Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Mar. 31, 2015 | 7-May-15 | |
Document and Entity Information | ||
Entity Registrant Name | Corium International, Inc. | |
Entity Central Index Key | 1594337 | |
Document Type | 10-Q | |
Document Period End Date | 31-Mar-15 | |
Amendment Flag | FALSE | |
Current Fiscal Year End Date | -21 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 18,080,984 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q2 |
CONDENSED_BALANCE_SHEETS
CONDENSED BALANCE SHEETS (USD $) | Mar. 31, 2015 | Sep. 30, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $33,660 | $36,395 |
Accounts receivable | 4,891 | 4,168 |
Unbilled accounts receivable | 1,232 | 1,385 |
Inventories, net | 2,961 | 2,592 |
Prepaid expenses and other current assets | 686 | 1,292 |
Total current assets | 43,430 | 45,832 |
Property and equipment, net | 11,923 | 12,658 |
Debt financing costs, net | 634 | 571 |
Intangible assets, net | 6,741 | 6,683 |
TOTAL ASSETS | 62,728 | 65,744 |
Current liabilities: | ||
Accounts payable | 2,588 | 2,512 |
Accrued expenses and other current liabilities | 3,292 | 4,008 |
Long-term debt, current portion | 54 | 107 |
Capital lease obligations, current portion | 782 | 760 |
Recall liability, current portion | 660 | 774 |
Deferred contract revenues, current portion | 125 | 301 |
Total current liabilities | 7,501 | 8,462 |
Long-term debt, net of current portion | 48,970 | 38,155 |
Capital lease obligations, net of current portion | 492 | 891 |
Recall liability, net of current portion | 2,691 | 2,936 |
Deferred contract revenues, net of current portion | 3,500 | 3,500 |
Total liabilities | 63,154 | 53,944 |
Stockholders' equity (deficit): | ||
Common stock; par value of $0.001 per share, 150,000,000 shares authorized; 18,072,866 and 18,003,883 shares issued and outstanding as of March 31, 2015 and September 30, 2014, respectively | 18 | 18 |
Additional paid-in capital | 115,792 | 114,117 |
Accumulated deficit | -116,236 | -102,335 |
Total stockholders' equity (deficit) | -426 | 11,800 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | $62,728 | $65,744 |
CONDENSED_BALANCE_SHEETS_Paren
CONDENSED BALANCE SHEETS (Parenthetical) (USD $) | Mar. 31, 2015 | Sep. 30, 2014 | Apr. 08, 2014 |
CONDENSED BALANCE SHEETS | |||
Common stock, par value (in dollars per share) | $0.00 | $0.00 | $0.00 |
Common stock, shares authorized | 150,000,000 | 150,000,000 | 150,000,000 |
Common stock, shares issued | 18,072,866 | 18,003,883 | |
Common stock, shares outstanding | 18,072,866 | 18,003,883 |
CONDENSED_STATEMENTS_OF_OPERAT
CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 |
Revenues: | ||||
Product revenues | $7,632 | $7,240 | $14,171 | $15,340 |
Contract research and development revenues | 3,363 | 3,173 | 6,293 | 5,237 |
Other revenues | 296 | 304 | 593 | 608 |
Total revenues | 11,291 | 10,717 | 21,057 | 21,185 |
Costs and operating expenses: | ||||
Cost of product revenues | 5,219 | 4,998 | 9,306 | 10,227 |
Cost of contract research and development revenues | 4,510 | 3,911 | 8,227 | 7,448 |
Research and development expenses | 3,980 | 1,267 | 8,177 | 2,128 |
General and administrative expenses | 2,670 | 1,236 | 5,357 | 3,046 |
Amortization of intangible assets | 162 | 131 | 323 | 261 |
(Gain) / loss on disposal and sale and leaseback of equipment | -32 | 7 | -69 | |
Total costs and operating expenses | 16,541 | 11,511 | 31,397 | 23,041 |
Loss from operations | -5,250 | -794 | -10,340 | -1,856 |
Interest income | 4 | 1 | 6 | 3 |
Interest expense | -1,896 | -1,780 | -3,565 | -3,804 |
Change in fair value of preferred stock warrant liability | -231 | -274 | ||
Change in fair value of subordinated note embedded derivative liability | 6,338 | 7,367 | ||
Income (loss) before income taxes | -7,142 | 3,534 | -13,899 | 1,436 |
Income tax expense | 2 | |||
Net income (loss) and comprehensive income (loss) | ($7,142) | $3,534 | ($13,901) | $1,436 |
Net Income (loss) per share attributable to common stockholders, basic (in dollars per share) | ($0.40) | $0.50 | ($0.77) | $0.03 |
Net Income (loss) per share attributable to common stockholders, diluted (in dollars per share) | ($0.40) | $0.33 | ($0.77) | $0.02 |
Weighted average shares used in computing net income (loss) per share attributable to common stockholders, basic (in shares) | 18,071,320 | 2,232,300 | 18,052,809 | 2,231,049 |
Weighted average shares used in computing net income (loss) per share attributable to common stockholders, diluted (in shares) | 18,071,320 | 5,930,309 | 18,052,809 | 3,482,956 |
CONDENSED_STATEMENT_OF_STOCKHO
CONDENSED STATEMENT OF STOCKHOLDERS' EQUITY (DEFICIT) (USD $) | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Total |
In Thousands, except Share data, unless otherwise specified | ||||
Balance at Sep. 30, 2014 | $18 | $114,117 | ($102,335) | $11,800 |
Balance (in shares) at Sep. 30, 2014 | 18,003,883 | |||
Increase (Decrease) in Stockholders' Equity (Deficit) | ||||
Issuance of common stock under Employee Stock Purchase Plan | 298 | 298 | ||
Issuance of common stock under Employee Stock Purchase Plan (in shares) | 61,042 | |||
Issuance of common stock upon exercise of stock options | 13 | 13 | ||
Issuance of common stock upon exercise of stock options (in shares) | 7,941 | |||
Stock-based compensation expense | 1,364 | 1,364 | ||
Net income (loss) and comprehensive income (loss) | -13,901 | -13,901 | ||
Balance at Mar. 31, 2015 | $18 | $115,792 | ($116,236) | ($426) |
Balance (in shares) at Mar. 31, 2015 | 18,072,866 |
CONDENSED_STATEMENTS_OF_CASH_F
CONDENSED STATEMENTS OF CASH FLOWS (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income (loss) and comprehensive income (loss) | ($13,901) | $1,436 |
Adjustments to reconcile net income (loss) to net cash used by operating activities: | ||
Depreciation and amortization of property and equipment | 1,102 | 1,054 |
(Gain) / loss on disposal and sale and leaseback of equipment | 7 | -69 |
Amortization of premium on modification of subordinated note | -286 | |
Change in fair value of preferred stock warrant liability | 274 | |
Change in fair value of subordinated note embedded derivative liability | -7,367 | |
Amortization of intangible assets | 323 | 261 |
Noncash amortized issue costs on long-term debt and capital leases | 87 | 171 |
Noncash amortized discount on long-term debt and capital leases | 12 | 104 |
Stock-based compensation expense | 1,364 | 250 |
Changes in operating assets and liabilities: | ||
Accounts receivable | -723 | -1,128 |
Unbilled accounts receivable | 153 | -848 |
Inventories, net | -369 | 1,469 |
Prepaid expenses and other current assets | 606 | 454 |
Accounts payable | 121 | 144 |
Accrued expenses and other current liabilities | 70 | 1,412 |
Deferred contract revenues | -176 | 86 |
Recall liability | -359 | -627 |
Long-term interest payable | 823 | |
Net cash used by operating activities | -11,683 | -2,387 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property and equipment | -419 | -1,648 |
Proceeds from sale of equipment | 12 | |
Proceeds from repayment of notes receivable - related parties | 100 | |
Payments for patents and licensing rights | -381 | -308 |
Net cash used by investing activities | -800 | -1,844 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from issuance of long-term debt | 10,000 | |
Payment of transaction costs on issuance of common stock and long-term debt | -150 | -1,832 |
Principal payments on long-term debt | -33 | -452 |
Principal payments on capital lease obligations | -380 | -525 |
Borrowings on bank line of credit | 1,298 | |
Payments on bank line of credit | -2,513 | |
Proceeds from exercise of stock options | 13 | 7 |
Proceeds from issuance of common stock under employee stock purchase plan | 298 | |
Net cash provided (used) by financing activities | 9,748 | -4,017 |
NET DECREASE IN CASH AND CASH EQUIVALENTS | -2,735 | -8,248 |
CASH AND CASH EQUIVALENTS - Beginning of period | 36,395 | 13,581 |
CASH AND CASH EQUIVALENTS - End of period | 33,660 | 5,333 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ||
Cash paid for interest | 3,466 | 2,996 |
Cash paid for income taxes | 1 | |
SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING ACTIVITIES: | ||
Property and equipment purchases included in accounts payable | 154 | 38 |
Issuance of payment-in-kind notes in lieu of cash interest payments | 786 | 647 |
Transaction costs associated with the initial public offering included in accrued liabilities | $1,161 |
Organization_Description_of_Bu
Organization, Description of Business, and Summary of Significant Accounting Policies | 6 Months Ended |
Mar. 31, 2015 | |
Organization, Description of Business, and Summary of Significant Accounting Policies | |
Organization, Description of Business, and Summary of Significant Accounting Policies | |
1. Organization, Description of Business and Summary of Significant Accounting Policies | |
Organization | |
Corium International, Inc., a Delaware corporation (the “Company”), is a commercial stage biopharmaceutical company focused on the development, manufacture and commercialization of specialty pharmaceutical products that leverage its broad experience in transdermal and transmucosal delivery systems. | |
In the normal course of business, the Company enters into collaborative agreements with partners to develop and manufacture products based on the Company’s drug delivery technologies and product development expertise. Revenues consist of net sales of products manufactured, royalties and profit-sharing payments based on sales of such products by partners, and product development fees for research and development activities under collaborative agreements with strategic partners. The Company is also engaged in the research and development of its own transdermal drug delivery products using its proprietary technologies. | |
The Company’s fiscal year ends on September 30. References to “fiscal” refer to the years ended September 30. | |
Basis of Presentation | |
The accompanying unaudited condensed financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and follow the requirements of the Securities and Exchange Commission (the “SEC”) for interim reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by U.S. GAAP can be condensed or omitted. The interim balance sheet as of March 31, 2015 and the statements of operations and comprehensive income (loss) for the three and six months ended March 31, 2015 and 2014, statement of stockholders’ equity (deficit) for the six months ended March 31, 2015 and statements of cash flows for the six months ended March 31, 2015 and 2014 are unaudited. The unaudited interim financial statements have been prepared on the same basis as the annual financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments necessary to present fairly the Company’s financial position as of March 31, 2015 and its results of operations for the three and six months ended March 31, 2015 and 2014 and cash flows for the six months ended March 31, 2015 and 2014. The financial data and the other financial information contained in these notes to the financial statements related to the three and six month periods are also unaudited. The results of operations for the six months ended March 31, 2015 are not necessarily indicative of the results to be expected for the year ending September 30, 2015 or for any future annual or interim period. The balance sheet as of September 30, 2014 has been derived from the audited 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 financial statements and related financial information should be read in conjunction with the audited financial statements and the related notes thereto for the year ended September 30, 2014 included in the Company’s Annual Report on Form 10-K, which was filed with the SEC on December 15, 2014. | |
There have been no material changes to the significant accounting policies previously disclosed in the Company’s audited financial statements for the year ended September 30, 2014. | |
Initial Public Offering | |
In April 2014, the Company sold 6,874,997 shares of its common stock in its initial public offering (the “IPO”) at a price of $8.00 per share. The Company received net cash proceeds of $48.5 million from the IPO, including proceeds from the partial exercise of the underwriters’ option, after deducting underwriting discounts, commissions and issuance costs paid by the Company. | |
On April 8, 2014, immediately prior to the closing of the IPO, all outstanding shares of convertible preferred stock were converted into 3,567,807 shares of common stock, and the related carrying value of $57.3 million was reclassified to common stock and additional paid-in capital. In addition, certain warrants to purchase convertible preferred stock and common stock were converted and net exercised into 971,440 shares of common stock. In connection with the IPO, Corium also repurchased 1,077,809 shares of common stock from its founders for an aggregate purchase price of $5.2 million. | |
Following the filing of the Restated Certificate of Incorporation of the Company on April 8, 2014, the number of shares of capital stock the Company is authorized to issue is 155,000,000 shares, of which 150,000,000 shares may be common stock and 5,000,000 shares may be preferred stock. Both the common stock and preferred stock have a par value of $0.001 per share. | |
Use of Estimates | |
Estimates and assumptions are required to be used by management in the preparation of financial statements in conformity with U.S. GAAP that affect the reported amounts of assets, liabilities, and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of operating revenues and operating expenses during the reporting period. Those estimates and assumptions affect revenue recognition and deferred revenues, impairment of long-lived assets, determination of fair value of stock-based awards and other debt- and equity-related instruments, and accounting for income taxes. As future events and their effects cannot be determined with precision, actual results could differ from those estimates. | |
Concentration of Credit Risk | |
Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash and cash equivalents and accounts receivable. The Company maintains its cash and cash equivalents with a single domestic financial institution that is well capitalized. The Company provides credit, in the normal course of business, to its partners and performs credit evaluations of such partners. | |
Four partners accounted for 89% of the Company’s revenues for both the three and six months ended March 31, 2015, compared to 92% and 94% for the corresponding periods in 2014. These same four partners accounted for 71% and 95% of accounts receivable as of March 31, 2015 and September 30, 2014, respectively. | |
Comprehensive Income (Loss) | |
During the three and six months ended March 31, 2015 and 2014, the Company did not recognize any other comprehensive income (loss) and, therefore, the net income (loss) and comprehensive income (loss) was the same for all periods presented. | |
Revenue Recognition | |
The Company generates revenues from agreements for the development and commercialization of its products. The terms of the agreements may include nonrefundable upfront payments, partial or complete reimbursement of research and development costs, milestone payments, product sales, and royalties and profit sharing on product sales derived from partner agreements. The Company recognizes revenues when the following criteria are met: persuasive evidence of a sales arrangement exists; delivery has occurred; the price is fixed or determinable; and collectability is reasonably assured. | |
Revenue related to multiple element arrangements are analyzed to determine whether the deliverables can be separated or whether they must be accounted for as a single unit of accounting. This determination is generally based on whether any deliverable has stand-alone value to the partner. This analysis also establishes a selling price hierarchy for determining how to allocate arrangement consideration to identified units of accounting. The selling price used for each unit of accounting is based on vendor-specific objective evidence, if available, third-party evidence if vendor-specific objective evidence is not available, or estimated selling price if neither vendor-specific nor third-party evidence is available. Typically, the Company has not granted licenses to partners at the beginning of its arrangements and thus there are no delivered items separate from the research and development services provided. As such, upfront payments are recorded as deferred revenues in the balance sheet and are recognized as contract research and development revenues over the estimated period of performance that is consistent with the terms of the research and development obligations contained in the agreement. The Company periodically reviews the estimated period of performance based on the progress made under each arrangement. | |
Amounts related to research and development funding are generally recognized as the related services or activities are performed, in accordance with the contract terms. To the extent that agreements specify services are to be performed on a cost-plus basis, revenues are recognized as services are rendered. Such work is generally billed on a monthly basis for time incurred at specified rates in the agreements. To the extent that agreements specify services to be performed on a fixed-price basis, revenues are recognized consistent with the pattern of the work performed. Generally, all of the agreements provide for reimbursement of third-party expenses, and such reimbursable expenses are billed as revenues at the time the associated expenses are incurred. | |
The arrangements include contractual milestones, which relate to the achievement of pre-specified research, development, regulatory and commercialization events. The milestone events contained in the Company’s arrangements generally coincide with the progression of the Company’s product candidates through research and development, to regulatory approval, and through to commercialization. The process of successfully developing a new product, having it approved from a regulatory perspective, and ultimately sold for a profit, is highly uncertain. As such, the milestone payments that the Company earns from its partners involve a significant degree of risk to achieve. Research and development milestones in the Company’s strategic alliances includes the following types of events: completion of pre-clinical research and development work, completion of certain development events and initiation or completion of clinical trials. Regulatory milestones may include the following types of events: filing of regulatory applications with the Food and Drug Administration and approval of the regulatory applications by the Food and Drug Administration. Commercialization milestones generally relate to product launch. The Company recognizes milestone payments in their entirety in the period in which the milestone is achieved. | |
Upon commercialization, revenues are generated from product sales, royalties and profit sharing. Product sales are generally recognized as products are shipped and title and risk of loss pass to the partner. Royalties and profit sharing are generally recognized when the partners sell the product to their customers, which could be in a different accounting period than the period in which we sold that product to our partners, and are based on a percentage of the partners’ gross sales or net profits of the products as specified in the underlying agreements. Royalties and profit sharing totaled $0.6 million and $1.2 million for the three and six months ended March 31, 2015, compared to $1.1 million and $3.0 million for the corresponding periods in 2014. | |
Other revenues consists primarily of income derived from the Company’s arrangements with its partners, whereby a portion of the revenues received under these agreements relates to rental income from embedded leases associated with these relationships, as well as revenues associated with licenses granted to a third party for intellectual property related to thin film dressings. | |
Fair_Value_Measurements
Fair Value Measurements | 6 Months Ended | |||||||||||||
Mar. 31, 2015 | ||||||||||||||
Fair Value Measurements | ||||||||||||||
Fair Value Measurements | ||||||||||||||
2. Fair Value Measurements | ||||||||||||||
Financial assets and liabilities are recorded at fair value. Except as noted below, the carrying values of the Company’s financial instruments, including cash equivalents, accounts receivable, and accounts payable, approximated their fair values due to the short period of time to maturity or repayment. | ||||||||||||||
Assets and liabilities recorded at fair value on a recurring basis in the balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair values. Fair value is defined as the exchange price that would be received for an asset, or an exit price that would be paid to transfer a liability, in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The authoritative guidance on fair value measurements establishes a three-tier fair value hierarchy for disclosure of fair value measurements as follows: | ||||||||||||||
Level I —Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date; | ||||||||||||||
Level II —Inputs are observable, unadjusted quoted prices in active markets for similar assets or liabilities, unadjusted quoted prices for identical or similar assets or liabilities 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 related assets or liabilities; and | ||||||||||||||
Level III —Unobservable inputs that are significant to the measurement of the fair value of the assets or liabilities that are supported by little or no market data. | ||||||||||||||
The Company’s financial assets that are measured at fair value on a recurring basis by level within the fair value hierarchy are as follows (in thousands): | ||||||||||||||
As of March 31, 2015 | ||||||||||||||
Level I | Level II | Level III | Total | |||||||||||
Financial Assets: | ||||||||||||||
Money market funds | $ | 33,593 | $ | — | $ | — | $ | 33,593 | ||||||
Total financial assets | $ | 33,593 | $ | — | $ | — | $ | 33,593 | ||||||
As of September 30, 2014 | ||||||||||||||
Level I | Level II | Level III | Total | |||||||||||
Financial Assets: | ||||||||||||||
Money market funds | $ | 36,019 | $ | — | $ | — | $ | 36,019 | ||||||
Total financial assets | $ | 36,019 | $ | — | $ | — | $ | 36,019 | ||||||
The following financial liabilities have carrying values which differ from their fair value as estimated by the Company for instruments with similar terms and remaining maturities (Level III valuation technique) (in thousands): | ||||||||||||||
As of March 31, 2015 | ||||||||||||||
Carrying | Fair | Difference | ||||||||||||
Value | Value | |||||||||||||
Long-term debt | $ | 49,024 | $ | 49,145 | $ | 121 | ||||||||
Total | $ | 49,024 | $ | 49,145 | $ | 121 | ||||||||
As of September 30, 2014 | ||||||||||||||
Carrying | Fair | Difference | ||||||||||||
Value | Value | |||||||||||||
Long-term debt | $ | 38,262 | $ | 40,357 | $ | 2,095 | ||||||||
Total | $ | 38,262 | $ | 40,357 | $ | 2,095 | ||||||||
Inventories
Inventories | 6 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Inventories | ||||||||
Inventories | ||||||||
3. Inventories | ||||||||
Inventories consist of the following (in thousands): | ||||||||
As of | As of | |||||||
March 31, | September 30, | |||||||
2015 | 2014 | |||||||
Raw materials | $ | 1,700 | $ | 1,268 | ||||
Work in process | 850 | 898 | ||||||
Finished goods | 564 | 632 | ||||||
Total inventories, cost | 3,114 | 2,798 | ||||||
Less inventory reserves | (153 | ) | (206 | ) | ||||
Total inventories, net | $ | 2,961 | $ | 2,592 | ||||
LongTerm_Debt
Long-Term Debt | 6 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Long-Term Debt | ||||||||
Long-Term Debt | ||||||||
4. Long-Term Debt | ||||||||
The Company’s outstanding long-term debt was as follows (in thousands): | ||||||||
As of March | As of | |||||||
31, 2015 | September | |||||||
30, 2014 | ||||||||
Term loan agreement expiring June 30, 2019, less discount of $66 and $76 as of March 31, 2015 and September 30, 2014, respectively. See terms of the agreement below. | $ | 48,421 | $ | 37,625 | ||||
Notes payable to lessor for tenant improvements. The note calls for monthly payments of principal and interest of $3 at an interest rate of 7% and is due April 2017 | 81 | 96 | ||||||
Notes payable to lessor for tenant improvements. The note calls for monthly payments of principal and interest of $6 at an interest rate of 7% and is due November 2024 | 522 | 541 | ||||||
Total | 49,024 | 38,262 | ||||||
Less current portion | 54 | 107 | ||||||
Long-term portion | $ | 48,970 | $ | 38,155 | ||||
On July 13, 2012, the Company completed a $35.0 million term loan agreement with Capital Royalty Group, subsequently renamed as CRG (“CRG”), a healthcare-focused investment firm. In August 2012 and December 2012, the Company drew down $29.0 million and $6.0 million under this agreement, respectively, completing the principal borrowing authorized under that agreement. On November 14, 2014, the agreement was amended to, among other things, increase the principal amount of the term loan by $10.0 million, extend the interest-only period to June 30, 2018, and extend its maturity from June 30, 2017 to June 30, 2019. The amended agreement provides for a maximum borrowing of $45.0 million, excluding PIK notes, as defined below. The amended agreement requires interest to be paid quarterly at a simple annual rate of 15%, and all outstanding principal be repaid in four equal quarterly payments beginning on June 30, 2018, with interest continuing to accrue on the unpaid principal at a simple annual rate of 15%. In addition, the amended agreement contains a provision whereby the Company can, at each quarterly payment due date prior to June 30, 2018, choose to convert that portion of each quarterly interest obligation equal to 3.5% of the then-outstanding principal into additional notes. As of March 31, 2015 and September 30, 2014, the Company had converted $3.5 million and $2.7 million, respectively, of interest into such additional notes (also known as payment-in-kind (“PIK”) notes), each of which add to the outstanding principal. | ||||||||
On December 4, 2014, the Company borrowed the remaining $10.0 million of principal provided for in the amended agreement. As of March 31, 2015, the principal amount outstanding under the term loan agreement, including all PIK notes, was $48.5 million. Amounts outstanding under the term loan agreement are collateralized by all of the Company’s assets. The amended agreement provides for a prepayment penalty on the outstanding principal if the Company chooses to repay principal prior to June 30, 2018, or upon other specified events, including a change of control. The term loan agreement provides for financial covenants for minimum annual revenues (beginning with the 12 months ending June 30, 2015) and minimum liquidity, with which the Company has been in continuous compliance since the inception of the loan. | ||||||||
Collaboration_and_Partner_Arra
Collaboration and Partner Arrangements | 6 Months Ended | |||||||||||||
Mar. 31, 2015 | ||||||||||||||
Collaboration and Partner Arrangements. | ||||||||||||||
Collaboration and Partner Arrangements | ||||||||||||||
5. Collaboration and Partner Arrangements | ||||||||||||||
The Company has recognized the following revenues from its collaboration and partner agreements (in thousands): | ||||||||||||||
Three Months Ended March 31, | Six Months Ended March 31, | |||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||
P&G | $ | 2,539 | $ | 2,811 | $ | 6,216 | $ | 5,762 | ||||||
Teva | 3,922 | 2,784 | 5,826 | 6,487 | ||||||||||
Par | 2,611 | 3,405 | 4,863 | 6,528 | ||||||||||
Agile | 980 | 851 | 1,867 | 1,217 | ||||||||||
Other | 1,239 | 866 | 2,285 | 1,191 | ||||||||||
Total revenues | $ | 11,291 | $ | 10,717 | $ | 21,057 | $ | 21,185 | ||||||
Warrants
Warrants | 6 Months Ended |
Mar. 31, 2015 | |
Warrants | |
Warrants | |
6. Warrants | |
The Company issued warrants to purchase shares of the Company’s capital stock as part of several transactions from fiscal 2008 through fiscal 2013. The warrants had been recorded as either equity instruments or liability instruments at the date of their issuances based on the terms of the warrants. | |
As of March 31, 2015, warrants to purchase 128,582 shares of common stock were outstanding with a weighted-average exercise price of $1.77 per share. All of the common stock warrants are exercisable at any time up to five years from issuance. The fair value of these warrants was recorded in stockholders’ equity upon issuance. | |
Convertible_Preferred_Stock_Co
Convertible Preferred Stock, Common Stock and Stockholders' Equity (Deficit) | 6 Months Ended |
Mar. 31, 2015 | |
Convertible Preferred Stock, Common Stock and Stockholders' Equity (Deficit) | |
Convertible Preferred Stock, Common Stock and Stockholders' Equity (Deficit) | |
7. Convertible Preferred Stock, Common Stock and Stockholders’ Equity (Deficit) | |
Convertible Preferred Stock | |
The Company was authorized to issue up to 5.0 million shares of preferred stock as of March 31, 2015 and September 30, 2014 with a par value of $0.001 per share. No preferred stock was outstanding as of that date. | |
Common Stock | |
The Company was authorized to issue up to 150.0 million shares of common stock as of March 31, 2015 and September 30, 2014 with a par value of $0.001 per share. As of March 31, 2015, there were 18,072,866 shares of common stock outstanding. | |
StockBased_Compensation
Stock-Based Compensation | 6 Months Ended | |||||||||||||
Mar. 31, 2015 | ||||||||||||||
Stock-Based Compensation | ||||||||||||||
Stock-Based Compensation | ||||||||||||||
8. Stock-Based Compensation | ||||||||||||||
Equity Incentive Plans | ||||||||||||||
As of March 31, 2015 and September 30, 2014, the Company had four equity incentive plans, all of which are sponsored by the Company, with the exception of the separate stock option plan of StrataGent, Inc., a corporation acquired by the Company on September 20, 2007 (the “StrataGent Plan”). The Company assumed all unexpired, unexercised options outstanding for those employees of StrataGent who remained Company employees after the merger. Each StrataGent option became exercisable into whole shares of Corium stock based on an agreed exchange ratio and per share exercise price such that the total value of the option grant did not change. The Company elected to make no further grants under the StrataGent Plan, however, its terms continue to govern all options issued under that plan. No additional shares available for grant under the StrataGent Plan were assumed by the Company, and any options that were returned to the pool subsequent to the merger with StrataGent were canceled and were not made available for future grants. This wholly-owned subsidiary was dissolved in 2008. As of March 31, 2015, all StrataGent options had been either exercised or canceled. | ||||||||||||||
On March 20, 2014, the Company’s board of directors approved the adoption of the 2014 Equity Incentive Plan (the “2014 Plan”), which became effective in connection with the IPO. Under the 2014 Plan, the Company initially had reserved a total of 1.0 million shares of common stock plus the remaining unissued shares under the Company’s 2012 Equity Incentive Plan (the “2012 Plan”), which was adopted in November 2012 and was replaced by the 2014 Plan. The Company also sponsored the 2002 Stock Option Plan that expired in 2012. On January 1 of each year during the ten-year term of the 2014 Plan, the number of shares of common stock issuable under the 2014 Plan can be increased by an amount equal to up to 4% of the number of shares of common stock outstanding as of the preceding December 31, or such lesser number agreed to by the Company’s board of directors. On January 16, 2015, the Company’s board of directors authorized an increase of 722,834 shares to be added to the total number of shares of common stock issuable under the 2014 Plan. | ||||||||||||||
The exercise price of each option issued under each of the equity incentive plans is required to be no less than the fair value of the Company’s common stock, as determined by the Company’s board of directors on the date of the grant. The maximum term of the options is ten years and the vesting period is typically four years. The term “Corium Plans” refers to the 2014 Plan, the 2012 Plan and the 2002 Stock Option Plan. | ||||||||||||||
A summary of activity under the Corium Plans during the six months ended March 31, 2015 is as follows: | ||||||||||||||
Shares | Stock | Weighted | Weighted- | Aggregate | ||||||||||
Available | Options | Average | Average | Intrinsic | ||||||||||
for Grant | Outstanding | Exercise | Remaining | Value | ||||||||||
Price | Contractual | |||||||||||||
Life | ||||||||||||||
(Years) | ||||||||||||||
(In | ||||||||||||||
thousands) | ||||||||||||||
Balance — September 30, 2014 | 949,885 | 2,085,028 | $ | 2.92 | 7.02 | $ | 6,710 | |||||||
Additional shares authorized | 722,834 | — | — | |||||||||||
Granted | (689,950 | ) | 689,950 | $ | 5.57 | |||||||||
Exercised | — | (3,383 | ) | $ | 1.65 | |||||||||
Forfeited / Cancelled | 3,785 | (3,785 | ) | $ | 3.5 | |||||||||
Balance — March 31, 2015 | 986,554 | 2,767,810 | $ | 3.58 | 7.28 | $ | 8,219 | |||||||
Options exercisable — March 31, 2015 | 1,458,272 | $ | 2.67 | 5.81 | $ | 5,658 | ||||||||
Options vested and expected to vest — March 31, 2015 | 2,647,448 | $ | 3.51 | 4.23 | $ | 8,048 | ||||||||
All outstanding options under the Corium Plans as of March 31, 2015 have an exercise price between $2.12 and $8.18 per share. | ||||||||||||||
The weighted-average fair value of the stock options granted for the six months ended March 31, 2015 were estimated using the Black-Scholes option-pricing model with the following assumptions: | ||||||||||||||
Six Months Ended | ||||||||||||||
March 31, 2015 | ||||||||||||||
Expected term (in years) | 5.27 – 6.63 | |||||||||||||
Expected volatility | 70 – 77% | |||||||||||||
Risk-free interest rate | 1.6 – 1.9% | |||||||||||||
Expected dividend rate | 0% | |||||||||||||
Expected Term — The expected term represents the period that the stock-based awards are expected to be outstanding before exercise or cancellation. As the Company’s historical share exercise experience has not yet provided a reasonable basis upon which to estimate expected term because of a lack of sufficient data points, the Company estimated the expected term by using the simplified method. | ||||||||||||||
Expected Volatility —Because the Company has limited information on the volatility of its common stock due to a lack of significant trading history and limited historical data regarding the volatility of its common stock, the expected volatility used is based on the volatility of a group of comparable publicly traded companies. In evaluating comparability, the Company considered factors such as industry, stage of life cycle and size. The Company will continue to analyze the historical stock price volatility and term assumptions as more historical data for the Company’s common stock becomes available. | ||||||||||||||
Risk-Free Interest Rate —The risk-free interest rate is based on the constant maturity yields of U.S. Treasury notes with remaining maturities similar to the expected term. | ||||||||||||||
Expected Dividend Rate —The Company has never paid any dividends, does not plan to pay dividends in the foreseeable future, and, therefore, uses an expected dividend rate of zero in the valuation model. | ||||||||||||||
2014 Employee Stock Purchase Plan | ||||||||||||||
On March 20, 2014, the Company’s board of directors approved the adoption of the 2014 Employee Stock Purchase Plan (the “2014 ESPP”), which became effective in connection with the IPO. On January 1 of each year during the ten-year term of the plan, the number of shares issuable under the 2014 ESPP can be increased by an amount equal to up to 1% of the number of shares of common stock and common stock equivalents outstanding as of the preceding December 31, or a lesser number agreed to by the board of directors. No more than 4.0 million shares may be issued over the ten-year term of the 2014 ESPP without the consent of the Company’s stockholders. Shares subject to purchase rights granted under the Company’s 2014 ESPP that terminate without having been exercised in full will not reduce the number of shares available for issuance under the Company’s 2014 ESPP. | ||||||||||||||
The Company initially had reserved 310,000 shares of common stock for issuance pursuant to the 2014 ESPP upon its adoption and, on January 16, 2015, the Company’s board of directors reserved an additional 181,994 shares of common stock for issuance pursuant to the 2014 ESPP. As of March 31, 2015, the total reserve available for issuance pursuant to the 2014 ESPP was 430,952 shares of common stock, which reserve is net of issuances of 61,042 shares of common stock. The 2014 ESPP is intended to qualify as an “employee stock purchase plan” under Section 423 of the Internal Revenue Code of 1986 with the purpose of providing employees with an opportunity to purchase the Company’s common stock through accumulated payroll deductions. | ||||||||||||||
The 2014 ESPP provides for a 24-month offering period with four consecutive six-month purchase periods during each offering period. Employees are able to purchase shares of common stock at 85% of the lower of the fair market value of the Company’s common stock on the first day of the offering period (the “Offering Date”) or on the last day of each six-month purchase period (the “Purchase Date”). The closing price as quoted by the Nasdaq is deemed to be the fair value of the Company’s common stock on the Offering Date or the Purchase Date, or if there are no sales on such date, then the last preceding business day on which there were sales. In the event that the closing price of the Company’s common stock on the Purchase Date is lower than it was on the Offering Date, then all participating employees may re-enroll in a new 24-month offering period that commences the day following the Purchase Date. | ||||||||||||||
The first Purchase Date of the April 2, 2014 offering period of the Company’s 2014 ESPP was November 19, 2014. The closing price of the Company’s common stock on that date was $5.73, which was lower than the $8.00 fair market value on the Offering Date. Accordingly, all participants who acquired shares on the first Purchase Date received a purchase price equal to 85% of $5.73, or $4.87. | ||||||||||||||
The fair value of the purchase rights granted under the 2014 ESPP between April 2, 2014 and November 19, 2014 and the offering period commencing on November 20, 2014 were estimated by applying the Black-Scholes option-pricing model to each of the four purchase periods in each offering period using the following assumptions: | ||||||||||||||
Six Months Ended | ||||||||||||||
March 31, 2015 | ||||||||||||||
Fair value of common stock | $5.73 – 8.00 | |||||||||||||
Grant price | $4.87 – 6.80 | |||||||||||||
Expected term (in years) | 0.50 – 2.00 | |||||||||||||
Expected volatility | 47 – 51% | |||||||||||||
Risk-free interest rate | 0.07 – 0.54% | |||||||||||||
Expected dividend rate | 0% | |||||||||||||
Fair Value of Common Stock —The fair market value of the Company’s common stock on the first day of each offering period, or $8.00 for the first offering period, based on the Company’s IPO price, and $5.73 for the new offering period commencing on November 20, 2014. | ||||||||||||||
Grant Price —85% of the fair market value of the Company’s common stock on the first day of each offering period, or $6.80 for the first offering period and $4.87 for the new offering period commencing November 20, 2014. | ||||||||||||||
Expected Terms —The expected terms are based on the end dates of the four purchase periods of each ESPP offering period, which are six, twelve, eighteen and twenty four months from the commencement of each new offering period. | ||||||||||||||
Expected Volatility —Because the Company has limited information on the volatility of its common stock due to a lack of significant trading history and limited historical data regarding the volatility of its common stock, the expected volatility used is based on the volatility of a group of comparable publicly traded companies. In evaluating comparability, the Company considered factors such as industry, stage of life cycle and size. The Company will continue to analyze the historical stock price volatility and term assumptions as more historical data for the Company’s common stock becomes available. | ||||||||||||||
Risk-Free Interest Rate —The risk-free interest rate is based on the constant maturity yields of U.S. Treasury notes with remaining maturities similar to each expected term. | ||||||||||||||
Expected Dividend Rate —The Company has never paid any dividends, does not plan to pay dividends in the foreseeable future, and, therefore, uses an expected dividend rate of zero in the valuation model. | ||||||||||||||
For the three and six months ended March 31, 2015, the Company recorded stock-based compensation expense of $111,000 and $275,000, respectively, and for the six months ended March 31, 2015 issued 61,042 shares of common stock to employees related to the 2014 ESPP. | ||||||||||||||
Stock-Based Compensation Expense | ||||||||||||||
Employee stock-based compensation expense for the three and six months ended March 31, 2015 and 2014 is classified in the condensed statements of operations and comprehensive income (loss) as follows (in thousands): | ||||||||||||||
Three Months Ended March 31, | Six Months Ended March 31, | |||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||
Cost of product revenues | $ | 82 | $ | 5 | $ | 185 | $ | 11 | ||||||
Cost of contract research and development revenues | 46 | 5 | 103 | 9 | ||||||||||
Research and development | 143 | 16 | 268 | 23 | ||||||||||
General and administrative | 405 | 168 | 808 | 207 | ||||||||||
Total stock-based compensation | $ | 676 | $ | 194 | $ | 1,364 | $ | 250 | ||||||
As of March 31, 2015, there was a total of $5.2 million of unrecognized employee stock-based compensation expense, net of estimated forfeitures, related to unvested stock option awards, which is expected to be recognized on a straight-line basis over a weighted-average period of approximately 2.9 years. | ||||||||||||||
Product_Recall_Liability
Product Recall Liability | 6 Months Ended | ||||
Mar. 31, 2015 | |||||
Product Recall Liability | |||||
Product Recall Liability | |||||
9. Product Recall Liability | |||||
In fiscal 2008 and fiscal 2010, Actavis issued two voluntary recalls of certain lots and strengths of Fentanyl TDS manufactured by the Company and sold and distributed by Actavis in the United States. The Company and Actavis negotiated financial settlements for these two recalls, and the Company accrued amounts related to these settlements in fiscal 2009 and 2011. These recall liabilities were subsequently reduced through various mechanisms per the terms of the settlement agreements. | |||||
In October 2012, the Company reached a revised settlement related to the two recalls, which provided for a total and combined remaining liability of $5.0 million as of that date. The revised liability will be repaid through quarterly payments in arrears based on a percentage of the average of the total net revenues recorded by the Company related to Fentanyl TDS. These quarterly payments have been paid to Actavis since July 1, 2013 and will continue through April 1, 2017. To the extent that the revised settlement liability has not been fully repaid as of April 1, 2017, the remaining liability, if any, will be converted into the most recent form of capital stock issued by the Company in connection with a financing, at the price per share of that financing. The revised liability does not accrue interest. | |||||
The following table summarizes the changes to the product recall liability (in thousands): | |||||
Six months | |||||
ended | |||||
March 31, 2015 | |||||
Balance at September 30, 2014 | $ | 3,710 | |||
Payment of settlement liability | (359 | ) | |||
Balance at March 31, 2015 | $ | 3,351 | |||
Net_Income_Loss_and_Net_Income
Net Income (Loss) and Net Income (Loss) per Share Attributable to Common Stockholders | 6 Months Ended | |||||||||||||
Mar. 31, 2015 | ||||||||||||||
Net Income (Loss) and Net Income (Loss) per Share Attributable to Common Stockholders | ||||||||||||||
Net Income (Loss) and Net Income (Loss) per Share Attributable to Common Stockholders | ||||||||||||||
10. Net Income (Loss) and Net Income (Loss) per Share Attributable to Common Stockholders | ||||||||||||||
In April 2014, the Company completed its IPO, which resulted in significant changes to the number of then-outstanding shares of common stock. The following table sets forth the computation of the Company’s basic and diluted net income (loss) per share attributable to common stockholders during the three and six months ended March 31, 2015 and 2014 (in thousands, except share and per share data): | ||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||
March 31, | March 31, | |||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||
Basic Net income (loss) per share | ||||||||||||||
Net income (loss) attributable to common stockholders, basic and diluted | $ | (7,142 | ) | $ | 3,534 | $ | (13,901 | ) | $ | 1,436 | ||||
Less: undistributed earnings attributable to participating securities | — | (2,420 | ) | — | (1,375 | ) | ||||||||
Net income (loss) attributable to common stockholders, basic | $ | (7,142 | ) | $ | 1,114 | $ | (13,901 | ) | $ | 61 | ||||
Weighted-average shares used in computing net income (loss) per share attributable to common stockholders, basic | 18,071,320 | 2,232,300 | 18,052,809 | 2,231,049 | ||||||||||
Net income (loss) attributable to common stockholders, basic | $ | (0.40 | ) | $ | 0.5 | $ | (0.77 | ) | $ | 0.03 | ||||
Three Months Ended | Six Months Ended | |||||||||||||
March 31, | March 31, | |||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||
Fully Diluted Net income (loss) per share | ||||||||||||||
Net income (loss) attributable to common stockholders, basic and diluted | $ | (7,142 | ) | $ | 3,534 | $ | (13,901 | ) | $ | 1,436 | ||||
Less: undistributed earnings attributable to participating securities | — | (1,573 | ) | — | (1,358 | ) | ||||||||
Net income (loss) attributable to common stockholders, diluted | $ | (7,142 | ) | $ | 1,961 | $ | (13,901 | ) | $ | 78 | ||||
Weighted-average shares used in computing net income (loss) per share attributable to common stockholders, basic | 18,071,320 | 2,232,300 | 18,052,809 | 2,231,049 | ||||||||||
Effect of potentially dilutive securities: | — | — | — | — | ||||||||||
Dilutive options | — | 756,300 | — | 518,655 | ||||||||||
Assumed conversion of convertible notes | — | 2,063,989 | — | — | ||||||||||
Common stock warrants | — | 877,720 | — | 733,252 | ||||||||||
Weighted-average shares used in computing net income (loss) per share attributable to common stockholders, diluted | 18,071,320 | 5,930,309 | 18,052,809 | 3,482,956 | ||||||||||
Net income (loss) attributable to common stockholders, diluted | $ | (0.40 | ) | $ | 0.33 | $ | (0.77 | ) | $ | 0.02 | ||||
The following outstanding shares of common stock equivalents were excluded from the computation of the diluted net income (loss) per share attributable to common stockholders for the periods presented because including them would have been antidilutive: | ||||||||||||||
Three months ended | Six months ended | |||||||||||||
March 31, | March 31, | |||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||
Convertible preferred stock | — | 3,567,807 | — | 3,537,807 | ||||||||||
Stock options to purchase common stock | 2,767,810 | — | 2,767,810 | 37,902 | ||||||||||
Shares authorized under the 2014 ESPP | 430,952 | — | 430,952 | — | ||||||||||
Common stock warrants | 128,582 | — | 128,582 | — | ||||||||||
Preferred stock warrants | — | 170,962 | — | 136,658 | ||||||||||
Convertible notes | — | — | — | 2,090,604 | ||||||||||
Income_Taxes
Income Taxes | 6 Months Ended |
Mar. 31, 2015 | |
Income Taxes | |
Income Taxes | |
11. Income Taxes | |
The Company did not record a provision for Federal income taxes for the three and six months ended March 31, 2015 because it expected to generate a net operating loss for the year ending September 31, 2015. The income tax expense of $2,000 for the six months ended March 31, 2015 represents minimum statutory payments due in the states in which the Company is subject to taxation. The Company’s deferred tax assets continue to be fully offset by a valuation allowance. | |
Segment_and_EnterpriseWide_Inf
Segment and Enterprise-Wide Information | 6 Months Ended |
Mar. 31, 2015 | |
Segment and Enterprise-Wide Information | |
Segment and Enterprise-Wide Information | |
12. Segment and Enterprise-Wide Information | |
The Company’s chief operating decision maker is its President and Chief Executive Officer. The President and Chief Executive Officer reviews the Company’s operating results on an aggregate basis for purposes of allocating resources and evaluating financial performance. The Company has one business activity and there are no segment managers who are held accountable for operations or operating results for levels or components. Accordingly, the Company has a single reporting segment and operating unit structure. | |
All of the Company’s revenues are derived from partners located in the United States and all long-lived assets are located in the United States. | |
Organization_Description_of_Bu1
Organization, Description of Business, and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Mar. 31, 2015 | |
Organization, Description of Business, and Summary of Significant Accounting Policies | |
Organization | |
Organization | |
Corium International, Inc., a Delaware corporation (the “Company”), is a commercial stage biopharmaceutical company focused on the development, manufacture and commercialization of specialty pharmaceutical products that leverage its broad experience in transdermal and transmucosal delivery systems. | |
In the normal course of business, the Company enters into collaborative agreements with partners to develop and manufacture products based on the Company’s drug delivery technologies and product development expertise. Revenues consist of net sales of products manufactured, royalties and profit-sharing payments based on sales of such products by partners, and product development fees for research and development activities under collaborative agreements with strategic partners. The Company is also engaged in the research and development of its own transdermal drug delivery products using its proprietary technologies. | |
The Company’s fiscal year ends on September 30. References to “fiscal” refer to the years ended September 30. | |
Basis of Presentation | |
Basis of Presentation | |
The accompanying unaudited condensed financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and follow the requirements of the Securities and Exchange Commission (the “SEC”) for interim reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by U.S. GAAP can be condensed or omitted. The interim balance sheet as of March 31, 2015 and the statements of operations and comprehensive income (loss) for the three and six months ended March 31, 2015 and 2014, statement of stockholders’ equity (deficit) for the six months ended March 31, 2015 and statements of cash flows for the six months ended March 31, 2015 and 2014 are unaudited. The unaudited interim financial statements have been prepared on the same basis as the annual financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments necessary to present fairly the Company’s financial position as of March 31, 2015 and its results of operations for the three and six months ended March 31, 2015 and 2014 and cash flows for the six months ended March 31, 2015 and 2014. The financial data and the other financial information contained in these notes to the financial statements related to the three and six month periods are also unaudited. The results of operations for the six months ended March 31, 2015 are not necessarily indicative of the results to be expected for the year ending September 30, 2015 or for any future annual or interim period. The balance sheet as of September 30, 2014 has been derived from the audited 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 financial statements and related financial information should be read in conjunction with the audited financial statements and the related notes thereto for the year ended September 30, 2014 included in the Company’s Annual Report on Form 10-K, which was filed with the SEC on December 15, 2014. | |
There have been no material changes to the significant accounting policies previously disclosed in the Company’s audited financial statements for the year ended September 30, 2014. | |
Initial Public Offering | |
Initial Public Offering | |
In April 2014, the Company sold 6,874,997 shares of its common stock in its initial public offering (the “IPO”) at a price of $8.00 per share. The Company received net cash proceeds of $48.5 million from the IPO, including proceeds from the partial exercise of the underwriters’ option, after deducting underwriting discounts, commissions and issuance costs paid by the Company. | |
On April 8, 2014, immediately prior to the closing of the IPO, all outstanding shares of convertible preferred stock were converted into 3,567,807 shares of common stock, and the related carrying value of $57.3 million was reclassified to common stock and additional paid-in capital. In addition, certain warrants to purchase convertible preferred stock and common stock were converted and net exercised into 971,440 shares of common stock. In connection with the IPO, Corium also repurchased 1,077,809 shares of common stock from its founders for an aggregate purchase price of $5.2 million. | |
Following the filing of the Restated Certificate of Incorporation of the Company on April 8, 2014, the number of shares of capital stock the Company is authorized to issue is 155,000,000 shares, of which 150,000,000 shares may be common stock and 5,000,000 shares may be preferred stock. Both the common stock and preferred stock have a par value of $0.001 per share. | |
Use of Estimates | |
Use of Estimates | |
Estimates and assumptions are required to be used by management in the preparation of financial statements in conformity with U.S. GAAP that affect the reported amounts of assets, liabilities, and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of operating revenues and operating expenses during the reporting period. Those estimates and assumptions affect revenue recognition and deferred revenues, impairment of long-lived assets, determination of fair value of stock-based awards and other debt- and equity-related instruments, and accounting for income taxes. As future events and their effects cannot be determined with precision, actual results could differ from those estimates. | |
Concentration of Credit Risk | |
Concentration of Credit Risk | |
Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash and cash equivalents and accounts receivable. The Company maintains its cash and cash equivalents with a single domestic financial institution that is well capitalized. The Company provides credit, in the normal course of business, to its partners and performs credit evaluations of such partners. | |
Four partners accounted for 89% of the Company’s revenues for both the three and six months ended March 31, 2015, compared to 92% and 94% for the corresponding periods in 2014. These same four partners accounted for 71% and 95% of accounts receivable as of March 31, 2015 and September 30, 2014, respectively. | |
Comprehensive Income (Loss) | |
Comprehensive Income (Loss) | |
During the three and six months ended March 31, 2015 and 2014, the Company did not recognize any other comprehensive income (loss) and, therefore, the net income (loss) and comprehensive income (loss) was the same for all periods presented. | |
Revenue Recognition | |
Revenue Recognition | |
The Company generates revenues from agreements for the development and commercialization of its products. The terms of the agreements may include nonrefundable upfront payments, partial or complete reimbursement of research and development costs, milestone payments, product sales, and royalties and profit sharing on product sales derived from partner agreements. The Company recognizes revenues when the following criteria are met: persuasive evidence of a sales arrangement exists; delivery has occurred; the price is fixed or determinable; and collectability is reasonably assured. | |
Revenue related to multiple element arrangements are analyzed to determine whether the deliverables can be separated or whether they must be accounted for as a single unit of accounting. This determination is generally based on whether any deliverable has stand-alone value to the partner. This analysis also establishes a selling price hierarchy for determining how to allocate arrangement consideration to identified units of accounting. The selling price used for each unit of accounting is based on vendor-specific objective evidence, if available, third-party evidence if vendor-specific objective evidence is not available, or estimated selling price if neither vendor-specific nor third-party evidence is available. Typically, the Company has not granted licenses to partners at the beginning of its arrangements and thus there are no delivered items separate from the research and development services provided. As such, upfront payments are recorded as deferred revenues in the balance sheet and are recognized as contract research and development revenues over the estimated period of performance that is consistent with the terms of the research and development obligations contained in the agreement. The Company periodically reviews the estimated period of performance based on the progress made under each arrangement. | |
Amounts related to research and development funding are generally recognized as the related services or activities are performed, in accordance with the contract terms. To the extent that agreements specify services are to be performed on a cost-plus basis, revenues are recognized as services are rendered. Such work is generally billed on a monthly basis for time incurred at specified rates in the agreements. To the extent that agreements specify services to be performed on a fixed-price basis, revenues are recognized consistent with the pattern of the work performed. Generally, all of the agreements provide for reimbursement of third-party expenses, and such reimbursable expenses are billed as revenues at the time the associated expenses are incurred. | |
The arrangements include contractual milestones, which relate to the achievement of pre-specified research, development, regulatory and commercialization events. The milestone events contained in the Company’s arrangements generally coincide with the progression of the Company’s product candidates through research and development, to regulatory approval, and through to commercialization. The process of successfully developing a new product, having it approved from a regulatory perspective, and ultimately sold for a profit, is highly uncertain. As such, the milestone payments that the Company earns from its partners involve a significant degree of risk to achieve. Research and development milestones in the Company’s strategic alliances includes the following types of events: completion of pre-clinical research and development work, completion of certain development events and initiation or completion of clinical trials. Regulatory milestones may include the following types of events: filing of regulatory applications with the Food and Drug Administration and approval of the regulatory applications by the Food and Drug Administration. Commercialization milestones generally relate to product launch. The Company recognizes milestone payments in their entirety in the period in which the milestone is achieved. | |
Upon commercialization, revenues are generated from product sales, royalties and profit sharing. Product sales are generally recognized as products are shipped and title and risk of loss pass to the partner. Royalties and profit sharing are generally recognized when the partners sell the product to their customers, which could be in a different accounting period than the period in which we sold that product to our partners, and are based on a percentage of the partners’ gross sales or net profits of the products as specified in the underlying agreements. Royalties and profit sharing totaled $0.6 million and $1.2 million for the three and six months ended March 31, 2015, compared to $1.1 million and $3.0 million for the corresponding periods in 2014. | |
Other revenues consists primarily of income derived from the Company’s arrangements with its partners, whereby a portion of the revenues received under these agreements relates to rental income from embedded leases associated with these relationships, as well as revenues associated with licenses granted to a third party for intellectual property related to thin film dressings. | |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 6 Months Ended | |||||||||||||
Mar. 31, 2015 | ||||||||||||||
Fair Value Measurements | ||||||||||||||
Schedule of the Company's financial assets that are measured at fair value on a recurring basis by level within the fair value hierarchy | ||||||||||||||
The Company’s financial assets that are measured at fair value on a recurring basis by level within the fair value hierarchy are as follows (in thousands): | ||||||||||||||
As of March 31, 2015 | ||||||||||||||
Level I | Level II | Level III | Total | |||||||||||
Financial Assets: | ||||||||||||||
Money market funds | $ | 33,593 | $ | — | $ | — | $ | 33,593 | ||||||
Total financial assets | $ | 33,593 | $ | — | $ | — | $ | 33,593 | ||||||
As of September 30, 2014 | ||||||||||||||
Level I | Level II | Level III | Total | |||||||||||
Financial Assets: | ||||||||||||||
Money market funds | $ | 36,019 | $ | — | $ | — | $ | 36,019 | ||||||
Total financial assets | $ | 36,019 | $ | — | $ | — | $ | 36,019 | ||||||
Schedule of differences between carrying values and estimated fair value of financial instruments | ||||||||||||||
The following financial liabilities have carrying values which differ from their fair value as estimated by the Company for instruments with similar terms and remaining maturities (Level III valuation technique) (in thousands): | ||||||||||||||
As of March 31, 2015 | ||||||||||||||
Carrying | Fair | Difference | ||||||||||||
Value | Value | |||||||||||||
Long-term debt | $ | 49,024 | $ | 49,145 | $ | 121 | ||||||||
Total | $ | 49,024 | $ | 49,145 | $ | 121 | ||||||||
As of September 30, 2014 | ||||||||||||||
Carrying | Fair | Difference | ||||||||||||
Value | Value | |||||||||||||
Long-term debt | $ | 38,262 | $ | 40,357 | $ | 2,095 | ||||||||
Total | $ | 38,262 | $ | 40,357 | $ | 2,095 | ||||||||
Inventories_Tables
Inventories (Tables) | 6 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Inventories | ||||||||
Schedule of Inventories | ||||||||
Inventories consist of the following (in thousands): | ||||||||
As of | As of | |||||||
March 31, | September 30, | |||||||
2015 | 2014 | |||||||
Raw materials | $ | 1,700 | $ | 1,268 | ||||
Work in process | 850 | 898 | ||||||
Finished goods | 564 | 632 | ||||||
Total inventories, cost | 3,114 | 2,798 | ||||||
Less inventory reserves | (153 | ) | (206 | ) | ||||
Total inventories, net | $ | 2,961 | $ | 2,592 | ||||
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 6 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Long-Term Debt | ||||||||
Schedule of the entity's outstanding debt | ||||||||
The Company’s outstanding long-term debt was as follows (in thousands): | ||||||||
As of March | As of | |||||||
31, 2015 | September | |||||||
30, 2014 | ||||||||
Term loan agreement expiring June 30, 2019, less discount of $66 and $76 as of March 31, 2015 and September 30, 2014, respectively. See terms of the agreement below. | $ | 48,421 | $ | 37,625 | ||||
Notes payable to lessor for tenant improvements. The note calls for monthly payments of principal and interest of $3 at an interest rate of 7% and is due April 2017 | 81 | 96 | ||||||
Notes payable to lessor for tenant improvements. The note calls for monthly payments of principal and interest of $6 at an interest rate of 7% and is due November 2024 | 522 | 541 | ||||||
Total | 49,024 | 38,262 | ||||||
Less current portion | 54 | 107 | ||||||
Long-term portion | $ | 48,970 | $ | 38,155 | ||||
Collaboration_and_Partner_Arra1
Collaboration and Partner Arrangements (Tables) | 6 Months Ended | |||||||||||||
Mar. 31, 2015 | ||||||||||||||
Collaboration and Partner Arrangements. | ||||||||||||||
Schedule of revenues from the entity's collaboration and partner agreements | ||||||||||||||
The Company has recognized the following revenues from its collaboration and partner agreements (in thousands): | ||||||||||||||
Three Months Ended March 31, | Six Months Ended March 31, | |||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||
P&G | $ | 2,539 | $ | 2,811 | $ | 6,216 | $ | 5,762 | ||||||
Teva | 3,922 | 2,784 | 5,826 | 6,487 | ||||||||||
Par | 2,611 | 3,405 | 4,863 | 6,528 | ||||||||||
Agile | 980 | 851 | 1,867 | 1,217 | ||||||||||
Other | 1,239 | 866 | 2,285 | 1,191 | ||||||||||
Total revenues | $ | 11,291 | $ | 10,717 | $ | 21,057 | $ | 21,185 | ||||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 6 Months Ended | |||||||||||||
Mar. 31, 2015 | ||||||||||||||
Stock-based compensation | ||||||||||||||
Schedule of employee stock-based compensation expense classified in the statements of operations and comprehensive income (loss) | ||||||||||||||
Employee stock-based compensation expense for the three and six months ended March 31, 2015 and 2014 is classified in the condensed statements of operations and comprehensive income (loss) as follows (in thousands): | ||||||||||||||
Three Months Ended March 31, | Six Months Ended March 31, | |||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||
Cost of product revenues | $ | 82 | $ | 5 | $ | 185 | $ | 11 | ||||||
Cost of contract research and development revenues | 46 | 5 | 103 | 9 | ||||||||||
Research and development | 143 | 16 | 268 | 23 | ||||||||||
General and administrative | 405 | 168 | 808 | 207 | ||||||||||
Total stock-based compensation | $ | 676 | $ | 194 | $ | 1,364 | $ | 250 | ||||||
Corium Plans | ||||||||||||||
Stock-based compensation | ||||||||||||||
Summary of activity under the Plans | ||||||||||||||
Shares | Stock | Weighted | Weighted- | Aggregate | ||||||||||
Available | Options | Average | Average | Intrinsic | ||||||||||
for Grant | Outstanding | Exercise | Remaining | Value | ||||||||||
Price | Contractual | |||||||||||||
Life | ||||||||||||||
(Years) | ||||||||||||||
(In | ||||||||||||||
thousands) | ||||||||||||||
Balance — September 30, 2014 | 949,885 | 2,085,028 | $ | 2.92 | 7.02 | $ | 6,710 | |||||||
Additional shares authorized | 722,834 | — | — | |||||||||||
Granted | (689,950 | ) | 689,950 | $ | 5.57 | |||||||||
Exercised | — | (3,383 | ) | $ | 1.65 | |||||||||
Forfeited / Cancelled | 3,785 | (3,785 | ) | $ | 3.5 | |||||||||
Balance — March 31, 2015 | 986,554 | 2,767,810 | $ | 3.58 | 7.28 | $ | 8,219 | |||||||
Options exercisable — March 31, 2015 | 1,458,272 | $ | 2.67 | 5.81 | $ | 5,658 | ||||||||
Options vested and expected to vest — March 31, 2015 | 2,647,448 | $ | 3.51 | 4.23 | $ | 8,048 | ||||||||
Schedule of valuation assumptions used | ||||||||||||||
Six Months Ended | ||||||||||||||
March 31, 2015 | ||||||||||||||
Expected term (in years) | 5.27 – 6.63 | |||||||||||||
Expected volatility | 70 – 77% | |||||||||||||
Risk-free interest rate | 1.6 – 1.9% | |||||||||||||
Expected dividend rate | 0% | |||||||||||||
2014 Employee Stock Purchase Plan | ||||||||||||||
Stock-based compensation | ||||||||||||||
Schedule of valuation assumptions used | ||||||||||||||
Six Months Ended | ||||||||||||||
March 31, 2015 | ||||||||||||||
Fair value of common stock | $5.73 – 8.00 | |||||||||||||
Grant price | $4.87 – 6.80 | |||||||||||||
Expected term (in years) | 0.50 – 2.00 | |||||||||||||
Expected volatility | 47 – 51% | |||||||||||||
Risk-free interest rate | 0.07 – 0.54% | |||||||||||||
Expected dividend rate | 0% | |||||||||||||
Product_Recall_Liability_Table
Product Recall Liability (Tables) | 6 Months Ended | ||||
Mar. 31, 2015 | |||||
Product Recall Liability | |||||
Summary of changes to the product recall liability | |||||
The following table summarizes the changes to the product recall liability (in thousands): | |||||
Six months | |||||
ended | |||||
March 31, 2015 | |||||
Balance at September 30, 2014 | $ | 3,710 | |||
Payment of settlement liability | (359 | ) | |||
Balance at March 31, 2015 | $ | 3,351 | |||
Net_Income_Loss_and_Net_Income1
Net Income (Loss) and Net Income (Loss) per Share Attributable to Common Stockholders (Tables) | 6 Months Ended | |||||||||||||
Mar. 31, 2015 | ||||||||||||||
Net Income (Loss) and Net Income (Loss) per Share Attributable to Common Stockholders | ||||||||||||||
Schedule of computation of the Company's basic and diluted net income (loss) per share attributable to common stockholders | The following table sets forth the computation of the Company’s basic and diluted net income (loss) per share attributable to common stockholders during the three and six months ended March 31, 2015 and 2014 (in thousands, except share and per share data): | |||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||
March 31, | March 31, | |||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||
Basic Net income (loss) per share | ||||||||||||||
Net income (loss) attributable to common stockholders, basic and diluted | $ | (7,142 | ) | $ | 3,534 | $ | (13,901 | ) | $ | 1,436 | ||||
Less: undistributed earnings attributable to participating securities | — | (2,420 | ) | — | (1,375 | ) | ||||||||
Net income (loss) attributable to common stockholders, basic | $ | (7,142 | ) | $ | 1,114 | $ | (13,901 | ) | $ | 61 | ||||
Weighted-average shares used in computing net income (loss) per share attributable to common stockholders, basic | 18,071,320 | 2,232,300 | 18,052,809 | 2,231,049 | ||||||||||
Net income (loss) attributable to common stockholders, basic | $ | (0.40 | ) | $ | 0.5 | $ | (0.77 | ) | $ | 0.03 | ||||
Three Months Ended | Six Months Ended | |||||||||||||
March 31, | March 31, | |||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||
Fully Diluted Net income (loss) per share | ||||||||||||||
Net income (loss) attributable to common stockholders, basic and diluted | $ | (7,142 | ) | $ | 3,534 | $ | (13,901 | ) | $ | 1,436 | ||||
Less: undistributed earnings attributable to participating securities | — | (1,573 | ) | — | (1,358 | ) | ||||||||
Net income (loss) attributable to common stockholders, diluted | $ | (7,142 | ) | $ | 1,961 | $ | (13,901 | ) | $ | 78 | ||||
Weighted-average shares used in computing net income (loss) per share attributable to common stockholders, basic | 18,071,320 | 2,232,300 | 18,052,809 | 2,231,049 | ||||||||||
Effect of potentially dilutive securities: | — | — | — | — | ||||||||||
Dilutive options | — | 756,300 | — | 518,655 | ||||||||||
Assumed conversion of convertible notes | — | 2,063,989 | — | — | ||||||||||
Common stock warrants | — | 877,720 | — | 733,252 | ||||||||||
Weighted-average shares used in computing net income (loss) per share attributable to common stockholders, diluted | 18,071,320 | 5,930,309 | 18,052,809 | 3,482,956 | ||||||||||
Net income (loss) attributable to common stockholders, diluted | $ | (0.40 | ) | $ | 0.33 | $ | (0.77 | ) | $ | 0.02 | ||||
Schedule of anti-dilutive securities excluded from calculation of diluted net income (loss) per share attributable to common stockholders | ||||||||||||||
Three months ended | Six months ended | |||||||||||||
March 31, | March 31, | |||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||
Convertible preferred stock | — | 3,567,807 | — | 3,537,807 | ||||||||||
Stock options to purchase common stock | 2,767,810 | — | 2,767,810 | 37,902 | ||||||||||
Shares authorized under the 2014 ESPP | 430,952 | — | 430,952 | — | ||||||||||
Common stock warrants | 128,582 | — | 128,582 | — | ||||||||||
Preferred stock warrants | — | 170,962 | — | 136,658 | ||||||||||
Convertible notes | — | — | — | 2,090,604 | ||||||||||
Organization_Description_of_Bu2
Organization, Description of Business, and Summary of Significant Accounting Policies (Details) (USD $) | 0 Months Ended | 1 Months Ended | |||
In Millions, except Share data, unless otherwise specified | Apr. 08, 2014 | Apr. 30, 2014 | Mar. 31, 2015 | Sep. 30, 2014 | Apr. 08, 2014 |
Organization, Description of Business, and Summary of Significant Accounting Policies | |||||
Shares of common stock sold in IPO | 6,874,997 | ||||
Price at which shares of common stock were sold in IPO (in dollars per share) | $8 | ||||
Net cash proceeds from the IPO, including proceeds from the partial exercise of the underwriters' option, after underwriting discounts, commissions and issuance costs | $48.50 | ||||
Shares of common stock issued upon conversion of all outstanding shares of convertible preferred stock | 3,567,807 | ||||
Carrying value of outstanding shares of convertible preferred stock reclassified to common stock and additional paid-in capital | 57.3 | ||||
Shares of common stock issued upon conversion of convertible preferred stock and common stock | 971,440 | ||||
Number of shares repurchased | 1,077,809 | ||||
Aggregate repurchase price | $5.20 | ||||
Authorized shares (in shares) | 155,000,000 | ||||
Authorized common stock (in shares) | 150,000,000 | 150,000,000 | 150,000,000 | ||
Authorized preferred stock (in shares) | 5,000,000 | 5,000,000 | 5,000,000 | ||
Common stock, par value (in dollars per share) | $0.00 | $0.00 | $0.00 | ||
Preferred stock, par value (in dollars per share) | $0.00 | $0.00 | $0.00 |
Organization_Description_of_Bu3
Organization, Description of Business, and Summary of Significant Accounting Policies (Details 2) (USD $) | 3 Months Ended | 6 Months Ended | 0 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Sep. 30, 2014 |
Revenue Recognition | ||||||
Royalties and profit sharing | $0.60 | $1.10 | $1.20 | $3 | ||
Revenues. | Customer concentration | ||||||
Concentration of credit risk | ||||||
Number of partners | 4 | 4 | ||||
Revenues. | Customer concentration | Four partners | ||||||
Concentration of credit risk | ||||||
Concentration risk percentage | 89.00% | 92.00% | 89.00% | 94.00% | ||
Accounts receivable | Credit concentration | Four partners | ||||||
Concentration of credit risk | ||||||
Concentration risk percentage | 71.00% | 95.00% |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (Recurring basis, USD $) | Mar. 31, 2015 | Sep. 30, 2014 |
In Thousands, unless otherwise specified | ||
Level I | ||
Financial Assets | ||
Total financial assets | $33,593 | $36,019 |
Level I | Money market funds | ||
Financial Assets | ||
Total financial assets | 33,593 | 36,019 |
Total | ||
Financial Assets | ||
Total financial assets | 33,593 | 36,019 |
Total | Money market funds | ||
Financial Assets | ||
Total financial assets | $33,593 | $36,019 |
Fair_Value_Measurements_Detail1
Fair Value Measurements (Details 2) (Level III, USD $) | Mar. 31, 2015 | Sep. 30, 2014 |
In Thousands, unless otherwise specified | ||
Carrying Value | ||
Fair value measurements | ||
Long-term debt | $49,024 | $38,262 |
Total | 49,024 | 38,262 |
Total | ||
Fair value measurements | ||
Long-term debt | 49,145 | 40,357 |
Total | 49,145 | 40,357 |
Difference | ||
Fair value measurements | ||
Long-term debt | 121 | 2,095 |
Total | $121 | $2,095 |
Inventories_Details
Inventories (Details) (USD $) | Mar. 31, 2015 | Sep. 30, 2014 |
In Thousands, unless otherwise specified | ||
Inventories | ||
Raw materials | $1,700 | $1,268 |
Work in process | 850 | 898 |
Finished goods | 564 | 632 |
Total inventories, cost | 3,114 | 2,798 |
Less inventory reserves | -153 | -206 |
Total inventories, net | $2,961 | $2,592 |
LongTerm_Debt_Details
Long-Term Debt (Details) (USD $) | 0 Months Ended | 1 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Dec. 04, 2014 | Nov. 14, 2014 | Dec. 31, 2012 | Aug. 31, 2012 | Mar. 31, 2015 | Sep. 30, 2014 | Nov. 14, 2014 | Jul. 13, 2012 | |
installment | ||||||||
Long-term Debt | ||||||||
Total long-term debt | $49,024,000 | $38,262,000 | ||||||
Less current portion | 54,000 | 107,000 | ||||||
Long-term portion | 48,970,000 | 38,155,000 | ||||||
Proceeds from issuance of long-term debt | 10,000,000 | |||||||
Term loan agreement expiring on June 30, 2019 | ||||||||
Long-term Debt | ||||||||
Total long-term debt | 48,421,000 | 37,625,000 | ||||||
Unamortized discount | 66,000 | 76,000 | ||||||
Interest rate (as a percent) | 15.00% | |||||||
Face amount | 45,000,000 | 45,000,000 | 35,000,000 | |||||
Increase in principal amount | 10,000,000 | |||||||
Amount drawn | 6,000,000 | 29,000,000 | ||||||
Proceeds from issuance of long-term debt | 10,000,000 | |||||||
Number of quarterly installments for repayment of outstanding principal | 4 | |||||||
Percentage of cash payment the entity can defer by converting interest due into additional notes | 3.50% | |||||||
Portion of interest due converted into additional notes | 3,500,000 | 2,700,000 | ||||||
Principal amount outstanding | 48,500,000 | |||||||
Notes payable due in April 2017 | ||||||||
Long-term Debt | ||||||||
Total long-term debt | 81,000 | 96,000 | ||||||
Monthly payments of principal and interest | 3,000 | |||||||
Interest rate (as a percent) | 7.00% | 7.00% | ||||||
Notes payable due in November 2024 | ||||||||
Long-term Debt | ||||||||
Total long-term debt | 522,000 | 541,000 | ||||||
Monthly payments of principal and interest | $6,000 | |||||||
Interest rate (as a percent) | 7.00% | 7.00% |
Collaboration_and_Partner_Arra2
Collaboration and Partner Arrangements (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 |
Collaboration and partner arrangements | ||||
Total revenues | $11,291 | $10,717 | $21,057 | $21,185 |
Collaboration and partner arrangements | ||||
Collaboration and partner arrangements | ||||
Total revenues | 11,291 | 10,717 | 21,057 | 21,185 |
Collaboration and partner arrangements | P&G | ||||
Collaboration and partner arrangements | ||||
Total revenues | 2,539 | 2,811 | 6,216 | 5,762 |
Collaboration and partner arrangements | Teva | ||||
Collaboration and partner arrangements | ||||
Total revenues | 3,922 | 2,784 | 5,826 | 6,487 |
Collaboration and partner arrangements | Par | ||||
Collaboration and partner arrangements | ||||
Total revenues | 2,611 | 3,405 | 4,863 | 6,528 |
Collaboration and partner arrangements | Agile | ||||
Collaboration and partner arrangements | ||||
Total revenues | 980 | 851 | 1,867 | 1,217 |
Collaboration and partner arrangements | Other | ||||
Collaboration and partner arrangements | ||||
Total revenues | $1,239 | $866 | $2,285 | $1,191 |
Warrants_Details
Warrants (Details) (Common stock warrants, USD $) | 0 Months Ended |
Mar. 31, 2015 | |
Warrants | |
Warrants outstanding (in shares) | 128,582 |
Weighted-average exercise price (in dollars per share) | 1.77 |
Maximum | |
Warrants | |
Warrant term | 5 years |
Convertible_Preferred_Stock_Co1
Convertible Preferred Stock, Common Stock and Stockholders' Equity (Deficit) (Details) (USD $) | Mar. 31, 2015 | Sep. 30, 2014 | Apr. 08, 2014 |
Preferred Stock | |||
Authorized preferred stock (in shares) | 5,000,000 | 5,000,000 | 5,000,000 |
Preferred stock, par value (in dollars per share) | $0.00 | $0.00 | $0.00 |
Preferred stock outstanding (in shares) | 0 | 0 | |
Common Stock | |||
Common shares authorized | 150,000,000 | 150,000,000 | 150,000,000 |
Common shares par value (in dollars per share) | $0.00 | $0.00 | $0.00 |
Common stock, shares outstanding | 18,072,866 | 18,003,883 |
StockBased_Compensation_Detail
Stock-Based Compensation (Details) (USD $) | 0 Months Ended | 6 Months Ended | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Jan. 16, 2015 | Mar. 20, 2014 | Mar. 31, 2015 | Sep. 30, 2014 |
Stock-based compensation | ||||
Number of plans | 4 | 4 | ||
2014 Plan | ||||
Stock-based compensation | ||||
Term of the plan | 10 years | |||
Number of shares of common stock initially reserved under plan for issuance to employees | 1,000,000 | |||
Maximum annual increase in number of shares issuable by the plan, as a percentage of shares outstanding as of the preceding December 31 | 4.00% | |||
Shares Available for Grant | ||||
Additional shares authorized | 722,834 | |||
Corium Plans | ||||
Stock-based compensation | ||||
Vesting period | 4 years | |||
Assumptions used in estimating weighted average fair value of the options granted | ||||
Expected volatility, minimum | 70.00% | |||
Expected volatility, maximum | 77.00% | |||
Risk-free interest rate, minimum | 1.60% | |||
Risk-free interest rate, maximum | 1.90% | |||
Expected dividend rate (as a percent) | 0.00% | |||
Corium Plans | Minimum | ||||
Assumptions used in estimating weighted average fair value of the options granted | ||||
Expected term (in years) | 5 years 3 months 7 days | |||
Corium Plans | Maximum | ||||
Stock-based compensation | ||||
Term of the plan | 10 years | |||
Assumptions used in estimating weighted average fair value of the options granted | ||||
Expected term (in years) | 6 years 7 months 17 days | |||
Corium Plans | Stock options | ||||
Shares Available for Grant | ||||
Balance at the beginning of the period (in shares) | 949,885 | |||
Additional shares authorized | 722,834 | |||
Granted (in shares) | -689,950 | |||
Forfeited / Cancelled (in shares) | 3,785 | |||
Balance at the end of the period (in shares) | 986,554 | 949,885 | ||
Stock Options Outstanding | ||||
Balance at the beginning of the period (in shares) | 2,085,028 | |||
Granted (in shares) | 689,950 | |||
Exercised (in shares) | -3,383 | |||
Forfeited / Cancelled (in shares) | -3,785 | |||
Balance at the end of the period (in shares) | 2,767,810 | 2,085,028 | ||
Options exercisable at the end of the period (in shares) | 1,458,272 | |||
Options vested and expected to vest at the end of the period (in shares) | 2,647,448 | |||
Weighted Average Exercise Price | ||||
Balance at the beginning of the period (in dollars per share) | 2.92 | |||
Granted (in dollars per share) | 5.57 | |||
Exercised (in dollars per share) | 1.65 | |||
Forfeited / Cancelled (in dollars per share) | 3.5 | |||
Balance at the end of the period (in dollars per share) | 3.58 | $2.92 | ||
Options exercisable at the end of the period (in dollars per share) | 2.67 | |||
Options vested and expected to vest at the end of the period (in dollars per share) | 3.51 | |||
Weighted Average Remaining Contractual Life | ||||
Balance at the end of the period | 7 years 3 months 11 days | 7 years 7 days | ||
Options exercisable at the end of the period | 5 years 9 months 22 days | |||
Options vested and expected to vest at the end of the period | 4 years 2 months 23 days | |||
Aggregate Intrinsic Value | ||||
Balance at the end of the period | 8,219 | $6,710 | ||
Options exercisable at the end of the period | 5,658 | |||
Options vested and expected to vest at the end of the period | 8,048 | |||
Additional disclosures | ||||
Exercise price, minimum(in dollars per share) | 2.12 | |||
Exercise price, maximum(in dollars per share) | 8.18 | |||
StrataGent Plan | Stock options | StrataGent, Inc. | ||||
Stock-based compensation | ||||
Additional shares available for grant assumed by the entity | 0 | |||
Shares Available for Grant | ||||
Balance at the end of the period (in shares) | 0 |
StockBased_Compensation_Detail1
Stock-Based Compensation (Details 2) (USD $) | 3 Months Ended | 6 Months Ended | 0 Months Ended | ||||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | Jan. 16, 2015 | Mar. 20, 2014 | Sep. 30, 2014 | |
item | |||||||
Stock-Based Compensation | |||||||
Stock-based compensation expense | $676,000 | $194,000 | $1,364,000 | $250,000 | |||
Common stock, shares issued | 18,072,866 | 18,072,866 | 18,003,883 | ||||
2014 Employee Stock Purchase Plan | |||||||
Stock-Based Compensation | |||||||
Number of shares of common stock initially reserved under plan for issuance to employees | 310,000 | ||||||
Shares available for issuance | 430,952 | 430,952 | |||||
Term of the plan | 10 years | ||||||
Maximum annual increase in number of shares issuable by the plan, as a percentage of shares outstanding as of the preceding December 31 | 1.00% | ||||||
Maximum number of shares to be issued over the term of the plan | 4,000,000 | ||||||
Additional shares authorized | 181,994 | ||||||
Offering period | 24 months | ||||||
Number of purchase windows during each offering period | 4 | ||||||
Period of purchase windows during each offering period | 6 months | ||||||
Purchase price of common stock of the lower of the fair market value of the Company's common stock (as a percent) | 85.00% | ||||||
Stock-based compensation expense | $111,000 | $275,000 | |||||
Shares issued during the period | 61,042 | ||||||
Assumptions used in estimating weighted average fair value of the shares expected to be purchased | |||||||
Expected volatility, minimum | 47.00% | ||||||
Expected volatility, maximum | 51.00% | ||||||
Risk-free interest rate, minimum | 0.07% | ||||||
Risk-free interest rate, maximum | 0.54% | ||||||
Expected dividend rate (as a percent) | 0.00% | ||||||
Expected term, window one (in months) | 6 months | ||||||
Expected term, window two (in months) | 12 months | ||||||
Expected term, window three (in months) | 18 months | ||||||
Expected term, window four (in months) | 24 months | ||||||
2014 Employee Stock Purchase Plan | Minimum | |||||||
Assumptions used in estimating weighted average fair value of the shares expected to be purchased | |||||||
Fair value of common stock | $5.73 | $5.73 | |||||
Grant Price | $4.87 | ||||||
Expected term (in years) | 6 months | ||||||
2014 Employee Stock Purchase Plan | Maximum | |||||||
Assumptions used in estimating weighted average fair value of the shares expected to be purchased | |||||||
Fair value of common stock | $8 | $8 | |||||
Grant Price | $6.80 | ||||||
Expected term (in years) | 2 years |
StockBased_Compensation_Detail2
Stock-Based Compensation (Details 3) (USD $) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | |
Employee stock-based compensation expense | ||||
Stock-based compensation | $676,000 | $194,000 | $1,364,000 | $250,000 |
Additional Disclosure | ||||
Unrecognized employee compensation cost, net of estimated forfeitures | 5,200,000 | 5,200,000 | ||
Weighted-average period over which unrecognized compensation cost is expected to be recognized | 2 years 10 months 24 days | |||
Cost of product revenues | ||||
Employee stock-based compensation expense | ||||
Stock-based compensation | 82,000 | 5,000 | 185,000 | 11,000 |
Cost of contract research and development revenues | ||||
Employee stock-based compensation expense | ||||
Stock-based compensation | 46,000 | 5,000 | 103,000 | 9,000 |
Research and development | ||||
Employee stock-based compensation expense | ||||
Stock-based compensation | 143,000 | 16,000 | 268,000 | 23,000 |
General and administrative | ||||
Employee stock-based compensation expense | ||||
Stock-based compensation | $405,000 | $168,000 | $808,000 | $207,000 |
Product_Recall_Liability_Detai
Product Recall Liability (Details) (USD $) | 6 Months Ended | 36 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Sep. 30, 2010 | Oct. 31, 2012 |
item | |||
Product recall liability | |||
Revised combined remaining liability | $3,351 | $5,000 | |
Changes to the product recall liability | |||
Beginning balance | 3,710 | 5,000 | |
Payment of settlement liability | -359 | ||
Ending balance | $3,351 | $5,000 | |
Actavis | |||
Product recall liability | |||
Number of voluntary recalls of certain lots and strengths of Fentanyl TDS | 2 |
Net_Income_Loss_and_Net_Income2
Net Income (Loss) and Net Income (Loss) per Share Attributable to Common Stockholders (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 |
Basic Net income (loss) per share | ||||
Net income (loss) attributable to common stockholders, basic and diluted | ($7,142) | $3,534 | ($13,901) | $1,436 |
Less: undistributed earnings attributable to participating securities | -2,420 | -1,375 | ||
Net Income (loss) attributable to common stockholders, basic | -7,142 | 1,114 | -13,901 | 61 |
Weighted average shares used in computing net income (loss) per share attributable to common stockholders, basic | 18,071,320 | 2,232,300 | 18,052,809 | 2,231,049 |
Net income (loss) attributable to common stockholders, basic (in dollars per share) | ($0.40) | $0.50 | ($0.77) | $0.03 |
Fully Diluted Net income (loss) per share | ||||
Net income (loss) attributable to common stockholders, basic and diluted | -7,142 | 3,534 | -13,901 | 1,436 |
Less: undistributed earnings attributable to participating securities | -1,573 | -1,358 | ||
Net income (loss) attributable to common stockholders, diluted | ($7,142) | $1,961 | ($13,901) | $78 |
Weighted average shares used in computing net income (loss) per share attributable to common stockholders, basic (in shares) | 18,071,320 | 2,232,300 | 18,052,809 | 2,231,049 |
Effect of potentially dilutive securities | ||||
Dilutive options (in shares) | 756,300 | 518,655 | ||
Assumed conversion of convertible notes (in shares) | 2,063,989 | |||
Common stock warrants (in shares) | 877,720 | 733,252 | ||
Weighted average shares used in computing net income (loss) per share attributable to common stockholders, basic | 18,071,320 | 5,930,309 | 18,052,809 | 3,482,956 |
Net income (loss) attributable to common stockholders, diluted (in dollars per share) | ($0.40) | $0.33 | ($0.77) | $0.02 |
Convertible Preferred Stock | ||||
Anti-dilutive securities excluded from calculation of diluted net income (loss) per share attributable to common stockholders | ||||
Number of anti-dilutive securities excluded from calculation of diluted net income (loss) per share attributable to common stockholders | 3,567,807 | 3,537,807 | ||
Stock options | ||||
Anti-dilutive securities excluded from calculation of diluted net income (loss) per share attributable to common stockholders | ||||
Number of anti-dilutive securities excluded from calculation of diluted net income (loss) per share attributable to common stockholders | 2,767,810 | 2,767,810 | 37,902 | |
Shares authorized under the 2014 ESPP | ||||
Anti-dilutive securities excluded from calculation of diluted net income (loss) per share attributable to common stockholders | ||||
Number of anti-dilutive securities excluded from calculation of diluted net income (loss) per share attributable to common stockholders | 430,952 | 430,952 | ||
Common stock warrants | ||||
Anti-dilutive securities excluded from calculation of diluted net income (loss) per share attributable to common stockholders | ||||
Number of anti-dilutive securities excluded from calculation of diluted net income (loss) per share attributable to common stockholders | 128,582 | 128,582 | ||
Preferred stock warrants | ||||
Anti-dilutive securities excluded from calculation of diluted net income (loss) per share attributable to common stockholders | ||||
Number of anti-dilutive securities excluded from calculation of diluted net income (loss) per share attributable to common stockholders | 170,962 | 136,658 | ||
Convertible notes | ||||
Anti-dilutive securities excluded from calculation of diluted net income (loss) per share attributable to common stockholders | ||||
Number of anti-dilutive securities excluded from calculation of diluted net income (loss) per share attributable to common stockholders | 2,090,604 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 6 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 |
Income Taxes | |
Income tax expense | $2 |
Segment_and_EnterpriseWide_Inf1
Segment and Enterprise-Wide Information (Details) | 6 Months Ended |
Mar. 31, 2015 | |
item | |
Segment and Enterprise-Wide Information | |
Number of business activities | 1 |
Number of segment managers held accountable for operations, or operating results for levels or components | 0 |