Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2014 | Apr. 14, 2014 | |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 31-Mar-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Trading Symbol | 'RGEN | ' |
Entity Registrant Name | 'REPLIGEN CORP | ' |
Entity Central Index Key | '0000730272 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 32,039,883 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Current assets: | ' | ' |
Cash and cash equivalents | $49,209,621 | $39,829,653 |
Marketable securities | 21,551,398 | 21,793,550 |
Accounts receivable, less reserve for doubtful accounts of $10,000 | 5,036,909 | 4,946,132 |
Royalties and other receivables | ' | 6,730,818 |
Inventories | 11,441,317 | 11,798,638 |
Deferred tax asset, net | 1,984 | 1,984 |
Prepaid expenses and other current assets | 1,456,208 | 1,249,824 |
Total current assets | 88,697,437 | 86,350,599 |
Property, plant and equipment, at cost: | ' | ' |
Leasehold improvements | 9,207,709 | 8,973,615 |
Equipment | 13,939,322 | 13,684,954 |
Furniture and fixtures | 2,175,604 | 2,116,017 |
Construction in progress | 35,168 | 21,647 |
Total property, plant and equipment, at cost | 25,357,803 | 24,796,233 |
Less: Accumulated depreciation | -12,911,214 | -12,287,010 |
Property, plant and equipment, net | 12,446,589 | 12,509,223 |
Long-term deferred tax asset, net | 176,742 | 184,848 |
Long-term marketable securities | 10,904,518 | 12,218,602 |
Intangible assets, net | 5,915,105 | 6,187,632 |
Goodwill | 994,000 | 994,000 |
Restricted cash | 200,000 | 200,000 |
Total assets | 119,334,391 | 118,644,904 |
Current liabilities: | ' | ' |
Accounts payable | 1,483,447 | 1,721,459 |
Accrued liabilities | 5,638,935 | 9,579,712 |
Total current liabilities | 7,122,382 | 11,301,171 |
Other long-term liabilities | 3,360,477 | 3,457,631 |
Commitments and contingencies | ' | ' |
Stockholders' equity: | ' | ' |
Preferred stock, $.01 par value, 5,000,000 shares authorized, no shares issued or outstanding | ' | ' |
Common stock, $.01 par value, 40,000,000 shares authorized, 32,040,683 shares at March 31, 2014 and 31,925,741 shares at December 31, 2013 issued and outstanding | 320,407 | 319,257 |
Additional paid-in capital | 191,454,083 | 190,625,937 |
Accumulated other comprehensive income | 1,857,361 | 1,998,330 |
Accumulated deficit | -84,780,319 | -89,057,422 |
Total stockholders' equity | 108,851,532 | 103,886,102 |
Total liabilities and stockholders' equity | $119,334,391 | $118,644,904 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Accounts receivable, reserve for doubtful accounts | $10,000 | $10,000 |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | ' | ' |
Preferred stock, shares outstanding | ' | ' |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 40,000,000 | 40,000,000 |
Common stock, shares issued | 32,040,683 | 31,925,741 |
Common stock, shares outstanding | 32,040,683 | 31,925,741 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Revenue: | ' | ' |
Product revenue | $14,334,687 | $11,934,269 |
Royalty and other revenue | 1,991,166 | 4,521,724 |
Total revenue | 16,325,853 | 16,455,993 |
Operating expenses: | ' | ' |
Cost of product revenue | 6,335,064 | 6,896,608 |
Cost of royalty revenue | ' | 576,857 |
Research and development | 1,200,990 | 2,183,404 |
Selling, general and administrative | 3,383,610 | 3,308,099 |
Contingent consideration - fair value adjustments | 98,320 | -53,974 |
Total operating expenses | 11,017,984 | 12,910,994 |
Income from operations | 5,307,869 | 3,544,999 |
Investment income | 101,816 | 61,519 |
Interest expense | -14,085 | -13,531 |
Other income | 2,505 | 29,081 |
Income before income taxes | 5,398,105 | 3,622,068 |
Income tax provision | 1,121,002 | 1,283,832 |
Net income | 4,277,103 | 2,338,236 |
Earnings per share: | ' | ' |
Basic | $0.13 | $0.07 |
Diluted | $0.13 | $0.07 |
Weighted average shares outstanding: | ' | ' |
Basic | 31,962,843 | 31,240,606 |
Diluted | 32,831,019 | 31,855,428 |
Other comprehensive income: | ' | ' |
Unrealized gain (loss) on investments | 2,184 | -1,983 |
Foreign currency translation loss | -143,153 | -256,608 |
Comprehensive income | $4,136,134 | $2,079,645 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Cash flows from operating activities: | ' | ' |
Net income: | $4,277,103 | $2,338,236 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 892,407 | 818,920 |
Stock-based compensation expense | 307,425 | 250,071 |
Deferred tax expense | 7,566 | -112,403 |
Loss (gain) on revaluation of contingent consideration | 98,320 | -53,974 |
Changes in assets and liabilities: | ' | ' |
Accounts receivable | -94,064 | -2,772,175 |
Royalties and other receivables | 6,730,818 | 5,284,800 |
Inventories | 331,087 | 872,260 |
Prepaid expenses and other current assets | -209,701 | -51,472 |
Accounts payable | -236,176 | -548,648 |
Accrued liabilities | -3,999,779 | -1,301,152 |
Long-term liabilities | -106,216 | -1,129,760 |
Net cash provided by operating activities | 7,998,790 | 3,594,703 |
Cash flows from investing activities: | ' | ' |
Purchases of marketable securities | -8,970,763 | -10,538,701 |
Redemptions of marketable securities | 10,529,183 | 5,811,555 |
Purchases of property, plant and equipment | -596,788 | -322,099 |
Net cash provided by (used in) investing activities | 961,632 | -5,049,245 |
Cash flows from financing activities: | ' | ' |
Exercise of stock options | 497,709 | 956,721 |
Net cash provided by financing activities | 497,709 | 956,721 |
Effect of exchange rate changes on cash and cash equivalents | -78,163 | -141,985 |
Net increase (decrease) in cash and cash equivalents | 9,379,968 | -639,806 |
Cash and cash equivalents, beginning of period | 39,829,653 | 29,209,821 |
Cash and cash equivalents, end of period | 49,209,621 | 28,570,015 |
Supplemental disclosure of non-cash investing activities: | ' | ' |
Income taxes paid | $466,000 | $659,000 |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended | |
Mar. 31, 2014 | ||
Basis of Presentation | ' | |
1 | Basis of Presentation | |
The consolidated financial statements included herein have been prepared by Repligen Corporation (the “Company,” “Repligen” or “we”) in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”), for Quarterly Reports on Form 10-Q and Article 10 of Regulation S-X and do not include all of the information and footnote disclosures required by U.S. GAAP. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. | ||
In the opinion of management, the accompanying unaudited consolidated financial statements include all adjustments, consisting of only normal, recurring adjustments necessary for a fair presentation of the financial position, results of operations and cash flows. The results of operations for the interim periods presented are not necessarily indicative of results to be expected for the entire year. | ||
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Goodwill and Intangible Assets | ' | ||||||||||||
2 | Goodwill and Intangible Assets | ||||||||||||
Goodwill | |||||||||||||
Goodwill is not amortized and is reviewed for impairment at least annually. There was no evidence of impairment to goodwill at March 31, 2014. There were no goodwill impairment charges during the three-month period ended March 31, 2014. | |||||||||||||
Intangible Assets | |||||||||||||
Intangible assets are amortized over their useful lives using the estimated economic benefit method, as applicable, and the amortization expense is recorded within selling, general and administrative expense in the Company’s statements of comprehensive income (loss). Intangible assets and their related useful lives are reviewed at least annually to determine if any adverse conditions exist that would indicate the carrying value of these assets may not be recoverable. More frequent impairment assessments are conducted if certain conditions exist, including a change in the competitive landscape, any internal decisions to pursue new or different technology strategies, a loss of a significant customer, or a significant change in the marketplace, including changes in the prices paid for our products or changes in the size of the market for our products. An impairment results if the carrying value of the asset exceeds the estimated fair value of the asset. If the estimate of an intangible asset’s remaining useful life is changed, the remaining carrying amount of the intangible asset is amortized prospectively over the revised remaining useful life. The Company continues to believe that its intangible assets are recoverable at March 31, 2014. | |||||||||||||
Intangible assets consisted of the following at March 31, 2014: | |||||||||||||
Gross | Accumulated | Weighted | |||||||||||
Carrying | Amortization | Average | |||||||||||
Amount | Useful Life | ||||||||||||
(in years) | |||||||||||||
Technology – developed | $ | 1,453,006 | $ | (581,084 | ) | 8 | |||||||
Patents | 240,000 | (125,000 | ) | 8 | |||||||||
Customer relationships | 6,874,961 | (1,946,778 | ) | 8 | |||||||||
Total intangible assets | $ | 8,567,967 | $ | (2,652,862 | ) | 8 | |||||||
Intangible assets consisted of the following at December 31, 2013: | |||||||||||||
Gross | Accumulated | Weighted | |||||||||||
Carrying | Amortization | Average | |||||||||||
Amount | Useful Life | ||||||||||||
(in years) | |||||||||||||
Technology – developed | $ | 1,455,382 | $ | (537,589 | ) | 8 | |||||||
Patents | 240,000 | (117,500 | ) | 8 | |||||||||
Customer relationships | 6,897,052 | (1,749,713 | ) | 8 | |||||||||
Total intangible assets | $ | 8,592,434 | $ | (2,404,802 | ) | 8 | |||||||
Amortization expense for amortized intangible assets was approximately $248,000 for the three months ended March 31, 2014. The Company expects to record amortization expense of approximately $1,000,000 in each of the next five years related to these intangible assets. |
Revenue_Recognition
Revenue Recognition | 3 Months Ended | |||
Mar. 31, 2014 | ||||
Revenue Recognition | ' | |||
3 | Revenue Recognition | |||
Product Sales | ||||
The Company generates revenue from the sale of products. Historically, the Company also generated revenue from licensing transactions and research and development collaborations. The Company’s product revenues are from the sale of bioprocessing products to customers in the life science and biopharmaceutical industries. Revenue related to product sales is recognized upon delivery of the product to the customer as long as there is persuasive evidence of an arrangement, the sales price is fixed or determinable and collection of the related receivable is reasonably assured. Determination of whether these criteria have been met are based on management’s judgments primarily regarding the fixed nature of the fee charged for the product delivered and the collectability of those fees. The Company has a few longstanding customers who comprise the majority of revenue and have excellent payment histories and therefore the Company does not require collateral. The Company has had no significant write-offs of uncollectible invoices in the periods presented. | ||||
At the time of sale, the Company also evaluates the need to accrue for warranty and sales returns. The supply agreements the Company has with its customers and the related purchase orders identify the terms and conditions of each sale and the price of the goods ordered. Due to the nature of the sales arrangements, inventory produced for sale is tested for quality specifications prior to shipment. Since the product is manufactured to order and in compliance with required specifications prior to shipment, the likelihood of sales return, warranty or other issues is largely diminished. Sales returns and warranty issues are infrequent and have had nominal impact on the Company’s financial statements historically. | ||||
Sale of Intellectual Property to BioMarin | ||||
In January 2014, the Company entered into an asset purchase agreement (the “Asset Purchase Agreement”) with BioMarin Pharmaceutical Inc. (“BioMarin”) to sell Repligen’s histone deacetylase inhibitor (HDACi) portfolio. Pursuant to the terms of the Asset Purchase Agreement, the Company received $2 million from BioMarin as an upfront payment on January 30, 2014. The Company is entitled to receive up to $160 million in potential future milestone payments for the development, regulatory approval and commercial sale of portfolio compounds included in the agreement. These potential milestone payments are approximately 37% related to clinical development and 63% related to initial commercial sales in specific geographies. In addition, Repligen is eligible to receive royalties on sales of therapeutic products originating from the HDACi portfolio. The royalty rates are tiered and begin in the mid-single-digits for the first HDACi portfolio product and for the first non-HDACi portfolio product with lesser amounts for any backup products developed under the Asset Purchase Agreement. Repligen’s receipt of these royalties is subject to customary offsets and deductions. There are no refund provisions in this agreement. The Company recognized $2 million of revenue in the three months ended March 31, 2014 related to the transfer of the HDACi technology under the Asset Purchase Agreement. Any milestones earned upon specified clinical development or commercial sales events or future royalty payments, under the Asset Purchase Agreement will be recognized as revenue when they are earned. | ||||
Activities under this agreement were evaluated in accordance with ASC 605-25 to determine if they represented a multiple element revenue arrangement. We identified the following deliverables in the BioMarin agreement: | ||||
• | The assignment by Repligen to BioMarin of the Repligen Technology (“Repligen Know-How” and “Repligen Patents”) and the Scripps Agreement (the “Transferred Assets”); | |||
• | The transfer of certain notebooks, data, documents, biological materials (if any) and other such documents in our possession that might be useful to further development of the program (the “Technology Transfer”). | |||
Two criteria must be met in order for a deliverable to be considered a separate unit of accounting. The first criterion requires that the delivered item or items have value to the customer on a stand-alone basis. The second criterion, which relates to evaluating a general right of return, is not applicable because such a provision does not exist in the Asset Purchase Agreement. The deliverables outlined above were deemed to have stand-alone value and to meet the criteria to be accounted for as separate units of accounting. Factors considered in this determination included, among other things, BioMarin’s right under the agreement to assign the Transferred Assets, whether any other vendors sell the items separately and if BioMarin could use the delivered item for its intended purpose without the receipt of the remaining deliverables. If multiple deliverables included in an arrangement are separable into different units of accounting, the multiple-element arrangements guidance addresses how to allocate the arrangement consideration to those units of accounting. The amount of allocable arrangement consideration is limited to amounts that are fixed or determinable. Arrangement consideration is allocated at the inception of the arrangement to the identified units of accounting based on their relative selling price. | ||||
We identified the arrangement consideration to allocate among the units of accounting as the $2.0 million non-refundable up-front payment and the $126,375 payment to be received upon completion of the Technology Transfer. We excluded the potential milestone payments provided for in the Asset Purchase Agreement from the arrangement consideration as they were not considered fixed or determinable at the time the Asset Purchase Agreement was signed. Because we had not sold these items on a standalone basis previously, we had no vendor-specific objective evidence of selling price. Furthermore, we did not have detailed third-party evidence of selling price, and as a result we used our best estimate of selling price for each item. In determining these prices, we considered what we would be willing to sell the items for on a standalone basis, what the market would bear for such items and what another party might charge for these items. | ||||
The up-front arrangement consideration allocated to the Transferred Assets was recognized upon execution of the Asset Purchase Agreement as the risks and rewards associated with the Transferred Assets transferred at that time. We used a discounted cash flow analysis to determine the value of the Transferred Assets. Key assumptions in the analysis included: the estimated market size for a compound targeted at Friedreich’s ataxia, the estimated remaining costs of development and time to commercialization, and the probability of successfully developing and commercializing the program. Based on this analysis, we allocated $2,115,000 to the value of the Transferred Assets. However, as the recognize revenue is limited to the non-contingent consideration received, we recognized $2,000,000, the amount of the up-front payment, as revenue in the three months ended March 31, 2014. | ||||
The estimated selling price of the Technology Transfer items was approximately $300,000 resulting in consideration allocation of approximately $11,000. However, as this item was not delivered prior to March 31, 2014, we did not recognize any revenue related to the Technology Transfer in the three months ended March 31, 2014. We expect the Technology Transfer to be delivered by June 30, 2014. | ||||
We believe that a change in the key assumptions used to determine best estimate of selling price for each of the deliverables would not have a significant effect on the allocation of arrangement consideration. | ||||
In addition to the $2 million up-front payment, we are also eligible to receive up to $160 million in potential milestone payments from BioMarin comprised of: | ||||
• | Up to $60 million related to the achievement of specified clinical and regulatory milestone events; and | |||
• | Up to $100 million related to the achievement of specified commercial sales events, specifically the first commercial sale in specific territories. | |||
We evaluated the potential milestones in accordance with ASC 605-28, which allows an entity to make an accounting policy election to recognize a payment that is contingent upon the achievement of a substantive milestone in its entirety in the period in which the milestone is achieved. This evaluation included an assessment of the risks that must be overcome to achieve the respective milestone as well as whether the achievement of the milestone was due in part to our initial clinical work, the level of effort and investment required to achieve the respective milestone and whether the milestone consideration is reasonable relative to all deliverables and payment terms in the arrangement. There is considerable judgment involved in determining whether a milestone satisfies all of the criteria required to conclude that a milestone is substantive. Milestones that are not considered substantive are recognized as earned if there are no remaining performance obligations or over the remaining period of performance, assuming all other revenue recognition criteria are met. | ||||
We believe that the $60 million of specified clinical and regulatory milestone payments are substantive. Therefore, any such milestones achieved will be recognized as revenue when earned. | ||||
Any milestones achieved upon specified commercial sales events or future royalty payments are considered contingent revenue under the Asset Purchase Agreement, and will be recognized as revenue when they are earned as there are no undelivered elements remaining and no continuing performance obligations under the arrangement. | ||||
Pfizer License Agreement | ||||
In December 2012, the Company entered into an exclusive worldwide licensing agreement (the “License Agreement”) with Pfizer Inc. (“Pfizer”) to advance the spinal muscular atrophy program, or SMA program. Pursuant to the terms of the License Agreement, the Company received $5 million from Pfizer as an upfront payment on January 22, 2013 and a $1 million milestone payment on September 4, 2013. The Company is entitled to receive up to $64 million in potential future payments, a portion of which may be owed to third parties. These potential payments are approximately equally divided between milestones related to clinical development and initial commercial sales in specific geographies. In addition, the Company is entitled to receive royalties on any future sales of RG3039 or any SMA compounds developed under the License Agreement. The royalty rates are tiered and begin in the high single-digits for RG3039 or lesser amounts for any backup compounds developed under the License Agreement. Repligen’s receipt of these royalties is subject to an obligation under an existing in-license agreement and other customary offsets and deductions. There are no refund provisions in this agreement. The Company recognized $4,876,000 of revenue related to the value of the license in the year ended December 31, 2012. The Company recognized $0 and $55,000 of revenue in the three months ended March 31, 2014 and 2013, respectively, related to the delivery of clinical and transition services under the License Agreement. Any milestones earned upon specified commercial sales events or future royalty payments, under the License Agreement will be recognized as revenue when they are earned. | ||||
Orencia Royalty | ||||
In April 2008, the Company settled its outstanding litigation with Bristol-Myers Squibb Company (“Bristol”) and began recognizing royalty revenue in fiscal year 2009 for Bristol’s net sales in the United States of Orencia® which is used in the treatment of rheumatoid arthritis. The royalty agreement with Bristol provided that the Company would receive such royalty payments on sales of Orencia® by Bristol through December 31, 2013. These royalty payments have ceased. Pursuant to the settlement with Bristol (“Bristol Settlement”), the Company recognized royalty revenue of approximately $0 and $3,846,000 for the three months ended March 31, 2014 and 2013, respectively. Revenue earned from Bristol royalties was recorded in the periods when it was earned based on royalty reports sent by Bristol to the Company. The Company has no continuing obligations to Bristol as a result of this settlement. | ||||
Pursuant to the Bristol Settlement, Repligen remitted to the University of Michigan 15% of all royalty revenue received from Bristol. Royalty expense for the three months ended March 31, 2014 and March 31, 2013 was approximately $0 and $577,000, respectively. This operating expense has been included in the Company’s Statements of Operations under the line item “Cost of royalty revenue.” | ||||
Research and Development Agreements | ||||
For the three months ended March 31, 2014 and March 31, 2013, the Company recognized approximately $0 and $621,000, respectively, of revenue from a sponsored research and development project under an agreement with the National Institutes of Health / Scripps Research Institute. | ||||
Research revenue is recognized when the expense has been incurred and services have been performed. Determination of which incurred costs qualify for reimbursement under the terms of the Company’s contractual agreements and the timing of when such costs were incurred involves the judgment of management. The Company’s calculations are based on the agreed-upon terms as stated in the arrangements. However, should the estimated calculations change or be challenged by other parties to the agreements, research revenue may be adjusted in subsequent periods. The calculations have not historically changed or been challenged, and the Company does not anticipate any significant subsequent change in its revenue related to sponsored research and development projects. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Accumulated Other Comprehensive Income | ' | ||||||||||||
4 | Accumulated Other Comprehensive Income | ||||||||||||
The following table summarizes the changes in accumulated other comprehensive income by component: | |||||||||||||
(In thousands) | Unrealized gain | Foreign currency | Total | ||||||||||
(loss) on | translation gain | ||||||||||||
investments | (loss) | ||||||||||||
Balance at December 31, 2013 | $ | (5,281 | ) | $ | 2,003,611 | $ | 1,998,330 | ||||||
Other comprehensive income before reclassifications | 2,184 | (143,153 | ) | (140,969 | ) | ||||||||
Amounts reclassified from accumulated other comprehensive income | — | — | — | ||||||||||
Net current period other comprehensive income | 2,184 | (143,153 | ) | (140,969 | ) | ||||||||
Balance at March 31, 2014 | $ | (3,097 | ) | $ | 1,860,458 | $ | 1,857,361 | ||||||
Earnings_Per_Share
Earnings Per Share | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Earnings Per Share | ' | ||||||||
5 | Earnings Per Share | ||||||||
The Company reports earnings per share in accordance with Accounting Standards Codification Topic 260, “Earnings Per Share,” which establishes standards for computing and presenting earnings per share. Basic earnings per share is computed by dividing net income available to common shareholders by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income available to common shareholders by the weighted-average number of common shares and dilutive common share equivalents then outstanding. Potential common share equivalents consist of restricted stock awards and the incremental common shares issuable upon the exercise of stock options and warrants. Under the treasury stock method, unexercised “in-the-money” stock options and warrants are assumed to be exercised at the beginning of the period or at issuance, if later. The assumed proceeds are then used to purchase common shares at the average market price during the period. Share-based payment awards that entitle their holders to receive non-forfeitable dividends before vesting are considered participating securities and are considered in the calculation of basic and diluted earnings per share. Performance based option awards have been excluded from this calculation as they would not be issuable as of March 31, 2014 if that were the end of the contingency period. | |||||||||
Basic and diluted weighted average shares outstanding were as follows: | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Weighted average common shares | 31,962,843 | 31,240,606 | |||||||
Dilutive common stock options | 868,176 | 614,822 | |||||||
Weighted average common shares, assuming dilution | 32,831,019 | 31,855,428 | |||||||
At March 31, 2014, there were outstanding options to purchase 1,675,077 shares of the Company’s common stock at a weighted average exercise price of $5.78 per share. For the three-month period ended March 31, 2014, 207,431 options to purchase shares of the Company’s common stock were excluded from the calculation of diluted earnings per share because the exercise prices of the stock options were greater than or equal to the average price of the common shares, and were therefore anti-dilutive. | |||||||||
At March 31, 2013, there were outstanding options to purchase 2,231,590 shares of the Company’s common stock at a weighted average exercise price of $4.40 per share. For the three-month period ended March 31, 2013, 516,500 options to purchase shares of the Company’s common stock were excluded from the calculation of diluted earnings per share because the exercise prices of the stock options were greater than or equal to the average price of the common shares, and were therefore anti-dilutive. |
StockBased_Compensation
Stock-Based Compensation | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Stock-Based Compensation | ' | ||||||||||||||||
6 | Stock-Based Compensation | ||||||||||||||||
For the three months ended March 31, 2014 and 2013, the Company recorded stock-based compensation expense of $307,425 and $250,071, respectively, for share-based awards granted under the Second Amended and Restated 2001 Repligen Corporation Stock Plan (the “2001 Plan”) and the Repligen Corporation 2012 Stock Option and Incentive Plan (the “2012 Plan,” and collectively with the 2001 Plan and the 1992 Repligen Corporation Stock Option Plan, the “Plans”). | |||||||||||||||||
The following table presents stock-based compensation expense included in the Company’s consolidated statements of comprehensive income: | |||||||||||||||||
Three Months Ended | |||||||||||||||||
March 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Cost of product revenue | $ | 26,562 | $ | 11,664 | |||||||||||||
Research and development | 31,603 | 7,640 | |||||||||||||||
Selling, general and administrative | 249,260 | 230,767 | |||||||||||||||
Total | $ | 307,425 | $ | 250,071 | |||||||||||||
The 2012 Plan allows for the granting of incentive and nonqualified options to purchase shares of common stock, restricted stock and other equity awards. Incentive options granted to employees under the Plans generally vest over a four to five-year period, with 20%-25% vesting on the first anniversary of the date of grant and the remainder vesting in equal yearly installments thereafter. Nonqualified options issued to non-employee directors and consultants under the Plans generally vest over one year. Options granted under the Plans have a maximum term of ten years from the date of grant and generally, the exercise price of the stock options equals the fair market value of the Company’s common stock on the date of grant. At March 31, 2014, options to purchase 1,675,077 shares were outstanding under the Plans. At March 31, 2014, 944,646 shares were available for future grant under the 2012 Plan. | |||||||||||||||||
The Company uses the Black-Scholes option pricing model to calculate the fair value of share-based awards on the grant date. The Company measures stock-based compensation cost at the grant date based on the estimated fair value of the award, and recognizes awards with service based vesting as expense over the employee’s requisite service period on a straight-line basis. The Company records the expense for share-based awards subject to performance-based milestone vesting over the remaining service period when management determines that achievement of the milestone is probable. Management evaluates whether the achievement of a performance-based milestone is probable as of the reporting date. The Company has no awards that are subject to market conditions. The Company recognizes stock-based compensation expense for options that are ultimately expected to vest, and accordingly, such compensation expense has been adjusted for estimated forfeitures. | |||||||||||||||||
Information regarding option activity for the three months ended March 31, 2014 under the Plans is summarized below: | |||||||||||||||||
Options | Weighted- | Weighted- | Aggregate | ||||||||||||||
Outstanding | Average | Average | Intrinsic | ||||||||||||||
Exercise | Remaining | Value | |||||||||||||||
Price Per | Contractual | ||||||||||||||||
Share | Term | ||||||||||||||||
(in years) | |||||||||||||||||
Options outstanding at January 1, 2014 | 1,610,988 | $ | 5.07 | ||||||||||||||
Granted | 181,431 | 11.14 | |||||||||||||||
Exercised | (114,942 | ) | 4.54 | ||||||||||||||
Forfeited/Cancelled | (2,400 | ) | 5.12 | ||||||||||||||
Options outstanding at March 31, 2014 | 1,675,077 | $ | 5.78 | 6.98 | $ | 12,256,703 | |||||||||||
Options exercisable at March 31, 2014 | 834,186 | $ | 4.29 | 5.13 | $ | 7,146,702 | |||||||||||
Vested and expected to vest at March 31, 2014 (1) | 1,577,600 | $ | 5.67 | 6.88 | $ | 11,700,596 | |||||||||||
-1 | This represents the number of vested options as of March 31, 2014 plus the number of unvested options expected to vest as of March 31, 2014 based on the unvested outstanding options at March 31, 2014 adjusted for estimated forfeiture rates of 8% for awards granted to non-executive level employees and 3% for awards granted to executive level employees. | ||||||||||||||||
The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the difference between the closing price of the common stock on March 31, 2014 of $12.86 and the exercise price of each in-the-money option) that would have been received by the option holders had all option holders exercised their options on March 31, 2014. | |||||||||||||||||
The weighted average grant date fair value of options granted during the three months ended March 31, 2014 and 2013 was $10.58 and $3.26, respectively. The total fair value of stock options that vested during the three months ended March 31, 2014 and 2013 was approximately $343,667 and $232,617, respectively. | |||||||||||||||||
As of March 31, 2014, there was $3,364,170 of total unrecognized compensation cost related to unvested share-based awards. This cost is expected to be recognized over a weighted average remaining requisite service period of 3.09 years. The Company expects 743,414 unvested options to vest over the next five years. |
Cash_Cash_Equivalents_and_Mark
Cash, Cash Equivalents and Marketable Securities | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Cash, Cash Equivalents and Marketable Securities | ' | ||||||||||||||||
7 | Cash, Cash Equivalents and Marketable Securities | ||||||||||||||||
At March 31, 2014 and December 31, 2013, the Company’s investments included money market funds as well as short-term and long-term marketable securities. These marketable securities are classified as available-for-sale. Marketable securities are investments with original maturities of greater than 90 days. Long-term marketable securities are securities with maturities of greater than one year. The average remaining contractual maturity of marketable securities at March 31, 2014 is approximately 9.53 months. | |||||||||||||||||
Management reviewed the Company’s investments as of March 31, 2014 and December 31, 2013 and concluded that there are no securities with other than temporary impairments in the investment portfolio. The Company does not intend to sell any investments in an unrealized loss position and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost bases. | |||||||||||||||||
Investments in money market funds and marketable securities consisted of the following at March 31, 2014: | |||||||||||||||||
March 31, 2014 | |||||||||||||||||
Amortized | Gross | Gross | Fair Value | ||||||||||||||
Cost | Unrealized | Unrealized | |||||||||||||||
Gain | Loss | ||||||||||||||||
Marketable securities: | |||||||||||||||||
U.S. Government and agency securities | $ | 9,529,909 | $ | 2,415 | $ | (120 | ) | $ | 9,532,204 | ||||||||
Corporate and other debt securities | 12,016,880 | 4,043 | (1,729 | ) | 12,019,194 | ||||||||||||
21,546,789 | 6,458 | (1,849 | ) | 21,551,398 | |||||||||||||
Long-term marketable securities: | |||||||||||||||||
U.S. Government and agency securities | 8,918,120 | 516 | (8,279 | ) | 8,910,357 | ||||||||||||
Corporate and other debt securities | 1,994,104 | 1,915 | (1,858 | ) | 1,994,161 | ||||||||||||
10,912,224 | 2,431 | (10,137 | ) | 10,904,518 | |||||||||||||
Total | $ | 32,459,013 | $ | 8,889 | $ | (11,986 | ) | $ | 32,455,916 | ||||||||
At March 31, 2014, the Company’s investments included thirty securities in unrealized loss positions with a total unrealized loss of approximately $12,000 and a total fair market value of approximately $14,141,000. All investments with gross unrealized losses have been in unrealized loss positions for less than 12 months. The unrealized losses were caused primarily by current economic and market conditions. There was no change in the credit risk of the securities. There were no realized gains or losses on the investments for the three months ended March 31, 2014 or the year ended December 31, 2013. | |||||||||||||||||
Investments in money market funds and marketable securities consisted of the following at December 31, 2013: | |||||||||||||||||
December 31, 2013 | |||||||||||||||||
Amortized | Gross | Gross | Fair Value | ||||||||||||||
Cost | Unrealized | Unrealized | |||||||||||||||
Gain | Loss | ||||||||||||||||
Marketable securities: | |||||||||||||||||
U.S. Government and agency securities | $ | 8,165,464 | $ | 435 | $ | (630 | ) | $ | 8,165,269 | ||||||||
Corporate and other debt securities | 13,626,690 | 3,636 | (2,045 | ) | 13,628,281 | ||||||||||||
21,792,154 | 4,071 | (2,675 | ) | 21,793,550 | |||||||||||||
Long-term marketable securities: | |||||||||||||||||
U.S. Government and agency securities | 11,599,415 | 466 | (7,034 | ) | 11,592,847 | ||||||||||||
Corporate and other debt securities | 625,882 | 100 | (227 | ) | 625,755 | ||||||||||||
12,225,297 | 566 | (7,261 | ) | 12,218,602 | |||||||||||||
Total | $ | 34,017,451 | $ | 4,637 | $ | (9,936 | ) | $ | 34,012,152 | ||||||||
The contractual maturities of money market funds and marketable securities at March 31, 2014 were as follows: | |||||||||||||||||
Amortized | Fair Value | ||||||||||||||||
Cost | |||||||||||||||||
Due in 1 year or less | $ | 21,546,789 | $ | 21,551,398 | |||||||||||||
Due in 1 to 2 years | 10,912,224 | 10,904,518 | |||||||||||||||
$ | 32,459,013 | $ | 32,455,916 | ||||||||||||||
Fair_Value_Measurement
Fair Value Measurement | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Fair Value Measurement | ' | ||||||||||||||||
8 | Fair Value Measurement | ||||||||||||||||
In determining the fair value of its assets and liabilities, the Company uses various valuation approaches. The Company employs a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the inputs that market participants would use in pricing the asset or liability and are developed based on the best information available in the circumstances. The fair value hierarchy is broken down into three levels based on the source of inputs as follows: | |||||||||||||||||
Level 1 | – | Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access | |||||||||||||||
Level 2 | – | Valuations based on quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active and models for which all significant inputs are observable, either directly or indirectly | |||||||||||||||
Level 3 | – | Valuations based on inputs that are unobservable and significant to the overall fair value measurement | |||||||||||||||
The availability of observable inputs can vary among the various types of financial assets and liabilities. To the extent that the valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for financial statement disclosure purposes, the level in the fair value hierarchy within which the fair value measurement is categorized is based on the lowest level input that is significant to the overall fair value measurement. | |||||||||||||||||
The Company’s fixed income investments are comprised of obligations of U.S. government agencies and corporate marketable securities. These investments have been initially valued at the transaction price and subsequently valued, at the end of each reporting period, utilizing third party pricing services or other market observable data. The pricing services utilize industry standard valuation models, including both income and market based approaches and observable market inputs to determine value. These observable market inputs include reportable trades, benchmark yields, credit spreads, broker/dealer quotes, bids, offers, current spot rates and other industry and economic events. At least annually, the Company validates the prices provided by third party pricing services by reviewing their pricing methods and matrices, obtaining market values from other pricing sources, analyzing pricing data in certain instances and confirming that the relevant markets are active. The Company did not adjust or override any fair value measurements provided by the pricing services as of March 31, 2014. | |||||||||||||||||
The following fair value hierarchy table presents information about each major category of the Company’s assets measured at fair value on a recurring basis as of March 31, 2014: | |||||||||||||||||
Fair value measurement at reporting date using: | |||||||||||||||||
Quoted prices in | Significant | Significant | Total | ||||||||||||||
active markets for | other observable | unobservable | |||||||||||||||
identical assets | inputs | inputs | |||||||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||
Assets: | |||||||||||||||||
Money market funds | $ | 11,953,743 | $ | — | $ | — | $ | 11,953,743 | |||||||||
U.S. Government and agency securities | 10,204,720 | 8,237,841 | — | 18,442,561 | |||||||||||||
Corporate and other debt securities | — | 14,013,355 | — | 14,013,355 | |||||||||||||
Total | $ | 22,158,463 | $ | 22,251,196 | $ | — | $ | 44,409,659 | |||||||||
The Company has no other assets or liabilities for which fair value measurement is either required or has been elected to be applied, other than the liabilities for contingent consideration recorded in connection with the Novozymes Acquisition and the acquisition of the assets of BioFlash Partners, LLC (“BioFlash”). The contingent consideration related to Novozymes is valued based upon an updated agreement with Novozymes Biopharma DK A/S, a company organized under the laws of Denmark (“Novozymes Denmark”). The contingent consideration related to BioFlash is valued using management’s estimates of royalties to be paid to the former shareholders of BioFlash based on sales of the acquired assets. These valuations are Level 3 valuations as the primary inputs are unobservable. Changes in the fair value of contingent consideration in the three-month period ended March 31, 2014 are primarily attributable to a $80,000 minimum royalty payment made to BioFlash, which was previously accrued, and a fair value adjustment of approximately $92,000 due to our agreement with Novozymes Denmark. The following table provides a roll forward of the fair value of the contingent consideration: | |||||||||||||||||
Balance at December 31, 2013 | $ | 1,648,928 | |||||||||||||||
Additions | — | ||||||||||||||||
Payments | (80,000 | ) | |||||||||||||||
Changes in fair value | 97,777 | ||||||||||||||||
Balance at March 31, 2014 | $ | 1,666,705 | |||||||||||||||
There were no remeasurements to fair value during the three months ended March 31, 2014 of financial assets and liabilities that are not measured at fair value on a recurring basis. |
Inventories
Inventories | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Inventories | ' | ||||||||
9 | Inventories | ||||||||
Inventories relate to the Company’s bioprocessing business. The Company values inventory at cost or, if lower, fair market value, using the first-in, first-out method. The Company reviews its inventories at least quarterly and records a provision for excess and obsolete inventory based on its estimates of expected sales volume, production capacity and expiration dates of raw materials, work-in process and finished products. Expected sales volumes are determined based on supply forecasts provided by key customers for the next three to 12 months. The Company writes down inventory that has become obsolete, inventory that has a cost basis in excess of its expected net realizable value, and inventory in excess of expected requirements to cost of product revenue. Manufacturing of bioprocessing finished goods is done to order and tested for quality specifications prior to shipment. Reserves for excess and obsolete inventory were approximately $182,000 at March 31, 2014 and $183,000 at December 31, 2013. | |||||||||
A change in the estimated timing or amount of demand for the Company’s products could result in additional provisions for excess inventory quantities on hand. Any significant unanticipated changes in demand or unexpected quality failures could have a significant impact on the value of inventory and reported operating results. During all periods presented in the accompanying financial statements, there have been no material adjustments related to a revised estimate of inventory valuations. | |||||||||
Work-in-process and finished products inventories consist of material, labor, outside processing costs and manufacturing overhead. Inventories consist of the following: | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Raw materials | $ | 4,224,034 | $ | 4,557,870 | |||||
Work-in-process | 3,032,739 | 4,285,648 | |||||||
Finished products | 4,184,544 | 2,955,120 | |||||||
Total | $ | 11,441,317 | $ | 11,798,638 | |||||
Accrued_Liabilities
Accrued Liabilities | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Accrued Liabilities | ' | ||||||||
10 | Accrued Liabilities | ||||||||
The Company estimates accrued liabilities by identifying services performed on the Company’s behalf, estimating the level of service performed and determining the associated cost incurred for such service as of each balance sheet date. For example, the Company would accrue for professional and consulting fees incurred with law firms, audit and accounting service providers and other third party consultants. These expenses are determined by either requesting those service providers to estimate unbilled services at each reporting date for services incurred or tracking costs incurred by service providers under fixed fee arrangements. | |||||||||
The Company has processes in place to estimate the appropriate amounts to record for accrued liabilities, which principally involve the applicable personnel reviewing the services provided. In the event that the Company does not identify certain costs that have begun to be incurred or the Company under or over-estimates the level of services performed or the costs of such services, the reported expenses for that period may be too low or too high. The date on which certain services commence, the level of services performed on or before a given date, and the cost of such services often require the exercise of judgment. The Company makes these judgments based upon the facts and circumstances known at the date of the financial statements. | |||||||||
Accrued liabilities consist of the following: | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Employee compensation | $ | 2,228,965 | $ | 3,166,086 | |||||
Taxes | 655,703 | 2,324,711 | |||||||
Royalty and license fees | 560,501 | 1,897,473 | |||||||
Contingent consideration (current portion) | 1,313,145 | 1,195,248 | |||||||
Unearned revenue | — | 3,341 | |||||||
Professional fees | 402,820 | 385,478 | |||||||
VAT liabilities | — | 7,591 | |||||||
Other accrued expenses | 477,801 | 599,784 | |||||||
Total | 5,638,935 | 9,579,712 | |||||||
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended | |
Mar. 31, 2014 | ||
Commitments and Contingencies | ' | |
11 | Commitments and Contingencies | |
In March 2014, the Company entered into an amendment of its existing lease to expand the rented space from 55,694 to 75,594 square feet at 41 Seyon Street, Waltham, Massachusetts. Pursuant to the terms of the amended lease, Repligen will lease an additional 19,900 square feet (the “Expansion Space”) for a period of eight years and one month, commencing on August 1, 2014 or the date upon which the landlord’s improvements to the Expansion Space have been completed, whichever is later. The Expansion Space shall become a part of Repligen’s corporate headquarters. | ||
The amended lease provides for additional rent expense of approximately $361,000 on an annualized basis. The amended lease also requires an increased security deposit from $200,000 to $450,000 and continues to require the Company to pay a proportionate share of certain of the landlord’s annual operating costs and real estate taxes. Future minimum rental commitments under the amended lease as of March 31, 2014 are approximately $908,000 and $1,371,000 for the remainder of the year ending December 31, 2014, and the years ending December 31, 2015, 2016, 2017 and 2018, respectively. |
Income_Taxes
Income Taxes | 3 Months Ended | |
Mar. 31, 2014 | ||
Income Taxes | ' | |
12 | Income Taxes | |
For the three months ended March 31, 2014, the Company had income before taxes of approximately $5,398,000 and recorded a tax provision of approximately $1,121,000 for an effective tax rate of approximately 20.8%. This is based on an expected effective tax rate of 20.9% for the year ending December 31, 2014. For the three months ended March 31, 2013, the Company had income before taxes of approximately $3,622,000 and recorded a tax provision of $1,284,000 for an effective tax rate of approximately 35.45%. This was based on an expected effective tax rate of 28.21% for the year ending December 31, 2013 plus approximately $298,000 of discrete items recognized in the quarter ended March 31, 2013. The effective income tax rate is based upon the estimated income for the year and the composition of the income in different jurisdictions. The effective tax rate differs from the U.S. statutory tax rate primarily due to the lower statutory tax rate in Sweden. | ||
The Company has net operating loss carryforwards of approximately $37,633,000 and business tax credits carryforwards of approximately $1,520,000 available to reduce future federal income taxes, if any. The net operating loss and business tax credits carryforwards will continue to expire at various dates through December 2031. Net operating loss carryforwards and available tax credits are subject to review and possible adjustment by the Internal Revenue Service and may be limited in the event of certain changes in the ownership interest of significant stockholders. | ||
In the fourth quarter of 2012, we entered into a cumulative pre-tax income position and concluded that it was more likely than not that we would generate sufficient taxable income in 2013 based on our 2013 projections to realize the tax benefit of a portion of our deferred tax assets. We accordingly recorded a tax benefit in the fourth quarter of 2012 that included the reversal of $3,021,000 of the valuation allowance on our deferred tax assets. At December 31, 2013, as a result of the fact that we no longer receive royalty payments on Bristol’s sales of Orencia, we concluded that realization of deferred tax assets beyond December 31, 2013 was not more likely than not and we therefore maintained a valuation allowance against the majority of our remaining deferred tax assets. As of March 31, 2014, we continue to maintain a valuation allowance against the majority of our remaining deferred tax assets as we concluded that realization of deferred tax assets for the year ended December 31, 2014 and beyond was not more likely than not. |
Segment_Reporting
Segment Reporting | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Segment Reporting | ' | ||||||||
13 | Segment Reporting | ||||||||
The Company views its operations, makes decisions regarding how to allocate resources and manages its business as one operating segment. As a result, the financial information disclosed herein represents all of the material financial information related to the Company’s principal operating segment. | |||||||||
The following table represents the Company’s total revenue by geographic area (based on the location of the customer): | |||||||||
Three months ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
United States | 49 | % | 47 | % | |||||
Sweden | 32 | % | 39 | % | |||||
United Kingdom | 18 | % | 12 | % | |||||
Other | 1 | % | 2 | % | |||||
100 | % | 100 | % | ||||||
Revenue from significant customers as a percentage of the Company’s total revenue is as follows: | |||||||||
Three months ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Upfront payment from sale of intellectual property to BioMarin | 12 | % | — | ||||||
Orencia® Royalties from Bristol | — | 24 | % | ||||||
Bioprocessing Customer A | 40 | % | 38 | % | |||||
Bioprocessing Customer B | 22 | % | 12 | % | |||||
Bioprocessing Customer C | 14 | % | 15 | % | |||||
Significant accounts receivable balances as a percentage of the Company’s total trade accounts receivable and royalties and other receivables balances are as follows: | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Orencia® Royalties from Bristol | — | 42 | % | ||||||
Bioprocessing Customer A | 58 | % | 17 | % | |||||
Bioprocessing Customer B | 22 | % | 8 | % | |||||
Tenant improvement allowance due from landlord | — | 15 | % |
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Intangible Assets | ' | ||||||||||||
Intangible assets consisted of the following at March 31, 2014: | |||||||||||||
Gross | Accumulated | Weighted | |||||||||||
Carrying | Amortization | Average | |||||||||||
Amount | Useful Life | ||||||||||||
(in years) | |||||||||||||
Technology – developed | $ | 1,453,006 | $ | (581,084 | ) | 8 | |||||||
Patents | 240,000 | (125,000 | ) | 8 | |||||||||
Customer relationships | 6,874,961 | (1,946,778 | ) | 8 | |||||||||
Total intangible assets | $ | 8,567,967 | $ | (2,652,862 | ) | 8 | |||||||
Intangible assets consisted of the following at December 31, 2013: | |||||||||||||
Gross | Accumulated | Weighted | |||||||||||
Carrying | Amortization | Average | |||||||||||
Amount | Useful Life | ||||||||||||
(in years) | |||||||||||||
Technology – developed | $ | 1,455,382 | $ | (537,589 | ) | 8 | |||||||
Patents | 240,000 | (117,500 | ) | 8 | |||||||||
Customer relationships | 6,897,052 | (1,749,713 | ) | 8 | |||||||||
Total intangible assets | $ | 8,592,434 | $ | (2,404,802 | ) | 8 | |||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Changes in Accumulated Other Comprehensive Income | ' | ||||||||||||
The following table summarizes the changes in accumulated other comprehensive income by component: | |||||||||||||
(In thousands) | Unrealized gain | Foreign currency | Total | ||||||||||
(loss) on | translation gain | ||||||||||||
investments | (loss) | ||||||||||||
Balance at December 31, 2013 | $ | (5,281 | ) | $ | 2,003,611 | $ | 1,998,330 | ||||||
Other comprehensive income before reclassifications | 2,184 | (143,153 | ) | (140,969 | ) | ||||||||
Amounts reclassified from accumulated other comprehensive income | — | — | — | ||||||||||
Net current period other comprehensive income | 2,184 | (143,153 | ) | (140,969 | ) | ||||||||
Balance at March 31, 2014 | $ | (3,097 | ) | $ | 1,860,458 | $ | 1,857,361 | ||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Basic and Diluted Weighted Average Shares Outstanding | ' | ||||||||
Basic and diluted weighted average shares outstanding were as follows: | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Weighted average common shares | 31,962,843 | 31,240,606 | |||||||
Dilutive common stock options | 868,176 | 614,822 | |||||||
Weighted average common shares, assuming dilution | 32,831,019 | 31,855,428 | |||||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Stock-Based Compensation Expense | ' | ||||||||||||||||
The following table presents stock-based compensation expense included in the Company’s consolidated statements of comprehensive income: | |||||||||||||||||
Three Months Ended | |||||||||||||||||
March 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Cost of product revenue | $ | 26,562 | $ | 11,664 | |||||||||||||
Research and development | 31,603 | 7,640 | |||||||||||||||
Selling, general and administrative | 249,260 | 230,767 | |||||||||||||||
Total | $ | 307,425 | $ | 250,071 | |||||||||||||
Summary of Option Activity | ' | ||||||||||||||||
Information regarding option activity for the three months ended March 31, 2014 under the Plans is summarized below: | |||||||||||||||||
Options | Weighted- | Weighted- | Aggregate | ||||||||||||||
Outstanding | Average | Average | Intrinsic | ||||||||||||||
Exercise | Remaining | Value | |||||||||||||||
Price Per | Contractual | ||||||||||||||||
Share | Term | ||||||||||||||||
(in years) | |||||||||||||||||
Options outstanding at January 1, 2014 | 1,610,988 | $ | 5.07 | ||||||||||||||
Granted | 181,431 | 11.14 | |||||||||||||||
Exercised | (114,942 | ) | 4.54 | ||||||||||||||
Forfeited/Cancelled | (2,400 | ) | 5.12 | ||||||||||||||
Options outstanding at March 31, 2014 | 1,675,077 | $ | 5.78 | 6.98 | $ | 12,256,703 | |||||||||||
Options exercisable at March 31, 2014 | 834,186 | $ | 4.29 | 5.13 | $ | 7,146,702 | |||||||||||
Vested and expected to vest at March 31, 2014 (1) | 1,577,600 | $ | 5.67 | 6.88 | $ | 11,700,596 | |||||||||||
-1 | This represents the number of vested options as of March 31, 2014 plus the number of unvested options expected to vest as of March 31, 2014 based on the unvested outstanding options at March 31, 2014 adjusted for estimated forfeiture rates of 8% for awards granted to non-executive level employees and 3% for awards granted to executive level employees. |
Cash_Cash_Equivalents_and_Mark1
Cash, Cash Equivalents and Marketable Securities (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Investments in Money Market Funds and Marketable Securities | ' | ||||||||||||||||
Investments in money market funds and marketable securities consisted of the following at March 31, 2014: | |||||||||||||||||
March 31, 2014 | |||||||||||||||||
Amortized | Gross | Gross | Fair Value | ||||||||||||||
Cost | Unrealized | Unrealized | |||||||||||||||
Gain | Loss | ||||||||||||||||
Marketable securities: | |||||||||||||||||
U.S. Government and agency securities | $ | 9,529,909 | $ | 2,415 | $ | (120 | ) | $ | 9,532,204 | ||||||||
Corporate and other debt securities | 12,016,880 | 4,043 | (1,729 | ) | 12,019,194 | ||||||||||||
21,546,789 | 6,458 | (1,849 | ) | 21,551,398 | |||||||||||||
Long-term marketable securities: | |||||||||||||||||
U.S. Government and agency securities | 8,918,120 | 516 | (8,279 | ) | 8,910,357 | ||||||||||||
Corporate and other debt securities | 1,994,104 | 1,915 | (1,858 | ) | 1,994,161 | ||||||||||||
10,912,224 | 2,431 | (10,137 | ) | 10,904,518 | |||||||||||||
Total | $ | 32,459,013 | $ | 8,889 | $ | (11,986 | ) | $ | 32,455,916 | ||||||||
Investments in money market funds and marketable securities consisted of the following at December 31, 2013: | |||||||||||||||||
December 31, 2013 | |||||||||||||||||
Amortized | Gross | Gross | Fair Value | ||||||||||||||
Cost | Unrealized | Unrealized | |||||||||||||||
Gain | Loss | ||||||||||||||||
Marketable securities: | |||||||||||||||||
U.S. Government and agency securities | $ | 8,165,464 | $ | 435 | $ | (630 | ) | $ | 8,165,269 | ||||||||
Corporate and other debt securities | 13,626,690 | 3,636 | (2,045 | ) | 13,628,281 | ||||||||||||
21,792,154 | 4,071 | (2,675 | ) | 21,793,550 | |||||||||||||
Long-term marketable securities: | |||||||||||||||||
U.S. Government and agency securities | 11,599,415 | 466 | (7,034 | ) | 11,592,847 | ||||||||||||
Corporate and other debt securities | 625,882 | 100 | (227 | ) | 625,755 | ||||||||||||
12,225,297 | 566 | (7,261 | ) | 12,218,602 | |||||||||||||
Total | $ | 34,017,451 | $ | 4,637 | $ | (9,936 | ) | $ | 34,012,152 | ||||||||
Contractual Maturities of Money Market Funds and Marketable Securities | ' | ||||||||||||||||
The contractual maturities of money market funds and marketable securities at March 31, 2014 were as follows: | |||||||||||||||||
Amortized | Fair Value | ||||||||||||||||
Cost | |||||||||||||||||
Due in 1 year or less | $ | 21,546,789 | $ | 21,551,398 | |||||||||||||
Due in 1 to 2 years | 10,912,224 | 10,904,518 | |||||||||||||||
$ | 32,459,013 | $ | 32,455,916 | ||||||||||||||
Fair_Value_Measurement_Tables
Fair Value Measurement (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Assets Measured at Fair Value on Recurring Basis | ' | ||||||||||||||||
The following fair value hierarchy table presents information about each major category of the Company’s assets measured at fair value on a recurring basis as of March 31, 2014: | |||||||||||||||||
Fair value measurement at reporting date using: | |||||||||||||||||
Quoted prices in | Significant | Significant | Total | ||||||||||||||
active markets for | other observable | unobservable | |||||||||||||||
identical assets | inputs | inputs | |||||||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||
Assets: | |||||||||||||||||
Money market funds | $ | 11,953,743 | $ | — | $ | — | $ | 11,953,743 | |||||||||
U.S. Government and agency securities | 10,204,720 | 8,237,841 | — | 18,442,561 | |||||||||||||
Corporate and other debt securities | — | 14,013,355 | — | 14,013,355 | |||||||||||||
Total | $ | 22,158,463 | $ | 22,251,196 | $ | — | $ | 44,409,659 | |||||||||
Roll Forward of Fair Value of Contingent Consideration | ' | ||||||||||||||||
The following table provides a roll forward of the fair value of the contingent consideration: | |||||||||||||||||
Balance at December 31, 2013 | $ | 1,648,928 | |||||||||||||||
Additions | — | ||||||||||||||||
Payments | (80,000 | ) | |||||||||||||||
Changes in fair value | 97,777 | ||||||||||||||||
Balance at March 31, 2014 | $ | 1,666,705 | |||||||||||||||
Inventories_Tables
Inventories (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Schedule of Inventories | ' | ||||||||
Inventories consist of the following: | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Raw materials | $ | 4,224,034 | $ | 4,557,870 | |||||
Work-in-process | 3,032,739 | 4,285,648 | |||||||
Finished products | 4,184,544 | 2,955,120 | |||||||
Total | $ | 11,441,317 | $ | 11,798,638 | |||||
Accrued_Liabilities_Tables
Accrued Liabilities (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Schedule of Accrued Liabilities | ' | ||||||||
Accrued liabilities consist of the following: | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Employee compensation | $ | 2,228,965 | $ | 3,166,086 | |||||
Taxes | 655,703 | 2,324,711 | |||||||
Royalty and license fees | 560,501 | 1,897,473 | |||||||
Contingent consideration (current portion) | 1,313,145 | 1,195,248 | |||||||
Unearned revenue | — | 3,341 | |||||||
Professional fees | 402,820 | 385,478 | |||||||
VAT liabilities | — | 7,591 | |||||||
Other accrued expenses | 477,801 | 599,784 | |||||||
Total | 5,638,935 | 9,579,712 | |||||||
Segment_Reporting_Tables
Segment Reporting (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Percentage of Revenue from Significant Customers | ' | ||||||||
Revenue from significant customers as a percentage of the Company’s total revenue is as follows: | |||||||||
Three months ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Upfront payment from sale of intellectual property to BioMarin | 12 | % | — | ||||||
Orencia® Royalties from Bristol | — | 24 | % | ||||||
Bioprocessing Customer A | 40 | % | 38 | % | |||||
Bioprocessing Customer B | 22 | % | 12 | % | |||||
Bioprocessing Customer C | 14 | % | 15 | % | |||||
Total Revenue | ' | ||||||||
Percentage by Geographic Area or Significant Customers | ' | ||||||||
The following table represents the Company’s total revenue by geographic area (based on the location of the customer): | |||||||||
Three months ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
United States | 49 | % | 47 | % | |||||
Sweden | 32 | % | 39 | % | |||||
United Kingdom | 18 | % | 12 | % | |||||
Other | 1 | % | 2 | % | |||||
100 | % | 100 | % | ||||||
Accounts Receivable | ' | ||||||||
Percentage by Geographic Area or Significant Customers | ' | ||||||||
Significant accounts receivable balances as a percentage of the Company’s total trade accounts receivable and royalties and other receivables balances are as follows: | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Orencia® Royalties from Bristol | — | 42 | % | ||||||
Bioprocessing Customer A | 58 | % | 17 | % | |||||
Bioprocessing Customer B | 22 | % | 8 | % | |||||
Tenant improvement allowance due from landlord | — | 15 | % |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets - Additional Information (Detail) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Business Acquisition [Line Items] | ' |
Goodwill impairment | $0 |
Amortization expense | 248,000 |
Expected amortization expense in 2014 | 1,000,000 |
Expected amortization expense in 2015 | 1,000,000 |
Expected amortization expense in 2016 | 1,000,000 |
Expected amortization expense in 2017 | 1,000,000 |
Expected amortization expense in 2018 | $1,000,000 |
Intangible_Assets_Detail
Intangible Assets (Detail) (USD $) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2014 | Dec. 31, 2013 | |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | $8,567,967 | $8,592,434 |
Accumulated Amortization | -2,652,862 | -2,404,802 |
Weighted Average Useful Life (in years) | '8 years | '8 years |
Technology - developed | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | 1,453,006 | 1,455,382 |
Accumulated Amortization | -581,084 | -537,589 |
Weighted Average Useful Life (in years) | '8 years | '8 years |
Patents | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | 240,000 | 240,000 |
Accumulated Amortization | -125,000 | -117,500 |
Weighted Average Useful Life (in years) | '8 years | '8 years |
Customer relationships | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | 6,874,961 | 6,897,052 |
Accumulated Amortization | ($1,946,778) | ($1,749,713) |
Weighted Average Useful Life (in years) | '8 years | '8 years |
Revenue_Recognition_Additional
Revenue Recognition - Additional Information (Detail) (USD $) | 3 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | ||||||||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Sep. 30, 2013 | Jan. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2014 | Mar. 31, 2013 | Jan. 30, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | |
Clinical Development | Initial Commercial Sales | Technology Transfer | Pfizer Incorporation | Pfizer Incorporation | Pfizer Incorporation | Pfizer Incorporation | Pfizer Incorporation | Orencia Royalties from Bristol | Orencia Royalties from Bristol | BioMarin Pharmaceutical, Inc. | BioMarin Pharmaceutical, Inc. | BioMarin Pharmaceutical, Inc. | BioMarin Pharmaceutical, Inc. | |||
Nonsoftware License Arrangement | Nonsoftware License Arrangement | Nonsoftware License Arrangement | Nonsoftware License Arrangement | Nonsoftware License Arrangement | Asset Purchase Agreement | Asset Purchase Agreement | Asset Purchase Agreement | Asset Purchase Agreement | ||||||||
Clinical Development | Initial Commercial Sales | |||||||||||||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Upfront Payment received under license agreement | ' | ' | ' | ' | ' | ' | $5,000,000 | ' | ' | ' | ' | ' | $2,000,000 | ' | ' | ' |
Potential milestone payments to be received | ' | ' | 60,000,000 | 100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 160,000,000 | ' | ' |
Percentage relate to clinical development from Milestone payment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 37.00% | 63.00% |
Provision for refund | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' |
License agreement, revenue recognized | 2,115,000 | ' | ' | ' | 0 | ' | ' | 0 | 55,000 | 4,876,000 | ' | ' | ' | 2,000,000 | ' | ' |
Non-refundable up-front payment | 2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payment to be received upon signing of agreement | 126,375 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue recognized under revenue recognition, up front payment | 2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated selling price | ' | ' | ' | ' | 300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Consideration allocated to transaction | ' | ' | ' | ' | 11,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Milestone Payment | ' | ' | 60,000,000 | ' | ' | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Potential milestone payments to be received | ' | ' | ' | ' | ' | ' | ' | 64,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Royalty revenue | 1,991,166 | 4,521,724 | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 3,846,000 | ' | ' | ' | ' |
Percentage of royalty revenue, remittance to the University of Michigan | 15.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cost of royalty and other revenue | ' | 576,857 | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 577,000 | ' | ' | ' | ' |
Revenue from sponsored research and development projects | $0 | $621,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Changes_in_Accumulated_Other_C
Changes in Accumulated Other Comprehensive Income (Detail) (USD $) | 3 Months Ended | ||
Mar. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Balance at December 31, 2013 | $1,998,330 | $1,857,361 | $1,998,330 |
Other comprehensive income before reclassifications | -140,969 | ' | ' |
Amounts reclassified from accumulated other comprehensive income | ' | ' | ' |
Net current period other comprehensive income | -140,969 | ' | ' |
Balance at March 31, 2014 | 1,857,361 | 1,857,361 | 1,998,330 |
Accumulated Net Unrealized Investment Gain (Loss) | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Balance at December 31, 2013 | -5,281 | ' | ' |
Other comprehensive income before reclassifications | 2,184 | ' | ' |
Amounts reclassified from accumulated other comprehensive income | ' | ' | ' |
Net current period other comprehensive income | 2,184 | ' | ' |
Balance at March 31, 2014 | -3,097 | ' | ' |
Accumulated Translation Adjustment | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Balance at December 31, 2013 | 2,003,611 | ' | ' |
Other comprehensive income before reclassifications | -143,153 | ' | ' |
Amounts reclassified from accumulated other comprehensive income | ' | ' | ' |
Net current period other comprehensive income | -143,153 | ' | ' |
Balance at March 31, 2014 | $1,860,458 | ' | ' |
Basic_and_Diluted_Weighted_Ave
Basic and Diluted Weighted Average Shares Outstanding (Detail) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Weighted Average Number of Shares Outstanding [Line Items] | ' | ' |
Weighted average common shares | 31,962,843 | 31,240,606 |
Dilutive common stock options | 868,176 | 614,822 |
Weighted average common shares, assuming dilution | 32,831,019 | 31,855,428 |
Earnings_Per_Share_Additional_
Earnings Per Share - Additional Information (Detail) (USD $) | 3 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | |
Earnings Per Share [Line Items] | ' | ' | ' |
Stock options, outstanding | 1,675,077 | 2,231,590 | 1,610,988 |
Stock options, weighted average exercise price | $5.78 | $4.40 | $5.07 |
Common stock excluded from calculation of diluted earnings per share | 207,431 | 516,500 | ' |
StockBased_Compensation_Additi
Stock-Based Compensation - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | |||||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Mar. 31, 2014 | |
2012 Plan | Employee Stock Option | Employee Stock Option | Non-Employee Directors and Consultants | Unvested Options | ||||
Minimum | Maximum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Stock-based compensation expense | $307,425 | $250,071 | ' | ' | ' | ' | ' | ' |
Incentive options, vesting period | ' | ' | ' | ' | '4 years | '5 years | '1 year | '5 years |
Incentive options, vesting on the first anniversary of the date of grant | ' | ' | ' | ' | 20.00% | 25.00% | ' | ' |
Incentive options, term | ' | ' | ' | ' | ' | '10 years | ' | ' |
Stock options outstanding | 1,675,077 | 2,231,590 | 1,610,988 | ' | ' | ' | ' | ' |
Number of shares available for future grant | ' | ' | ' | 944,646 | ' | ' | ' | ' |
Closing price of common stock | $12.86 | ' | ' | ' | ' | ' | ' | ' |
Weighted average grant date fair value of share-based awards granted | $10.58 | $3.26 | ' | ' | ' | ' | ' | ' |
Total fair value of stock options vested | 343,667 | 232,617 | ' | ' | ' | ' | ' | ' |
Total unrecognized compensation cost | $3,364,170 | ' | ' | ' | ' | ' | ' | ' |
Unrecognized compensation cost, weighted average remaining requisite service period | '3 years 1 month 2 days | ' | ' | ' | ' | ' | ' | ' |
Number of unvested options | 743,414 | ' | ' | ' | ' | ' | ' | ' |
StockBased_Compensation_Expens
Stock-Based Compensation Expense (Detail) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Stock-based compensation expense | $307,425 | $250,071 |
Cost of product revenue | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Stock-based compensation expense | 26,562 | 11,664 |
Research and development | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Stock-based compensation expense | 31,603 | 7,640 |
Selling, general and administrative | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Stock-based compensation expense | $249,260 | $230,767 |
Summary_of_Information_Regardi
Summary of Information Regarding Option Activity (Detail) (USD $) | 3 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | ||
Options Outstanding | ' | ' | |
Options outstanding at January 1, 2014 | 1,610,988 | 2,231,590 | |
Granted | 181,431 | ' | |
Exercised | -114,942 | ' | |
Forfeited/Cancelled | -2,400 | ' | |
Options outstanding at March 31, 2014 | 1,675,077 | 2,231,590 | |
Options exercisable at March 31, 2014 | 834,186 | ' | |
Vested and expected to vest at March 31, 2014 | 1,577,600 | [1] | ' |
Weighted-Average Exercise Price Per Share | ' | ' | |
Options outstanding at January 1, 2014 | $5.07 | $4.40 | |
Granted | $11.14 | ' | |
Exercised | $4.54 | ' | |
Forfeited/Cancelled | $5.12 | ' | |
Options outstanding at March 31, 2014 | $5.78 | $4.40 | |
Options exercisable at March 31, 2014 | $4.29 | ' | |
Vested and expected to vest at March 31, 2014 | $5.67 | [1] | ' |
Weighted-Average Remaining Contractual Term (in years) | ' | ' | |
Options outstanding at March 31, 2014 | '6 years 11 months 23 days | ' | |
Options exercisable at March 31, 2014 | '5 years 1 month 17 days | ' | |
Vested and expected to vest at March 31, 2014 | '6 years 10 months 17 days | [1] | ' |
Aggregate Intrinsic Value | ' | ' | |
Options outstanding at March 31, 2014 | $12,256,703 | ' | |
Options exercisable at March 31, 2014 | 7,146,702 | ' | |
Vested and expected to vest at March 31, 2014 | $11,700,596 | [1] | ' |
[1] | This represents the number of vested options as of March 31, 2014 plus the number of unvested options expected to vest as of March 31, 2014 based on the unvested outstanding options at March 31, 2014 adjusted for estimated forfeiture rates of 8% for awards granted to non-executive level employees and 3% for awards granted to executive level employees. |
Summary_of_Information_Regardi1
Summary of Information Regarding Option Activity (Parenthetical) (Detail) (Employee Stock Option) | Mar. 31, 2014 |
Awards Granted to Non-Executive Level Employees | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Estimated forfeiture rates | 8.00% |
Awards Granted to Executive Level Employees | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Estimated forfeiture rates | 3.00% |
Cash_Cash_Equivalents_and_Mark2
Cash Cash Equivalents and Marketable Securities - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2014 | Dec. 31, 2013 | |
Investment | ||
Cash, cash equivalents and marketable securities [Line Items] | ' | ' |
Long-term marketable securities, minimum original maturity term | '1 year | ' |
Marketable securities, average remaining contractual maturity period | '9 years 6 months 11 days | ' |
Number of debt securities in unrealized loss positions | 30 | ' |
Debt securities in unrealized loss positions, total unrealized loss | $11,986 | $9,936 |
Debt securities in unrealized loss positions, total fair market value | 14,141,000 | ' |
Credit risk | 0 | ' |
Gain (loss) on investments | 0 | 0 |
Debt Securities | ' | ' |
Cash, cash equivalents and marketable securities [Line Items] | ' | ' |
Debt securities in unrealized loss positions, total unrealized loss | $12,000 | ' |
Minimum | ' | ' |
Cash, cash equivalents and marketable securities [Line Items] | ' | ' |
Marketable securities, minimum original maturity term | '90 days | ' |
Investments_in_Money_Market_Fu
Investments in Money Market Funds and Marketable Securities (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | $32,459,013 | $34,017,451 |
Gross Unrealized Gain | 8,889 | 4,637 |
Gross Unrealized Loss | -11,986 | -9,936 |
Fair Value | 32,455,916 | 34,012,152 |
Marketable securities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 21,546,789 | 21,792,154 |
Gross Unrealized Gain | 6,458 | 4,071 |
Gross Unrealized Loss | -1,849 | -2,675 |
Fair Value | 21,551,398 | 21,793,550 |
Marketable securities | U.S. Government and agency securities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 9,529,909 | 8,165,464 |
Gross Unrealized Gain | 2,415 | 435 |
Gross Unrealized Loss | -120 | -630 |
Fair Value | 9,532,204 | 8,165,269 |
Marketable securities | Corporate and other debt securities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 12,016,880 | 13,626,690 |
Gross Unrealized Gain | 4,043 | 3,636 |
Gross Unrealized Loss | -1,729 | -2,045 |
Fair Value | 12,019,194 | 13,628,281 |
Long-term marketable securities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 10,912,224 | 12,225,297 |
Gross Unrealized Gain | 2,431 | 566 |
Gross Unrealized Loss | -10,137 | -7,261 |
Fair Value | 10,904,518 | 12,218,602 |
Long-term marketable securities | U.S. Government and agency securities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 8,918,120 | 11,599,415 |
Gross Unrealized Gain | 516 | 466 |
Gross Unrealized Loss | -8,279 | -7,034 |
Fair Value | 8,910,357 | 11,592,847 |
Long-term marketable securities | Corporate and other debt securities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 1,994,104 | 625,882 |
Gross Unrealized Gain | 1,915 | 100 |
Gross Unrealized Loss | -1,858 | -227 |
Fair Value | $1,994,161 | $625,755 |
Contractual_Maturities_of_Mone
Contractual Maturities of Money Market Funds and Marketable Securities (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Due in 1 year or less | $21,546,789 | ' |
Due in 1 to 2 years | 10,912,224 | ' |
Amortized Cost | 32,459,013 | 34,017,451 |
Due in 1 year or less | 21,551,398 | ' |
Due in 1 to 2 years | 10,904,518 | ' |
Fair Value | $32,455,916 | $34,012,152 |
Major_Category_of_Assets_Measu
Major Category of Assets Measured at Fair Value on Recurring Basis (Detail) (Fair Value, Measurements, Recurring, USD $) | Mar. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' |
Assets | $44,409,659 |
Money market funds | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' |
Assets | 11,953,743 |
U.S. Government and agency securities | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' |
Assets | 18,442,561 |
Corporate and other debt securities | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' |
Assets | 14,013,355 |
Quoted prices in active markets for identical assets (Level 1) | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' |
Assets | 22,158,463 |
Quoted prices in active markets for identical assets (Level 1) | Money market funds | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' |
Assets | 11,953,743 |
Quoted prices in active markets for identical assets (Level 1) | U.S. Government and agency securities | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' |
Assets | 10,204,720 |
Significant other observable inputs (Level 2) | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' |
Assets | 22,251,196 |
Significant other observable inputs (Level 2) | U.S. Government and agency securities | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' |
Assets | 8,237,841 |
Significant other observable inputs (Level 2) | Corporate and other debt securities | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' |
Assets | $14,013,355 |
Fair_Value_Measurement_Additio
Fair Value Measurement - Additional Information (Detail) (USD $) | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2013 |
Novozymes Biopharma DK A/S Sweden Ab | Novozymes Biopharma DK A/S Sweden Ab | ||
Milestone Payments | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' |
Fair value of other assets | $0 | ' | ' |
Fair value of other liabilities | 0 | ' | ' |
Business acquisition, contingent payment | ' | ' | 80,000 |
Fair value adjustment | ' | $92,000 | ' |
Roll_Forward_of_Fair_Value_of_
Roll Forward of Fair Value of Contingent Consideration (Detail) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' |
Balance at December 31, 2013 | $1,648,928 |
Additions | ' |
Payments | -80,000 |
Changes in fair value | 97,777 |
Balance at March 31, 2014 | $1,666,705 |
Inventories_Additional_Informa
Inventories - Additional Information (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Inventory [Line Items] | ' | ' |
Reserves for excess and obsolete inventory | $182,000 | $183,000 |
Schedule_of_Inventories_Detail
Schedule of Inventories (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Inventory [Line Items] | ' | ' |
Raw materials | $4,224,034 | $4,557,870 |
Work-in-process | 3,032,739 | 4,285,648 |
Finished products | 4,184,544 | 2,955,120 |
Total | $11,441,317 | $11,798,638 |
Schedule_of_Accrued_Liabilitie
Schedule of Accrued Liabilities (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Schedule of Accrued Liabilities [Line Items] | ' | ' |
Employee compensation | $2,228,965 | $3,166,086 |
Taxes | 655,703 | 2,324,711 |
Royalty and license fees | 560,501 | 1,897,473 |
Contingent consideration (current portion) | 1,313,145 | 1,195,248 |
Unearned revenue | ' | 3,341 |
Professional fees | 402,820 | 385,478 |
VAT liabilities | ' | 7,591 |
Other accrued expenses | 477,801 | 599,784 |
Total | $5,638,935 | $9,579,712 |
Commitments_and_Contingencies_
Commitments and Contingencies - Additional Information (Detail) (USD $) | 1 Months Ended |
Mar. 31, 2014 | |
Commitments and Contingencies [Line Items] | ' |
Lease agreement, term | '8 years 1 month |
Operating leases, rent expense | $361,000 |
Future minimum rental commitment, reminder of 2014 | 908,000 |
Future minimum rental commitment, 2015 | 1,371,000 |
Future minimum rental commitment, 2016 | 1,371,000 |
Future minimum rental commitment, 2017 | 1,371,000 |
Future minimum rental commitment, 2018 | 1,371,000 |
Before Amendment | ' |
Commitments and Contingencies [Line Items] | ' |
Lease agreement, space | 55,694 |
Security deposit | 200,000 |
After Amendment | ' |
Commitments and Contingencies [Line Items] | ' |
Lease agreement, space | 75,594 |
Security deposit | $450,000 |
Expansion Space | ' |
Commitments and Contingencies [Line Items] | ' |
Lease agreement, space | 19,900 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | |
Income Before Income Tax | Income Before Income Tax | Income Tax Provision | Income Tax Provision | Maximum | Sweden | Available to Reduce Future Federal Income Taxes | |||||
Income Taxes [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income before income taxes | $5,398,105 | $3,622,068 | ' | ' | $5,398,000 | $3,622,000 | ' | ' | ' | ' | ' |
Income tax provision | 1,121,002 | 1,283,832 | ' | ' | ' | ' | 1,121,000 | 1,284,000 | ' | ' | ' |
Expected effective tax rate | ' | ' | ' | 20.90% | ' | ' | ' | ' | ' | ' | ' |
Discrete items recognized | ' | 298,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Effective tax rate | 20.80% | 35.45% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Effective statutory tax rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | 28.21% | ' |
Net operating loss carry forwards | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 37,633,000 |
Business tax credit carry forwards | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,520,000 |
Net operating loss and business tax credit carry forwards expiration date | ' | ' | ' | ' | ' | ' | ' | ' | 'At various dates through December 2031 | ' | ' |
Reversed of deferred tax asset valuation allowance | ' | ' | $3,021,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Segment_Reporting_Additional_I
Segment Reporting - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2014 | |
Segment | |
Segment Reporting Information [Line Items] | ' |
Number of operating segment | 1 |
Percentage_of_Revenue_by_Geogr
Percentage of Revenue by Geographic Area (Detail) (Total Revenue) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Concentration Risk [Line Items] | ' | ' |
Revenues, percentage by country | 100.00% | 100.00% |
United States | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Revenues, percentage by country | 49.00% | 47.00% |
Sweden | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Revenues, percentage by country | 32.00% | 39.00% |
United Kingdom | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Revenues, percentage by country | 18.00% | 12.00% |
Other | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Revenues, percentage by country | 1.00% | 2.00% |
Percentage_of_Revenue_from_Sig
Percentage of Revenue from Significant Customers (Detail) (Sales) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
BioMarin Pharmaceutical, Inc. | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' |
Concentration risk percentage | 12.00% | ' |
Orencia Royalties from Bristol | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' |
Concentration risk percentage | ' | 24.00% |
Bioprocessing Customer A | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' |
Concentration risk percentage | 40.00% | 38.00% |
Bioprocessing Customer B | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' |
Concentration risk percentage | 22.00% | 12.00% |
Bioprocessing Customer C | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' |
Concentration risk percentage | 14.00% | 15.00% |
Percentage_of_Accounts_Receiva
Percentage of Accounts Receivable by Significant Customers (Detail) (Accounts Receivable) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Orencia Royalties from Bristol | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Accounts receivable, percentage by customer | ' | 42.00% |
Bioprocessing Customer A | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Accounts receivable, percentage by customer | 58.00% | 17.00% |
Bioprocessing Customer B | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Accounts receivable, percentage by customer | 22.00% | 8.00% |
Tenant improvement allowance due from landlord | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Accounts receivable, percentage by customer | ' | 15.00% |