Vaxart (VXRT) 10-Q 10 May 16 2016 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Mar. 31, 2016	May. 06, 2016
Entity Registrant Name	Aviragen Therapeutics, Inc.
Entity Central Index Key	72,444
Trading Symbol	avir
Current Fiscal Year End Date	--06-30
Entity Filer Category	Accelerated Filer
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Entity Common Stock, Shares Outstanding (in shares)		38,640,487
Document Type	10-Q
Document Period End Date	Mar. 31, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Millions	Mar. 31, 2016	Jun. 30, 2015
BARDA [Member]
Current liabilities:
Contract payable (BARDA)		$ 1
Cash and cash equivalents	$ 30.6	44.7
Short-term investments	18.4	12.9
Accounts receivable, net of allowance	10.1	12.6
Prepaid and other current assets	1.4	0.6
Total current assets	60.5	70.8
Long-term investments	1	7.9
Property and equipment, net	$ 0.4	0.2
Deferred tax asset		0.5
Total non-current assets	$ 1.4	8.6
Total assets	61.9	79.4
Accounts payable	3.7	1.9
Accrued expenses	4.5	5.4
Short term note payable	$ 0.5	0.2
Deferred tax liability		0.5
Total current liabilities	$ 8.7	9
Non-current liabilities:
Long-term note payable, net of current portion	0.3	0.8
Other liabilities, net of current portion	0.2	0.1
Total liabilities	$ 9.2	$ 9.9
Commitments and contingencies
Stockholders’ equity:
Common stock, $0.10 par value: 200,000,000 shares authorized; 38,640,487 and 38,609,086 shares issued and outstanding at March 31, 2016 and June 30, 2015, respectively	$ 3.9	$ 3.9
Additional paid-in capital	157.2	155.6
Accumulated other comprehensive income	18.9	18.9
Accumulated deficit	(127.3)	(108.9)
Total stockholders’ equity	52.7	69.5
Total liabilities and stockholders’ equity	$ 61.9	$ 79.4

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares	Mar. 31, 2016	Jun. 30, 2015
Common Stock, Par value (in dollars per share)	$ 0.10	$ 0.10
Common Stock, Shares authorized (in shares)	200,000,000	200,000,000
Common Stock, Shares Issued (in shares)	38,640,487	38,609,086
Common stock, shares outstanding (in shares)	38,640,487	38,609,086

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Revenue:
Royalty revenue and milestones	$ 5.3	$ 5.5	$ 8.8	$ 12
Revenue from services		0.4		8.5
Total revenue	$ 5.3	5.9	$ 8.8	20.5
Operating expense:
Cost of revenue		0.3		3.6
Research and development	$ 8.5	4.8	$ 20.4	14.5
General and administrative	2.3	3.2	6.7	8.2
Foreign exchange (gain) loss	$ (0.3)	(3.7)	$ 0.2	(6.5)
Loss on disposal of assets		0.2		0.2
Total operating expense	$ 10.5	4.8	$ 27.3	20
Income (loss) from operations	$ (5.2)	1.1	(18.5)	0.5
Non-operating income:
Interest income		0.1	0.1	0.3
Total non-operating income		0.1	0.1	0.3
Income (loss) before tax	$ (5.2)	$ 1.2	$ (18.4)	$ 0.8
Income tax benefit
Net income (loss)	$ (5.2)	$ 1.2	$ (18.4)	$ 0.8
Basic net income (loss) per share (in dollars per share)	$ (0.14)	$ 0.03	$ (0.48)	$ 0.02
Diluted net income (loss) per share (in dollars per share)	$ (0.14)	$ 0.03	$ (0.48)	$ 0.02
Basic weighted-average shares outstanding (in shares)	38,640,254	35,105,978	38,633,786	35,102,609
Diluted weighted-average shares outstanding (in shares)	38,640,254	35,143,178	38,633,786	35,127,013
Comprehensive (loss) income:
Net income (loss)	$ (5.2)	$ 1.2	$ (18.4)	$ 0.8
Exchange differences on translation of foreign operations		$ (2.7)		(7.7)
Change in fair value of available for sale investments				(0.1)
Total comprehensive income (loss)	$ (5.2)	$ (1.5)	$ (18.4)	$ (7)

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity (Unaudited) - 9 months ended Mar. 31, 2016 - USD ($) $ in Millions	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	AOCI Attributable to Parent [Member]	Total
Balances (in shares) at Jun. 30, 2015	38,609,086				38,609,086
Balances at Jun. 30, 2015	$ 3.9	$ 155.6	$ (108.9)	$ 18.9	$ 69.5
Net income (loss)			(18.4)		(18.4)
Restricted stock units, net (in shares)	31,401
Share-based compensation		$ 1.6			$ 1.6
Balances (in shares) at Mar. 31, 2016	38,640,487				38,640,487
Balances at Mar. 31, 2016	$ 3.9	$ 157.2	$ (127.3)	$ 18.9	$ 52.7

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions	9 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Cash flows from operating activities:
Net income (loss)	$ (18.4)	$ 0.8
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		1.1
Share-based compensation	$ 1.6	1.6
Loss on disposal of assets		0.2
Change in operating assets and liabilities:
Accounts receivables	$ 2.5	5.8
Prepaid expenses and other current assets	(0.8)	(0.2)
Accounts payable and accrued expenses	(0.1)	(19.1)
Net cash used in operating activities	(15.2)	(9.8)
Cash flows from investing activities:
Purchases of short and long-term investments	(13.5)	$ (9.9)
Maturity of short-term investments	$ 14.9
Call redemption of long-term investments		$ 6.9
Proceeds from sale of assets		0.4
Purchases of property and equipment	$ (0.1)	(0.1)
Net cash provided by (used in) investing activities	1.3	$ (2.7)
Cash flows from financing activities:
Payment on note payable	(0.2)
Net cash used in financing activities	(0.2)
Decrease in cash and cash equivalents	(14.1)	$ (12.5)
Cash and cash equivalents at beginning of period	$ 44.7	81.7
Effects of exchange rate movements on cash and cash equivalents		(7.7)
Cash and cash equivalents at end of period	$ 30.6	$ 61.5

Note 1 - Company Overview

Note 1 - Company Overview	9 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Nature of Operations [Text Block]	(1) Company Overview Aviragen Therapeutics, Inc., together with its wholly owned subsidiaries (“Aviragen”, or the “Company”) is a biopharmaceutical company focused on the discovery and development of direct-acting antivirals to treat infections that have limited therapeutic options and affect a significant number of patients globally. The Company has three product candidates in active clinical development: These include vapendavir, an oral treatment for human rhinovirus (“HRV”) upper respiratory infections in moderate-to-severe asthmatics currently being evaluated in the Phase 2b SPIRITUS trial; BTA585, an oral fusion protein inhibitor that has received Fast Track designation by the U.S. Food and Drug Administration (“FDA”), in Phase 2 development for the treatment and prevention of respiratory syncytial virus (“RSV”) infections; and BTA074, a topical antiviral treatment in Phase 2 development for condyloma caused by human papillomavirus types 6 & 11. The Company was incorporated in the state of Delaware in 1969 and its corporate headquarters are located in Alpharetta, Georgia. Although several of the Company’s influenza product candidates have been successfully developed and commercialized to-date by other larger pharmaceutical companies under collaboration, license or commercialization agreements with the Company, it has not independently developed or received regulatory approval for any product candidate, and the Company does not currently have any sales, marketing or commercial capabilities. Therefore, it is possible that the Company may not successfully derive any significant product revenues from any product candidates that it is developing now, or may develop in the future. The Company expects to incur losses for the foreseeable future as it intends to support the clinical and preclinical development of its product candidates. The Company plans to continue to finance its operations with (i) existing cash, cash equivalents and investments, (ii) proceeds from existing or potential future royalty-bearing licenses or collaborative research and development arrangements, (iii) future equity and/or asset or debt financings, or (iv) other financing arrangements. The Company’s ability to continue to support its operations is dependent, in the near-term, upon managing its cash resources, continuing to receive royalty revenue under existing licenses, entering into future collaboration, license or commercialization agreements, the successful development of its product candidates, executing future financings and ultimately, upon the approval of its products for sale and achieving positive cash flows from operations on a consistent basis. There can be no assurance that additional capital or funds will be available on terms acceptable to the Company, if at all, that the Company will be able to enter into collaboration, license or commercialization agreements in the future, or that the Company will ever generate significant product revenue and become operationally profitable on a consistent basis.

Note 2 - Basis of Presentation

Note 2 - Basis of Presentation	9 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Basis of Presentation and Significant Accounting Policies [Text Block]	(2) Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. All material adjustments considered necessary for a fair presentation have been included. Certain information and footnote disclosure normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to instructions, rules and regulations prescribed by the U.S. Securities and Exchange Commission (“SEC”). Except as disclosed herein, there has been no material change in the information disclosed in the notes to the condensed consolidated financial statements included in the Company’s Annual Report on Form 10-K that was filed with the SEC on September 11, 2015. The unaudited interim condensed consolidated financial statements include the accounts of the Company and all of its wholly owned subsidiaries. All inter-company transactions and balances are eliminated in consolidation. Operating results for the three months ended March 31, 2016 are not necessarily indicative of those in future quarters or the annual results that may be expected for the Company’s fiscal year ending June 30, 2016. For a more complete discussion of the Company’s significant accounting policies and other information, this report should be read in conjunction with the consolidated financial statements for the fiscal year ended June 30, 2015 included in the Company’s Annual Report on Form 10-K that was filed with the SEC on September 11, 2015. Notes to the Condensed Consolidated Statements (unaudited) The Company’s significant accounting policies have not changed since June 30, 2015, except as outlined below: Recent Accounting Standards In November 2015, the Financial Accounting Standards Board (“FASB”) issued guidance on the balance sheet classification of deferred taxes which eliminates the current requirement to present deferred tax assets and liabilities as current and noncurrent in a classified balance sheet and now requires entities to classify all deferred tax assets and liabilities as noncurrent. This guidance is effective for the Company’s fiscal year ended September 2018. Early adoption is permitted. The Company prospectively adopted the guidance immediately which resulted in the offset of $0.5 million of deferred tax assets and liabilities from the condensed consolidated balance sheet at December 31, 2015. The Company did not make any changes to prior periods. In August 2014, the FASB issued authoritative accounting guidance related to management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. Management’s evaluation should be based on relevant conditions and events that are known and reasonably knowable at the date that the financial statements are issued. In doing so, the amendments should reduce diversity in the timing and content of footnote disclosures. This guidance is effective for public and non-public entities for annual periods ending after December 15, 2016, and interim periods thereafter. Early adoption is permitted. The Company is currently assessing the expected impact that this Accounting Standards update will have on its consolidated financial statements. In May 2014, the FASB issued authoritative accounting guidance related to revenue from contracts with customers. This guidance is a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. This guidance is effective for annual reporting periods beginning after December 15, 2016 and early adoption is not permitted. The Company will adopt this guidance on July 1, 2017. Companies may use either a full retrospective or a modified retrospective approach to adopt this guidance. The Company is evaluating which transition approach to use and its impact, if any, on its consolidated financial statements. In January 2016, the FASB issued guidance related to financial instruments - overall recognition and measurement of financial assets and financial liabilities. The guidance enhances the reporting model for financial instruments, which includes amendments to address aspects of recognition, measurement, presentation and disclosure. The update to the standard is effective for public companies for interim and annual periods beginning after December 15, 2017. The Company is currently evaluating the impact that the standard will have on the consolidated financial statements and will adopt this standard as of January 1, 2018. In February 2016, the FASB issued new guidance on leases. This guidance replaces the prior lease accounting guidance in its entirety. The underlying principle of the new standard is the recognition of lease assets and lease liabilities by lessees for substantially all leases, with an exception for leases with terms of less than twelve months. The standard also requires additional quantitative and qualitative disclosures. The guidance is effective for interim and annual reporting periods beginning after December 15, 2018, and early adoption is permitted. The standard requires a modified retrospective approach, which includes several optional practical expedients. The Company is currently evaluating the impact that this guidance will have on the consolidated financial statements. Notes to the Condensed Consolidated Financial Statements (unaudited) In March 2016, the FASB issued guidance on compensation - stock compensation: improvements to employee share-based payment accounting as part of the FASB simplification initiative. The new standard provides for changes to accounting for stock compensation including 1) excess tax benefits and tax deficiencies related to share based payment awards will be recognized as income tax expense in the reporting period in which they occur; 2) excess tax benefits will be classified as an operating activity in the statement of cash flow; 3) the option to elect to estimate forfeitures or account for them when they occur; and 4) increase tax withholding requirements threshold to qualify for equity classification. The guidance is effective for public companies for annual periods, and interim periods within those annual periods, beginning after December 15, 2016, and early adoption is permitted. The Company is currently evaluating the impact that the guidance will have on the consolidated financial statements.

Note 3 - Fair Value Measurement

Note 3 - Fair Value Measurements	9 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Fair Value Disclosures [Text Block]	(3) Fair Value Measurements A fair value hierarchy has been established that requires the Company to maximize the use of observable inputs, where available, and minimize the use of unobservable inputs when measuring fair value. The fair value hierarchy describes three levels of inputs that may be used to measure fair value: Level 1 Quoted prices in active markets for identical assets or liabilities. Level 2 Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The following table sets forth the financial assets and liabilities that were measured at fair value on a recurring basis at March 31, 2016 and June 30, 2015, by level within the fair value hierarchy. The assets and liabilities measured at fair value are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company’s long-term investments have been classified as Level 2, which have been initially valued at the transaction price and subsequently revalued, at the end of each reporting period, utilizing a third party pricing service. The pricing service utilizes industry standard valuation models and observable market inputs to determine value that include surveying the bond dealer community, obtaining benchmark quotes, incorporating relevant trade data, and updating spreads daily. There have been no transfers of assets or liabilities between the fair value measurement classifications. Quoted Prices in Active Markets for Significant Other Significant (in millions) Identical Assets Observable Inputs Unobservable March 31 , 201 6 Total (Level 1) (Level 2) Inputs (Level 3) Cash equivalents $ 26.2 $ 25.5 $ 0.7 $ — Short-term investments available-for-sale 18.4 10.9 7.5 — Long-term investments available-for-sale 1.0 — 1.0 — Total $ 45.6 $ 36.4 $ 9.2 $ — Aviragen Therapeutics, Inc. Notes to the Condensed Consolidated Financial Statements (unaudited) (for the quarterly period ended March 31, 2016) Quoted Prices in Active Markets for Significant Other Significant (in millions) Identical Assets Observable Inputs Unobservable June 30, 2015 Total (Level 1) (Level 2) Inputs (Level 3) Cash equivalents $ 6.3 $ 6.3 $ — $ — Short-term investments available-for-sale 12.9 12.9 — — Long-term investments available-for-sale 7.9 — 7.9 — Total $ 27.1 $ 19.2 $ 7.9 $ — Cash equivalents consist primarily of money market funds. Short and long investments consist of U.S. agency securities, certificates of deposit, corporate securities and U.S. Treasury securities, classified as available-for-sale and have maturities greater than 365 days from the date of acquisition. The following table shows the unrealized gains and losses and fair values for those investments as of March 31, 2015 and June 30, 2015 aggregated by major security type: (in millions) Unrealized Unrealized March 31 , 201 6 At Cost Gains (Losses) At Fair Value Money market funds $ 25.5 $ — $ — $ 25.5 Debt securities of U.S. government agencies 2.0 — — 2.0 U.S. Treasury securities 7.0 — — 7.0 Corporate notes 3.9 — — 3.9 Certificates of deposit 7.2 — — 7.2 Total $ 45.6 $ — $ — $ 45.6 (in millions) Unrealized Unrealized June 30, 2015 At Cost Gains (Losses) At Fair Value Money market funds $ 6.3 $ — $ — $ 6.3 Debt securities of U.S. government agencies 6.5 — — 6.5 U.S. Treasury securities 9.6 — (0.1 ) 9.5 Corporate notes 2.9 — — 2.9 Certificates of deposit 1.9 — — 1.9 Total $ 27.2 $ — $ (0.1 ) $ 27.1 As of March 31, 2016 and June 30, 2015, the Company had investments in an unrealized loss position below material disclosure thresholds in the table above. The Company has determined that the unrealized losses on these investments are temporary in nature and expects the security to mature at its stated maturity principal. All available-for-sale securities held at March 31, 2016, will mature within a two year period. The fair value of cash, accounts receivable, accounts payable and accrued liabilities approximate their carrying value because of the short-term nature of these financial instruments respectively, at March 31, 2016 and June 30, 2015 . The fair value of the Company’s short and long term note payable, which is measured using Level 2 inputs, approximates book value, at March 31, 2016 and June 30, 2015.

Note 4 - Accrued and Other Curr

Note 4 - Accrued and Other Current Liabilities	9 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Accounts Payable, Accrued Liabilities, and Other Liabilities Disclosure, Current [Text Block]	(4) Accrued and Other Current Liabilities Accrued expenses consist of the following (in millions): March 31 , 201 6 June 30, 2015 Professional fees $ 0.7 $ 0.8 Salary and benefits 0.6 1.6 Research and development expenses 3.1 1.7 Other accrued expenses 0.1 1.3 Total accrued expenses and other liabilities $ 4.5 $ 5.4

Note 5 - Net Income (Loss) Per

Note 5 - Net Income (Loss) Per Share	9 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Earnings Per Share [Text Block]	(5) Net Income (Loss) per share Basic and diluted net income (loss) income per share has been computed based on net loss and the weighted-average number of common shares outstanding during the applicable period. For diluted net income (loss) per share, common stock equivalents (shares of common stock issuable upon the exercise of stock options and unvested restricted stock units) are excluded from the calculation as their inclusion would be anti-dilutive. The Company has excluded all anti-dilutive share-based awards to purchase common stock in periods indicating a loss, as their effect is anti-dilutive. Aviragen Therapeutics, Inc. Notes to the Condensed Consolidated Financial Statements (unaudited) (for the quarterly period ended March 31, 2016) The following tables set forth the computation of historical basic and diluted net income (loss) per share. Three Months Ended March 31 , 201 6 201 5 Net income (loss) (in millions) $ (5.2 ) $ 1.2 Weighted-average shares outstanding 38,640,254 35,105,978 Dilutive effect of restricted stock and stock options - 37,200 Shares used to compute diluted earnings per share 38,640,254 35,143,178 Basic net income (loss) per share $ (0.14 ) $ 0.03 Diluted net income (loss) income per share $ (0.14 ) $ 0.03 Number of anti-dilutive share-based awards excluded from computation 4,639,959 3,333,392 Nine Months Ended , 201 6 2015 Net income (loss) (in millions) $ (18.4 ) $ 0.8 Weighted-average shares outstanding 38,633,786 35,102,609 Dilutive effect of restricted stock and stock options - 24,404 Shares used to compute diluted earnings per share 38,633,786 35,127,013 Basic net income (loss) per share $ (0.48 ) $ 0.02 Diluted net income (loss) per share $ (0.48 ) $ 0.02 Number of anti-dilutive share-based awards excluded from computation 4,639,959 3,346,188

Note 6 - Licenses, Royalty Coll

Note 6 - Licenses, Royalty Collaborative and Contractual Arrangements	9 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Collaborative Arrangement Disclosure [Text Block]	(6) Licenses, Royalty Collaborative and Contractual Arrangements Royalty agreements The Company entered into a royalty-bearing research and license agreement with GlaxoSmithKline (“GSK”) in 1990 for the development and commercialization of zanamivir, a neuraminidase inhibitor (“NI”) marketed by GSK as Relenza ® ® ® ® ® ® ® ® Aviragen Therapeutics, Inc. Notes to the Condensed Consolidated Financial Statements (unaudited) (for the quarterly period ended March 31, 2016) The Company also generates royalty revenue from the sale of Inavir ® ® ® Collaborative and contract arrangements In March 2011, the Company’s wholly owned subsidiary, Biota Scientific Management Pty Ltd., was awarded a contract by BARDA for the late-stage development of LANI on a cost-plus-fixed-fee basis. BARDA is part of the U.S. Office of the Assistant Secretary for Preparedness and Response ("ASPR") within the U.S. Department of Health and Human Services ("HHS"). The BARDA contract was designed to fund and provide the Company with all technical and clinical data and U.S. based manufacturing to support the filing of a U.S. new drug application (“NDA”) with the FDA for LANI. On May 7, 2014 HHS/ASPR/BARDA notified the Company of its decision to terminate this contract for the convenience of the U.S. Government. The Company completed and finalized all activities related to the settlement and close out of this contract in June 2015. Revenues from and costs associated with the contract are recorded and recognized on a gross basis in the consolidated statement of operations. The following tables summarize the key components of the Company’s revenues (in millions): Three Months Ended March 31 , 201 6 201 5 (in millions) Royalty revenue – Relenza ® $ 1.7 $ 3.0 – Inavir ® 3.6 2.5 Revenue from services - 0.4 Total revenue $ 5.3 $ 5.9 Nine Months Ended March 31, 2016 2015 (in millions) Royalty revenue – Relenza ® $ 4.5 $ 7.3 – Inavir ® 4.3 4.8 Revenue from services - 8.4 Total revenue $ 8.8 $ 20.5

Note 7 - Subsequent Event

Note 7 - Subsequent Event	9 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Subsequent Events [Text Block]	( 7 ) Subsequent Event On April 22, 2016, the Company and subsidiaries (collectively the “Company”) entered into a Royalty Interest Acquisition Agreement (“Agreement”) with HealthCare Royalty Partners III, L.P. (“HC Royalty”). Under the Agreement, HC Royalty made a $20 million cash payment to the Company in consideration for acquiring from the Company certain royalty rights (“Royalty Rights”) related to the approved product Inavir ®

Significant Accounting Policies

Significant Accounting Policies (Policies)	9 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
New Accounting Pronouncements, Policy [Policy Text Block]	Recent Accounting Standards In November 2015, the Financial Accounting Standards Board (“FASB”) issued guidance on the balance sheet classification of deferred taxes which eliminates the current requirement to present deferred tax assets and liabilities as current and noncurrent in a classified balance sheet and now requires entities to classify all deferred tax assets and liabilities as noncurrent. This guidance is effective for the Company’s fiscal year ended September 2018. Early adoption is permitted. The Company prospectively adopted the guidance immediately which resulted in the offset of $0.5 million of deferred tax assets and liabilities from the condensed consolidated balance sheet at December 31, 2015. The Company did not make any changes to prior periods. In August 2014, the FASB issued authoritative accounting guidance related to management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. Management’s evaluation should be based on relevant conditions and events that are known and reasonably knowable at the date that the financial statements are issued. In doing so, the amendments should reduce diversity in the timing and content of footnote disclosures. This guidance is effective for public and non-public entities for annual periods ending after December 15, 2016, and interim periods thereafter. Early adoption is permitted. The Company is currently assessing the expected impact that this Accounting Standards update will have on its consolidated financial statements. In May 2014, the FASB issued authoritative accounting guidance related to revenue from contracts with customers. This guidance is a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. This guidance is effective for annual reporting periods beginning after December 15, 2016 and early adoption is not permitted. The Company will adopt this guidance on July 1, 2017. Companies may use either a full retrospective or a modified retrospective approach to adopt this guidance. The Company is evaluating which transition approach to use and its impact, if any, on its consolidated financial statements. In January 2016, the FASB issued guidance related to financial instruments - overall recognition and measurement of financial assets and financial liabilities. The guidance enhances the reporting model for financial instruments, which includes amendments to address aspects of recognition, measurement, presentation and disclosure. The update to the standard is effective for public companies for interim and annual periods beginning after December 15, 2017. The Company is currently evaluating the impact that the standard will have on the consolidated financial statements and will adopt this standard as of January 1, 2018. In February 2016, the FASB issued new guidance on leases. This guidance replaces the prior lease accounting guidance in its entirety. The underlying principle of the new standard is the recognition of lease assets and lease liabilities by lessees for substantially all leases, with an exception for leases with terms of less than twelve months. The standard also requires additional quantitative and qualitative disclosures. The guidance is effective for interim and annual reporting periods beginning after December 15, 2018, and early adoption is permitted. The standard requires a modified retrospective approach, which includes several optional practical expedients. The Company is currently evaluating the impact that this guidance will have on the consolidated financial statements. In March 2016, the FASB issued guidance on compensation - stock compensation: improvements to employee share-based payment accounting as part of the FASB simplification initiative. The new standard provides for changes to accounting for stock compensation including 1) excess tax benefits and tax deficiencies related to share based payment awards will be recognized as income tax expense in the reporting period in which they occur; 2) excess tax benefits will be classified as an operating activity in the statement of cash flow; 3) the option to elect to estimate forfeitures or account for them when they occur; and 4) increase tax withholding requirements threshold to qualify for equity classification. The guidance is effective for public companies for annual periods, and interim periods within those annual periods, beginning after December 15, 2016, and early adoption is permitted. The Company is currently evaluating the impact that the guidance will have on the consolidated financial statements.

Note 3 - Fair Value Measureme15

Note 3 - Fair Value Measurements (Tables)	9 Months Ended
	Mar. 31, 2016
Notes Tables
Fair Value, Assets Measured on Recurring Basis [Table Text Block]	Quoted Prices in Active Markets for Significant Other Significant (in millions) Identical Assets Observable Inputs Unobservable March 31 , 201 6 Total (Level 1) (Level 2) Inputs (Level 3) Cash equivalents $ 26.2 $ 25.5 $ 0.7 $ — Short-term investments available-for-sale 18.4 10.9 7.5 — Long-term investments available-for-sale 1.0 — 1.0 — Total $ 45.6 $ 36.4 $ 9.2 $ — Quoted Prices in Active Markets for Significant Other Significant (in millions) Identical Assets Observable Inputs Unobservable June 30, 2015 Total (Level 1) (Level 2) Inputs (Level 3) Cash equivalents $ 6.3 $ 6.3 $ — $ — Short-term investments available-for-sale 12.9 12.9 — — Long-term investments available-for-sale 7.9 — 7.9 — Total $ 27.1 $ 19.2 $ 7.9 $ —
Unrealized Gain (Loss) on Investments [Table Text Block]	(in millions) Unrealized Unrealized March 31 , 201 6 At Cost Gains (Losses) At Fair Value Money market funds $ 25.5 $ — $ — $ 25.5 Debt securities of U.S. government agencies 2.0 — — 2.0 U.S. Treasury securities 7.0 — — 7.0 Corporate notes 3.9 — — 3.9 Certificates of deposit 7.2 — — 7.2 Total $ 45.6 $ — $ — $ 45.6 (in millions) Unrealized Unrealized June 30, 2015 At Cost Gains (Losses) At Fair Value Money market funds $ 6.3 $ — $ — $ 6.3 Debt securities of U.S. government agencies 6.5 — — 6.5 U.S. Treasury securities 9.6 — (0.1 ) 9.5 Corporate notes 2.9 — — 2.9 Certificates of deposit 1.9 — — 1.9 Total $ 27.2 $ — $ (0.1 ) $ 27.1

Note 4 - Accrued and Other Cu16

Note 4 - Accrued and Other Current Liabilities (Tables)	9 Months Ended
	Mar. 31, 2016
Notes Tables
Schedule of Accrued Liabilities [Table Text Block]	March 31 , 201 6 June 30, 2015 Professional fees $ 0.7 $ 0.8 Salary and benefits 0.6 1.6 Research and development expenses 3.1 1.7 Other accrued expenses 0.1 1.3 Total accrued expenses and other liabilities $ 4.5 $ 5.4

Note 5 - Net Income (Loss) Pe17

Note 5 - Net Income (Loss) Per Share (Tables)	9 Months Ended
	Mar. 31, 2016
Notes Tables
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	Three Months Ended March 31 , 201 6 201 5 Net income (loss) (in millions) $ (5.2 ) $ 1.2 Weighted-average shares outstanding 38,640,254 35,105,978 Dilutive effect of restricted stock and stock options - 37,200 Shares used to compute diluted earnings per share 38,640,254 35,143,178 Basic net income (loss) per share $ (0.14 ) $ 0.03 Diluted net income (loss) income per share $ (0.14 ) $ 0.03 Number of anti-dilutive share-based awards excluded from computation 4,639,959 3,333,392 Nine Months Ended , 201 6 2015 Net income (loss) (in millions) $ (18.4 ) $ 0.8 Weighted-average shares outstanding 38,633,786 35,102,609 Dilutive effect of restricted stock and stock options - 24,404 Shares used to compute diluted earnings per share 38,633,786 35,127,013 Basic net income (loss) per share $ (0.48 ) $ 0.02 Diluted net income (loss) per share $ (0.48 ) $ 0.02 Number of anti-dilutive share-based awards excluded from computation 4,639,959 3,346,188

Note 6 - Licenses, Royalty Co18

Note 6 - Licenses, Royalty Collaborative and Contractual Arrangements (Tables)	9 Months Ended
	Mar. 31, 2016
Notes Tables
Schedule of Segment Reporting Information, by Segment [Table Text Block]	Three Months Ended March 31 , 201 6 201 5 (in millions) Royalty revenue – Relenza ® $ 1.7 $ 3.0 – Inavir ® 3.6 2.5 Revenue from services - 0.4 Total revenue $ 5.3 $ 5.9 Nine Months Ended March 31, 2016 2015 (in millions) Royalty revenue – Relenza ® $ 4.5 $ 7.3 – Inavir ® 4.3 4.8 Revenue from services - 8.4 Total revenue $ 8.8 $ 20.5

Note 2 - Basis of Presentation

Note 2 - Basis of Presentation (Details Textual) $ in Millions	Dec. 31, 2015USD ($)
New Accounting Pronouncement, Early Adoption, Effect [Member]
Offset of Deferred Tax Assets and Liabilities	$ 0.5

Note 3 - Fair Value Measureme20

Note 3 - Fair Value Measurements (Details Textual)	9 Months Ended
	Mar. 31, 2016
Available-for-Sale Securities, Maturity Period	2 years

Note 3 - Summary of Investments

Note 3 - Summary of Investments (Details) - USD ($) $ in Millions	Mar. 31, 2016	Jun. 30, 2015
Money Market Funds [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value	$ 25.5	$ 6.3
Money Market Funds [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value	$ 0.7
Money Market Funds [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value
Money Market Funds [Member]
Fair Value	$ 25.5	$ 6.3
Short-term Investments [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value	10.9	$ 12.9
Short-term Investments [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value	$ 7.5
Short-term Investments [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value
Short-term Investments [Member]
Fair Value	$ 18.4	$ 12.9
Other Long-term Investments [Member] | Fair Value, Inputs, Level 1 [Member]
Available for Sale Securities - Noncurrent
Other Long-term Investments [Member] | Fair Value, Inputs, Level 2 [Member]
Available for Sale Securities - Noncurrent	$ 1	$ 7.9
Other Long-term Investments [Member] | Fair Value, Inputs, Level 3 [Member]
Available for Sale Securities - Noncurrent
Other Long-term Investments [Member]
Available for Sale Securities - Noncurrent	$ 1	$ 7.9
Fair Value, Inputs, Level 1 [Member]
Available for Sale Securities - Total	36.4	19.2
Fair Value, Inputs, Level 2 [Member]
Available for Sale Securities - Total	$ 9.2	$ 7.9
Fair Value, Inputs, Level 3 [Member]
Available for Sale Securities - Total
Fair Value	$ 45.6	$ 27.1
Available for Sale Securities - Total	$ 45.6	$ 27.1

Note 3 - Unrealized Gain (Loss)

Note 3 - Unrealized Gain (Loss) on Investments (Details) - USD ($) $ in Millions	Mar. 31, 2016	Jun. 30, 2015
Money Market Funds [Member]
At Cost	$ 25.5	$ 6.3
Unrealized Gains
Unrealized (Losses)
Fair Value	$ 25.5	$ 6.3
US Government Agencies Debt Securities [Member]
At Cost	$ 2	$ 6.5
Unrealized Gains
Unrealized (Losses)
Fair Value	$ 2	$ 6.5
US Treasury Securities [Member]
At Cost	$ 7	$ 9.6
Unrealized Gains
Unrealized (Losses)		$ (0.1)
Fair Value	$ 7	9.5
Corporate Note Securities [Member]
At Cost	$ 3.9	$ 2.9
Unrealized Gains
Unrealized (Losses)
Fair Value	$ 3.9	$ 2.9
Certificates of Deposit [Member]
At Cost	$ 7.2	$ 1.9
Unrealized Gains
Unrealized (Losses)
Fair Value	$ 7.2	$ 1.9
At Cost	$ 45.6	$ 27.2
Unrealized Gains
Unrealized (Losses)		$ (0.1)
Fair Value	$ 45.6	$ 27.1

Note 4 - Summary of Accrued and

Note 4 - Summary of Accrued and Other Current Liabilities (Details) - USD ($) $ in Millions	Mar. 31, 2016	Jun. 30, 2015
Professional fees	$ 0.7	$ 0.8
Salary and benefits	0.6	1.6
Research and development expenses	3.1	1.7
Other accrued expenses	0.1	1.3
Total accrued expenses and other liabilities	$ 4.5	$ 5.4

Note 5 - Computation of Histori

Note 5 - Computation of Historical Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Net income (loss)	$ (5.2)	$ 1.2	$ (18.4)	$ 0.8
Weighted-average shares outstanding (in shares)	38,640,254	35,105,978	38,633,786	35,102,609
Dilutive effect of restricted stock and stock options (in shares)		37,200		24,404
Shares used to compute diluted earnings per share (in shares)	38,640,254	35,143,178	38,633,786	35,127,013
Basic net income (loss) per share (in dollars per share)	$ (0.14)	$ 0.03	$ (0.48)	$ 0.02
Diluted net income (loss) income per share (in dollars per share)	$ (0.14)	$ 0.03	$ (0.48)	$ 0.02
Number of anti-dilutive share-based awards excluded from computation (in shares)	4,639,959	3,333,392	4,639,959	3,346,188

Note 6 - Licenses, Royalty Co25

Note 6 - Licenses, Royalty Collaborative and Contractual Arrangements (Details Textual)	9 Months Ended
	Mar. 31, 2016
United States, Europe, Japan, And Other Countries [Member] | GSK [Member]
Royalty Payment Percentage	7.00%
Australia, New Zealand, South Africa, and Indonesia [Member] | GSK [Member]
Royalty Payment Percentage	10.00%
UNITED STATES | GSK [Member] | Relenza [Member]
Royalty Payment, Number of Years Eligible to Receive Royalties from Net Sales of Product or Service	17 years
Japan [Member] | Daiichi Sankyo [Member]
Royalty Payment Percentage	4.00%

Note 6 - Components of Revenues

Note 6 - Components of Revenues from Royalties, Collaborative and Contractual Agreements (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Relenza [Member]
Royalty revenue	$ 1.7	$ 3	$ 4.5	$ 7.3
Inavir [Member]
Royalty revenue	3.6	2.5	4.3	4.8
Royalty revenue	$ 5.3	5.5	$ 8.8	12
Revenue from services		0.4		8.4
Total revenue	$ 5.3	$ 5.9	$ 8.8	$ 20.5

Note 7 - Subsequent Event (Deta

Note 7 - Subsequent Event (Details Textual) $ in Millions	Apr. 22, 2016USD ($)
Royalty Interest Acquisition Agreement [Member] | Subsequent Event [Member] | HealthCare Royalty Partners III, L.P. [Member]
Proceeds From Royaly Rights	$ 20