - certificates of deposit | $ 1,736 | $ 747 |
Fair Value of Financial Asset_5
Fair Value of Financial Assets and Liabilities (Schedule of Liabilities not Measured at Fair Value on Recurring Basis) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loan payable, Carrying Value | $ 25,243 | |
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 | 25,243 | $ 36,825 |
Loan payable, Fair Value | $ 24,801 | $ 36,973 |
Investments (Fair Value of Avai
Investments (Fair Value of Available-for-Sale Marketable Securities) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 1,736 | $ 747 |
Fair Value | 1,736 | 747 |
Certificates of Deposit [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 1,736 | 747 |
Fair Value | $ 1,736 | $ 747 |
Inventories (Narrative) (Detail
Inventories (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Inventory [Line Items] | |||||
Inventory valuation adjustment losses | $ 883 | $ 342 | $ 1,218 | $ 394 | |
Raw materials | 243 | 243 | $ 1,132 | ||
Non-cancellable open orders | $ 1,154 | $ 1,154 | 7,132 | ||
GALLIPRANT [Member] | |||||
Inventory [Line Items] | |||||
Raw materials | $ 777 |
Inventories (Components of Inve
Inventories (Components of Inventories) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Inventories [Abstract] | ||
Raw materials | $ 243 | $ 1,132 |
Work-in-process | 8,980 | 12,322 |
Finished goods | 4,509 | 122 |
Total | $ 13,732 | $ 13,576 |
Goodwill (Narrative) (Details)
Goodwill (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2018 | Sep. 30, 2018 | |
Goodwill and Intangible Assets [Abstract] | ||
Goodwill impairment loss | $ 0 | $ 0 |
Goodwill (Summary of Goodwill)
Goodwill (Summary of Goodwill) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Goodwill and Intangible Assets [Abstract] | ||
Gross Carrying Value | $ 40,846 | |
Impairment Losses | ||
Net Carrying Value | $ 40,846 | $ 41,295 |
Goodwill (Summary of Change in
Goodwill (Summary of Change in the Net Book Value of Goodwill) (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Goodwill and Intangible Assets [Abstract] | |
As of January 1, | $ 41,295 |
Effect of foreign currency exchange | (449) |
As of the end of the period, | $ 40,846 |
Intangible Assets, Net (Narrati
Intangible Assets, Net (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Goodwill and Intangible Assets [Abstract] | ||||
Amortization of intangible assets | $ 129 | $ 85 | $ 388 | $ 235 |
Intangible Assets, Net (Change
Intangible Assets, Net (Change in the Net Book Value of Intangible Assets) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Goodwill and Intangible Assets [Abstract] | ||||
As of January 1, | $ 6,616 | |||
Amortization expense | $ (129) | $ (85) | (388) | $ (235) |
As of the end of the period, | $ 6,228 | $ 6,228 |
Intangible Assets, Net (Summary
Intangible Assets, Net (Summary of Amortized Intangible Assets) (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying value | $ 45,652 | |
Accumulated amortization | 39,036 | |
Net carrying value | 6,616 | |
Intellectual Property Rights For Currently Marketed Products [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying value | $ 7,000 | 7,000 |
Accumulated amortization | 772 | 384 |
Net carrying value | $ 6,228 | $ 6,616 |
Weighted average useful life | 14 years 1 month 6 days | 14 years 1 month 6 days |
Intellectual Property Rights For Formerly Marketed Products [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying value | $ 38,652 | |
Accumulated amortization | 38,652 | |
Net carrying value |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) | Oct. 17, 2017 | Jul. 31, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Oct. 16, 2015 |
Debt Instrument [Line Items] | ||||||||
Interest expense | $ 716,000 | $ 870,000 | $ 2,357,000 | $ 2,601,000 | ||||
Amortization of debt issuance costs | 139,000 | 131,000 | 417,000 | 370,000 | ||||
Interest expense | 716,000 | $ 870,000 | 2,357,000 | $ 2,601,000 | ||||
Current portion – loans payable | 22,583,000 | 22,583,000 | $ 17,333,000 | |||||
Term Loan [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Aggregate principal amount | $ 35,000,000 | |||||||
Aggregate principal amount borrowed | 19,500,000 | |||||||
Principal amount of debt | $ 19,500,000 | $ 19,500,000 | ||||||
Interest rate | 8.91% | 8.91% | ||||||
Termination commitment fee percentage | 3.30% | |||||||
Minimum liquidity requirement | 50.00% | 50.00% | ||||||
Liquidity requirement | $ 12,250,000 | $ 12,250,000 | ||||||
Current portion – loans payable | 18,000,000 | 18,000,000 | ||||||
Revolving Line due 2017 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity | $ 5,000,000 | |||||||
Amount outstanding | 5,000,000 | $ 5,000,000 | ||||||
Unused capacity commitment fee percentage | 0.25% | |||||||
Date of maturity | Oct. 16, 2017 | |||||||
Termination fee | 165,000 | $ 165,000 | ||||||
Termination fee paid | $ 165,000 | |||||||
Current portion – loans payable | 4,583,000 | 4,583,000 | ||||||
Revolving Line due 2019 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal amount of debt | $ 5,000,000 | $ 5,000,000 | ||||||
Interest rate | 8.91% | 8.91% | ||||||
Term Loan And Revolving Credit Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal amount of debt | $ 24,500,000 | $ 24,500,000 | ||||||
Excess interest rate over prime rate | 3.66% | |||||||
Interest rate | 8.91% | 8.91% | ||||||
Loan Agreement, Second Amendment [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Facility fee | $ 60,000 | |||||||
Interest only payment term | 6 months | |||||||
Date of maturity | Oct. 16, 2019 | |||||||
Amendment fee | $ 150,000 | |||||||
Termination fee | $ 165,000 | |||||||
Additional default interest rate | 4.00% | 4.00% | ||||||
Minimum liquidity requirement | 50.00% | 50.00% | ||||||
Liquidity requirement | $ 12,250,000 | $ 12,250,000 | ||||||
Minimum [Member] | Term Loan And Revolving Credit Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate | 6.91% | 6.91% |
Debt (Schedule of Loan Payable
Debt (Schedule of Loan Payable Balance) (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Debt Instrument [Line Items] | |
Add: accretion of final payment and termination fees | $ 933 |
Less: unamortized debt issuance costs | (190) |
As of the end of the period | 25,243 |
Term Loan [Member] | |
Debt Instrument [Line Items] | |
Principal amounts | $ 19,500 |
Interest rate | 8.91% |
Date of first principal payment | Feb. 1, 2018 |
Date of final principal payment | Oct. 1, 2019 |
Revolving Line due 2019 [Member] | |
Debt Instrument [Line Items] | |
Principal amounts | $ 5,000 |
Interest rate | 8.91% |
Date of first principal payment | Nov. 1, 2018 |
Date of final principal payment | Oct. 1, 2019 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities (Schedule of Accrued Expenses and Other Current Liabilities) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Accrued expenses: | ||
Payroll and related expenses | $ 2,081 | $ 2,314 |
Professional fees | 644 | 208 |
Royalty expense | 1,356 | 718 |
Interest expense | 178 | 249 |
Research and development costs | 107 | 5 |
Other | 882 | 218 |
Total | $ 5,248 | $ 3,712 |
Agreements (RaQualia Pharma Inc
Agreements (RaQualia Pharma Inc Narrative) (Details) - RaQualia Agreements [Member] | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2018USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($) | Dec. 27, 2010USD ($)agreement | |
Research and Development Arrangement, Contract to Perform for Others [Line Items] | ||||
Number of license agreements | agreement | 2 | |||
Milestones achieved | $ 0 | $ 0 | ||
Milestones paid | 11,500,000 | |||
Accrued milestones | $ 0 | $ 0 | ||
Scenario, Forecast [Member] | ||||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | ||||
Milestones achieved | $ 2,000,000 | |||
GALLIPRANT [Member] | ||||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | ||||
Milestones payable | $ 4,000,000 | |||
ENTYCE [Member] | ||||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | ||||
Milestones payable | $ 3,000,000 |
Agreements (Pacira Pharmaceutic
Agreements (Pacira Pharmaceuticals, Inc. Narrative) (Details) - USD ($) | Jul. 05, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 |
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |||||
Cost of product sales | $ 2,172,000 | $ 3,690,000 | $ 4,013,000 | $ 10,475,000 | |
AT-003 [Member] | Pacira Agreement [Member] | |||||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |||||
Annual revenue payment, period delayed | 1 year | ||||
Milestones achieved | 0 | 0 | |||
Milestones paid | 2,500,000 | ||||
Accrued milestones | $ 0 | $ 0 | |||
AT-003 [Member] | Pacira Agreement [Member] | Minimum [Member] | |||||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |||||
Product completion, pain prevented post-surgery, hours | 48 hours | ||||
AT-003 [Member] | Pacira Agreement [Member] | Maximum [Member] | |||||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |||||
Product completion, pain prevented post-surgery, hours | 72 hours | ||||
AT-003 [Member] | Pacira Agreement [Member] | Commercial Milestone [Member] | Maximum [Member] | |||||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |||||
Milestones payable | $ 40,000,000 | ||||
Initial Tier [Member] | AT-003 [Member] | Pacira Agreement [Member] | |||||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |||||
Net sales that must be met for milestone payable | 50,000,000 | ||||
Final Tier [Member] | AT-003 [Member] | Pacira Agreement [Member] | |||||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |||||
Net sales that must be met for milestone payable | $ 250,000,000 |
Agreements (Elanco GALLIPRANT N
Agreements (Elanco GALLIPRANT Narrative) (Details) - USD ($) $ in Thousands | Apr. 28, 2017 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2018 | Dec. 31, 2017 |
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |||||
Licensing and collaboration commitment | $ 200 | $ 200 | $ 7,000 | ||
ASC 606 adoption | 6,800 | ||||
Contract liability | 200 | 200 | 7,000 | ||
Elanco Collaboration Agreement [Member] | |||||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |||||
Milestones achieved | 15,000 | ||||
Accrued milestones | 15,000 | 15,000 | |||
Elanco Collaboration Agreement [Member] | Grapiprant Products [Member] | |||||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |||||
Non-refundable, non-creditable up-front payment receivable | 45,000 | 45,000 | |||
Licensing and collaboration commitment | 7,000 | ||||
ASC 606 adoption | $ 6,800 | ||||
Contract liability | $ 7,000 | ||||
Elanco Collaboration Agreement [Member] | Grapiprant Products [Member] | Aratana [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% | ||||
Elanco Collaboration Agreement [Member] | Elanco Animal Health, Inc. [Member] | Grapiprant Products [Member] | |||||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |||||
Percentage of third-party development fees and expenses to be paid | 75.00% | ||||
Elanco Collaboration Agreement Amendment [Member] | Grapiprant Products [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 | ||||
Cash paid for contingent consideration | $ 10,832 | ||||
Elanco Co-Promotion Agreement [Member] | Grapiprant Products [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% | ||||
European Approval Milestone [Member] | Elanco Collaboration Agreement [Member] | Grapiprant Products [Member] | |||||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |||||
Milestone receivable | $ 4,000 | 4,000 | |||
Manufacturing Milestone [Member] | Elanco Collaboration Agreement [Member] | Grapiprant Products [Member] | |||||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |||||
Milestone receivable | 4,000 | 4,000 | |||
Sales Milestone [Member] | Elanco Collaboration Agreement [Member] | Grapiprant Products [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% |
Agreements (VetStem BioPharma,
Agreements (VetStem BioPharma, Inc. Narrative) (Details) | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |
In-process research and development | $ 500,000 |
AT-016 [Member] | VetStem Agreement [Member] | |
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |
In-process research and development | 0 |
Milestones payable | $ 0 |
Agreements (AskAt Inc. Narrativ
Agreements (AskAt Inc. Narrative) (Details) - USD ($) | Feb. 28, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 |
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |||||||
Cost of product sales | $ 2,172,000 | $ 3,690,000 | $ 4,013,000 | $ 10,475,000 | |||
In-process research and development | 500,000 | ||||||
AskAt Collaboration And Option Agreement [Member] | |||||||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |||||||
Upfront option fee | $ 500,000 | ||||||
AT-019 [Member] | AskAt Agreement [Member] | |||||||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |||||||
Cost of product sales | $ 500,000 | ||||||
Type of Cost, Good or Service [Extensible List] | us-gaap:LicenseMember | ||||||
In-process research and development | $ 500,000 | ||||||
Milestones payable | $ 15,500,000 | ||||||
Net sales that must be met for milestone payable | $ 100,000,000 | ||||||
Percentage of milestone payable that can be paid out in cash | 50.00% | ||||||
Percentage of milestone payable that can be paid out in shares | 50.00% | ||||||
Accrued milestones | $ 0 | 0 | |||||
Milestones paid | 0 | ||||||
Royalty payments | $ 0 | ||||||
AT-019 [Member] | AskAt Agreement [Member] | Maximum [Member] | Clinical Development And Regulatory Milestone [Member] | |||||||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |||||||
Milestones payable | $ 3,000,000 | ||||||
AT-019 [Member] | AskAt Agreement [Member] | Maximum [Member] | Commercial Milestone [Member] | |||||||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |||||||
Milestones payable | $ 12,500,000 |
Common Stock (Narrative) (Detai
Common Stock (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 18, 2017 | May 09, 2017 | May 03, 2017 | Apr. 28, 2017 | Oct. 16, 2015 | Sep. 30, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Nov. 02, 2018 | Dec. 31, 2017 | Aug. 04, 2017 |
Class of Stock [Line Items] | |||||||||||
Common stock, authorized | 100,000,000 | 100,000,000 | 100,000,000 | ||||||||
Common stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | ||||||||
Common stock, shares outstanding | 47,981,034 | 47,981,034 | 42,532,725 | ||||||||
Treasury stock, shares | 92,099 | 92,099 | 80,916 | ||||||||
Treasury stock, value | $ 1,162 | $ 1,162 | $ 1,107 | ||||||||
Restricted stock withheld to satisfy employee tax withholding, shares | 11,183 | 1,342 | |||||||||
Restricted stock withheld to satisfy employee tax withholding, per share | $ 4.96 | $ 7.88 | |||||||||
Proceeds from offering | $ 24,394 | $ 27,463 | |||||||||
Shelf Registration Statement [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Aggregate stock available to sell | $ 100,000 | ||||||||||
At-the-Market Offering [Member] | Common Stock [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Aggregate stock available to sell | $ 50,000 | $ 52,000 | |||||||||
Shares issued | 962,053 | 5,144,244 | |||||||||
Percentage of commission on gross proceeds from sale of shares | 3.00% | 2.75% | |||||||||
Proceeds from offering | $ 4,863 | $ 24,230 | |||||||||
Placement agent fee | 151 | 754 | |||||||||
Issuance costs | $ 21 | $ 164 | |||||||||
Value of shares issued | $ 18,000 | ||||||||||
Registered Direct Offering [Member] | Common Stock [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Shares issued | 5,000,000 | ||||||||||
Price per share | $ 5.25 | ||||||||||
Percentage of commission on gross proceeds from sale of shares | 6.00% | ||||||||||
Close date | May 9, 2017 | ||||||||||
Proceeds from offering | $ 24,400 | ||||||||||
Placement agent fee | 1,575 | ||||||||||
Issuance costs | $ 273 | ||||||||||
Subsequent Event [Member] | At-the-Market Offering [Member] | Common Stock [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Remaining stock available to sell | $ 24,852 | ||||||||||
2013 Plan [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Unvested restricted common stock outstanding | 645,753 | 645,753 | 491,861 |
Stock-Based Awards (Narrative)
Stock-Based Awards (Narrative) (Details) - USD ($) | Jan. 01, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Proceeds from stock option exercises | $ 12,000 | $ 157,000 | ||
2010 Equity Incentive Plan [Member] | Stock Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock options granted | 0 | |||
2013 Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares available for future grant | 1,662,687 | 1,662,687 | ||
Stock options granted | 798,000 | |||
Annual increase in shares | 1,203,369 | |||
Weighted average grant date fair value, grants | $ 4.80 | |||
Unrecognized stock-based compensation expense for options outstanding | $ 4,596,000 | $ 4,596,000 | ||
Unrecognized stock-based compensation expense, other than options | 2,978,000 | $ 2,978,000 | ||
2013 Plan [Member] | Stock Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Aggregate intrinsic value of options exercised | 6,000 | |||
Proceeds from stock option exercises | $ 12,000 | |||
Weighted average grant date fair value of options granted | $ 3.16 | |||
Unrecognized stock-based compensation expense, recognition period | 2 years 5 months 19 days | |||
2013 Plan [Member] | Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Fair value stock awards, vested, other than options | $ 1,481,000 | |||
Proceeds from the issuance of restricted stock | $ 0 | |||
Unrecognized stock-based compensation expense, recognition period | 1 year 9 months 18 days |
Stock-Based Awards (Summary of
Stock-Based Awards (Summary of Stock Option Activity) (Details) $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018USD ($)$ / sharesshares | Dec. 31, 2017USD ($)$ / 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, 2017 | shares | 57,394 | |
Shares Issuable Under Options, Expired | shares | (4,011) | |
Shares Issuable Under Options, Outstanding as of September 30, 2018 | shares | 53,383 | 57,394 |
Weighted Average Exercise Price, Outstanding as of December 31, 2017 | $ / shares | $ 4.22 | |
Weighted Average Exercise Price, Expired | $ / shares | 5.57 | |
Weighted Average Exercise Price, Outstanding as of September 30, 2018 | $ / shares | $ 4.12 | $ 4.22 |
Weighted Average Remaining Contractual Term, Outstanding | 4 years 4 months 6 days | 5 years 1 month 10 days |
Aggregate Intrinsic Value, Outstanding | $ | $ 82 | $ 73 |
2013 Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares Issuable Under Options, Outstanding as of December 31, 2017 | shares | 2,557,143 | |
Shares Issuable Under Options, Granted | shares | 798,000 | |
Shares Issuable Under Options, Exercised | shares | (3,843) | |
Shares Issuable Under Options, Forfeited | shares | (45,090) | |
Shares Issuable Under Options, Expired | shares | (64,847) | |
Shares Issuable Under Options, Outstanding as of September 30, 2018 | shares | 3,241,363 | 2,557,143 |
Weighted Average Exercise Price, Outstanding as of December 31, 2017 | $ / shares | $ 11.45 | |
Weighted Average Exercise Price, Granted | $ / shares | 4.84 | |
Weighted Average Exercise Price, Exercised | $ / shares | 3.14 | |
Weighted Average Exercise Price, Forfeited | $ / shares | 7.51 | |
Weighted Average Exercise Price, Expired | $ / shares | 19 | |
Weighted Average Exercise Price, Outstanding as of September 30, 2018 | $ / shares | $ 9.73 | $ 11.45 |
Weighted Average Remaining Contractual Term, Outstanding | 7 years 3 months 4 days | 7 years 4 months 28 days |
Aggregate Intrinsic Value, Outstanding | $ | $ 1,559 | $ 794 |
Stock-Based Awards (Summary o_2
Stock-Based Awards (Summary of Restricted Stock Activity) (Details) - 2013 Plan [Member] | 9 Months Ended |
Sep. 30, 2018$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unvested restricted common stock as of December 31, 2017, Shares | shares | 491,861 |
Issued, Shares | shares | 476,000 |
Vested, Shares | shares | (311,405) |
Forfeited, Shares | shares | (10,703) |
Unvested restricted common stock as of September 30, 2018, Shares | shares | 645,753 |
Unvested restricted common stock as of December 31, 2017, Weighted Average Grant Date Fair Value | $ / shares | $ 7.59 |
Issued, Weighted Average Grant Date Fair Value | $ / shares | 4.80 |
Vested, Weighted Average Grant Date Fair Value | $ / shares | 7.76 |
Forfeited, Weighted Average Grant Date Fair Value | $ / shares | 5.31 |
Unvested restricted common stock as of September 30, 2018, Weighted Average Grant Date Fair Value | $ / shares | $ 5.49 |
Stock-Based Awards (Summary o_3
Stock-Based Awards (Summary of Stock-Based Compensation Expense Related to Stock Options and Restricted Stock) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | $ 1,194 | $ 1,799 | $ 3,835 | $ 5,457 |
Cost of Product Sales and Inventories [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | 29 | 42 | 92 | 126 |
Research and Development [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | 158 | 229 | 490 | 717 |
Selling, General and Administrative [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | $ 1,007 | $ 1,528 | $ 3,253 | $ 4,614 |
Net Income (Loss) Per Share (Na
Net Income (Loss) Per Share (Narrative) (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
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 | 2,986,462 | 2,649,334 | 3,294,746 | 2,649,334 |
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 | 177,219 | 540,464 | 645,753 | 540,464 |
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 | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Basic net income (loss) per share: | ||||
Net income (loss) | $ 8,833 | $ (8,920) | $ (6,088) | $ (31,912) |
Weighted average shares outstanding, basic | 47,310,408 | 42,445,553 | 46,128,197 | 39,820,573 |
Net income (loss) per share, basic | $ 0.19 | $ (0.21) | $ (0.13) | $ (0.80) |
Diluted net income (loss) per share: | ||||
Net income (loss) | $ 8,833 | $ (8,920) | $ (6,088) | $ (31,912) |
Weighted average shares outstanding, basic | 47,310,408 | 42,445,553 | 46,128,197 | 39,820,573 |
Dilutive effect of outstanding stock awards | 174,976 | |||
Weighted average shares outstanding, diluted | 47,485,384 | 42,445,553 | 46,128,197 | 39,820,573 |
Net income (loss) per share, diluted | $ 0.19 | $ (0.21) | $ (0.13) | $ (0.80) |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Income Taxes [Abstract] | ||||
Income tax expense (benefit) | $ 0 | $ 0 | $ 0 | $ 0 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Summary of Changes in Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
As of December 31, 2017 | $ (7,085) | ||
Foreign currency translation adjustment | $ 801 | (473) | $ 2,522 |
As of September 30, 2018 | (7,558) | ||
Foreign Currency Translation Adjustment [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
As of December 31, 2017 | (7,085) | ||
Foreign currency translation adjustment | (473) | ||
As of September 30, 2018 | $ (7,558) |