Coherus BioSciences (CHRS) 10-Q 5 Nov 20 2020 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2020	Oct. 31, 2020
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Sep. 30, 2020
Entity File Number	001-36721
Entity Registrant Name	Coherus BioSciences, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	27-3615821
Entity Address, Address Line One	333 Twin Dolphin Drive
Entity Address, Address Line Two	Suite 600
Entity Address, City or Town	Redwood City
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	94065
City Area Code	650
Local Phone Number	649-3530
Title of 12(b) Security	Common Stock, $0.0001 par value per share
Trading Symbol	CHRS
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		72,048,012
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q3
Entity Central Index Key	0001512762
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019	[1]
Current assets:
Cash and cash equivalents	$ 292,465	$ 177,668
Investments in marketable securities	210,966
Trade receivables, net	160,707	141,992
Inventory	35,247	9,807
Prepaid manufacturing	21,928	8,578
Other prepaid and other assets	5,607	4,964
Total current assets	726,920	343,009
Property and equipment, net	10,647	5,840
Inventory, non-current	50,717	45,264
Operating lease right-of-use assets	10,470	10,649
Intangible assets	2,620	2,620
Goodwill	943	943
Restricted cash, non-current	440	240
Other assets, non-current	976	362
Total assets	803,733	408,927
Current liabilities:
Accounts payable	11,990	25,985
Accrued rebates, fees and reserve	75,961	51,120
Accrued compensation	17,412	18,410
Accrued liabilities	23,446	17,258
Other current liabilities	4,623	2,196
Total current liabilities	133,432	114,969
Contingent consideration, non-current	102	102
Convertible notes due 2022	79,537	78,542
Convertible notes due 2022 - related parties	26,512	26,181
Convertible notes due 2026	222,718
Term loan	74,267	73,663
Lease liabilities, non-current	10,729	10,256
Other liabilities, non-current	705
Total liabilities	548,002	303,713
Commitments and contingencies (Note 8)
Stockholders' equity:
Common stock	7	7
Additional paid-in capital	1,028,441	1,000,763
Accumulated other comprehensive loss	(255)	(558)
Accumulated deficit	(772,462)	(894,998)
Total stockholders' equity	255,731	105,214
Total liabilities and stockholders' equity	$ 803,733	$ 408,927
[1]	The consolidated balance sheet as of December 31, 2019 has been derived from the audited consolidated balance sheet included in the Company ’ s 2019 Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 27, 2020.

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Revenue:
Net product revenue	$ 113,551	$ 111,684	$ 365,405	$ 232,215
Operating expenses:
Cost of goods sold	9,000	6,447	25,994	9,273
Research and development	38,851	21,568	98,131	59,240
Selling, general and administrative	31,984	31,828	101,386	100,967
Total operating expenses	79,835	59,843	225,511	169,480
Income from operations	33,716	51,841	139,894	62,735
Interest expense (includes related party of $625 and $615 for the three months ended September 30, 2020 and 2019, respectively; and $1,867 and $1,839 for the nine months ended September 30, 2020 and 2019, respectively)	(5,656)	(4,469)	(15,495)	(13,118)
Other income, net	56	518	548	1,887
Net income before income taxes	28,116	47,890	124,947	51,504
Income tax provision	183	847	2,411	898
Net income	$ 27,933	$ 47,043	$ 122,536	$ 50,606
Net income per share:
Basic	$ 0.39	$ 0.67	$ 1.72	$ 0.73
Diluted	$ 0.33	$ 0.63	$ 1.52	$ 0.69
Weighted-average number of shares used in computing net income per share:
Basic	71,649,350	69,877,693	71,138,973	69,501,835
Diluted	87,470,337	78,530,227	82,043,469	72,872,076

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Condensed Consolidated Statements of Operations (unaudited)
Interest expense from transactions with related party	$ 625	$ 615	$ 1,867	$ 1,839

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Comprehensive Income (unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Condensed Consolidated Statements of Comprehensive Income (unaudited)
Net income	$ 27,933	$ 47,043	$ 122,536	$ 50,606
Other comprehensive income (loss):
Unrealized gain on available-for-sale securities, net of tax	6		18
Foreign currency translation adjustments, net of tax	(4)	59	285	(170)
Comprehensive income	$ 27,935	$ 47,102	$ 122,839	$ 50,436

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Stockholders' Equity (unaudited) - USD ($) $ in Thousands	Common Stock2019 Bonus Payout	Common Stock2018 Bonus Payout	Common StockCommon Stock Offering, net	Common Stock	Additional Paid-In Capital2019 Bonus Payout	Additional Paid-In Capital2018 Bonus Payout	Additional Paid-In CapitalCommon Stock Offering, net	Additional Paid-In Capital	Accumulated Other Comprehensive LossCumulative translation adjustment	Accumulated Other Comprehensive Loss	Accumulated Deficit	Total Coherus Stockholder Equity (Deficit)2018 Bonus Payout	Total Coherus Stockholder Equity (Deficit)Common Stock Offering, net	Total Coherus Stockholder Equity (Deficit)Cumulative translation adjustment	Total Coherus Stockholder Equity (Deficit)	2019 Bonus Payout	Cumulative translation adjustment	Total
Beginning Balances at Dec. 31, 2018				$ 7				$ 946,515	$ (136)	$ (282)	$ (984,831)			$ (136)	$ (38,591)
Beginning Balances, Shares at Dec. 31, 2018				68,302,681
Issuance of common stock upon exercise of stock options								825							825
Issuance of common stock upon exercise of stock options, Shares				143,523
Issuance of common stock upon vesting of restricted stock units (RSUs), Shares				22,195
Issuance of common stock						$ 1,350	$ 8,228					$ 1,350	$ 8,228
Issuance of common stock, Shares		109,168	761,130
Stock-based compensation expense								9,813							9,813
Net income (loss)											(20,004)				(20,004)
Ending Balances at Mar. 31, 2019				$ 7				966,731	(93)	(418)	(1,004,835)			(93)	(38,515)
Ending Balances, shares at Mar. 31, 2019				69,338,697
Beginning Balances at Dec. 31, 2018				$ 7				946,515	(136)	(282)	(984,831)			(136)	(38,591)
Beginning Balances, Shares at Dec. 31, 2018				68,302,681
Cumulative translation adjustment																		$ (170)
Ending Balances at Sep. 30, 2019				$ 7				990,693		(452)	(934,225)				56,023
Ending Balances, shares at Sep. 30, 2019				70,091,987
Beginning Balances at Mar. 31, 2019				$ 7				966,731	(93)	(418)	(1,004,835)			(93)	(38,515)
Beginning Balances, Shares at Mar. 31, 2019				69,338,697
Issuance of common stock upon exercise of stock options								674							674
Issuance of common stock upon exercise of stock options, Shares				108,374
Issuance of common stock under the employee stock purchase plan ("ESPP")								1,878							1,878
Issuance of common stock under the employee stock purchase plan ("ESPP"), Shares				180,077
Stock-based compensation expense								8,504							8,504
Net income (loss)											23,567				23,567
Ending Balances at Jun. 30, 2019				$ 7				977,787	59	(511)	(981,268)			$ 59	(3,985)
Ending Balances, shares at Jun. 30, 2019				69,627,148
Issuance of common stock upon exercise of stock options								3,707							3,707
Issuance of common stock upon exercise of stock options, Shares				447,269
Issuance of common stock upon vesting of restricted stock units (RSUs), Shares				17,570
Stock-based compensation expense								9,199							9,199
Cumulative translation adjustment																		59
Net income (loss)											47,043				47,043
Ending Balances at Sep. 30, 2019				$ 7				990,693		(452)	(934,225)				$ 56,023
Ending Balances, shares at Sep. 30, 2019				70,091,987
Beginning Balances at Dec. 31, 2019				$ 7				1,000,763	608	(558)	(894,998)						$ 608	105,214	[1]
Beginning Balances, Shares at Dec. 31, 2019				70,366,661
Issuance of common stock upon exercise of stock options								4,438										4,438
Issuance of common stock upon exercise of stock options, Shares				421,850
Issuance of common stock upon vesting of restricted stock units (RSUs), Shares				10,000
Issuance of common stock					$ 2,378											$ 2,378
Issuance of common stock, Shares	134,099
Taxes paid related to net share settlement of bonus payout in RSUs								(880)										(880)
Taxes paid related to net share settlement of bonus payout in RSUs, Shares				(49,616)
Stock-based compensation expense								9,945										9,945
Net income (loss)											35,572							35,572
Ending Balances at Mar. 31, 2020				$ 7				1,016,644	(319)	50	(859,426)						(319)	157,275
Ending Balances, shares at Mar. 31, 2020				70,882,994
Beginning Balances at Dec. 31, 2019				$ 7				1,000,763	608	(558)	(894,998)						608	105,214	[1]
Beginning Balances, Shares at Dec. 31, 2019				70,366,661
Cumulative translation adjustment																		285
Ending Balances at Sep. 30, 2020				$ 7				1,028,441		(255)	(772,462)							255,731
Ending Balances, shares at Sep. 30, 2020				72,024,366
Beginning Balances at Mar. 31, 2020				$ 7				1,016,644	(319)	50	(859,426)						(319)	157,275
Beginning Balances, Shares at Mar. 31, 2020				70,882,994
Issuance of common stock upon exercise of stock options								3,305										3,305
Issuance of common stock upon exercise of stock options, Shares				289,241
Issuance of common stock under the employee stock purchase plan ("ESPP")								2,557										2,557
Issuance of common stock under the employee stock purchase plan ("ESPP"), Shares				180,970
Purchase of capped call options related to convertible notes due 2026								(18,170)										(18,170)
Stock-based compensation expense								9,686										9,686
Unrealized gain in marketable securities										12								12
Net income (loss)											59,031							59,031
Ending Balances at Jun. 30, 2020				$ 7				1,014,022	$ (4)	(257)	(800,395)						$ (4)	213,377
Ending Balances, shares at Jun. 30, 2020				71,353,205
Issuance of common stock upon exercise of stock options								4,962										4,962
Issuance of common stock upon exercise of stock options, Shares				598,577
Issuance of common stock upon vesting of restricted stock units (RSUs), Shares				72,584
Stock-based compensation expense								9,457										9,457
Unrealized gain in marketable securities										6								6
Cumulative translation adjustment																		(4)
Net income (loss)											27,933							27,933
Ending Balances at Sep. 30, 2020				$ 7				$ 1,028,441		$ (255)	$ (772,462)							$ 255,731
Ending Balances, shares at Sep. 30, 2020				72,024,366
[1]	The consolidated balance sheet as of December 31, 2019 has been derived from the audited consolidated balance sheet included in the Company ’ s 2019 Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 27, 2020.

Condensed Consolidated Statem_5

Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Operating activities
Net income	$ 122,536	$ 50,606
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	2,048	2,204
Stock-based compensation expense	28,287	26,319
Non-cash accretion of discount on marketable securities	(103)	(142)
Non-cash interest expense from amortization of debt discount	2,492	1,726
Excess and obsolete inventory		410
Other non-cash adjustments	422	(1)
Non-cash operating lease expense	1,567	1,305
Upfront and milestone based license fee payments to Innovent	7,500
Changes in operating assets and liabilities:
Trade receivables, net	(18,885)	(89,646)
Inventory	(30,053)	(31,151)
Prepaid manufacturing	(13,350)	2,525
Other prepaid and current assets	(171)	(653)
Other assets, non-current	(614)	(500)
Accounts payable	(13,108)	(1,436)
Accrued rebates, fees and reserve	24,841	37,121
Accrued compensation	1,380	4,162
Accrued and other liabilities	5,521	9,416
Lease liabilities	6	(1,590)
Other liabilities, non-current	705	(30)
Net cash provided by operating activities	121,021	10,645
Investing activities
Purchases of property and equipment	(6,279)	(1,435)
Proceeds from disposal of property and equipment	167
Purchases of investments in marketable securities	(273,845)	(20,235)
Proceeds from maturities of investments in marketable securities	63,000	15,000
Upfront and milestone based license fee payments to Innovent	(7,500)
Net cash used in investing activities	(224,457)	(6,670)
Financing activities
Proceeds from common stock offering, net of underwriters discounts, commissions and offering costs		8,153
Proceeds from issuance of Convertible Notes due 2026, net of issuance costs	222,156
Purchase of capped call options related to Convertible Notes due 2026	(18,170)
Proceeds from term loan, net of issuance costs		72,955
Proceeds from issuance of common stock upon exercise of stock options	13,014	5,184
Proceeds from purchase under the employee stock purchase plan	2,557	1,878
Taxes paid related to net share settlement of bonus payout in RSUs	(880)
Other financing activities	(244)
Net cash provided by financing activities	218,433	88,170
Effect of exchange rate changes in cash, cash equivalents and restricted cash		(170)
Net increase in cash, cash equivalents and restricted cash	114,997	91,975
Cash, cash equivalents and restricted cash at beginning of period	177,908	73,191
Cash, cash equivalents and restricted cash at end of period	292,905	165,166
Supplemental disclosure of cash flow information
Non-cash bonus payment settled in common stock	1,498	1,350
Right-of-use assets obtained in exchange for lease obligations related to operating leases	1,388	$ 5,267
Right-of-use assets obtained in exchange for lease obligations related to finance leases	$ 1,771

Organization and Summary of Sig

Organization and Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2020
Organization and Summary of Significant Accounting Policies
Organization and Summary of Significant Accounting Policies	1. Organization and Summary of Significant Accounting Policies Organization Coherus BioSciences, Inc. (the “Company”, “Coherus”, “we”, our” or “us”) is a commercial-stage biotherapeutics company, focused on the biosimilar market primarily in the United States. The Company’s headquarters and laboratories are located in Redwood City, California and in Camarillo, California, respectively. The Company’s biosimilar pipeline comprises of four biosimilar drugs, CHS-1420 (an adalimumab (Humira®) biosimilar), CHS-2020 (an aflibercept (Eylea®) biosimilar), a ranibizumab (Lucentis®) biosimilar in-licensed for U.S. and Canadian commercial rights from Bioeq AG, and a bevacizumab (Avastin®) biosimilar in-licensed for U.S. commercial rights from Innovent Biologics (Suzhou) Co., Ltd. The Company commercializes UDENYCA® (pegfilgrastim-cbqv), a biosimilar to Neulasta, a long-acting granulocyte-colony stimulating factor, in the United States. Basis of Presentation The accompanying condensed consolidated financial statements include the accounts of Coherus and its wholly-owned subsidiaries as of September 30, 2020: Coherus Intermediate Corp, InteKrin Therapeutics Inc. (“InteKrin”), and InteKrin’s wholly-owned subsidiary, InteKrin Russia. Unless otherwise specified, references to the Company are references to Coherus and its consolidated subsidiaries. All intercompany transactions and balances have been eliminated upon consolidation. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X of the Securities Act of 1933, as amended (the “Securities Act”). Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. These unaudited condensed consolidated financial statements include all adjustments, consisting only of normal recurring accruals that the Company believes are necessary to fairly state the financial position and the results of the Company’s operations and cash flows for interim periods in accordance with U.S. GAAP. Interim-period results are not necessarily indicative of results of operations or cash flows for a full year or any subsequent interim period. The accompanying condensed consolidated financial statements should be read in conjunction with the Company’s audited financial statements and notes thereto included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on February 27, 2020. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make judgements, estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses, and related disclosures. Management bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. These estimates form the basis for making judgments about the carrying values of assets and liabilities when these values are not readily apparent from other sources. Accounting estimates and judgements are inherently uncertain and the actual results could differ from these estimates. During the second quarter of 2020, the Company identified that certain of its commercial payer invoices were erroneously overstated. The Company received a refund of $7.5 million from these payers related to fiscal year 2019. Additionally, the Company recorded an adjustment during the second quarter of 2020 to decrease accrued payer rebates by $5.8 million primarily related to the first quarter of 2020 based on the revised methodology after such invoice overstatements were corrected. These adjustments increased net product revenue by $0 and $13.3 million for the three and nine months ended September 30, 2020, respectively. These adjustments resulted in an increase in net income per share (basic) of $0 and $0.19 during the three and nine months ended September 30, 2020, respectively and an increase in net income per share (diluted) of $0 and $0.16 during the three and nine months ended September 30, 2020, respectively. Accrued commercial payer rebates of $23.7 million and $14.0 million were recorded in accrued rebates, fees and reserve as of September 30, 2020 and December 31, 2019, respectively, in the condensed consolidated balance sheet. Cash, Cash Equivalents and Restricted Cash The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the condensed consolidated balance sheets and which, in aggregate, represent the amount reported in the condensed consolidated statements of cash flows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ September 30, ​ ​ 2020 2019 ​ Cash and cash equivalents ​ $ 292,465 ​ $ 165,116 ​ Restricted cash ​ — ​ 50 ​ Restricted cash - non-current ​ 440 ​ — ​ Total cash, cash equivalents and restricted cash ​ $ 292,905 ​ $ 165,166 ​ ​ Restricted cash – non-current consists of deposits for letter of credits that the Company has provided to secure its obligations under certain facility and other leases. Investments in Marketable Securities Management determines the appropriate classification of investments in marketable securities at the time of purchase based upon management’s intent with regards to such investment and reevaluates such designation as of each balance sheet date. The Company’s investment policy requires that it only invests in highly-rated securities and limit its exposure to any single issuer. All investments in marketable securities are held as “available-for-sale” and are carried at the estimated fair value as determined based upon quoted market prices or pricing models for similar securities. The Company classifies investments in marketable securities as short-term when they have remaining contractual maturities of one year or less from the balance sheet date. Unrealized gains and losses are reported as a component of accumulated comprehensive income (loss), with the exception of unrealized losses believed to be related to credit losses, which, if any, are recognized through earnings in the period the impairment occurs. Impairment assessments are made at the individual security level each reporting period. When the fair value of an investment is less than its cost at the balance sheet date, a determination is made as to whether the impairment is related to a credit loss and, if it is, the portion of the impairment relating to credit loss is recorded as an allowance through net income. Realized gains and losses and declines in value judged to be other than temporary, if any, on available-for-sale securities are included in other income, net, based on the specific identification method. ​ Trade Receivables Trade receivables are recorded net of allowances for chargebacks, chargeback prepayments, cash discounts for prompt payment and credit losses. The Company estimates an allowance for expected credit losses by considering factors such as historical experience, credit quality, the age of the accounts receivable balances, and current economic conditions that may affect a customer’s ability to pay. The corresponding expense for the credit loss allowance is reflected in selling, general and administrative expenses. The credit loss allowance was immaterial as of September 30, 2020. Recent Accounting Pronouncements The following are the recent accounting pronouncements adopted by the Company in 2020: Effective January 1, 2020, the Company adopted ASU No. 2016-13, Financial Instruments — Credit Losses, (Topic 326): Measurement of Credit Losses on Financial Instruments ASU 2016-13) ASU 2016-13 also eliminates the concept of “other-than-temporary” impairment when evaluating available-for-sale debt securities and instead focuses on determining whether any impairment is a result of a credit loss or other factors. An entity will recognize an allowance for credit losses on available-for-sale debt securities, rather than an other-than-temporary impairment that reduces the cost basis of the investment. In January 2017, the FASB issued ASU No. 2017-04, Intangibles-Goodwill and Other: Simplifying the Test for Goodwill Impairment In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurements The Company has reviewed other recent accounting pronouncements and concluded they are either not applicable to the business or that no material effect is expected on the consolidated financial statements as a result of future adoption.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2020
Fair Value Measurements
Fair Value Measurements	2. Fair Value Measurements Financial assets and liabilities are recorded at fair value. The carrying amounts of certain of the Company’s financial instruments, including cash, cash equivalents, restricted cash, investments in marketable securities, accounts receivable, accounts payable and other current liabilities approximate their fair value due to their short maturities. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The accounting guidance describes a fair value hierarchy based on three levels of inputs that may be used to measure fair value, of which the first two are considered observable and the last is considered unobservable. These levels of inputs are the following: Level 1 — Quoted prices in active markets for identical assets or liabilities. Level 2 — Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The Company’s financial instruments consist of Level 1 and Level 2 assets, and Level 3 liabilities. Where quoted prices are available in an active market, securities are classified as Level 1. Level 1 assets consist of highly liquid money market funds that are included in cash and cash equivalents, and restricted cash. There were no unrealized gains and losses in the Company’s investments in these money market funds. When quoted market prices are not available for the specific security, then the Company estimates the fair value by using quoted prices for identical or similar instruments in markets that are not active and model-based valuation techniques for which all significant inputs are observable in the market or can be corroborated by observable market data for substantially the full term of the assets. Where applicable, these models project future cash flows and discount the future amounts to a present value using market-based observable inputs obtained from various third party data providers, including but not limited to, benchmark yields, interest rate curves, reported trades, broker/dealer quotes and market reference data. Level 2 assets consist of corporate notes and commercial paper. Level 2 inputs for the valuations are limited to quoted prices for similar assets or liabilities in active markets and inputs other than quoted prices that are observable for the asset. In certain cases where there is limited activity or less transparency around inputs to valuation, securities are classified as Level 3. Level 3 liabilities consist of the contingent consideration. There were no transfers between Level 1, Level 2 and Level 3 during the periods presented. Financial assets and liabilities subject to fair value measurements on a recurring basis and the level of inputs used in such measurements were as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value Measurements ​ ​ September 30, 2020 ​ Total Level 1 Level 2 Level 3 Financial Assets: ​ ​ ​ ​ Money market funds ​ $ 278,258 ​ $ 278,258 ​ $ — ​ $ — Restricted cash (money market funds) ​ 440 ​ 440 ​ — ​ — Corporate notes and Commercial paper ​ ​ 36,993 ​ ​ — ​ ​ 36,993 ​ ​ — U.S. government agency securities ​ ​ 186,971 ​ ​ 186,971 ​ ​ — ​ ​ — Total financial assets ​ $ 502,662 ​ $ 465,669 ​ $ 36,993 ​ $ — Financial Liabilities: ​ ​ ​ ​ ​ Contingent consideration ​ $ 102 ​ $ — ​ $ — ​ $ 102 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value Measurements ​ ​ December 31, 2019 ​ Total Level 1 Level 2 Level 3 Financial Assets: ​ ​ ​ ​ Money market funds ​ $ 155,523 ​ $ 155,523 ​ $ — ​ $ — Restricted cash (money market funds) ​ 240 ​ 240 ​ — ​ — Total financial assets ​ $ 155,763 ​ $ 155,763 ​ $ — ​ $ — Financial Liabilities: ​ ​ ​ ​ Contingent consideration ​ $ 102 ​ $ — ​ $ — ​ $ 102 ​ Cash equivalents, investments in marketable securities, which are classified as available-for-sale securities, and restricted cash, consisted of the following (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2020 ​ Cost Unrealized Gain Unrealized (Loss) Estimated Fair Value Money market funds ​ $ 278,258 ​ $ — ​ $ — ​ $ 278,258 Corporate notes and commercial paper ​ ​ 12,998 ​ ​ — ​ ​ — ​ ​ 12,998 Classified as cash equivalents ​ $ 291,256 ​ $ — ​ $ — ​ $ 291,256 ​ ​ ​ ​ ​ ​ ​ ​ ​ Corporate notes and Commercial paper ​ $ 23,995 $ — ​ $ — ​ $ 23,995 U.S. government agency securities ​ ​ 186,953 ​ 18 ​ ​ — ​ ​ 186,971 Classified as investments in marketable securities ​ $ 210,948 $ 18 ​ $ — ​ $ 210,966 ​ ​ ​ ​ ​ ​ ​ ​ ​ Restricted cash (money market funds) ​ $ 440 $ — ​ $ — ​ $ 440 Classified as restricted cash ​ $ 440 $ — ​ $ — ​ $ 440 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2019 ​ Cost Unrealized Gain Unrealized (Loss) Estimated Fair Value Money market funds ​ $ 155,523 ​ $ — ​ $ — ​ $ 155,523 Classified as cash equivalents ​ $ 155,523 ​ $ — ​ $ — ​ $ 155,523 ​ ​ ​ ​ ​ ​ ​ ​ ​ Restricted cash (money market funds) ​ $ 240 $ — ​ $ — ​ $ 240 Classified as restricted cash ​ $ 240 ​ $ — ​ $ — ​ $ 240 ​ ​ 1.5% Convertible Notes due 2026 ​ influenced by interest rates, the Company’s stock price and stock price volatility and is determined by prices observed in market trading. The market for trading of the Convertible Notes due 2026 is not considered to be an active market and therefore the estimate of fair value is based on Level 2 inputs. The estimated fair value of the Convertible Notes due 2026 was approximately $ (par value $230.0 million) as of September 30, 2020. ​ 8.2% Convertible Notes due 2022 The estimated fair value of the 8.2% Convertible Senior Notes due 2022, which the Company issued in February 2016 (see Note 7) is based on an income approach. The estimated fair value was approximately $112.8 million (par value $100.0 million) as of September 30, 2020 and represents a Level 3 valuation. When determining the estimated fair value of the Company’s long-term debt, the Company uses a single factor binomial lattice model, which incorporates the terms and conditions of the convertible notes and market based risk measurement that are indirectly observable, such as credit risk. The lattice model produces an estimated fair value based on changes in the price of the underlying common shares price over successive periods of time. An estimated yield based on market data is used to discount straight debt cash flows. Term Loan The principal amount outstanding under the Company’s Term Loan (see Note 7) of $75 million as of September 30, 2020 is subject to variable interest rate, which is based on a fixed percentage plus three month LIBOR (“LIBOR”), and as such, the Company believes the carrying amount of these obligations approximates fair value.

Inventory

Inventory	9 Months Ended
	Sep. 30, 2020
Inventory
Inventory	3. Inventory Inventory consisted of the following (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ September 30, December 31, ​ ​ 2020 ​ 2019 Raw Materials ​ $ 5,388 ​ $ 5,089 Work in process ​ 64,039 ​ 43,446 Finished goods ​ 16,537 ​ 6,536 Total ​ $ 85,964 ​ $ 55,071 ​ Balance sheet classifications (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ September 30, December 31, ​ ​ 2020 ​ 2019 Inventory ​ $ 35,247 ​ $ 9,807 Inventory, non-current ​ 50,717 ​ 45,264 Total ​ $ 85,964 ​ $ 55,071 ​ Inventory expected to be sold in periods more than twelve months from the balance sheet date is classified as inventory, non-current on the condensed consolidated balance sheet. As of September 30, 2020 and December 31, 2019, the non-current portion of inventory consisted of raw materials and a portion of work in process. Prepaid manufacturing of $21.9 million and $8.6 million included in current assets on the condensed consolidated balance sheet as of September 30, 2020 and December 31, 2019, respectively, includes prepayments of $13.2 million and $7.2 million as of September 30, 2020 and December 31, 2019, respectively, made to a contract manufacturing organization (“CMO”) for manufacturing services for UDENYCA®, which the Company expects to be converted into inventory within the next twelve months.

Balance Sheet Components

Balance Sheet Components	9 Months Ended
	Sep. 30, 2020
Balance Sheet Components
Balance Sheet Components	4. Balance Sheet Components Property and Equipment, Net Property and equipment, net are as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ September 30, December 31, ​ ​ 2020 ​ 2019 Machinery and equipment ​ $ 13,660 ​ $ 12,611 Computer equipment and software ​ 2,256 ​ 2,923 Furniture and fixtures ​ 1,255 ​ 714 Leasehold improvements ​ 5,670 ​ 4,388 Finance lease right of use assets ​ ​ 1,554 ​ ​ — Construction in progress ​ 2,122 ​ 1,500 Total property and equipment ​ 26,517 ​ 22,136 Accumulated depreciation and amortization ​ (15,870) ​ (16,296) Property and equipment, net ​ $ 10,647 ​ $ 5,840 ​ Depreciation and amortization expense was $0.7 million and $2.0 million for the three and nine months ended September 30, 2020, respectively, and $0.8 million and $2.2 million for the three and nine months ended September 30, 2019, respectively. ​ Accrued Liabilities Accrued liabilities are as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ September 30, December 31, ​ ​ 2020 ​ 2019 Accrued clinical and manufacturing ​ $ 13,374 ​ $ 7,106 Accrued other ​ 10,072 ​ 10,152 Accrued liabilities ​ $ 23,446 ​ $ 17,258 ​

Revenue

Revenue	9 Months Ended
	Sep. 30, 2020
Revenue
Revenue	5. Revenue The Company initiated U.S. sales of UDENYCA ® Revenue by significant Customer was distributed as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ Nine Months Ended ​ ​ ​ September 30, 2020 ​ September 30, 2019 ​ ​ September 30, 2020 ​ September 30, 2019 ​ ​ ​ Percent of Total ​ Percent of Total ​ ​ Percent of Total ​ Percent of Total ​ McKesson 37 % ​ 43 % ​ 38 % ​ 43 % ​ AmeriSource-Bergen Corp 39 % ​ 29 % ​ 38 % ​ 30 % ​ Cardinal 22 % ​ 26 % ​ 22 % ​ 25 % ​ Others 2 % ​ 2 % ​ 2 % ​ 2 % ​ Total revenue 100 % ​ 100 % ​ 100 % ​ 100 % ​ ​ Product Sales Discounts and Allowances The activities and ending reserve balances for each significant category of discounts and allowances, which constitute variable consideration, were as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended September 30, 2020 ​ Chargebacks ​ ​ Other Fees, ​ ​ ​ ​ and Discounts ​ ​ ​ ​ Co-pay ​ ​ ​ ​ ​ for Prompt ​ ​ ​ ​ Assistance ​ ​ ​ ​ ​ Payment ​ Rebates ​ and Returns ​ Total Balance at December 31, 2019 ​ $ 35,159 ​ $ 27,494 ​ $ 24,494 ​ $ 87,147 Provision related to sales made in: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Current period ​ ​ 323,070 ​ ​ 80,264 ​ ​ 85,664 ​ ​ 488,998 Prior period ​ ​ (611) ​ ​ (2,884) ​ ​ (6,268) ​ ​ (9,763) Payments and customer credits issued ​ (332,745) ​ (58,102) ​ (74,106) ​ (464,953) Balance at September 30, 2020 ​ $ 24,873 ​ $ 46,772 ​ $ 29,784 ​ $ 101,429 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended September 30, 2019 ​ Chargebacks ​ ​ Other Fees, ​ ​ ​ ​ and Discounts ​ ​ ​ ​ Co-pay ​ ​ ​ ​ ​ for Prompt ​ ​ ​ ​ Assistance ​ ​ ​ ​ ​ Payment ​ Rebates ​ and Returns ​ Total Balance at December 31, 2018 ​ $ — ​ $ — ​ $ — ​ $ — Provision related to current period sales ​ 138,082 ​ 22,748 ​ 45,176 ​ 206,006 Payments and customer credits issued ​ (107,719) ​ (4,745) ​ (25,447) ​ (137,911) Balance at September 30, 2019 ​ $ 30,363 ​ $ 18,003 ​ $ 19,729 ​ $ 68,095 ​ Chargebacks and discounts for prompt payment are recorded as a reduction in trade receivables, and the remaining reserve balances are classified as current liabilities in the accompanying condensed consolidated balance sheets.

License Agreements

License Agreements	9 Months Ended
	Sep. 30, 2020
License Agreements
License Agreements	6. Bioeq AG On November 4, 2019, the Company entered into a license agreement with Bioeq IP AG (now Bioeq AG, or “Bioeq”) for the commercialization of a biosimilar version of ranibizumab (Lucentis®) in certain dosage forms in both a vial and pre-filled syringe presentation (the “Bioeq Licensed Products”). Under this agreement, Bioeq granted to the Company an exclusive, royalty-bearing license to commercialize the Bioeq Licensed Products in the field of ophthalmology (and any other approved labelled indication) in the United States. Bioeq will supply to the Company the Bioeq Licensed Products in accordance with terms and conditions specified in the agreement and a manufacturing and supply agreement to be executed by the parties in accordance therewith. The agreement’s initial term continues in effect for ten years after the first commercial sale of a Bioeq Licensed Product in the United States, and thereafter renews for an unlimited period of time unless otherwise terminated in accordance with its terms. Under the agreement, Bioeq must use commercially reasonable efforts to develop and obtain regulatory approval of the Bioeq Licensed Products in the United States in accordance with a development and manufacturing plan, and the Company must use commercially reasonable efforts to commercialize the Bioeq Licensed Products in accordance with a commercialization plan. Additionally, the Company must commit certain pre-launch and post-launch resources to the commercialization of the Bioeq Licensed Products for a limited time as specified in the agreement. The Company accounted for the licensing transaction as an asset acquisition under the relevant accounting rules. The Company recorded an upfront and a milestone payment aggregating to €10.0 million ($11.1 million) as research and development expense in the fourth quarter of 2019. The Company is obligated to pay Bioeq an aggregate of up to €25.0 million in additional milestone payments in connection with the achievement of certain development and regulatory milestones with respect to the Bioeq Licensed Products in the United States. The Company will share a percentage of gross profits on sales of Bioeq Licensed Products in the United States with Bioeq in the low to mid fifty percent range. The additional milestone payments and royalties are contingent upon future events and, therefore, will be recorded when it is probable that a milestone will be achieved or when royalties are due. As of September 30, 2020 and December 31, 2019, the Company did not have any outstanding obligations for milestones and royalties to Bioeq. Innovent Biologics (Suzhou) Co., Ltd. Innovent will supply the Innovent Licensed Products to the Company in accordance with a manufacturing and supply agreement to be executed by the parties. Under the License Agreement, the Company acquired the right to require Innovent to perform technology transfer for the manufacturing of the Innovent Licensed Products in the Territory and, upon completion of such technology transfer, the Company will have the exclusive right to manufacture the Innovent Licensed Products in the Territory. Under the agreement, the Company committed to pay Innovent a $5.0 million upfront payment and an aggregate of up to $40.0 million in milestone payments in connection with the achievement of certain development, regulatory and sales milestones with respect to the bevacizumab Licensed Product and, if the Company’s option is exercised, an aggregate of up to $40.0 million in milestone payments in connection with the achievement of certain development, regulatory and sales milestones with respect to the rituximab Licensed Product. The Company will share a percentage of net sales of Innovent Licensed Products with Innovent in the mid-teens to low twenty percent range. If the Company exercises its option to acquire Innovent’s biosimilar version of rituximab (Rituxan®), it would be required to pay a fee of $5.0 million. Subject to the terms of the License Agreement, if the Company requests Innovent to perform technology transfer for the manufacturing of the Innovent Licensed Products, it would be required to pay up to $10.0 million for fees related thereto. The Company accounted for the licensing transaction as an asset acquisition under the relevant accounting rules. The Company recorded research and development expense of $2.5 million and $7.5 million during the three and nine months ended September 30, 2020, respectively, related to an upfront payment and a milestone payment for the bevacizumab Licensed Product. As of September 30, 2020 the Company did not have any outstanding milestone or royalty payment obligations to Innovent. The additional milestone payments, option fee for licensing of rituximab (Rituxan®), manufacturing technology transfer fee and royalties are contingent upon future events and, therefore, will be recorded when it is probable that a milestone will be achieved, option fee or manufacturing technology transfer fee will be incurred or when royalties are due. ​

Convertible Notes and Term Loan

Convertible Notes and Term Loan	9 Months Ended
	Sep. 30, 2020
Convertible Notes and Term Loan
Convertible Notes and Term Loan	7. Convertible Notes and Term Loan 1.5% Convertible Senior Subordinated Notes due 2026 In April 2020, the Company issued and sold $230.0 million aggregate principal amount of its 1.5% convertible senior subordinated notes due 2026 (the “2026 Convertible Notes”) in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act. The net proceeds from the offering were $222.2 million after deducting initial purchasers’ fees and offering expenses. The 2026 Convertible Notes are general unsecured obligations and will be subordinated to the Company’s designated senior indebtedness (as defined in the indenture for the 2026 Convertible Notes) and structurally subordinated to all existing and future indebtedness and other liabilities, including trade payables At any time before the close of business on the second scheduled trading day immediately before the maturity date, noteholders may convert their 2026 Convertible Notes at their option into shares of the Company’s common stock, together, if applicable, with cash in lieu of any fractional share, at the then-applicable conversion rate. The initial conversion rate is 51.9224 shares of common stock per $1,000 principal amount of the 2026 Convertible Notes, which represents an initial conversion price of approximately $19.26 per share of common stock. The initial conversion price represents a premium of approximately 30.0% over the last reported sale of $14.815 per share of the Company’s common stock on the Nasdaq Global Market on April 14, 2020. The conversion rate and conversion price will be subject to customary adjustments upon the occurrence of certain events. If a “make-whole fundamental change” (as defined in the indenture for the 2026 Convertible Notes) occurs, the Company will, in certain circumstances, increase the conversion rate for a specified period of time for noteholders who convert their 2026 Convertible Notes in connection with that make-whole fundamental change. The 2026 Convertible Notes are not redeemable at the Company’s election before maturity. If a “fundamental change” (as defined in the indenture for the 2026 Convertible Notes) occurs, then, subject to a limited exception, noteholders may require the Company to repurchase their 2026 Convertible Notes for cash. The repurchase price will be equal to the principal amount of the 2026 Convertible Notes to be repurchased, plus accrued and unpaid interest, if any, to, but excluding, the applicable repurchase date. The 2026 Convertible Notes will have customary provision relating to the occurrence of “events of default” (as defined in the Indenture for the 2026 Convertible Notes). The occurrence of such events of default could result in the acceleration of all amounts due under the 2026 Convertible Notes. ​ As of September 30, 2020, the Company was in full compliance with these covenants and there were no events of default under the 2026 Convertible Notes. ​ The 2026 Convertible Notes are accounted for in accordance with ASC 470-20, Debt with Conversion and Other Options Contracts in Entity’s Own Equity Capped Call Transactions In connection with the pricing of the 2026 Convertible Notes, the Company also paid $18.2 million to enter into privately negotiated capped call transactions with one or more of the initial purchasers or their respective affiliates and/or other financial institutions (the “option counterparties”). The capped call transactions are generally expected to reduce the potential dilution upon conversion of the 2026 Convertible Notes in the event that the market price per share of the Company’s common stock, as measured under the terms of the capped call transactions, is greater than the strike price of the capped call transactions, which initially corresponds to the conversion price of the 2026 Convertible Notes, and is subject to anti-dilution adjustments generally similar to those applicable to the conversion rate of the 2026 Convertible Notes. The cap price of the capped call transactions will initially be $25.9263 per share, which represents a premium of approximately 75.0% over the last reported sale price of the Company’s common stock of $14.815 per share on April 14, 2020, and is subject to certain adjustments under the terms of the capped call transactions. The Company evaluated the capped call transactions under ASC 815-10 and determined that it should be accounted as a separate transaction from the 2026 Convertible Notes and that the capped calls should be classified as equity instruments. Therefore, the capped call premium paid in the amount of $ 18.2 million was recorded as a reduction to additional paid-in capital. The Company incurred $0.9 million of debt issuance costs relating to the issuance of the 2026 Convertible Notes, which were recorded as a reduction to the notes on the condensed consolidated balance sheet. The debt issuance costs is being amortized and recognized as additional interest expense over the six-year contractual term of the notes using the effective interest rate method. The following table summarizes information about the components of the 2026 Convertible Notes (in thousands): ​ ​ ​ ​ ​ September 30, ​ ​ 2020 Principal amount of the 2026 Convertible Notes ​ $ 230,000 Unamortized debt discount and debt issuance costs ​ (7,282) Total 2026 Convertible Notes ​ $ 222,718 ​ If the 2026 Convertible Notes were to be converted on September 30, 2020, the holders of the 2026 Convertible Notes would receive common shares with an aggregate value of $219 million based on the Company’s closing stock price of $18.34 as of September 30, 2020. The following table presents the components of interest expense related to 2026 Convertible Notes (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ September 30, ​ September 30, ​ 2020 ​ 2020 Stated coupon interest ​ $ 863 ​ $ 1,572 Accretion of debt discount and debt issuance costs ​ 309 ​ 562 Total interest expense ​ $ 1,172 ​ $ 2,134 ​ The remaining unamortized debt discount and debt offering costs related to the Company’s 2026 Convertible Notes of approximately $7.3 million as of September 30, 2020, will be amortized using the effective interest rate over the remaining term of the 2026 Convertible Notes of 5.5 years. The annual effective interest rate is 2.11% for the 2026 Convertible Notes. Future payments on the 2026 Convertible Notes as of September 30, 2020 are as follows (in thousands): ​ ​ ​ ​ Year ending December 31, ​ ​ Remainder of 2020 ​ $ 1,706 2021 ​ ​ 3,450 2022 ​ 3,450 2023 ​ 3,450 2024 ​ 3,450 2025 and beyond ​ 235,175 Total minimum payments ​ 250,681 Less amount representing interest ​ (20,681) 2026 Convertible Notes, principal amount ​ 230,000 Less debt discount and debt issuance costs on 2026 Convertible Notes ​ (7,282) Net carrying amount of 2026 Convertible Notes ​ $ 222,718 ​ 8.2% Convertible Notes due 2022 On February 29, 2016, the Company issued and sold $100.0 million aggregate principal amount of its 8.2% Convertible Senior Notes (the “2022 Convertible Notes”). The 2022 Convertible Notes constitute general, senior unsubordinated obligations of the Company and are guaranteed by certain subsidiaries of the Company. The 2022 Convertible Notes bear interest at a fixed coupon rate of 8.2% per annum payable quarterly in arrears on March 31, June 30, September 30 and December 31 of each year, which commenced on March 31, 2016, and mature on March 31, 2022, unless earlier converted, redeemed or repurchased. The 2022 Convertible Notes also bear a premium of 9% of their principal amount, which is payable when the 2022 Convertible Notes mature or are repurchased or redeemed by the Company. The 2022 Convertible Notes were issued to Healthcare Royalty Partners III, L.P., for $75.0 million in aggregate principal amount, and to three related party investors, KKR Biosimilar L.P., MX II Associates LLC, and KMG Capital Partners, LLC, for $20.0 million, $4.0 million, and $1.0 million, respectively, in aggregate principal amount. The 2022 Convertible Notes are convertible at the option of the holder at any time prior to the close of business on the business day immediately preceding March 31, 2022 at the initial conversion rate of 44.7387 shares of common stock per $1,000 principal amount of 2022 Convertible Notes, which is equivalent to an initial conversion price of approximately $22.35 per share, and is subject to adjustment in certain events. Upon conversion of the 2022 Convertible Notes by a holder, the holder will receive shares of the Company’s common stock together, if applicable, with cash in lieu of any fractional share. The 2022 Convertible Notes are redeemable in whole, and not in part, at the Company’s option with effect from March 31, 2020, if the last reported sale price per share of common stock exceeds 160% of the conversion price on 20 or more trading days during the 30 consecutive trading days preceding the date on which the Company sends notice of such redemption to the holders of the 2022 Convertible Notes. At maturity or redemption, if not earlier converted, the Company will pay 109% of the principal amount of the 2022 Convertible Notes maturing or being redeemed, together with accrued and unpaid interest, in cash. The 2022 Convertible Notes contain customary negative covenants and events of default (as defined in the Note Purchase Agreement (as defined below)), the occurrence of which could result in the acceleration of all amounts due under the 2022 Convertible Note. As of September 30, 2020, the Company was in full compliance with these covenants and there were no events of default under the 2022 Convertible Notes. The 2022 Convertible Notes are accounted for in accordance with ASC Subtopic 470-20, Debt with Conversion and Other Options On April 13, 2020, the Company entered into an amendment (the “Second Amendment”) to the 2022 Convertible Note Purchase Agreement, dated as of February 29, 2016 (the “Note Purchase Agreement”), which amended the definition of Restricted Payment to exclude any payment (including a premium) to a counterparty under a Permitted Bond Hedge Transaction (as defined in the Note Purchase Agreement). The Second Amendment also added to the Note Purchase Agreement a definition of Permitted Bond Hedge Transaction, with such definition including any capped call option (or substantively equivalent derivative transaction) relating to the Company’s common stock purchased by it in connection with any issuance of indebtedness or convertible indebtedness. The following table summarizes information about the components of the 2022 Convertible Notes (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ September 30, December 31, ​ ​ 2020 ​ 2019 Principal amount of the 2022 Convertible Notes ​ $ 81,750 ​ $ 81,750 Unamortized debt discount and debt issuance costs ​ (2,213) ​ (3,208) 2022 Convertible Notes ​ $ 79,537 ​ $ 78,542 Principal amount of the 2022 Convertible Notes - related parties ​ $ 27,250 ​ $ 27,250 Unamortized debt discount and debt issuance costs - related parties ​ (738) ​ (1,069) 2022 Convertible Notes - related parties ​ $ 26,512 ​ $ 26,181 Total 2022 Convertible Notes ​ $ 106,049 ​ $ 104,723 ​ If the 2022 Convertible Notes were to be converted on September 30, 2020, the holders of the 2022 Convertible Notes would receive common shares with an aggregate value of $82.1 million based on the Company’s closing stock price of $18.34. The following table presents the components of interest expense (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ ​ September 30, ​ September 30, ​ ​ 2020 2019 2020 2019 ​ Stated coupon interest ​ $ 1,538 ​ $ 1,538 ​ $ 4,614 ​ $ 4,613 ​ Accretion of debt discount and debt issuance costs ​ 340 ​ 309 ​ 996 ​ 906 ​ Interest expense ​ $ 1,878 ​ $ 1,847 ​ $ 5,610 ​ $ 5,519 ​ Stated coupon interest - related parties ​ $ 512 ​ $ 512 ​ $ 1,536 ​ $ 1,537 ​ Accretion of debt discount and debt issuance costs - related parties ​ 113 ​ 103 ​ 331 ​ 302 ​ Interest expense - related parties ​ $ 625 ​ $ 615 ​ $ 1,867 ​ $ 1,839 ​ Total interest expense ​ $ 2,503 ​ $ 2,462 ​ $ 7,477 ​ $ 7,358 ​ ​ The remaining unamortized debt discount and debt offering costs related to the Company’s 2022 Convertible Notes of approximately $3.0 million as of September 30, 2020, will be amortized using the effective interest rate over the remaining term of the 2022 Convertible Notes of 1.5 years. The annual effective interest rate is 9.48% for the 2022 Convertible Notes. Future payments on the 2022 Convertible Notes as of September 30, 2020 are as follows (in thousands): ​ ​ ​ ​ Year ending December 31, ​ ​ Remainder of 2020 ​ $ 2,050 2021 ​ ​ 8,200 2022 ​ 111,050 Total minimum payments ​ 121,300 Less amount representing interest ​ (12,300) 2022 Convertible Notes, principal amount ​ 109,000 Less debt discount and debt issuance costs on 2022 Convertible Notes ​ (2,951) Net carrying amount of 2022 Convertible Notes ​ $ 106,049 ​ Term Loan On January 7, 2019 (“the “Term Loan Closing Date”), the Company entered into a credit agreement (the “Term Loan”) with affiliates of Healthcare Royalty Partners (together, the “Lender”). The Term Loan consists of a six-year term loan facility for an aggregate principal amount of $75.0 million (the “Borrowings”). The obligations of the Company under the loan documents are guaranteed by the Company’s material domestic U.S. subsidiaries. The Borrowings under the Term Loan bear interest through maturity at 7.00% per annum plus three month LIBOR. Pursuant to the terms of the Term Loan, the interest rate was reduced to 6.75% per annum plus LIBOR as of January 1, 2020 as the consolidated net sales for UDENYCA ® The Company is required to pay principal on the Borrowings in equal quarterly installments beginning on the four year anniversary of the Term Loan Closing Date (or, if consolidated net sales of UDENYCA ® The Company is also required to make mandatory prepayments of the Borrowings under the Term Loan, subject to specified exceptions, with the proceeds of asset sales, extraordinary receipts, debt issuances and specified other events including the occurrence of a change in control. If all or any of the Borrowings are prepaid or required to be prepaid under the Term Loan, then the Company shall pay, in addition to such prepayment, a prepayment premium equal to (i) with respect to any prepayment paid or required to be paid on or prior to the three year anniversary of the Credit Agreement Closing Date, 5.00% of the Borrowings prepaid or required to be prepaid, plus all required interest payments that would have been due on the Borrowings prepaid or required to be prepaid through and including the three year anniversary of the Term Loan Closing Date, (ii) with respect to any prepayment paid or required to be paid after the three year anniversary of the Term Loan Closing Date but on or prior to the four year anniversary of the Term Loan Closing Date, 5.00% of the Borrowings prepaid or required to be prepaid, (iii) with respect to any prepayment paid or required to be paid after the four year anniversary of the Term Loan Closing Date but on or prior to the five year anniversary of the Term Loan Closing Date, 2.50% of the Borrowings prepaid or required to be prepaid, and (iv) with respect to any prepayment paid or required to be prepaid thereafter, 1.25% of the Borrowings prepaid or required to be prepaid. In connection with the Term Loan, the Company paid a fee to the Lender of approximately $1.1 million at closing in the form of an original issue discount. Upon the prepayment or maturity of the Borrowings (or upon the date such prepayment or repayment is required to be paid), it is required to pay an additional exit fee in an amount equal to 4.00% of the total principal amount of the Borrowings. The obligations under the Term Loan are secured by a lien on substantially all of the Company’s and its Guarantors’ tangible and intangible property, including intellectual property. The Term Loan contains certain affirmative covenants, negative covenants and events of default, including, covenants and restrictions that among other things, restrict the ability of the Company and its subsidiaries to, incur liens, incur additional indebtedness, make loans and investments, engage in mergers and acquisitions, in asset sales, and declare dividends or redeem or repurchase capital stock. Additionally, the consolidated net sales for UDENYCA ® On April 13, 2020, the Company entered into an amendment to the Term Loan, which amended the Term Loan’s indebtedness covenant such that the Company could incur Convertible Bond Indebtedness (as defined in the credit agreement governing the Term Loan) in an amount not to exceed the greater of $230.0 million or 20% of the Company’s market capitalization. The following table summarizes information about the components of the Term Loan (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ September 30, December 31, ​ ​ 2020 2019 Principal amount of the Term Loan ​ $ 75,000 ​ $ 75,000 Unamortized debt discount and debt issuance costs ​ (733) ​ (1,337) Term Loan ​ $ 74,267 ​ $ 73,663 ​ The following table presents the components of interest expense (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ September 30, ​ September 30, ​ ​ ​ 2020 ​ 2019 ​ 2020 ​ 2019 ​ Stated coupon interest ​ $ 1,773 ​ $ 1,821 ​ $ 5,280 ​ $ 5,242 ​ Accretion of debt discount and debt issuance costs ​ 208 ​ 186 ​ 604 ​ 518 ​ Interest expense ​ $ 1,981 ​ $ 2,007 ​ $ 5,884 ​ $ 5,760 ​ ​ The remaining unamortized debt discount and debt offering costs related to the Term Loan of approximately $0.7 million as of September 30, 2020, will be amortized using the effective rate over the remaining term of the Term Loan of 4.25 years. Future payments on the Term Loan as of September 30, 2020 are as follows (in thousands): ​ ​ ​ ​ Year ending December 31, ​ ​ Remainder of 2020 ​ $ 1,773 2021 ​ ​ 7,034 2022 ​ 7,034 2023 ​ 39,187 2024 ​ 36,072 2025 ​ 11,348 Total minimum payments ​ 102,448 Less amount representing interest ​ (24,448) Term Loan, gross ​ 78,000 Less debt discount and debt issuance costs on Term Loan ​ (3,733) Net carrying amount of Term Loan ​ $ 74,267 ​

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2020
Commitments and Contingencies.
Commitments and Contingencies	8. Commitments and Contingencies Purchase Commitments The Company entered into agreements with a vendor to secure raw materials and a CMO to manufacture its commercial supply of UDENYCA ® ​ ​ ​ ​ Years ending December 31, ​ ​ Remainder of 2020 ​ $ 8,813 2021 ​ ​ 38,195 2022 ​ 9,573 2023 ​ 3,386 Total obligations ​ $ 59,967 ​ The Company enters into contracts in the normal course of business with contract research organizations for preclinical studies and clinical trials and contract manufacturing organizations for the manufacture of clinical trial materials. The contracts are cancellable, with varying provisions regarding termination. If a contract with a specific vendor were to be terminated, the Company would only be obligated for products or services that the Company had received as of the effective date of the termination and any applicable cancellation fees. Contingencies On March 3, 2017, Amgen filed an action against the Company, KBI BioPharma Inc., the Company’s employee Howard S. Weiser and Does 1-20 in the Superior Court of the State of California, County of Ventura. The complaint alleges that the Company engaged in unfair competition and improperly solicited and hired certain former Amgen employees in order to acquire and access trade secrets and other confidential information belonging to Amgen. On June 1, 2017, Amgen filed a Second Amended Complaint, which alleges as to Coherus (i) unfair competition under California Business and Professions Code Section 17200 et seq., (ii) misappropriation of trade secrets, (iii) aiding and abetting breach of duty of loyalty and (iv) tortious interference with contract. As to defendant Weiser, the Second Amended Complaint alleges (i) unfair competition under California Business and Professions Code Section 17200 et seq., (ii) misappropriation of trade secrets, (iii) breach of contract, (iv) violation of Penal Code Section 502 and (v) breach of duty of loyalty. KBI BioPharma Inc. is not named as a defendant in the Second Amended Complaint. The Second Amended Complaint seeks injunctive relief and monetary damages. On May 2, 2019, the Company and Amgen settled the trade secret action brought by Amgen. The details of the settlement are confidential but the Company will continue to market UDENYCA ® Guarantees and Indemnifications In the normal course of business, the Company enters into contracts and agreements that contain a variety of representations and warranties and provide for general indemnifications. The Company’s exposure under these agreements is unknown because it involves claims that may be made against the Company in the future, but have not yet been made. To date, the Company has not paid any claims or been required to defend any action related to its indemnification obligations. However, the Company may record charges in the future as a result of these indemnification obligations. The Company would assess the likelihood of any adverse judgments or related claims, as well as ranges of probable losses. In the cases where the Company believes that a reasonably possible or probable loss exists, it will disclose the facts and circumstances of the claims, including an estimate range, if possible.

Leases

Leases	9 Months Ended
	Sep. 30, 2020
Leases
Leases	9. Leases In July 2015, the Company entered into the office space for its corporate headquarters in Redwood City, California under an operating lease agreement, which has been subject to amendments to secure additional space such that the total headquarters leased space is approximately 47,789 square feet. The Lease Agreement, provides for certain limited rent abatement and contains annual scheduled rent increases over the lease term. The lease terminates in September 2024 extend The Company also leases laboratory facilities in Camarillo, California. In October 2019, the Company entered into a new laboratory facility lease (“New Camarillo Lease”) of approximately 25,017 square feet in a new location in Camarillo, California as the current Camarillo leases terminate in June 2020 and December 2020. The New Camarillo Lease provides for certain limited rent abatement and annual scheduled rent increases over the lease term. The lease commenced in January 2020 and terminates in May 2027 extend The Company determined that the above facility leases were operating leases. The options to extend the lease terms for these leases were not included as part of the right-of-use asset or lease liability as the Company was not reasonably certain it would exercise those options. In 2019, the Company entered into a vehicle lease agreement, pursuant to which it currently leases 41 vehicles. Delivery of the vehicles commenced during the first quarter of 2020. The term of each leased vehicle commences upon the delivery of the vehicle and is for a period of 36 months. The vehicles leased under this arrangement were classified as finance leases. In determining the present value of the lease payments, the Company used the incremental borrowing rate based on the information available on January 1, 2019 (adoption date of ASC 842) for the leases that commenced prior to that date. For all other leases, the Company used the incremental borrowing rate on the lease commencement or the lease modification date, as applicable. The supplemental information related to Company’s leases is as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ December 31, Assets Balance Sheet Classification 2020 2019 Operating lease ​ Operating lease right-of-use assets ​ $ 10,470 ​ $ 10,649 Finance lease ​ Property and equipment, net ​ ​ 1,554 ​ ​ — Total leased assets ​ ​ ​ $ 12,024 ​ $ 10,649 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ December 31, Liabilities Balance Sheet Classification 2020 2019 Operating lease liabilities, current ​ Other current liabilities ​ $ 2,510 ​ $ 2,196 Operating lease liabilities, non-current ​ Lease liabilities, non-current ​ ​ 9,743 ​ ​ 10,256 Total operating lease liabilities ​ ​ ​ $ 12,253 ​ $ 12,452 ​ ​ ​ ​ ​ ​ ​ ​ ​ Finance lease liabilities, current ​ Other current liabilities ​ $ 541 ​ $ — Finance lease liabilities, non-current ​ Lease liabilities, non-current ​ ​ 986 ​ ​ — Total finance lease liabilities ​ ​ ​ $ 1,527 ​ $ 0 ​ Operating lease costs were $0.8 million and $0.6 million for the three months ended September 30, 2020 and 2019, respectively, and $2.4 million and $1.7 million for the nine months ended September 30, 2020 and 2019, respectively. Cash paid for amounts included in the measurement of the operating lease liabilities for the three months ended September 30, 2020 and 2019 was $0.8 million and $0.7 million, respectively, and $2.4 million and $2.0 million for the nine months ended September 30, 2020 and 2019, respectively, and was included in net cash used in operating activities in the condensed consolidated statements of cash flows. Finance lease costs and cash paid for amounts included in the measurement of finance lease liabilities were immaterial during the three and nine months ended September 30, 2020 and 2019. ​ As of September 30, 2020, the maturities of the operating and finance lease liabilities were as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ Years ending December 31, Operating leases ​ Finance leases Remainder of 2020 ​ $ 852 ​ $ 156 2021 ​ ​ 3,425 ​ ​ 610 2022 ​ 3,293 ​ 610 2023 ​ 3,438 ​ 271 2024 ​ 2,888 ​ — 2025 and beyond ​ 700 ​ — Total lease payments ​ 14,596 ​ 1,647 Less imputed interest ​ (2,343) ​ (120) Operating lease liabilities ​ $ 12,253 ​ $ 1,527 ​ As of September 30, 2020 and December 31, 2019, the weighted average remaining lease term for operating leases was 4.3 years and 4.7 years, respectively. The weighted average discount rate used to determine the operating lease liabilities was 8.1% and 8.2% as of September 30, 2020 and December 31, 2019, respectively. The weighted average remaining lease term for finance leases was 2.7 years as of September 30, 2020. The weighted average discount rate used to determine the finance lease liabilities was 5.8% as of September 30, 2020.

Common Stock and Stock-Based Co

Common Stock and Stock-Based Compensation	9 Months Ended
	Sep. 30, 2020
Common Stock and Stock-Based Compensation
Common Stock and Stock-Based Compensation	10. Common Stock and Stock-Based Compensation Common Stock Offerings On October 28, 2016, the Company entered into a sales agreement (the “Sales Agreement”) with Cowen to sell shares of the Company’s common stock, with aggregate gross sales proceeds of up to $100,000,000, from time to time, through an at-the-market equity offering program under which Cowen acted as its sales agent (the “ATM Offering Program”). Cowen was entitled to compensation for its services equal to 3.0% of the gross proceeds of any shares of common stock sold through Cowen under the Sales Agreement. In the first quarter of 2019, the Company sold 761,130 shares of common stock at a weighted average price of $11.17 per share through its ATM Offering Program and received total gross proceeds of $8.5 million. After deducting commission and offering expenses of $0.3 million, the net proceeds were $8.2 million. Following such sales in the first quarter of 2019, the ATM Offering Program terminated as all shares authorized thereunder had been sold. Stock-Based Compensation The stock-based compensation expense recorded related to options and restricted stock units granted to employees and nonemployees were as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ ​ September 30, ​ September 30, ​ ​ 2020 2019 2020 2019 ​ Cost of goods sold (1) ​ $ 175 ​ $ 27 ​ $ 396 ​ $ 70 ​ Research and development ​ 3,231 ​ 3,805 ​ 10,315 ​ 10,427 ​ Selling, general and administrative ​ 5,902 ​ 4,958 ​ 17,576 ​ 15,822 ​ ​ ​ $ 9,308 ​ $ 8,790 ​ $ 28,287 ​ $ 26,319 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Capitalized stock-based compensation expense into inventory ​ $ 324 ​ $ 435 ​ $ 1,196 ​ $ 1,267 ​ ​ (1) Stock-based compensation capitalized into inventory is recognized as cost of goods sold when the related product is sold.

Net Income Per Share

Net Income Per Share	9 Months Ended
	Sep. 30, 2020
Net Income Per Share
Net Income Per Share	11. Net Income Per Share Basic net income per share is calculated by dividing the net income by the weighted-average number of shares of common stock outstanding for the period, without consideration for potential dilutive common shares. Diluted net income per share is computed by dividing the net income by the weighted average number of common shares outstanding for the period plus any diluted potential common shares outstanding for the period determined using the treasury stock method for options, RSUs and ESPP and using the if-converted method for the convertible notes. The following table sets forth the computation of the basic and diluted net income per share (in thousands, except share and per share data): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ ​ September 30, ​ September 30, ​ ​ 2020 2019 2020 2019 ​ Basic net income per share ​ ​ ​ ​ ​ ​ Numerator: ​ ​ ​ ​ ​ ​ Net income ​ $ 27,933 ​ $ 47,043 ​ $ 122,536 ​ $ 50,606 ​ Denominator: ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted-average common shares outstanding ​ 71,649,350 ​ 69,877,693 ​ 71,138,973 ​ 69,501,835 ​ Basic net income per share ​ $ 0.39 ​ $ 0.67 ​ $ 1.72 ​ $ 0.73 ​ Diluted net income per share ​ ​ ​ ​ ​ Numerator: ​ ​ ​ ​ ​ Net income ​ $ 27,933 ​ $ 47,043 ​ $ 122,536 ​ $ 50,606 ​ Add interest expense on 2026 convertible notes, net of tax ​ 1,172 ​ 2,462 ​ 2,134 ​ — ​ Numerator for diluted net income per share ​ $ 29,105 ​ $ 49,505 ​ $ 124,670 ​ $ 50,606 ​ Denominator: ​ ​ ​ ​ ​ ​ ​ ​ ​ Denominator for basic net income per share ​ 71,649,350 ​ 69,877,693 ​ 71,138,973 ​ 69,501,835 ​ Add effect of potential dilutive securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ Stock options, including purchases from contributions to ESPP ​ 3,641,721 ​ 4,165,666 ​ 3,505,479 ​ 3,353,962 ​ Restricted stock units ​ 237,114 ​ 12,997 ​ 143,146 ​ 16,279 ​ Shares issuable upon conversion of 2026 Convertible Notes ​ ​ 11,942,152 ​ ​ 4,473,871 ​ ​ 7,255,871 ​ ​ — ​ Denominator for diluted net income per share ​ 87,470,337 ​ 78,530,227 ​ 82,043,469 ​ 72,872,076 ​ Diluted net income per share ​ $ 0.33 ​ $ 0.63 ​ $ 1.52 ​ $ 0.69 ​ ​ The following outstanding dilutive potential shares were excluded from the calculation of diluted net income per share due to their anti-dilutive effect: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ ​ September 30, ​ September 30, ​ ​ 2020 2019 2020 2019 ​ Stock options, including purchases from contributions to ESPP 9,397,713 6,465,093 ​ 9,269,082 10,284,369 ​ Restricted stock units — 10,750 ​ 7,217 3,623 ​ Shares issuable upon conversion of 2022 Convertible Notes 4,473,871 — ​ 4,473,871 4,473,871 ​ Total 13,871,584 6,475,843 ​ 13,750,170 14,761,863 ​ ​

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2020
Income Taxes
Income Taxes	12. Income Taxes The Company recorded income tax provision of $0.2 million and $0.8 million for the three months ended September 30, 2020 and 2019, respectively, and $2.4 million and $0.9 million for the nine months ended September 30, 2020 and 2019, respectively, which comprised of state taxes in jurisdictions outside of California for which the Company has a limited operating history. Income tax provision during interim periods is based on applying an estimated annual effective income tax rate to year-to-date income, plus any significant unusual or infrequently occurring items, which are recorded in the interim period in accordance with ASC 740-270. The income tax provision differs from the U.S. federal statutory rate of 21% primarily due to effect of change in the valuation allowance against the Company’s federal deferred tax assets, which reduced the Company’s net tax expense. The Company maintains a full valuation allowance against its net deferred tax assets due to the Company’s history of losses. Coronavirus Aid, Relief and Economic Security Act ​ In March 2020, the U.S. government enacted the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), which includes modifications to the limitation on business interest expense deduction and net operating loss provisions and provides a payment delay of employer payroll taxes during 2020 after the date of enactment. The Company does not expect the CARES Act to have a material impact on the Company’s financial statements.

Related Party Transactions

Related Party Transactions	9 Months Ended
	Sep. 30, 2020
Related Party Transactions
Related Party Transactions	13. Related Party Transactions Convertible Notes In February 2016, the Company issued Convertible Notes to certain related parties (some companies affiliated with members of the Company’s board of directors), for an aggregate principal amount of $25.0 million (see Note 7 for related party disclosure).

Organization and Summary of S_2

Organization and Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2020
Organization and Summary of Significant Accounting Policies
Organization and Basis of Presentation	Organization Coherus BioSciences, Inc. (the “Company”, “Coherus”, “we”, our” or “us”) is a commercial-stage biotherapeutics company, focused on the biosimilar market primarily in the United States. The Company’s headquarters and laboratories are located in Redwood City, California and in Camarillo, California, respectively. The Company’s biosimilar pipeline comprises of four biosimilar drugs, CHS-1420 (an adalimumab (Humira®) biosimilar), CHS-2020 (an aflibercept (Eylea®) biosimilar), a ranibizumab (Lucentis®) biosimilar in-licensed for U.S. and Canadian commercial rights from Bioeq AG, and a bevacizumab (Avastin®) biosimilar in-licensed for U.S. commercial rights from Innovent Biologics (Suzhou) Co., Ltd. The Company commercializes UDENYCA® (pegfilgrastim-cbqv), a biosimilar to Neulasta, a long-acting granulocyte-colony stimulating factor, in the United States. Basis of Presentation The accompanying condensed consolidated financial statements include the accounts of Coherus and its wholly-owned subsidiaries as of September 30, 2020: Coherus Intermediate Corp, InteKrin Therapeutics Inc. (“InteKrin”), and InteKrin’s wholly-owned subsidiary, InteKrin Russia. Unless otherwise specified, references to the Company are references to Coherus and its consolidated subsidiaries. All intercompany transactions and balances have been eliminated upon consolidation. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X of the Securities Act of 1933, as amended (the “Securities Act”). Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. These unaudited condensed consolidated financial statements include all adjustments, consisting only of normal recurring accruals that the Company believes are necessary to fairly state the financial position and the results of the Company’s operations and cash flows for interim periods in accordance with U.S. GAAP. Interim-period results are not necessarily indicative of results of operations or cash flows for a full year or any subsequent interim period. The accompanying condensed consolidated financial statements should be read in conjunction with the Company’s audited financial statements and notes thereto included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on February 27, 2020.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make judgements, estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses, and related disclosures. Management bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. These estimates form the basis for making judgments about the carrying values of assets and liabilities when these values are not readily apparent from other sources. Accounting estimates and judgements are inherently uncertain and the actual results could differ from these estimates. During the second quarter of 2020, the Company identified that certain of its commercial payer invoices were erroneously overstated. The Company received a refund of $7.5 million from these payers related to fiscal year 2019. Additionally, the Company recorded an adjustment during the second quarter of 2020 to decrease accrued payer rebates by $5.8 million primarily related to the first quarter of 2020 based on the revised methodology after such invoice overstatements were corrected. These adjustments increased net product revenue by $0 and $13.3 million for the three and nine months ended September 30, 2020, respectively. These adjustments resulted in an increase in net income per share (basic) of $0 and $0.19 during the three and nine months ended September 30, 2020, respectively and an increase in net income per share (diluted) of $0 and $0.16 during the three and nine months ended September 30, 2020, respectively. Accrued commercial payer rebates of $23.7 million and $14.0 million were recorded in accrued rebates, fees and reserve as of September 30, 2020 and December 31, 2019, respectively, in the condensed consolidated balance sheet.
Cash, Cash Equivalents and Restricted Cash	Cash, Cash Equivalents and Restricted Cash The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the condensed consolidated balance sheets and which, in aggregate, represent the amount reported in the condensed consolidated statements of cash flows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ September 30, ​ ​ 2020 2019 ​ Cash and cash equivalents ​ $ 292,465 ​ $ 165,116 ​ Restricted cash ​ — ​ 50 ​ Restricted cash - non-current ​ 440 ​ — ​ Total cash, cash equivalents and restricted cash ​ $ 292,905 ​ $ 165,166 ​ ​ Restricted cash – non-current consists of deposits for letter of credits that the Company has provided to secure its obligations under certain facility and other leases.
Investments in Marketable Securities	Investments in Marketable Securities Management determines the appropriate classification of investments in marketable securities at the time of purchase based upon management’s intent with regards to such investment and reevaluates such designation as of each balance sheet date. The Company’s investment policy requires that it only invests in highly-rated securities and limit its exposure to any single issuer. All investments in marketable securities are held as “available-for-sale” and are carried at the estimated fair value as determined based upon quoted market prices or pricing models for similar securities. The Company classifies investments in marketable securities as short-term when they have remaining contractual maturities of one year or less from the balance sheet date. Unrealized gains and losses are reported as a component of accumulated comprehensive income (loss), with the exception of unrealized losses believed to be related to credit losses, which, if any, are recognized through earnings in the period the impairment occurs. Impairment assessments are made at the individual security level each reporting period. When the fair value of an investment is less than its cost at the balance sheet date, a determination is made as to whether the impairment is related to a credit loss and, if it is, the portion of the impairment relating to credit loss is recorded as an allowance through net income. Realized gains and losses and declines in value judged to be other than temporary, if any, on available-for-sale securities are included in other income, net, based on the specific identification method.
Trade Receivables	Trade Receivables Trade receivables are recorded net of allowances for chargebacks, chargeback prepayments, cash discounts for prompt payment and credit losses. The Company estimates an allowance for expected credit losses by considering factors such as historical experience, credit quality, the age of the accounts receivable balances, and current economic conditions that may affect a customer’s ability to pay. The corresponding expense for the credit loss allowance is reflected in selling, general and administrative expenses. The credit loss allowance was immaterial as of September 30, 2020.
Recent Accounting Pronouncements	Recent Accounting Pronouncements The following are the recent accounting pronouncements adopted by the Company in 2020: Effective January 1, 2020, the Company adopted ASU No. 2016-13, Financial Instruments — Credit Losses, (Topic 326): Measurement of Credit Losses on Financial Instruments ASU 2016-13) ASU 2016-13 also eliminates the concept of “other-than-temporary” impairment when evaluating available-for-sale debt securities and instead focuses on determining whether any impairment is a result of a credit loss or other factors. An entity will recognize an allowance for credit losses on available-for-sale debt securities, rather than an other-than-temporary impairment that reduces the cost basis of the investment. In January 2017, the FASB issued ASU No. 2017-04, Intangibles-Goodwill and Other: Simplifying the Test for Goodwill Impairment In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurements The Company has reviewed other recent accounting pronouncements and concluded they are either not applicable to the business or that no material effect is expected on the consolidated financial statements as a result of future adoption.

Organization and Summary of S_3

Organization and Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2020
Organization and Summary of Significant Accounting Policies
Schedule of Reconciliation of Cash, Cash Equivalents and Restricted Cash	The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the condensed consolidated balance sheets and which, in aggregate, represent the amount reported in the condensed consolidated statements of cash flows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ September 30, ​ ​ 2020 2019 ​ Cash and cash equivalents ​ $ 292,465 ​ $ 165,116 ​ Restricted cash ​ — ​ 50 ​ Restricted cash - non-current ​ 440 ​ — ​ Total cash, cash equivalents and restricted cash ​ $ 292,905 ​ $ 165,166 ​

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2020
Fair Value Measurements
Financial Assets and Liabilities Measured on a Recurring Basis	Financial assets and liabilities subject to fair value measurements on a recurring basis and the level of inputs used in such measurements were as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value Measurements ​ ​ September 30, 2020 ​ Total Level 1 Level 2 Level 3 Financial Assets: ​ ​ ​ ​ Money market funds ​ $ 278,258 ​ $ 278,258 ​ $ — ​ $ — Restricted cash (money market funds) ​ 440 ​ 440 ​ — ​ — Corporate notes and Commercial paper ​ ​ 36,993 ​ ​ — ​ ​ 36,993 ​ ​ — U.S. government agency securities ​ ​ 186,971 ​ ​ 186,971 ​ ​ — ​ ​ — Total financial assets ​ $ 502,662 ​ $ 465,669 ​ $ 36,993 ​ $ — Financial Liabilities: ​ ​ ​ ​ ​ Contingent consideration ​ $ 102 ​ $ — ​ $ — ​ $ 102 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value Measurements ​ ​ December 31, 2019 ​ Total Level 1 Level 2 Level 3 Financial Assets: ​ ​ ​ ​ Money market funds ​ $ 155,523 ​ $ 155,523 ​ $ — ​ $ — Restricted cash (money market funds) ​ 240 ​ 240 ​ — ​ — Total financial assets ​ $ 155,763 ​ $ 155,763 ​ $ — ​ $ — Financial Liabilities: ​ ​ ​ ​ Contingent consideration ​ $ 102 ​ $ — ​ $ — ​ $ 102
Schedule of Cash equivalents, investments in marketable securities, which are classified as available-for-sale securities, and restricted cash	Cash equivalents, investments in marketable securities, which are classified as available-for-sale securities, and restricted cash, consisted of the following (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2020 ​ Cost Unrealized Gain Unrealized (Loss) Estimated Fair Value Money market funds ​ $ 278,258 ​ $ — ​ $ — ​ $ 278,258 Corporate notes and commercial paper ​ ​ 12,998 ​ ​ — ​ ​ — ​ ​ 12,998 Classified as cash equivalents ​ $ 291,256 ​ $ — ​ $ — ​ $ 291,256 ​ ​ ​ ​ ​ ​ ​ ​ ​ Corporate notes and Commercial paper ​ $ 23,995 $ — ​ $ — ​ $ 23,995 U.S. government agency securities ​ ​ 186,953 ​ 18 ​ ​ — ​ ​ 186,971 Classified as investments in marketable securities ​ $ 210,948 $ 18 ​ $ — ​ $ 210,966 ​ ​ ​ ​ ​ ​ ​ ​ ​ Restricted cash (money market funds) ​ $ 440 $ — ​ $ — ​ $ 440 Classified as restricted cash ​ $ 440 $ — ​ $ — ​ $ 440 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2019 ​ Cost Unrealized Gain Unrealized (Loss) Estimated Fair Value Money market funds ​ $ 155,523 ​ $ — ​ $ — ​ $ 155,523 Classified as cash equivalents ​ $ 155,523 ​ $ — ​ $ — ​ $ 155,523 ​ ​ ​ ​ ​ ​ ​ ​ ​ Restricted cash (money market funds) ​ $ 240 $ — ​ $ — ​ $ 240 Classified as restricted cash ​ $ 240 ​ $ — ​ $ — ​ $ 240 ​

Inventory (Tables)

Inventory (Tables)	9 Months Ended
	Sep. 30, 2020
Inventory
Schedule of Inventory	Inventory consisted of the following (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ September 30, December 31, ​ ​ 2020 ​ 2019 Raw Materials ​ $ 5,388 ​ $ 5,089 Work in process ​ 64,039 ​ 43,446 Finished goods ​ 16,537 ​ 6,536 Total ​ $ 85,964 ​ $ 55,071
Schedule of Balance Sheet Classification	Balance sheet classifications (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ September 30, December 31, ​ ​ 2020 ​ 2019 Inventory ​ $ 35,247 ​ $ 9,807 Inventory, non-current ​ 50,717 ​ 45,264 Total ​ $ 85,964 ​ $ 55,071

Balance Sheet Components (Table

Balance Sheet Components (Tables)	9 Months Ended
	Sep. 30, 2020
Basis of Presentation
Schedule of Property and Equipment, Net	Property and equipment, net are as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ September 30, December 31, ​ ​ 2020 ​ 2019 Machinery and equipment ​ $ 13,660 ​ $ 12,611 Computer equipment and software ​ 2,256 ​ 2,923 Furniture and fixtures ​ 1,255 ​ 714 Leasehold improvements ​ 5,670 ​ 4,388 Finance lease right of use assets ​ ​ 1,554 ​ ​ — Construction in progress ​ 2,122 ​ 1,500 Total property and equipment ​ 26,517 ​ 22,136 Accumulated depreciation and amortization ​ (15,870) ​ (16,296) Property and equipment, net ​ $ 10,647 ​ $ 5,840
Schedule of Accrued Liabilities	Accrued liabilities are as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ September 30, December 31, ​ ​ 2020 ​ 2019 Accrued clinical and manufacturing ​ $ 13,374 ​ $ 7,106 Accrued other ​ 10,072 ​ 10,152 Accrued liabilities ​ $ 23,446 ​ $ 17,258

Revenue (Tables)

Revenue (Tables)	9 Months Ended
	Sep. 30, 2020
Revenue
Revenue by Significant Customer	Revenue by significant Customer was distributed as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ Nine Months Ended ​ ​ ​ September 30, 2020 ​ September 30, 2019 ​ ​ September 30, 2020 ​ September 30, 2019 ​ ​ ​ Percent of Total ​ Percent of Total ​ ​ Percent of Total ​ Percent of Total ​ McKesson 37 % ​ 43 % ​ 38 % ​ 43 % ​ AmeriSource-Bergen Corp 39 % ​ 29 % ​ 38 % ​ 30 % ​ Cardinal 22 % ​ 26 % ​ 22 % ​ 25 % ​ Others 2 % ​ 2 % ​ 2 % ​ 2 % ​ Total revenue 100 % ​ 100 % ​ 100 % ​ 100 % ​
Activities and Ending Reserve Balances for Each Significant Category of Discounts and Allowances	The activities and ending reserve balances for each significant category of discounts and allowances, which constitute variable consideration, were as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended September 30, 2020 ​ Chargebacks ​ ​ Other Fees, ​ ​ ​ ​ and Discounts ​ ​ ​ ​ Co-pay ​ ​ ​ ​ ​ for Prompt ​ ​ ​ ​ Assistance ​ ​ ​ ​ ​ Payment ​ Rebates ​ and Returns ​ Total Balance at December 31, 2019 ​ $ 35,159 ​ $ 27,494 ​ $ 24,494 ​ $ 87,147 Provision related to sales made in: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Current period ​ ​ 323,070 ​ ​ 80,264 ​ ​ 85,664 ​ ​ 488,998 Prior period ​ ​ (611) ​ ​ (2,884) ​ ​ (6,268) ​ ​ (9,763) Payments and customer credits issued ​ (332,745) ​ (58,102) ​ (74,106) ​ (464,953) Balance at September 30, 2020 ​ $ 24,873 ​ $ 46,772 ​ $ 29,784 ​ $ 101,429 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended September 30, 2019 ​ Chargebacks ​ ​ Other Fees, ​ ​ ​ ​ and Discounts ​ ​ ​ ​ Co-pay ​ ​ ​ ​ ​ for Prompt ​ ​ ​ ​ Assistance ​ ​ ​ ​ ​ Payment ​ Rebates ​ and Returns ​ Total Balance at December 31, 2018 ​ $ — ​ $ — ​ $ — ​ $ — Provision related to current period sales ​ 138,082 ​ 22,748 ​ 45,176 ​ 206,006 Payments and customer credits issued ​ (107,719) ​ (4,745) ​ (25,447) ​ (137,911) Balance at September 30, 2019 ​ $ 30,363 ​ $ 18,003 ​ $ 19,729 ​ $ 68,095

Convertible Notes and Term Lo_2

Convertible Notes and Term Loan (Tables)	9 Months Ended
	Sep. 30, 2020
Debt Instrument
Components of Term Loan	The following table summarizes information about the components of the Term Loan (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ September 30, December 31, ​ ​ 2020 2019 Principal amount of the Term Loan ​ $ 75,000 ​ $ 75,000 Unamortized debt discount and debt issuance costs ​ (733) ​ (1,337) Term Loan ​ $ 74,267 ​ $ 73,663
2026 Convertible Notes
Debt Instrument
Components of Convertible Notes	The following table summarizes information about the components of the 2026 Convertible Notes (in thousands): ​ ​ ​ ​ ​ September 30, ​ ​ 2020 Principal amount of the 2026 Convertible Notes ​ $ 230,000 Unamortized debt discount and debt issuance costs ​ (7,282) Total 2026 Convertible Notes ​ $ 222,718
Components of Interest Expense	The following table presents the components of interest expense related to 2026 Convertible Notes (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ September 30, ​ September 30, ​ 2020 ​ 2020 Stated coupon interest ​ $ 863 ​ $ 1,572 Accretion of debt discount and debt issuance costs ​ 309 ​ 562 Total interest expense ​ $ 1,172 ​ $ 2,134
Schedule of Future Payments on Debt	Future payments on the 2026 Convertible Notes as of September 30, 2020 are as follows (in thousands): ​ ​ ​ ​ Year ending December 31, ​ ​ Remainder of 2020 ​ $ 1,706 2021 ​ ​ 3,450 2022 ​ 3,450 2023 ​ 3,450 2024 ​ 3,450 2025 and beyond ​ 235,175 Total minimum payments ​ 250,681 Less amount representing interest ​ (20,681) 2026 Convertible Notes, principal amount ​ 230,000 Less debt discount and debt issuance costs on 2026 Convertible Notes ​ (7,282) Net carrying amount of 2026 Convertible Notes ​ $ 222,718
2022 Convertible Notes
Debt Instrument
Components of Convertible Notes	The following table summarizes information about the components of the 2022 Convertible Notes (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ September 30, December 31, ​ ​ 2020 ​ 2019 Principal amount of the 2022 Convertible Notes ​ $ 81,750 ​ $ 81,750 Unamortized debt discount and debt issuance costs ​ (2,213) ​ (3,208) 2022 Convertible Notes ​ $ 79,537 ​ $ 78,542 Principal amount of the 2022 Convertible Notes - related parties ​ $ 27,250 ​ $ 27,250 Unamortized debt discount and debt issuance costs - related parties ​ (738) ​ (1,069) 2022 Convertible Notes - related parties ​ $ 26,512 ​ $ 26,181 Total 2022 Convertible Notes ​ $ 106,049 ​ $ 104,723
Components of Interest Expense	The following table presents the components of interest expense (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ ​ September 30, ​ September 30, ​ ​ 2020 2019 2020 2019 ​ Stated coupon interest ​ $ 1,538 ​ $ 1,538 ​ $ 4,614 ​ $ 4,613 ​ Accretion of debt discount and debt issuance costs ​ 340 ​ 309 ​ 996 ​ 906 ​ Interest expense ​ $ 1,878 ​ $ 1,847 ​ $ 5,610 ​ $ 5,519 ​ Stated coupon interest - related parties ​ $ 512 ​ $ 512 ​ $ 1,536 ​ $ 1,537 ​ Accretion of debt discount and debt issuance costs - related parties ​ 113 ​ 103 ​ 331 ​ 302 ​ Interest expense - related parties ​ $ 625 ​ $ 615 ​ $ 1,867 ​ $ 1,839 ​ Total interest expense ​ $ 2,503 ​ $ 2,462 ​ $ 7,477 ​ $ 7,358 ​
Schedule of Future Payments on Debt	Future payments on the 2022 Convertible Notes as of September 30, 2020 are as follows (in thousands): ​ ​ ​ ​ Year ending December 31, ​ ​ Remainder of 2020 ​ $ 2,050 2021 ​ ​ 8,200 2022 ​ 111,050 Total minimum payments ​ 121,300 Less amount representing interest ​ (12,300) 2022 Convertible Notes, principal amount ​ 109,000 Less debt discount and debt issuance costs on 2022 Convertible Notes ​ (2,951) Net carrying amount of 2022 Convertible Notes ​ $ 106,049
Term Loan
Debt Instrument
Components of Interest Expense	The following table presents the components of interest expense (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ September 30, ​ September 30, ​ ​ ​ 2020 ​ 2019 ​ 2020 ​ 2019 ​ Stated coupon interest ​ $ 1,773 ​ $ 1,821 ​ $ 5,280 ​ $ 5,242 ​ Accretion of debt discount and debt issuance costs ​ 208 ​ 186 ​ 604 ​ 518 ​ Interest expense ​ $ 1,981 ​ $ 2,007 ​ $ 5,884 ​ $ 5,760 ​
Schedule of Future Payments on Debt	Future payments on the Term Loan as of September 30, 2020 are as follows (in thousands): ​ ​ ​ ​ Year ending December 31, ​ ​ Remainder of 2020 ​ $ 1,773 2021 ​ ​ 7,034 2022 ​ 7,034 2023 ​ 39,187 2024 ​ 36,072 2025 ​ 11,348 Total minimum payments ​ 102,448 Less amount representing interest ​ (24,448) Term Loan, gross ​ 78,000 Less debt discount and debt issuance costs on Term Loan ​ (3,733) Net carrying amount of Term Loan ​ $ 74,267

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	Sep. 30, 2020
Commitments and Contingencies.
Schedule of Non-Cancellable Purchase Commitment	​ ​ ​ ​ Years ending December 31, ​ ​ Remainder of 2020 ​ $ 8,813 2021 ​ ​ 38,195 2022 ​ 9,573 2023 ​ 3,386 Total obligations ​ $ 59,967

Leases (Tables)

Leases (Tables)	9 Months Ended
	Sep. 30, 2020
Leases
Schedule of Balance Sheet Classification of Lease Assets and Liabilities	The supplemental information related to Company’s leases is as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ December 31, Assets Balance Sheet Classification 2020 2019 Operating lease ​ Operating lease right-of-use assets ​ $ 10,470 ​ $ 10,649 Finance lease ​ Property and equipment, net ​ ​ 1,554 ​ ​ — Total leased assets ​ ​ ​ $ 12,024 ​ $ 10,649 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ December 31, Liabilities Balance Sheet Classification 2020 2019 Operating lease liabilities, current ​ Other current liabilities ​ $ 2,510 ​ $ 2,196 Operating lease liabilities, non-current ​ Lease liabilities, non-current ​ ​ 9,743 ​ ​ 10,256 Total operating lease liabilities ​ ​ ​ $ 12,253 ​ $ 12,452 ​ ​ ​ ​ ​ ​ ​ ​ ​ Finance lease liabilities, current ​ Other current liabilities ​ $ 541 ​ $ — Finance lease liabilities, non-current ​ Lease liabilities, non-current ​ ​ 986 ​ ​ — Total finance lease liabilities ​ ​ ​ $ 1,527 ​ $ 0
Schedule of maturities of the operating and finance lease liabilities	As of September 30, 2020, the maturities of the operating and finance lease liabilities were as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ Years ending December 31, Operating leases ​ Finance leases Remainder of 2020 ​ $ 852 ​ $ 156 2021 ​ ​ 3,425 ​ ​ 610 2022 ​ 3,293 ​ 610 2023 ​ 3,438 ​ 271 2024 ​ 2,888 ​ — 2025 and beyond ​ 700 ​ — Total lease payments ​ 14,596 ​ 1,647 Less imputed interest ​ (2,343) ​ (120) Operating lease liabilities ​ $ 12,253 ​ $ 1,527

Common Stock and Stock-Based _2

Common Stock and Stock-Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2020
Employee And Nonemployee Stock Option Restricted Stock Units
Employee Service Share Based Compensation Allocation Of Recognized Period Costs
Schedule of Stock-Based Compensation Expense	The stock-based compensation expense recorded related to options and restricted stock units granted to employees and nonemployees were as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ ​ September 30, ​ September 30, ​ ​ 2020 2019 2020 2019 ​ Cost of goods sold (1) ​ $ 175 ​ $ 27 ​ $ 396 ​ $ 70 ​ Research and development ​ 3,231 ​ 3,805 ​ 10,315 ​ 10,427 ​ Selling, general and administrative ​ 5,902 ​ 4,958 ​ 17,576 ​ 15,822 ​ ​ ​ $ 9,308 ​ $ 8,790 ​ $ 28,287 ​ $ 26,319 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Capitalized stock-based compensation expense into inventory ​ $ 324 ​ $ 435 ​ $ 1,196 ​ $ 1,267 ​

Net Income Per Share (Tables)

Net Income Per Share (Tables)	9 Months Ended
	Sep. 30, 2020
Net Income Per Share
Computation of Basic and Diluted Net Income Per Share Attributable to the Company	The following table sets forth the computation of the basic and diluted net income per share (in thousands, except share and per share data): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ ​ September 30, ​ September 30, ​ ​ 2020 2019 2020 2019 ​ Basic net income per share ​ ​ ​ ​ ​ ​ Numerator: ​ ​ ​ ​ ​ ​ Net income ​ $ 27,933 ​ $ 47,043 ​ $ 122,536 ​ $ 50,606 ​ Denominator: ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted-average common shares outstanding ​ 71,649,350 ​ 69,877,693 ​ 71,138,973 ​ 69,501,835 ​ Basic net income per share ​ $ 0.39 ​ $ 0.67 ​ $ 1.72 ​ $ 0.73 ​ Diluted net income per share ​ ​ ​ ​ ​ Numerator: ​ ​ ​ ​ ​ Net income ​ $ 27,933 ​ $ 47,043 ​ $ 122,536 ​ $ 50,606 ​ Add interest expense on 2026 convertible notes, net of tax ​ 1,172 ​ 2,462 ​ 2,134 ​ — ​ Numerator for diluted net income per share ​ $ 29,105 ​ $ 49,505 ​ $ 124,670 ​ $ 50,606 ​ Denominator: ​ ​ ​ ​ ​ ​ ​ ​ ​ Denominator for basic net income per share ​ 71,649,350 ​ 69,877,693 ​ 71,138,973 ​ 69,501,835 ​ Add effect of potential dilutive securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ Stock options, including purchases from contributions to ESPP ​ 3,641,721 ​ 4,165,666 ​ 3,505,479 ​ 3,353,962 ​ Restricted stock units ​ 237,114 ​ 12,997 ​ 143,146 ​ 16,279 ​ Shares issuable upon conversion of 2026 Convertible Notes ​ ​ 11,942,152 ​ ​ 4,473,871 ​ ​ 7,255,871 ​ ​ — ​ Denominator for diluted net income per share ​ 87,470,337 ​ 78,530,227 ​ 82,043,469 ​ 72,872,076 ​ Diluted net income per share ​ $ 0.33 ​ $ 0.63 ​ $ 1.52 ​ $ 0.69 ​
Outstanding Dilutive Potential Shares Excluded from Calculation of Diluted Net Income Per Share Attributable to Coherus	The following outstanding dilutive potential shares were excluded from the calculation of diluted net income per share due to their anti-dilutive effect: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ ​ September 30, ​ September 30, ​ ​ 2020 2019 2020 2019 ​ Stock options, including purchases from contributions to ESPP 9,397,713 6,465,093 ​ 9,269,082 10,284,369 ​ Restricted stock units — 10,750 ​ 7,217 3,623 ​ Shares issuable upon conversion of 2022 Convertible Notes 4,473,871 — ​ 4,473,871 4,473,871 ​ Total 13,871,584 6,475,843 ​ 13,750,170 14,761,863 ​

Organization and Summary of S_4

Organization and Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended			9 Months Ended
	Sep. 30, 2020	Jun. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Net income from refund received	$ 27,933		$ 47,043	$ 122,536	$ 50,606
Basic net income per share	$ 0.39		$ 0.67	$ 1.72	$ 0.73
Earnings Per Share Diluted	$ 0.33		$ 0.63	$ 1.52	$ 0.69
Commercial payer invoices erroneously overstated | Revision of Prior Period, Adjustment
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Net income from refund received		$ 7,500
Accrued payer rebates		$ 5,800
Increase in net product revenue	$ 0			$ 13,300
Basic net income per share	$ 0			$ 0.19
Earnings Per Share Diluted	$ 0			$ 0.16
Commercial payer invoices erroneously overstated | Accrued rebates, fees and reserve
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Accrued payer rebates	$ (23,700)			$ (23,700)		$ (14,000)

Organization and Summary of S_5

Organization and Summary of Significant Accounting Policies - Reconciliation of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019		Sep. 30, 2019	Dec. 31, 2018
Organization and Summary of Significant Accounting Policies
Cash and cash equivalents	$ 292,465	$ 177,668	[1]	$ 165,116
Restricted cash	0			50
Restricted cash, non-current	440	240	[1]
Total cash, cash equivalents and restricted cash	$ 292,905	$ 177,908		$ 165,166	$ 73,191
[1]	The consolidated balance sheet as of December 31, 2019 has been derived from the audited consolidated balance sheet included in the Company ’ s 2019 Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 27, 2020.

Fair Value Measurements - Addit

Fair Value Measurements - Additional Information (Details)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2020USD ($)security	Sep. 30, 2019USD ($)	Sep. 30, 2020USD ($)security	Sep. 30, 2019USD ($)	Dec. 31, 2019USD ($)	Apr. 30, 2020	Apr. 13, 2020USD ($)	Jan. 07, 2019USD ($)	Feb. 29, 2016USD ($)
Fair Value Disclosures [Line Items]
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount	$ 0		$ 0		$ 0
Fair Value, Assets, Level 2 to Level 1 Transfers, Amount	0		0		0
Fair Value, Liabilities, Level 1 to Level 2 Transfers, Amount	0		0		0
Fair Value, Liabilities, Level 2 to Level 1 Transfers, Amount	0		0		0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net	0	$ 0	0	$ 0	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Transfers, Net	$ 0	0	$ 0	0	0
Fiscal Year End Tags [Abstract]
Average maturity of investments in available-for-sale marketable securities			4 months 21 days
Realized gains or losses on marketable securities			$ 0		0
Investments in marketable securities has been in an unrealized loss position for more than one year | security	0		0
Credit losses of marketable securities in continuous loss position	$ 0	$ 0	$ 0	$ 0
2026 Convertible Notes
Fair Value Disclosures [Line Items]
Convertible notes, interest rate						1.50%
Debt instrument fair value	268,200,000		268,200,000
Aggregate principal amount	230,000,000		230,000,000
2022 Convertible Notes
Fair Value Disclosures [Line Items]
Convertible notes, interest rate									8.20%
Aggregate principal amount	100,000,000		100,000,000						$ 100,000,000
Term Loan
Fair Value Disclosures [Line Items]
Aggregate principal amount	75,000,000		75,000,000		$ 75,000,000
Level 3 | 2022 Convertible Notes
Fair Value Disclosures [Line Items]
Debt instrument fair value	$ 112,800,000		$ 112,800,000
Maximum
Fiscal Year End Tags [Abstract]
Remaining contractual maturities of available-for-sale securities	1 year		1 year
Maximum | Term Loan
Fair Value Disclosures [Line Items]
Aggregate principal amount							$ 230,000,000
Lender
Fair Value Disclosures [Line Items]
Aggregate principal amount									$ 75,000,000
Lender | Term Loan
Fair Value Disclosures [Line Items]
Aggregate principal amount	$ 75,000,000		$ 75,000,000					$ 75,000,000

Fair Value Measurements - Finan

Fair Value Measurements - Financial Assets and Liabilities Measured on a Recurring Basis (Details) - Fair Value Measurements Recurring Basis - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total financial assets	$ 502,662	$ 155,763
Contingent Consideration
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total financial liabilities	102	102
Level 1
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total financial assets	465,669	155,763
Level 1 | Contingent Consideration
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total financial liabilities	0
Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total financial assets	36,993
Level 2 | Contingent Consideration
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total financial liabilities	0
Level 3
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total financial assets	0
Level 3 | Contingent Consideration
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total financial liabilities	102	102
Money Market Funds
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total financial assets	278,258	155,523
Money Market Funds | Level 1
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total financial assets	278,258	155,523
Money Market Funds | Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total financial assets	0
Money Market Funds | Level 3
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total financial assets	0
Restricted Cash (Money Market Funds)
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total financial assets	440	240
Restricted Cash (Money Market Funds) | Level 1
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total financial assets	440	$ 240
Restricted Cash (Money Market Funds) | Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total financial assets	0
Restricted Cash (Money Market Funds) | Level 3
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total financial assets	0
Corporate notes and Commercial paper
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total financial assets	36,993
Corporate notes and Commercial paper | Level 1
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total financial assets	0
Corporate notes and Commercial paper | Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total financial assets	36,993
Corporate notes and Commercial paper | Level 3
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total financial assets	0
U.S. government agency securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total financial assets	186,971
U.S. government agency securities | Level 1
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total financial assets	186,971
U.S. government agency securities | Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total financial assets	0
U.S. government agency securities | Level 3
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total financial assets	$ 0

Fair Value Measurements - Sched

Fair Value Measurements - Schedule of Cash Equivalents, Investments in Marketable Securities Classified as Available-for-Sale Securities and Restricted Cash (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Cash Equivalents
Debt Securities, Available-for-sale [Line Items]
Cost	$ 291,256	$ 155,523
Estimated Fair Value	291,256	155,523
Cash Equivalents | Money Market Funds
Debt Securities, Available-for-sale [Line Items]
Cost	278,258	155,523
Estimated Fair Value	278,258	155,523
Cash Equivalents | Corporate notes and Commercial paper
Debt Securities, Available-for-sale [Line Items]
Cost	12,998
Estimated Fair Value	12,998
Investment in Marketable Securities
Debt Securities, Available-for-sale [Line Items]
Cost	210,948
Unrealized Gain	18
Estimated Fair Value	210,966
Investment in Marketable Securities | Corporate notes and Commercial paper
Debt Securities, Available-for-sale [Line Items]
Cost	23,995
Estimated Fair Value	23,995
Investment in Marketable Securities | U.S. government agency securities
Debt Securities, Available-for-sale [Line Items]
Cost	186,953
Unrealized Gain	18
Estimated Fair Value	186,971
Restricted Cash
Debt Securities, Available-for-sale [Line Items]
Cost	440	240
Estimated Fair Value	440	240
Restricted Cash | Restricted Cash (Money Market Funds)
Debt Securities, Available-for-sale [Line Items]
Cost	440	240
Estimated Fair Value	$ 440	$ 240

Inventory - Schedule of Invento

Inventory - Schedule of Inventory (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Inventory
Raw materials	$ 5,388	$ 5,089
Work in process	64,039	43,446
Finished goods	16,537	6,536
Total	$ 85,964	$ 55,071

Inventory - Schedule of Balance

Inventory - Schedule of Balance Sheet Classification (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Inventory
Inventory	$ 35,247	$ 9,807	[1]
Inventory, non-current	50,717	45,264	[1]
Total	$ 85,964	$ 55,071
[1]	The consolidated balance sheet as of December 31, 2019 has been derived from the audited consolidated balance sheet included in the Company ’ s 2019 Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 27, 2020.

Inventory - Additional Informat

Inventory - Additional Information (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Inventory [Line Items]
Prepayment made for manufacturing services	$ 21,928	$ 8,578	[1]
Contract manufacturing organization (CMO)
Inventory [Line Items]
Prepayment made for manufacturing services	$ 13,200	$ 7,200
[1]	The consolidated balance sheet as of December 31, 2019 has been derived from the audited consolidated balance sheet included in the Company ’ s 2019 Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 27, 2020.

Balance Sheet Components - Sche

Balance Sheet Components - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Property and Equipment, Net
Total property and equipment	$ 26,517	$ 22,136
Accumulated depreciation and amortization	(15,870)	(16,296)
Property and equipment, net	10,647	5,840	[1]
Machinery and Equipment
Property and Equipment, Net
Total property and equipment	13,660	12,611
Computer Equipment and Software
Property and Equipment, Net
Total property and equipment	2,256	2,923
Furniture and Fixtures
Property and Equipment, Net
Total property and equipment	1,255	714
Leasehold Improvements
Property and Equipment, Net
Total property and equipment	5,670	4,388
Finance lease right of use assets
Property and Equipment, Net
Total property and equipment	1,554
Construction in Progress
Property and Equipment, Net
Total property and equipment	$ 2,122	$ 1,500
[1]	The consolidated balance sheet as of December 31, 2019 has been derived from the audited consolidated balance sheet included in the Company ’ s 2019 Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 27, 2020.

Balance Sheet Components - Addi

Balance Sheet Components - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Balance Sheet Components
Depreciation and amortization	$ 700	$ 800	$ 2,048	$ 2,204

Balance Sheet Components - Sc_2

Balance Sheet Components - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Balance Sheet Components
Accrued clinical and manufacturing	$ 13,374	$ 7,106
Accrued other	10,072	10,152
Accrued liabilities	$ 23,446	$ 17,258	[1]
[1]	The consolidated balance sheet as of December 31, 2019 has been derived from the audited consolidated balance sheet included in the Company ’ s 2019 Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 27, 2020.

Revenue - Additional Informatio

Revenue - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Revenue
Net product revenue	$ 113,551	$ 111,684	$ 365,405	$ 232,215

Revenue - Revenue by Significan

Revenue - Revenue by Significant Customer (Details) - Net Product Revenue - Customer Concentration Risk	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Concentration Risk
Percentage of total revenue	100.00%	100.00%	100.00%	100.00%
McKesson
Concentration Risk
Percentage of total revenue	37.00%	43.00%	38.00%	43.00%
AmeriSource-Bergen Corp
Concentration Risk
Percentage of total revenue	39.00%	29.00%	38.00%	30.00%
Cardinal
Concentration Risk
Percentage of total revenue	22.00%	26.00%	22.00%	25.00%
Others
Concentration Risk
Percentage of total revenue	2.00%	2.00%	2.00%	2.00%

Revenue - Activities and Ending

Revenue - Activities and Ending Reserve Balances for Each Significant Category of Discounts and Allowances (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Accounts Notes And Loans Receivable
Balance at December 31	$ 87,147
Provision related to sales made in:
Current period	488,998	$ 206,006
Prior period	(9,763)
Payments and customer credits issued	(464,953)	(137,911)
Balance at September 30	101,429	68,095
Chargebacks and Discounts for Prompt Payment
Accounts Notes And Loans Receivable
Balance at December 31	35,159
Provision related to sales made in:
Current period	323,070	138,082
Prior period	(611)
Payments and customer credits issued	(332,745)	(107,719)
Balance at September 30	24,873	30,363
Rebates
Accounts Notes And Loans Receivable
Balance at December 31	27,494
Provision related to sales made in:
Current period	80,264	22,748
Prior period	(2,884)
Payments and customer credits issued	(58,102)	(4,745)
Balance at September 30	46,772	18,003
Other Fees, Co-pay Assistance and Returns
Accounts Notes And Loans Receivable
Balance at December 31	24,494
Provision related to sales made in:
Current period	85,664	45,176
Prior period	(6,268)
Payments and customer credits issued	(74,106)	(25,447)
Balance at September 30	$ 29,784	$ 19,729

License Agreements (Details)

License Agreements (Details) € in Millions, $ in Millions	Jan. 13, 2020USD ($)	Sep. 30, 2020USD ($)	Dec. 31, 2019EUR (€)	Dec. 31, 2019USD ($)	Sep. 30, 2020EUR (€)	Sep. 30, 2020USD ($)
Bioeq IP AG
Collaborative Arrangements And Noncollaborative Arrangement Transactions
Initial term of agreement					10 years	10 years
Estimated period of performance upfront fee | €					€ 25
Percentage of gross profits on sales					50.00%	50.00%
Bioeq IP AG | Research and Development Expense.
Collaborative Arrangements And Noncollaborative Arrangement Transactions
Upfront and milestone payment			€ 10	$ 11.1
Innovent Biologics (Suzhou) Co., Ltd. | Bevacizumab Licensed Product
Collaborative Arrangements And Noncollaborative Arrangement Transactions
Upfront and milestone payment	$ 5
Innovent Biologics (Suzhou) Co., Ltd. | Option exercise fee
Collaborative Arrangements And Noncollaborative Arrangement Transactions
Collaboration Costs						$ 5
Innovent Biologics (Suzhou) Co., Ltd. | Technology transfer
Collaborative Arrangements And Noncollaborative Arrangement Transactions
Collaboration Costs						10
Innovent Biologics (Suzhou) Co., Ltd. | Maximum | Bevacizumab Licensed Product
Collaborative Arrangements And Noncollaborative Arrangement Transactions
Aggregate milestone payments						40
Innovent Biologics (Suzhou) Co., Ltd. | Maximum | Rituximab Licensed Product
Collaborative Arrangements And Noncollaborative Arrangement Transactions
Aggregate milestone payments						40
Innovent Biologics (Suzhou) Co., Ltd. | Research and Development Expense. | Bevacizumab Licensed Product
Collaborative Arrangements And Noncollaborative Arrangement Transactions
Upfront and milestone payment		$ 2.5				$ 7.5

Convertible Notes and Term Lo_3

Convertible Notes and Term Loan - Additional Information (Details)	Apr. 14, 2020$ / shares	Jan. 07, 2019USD ($)	Feb. 29, 2016USD ($)$ / sharesshares	Apr. 30, 2020USD ($)$ / sharesshares	Sep. 30, 2020USD ($)item$ / shares	Apr. 13, 2020USD ($)	Dec. 31, 2019USD ($)
Debt Instrument
Proceeds from issuance of Convertible Notes due 2026, net of issuance costs					$ 222,156,000
Percentage of cap price					75
KKR Member
Debt Instrument
Aggregate principal amount			$ 20,000,000
MX II Member
Debt Instrument
Aggregate principal amount			4,000,000
KMGCP Member
Debt Instrument
Aggregate principal amount			1,000,000
Lender
Debt Instrument
Aggregate principal amount			75,000,000
2026 Convertible Notes
Debt Instrument
Aggregate principal amount				$ 230,000,000	$ 230,000,000
Convertible notes, interest rate				1.50%
Convertible notes, premium percentage	14.815%			30.00%
Number of events in default					0
Payment for capped call transactions					$ 18,200,000
Common shares at conversion | shares				51.9224
Principal amount of notes converted into shares				$ 1,000
Debt issuance costs					$ 900,000
Contractual term					6 years
Minimum borrowings for indebtedness defaulters					25.9263
Convertible notes, converted amount					$ 219,000,000
Closing stock, price per share | $ / shares	$ 14.815				$ 18.34
Number of initial purchasers | item					1
Unamortized debt discount and debt issuance costs on Convertible Notes					$ 7,282,000
Effective interest rate					2.11%
Debt Instrument Term					5 years 6 months
2022 Convertible Notes
Debt Instrument
Aggregate principal amount			$ 100,000,000		$ 100,000,000
Convertible notes, interest rate			8.20%
Convertible notes, interest rate description					The 2022 Convertible Notes bear interest at a fixed coupon rate of 8.2% per annum payable quarterly in arrears on March 31, June 30, September 30 and December 31 of each year, which commenced on March 31, 2016
Debt instrument maturity date			Mar. 31, 2022
Convertible notes, premium percentage			9.00%
Common shares at conversion | shares			44.7387
Conversion price per common share | $ / shares			$ 22.35	$ 19.26
Principal amount of notes converted into shares			$ 1,000
Percentage of applicable conversion price			160.00%
Convertible trading days			20
Convertible consecutive trading days			30
Percentage to pay in cash of the par value of notes			109.00%
Convertible notes, covenant compliance					The 2022 Convertible Notes contain customary negative covenants and events of default (as defined in the Note Purchase Agreement (as defined below)), the occurrence of which could result in the acceleration of all amounts due under the 2022 Convertible Note. As of September 30, 2020, the Company was in full compliance with these covenants and there were no events of default under the 2022 Convertible Notes.
Convertible notes, converted amount					$ 82,100,000
Closing stock, price per share | $ / shares					$ 18.34
Unamortized debt discount and debt issuance costs on Convertible Notes					$ 2,951,000
Effective interest rate					9.48%
Term Loan
Debt Instrument
Aggregate principal amount					$ 75,000,000		$ 75,000,000
Debt instrument maturity date					Jan. 7, 2025
Unamortized debt discount and debt issuance costs on Convertible Notes					$ 3,733,000
Remaining unamortized debt discount and debt offering costs					$ 733,000		$ 1,337,000
Effective interest rate					10.47%
Debt Instrument Term					4 years 3 months
Term Loan | Lender
Debt Instrument
Aggregate principal amount		$ 75,000,000			$ 75,000,000
Debt Instrument Term		6 years
Term Loan | Maximum
Debt Instrument
Aggregate principal amount						$ 230,000,000

Convertible Notes and Term Lo_4

Convertible Notes and Term Loan - Components of Convertible Notes (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Apr. 30, 2020	Dec. 31, 2019		Feb. 29, 2016
Debt Instrument
Convertible Notes	$ 79,537		$ 78,542	[1]
Convertible Notes - related parties	26,512		26,181	[1]
2022 Convertible Notes
Debt Instrument
Principal amount of the Convertible Notes	100,000				$ 100,000
Unamortized debt discount and debt issuance costs	(2,951)
Total Convertible Notes	106,049		104,723
2022 Convertible Notes | Related Party Debt
Debt Instrument
Principal amount of the Convertible Notes	27,250		27,250
Unamortized debt discount and debt issuance costs	(738)		(1,069)
Convertible Notes - related parties	26,512		26,181
2022 Convertible Notes | Parent Company
Debt Instrument
Principal amount of the Convertible Notes	81,750		81,750
Unamortized debt discount and debt issuance costs	(2,213)		(3,208)
Convertible Notes	79,537		$ 78,542
2026 Convertible Notes
Debt Instrument
Principal amount of the Convertible Notes	230,000	$ 230,000
Unamortized debt discount and debt issuance costs	(7,282)
Total Convertible Notes	$ 222,718
[1]	The consolidated balance sheet as of December 31, 2019 has been derived from the audited consolidated balance sheet included in the Company ’ s 2019 Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 27, 2020.

Convertible Notes and Term Lo_5

Convertible Notes and Term Loan - Components of Interest Expense of Convertible Notes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Debt Instrument
Accretion of debt discount and debt issuance costs			$ 2,492	$ 1,726
Interest expense	$ 625	$ 615	1,867	1,839
Total interest expense	5,656	4,469	15,495	13,118
2022 Convertible Notes
Debt Instrument
Total interest expense	2,503	2,462	7,477	7,358
2022 Convertible Notes | Related Party Debt
Debt Instrument
Stated coupon interest	512	512	1,536	1,537
Accretion of debt discount and debt issuance costs	113	103	331	302
Interest expense	625	615	1,867	1,839
2022 Convertible Notes | Parent Company
Debt Instrument
Stated coupon interest	1,538	1,538	4,614	4,613
Accretion of debt discount and debt issuance costs	340	309	996	906
Interest expense	1,878	1,847	5,610	$ 5,519
2026 Convertible Notes
Debt Instrument
Stated coupon interest	863		1,572
Accretion of debt discount and debt issuance costs	309		562
Interest expense	$ 1,172	$ 2,462	$ 2,134

Convertible Notes and Term Lo_6

Convertible Notes and Term Loan - Schedule of Future Payments on the Convertible Notes (Details) $ in Thousands	Sep. 30, 2020USD ($)
2022 Convertible Notes
Debt Instrument
Remainder of 2020	$ 2,050
2021	8,200
2022	111,050
Total minimum payments	121,300
Less amount representing interest	(12,300)
Convertible Notes, principal amount	109,000
Less debt discount and debt issuance costs on Convertible Notes	(2,951)
Net carrying amount	106,049
2026 Convertible Notes
Debt Instrument
Remainder of 2020	1,706
2021	3,450
2022	3,450
2023	3,450
2023	3,450
2025 and beyond	235,175
Total minimum payments	250,681
Less amount representing interest	(20,681)
Convertible Notes, principal amount	230,000
Less debt discount and debt issuance costs on Convertible Notes	(7,282)
Net carrying amount	$ 222,718

Convertible Notes and Term Lo_7

Convertible Notes and Term Loan - Term Loan Narrative (Details) - USD ($) $ in Thousands	Apr. 13, 2020	Jan. 07, 2019	Sep. 30, 2020	Dec. 31, 2021	Dec. 31, 2019	Jan. 01, 2020	Feb. 29, 2016
Term Loan
Debt Instrument
Total term of the loan			4 years 3 months
Aggregate principal amount			$ 75,000		$ 75,000
Effective interest rate			10.47%
Net sales					$ 250,000
Debt instrument maturity date			Jan. 7, 2025
Percentage required to pay an additional exit fee on principal amount		4.00%
Consolidated net sales, 2020			$ 125,000
Consolidated net sales, thereafter			150,000
Unamortized debt discount and debt issuance costs on Term Loan			$ 3,733
Term Loan | Paid on or Prior to the Three Year Anniversary of Closing Date
Debt Instrument
Prepayment premium, description			with respect to any prepayment paid or required to be paid on or prior to the three year anniversary of the Credit Agreement Closing Date, 5.00% of the Borrowings prepaid or required to be prepaid, plus all required interest payments that would have been due on the Borrowings prepaid or required to be prepaid through and including the three year anniversary of the Term Loan Closing Date
Prepayment premium percentage			5.00%
Term Loan | Paid after the Three Year but on or Prior to the Four Year Anniversary of Closing Date
Debt Instrument
Prepayment premium, description			with respect to any prepayment paid or required to be paid after the three year anniversary of the Term Loan Closing Date but on or prior to the four year anniversary of the Term Loan Closing Date, 5.00% of the Borrowings prepaid or required to be prepaid
Prepayment premium percentage			5.00%
Term Loan | Paid after the Four Year but on or Prior to the Five Year Anniversary of Closing Date
Debt Instrument
Prepayment premium, description			with respect to any prepayment paid or required to be paid after the four year anniversary of the Term Loan Closing Date but on or prior to the five year anniversary of the Term Loan Closing Date, 2.50% of the Borrowings prepaid or required to be prepaid
Prepayment premium percentage			2.50%
Term Loan | Paid Thereafter
Debt Instrument
Prepayment premium, description			with respect to any prepayment paid or required to be prepaid thereafter, 1.25% of the Borrowings prepaid or required to be prepaid
Prepayment premium percentage			1.25%
Term Loan | Maximum
Debt Instrument
Aggregate principal amount	$ 230,000
Percentage Of Market Capitalization	20.00%
Term Loan | Maximum | Scenario Forecast
Debt Instrument
Net sales				$ 375,000
Term Loan | Minimum
Debt Instrument
Consolidated net sales, 2019			$ 70,000
Term Loan | LIBOR
Debt Instrument
Effective interest rate		7.00%				6.75%
Shares issuable upon conversion of 2022 Convertible Notes
Debt Instrument
Total term of the loan			1 year 6 months
Lender
Debt Instrument
Aggregate principal amount							$ 75,000
Lender | Term Loan
Debt Instrument
Total term of the loan		6 years
Aggregate principal amount		$ 75,000	$ 75,000
Payment of closing fee to the lenders in form of origination issue discount		$ 1,100

Convertible Notes and Term Lo_8

Convertible Notes and Term Loan - Components of Term Loan (Details) - Term Loan - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Debt Instrument
Principal amount of the Term Loan	$ 75,000	$ 75,000
Unamortized debt discount and debt issuance costs	(733)	(1,337)
Net carrying amount	$ 74,267	$ 73,663

Convertible Notes and Term Lo_9

Convertible Notes and Term Loan - Components of Interest Expense on Term Loan (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Debt Instrument
Accretion of debt discount and debt issuance costs			$ 2,492	$ 1,726
Term Loan
Debt Instrument
Stated coupon interest	$ 1,773	$ 1,821	5,280	5,242
Accretion of debt discount and debt issuance costs	208	186	604	518
Interest expense	$ 1,981	$ 2,007	$ 5,884	$ 5,760

Convertible Notes and Term L_10

Convertible Notes and Term Loan - Schedule of Future Payments on the Term Loan (Details) - Term Loan - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Debt Instrument
Remainder of 2020	$ 1,773
2021	7,034
2022	7,034
2023	39,187
2024	36,072
2025	11,348
Total minimum payments	102,448
Less amount representing interest	(24,448)
Term Loan, gross	78,000
Less debt discount and debt issuance costs on Convertible Notes	(3,733)
Net carrying amount	$ 74,267	$ 73,663

Commitments and Contingencies -

Commitments and Contingencies - Schedule of Non-Cancellable Purchase Commitment (Details) $ in Thousands	Sep. 30, 2020USD ($)
Commitments and Contingencies.
Remainder of 2020	$ 8,813
2021	38,195
2022	9,573
2023	3,386
Total obligations	$ 59,967

Commitments and Contingencies_2

Commitments and Contingencies - Additional Information (Details)	May 02, 2019
Amgen
Loss Contingencies
Royalty payment term	5 years

Leases - Additional Information

Leases - Additional Information (Details) $ in Thousands	1 Months Ended	3 Months Ended		9 Months Ended
	Jul. 31, 2015ft²	Sep. 30, 2020USD ($)ft²	Sep. 30, 2019USD ($)	Sep. 30, 2020USD ($)ft²item	Sep. 30, 2019USD ($)	Dec. 31, 2019
Lessee Lease Description
Future minimum lease payments for the undelivered vehicles | $		$ 1,647		$ 1,647
Cash paid for amounts included in measurement of lease liabilities | $		$ 800	$ 700	$ 2,400	$ 2,000
Operating lease weighted average remaining term		4 years 3 months 18 days		4 years 3 months 18 days		4 years 8 months 12 days
Operating lease Weighted average discount rate		8.10%		8.10%		8.20%
Finance lease weighted average remaining term		2 years 8 months 12 days		2 years 8 months 12 days
Finance lease Weighted average discount rate		5.80%		5.80%
Corporate Headquarters Lease
Lessee Lease Description
Area of office space leased | ft²	47,789
Lease Expiration Date	Sep. 1, 2024
Option to extend lease				true
Term of optional lease renewal	5 years
New Camarillo Lease
Lessee Lease Description
Area of office space leased | ft²		25,017		25,017
Lease Expiration Date				May 1, 2027
Option to extend lease				true
Term of optional lease renewal		5 years		5 years
Vehicle leases
Lessee Lease Description
Number of vehicles leased | item				41
Term of leases		36 months		36 months

Leases - Schedule of Balance Sh

Leases - Schedule of Balance Sheet Classification of Lease Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Assets:
Operating lease right-of-use assets	$ 10,470	$ 10,649	[1]
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	Operating lease right-of-use assets	Operating lease right-of-use assets
Finance lease	$ 1,554
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	us-gaap:PropertyPlantAndEquipmentNet	us-gaap:PropertyPlantAndEquipmentNet
Total leased assets	$ 12,024	$ 10,649
Liabilities:
Operating lease, liability, current	$ 2,510	$ 2,196
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	Other Liabilities Current	Other Liabilities Current
Operating lease liability noncurrent	$ 9,743	$ 10,256
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	Operating lease liability noncurrent	Operating lease liability noncurrent
Total operating lease liabilities	$ 12,253	$ 12,452
Finance lease liabilities, current	$ 541
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List]	Other Liabilities Current	Other Liabilities Current
Finance lease liabilities, non-current	$ 986
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	Operating lease liability noncurrent	Operating lease liability noncurrent
Total finance lease liabilities	$ 1,527	$ 0
[1]	The consolidated balance sheet as of December 31, 2019 has been derived from the audited consolidated balance sheet included in the Company ’ s 2019 Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 27, 2020.

Leases - Operating Lease Costs

Leases - Operating Lease Costs (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Leases
Operating lease costs	$ 0.8	$ 0.6	$ 2.4	$ 1.7
Cash paid for amounts included in measurement of lease liabilities	$ 0.8	$ 0.7	$ 2.4	$ 2

Leases - Schedule of Maturities

Leases - Schedule of Maturities of Operating and Finance Lease Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Operating leases
Remainder of 2020	$ 852
2021	3,425
2022	3,293
2023	3,438
2024	2,888
2025 and beyond	700
Total lease payments	14,596
Less imputed interest	(2,343)
Total operating lease liabilities	12,253	$ 12,452
Finance leases
Remainder of 2020	156
2021	610
2022	610
2023	271
Total lease payments	1,647
Less imputed interest	(120)
Total finance lease liabilities	$ 1,527	$ 0

Common Stock and Stock-Based _3

Common Stock and Stock-Based Compensation - Common Stock Offerings (Details) - At-the-Market Equity Offering Program - Cowen and Company LLC - USD ($)	Oct. 28, 2016	Mar. 31, 2019
Class Of Stock
Maximum amount of sales that agent may sell in shares of its common stock	$ 100,000,000
Percentage of gross sales proceeds of common stock payable as compensation	3.00%
Common stock, shares issued and sold		761,130
Share price		$ 11.17
Gross proceeds from issuance of common stock		$ 8,500,000
Offering expense		300,000
Common stock, net proceeds		$ 8,200,000

Common Stock and Stock-Based _4

Common Stock and Stock-Based Compensation - Options and restricted stock units granted to employees and nonemployees (Details) - Employees and Nonemployees Stock Option and Restricted Stock Units - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Employee Service Share Based Compensation Allocation Of Recognized Period Costs
Stock-based compensation expense	$ 9,308	$ 8,790	$ 28,287	$ 26,319
Capitalized stock-based compensation expense into inventory	324	435	1,196	1,267
Cost of Goods Sold
Employee Service Share Based Compensation Allocation Of Recognized Period Costs
Stock-based compensation expense	175	27	396	70
Research and Development Expense.
Employee Service Share Based Compensation Allocation Of Recognized Period Costs
Stock-based compensation expense	3,231	3,805	10,315	10,427
Selling, General and Administrative Expenses
Employee Service Share Based Compensation Allocation Of Recognized Period Costs
Stock-based compensation expense	$ 5,902	$ 4,958	$ 17,576	$ 15,822

Net Income Per Share - Computat

Net Income Per Share - Computation of Basic and Diluted Net Income Per Share Attributable to the Company (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Numerator:
Net income	$ 27,933	$ 47,043	$ 122,536	$ 50,606
Denominator:
Weighted-average common shares outstanding	71,649,350	69,877,693	71,138,973	69,501,835
Basic net income per share	$ 0.39	$ 0.67	$ 1.72	$ 0.73
Numerator:
Net income	$ 27,933	$ 47,043	$ 122,536	$ 50,606
Numerator for diluted net income per share attributable to Coherus	$ 29,105	$ 49,505	$ 124,670	$ 50,606
Denominator:
Denominator for basic net income per share	71,649,350	69,877,693	71,138,973	69,501,835
Stock options, including purchases from contributions to ESPP	3,641,721	4,165,666	3,505,479	3,353,962
Restricted stock units	237,114	12,997	143,146	16,279
Denominator for diluted net income per share attributable to Coherus	87,470,337	78,530,227	82,043,469	72,872,076
Diluted net income per share	$ 0.33	$ 0.63	$ 1.52	$ 0.69
2026 Convertible Notes
Numerator:
Add interest expense on convertible notes, net of tax	$ 1,172	$ 2,462	$ 2,134
Denominator:
Shares issuable upon conversion of convertible notes	11,942,152	4,473,871	7,255,871

Net Income Per Share - Outstand

Net Income Per Share - Outstanding Dilutive Potential Shares Excluded from Calculation of Diluted Net Income Per Share Attributable to Coherus (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Antidilutive Securities Excluded From Computation Of Earnings Per Share
Antidilutive securities excluded from the calculation of diluted net loss per share	13,871,584	6,475,843	13,750,170	14,761,863
Stock Options, Including Purchases from Contributions to ESPP
Antidilutive Securities Excluded From Computation Of Earnings Per Share
Antidilutive securities excluded from the calculation of diluted net loss per share	9,397,713	6,465,093	9,269,082	10,284,369
Restricted Stock Units
Antidilutive Securities Excluded From Computation Of Earnings Per Share
Antidilutive securities excluded from the calculation of diluted net loss per share		10,750	7,217	3,623
Shares issuable upon conversion of 2022 Convertible Notes
Antidilutive Securities Excluded From Computation Of Earnings Per Share
Antidilutive securities excluded from the calculation of diluted net loss per share	4,473,871		4,473,871	4,473,871

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Income Taxes
Income tax provision	$ 183	$ 847	$ 2,411	$ 898
U.S. federal statutory income tax rate			21.00%

Related Party Transactions - Ad

Related Party Transactions - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Feb. 29, 2016
Related Party Transaction
Research and development expense	$ 38,851	$ 21,568	$ 98,131	$ 59,240
Affiliated Entity
Related Party Transaction
Aggregate principal amount					$ 25,000