Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | May 01, 2017 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | Dermira, Inc. | |
Trading Symbol | DERM | |
Entity Central Index Key | 1,557,883 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2017 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 41,521,051 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 201,917 | $ 41,793 |
Short-term investments | 212,710 | 210,149 |
Collaboration receivables from a related party | 10,700 | 21,400 |
Prepaid expenses and other current assets | 8,012 | 10,649 |
Total current assets | 433,339 | 283,991 |
Property and equipment, net | 1,092 | 1,127 |
Long-term investments | 18,430 | 24,551 |
Intangible assets | 1,126 | 1,126 |
Goodwill | 771 | 771 |
Other assets | 1,013 | 1,035 |
Total assets | 455,771 | 312,601 |
Current liabilities: | ||
Accounts payable | 5,406 | 13,500 |
Accrued liabilities | 11,640 | 17,227 |
Deferred revenue, current | 4,265 | 4,265 |
Total current liabilities | 21,311 | 34,992 |
Long-term liabilities: | ||
Deferred revenue, non-current | 28,484 | 29,550 |
Deferred tax liability | 194 | 194 |
Other long-term liabilities | 686 | 495 |
Total liabilities | 50,675 | 65,231 |
Stockholders’ equity: | ||
Preferred stock | ||
Common stock | 42 | 36 |
Additional paid-in capital | 684,870 | 497,718 |
Accumulated other comprehensive loss | (175) | (252) |
Accumulated deficit | (279,641) | (250,132) |
Total stockholders’ equity | 405,096 | 247,370 |
Total liabilities and stockholders’ equity | $ 455,771 | $ 312,601 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Revenue: | ||
Collaboration and license revenue | $ 1,066 | |
Operating expenses: | ||
Research and development | 19,860 | $ 22,854 |
General and administrative | 11,326 | 5,901 |
Total operating expenses | 31,186 | 28,755 |
Loss from operations | (30,120) | (28,755) |
Interest and other income, net | 611 | 319 |
Net loss | $ (29,509) | $ (28,436) |
Net loss per share, basic and diluted | $ (0.79) | $ (0.95) |
Weighted-average common shares used to compute net loss per share, basic and diluted | 37,289,608 | 29,980,283 |
CONDENSED CONSOLIDATED STATEME4
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net loss | $ (29,509) | $ (28,436) |
Other comprehensive income: | ||
Unrealized gain on available-for-sale securities | 77 | 145 |
Total comprehensive loss | $ (29,432) | $ (28,291) |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Cash flows from operating activities | ||
Net loss | $ (29,509) | $ (28,436) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 81 | 22 |
Stock-based compensation | 4,615 | 2,594 |
Net amortization of premiums on available-for-sale securities | 610 | 412 |
Changes in assets and liabilities: | ||
Collaboration receivables from a related party | 10,700 | |
Prepaid expenses and other current assets | 3,025 | (1,242) |
Other assets | 22 | 148 |
Accounts payable | (8,094) | 3,310 |
Accrued liabilities | (5,598) | (2,565) |
Other long-term liabilities | 191 | (266) |
Deferred revenue | (1,066) | |
Net cash used in operating activities | (25,023) | (26,023) |
Cash flows from investing activities | ||
Purchases of available-for-sale securities | (55,222) | (31,681) |
Maturities of available-for-sale securities | 57,861 | 42,841 |
Purchase of property and equipment | (35) | (96) |
Net cash provided by investing activities | 2,604 | 11,064 |
Cash flows from financing activities | ||
Net proceeds from issuances of common stock | 182,543 | 88 |
Net cash provided by financing activities | 182,543 | 88 |
Net increase (decrease) in cash and cash equivalents | 160,124 | (14,871) |
Cash and cash equivalents at beginning of year | 41,793 | 107,242 |
Cash and cash equivalents at end of period | $ 201,917 | $ 92,371 |
Organization
Organization | 3 Months Ended |
Mar. 31, 2017 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization | 1. Organization We are a biopharmaceutical company dedicated to bringing biotech ingenuity to medical dermatology by delivering differentiated, new therapies to the millions of patients living with chronic skin conditions. We are committed to understanding the needs of both patients and physicians and using our insight to identify and develop leading-edge medical dermatology clinical programs. Our portfolio includes three late-stage product candidates that target significant unmet needs and market opportunities: Cimzia (certolizumab pegol), in Phase 3 development in collaboration with UCB Pharma S.A., a related party (“UCB”), for the treatment of moderate‑to‑severe chronic plaque psoriasis; glycopyrronium tosylate (formerly DRM04), which has completed a Phase 3 program for the treatment of primary axillary hyperhidrosis, or excessive underarm sweating; and olumacostat glasaretil (formerly DRM01), in Phase 3 development for the treatment of acne vulgaris, or acne. On March 7, 2017, we sold 5,750,000 shares of our common stock (“2017 Public Offering”) pursuant to an automatic shelf registration statement on Form S-3 and received gross proceeds of $193.8 million and net proceeds of approximately $181.5 million, after deducting underwriting discounts and commissions of $11.6 million and offering expenses of approximately $0.7 million. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Presentation Our condensed consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) and applicable rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) for interim reporting. As permitted under those rules and regulations, certain footnotes or other financial information normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. These condensed consolidated financial statements have been prepared on the same basis as our annual consolidated financial statements and, in the opinion of our management, reflect all adjustments, consisting only of normal recurring adjustments, which are necessary for a fair presentation of our financial information. The results of operations for the three-month period ended March 31, 2017 are not necessarily indicative of the results to be expected for the full year ending December 31, 2017 or any other future period. The condensed consolidated balance sheet as of December 31, 2016 has been derived from audited consolidated financial statements at that date but does not include all of the information required by U.S. GAAP for complete financial statements. The accompanying condensed consolidated financial statements include the accounts of our wholly owned subsidiary, Dermira Canada. All intercompany accounts and transactions have been eliminated in consolidation. The accompanying condensed consolidated financial statements and related financial information should be read in conjunction with our audited consolidated financial statements and the related notes thereto for the year ended December 31, 2016 included in our Annual Report on Form 10-K, filed with the SEC on February 28, 2017. Use of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the condensed consolidated financial statements and reported amounts of revenues and expenses during the reporting periods. On an ongoing basis, we evaluate our estimates, including those related to revenue recognition, investments, accrued research and development expenses, goodwill, intangible assets, other long-lived assets, stock-based compensation and the valuation of deferred tax assets. We base our estimates on our historical experience and also on assumptions that we believe are reasonable; however, actual results could significantly differ from those estimates. Revenue Recognition We generate revenue from collaboration and license agreements related to the development and commercialization of our product candidates. We recognize revenue when persuasive evidence of an arrangement exists, services have been performed or products have been delivered, the fee is fixed and determinable and collection is reasonably assured. Collaboration and license agreements may include non-refundable upfront payments or reimbursement of research and development costs, contingent consideration payments based on achievement of defined milestones, and royalties on sales of commercialized products. Our responsibilities under collaboration and license agreements may include the transfer of intellectual property rights, such as licenses, obligations to provide research and development services, product supply and regulatory approval services, and participation on certain development and commercialization committees. For upfront payments that are recorded as deferred revenue and being recognized over the estimated period of performance, we regularly review the estimated periods of performance based on the progress made under each arrangement. The estimated performance period may change over the course of an arrangement’s term. Such a change could have a material impact on the amount of revenue recorded in future periods. Multiple Element Arrangements To determine the appropriate revenue recognition for payments to us under our collaboration and license agreements with multiple element arrangements, we evaluate whether the non-contingent deliverables of an arrangement represent separate units of accounting or a single unit of accounting. For non-contingent deliverables of an arrangement to represent separate units of accounting, the delivered elements each must have standalone value to the customer. Factors to determine standalone value include whether the deliverable is proprietary to us, whether the customer can use the license or other deliverables for their intended purpose without the receipt of the remaining elements and whether there are other vendors that can provide the undelivered items. Deliverables that meet these criteria are considered separate units of accounting. Deliverables that do not meet these criteria are combined and accounted for as a single unit of accounting. Milestones and Other Contingent Payments We have adopted the milestone method as described in Accounting Standards Codification 605-28, Milestone Method of Revenue Recognition We evaluate whether milestones meet all of the following conditions to be considered substantive: (1) the consideration is commensurate with either of (a) our performance to achieve the milestone or (b) the enhancement of the value of the delivered item or items as a result of a specific outcome resulting from our performance to achieve the milestone; (2) the consideration relates solely to past performance; and (3) the consideration is reasonable relative to all the deliverables and payment terms within the arrangement. Substantive milestones are recognized as revenue upon achievement of the milestone and when collectability is reasonably assured. Accrued Research and Development Expenses We record accruals for estimated costs of research, preclinical, non-clinical and clinical studies and manufacturing activities, which are a significant component of research and development expenses. A substantial portion of our ongoing research and development activities is conducted by third-party service providers, including contract research organizations (“CROs”). Our contracts with CROs generally include pass-through fees such as regulatory expenses, investigator fees, travel costs and other miscellaneous costs, including shipping and printing fees. The financial terms of these contracts are subject to negotiations, which vary from contract to contract and may result in payment flows that do not match the periods over which materials or services are provided to us. We accrue the costs incurred under agreements with these third parties based on our estimate of actual work completed in accordance with the respective agreements. In the event we make advance payments, the payments are recorded as a prepaid expense and recognized as the services are performed. We determine the estimated costs through discussions with internal personnel and external service providers as to the progress or stage of completion of the services and the agreed-upon fees to be paid for such services. We accrue for costs associated with unused drug supplies that are both probable and estimable. We make significant judgments and estimates in determining the accrual balance in each reporting period. As actual costs become known, we adjust our accruals. Although we do not expect our estimates to be materially different from amounts actually incurred, such estimates for the status and timing of services performed relative to the actual status and timing of services performed may vary and could result in us reporting amounts that are too high or too low in any particular period. Our accrual is dependent, in part, upon the receipt of timely and accurate reporting from CROs and other third-party vendors. Variations in the assumptions used to estimate accruals including, but not limited to, the number of patients enrolled, the rate of patient enrollment and the actual services performed, may vary from our estimates, resulting in adjustments to clinical trial expenses in future periods. Changes in these estimates that result in material changes to our accruals could materially affect our condensed consolidated financial condition and results of operations. Net Loss Per Share Basic net loss per share is calculated by dividing the net loss by the weighted-average number of shares of common stock outstanding during the period, without consideration for dilutive potential shares of common stock. Diluted net loss per share is the same as basic net loss per share, since the effects of potentially dilutive securities are antidilutive for all periods presented. The following common equivalent shares were not included in the computation of diluted net loss per share because their effect was antidilutive : Outstanding as of March 31, 2017 2016 Stock options to purchase common stock 5,460,662 4,544,319 Restricted stock units 348,024 136,985 Estimated shares issuable under the employee stock purchase plan 61,476 108,581 5,870,162 4,789,885 Recent Accounting Pronouncements In March 2016, the Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) Improvements to Employee Share-Based Payment Accounting Compensation — Stock Compensation In February 2016, the FASB issued ASU 2016-02, Leases In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) ASU 2014-09 outlines a five-step process for revenue recognition that focuses on transfer of control, as opposed to transfer of risk and rewards, and also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenues and cash flows from contracts with customers. Major provisions include determining which goods and services are distinct and require separate accounting (performance obligations), how variable consideration (which may include change orders and claims) is recognized, whether revenue should be recognized at a point in time or over time and ensuring the time value of money is considered in the transaction price. The FASB issued supplemental adoption guidance and clarification to ASU 2014-09 in March 2016, April 2016 and May 2016 within ASU 2016-08, Revenue from Contracts with Customers: Principal vs. Agent Considerations Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing Revenue from Contracts with Customers: Narrow-Scope Improvements and Practical Expedients |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 3. Fair Value Measurements Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value should maximize the use of observable inputs and minimize the use of unobservable inputs. The accounting guidance for fair value establishes a three-level hierarchy for disclosure of fair value measurements, as follows: Level 1—Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. Level 2—Inputs (other than quoted market prices included in Level 1) that are either directly or indirectly observable, 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 instrument’s anticipated life. Level 3—Unobservable inputs that are supported by little or no market activity and reflect our best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model. 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 following tables set forth the fair value of our financial instruments that were measured on a recurring basis (in thousands): As of March 31, 2017 Level 1 Level 2 Level 3 Total Financial assets: Money market funds $ 33,336 $ — $ — $ 33,336 U.S. Treasury securities 6,079 — — 6,079 Corporate debt — 182,696 — 182,696 Repurchase agreements — 60,000 — 60,000 U.S. Government agency securities — 63,061 — 63,061 Commercial paper — 85,971 — 85,971 Certificates of deposit — 901 — 901 Total financial assets $ 39,415 $ 392,629 $ — $ 432,044 As of December 31, 2016 Level 1 Level 2 Level 3 Total Financial assets: Money market funds $ 5,115 $ — $ — $ 5,115 U.S. Treasury securities 6,112 — — 6,112 Corporate debt — 168,878 — 168,878 Repurchase agreements — 22,550 — 22,550 U.S. Government agency securities — 41,366 — 41,366 Commercial paper — 30,836 — 30,836 Certificates of deposit — 901 — 901 Total financial assets $ 11,227 $ 264,531 $ — $ 275,758 Where quoted prices are available in an active market, securities are classified as Level 1. When quoted market prices are not available for the specific security, then we estimate 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, reported trades and broker/dealer quotes. |
Investments
Investments | 3 Months Ended |
Mar. 31, 2017 | |
Investments [Abstract] | |
Investments | 4. Investments Investments include available-for-sale securities and investment securities classified as cash equivalents. Investment securities consisted of the following (in thousands): As of March 31, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Financial assets: Money market funds $ 33,336 $ — $ — $ 33,336 U.S. Treasury securities 6,084 — (5 ) 6,079 Corporate debt 182,833 18 (155 ) 182,696 Repurchase agreements 60,000 — — 60,000 U.S. Government agency securities 63,094 1 (34 ) 63,061 Commercial paper 85,971 — — 85,971 Certificates of deposit 901 — — 901 Total investments $ 432,219 $ 19 $ (194 ) $ 432,044 As of December 31, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Financial assets: Money market funds $ 5,115 $ — $ — $ 5,115 U.S. Treasury securities 6,112 1 (1 ) 6,112 Corporate debt 169,112 6 (240 ) 168,878 Repurchase agreements 22,550 — — 22,550 U.S. Government agency securities 41,384 — (18 ) 41,366 Commercial paper 30,836 — — 30,836 Certificates of deposit 901 — — 901 Total investments $ 276,010 $ 7 $ (259 ) $ 275,758 As of March 31, 2017, we did not hold any investments with a maturity exceeding two years or that have been in a continuous loss position for 12 months or more. We do not intend to sell the securities that are in an unrealized loss position and it is more likely than not that the investments will be held until recovery of the amortized cost bases. We have determined that the gross unrealized losses on our securities as of March 31, 2017 were temporary in nature. There were no realized gains or losses on the available-for-sale securities during the three months ended March 31, 2017 or 2016. |
Accrued Liabilities
Accrued Liabilities | 3 Months Ended |
Mar. 31, 2017 | |
Payables And Accruals [Abstract] | |
Accrued Liabilities | 5. Accrued Liabilities Accrued liabilities consisted of the following (in thousands): March 31, December 31, 2017 2016 Accrued outside research and development services $ 6,984 $ 10,046 Accrued compensation 3,136 5,839 Accrued professional and consulting services 1,136 1,042 Other 384 300 Total accrued liabilities $ 11,640 $ 17,227 |
Technology and Financing Agreem
Technology and Financing Agreements | 3 Months Ended |
Mar. 31, 2017 | |
Research And Development [Abstract] | |
Technology and Financing Agreements | 6. Technology and Financing Agreements Maruho Agreements In March 2013, we entered into a Right of First Negotiation Agreement with Maruho Co., Ltd. (“Maruho Right of First Negotiation Agreement”), pursuant to which we provided Maruho with certain information and the right to negotiate an exclusive license to develop and commercialize certain of our products in specified territories. In connection with the entry into this agreement, Maruho paid us $10.0 million (“Maruho Payment”), which will be credited against certain payments payable by Maruho to us if we enter into a license agreement for any of our products. Maruho’s right of first negotiation expired in December 2016 but the right to credit the Maruho Payment against certain payments under any future license agreement for our products remains. As of March 31, 2017 and December 31, 2016, we recorded the $10.0 million payment related to the Maruho Right of First Negotiation Agreement as deferred revenue, non-current in our consolidated balance sheets. The revenue would be recognized in connection with and pursuant to a future license arrangement, if any, or at the time the parties decide not to enter into such a license, at which point the entire amount would be recognized as revenue. In September 2016, we entered into an Exclusive License Agreement with Maruho, which grants Maruho an exclusive license to develop and commercialize glycopyrronium tosylate for the treatment of hyperhidrosis in Japan (“Maruho G.T. Agreement”). Pursuant to the terms of the Maruho G.T. Agreement, we received an upfront payment of $25.0 million from Maruho in October 2016 and are eligible to receive additional payments totaling up to $70.0 million, contingent upon the achievement of certain milestones associated with submission and approval of a marketing application in Japan and certain sales thresholds, as well as royalty payments based on a percentage of net product sales in Japan. The Maruho G.T. Agreement further provides that Maruho will be responsible for funding all development and commercial costs for the program in Japan and, until such time, if any, as Maruho elects to establish its own source of supply of drug product, Maruho will purchase product supply from us for development and, if applicable, commercial purposes at cost. The Maruho G.T. Agreement is unrelated to, and the exclusive license of glycopyrronium tosylate in Japan to Maruho was not subject to the terms of, the existing Maruho Right of First Negotiation Agreement. We identified the following non-contingent deliverables under the Maruho G.T. Agreement: (1) the transfer of intellectual property rights (the “license”) and (2) the supply of drug materials for clinical development purposes. We concluded that the license is not a separate unit of accounting because Maruho cannot obtain benefit from the use of the license rights for their intended purpose without the product supplied by us. Even if Maruho elects to establish its own supply of drug product, it must rely upon us to supply the drug substance necessary for Maruho’s development because Maruho does not have the right to manufacture the drug substance. We determined that neither of the deliverables has standalone value and, therefore, the deliverables are accounted for as one combined unit of accounting, with the upfront payment recognized as revenue on a straight-line basis over the estimated period of performance. We regularly evaluate the reasonableness of the estimated period of performance and revise the amortization of deferred revenue as deemed appropriate on a prospective basis. Milestone payments under the Maruho G.T. Agreement could total up to $70.0 million. The achievement of any and all milestones is dependent solely upon the results of Maruho’s activities and, therefore, the milestones are not deemed to be substantive. If regulatory approval for glycopyrronium tosylate is achieved and the product is commercialized in Japan, we would recognize any royalty revenue received from Maruho based on Maruho’s net sales of the drug product in Japan. Unless earlier terminated, the Maruho G.T. Agreement will remain in effect until the later of: (1) expiration or abandonment of the last valid claim of the applicable patent rights in Japan; (2) expiration of any market exclusivity in Japan granted by the applicable regulatory authority; and (3) 15 years following the date of the first commercial sale of the drug product in Japan. For the three months ended March 31, 2017, we recognized collaboration and license revenue related to the Maruho G.T. Agreement of $1.1 million in connection with the $25.0 million upfront payment. In addition, as of March 31, 2017, we have a deferred revenue balance related to the Maruho G.T. Agreement of $22.7 million, of which $4.3 million is recorded in deferred revenue, current on the condensed consolidated balance sheets. UCB (a Related Party) Agreement In March 2014, we entered into a development and commercialization agreement with UCB, a related party (“UCB Agreement”), which provides that we will develop Cimzia for the treatment of psoriasis in order for UCB to seek regulatory approval from the U.S. Food and Drug Administration (“FDA”) We have agreed with UCB on a development plan to obtain regulatory approval from the FDA, the EMA and Health Canada, which may be amended as necessary to meet the requirements of these regulatory authorities for approval. We are responsible for development costs under the development plan up to a specified cap greater than $75.0 million and less than $95.0 million, plus our internal development costs. Development costs under the development plan include the costs of clinical trial materials, which are supplied by UCB and paid by us. Any development costs in excess of the specified cap or for any required clinical trials in pediatric patients will be shared equally. Development costs for any EMA-specific post-approval studies will be borne solely by UCB. We incurred expenses related to clinical materials supplied by UCB totaling $1.0 million and $2.9 million for the three months ended March 31, 2017 and 2016, respectively. As of March 31, 2017, we recorded $2.1 million in prepaid expense and other current assets related to UCB. As of December 31, 2016, we recorded $2.8 million in prepaid expense and other current assets and $1.2 million in accounts payable related to the UCB Agreement. UCB is obligated to pay us up to an aggregate of $36.0 million if certain development milestones are met, and up to an additional aggregate of $13.5 million upon the grant of regulatory approval, including pricing and reimbursement approval, in certain European countries. The UCB Agreement has two deliverables that represent two units of accounting, which are (1) the delivery of services related to the development of Cimzia for the treatment of moderate-to-severe chronic plaque psoriasis and (2) the marketing services needed to commercialize Cimzia in the United States and Canada. At the date of execution of the UCB Agreement, potential future payments eligible to be received upon the achievement of development and regulatory milestones were all considered to be substantive. As such, any milestone payment would be recognized in its entirety in the period in which the milestone event is achieved and collectability is reasonably assured. Any royalties and sales-based milestone payments would be recognized as revenue when earned and realizable. In December 2014, we earned the first development milestone of $7.3 million for dosing of the first patient in the Phase 3 clinical program for Cimzia and recorded the amount as collaboration revenue from a related party in the consolidated statements of operations for the year ended December 31, 2014. In September 2015, we earned the second development milestone of $7.3 million for the completion of patient enrollment in a Phase 3 clinical trial for Cimzia and recorded the amount as collaboration revenue from a related party in the consolidated statements of operations for the year ended December 31, 2015. In December 2016, we earned the third and fourth development milestones of $10.7 million each for the completion of a clinical study report for a Phase 3 clinical trial for Cimzia and recorded the amount as collaboration revenue from a related party in the consolidated statements of operations for the year ended December 31, 2016 and as collaboration receivables from a related party in the consolidated balance sheets as of December 31, 2016. As a result of achieving these milestones, there are no remaining development milestone payments that we are eligible to earn and receive. Under the terms of the UCB Agreement, we will have the exclusive rights upon regulatory approval of the psoriasis indication to promote Cimzia to dermatologists in the United States and Canada. Following such regulatory approval, UCB will book sales and is obligated to pay us royalties representing a percentage of the annual gross profits (after subtracting the costs of certain commercialization support services to be provided by UCB) from Cimzia sales attributed to dermatologists in all indications in the United States and Canada. In each year, the royalties payable to us are tiered based upon increasing levels of annual net sales attributed to dermatologists in such year, with UCB retaining between 10% and, above $150.0 million of such annual net sales in such year, 50%, and us receiving the balance, of such annual gross profits. In addition, UCB is obligated to pay us up to an aggregate of $40.0 million upon the achievement of tiered milestones based on annual net sales of Cimzia attributed to dermatologists in the United States and Canada. As of March 31, 2017, UCB beneficially owned 1,841,234 shares, representing approximately 4% of our outstanding common stock. Pursuant to the UCB Agreement, UCB is entitled to designate one member to our board of directors. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | 7. Stock-Based Compensation In 2010, we adopted the 2010 Equity Incentive Plan (the “2010 Plan”), which provided for the granting of stock options to our employees, directors and consultants. In September 2014, our board of directors approved the 2014 Equity Incentive Plan (the “2014 EIP”), which became effective on October 1, 2014. As of the effective date of the 2014 EIP, the 2010 Plan was terminated and no further stock awards will be granted pursuant to the 2010 Plan. Outstanding stock options granted under the 2010 Plan will continue to be governed by the provisions of the 2010 Plan until the earlier of the stock option’s expiration or exercise. In September 2014, our board of directors approved the 2014 Employee Stock Purchase Plan (the “2014 ESPP”), which became effective on October 2, 2014. The following table reflects a summary of stock option activity and related information for the period from December 31, 2016 through March 31, 2017: Shares Subject to Outstanding Stock Options Weighted- Average Exercise Price Per Share Stock options outstanding at December 31, 2016 4,526,079 $ 13.92 Stock options granted 1,041,020 33.32 Stock options exercised (106,437 ) 9.74 Stock options outstanding at March 31, 2017 5,460,662 17.70 The following table reflects a summary of restricted stock unit (“RSU”) activity under our 2014 EIP and related information for the period from December 31, 2016 through March 31, 2017: Shares Subject to Outstanding RSUs Weighted- Average Grant Date Fair Value Per Share RSUs outstanding at December 31, 2016 147,634 $ 27.21 RSUs granted 200,390 33.19 RSUs outstanding at March 31, 2017 348,024 30.65 Total stock-based compensation expense related to the 2010 Plan, the 2014 EIP and the 2014 ESPP was allocated as follows (in thousands): March 31, 2017 2016 Research and development $ 1,796 $ 954 General and administrative 2,819 1,640 Total stock-based compensation expense $ 4,615 $ 2,594 |
Summary of Significant Accoun13
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation Our condensed consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) and applicable rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) for interim reporting. As permitted under those rules and regulations, certain footnotes or other financial information normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. These condensed consolidated financial statements have been prepared on the same basis as our annual consolidated financial statements and, in the opinion of our management, reflect all adjustments, consisting only of normal recurring adjustments, which are necessary for a fair presentation of our financial information. The results of operations for the three-month period ended March 31, 2017 are not necessarily indicative of the results to be expected for the full year ending December 31, 2017 or any other future period. The condensed consolidated balance sheet as of December 31, 2016 has been derived from audited consolidated financial statements at that date but does not include all of the information required by U.S. GAAP for complete financial statements. The accompanying condensed consolidated financial statements include the accounts of our wholly owned subsidiary, Dermira Canada. All intercompany accounts and transactions have been eliminated in consolidation. The accompanying condensed consolidated financial statements and related financial information should be read in conjunction with our audited consolidated financial statements and the related notes thereto for the year ended December 31, 2016 included in our Annual Report on Form 10-K, filed with the SEC on February 28, 2017. |
Use of Estimates | Use of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the condensed consolidated financial statements and reported amounts of revenues and expenses during the reporting periods. On an ongoing basis, we evaluate our estimates, including those related to revenue recognition, investments, accrued research and development expenses, goodwill, intangible assets, other long-lived assets, stock-based compensation and the valuation of deferred tax assets. We base our estimates on our historical experience and also on assumptions that we believe are reasonable; however, actual results could significantly differ from those estimates. |
Revenue Recognition | Revenue Recognition We generate revenue from collaboration and license agreements related to the development and commercialization of our product candidates. We recognize revenue when persuasive evidence of an arrangement exists, services have been performed or products have been delivered, the fee is fixed and determinable and collection is reasonably assured. Collaboration and license agreements may include non-refundable upfront payments or reimbursement of research and development costs, contingent consideration payments based on achievement of defined milestones, and royalties on sales of commercialized products. Our responsibilities under collaboration and license agreements may include the transfer of intellectual property rights, such as licenses, obligations to provide research and development services, product supply and regulatory approval services, and participation on certain development and commercialization committees. For upfront payments that are recorded as deferred revenue and being recognized over the estimated period of performance, we regularly review the estimated periods of performance based on the progress made under each arrangement. The estimated performance period may change over the course of an arrangement’s term. Such a change could have a material impact on the amount of revenue recorded in future periods. Multiple Element Arrangements To determine the appropriate revenue recognition for payments to us under our collaboration and license agreements with multiple element arrangements, we evaluate whether the non-contingent deliverables of an arrangement represent separate units of accounting or a single unit of accounting. For non-contingent deliverables of an arrangement to represent separate units of accounting, the delivered elements each must have standalone value to the customer. Factors to determine standalone value include whether the deliverable is proprietary to us, whether the customer can use the license or other deliverables for their intended purpose without the receipt of the remaining elements and whether there are other vendors that can provide the undelivered items. Deliverables that meet these criteria are considered separate units of accounting. Deliverables that do not meet these criteria are combined and accounted for as a single unit of accounting. Milestones and Other Contingent Payments We have adopted the milestone method as described in Accounting Standards Codification 605-28, Milestone Method of Revenue Recognition We evaluate whether milestones meet all of the following conditions to be considered substantive: (1) the consideration is commensurate with either of (a) our performance to achieve the milestone or (b) the enhancement of the value of the delivered item or items as a result of a specific outcome resulting from our performance to achieve the milestone; (2) the consideration relates solely to past performance; and (3) the consideration is reasonable relative to all the deliverables and payment terms within the arrangement. Substantive milestones are recognized as revenue upon achievement of the milestone and when collectability is reasonably assured. |
Accrued Research and Development Expenses | Accrued Research and Development Expenses We record accruals for estimated costs of research, preclinical, non-clinical and clinical studies and manufacturing activities, which are a significant component of research and development expenses. A substantial portion of our ongoing research and development activities is conducted by third-party service providers, including contract research organizations (“CROs”). Our contracts with CROs generally include pass-through fees such as regulatory expenses, investigator fees, travel costs and other miscellaneous costs, including shipping and printing fees. The financial terms of these contracts are subject to negotiations, which vary from contract to contract and may result in payment flows that do not match the periods over which materials or services are provided to us. We accrue the costs incurred under agreements with these third parties based on our estimate of actual work completed in accordance with the respective agreements. In the event we make advance payments, the payments are recorded as a prepaid expense and recognized as the services are performed. We determine the estimated costs through discussions with internal personnel and external service providers as to the progress or stage of completion of the services and the agreed-upon fees to be paid for such services. We accrue for costs associated with unused drug supplies that are both probable and estimable. We make significant judgments and estimates in determining the accrual balance in each reporting period. As actual costs become known, we adjust our accruals. Although we do not expect our estimates to be materially different from amounts actually incurred, such estimates for the status and timing of services performed relative to the actual status and timing of services performed may vary and could result in us reporting amounts that are too high or too low in any particular period. Our accrual is dependent, in part, upon the receipt of timely and accurate reporting from CROs and other third-party vendors. Variations in the assumptions used to estimate accruals including, but not limited to, the number of patients enrolled, the rate of patient enrollment and the actual services performed, may vary from our estimates, resulting in adjustments to clinical trial expenses in future periods. Changes in these estimates that result in material changes to our accruals could materially affect our condensed consolidated financial condition and results of operations. |
Net Loss Per Share | Net Loss Per Share Basic net loss per share is calculated by dividing the net loss by the weighted-average number of shares of common stock outstanding during the period, without consideration for dilutive potential shares of common stock. Diluted net loss per share is the same as basic net loss per share, since the effects of potentially dilutive securities are antidilutive for all periods presented. The following common equivalent shares were not included in the computation of diluted net loss per share because their effect was antidilutive : Outstanding as of March 31, 2017 2016 Stock options to purchase common stock 5,460,662 4,544,319 Restricted stock units 348,024 136,985 Estimated shares issuable under the employee stock purchase plan 61,476 108,581 5,870,162 4,789,885 |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In March 2016, the Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) Improvements to Employee Share-Based Payment Accounting Compensation — Stock Compensation In February 2016, the FASB issued ASU 2016-02, Leases In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) ASU 2014-09 outlines a five-step process for revenue recognition that focuses on transfer of control, as opposed to transfer of risk and rewards, and also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenues and cash flows from contracts with customers. Major provisions include determining which goods and services are distinct and require separate accounting (performance obligations), how variable consideration (which may include change orders and claims) is recognized, whether revenue should be recognized at a point in time or over time and ensuring the time value of money is considered in the transaction price. The FASB issued supplemental adoption guidance and clarification to ASU 2014-09 in March 2016, April 2016 and May 2016 within ASU 2016-08, Revenue from Contracts with Customers: Principal vs. Agent Considerations Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing Revenue from Contracts with Customers: Narrow-Scope Improvements and Practical Expedients |
Summary of Significant Accoun14
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Schedule of Common Equivalent Shares Not Included in Computation of Diluted Net Loss per Share | The following common equivalent shares were not included in the computation of diluted net loss per share because their effect was antidilutive : Outstanding as of March 31, 2017 2016 Stock options to purchase common stock 5,460,662 4,544,319 Restricted stock units 348,024 136,985 Estimated shares issuable under the employee stock purchase plan 61,476 108,581 5,870,162 4,789,885 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value of Financial Instruments that were Measured on a Recurring Basis | The following tables set forth the fair value of our financial instruments that were measured on a recurring basis (in thousands): As of March 31, 2017 Level 1 Level 2 Level 3 Total Financial assets: Money market funds $ 33,336 $ — $ — $ 33,336 U.S. Treasury securities 6,079 — — 6,079 Corporate debt — 182,696 — 182,696 Repurchase agreements — 60,000 — 60,000 U.S. Government agency securities — 63,061 — 63,061 Commercial paper — 85,971 — 85,971 Certificates of deposit — 901 — 901 Total financial assets $ 39,415 $ 392,629 $ — $ 432,044 As of December 31, 2016 Level 1 Level 2 Level 3 Total Financial assets: Money market funds $ 5,115 $ — $ — $ 5,115 U.S. Treasury securities 6,112 — — 6,112 Corporate debt — 168,878 — 168,878 Repurchase agreements — 22,550 — 22,550 U.S. Government agency securities — 41,366 — 41,366 Commercial paper — 30,836 — 30,836 Certificates of deposit — 901 — 901 Total financial assets $ 11,227 $ 264,531 $ — $ 275,758 |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Investments [Abstract] | |
Schedule of Investment Securities | Investment securities consisted of the following (in thousands): As of March 31, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Financial assets: Money market funds $ 33,336 $ — $ — $ 33,336 U.S. Treasury securities 6,084 — (5 ) 6,079 Corporate debt 182,833 18 (155 ) 182,696 Repurchase agreements 60,000 — — 60,000 U.S. Government agency securities 63,094 1 (34 ) 63,061 Commercial paper 85,971 — — 85,971 Certificates of deposit 901 — — 901 Total investments $ 432,219 $ 19 $ (194 ) $ 432,044 As of December 31, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Financial assets: Money market funds $ 5,115 $ — $ — $ 5,115 U.S. Treasury securities 6,112 1 (1 ) 6,112 Corporate debt 169,112 6 (240 ) 168,878 Repurchase agreements 22,550 — — 22,550 U.S. Government agency securities 41,384 — (18 ) 41,366 Commercial paper 30,836 — — 30,836 Certificates of deposit 901 — — 901 Total investments $ 276,010 $ 7 $ (259 ) $ 275,758 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Payables And Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities consisted of the following (in thousands): March 31, December 31, 2017 2016 Accrued outside research and development services $ 6,984 $ 10,046 Accrued compensation 3,136 5,839 Accrued professional and consulting services 1,136 1,042 Other 384 300 Total accrued liabilities $ 11,640 $ 17,227 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Stock Option Activity and Related Information | The following table reflects a summary of stock option activity and related information for the period from December 31, 2016 through March 31, 2017: Shares Subject to Outstanding Stock Options Weighted- Average Exercise Price Per Share Stock options outstanding at December 31, 2016 4,526,079 $ 13.92 Stock options granted 1,041,020 33.32 Stock options exercised (106,437 ) 9.74 Stock options outstanding at March 31, 2017 5,460,662 17.70 |
Summary of Restricted Stock Unit ("RSU") Activity Under Our 2014 EIP and Related Information | The following table reflects a summary of restricted stock unit (“RSU”) activity under our 2014 EIP and related information for the period from December 31, 2016 through March 31, 2017: Shares Subject to Outstanding RSUs Weighted- Average Grant Date Fair Value Per Share RSUs outstanding at December 31, 2016 147,634 $ 27.21 RSUs granted 200,390 33.19 RSUs outstanding at March 31, 2017 348,024 30.65 |
Schedule of Total Stock-Based Compensation Expense | Total stock-based compensation expense related to the 2010 Plan, the 2014 EIP and the 2014 ESPP was allocated as follows (in thousands): March 31, 2017 2016 Research and development $ 1,796 $ 954 General and administrative 2,819 1,640 Total stock-based compensation expense $ 4,615 $ 2,594 |
Organization - Additional Infor
Organization - Additional Information (Details) $ in Millions | Mar. 07, 2017USD ($)shares | Mar. 31, 2017product |
Organization | ||
Number of late-stage product candidates | product | 3 | |
2017 Public offering | ||
Organization | ||
Issuance of common stock (in shares) | shares | 5,750,000 | |
Gross proceeds from issuance of common stock | $ 193.8 | |
Underwriting discounts and commissions | 11.6 | |
Offering expenses | 0.7 | |
Net proceeds from issuance of common stock | $ 181.5 |
Summary of Significant Accoun20
Summary of Significant Accounting Policies - Schedule of Common Equivalent Shares Not Included in Computation of Diluted Net Loss per Share (Details) - shares | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Anti dilutive securities not included in calculation of EPS | ||
Shares not included in computation of diluted net loss per share | 5,870,162 | 4,789,885 |
Employee stock options | ||
Anti dilutive securities not included in calculation of EPS | ||
Shares not included in computation of diluted net loss per share | 5,460,662 | 4,544,319 |
Restricted stock units | ||
Anti dilutive securities not included in calculation of EPS | ||
Shares not included in computation of diluted net loss per share | 348,024 | 136,985 |
Employee stock | ||
Anti dilutive securities not included in calculation of EPS | ||
Shares not included in computation of diluted net loss per share | 61,476 | 108,581 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Fair Value of Financial Instruments that were Measured on a Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Financial assets: | ||
Available-for-sale securities | $ 432,044 | $ 275,758 |
Level 1 | ||
Financial assets: | ||
Available-for-sale securities | 39,415 | 11,227 |
Level 2 | ||
Financial assets: | ||
Available-for-sale securities | 392,629 | 264,531 |
Money market funds | ||
Financial assets: | ||
Available-for-sale securities | 33,336 | 5,115 |
Money market funds | Level 1 | ||
Financial assets: | ||
Available-for-sale securities | 33,336 | 5,115 |
U.S. Treasury securities | ||
Financial assets: | ||
Available-for-sale securities | 6,079 | 6,112 |
U.S. Treasury securities | Level 1 | ||
Financial assets: | ||
Available-for-sale securities | 6,079 | 6,112 |
Corporate debt | ||
Financial assets: | ||
Available-for-sale securities | 182,696 | 168,878 |
Corporate debt | Level 2 | ||
Financial assets: | ||
Available-for-sale securities | 182,696 | 168,878 |
Repurchase agreements | ||
Financial assets: | ||
Available-for-sale securities | 60,000 | 22,550 |
Repurchase agreements | Level 2 | ||
Financial assets: | ||
Available-for-sale securities | 60,000 | 22,550 |
U.S. Government agency securities | ||
Financial assets: | ||
Available-for-sale securities | 63,061 | 41,366 |
U.S. Government agency securities | Level 2 | ||
Financial assets: | ||
Available-for-sale securities | 63,061 | 41,366 |
Commercial paper | ||
Financial assets: | ||
Available-for-sale securities | 85,971 | 30,836 |
Commercial paper | Level 2 | ||
Financial assets: | ||
Available-for-sale securities | 85,971 | 30,836 |
Certificates of deposit | ||
Financial assets: | ||
Available-for-sale securities | 901 | 901 |
Certificates of deposit | Level 2 | ||
Financial assets: | ||
Available-for-sale securities | $ 901 | $ 901 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 |
Fair value transfers between level 1 and level 2 | ||
Transfer from level 1 to level 2 | $ 0 | $ 0 |
Transfer from level 2 to level 1 | $ 0 | $ 0 |
Investments - Schedule of Inves
Investments - Schedule of Investment Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Financial assets: | ||
Amortized Cost | $ 432,219 | $ 276,010 |
Gross Unrealized Gains | 19 | 7 |
Gross Unrealized Losses | (194) | (259) |
Fair Value | 432,044 | 275,758 |
Money market funds | ||
Financial assets: | ||
Amortized Cost | 33,336 | 5,115 |
Fair Value | 33,336 | 5,115 |
U.S. Treasury securities | ||
Financial assets: | ||
Amortized Cost | 6,084 | 6,112 |
Gross Unrealized Gains | 1 | |
Gross Unrealized Losses | (5) | (1) |
Fair Value | 6,079 | 6,112 |
Corporate debt | ||
Financial assets: | ||
Amortized Cost | 182,833 | 169,112 |
Gross Unrealized Gains | 18 | 6 |
Gross Unrealized Losses | (155) | (240) |
Fair Value | 182,696 | 168,878 |
Repurchase agreements | ||
Financial assets: | ||
Amortized Cost | 60,000 | 22,550 |
Fair Value | 60,000 | 22,550 |
U.S. Government agency securities | ||
Financial assets: | ||
Amortized Cost | 63,094 | 41,384 |
Gross Unrealized Gains | 1 | |
Gross Unrealized Losses | (34) | (18) |
Fair Value | 63,061 | 41,366 |
Commercial paper | ||
Financial assets: | ||
Amortized Cost | 85,971 | 30,836 |
Fair Value | 85,971 | 30,836 |
Certificates of deposit | ||
Financial assets: | ||
Amortized Cost | 901 | 901 |
Fair Value | $ 901 | $ 901 |
Investments - Additional Inform
Investments - Additional Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Realized gains or losses on the available-for-sale securities | ||
Realized gains or losses on the available-for-sale securities | $ 0 | $ 0 |
Amortized cost | ||
Investments exceeding a two year maturity, amortized cost | 0 | |
Fair value | ||
Investments exceeding a two year maturity | $ 0 |
Accrued Liabilities- Schedule o
Accrued Liabilities- Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Payables And Accruals [Abstract] | ||
Accrued outside research and development services | $ 6,984 | $ 10,046 |
Accrued compensation | 3,136 | 5,839 |
Accrued professional and consulting services | 1,136 | 1,042 |
Other | 384 | 300 |
Total accrued liabilities | $ 11,640 | $ 17,227 |
Technology and Financing Agre26
Technology and Financing Agreements - Maruho Agreement (Details) - USD ($) | 1 Months Ended | 3 Months Ended | ||
Oct. 31, 2016 | Mar. 31, 2013 | Mar. 31, 2017 | Dec. 31, 2016 | |
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||
Deferred revenue, non-current | $ 28,484,000 | $ 29,550,000 | ||
Collaboration and license revenue | 1,066,000 | |||
Deferred revenue, current | 4,265,000 | 4,265,000 | ||
Right of First Negotiation Agreement | Maruho Co. Ltd. | ||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||
Payment received under agreement | $ 10,000,000 | |||
Deferred revenue, non-current | $ 10,000,000 | $ 10,000,000 | ||
Maruho G.T. Agreement | Maruho Co. Ltd. | ||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||
Upfront payment received | $ 25,000,000 | |||
Collaborative arrangement and license agreement expiration term, description | Unless earlier terminated, the Maruho G.T. Agreement will remain in effect until the later of: (1) expiration or abandonment of the last valid claim of the applicable patent rights in Japan; (2) expiration of any market exclusivity in Japan granted by the applicable regulatory authority; and (3) 15 years following the date of the first commercial sale of the drug product in Japan. | |||
Collaborative arrangement and license agreement expiration term of first commercial sale | 15 years | |||
Collaboration and license revenue | $ 1,100 | |||
Deferred revenue balance | 22,700,000 | |||
Deferred revenue, current | 4,300 | |||
Maruho G.T. Agreement | Maruho Co. Ltd. | Maximum | ||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||
Addition payment to be received upon achievement of certain milestones | $ 70,000,000 |
Technology and Financing Agre27
Technology and Financing Agreements - UCB (a Related Party) Agreement (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2017 | Mar. 31, 2016 | Sep. 30, 2015 | Dec. 31, 2016 | Dec. 31, 2014 | |
Technology and Financing Agreements | ||||||
Prepaid expenses and other current assets | $ 8,012,000 | $ 10,649,000 | ||||
Accounts payable | $ 5,406,000 | 13,500,000 | ||||
Beneficial Owner | Development and Commercialization Agreement | UCB | ||||||
Technology and Financing Agreements | ||||||
Agreement term (in years) | 12 years 6 months | |||||
Development costs - company responsibility, minimum | $ 75,000,000 | |||||
Development costs - company responsibility, maximum | 95,000,000 | |||||
Expenses related to clinical materials | 1,000,000 | $ 2,900,000 | ||||
Prepaid expenses and other current assets | 2,100,000 | 2,800,000 | ||||
Accounts payable | 1,200,000 | |||||
Potential proceeds from development milestones | $ 36,000,000 | |||||
Additional proceeds received upon the grant of regulatory approval | $ 13,500,000 | |||||
Collaboration revenue from a related party | $ 0 | $ 7,300,000 | $ 7,300,000 | $ 7,300,000 | ||
Minimum royalty percentage up to base annual net sales | 10.00% | |||||
Base annual net sales for retaining | $ 150,000,000 | |||||
Royalty percentage above base annual net sales | 50.00% | |||||
Proceeds received from achievement of tiered milestones based on annual net sales | $ 40,000,000 | |||||
Common stock outstanding | 1,841,234 | |||||
Percentage of outstanding common stock owned | 4.00% |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock Option Activity and Related Information (Details) | 3 Months Ended |
Mar. 31, 2017$ / sharesshares | |
Shares Subject to Outstanding Stock Options | |
Stock options outstanding (in shares) | shares | 4,526,079 |
Stock options granted (in shares) | shares | 1,041,020 |
Stock options exercised (in shares) | shares | (106,437) |
Stock options outstanding (in shares) | shares | 5,460,662 |
Weighted-Average Exercise Price Per Share | |
Stock options outstanding (in dollars per share) | $ / shares | $ 13.92 |
Stock options granted (in dollars per share) | $ / shares | 33.32 |
Stock options exercised (in dollars per share) | $ / shares | 9.74 |
Stock options outstanding (in dollars per share | $ / shares | $ 17.70 |
Stock-Based Compensation - Su29
Stock-Based Compensation - Summary of Restricted Stock Unit ("RSU") Activity Under Our 2014 EIP and Related Information (Details) - Restricted stock units - 2014 EIP | 3 Months Ended |
Mar. 31, 2017$ / sharesshares | |
Shares Subject to Outstanding RSUs | |
RSUs outstanding at the beginning of the period (in shares) | shares | 147,634 |
RSUs granted (in shares) | shares | 200,390 |
RSUs outstanding at the end of the period (in shares) | shares | 348,024 |
Weighted-Average Grant Date Fair Value | |
RSUs outstanding at the beginning of the period (in dollars per share) | $ / shares | $ 27.21 |
RSUs granted (in dollars per share) | $ / shares | 33.19 |
RSUs outstanding at the end of the period (in dollars per share) | $ / shares | $ 30.65 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Total Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | $ 4,615 | $ 2,594 |
Research and development | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | 1,796 | 954 |
General and administrative | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | $ 2,819 | $ 1,640 |